The Banker's Coup D'état of America?

By Mike Whitney

27/09/08 “ICH” — – The financial system is blowing up. Don’t listen to the experts; just look at the numbers. Last week, according to Reuters, “U.S. banks borrowed a record amount from the Federal Reserve nearly $188 billion a day on average, showing the central bank went to extremes to keep the banking system afloat amid the biggest financial crisis since the Great Depression.” The Fed opened the various “auction facilities” to create the appearance that insolvent banks were thriving businesses, but they are not. They’re dead; their liabilities exceed their assets. Now the Fed is desperate because the hundreds of billions of dollars of mortgage-backed securities (MBS) in the banks vaults have bankrupt the entire system and the Fed’s balance sheet is ballooning by the day. The market for MBS will not bounce back in the foreseeable future and the banks are unable to roll-over their short term debt. Game over. The Federal Reserve itself is in danger. So, it’s on to Plan B; which is to dump all the toxic sludge on the taxpayer before he realizes that the whole system is cratering and his life is about to change forever. It’s called the Paulson Plan, a $700 billion boondoggle which has already been disparaged by every economist of merit in the country.

From Reuters:

“Borrowings by primary dealers via the Primary Dealer Credit Facility, and through another facility created on Sunday for Goldman Sachs, Morgan Stanley, and Merrill Lynch, and their London-based subsidiaries, totaled $105.66 billion as of Wednesday, the Fed said.”

See what I mean; they’re all broke. The Fed’s rotating loans are just a way to perpetuate the myth that the banks aren’t flat-lining already. Bernanke has tied strings to the various body parts and jerks them every so often to make it look like they’re alive. But the Wall Street model is broken and the bailout is pointless.

Last week, there was a digital run on the banks that most people never even heard about; a “real time” crash. An article in the New York Post by Michael Gray gave a blow by blow description of how events unfolded. Here’s a clip from Gray’s “Almost Armageddon”:

“The market was 500 trades away from Armageddon on Thursday…Had the Treasury and Fed not quickly stepped into the fray that morning with a quick $105 billion injection of liquidity, the Dow could have collapsed to the 8,300-level – a 22 percent decline! – while the clang of the opening bell was still echoing around the cavernous exchange floor. According to traders, who spoke on the condition of anonymity, money market funds were inundated with $500 billion in sell orders prior to the opening. The total money-market capitalization was roughly $4 trillion that morning.

The panicked selling was directly linked to the seizing up of the credit markets – including a $52 billion constriction in commercial paper – and the rumors of additional money market funds “breaking the buck,” or dropping below $1 net asset value.”

The Fed’s dramatic $105 billion liquidity injection on Thursday (pre-market) was just enough to keep key institutional accounts from following through on the sell orders and starting a stampede of cash that could have brought large tracts of the US economy to a halt.” (New York Post)

Commercial paper is the lubricant that keeps the financial markets functioning. When confidence vanishes (because the stewards of the system in Washington are buffoons), investors withdraw their money, normal business operations become impossible, and the markets collapse. End of story. So, rather than restore the public’s confidence by strong leadership and behavior designed to reassure investors; President Bush decided to give a major prime-time speech stating that if Paulson’s emergency bailout package was not passed immediately, the nation’s economy would vaporize into the ether. Go figure?

Last week, the commercial paper market, (much of which is backed by mortgage-backed securities) shrunk by a whopping $61. billion to $1.702 trillion, the lowest level since early 2006. So, Paulson’s bailout will effectively underwrite CP as well as the whole alphabet soup of mortgage-backed derivatives for which there is currently no market. The US taxpayer is not only getting into the plummeting real estate market, he is also backstopping the entire financial system including defaulting car loan securities, waning student loan securities, flailing home equity loan securities and faltering credit card securities. The whole mountainous pile of horsecrap-debt is about to be stacked on the back of the maxed-out taxpayer and the ever-shriveling greenback. Paulson assures us that its a “good deal”. Booyah, Hank!

PAULSON’S $700 BILLION BOONDOGGLE

How did Treasury Secretary Paulson figure out that recapitalizing the banking system would cost $700 billion? Or did he just estimate the amount of money that could be loaded on the back of the Treasury’s flatbed truck when it sputters off to shower his buddies at G-Sax with freshly minted greenbacks? The point is, that Paulson’s calculations were not assisted by any economists at all, and they cannot be trusted. It is a purely arbitrary, “back of the envelope” type figuring. According to Bloomberg: Swiss investor Marc Faber, known for a long track record of good calls, believes the damage may come to $5 trillion:

“Marc Faber, managing director of Marc Faber Ltd. in Hong Kong, said the U.S. government’s rescue package for the financial system may require as much as $5 trillion, seven times the amount Treasury Secretary Henry Paulson has requested….

