Professor Chossudovsky on the Banksters Bailout: The United States is Being Taken Over by the Banks!
- Professor Chossudovsky is correct. The Illuminati shadow banksters ruling elite control America. This is about consolidation of power and escalation of their control to an even higher order–> Global Police Fascist State.
Michel Chossudovsky, Director of the Centre for Research on Globalization CRG), sits down with The Corbett Report to discuss the real meaning of the “bank bailouts”
“The stated objective of the bank bailout programs is to alleviate the banks’ burden of bad debts and non-performing loans. In actuality what is happening is that these massive amounts of money are being used by a handful of institutions to consolidate their position in global banking.
The exposure of the banks, largely the result of derivative trade, is estimated in the tens of trillions of dollars, to the extent that the amounts and guarantees granted by the Treasury and the Fed will not resolve the crisis. Nor are they intended to resolve the crisis.
The mainstream media suggests that the banks are being nationalized as a result of TARP, In fact, it is exactly the opposite: the State is being taken over by the banks, the State is being privatized. The establishment of a Worldwide unipolar financial system is part of the broader project of the Wall Street financial elites to establish the contours of a world government.
In a bitter irony, the recipients of the bailout under TARP and Obama’s proposed $750 billion aid to financial institutions are the creditors of the federal government. The Wall Street banks are the brokers and underwriters of the US public debt, although they hold only a portion of the debt, they transact and trade in US dollar denominated public debt instruments Worldwide.
They act as creditors of the US State. They evaluate the creditworthiness of the US government, they rank the public debt through Moody’s and Standard and Poor. They control the US Treasury, the Federal Reserve Board and the US Congress. They oversee and dictate fiscal and monetary policy, ensuring that the State acts in their interest.
Since the Reagan era, Wall Street dominates most areas of economic and social policy. It sets the budgetary agenda, ensuring the curtailment of social expenditures. Wall Street preaches balanced budgets but the practice has been lobbying for the elimination of corporate taxes, the granting of handouts to corporations, tax write-offs in mergers and acquisitions etc, all of which lead to a spiralling public debt.
The Federal Reserve System: Circular and Contradictory Relationship
The Federal Reserve system is a privately owned central bank. While the Federal Reserve Board is a government body, the process of money creation is controlled by the 12 Federal Reserve Banks, which are privately owned.
The shareholders of the Federal Reserve banks (with the New York Federal Reserve Bank playing a dominant role) are among America’s most powerful financial institutions. While the Federal Reserve can create money “out of thin air”, the multibillion outlays of the Treasury (including the Bush and Obama bank bailouts) will require the emission of public debt in the form of Treasury Bills and government bonds. Part of these T-Bills will of course also be held by the Fed.
US financial institutions oversee the US public debt. They are involved in the sale of treasury bills and government bonds on financial markets in the US and around the World. But they also hold part of the public debt. In this regard, they are the creditors of the US government. Part of this increased public debt required to rescue the banks will be financed or brokered by the same financial institutions which are the object of the bank rescue plan.
We are dealing with a pernicious circular relationship. When the banks pressured the Treasury to assist them in the form of a major bank rescue operation, it was understood from the outset that the banks would in turn assist the Treasury in financing the handouts of which they are the recipients.
To finance the bank bailout, the Treasury needs to run a massive budget deficit, which in turn requires a staggering increase of the US public debt. Public opinion has been misled. The US government is in a sense financing its own indebtedness: the money granted to the banks is in part financed by borrowing from the banks.
The banks lend money to the government and with the money they lend to the government, the Treasury finances the bailout. In turn, the banks impose conditionalities on the management of the US public debt. They dictate how the money should be spent. They impose “fiscal responsibility”; they dictate massive cuts in social expenditures which result in the collapse and/or privatization of public services. They impose the privatization of urban infrastructure, roads, sewer and water systems, public recreational areas, everything is up for privatization.
The recipient banks are the beneficiaries as well as the creditors. As creditors, they will oblige the government a) to slash expenditures b) to run up the public debt through the issuing of treasury bills and government bonds.
This public debt crisis is all the more serious because the US federal government does not control monetary policy. All public debt operations go through the Federal reserve, which is in charge of monetary policy, acting on behalf of private financial interests. The government as such has no authority over money creation. This means that public debt operations essentially serve the interests of the banks.” Michel Chossudovsky, Global Research, Montreal, September 17, 2009
- Global Europe Anticipation Bulletin (GEAB) talks about the green shoots and the reality on the ground.
