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For over a week, Americans have watched a perilous game being played by the economic powers behind Wall Street and the revolted taxpayers behind the U.S. Congress.
Frankly, I believe the average American has needed a drama coach more than a financial expert to understand what is really going on.
A little history gives us the best guide to understand what all of this drama is about. Federal Reserve Chairman Ben Bernanke admitted at a banquet on Nov. 8, 2002, that the Federal Reserve caused the Great Depression that began Oct. 24, 1929, and continued all through the decade of the 1930s.
The Fed did this by deliberately tightening up and withholding the money supply for lending, which immediately caused a domino effect. Highly leveraged investors, who were in the stock market on borrowed money, were instantly wiped out when their loans were called in. Banks that had loans out at over 10 times the amount of reserves had to close the doors. The depositors panicked and made a run on the banks to withdraw their assets, only to find there was none left. Businesses, farms, homes and savings were lost on a grand scale.
The Federal Reserve could have printed more money. This was supposed to be their job. They could have immediately alleviated the situation by loosening the available money to back the loans and banks. After all, they sold themselves to the U.S. Congress, when they were unconstitutionally created in 1913, with the argument that as a privately owned, for profit, central bank, they would keep such things as the 1929 Depression from happening.
But that would have defeated their strategy. So industries and businesses collapsed. Many banks went bankrupt. Most Wall Street investors were ruined. Stocks became almost worthless. The average American found himself with no money, no job and no home. Families were split up and displaced. Large families had to put up children for adoption or place them in orphan homes.
And guess who made billions of dollars while Americans went into a horrible depression? The powerful international banking families who own the central bank we know as the Federal Reserve System. They bought up, usually through surrogates, failed banks for pennies on the dollar, centralizing and consolidating their control over more of the U.S. banking system. They did the same thing with many of the best industries and assets of the country.
Now I believe we are seeing the 21st century model of the same thing, only with a little different strategy.
The drama began to publicly unfold when the chiefs of the U.S. Treasury and the Federal Reserve, Henry Paulson and Ben Bernanke, went to the president and the U.S. Congress and laid out an “apocalyptic scenario” of utter economic disaster for the country. They presented what they said was the only way to avert a national and international economic meltdown.
Paulson asked for a $700 billion bailout package immediately, with no strings attached. Such “strings” as no oversight, no accountability and no authorization required as to whom and how the money would be spent. And he gave a deadline of less than a week for this “ransom” to be paid, or it would be too late to avert utter disaster. Now I call that “blackmail” on a heretofore-unprecedented scale.
This caused me to look up the connections of this duo that were asking such a colossal thing with a straight face.
Just before Paulson became the secretary of treasury, he was the chairman and CEO of Goldman Sachs. These are believed be two of the banking families who are part of the original owners of the Federal Reserve. Though just who the private owners of the Federal Reserve are is a closely guarded secret, it has been widely accepted that Goldman, Sachs, along with such names as Rothschild, Warburg Lehman, Kuhn, Loeb and Seif are private owners. For a normal American, there would be an immediate assumption of “conflict of interest,” wouldn’t you say?
The moment a man accepts the chairmanship of the Federal Reserve, he becomes responsible to carry out the will and interests of the non-elected, mostly foreign owners of the Fed, not the U.S. government. So Benjamin Bernanke is in that role at this moment, and as such, has a conflict of interest in this bailout, too.
So with these two men asking for what in effect is illegal for the U.S. government to do, i.e., to bailout private banking and loan institutions from debts they incurred as a result of reckless and irresponsible loans, should be suspicious in the very extreme.
Wall Street is playing a supporting role in this drama by causing the market to rise or fall based on just how close or not so close the U.S. Congress is to passing the “ransom bailout.”
So, they are playing a skillful game of “chicken.” I used to play that game with cars as a teenager. You would put up your pink slip with an opponent. Then the two of you would race head-on toward each other. The first one to swerve aside lost. We are in a similar game of “chicken” – only the stakes are much higher. I wonder if the American taxpayer will ever say, “Enough is enough! Throw the bums out.”