The Economic Collapse
May 4, 2010
When the mainstream media told the American people that the Federal Reserve was going to “help” the housing industry by buying up hundreds of billions of dollars worth of toxic mortgage backed securities, very few people probably even stopped to wonder where all of that money was going to come from. Well, the truth is that it did not come from anywhere. It was made up out of thin air. In fact, a total of 1.3 trillion dollars was just “printed into existence” so that the Fed could soak up these problematic securities (and help their buddies down on Wall Street in the process who were desperate to dump them). During a recent Joint Economic Committee hearing on Capital Hill, U.S. Representative Ron Paul directly confronted Federal Reserve Chairman Ben Bernanke about this 1.3 trillion dollars. As Ron Paul described how this 1.3 trillion was just created out of thin air, all Bernanke could do was nod his head. Why? Because it was the truth.
Of course we all know that the Federal Reserve creates money out of thin air all the time, so that is not new, but what is new is the recklessness and openness with which they are going about doing it.
Need to help your buddies down on Wall Street by buying up a tsunami of bad mortgage securities?
Just zap another trillion dollars into existence!
Need to bail out the mortgage giants Fannie Mae and Freddie Mac?
Just get the magic money printing machine ready!
Wouldn’t it be nice if the rest of us could create money out of thin air? It would make life so much easier.
A video clip of the exchange between Ron Paul and Bernanke at this hearing is posted below.
The key moment comes when Ron Paul makes this statement….
“Well, where did you get the money? You created this money. So you did monetize debt, and that went into the banking system.”
As you watch this video, you will notice that at that moment Bernanke nods his head up and down repeatedly….
So who does all of this money printing benefit?
Well, it benefits the Federal Reserve and the big financial institutions on Wall Street that have financial ties to the Federal Reserve.
It certainly does not benefit the rest of us.
No, in fact Bernanke says that the rest of us need to get ready to pay higher taxes and have a lower standard of living in order to pay for the big financial mess that our politicians and the Fed have gotten us into.
So while there are lots of smiles going around in Washington D.C. and on Wall Street these days, the same cannot be said for the rest of the good ole U.S.A. as the following video illustrates….
The reality is that the United States is a nation that does not even have control over its own currency. If the United States government wants more money, it has to go ask the Federal Reserve to create it. Unfortunately, the Federal Reserve does not also create the interest that will ultimately be paid on that new money that is being created. So where will the money come from to pay the interest? Well, by creating even more money (debt) in the future. It sounds like insanity, but that is the U.S. financial system. It is a perpetual debt machine that was created to have an ever expanding national debt that is mathematically impossible to pay off.
Just because the folks down on Wall Street do not dress up in gang colors or try to sell drugs to our children does not mean that they are not corrupt or that they are not criminals. In fact, the truth is that the corruption in our financial system is hitting unprecedented levels.
But most Americans have no idea what in the world is going on in the financial system. All most of them know is that things are getting bad and they want somebody to “fix” the problems.
Unfortunately, the folks that the American people are expecting to “fix” things are the very same ones who got us into this mess in the first place.
“Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States.”
-Senator Barry Goldwater
“A great industrial nation is controlled by it’s system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world–no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men.”
-President Woodrow Wilson
“The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government of the U.S. since the days of Andrew Jackson.”
-Franklin Delano Roosevelt
“The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe.”
“Give me control of a nation’s money and I care not who makes it’s laws”
-Mayer Amschel Bauer Rothschild
This article was posted: Tuesday, May 4, 2010 at 3:39 am