Before this summer, LEAP/E2020′s team announced that there would be no recovery in sight in September 2009, and not until summer 2010 in any event. Well indeed, contrary to the claims of the media, and financial and political circles, we confirm our anticipation.
The slowdown in the speed of collapse of the global economy, at the origin of all the « good news » (1), is only due to the world’s enormous public financial effort of the last twelve months (2). But the « time saved » using taxpayers’ money around the world should have been dedicated to redesigning the international monetary system at the heart of the current systemic crisis (3). Yet, besides a few cosmetic considerations (4) and huge gifts to US and European banks, nothing serious has been undertaken, and, when it comes to the future, the « every man for himself » rule prevails (5).
Now, as summer 2009 comes to a close, and as the three rogue waves start impacting the global economy hard (unemployment (6), bankruptcies (7) and monetary shocks (8)), the time to mend the system, or to prepare for a soft transition towards a new global system, is over (9). The first signs of a major decoupling (10) are beginning to appear: the rest of the world is rapidly moving away from the Dollar zone. As shown by the chart below, there is a 95 percent chance that 1,000 billion new USDs will be printed in a very near future… not very attractive for the Dollar zone.
Inconsistent statistics reflect a chaotic world economy
We are heading straight to the phase of geopolitical dislocation expected to begin in the fourth quarter of 2009 (11). In this issue of the GEAB, our team analyses the trends at work (real estate market, srategic issues…) within the current chaos resulting from a flood of unchecked public expenditure and a persistently uncontrolled financial system in a context of growingly inconsistent statistics. Paradoxically, dislocation has become, according to our researchers, the only way to economic recovery (a recovery that will take place around a global architecture and interaction between economic, social and financial spheres profoundly different from anything we knew in past decades. Our team believes that the first features of the “post-crisis world” should begin to appear by summer 2010 and, in the coming months, they will dedicate themselves to their identification.
Meanwhile, as anticipated in the previous editions of the GEAB, no one can now construct a true picture of today’s global economic situation as macroeconomic figures are more and more contradictory or simply absurd (12). Measurement data and instruments have been so manipulated (13) and limited to a volatile US Dollar as sole benchmark (14), that no government, international organisation or bank (15) can now tell in which direction the global system is heading. The media reflect this chaos and contribute to their readers’/auditors’/viewers’ bewilderment: depending on the day, or even the hour, that they give contradictory news on finance, economy or currency. Policy makers, entrepreneurs, employees,… economists or analysts… are reduced to Pascal’s wager (16) to assess what will happen in future months.
According to LEAP/E2020, the chart above tells about facts that cannot be ignored: the global economic, financial and monetary system is drifting at an increasing rate, its weakness is reaching unequalled lows in modern history, and the slightest shock (financial, geopolitical or even natural) can now break it apart (17). The States’ breathtaking plunge into bottomless public debt (18) (governments feel that, without the support of public money, world economies would soon resume their collapse) is creating a literally explosive situation, conveying massive tax increase in Japan, Europe, the US… If there is any recovery in sight, it is that of tax. As a matter of fact, confronted to historic unemployment rates and a free-falling economy, Japanese voters decided to dismiss their decade-old leaders: they have probably inaugurated the great political upheaval of the next phase of the crisis (19). This summer, the Obama administration was also surprised to discover the importance of the popular anger which focused on his health system reform programme (though a much needed one).
Here is a very illustrative analogy of the crisis today that imposed itself on our researchers: a rubber ball in a staircase. It seems to rebound on every step (then giving the impression that the fall has stopped) but it falls even lower on the next step, “resuming” its collapse.But the US are not alone in this regard. Asia and Europe are also confronted with a drastic unemployment surge that statistical manipulation (22) cannot hide beyond this summer: jobless no longer entitled to unemployment benefits, youngsters placed in waiting internships or jobless recruited for short-term public construction projects, lay-offs postponed by means of short-time allowance measures, plants artificially maintained in activity thanks to public funds,… from Beijing to Paris, in Washington, Berlin, London or Tokyo, every trick is being used to hide the situation as long as possible… until the recovery arrives. Unfortunately, the recovery will not arrive in time. It’s Blücher instead of Grouchy (23). Instead of a recovery in September, the world is suffering the impact of this summer’s three rogue waves:
. massive unemployment, for people soon to be excluded from further benefits in particular, and its disastrous consequences for nations’ political and social stability, are beginning to appear
. the number of bankruptcies (companies, municipalities,…) and deficits of all sorts, are exploding
. and, of course, the impact of all this on the US Dollar, Treasuries (and the UK, suffering collateral damage) .
The first wave already reached the shore at the end of summer 2009. The second one is coming up. And the third is beginning to appear on the horizon.
