“Money, when considered as the fruit of many years’ industry, as the reward of labor, sweat and toil, as the widow’s dowry and children’s portion, and as the means of procuring the necessaries and alleviating the afflictions of life, and making old age a scene of rest, has something in it sacred that is not to be sported with, or trusted to the airy bubble of paper currency.” – Thomas Paine
I’ve been a bit busy of late, and have posted less than usual. Still, the wretchedness of the system calls for rebuke, so we are at it again tonight.
Everybody remembers the $787 billion bailout for fat-cat bankers called TARP. It was money taken straight from the taxpayers and given straight to the bankers for no other reason than the bankers threatened the world with “frozen credit markets” if it didn’t happen. So, we gave them $787 billion. How much is that? A lot. Let’s make it more real though. That amounts to somewhere near $2500 for every man, woman, and child in the country. Or, if you wish, take your total annual salary from last year (with benefits) – which is a modest estimate of your contribution to the GDP – and multiply by 5%. That’s what you gave to wall street bankers in TARP so credit markets wouldn’t freeze.
You will be shocked, SHOCKED, to learn that it didn’t end there. Bloomberg reported last week that on top of the TARP program, the Federal Reserve also loaned $7.77 trillion to major banking institutions at just above zero percent. And by “just above” I mean 0.01%.
OK, so you gave 5% of your salary to the bankers, and then you loaned them (at zero interest) another 50% of your salary. Why? So they would agree to loan the money back to you at a higher rate! They loaned some of it to the federal government at 3%. They also were able to keep credit markets going and loaned some of your money directly back to you – of course at a higher rate than your generous terms to them.
(By the way, Jon Stewart has a fantastic video on the subject here: “America’s Next TARP Model“.)
OK, so what’s going on here? Well, the obvious answer is a rancid wickedness that comes from the evil deep within the souls of men. The fiat currency system is the means by which the wealthy oppress the poor. It is the “changing weight and standard” that they use to pilfer the “least of these”. Never fear – their day is coming: “The wicked plots against the righteous and gnashes his teeth at him, but the Lord laughs at the wicked, for he sees that his day is coming” (Psalm 37:12-13)
So why isn’t there more hullabaloo about this? Why isn’t their more shock and rage? Well, I suppose it’s really not that big of a deal from the expectation standpoint. It’s not like this $7.77 trillion in “printed” money will actually cause inflation. The inflation already happened with fractional reserve lending. The value of your money, your stored productivity, the savings that you wish to use to provide for your family has already been destroyed gradually over the years. When the fractional reserve trade start to unwind and collapse, the Fed is left with no other alternative (given that they work for the bankers) than to print and monetize the debt … at least as much as needed.
And what is our response? Well, I suppose we should at the very least oppose the system. See if you can find a politician out there who is opposed to this secret banking cabal and the fiat currency system. Of course there is really only one in the presidential campaign who has been consistent on the issue – Ron Paul. But, there are others out there to be sure. Heck, even Newt Gingrich, who is not shy about government solutions to society’s problems, has made statements about auditing the Fed. (An idea he surely got from Ron Paul, but the more people who talk about it the better.)