Finance, Fuel Prices, Economics, Markets

Gangster Banks Refuse to be Regulated

There is not only no hope that our economy will recover unless that criminal mafia know as banks are reigned in with a bull whip, but even no hope that it will not continue to sink into severe regression and depression.

Congress has proposed some very weak new regulations for banks, but as soon as the gangsters heard about it they sent out howls of protest, saying no way, forget about it. And congress did. They bowed to the mafia bosses because the dons of Wall Street simply threaten to cut off the money those rats called congressmen need to gain re-election. Ergo, whatever Wall Street wants, Wall Street gets.

The economy cannot recover because innumerable bankrupt enterprises are being kept afloat with borrowed money. The massive amounts of debt we have accumulated quite simply drains the economy of necessary capital to keep it prospering. With the USG pulling $2 trillion of capital out of the economy every year, and hundreds of billions being paid out to foreign entities to service that debt, the economy is denuded of necessary capital. We have now reached the point that instead of productive enterprise, the number one money-making enterprise in this nation is speculating in financial markets. The insolvent zombie banks are surviving by borrowing from the Fed at zero percent interest and plunking it down into every speculative gamble imaginable. For example, it is reported that 20% of Goldman Sachs revenue last quarter was from speculating in US Treasury bonds alone.

The ten largest “banks” account for 40% of all stock market trades. They don’t do much lending anymore since there are few credit worthy entities left that wish to borrow, so despite the lowest interest rates in history, credit continues to collapse. Greenshoots? I won’t even bother to dignify that horse hockey. The consumer is finally starting to roll over and play dead as the banks have slashed consumer credit and hiked interest rates to levels that would make Joe Gambino blush. It will certainly stimulate the economy to gouge credit card accounts with 30% rates. Banks can rent money for 0.025% and charge 30% and above, a spread of 29.975 or better. Positively stimulating.

So with real unemployment approaching 20% and rising by a half million or better per month (and those are only the one’s they deign to count), with consumer credit being slashed, with wages and salaries on the decline, with the US dollar collapsing, which causes the price of all imports to rise, what are we then to say about the 70% consumer economy, that it is recovering? Sure, and you might as well claim that gold coins are falling from the sky.

The only way the US economy would be able to recover would be to seize the top ten banks and liquidate them, since they are technically insolvent anyway. All those trillions in worthless mortgages need to be purged from the system. Pretending that they don’t exist is what Japan did and put them into a 20 year depression that is now getting worse. The US is following that path precisely, yet the results will not be the same, the results will be far worse because the yen is not the world currency. And when the US dollar is repudiated, even Walmart will look like a luxury retailer. If, that is, there is still a Walmart left to sell Chinese goods no American could afford to buy.

The gangster bankers hold this nation in their iron grip and are milking it dry, just as Thomas Jefferson and Andrew Jackson said they would if control of money were turned over to them. It was as predictable as the sun rising.


October 17, 2009 - Posted by | Economics | , , , , , , , , , , ,

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