In any event, if the Eurozone and Asia are in a better situation to face up to the impact of these waves (as already analyzed in GEAB N°28 of last October), their situation is not so good that they can expect a recovery yet. It is however on the US, the Dollar and US Treasuries on the one hand, and on the UK and the Pound on the other , that the consequences of the three waves will be harder. Mid-summer night dreams also have an end!
But for those who still have enough money to travel, the holidays can go on as hotels, airline companies, holiday resorts… are giving discounts at prices never seen before. Another sign that the recovery is here!
“Disoriented” economic players and policy-makers
Of course, all this doesn’t create a favourable investment climate for business. Production capacity is under-used everywhere in historic proportions. Stocks are only renewed at a drip-feed rate (eliminating any hope of a recovery based on their replacement). Consumers have become realistic economically: no money, no purchase. Their salaries fall when they haven’t simply been lost through job losses, the banks don’t lend any more because they know that they themselves are still insolvent (despite the “golden” powder thrown in the eyes of public opinion these last months) (21). The state itself, on its own, cannot substitute itself for the frenetic consumerism of the past. In the US, a return to the previous state would require about USD 2,500 billion pumped into the economy each year. Barak Obama’s stimulus package, less than USD 400 billion a year over two years is far from the amount needed if he has to replace the non-spending of households and businesses. The problem is that this is exactly the present situation of the US economy.
- No matter how much they want to attack Iran. The war mongers cannot hide from the truth. They can play their lying propaganda games via the MSM but the truth will always come out. There are still people out there who believe the truth and will tell it even at great risks to their lives. There are patriots who believe America should not be manipulated by these Illuminati Intelligence cabal into unnecessary wars.
- Which country has nuclear weapons? Which country has been continuously ar war? The answer is both America and Israel. Which country has used nuclear weapons? Illegal weapons ?
Depleted Uranium Radioactive Contamination In Iraq: An Overview
US to use depleted uranium
Video: Depleted Uranium – Iraq’s nuclear Nightmare
Depleted uranium found in Gaza victims
Israel Using Depleted Uranium Against Gaza Victims
Bunker buster bombs containing depleted uranium warheads used by Israel against civilian targets in Lebanon
- Newsweek reports :
Secret updates to White House challenge European and Israeli assessments.
The U.S. intelligence community is reporting to the White House that Iran has not restarted its nuclear-weapons development program, two counter proliferation officials tell NEWSWEEK. U.S. agencies had previously said that Tehran halted the program in 2003.
The officials, who asked for anonymity when discussing sensitive information, said that U.S. intelligence agencies have informed policymakers at the White House and other agencies that the status of Iranian work on development and production of a nuclear bomb has not changed since the formal National Intelligence Estimate (NIE) on Iran’s “Nuclear Intentions and Capabilities” in November 2007. Public portions of that report stated that U.S. intelligence agencies had “high confidence” that, as of early 2003, Iranian military units were pursuing development of a nuclear bomb, but that in the fall of that year Iran “halted its nuclear weapons program.” The document said that while U.S. agencies believed the Iranian government “at a minimum is keeping open the option to develop nuclear weapons,” U.S. intelligence as of mid-2007 still had “moderate confidence” that it had not restarted weapons-development efforts.
One of the two officials said that the Obama administration has now worked out a system in which intelligence agencies provide top policymakers, including the president, with regular updates on intelligence judgments like the conclusions in the 2007 Iran NIE. According to the two officials, the latest update to policymakers has been that as of now—two years after the period covered by the 2007 NIE—U.S. intelligence agencies still believe Iran has not resumed nuclear-weapons development work. “That’s the conclusion, but it’s one that—like every other—is constantly checked and reassessed, both to take account of new information and to test old assumptions,” one of the officials told NEWSWEEK. It is not clear whether U.S. agencies’ confidence in this judgment has grown at all since the 2007 statement.
This latest U.S. intelligence-community assessment is potentially controversial for several reasons, not the least of which is that it is at odds with more alarming assessments propounded by key U.S. allies, most notably Israel. Officials of Israel’s conservative-led government have been delivering increasingly dire assessments of Iran’s nuclear progress and have leaked shrill threats about a possible Israeli military attack on Iranian nuclear facilities.
- Revelation 2:9
…I know the blasphemy of those who say they are Jews and are not, but are a synagogue of Satan.
- Revelation 3:9
9 Indeed I will make those of the synagogue of Satan, who say they are Jews and are not, but lie—indeed I will make them come and worship before your feet, and to know that I have loved you.