|
|
Obama, Bernanke, and Wall Street’s `Big Six’ Perpetrate the Crime of the Century
16 December 2013
(LPAC)—The crushed United States labor force and economy enters another week of "taper mania," as the dark shadow of what the Federal Reserve might try to do next — another abortive attempt at "exit" from hyperinflation — falls over the media and the markets. Over the past five years, the Federal Reserve and the "Big Six" Wall Street banks, in collusion with the Obama White House, its economic advisors, and particularly its Treasury Secretaries, have committed a crime against the U.S. Constitution and its history of successful banking and credit. The Obama Administration’s and the banks’ crimes of killer austerity against the American population, result from the Fed’s fundamental crime of creating a $4 trillion "fake money" machine which has starved the U.S. economy of all credit since Obama took office. Since Obama took office, through the so-called "quantitative easing" policy, the Fed has pumped almost $4 trillion of new "money" into the dozen biggest banks on Wall Street. This, not any other factor, has made those "too-big-to-fail" banks 40% bigger now, than they were at the time of the 2007-2008 crash. Since September of 2008, ALL of the $2.2 trillion increase in deposits in the biggest Wall Street banks has come from the Federal Reserve. This is shown in the Federal Reserve’s own data on "excess bank reserves," and it is admitted by all the biggest banks themselves. This has been done completely in isolation from anything having to do with the real economy. ALL of the Federal Reserve’s quantitative easing "money" has gone to these big banks on Wall Street, and others equally big in Europe. None of it has gone into great projects, none of it has gone into new infrastructure platforms, none into investments in manufacturing and farming, nothing for anything that actually produces. And NONE of this mass money-printing for the biggest banks, has been loaned by them. The six biggest U.S.-based banks’ lending has collapsed by $700 billion even while their so-called "excess reserves" have increased by over $2 trillion — and their lending is still falling quarter by quarterly report. So, while these six banks now have 65% of all the deposits of the banking system of the United States, thanks to the Fed, they have not lent: Rather they have speculated, in financial derivatives, securities, swaps, and repo loans to other banks and financial companies and funds — JPMorgan itself has a trillion and a half dollars in such speculations; they dwarf the bank’s total lending to businesses and households. Are these now banks at all? Or gigantic high-risk pools, being hyperinflated by the printing of trillions of dollars in what is essentially "fake money" by the Fed? This is a monstrous crime against the American, Hamiltonian System of credit and banking, which George Washington praised with such astonishment in his 1791 letter; which was restored in virtually identical form in Abraham Lincoln’s "Greenback" and bank reorganization policies; which was approximated by FDR’s national credit policies and his "Section 13b" amendment to the Federal Reserve Act, which specifically allowed the Fed to do real commercial lending, which Bernanke has refused and crushed for five terrible years with his "funny money." [pbg] |