“The $700 billion is really nothing,” Faber said in a television interview. “The treasury is just giving out this figure when the end figure may be $5 trillion.”(Bloomberg News)

Most people who follow these matters would trust Faber’s assessment way over Paulson’s. In his latest blog entry, economist Nouriel Roubini said that “no professional economist was consulted by Congress or invited to present his/her views at the Congressional hearings on the Treasury rescue plan.” Roubini added:

“The Treasury plan is a disgrace: a bailout of reckless bankers, lenders and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the US taxpayer. And the plan does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown.”

Roubini is right on all counts. So far, more than a 190 prominent economists have urged Congress not to pass the $700 bailout bill. There is growing consensus that the so-called “rescue package” does not address the central economic issues and has the potential to make a bad situation even worse.

BANKER’S COUP?

Financial industry rep. Paulson is the ringleader in a banker’s coup the results of which will decide America’s economic and political future for years to come. The coup leaders have drained tens of billions of dollars of liquidity from the already-strained banking system to trigger a freeze in interbank lending and hasten a stock market crash. This, they believe, will force Congress to pass Paulson’s $770 billion bailout package without further congressional resistance. It’s blackmail.

As yet, no one knows whether the coup-backers will succeed and further consolidate their political power via a massive economic shock to the system, but their plan continues to move jauntily forward while the economy follows its inexorable slide to disaster.

The bailout has galvanized grassroots movements which have flooded congressional FAXs and phone lines. Callers are overwhelmingly opposed to any bailout for banks that are buckling under their own toxic mortgage-backed assets. One analyst said that the calls to Congress are 50 percent “No” and 50 percent “Hell, No”. There is virtually no popular support for the bill.

From Bloomberg News: “Erik Brynjolfsson, of the Massachusetts Institute of Technology’s Sloan School, said his main objection “is the breathtaking amount of unchecked discretion it gives to the Secretary of the Treasury. It is unprecedented in a modern democracy.”

“I suspect that part of what we’re seeing in the freezing up of lending markets is strategic behavior on the part of big financial players who stand to benefit from the bailout,” said David K. Levine, an economist at Washington University in St. Louis, who studies liquidity constraints and game theory.” (Mish’s Global Economic Trend Analysis)

Brynjolfsson’s suspicions are well-founded. “Market Ticker’s” Karl Denninger confirms that the Fed has been draining the banking system of liquidity in order to blackmail Congress into passing the new legislation. Here’s Denninger:

“The Effective Fed Funds rate has been trading 50 basis points or more below the 2% target for five straight days now, and for the last two days, it has traded 75 basis points under. The IRX is demanding an immediate rate cut. The Slosh has been intentionally drained by over $125 billion in the last week and lowering the water in the swamp exposed one dead body – Washington Mutual – which was immediately raided on a no-notice basis by JP Morgan. Not even WaMu’s CEO knew about the raid until it was done….The Fed claims to be an “independent central bank.” They are nothing of the kind; they are now acting as an arsonist. The Fed and Treasury have claimed this is a “liquidity crisis”; it is not. It is an insolvency crisis that The Fed, Treasury and the other regulatory organs of our government have intentionally allowed to occur.”

Bingo. This is a banker’s coup cooked up and facilitated by the deep-money guys who operate stealthily behind the political sideshow. The only time they emerge from their stinkholes is when they’re flushed out by a crisis that threatens their continued dominance. Grassroots resistance, spearheaded by Internet bloggers (like Mish, Roubini and Denninger) are demonstrating that they can mobilize tens of thousands of “peasants with pitchforks” and be a factor in political decision making. It also helps to have elected officials, like Senator Richard Shelby, who stand firm on principle and don’t faint at the first whiff of grapeshot (like his weak-kneed Democratic counterparts) Shelby has shouldered the full-weight of executive pressure which has descended on him like a Appalachian rockslide. As a result, there’s still a slight chance that the bill will have to be shelved and the industry reps will have to go back to Square 1.

Market Ticker has provided charts from the Federal Reserve that prove that Bernanke has withdrawn $125 billion from the banking system in the last 4 days alone to create a crisis situation that will incite credit market mayhem and increase the liklihood of passing the bill. This is coercion of the worst kind. Go here for the market screens

Read the rest of this article here

                

A comment found on a financial forum:

Over and over again, I see the public discussing both sides of a completely false dialectic process… ($700 Billion dollar bailout). Again the federal reserve is a private entity that has never been audited in its entire history, and can create this needed money from thin air. The banking system can easily be bailed out by federal reserve notes — so why did they need Congress to pass this bill?

The real answer is they DIDN’T.

But what they did need is an excuse to collapse the economy and the $700 Billion dollar bill is nothing more than a dog and pony show for everybody to get all chatty about, it changes NOTHING. But it gives the ruling elite the excuse they need. While the puppet media is howling (because they realize they are going for the ride as well) — everything is going just according to plan, and that plan is to put you into poverty. It cannot be stressed enough — the bill is only an excuse to create an crisis, and use this crisis as a guise to tighten liquidity on the banking system and seize your assets.

It is no different than a farmer who waters his crop (loosens liquidity) and watches his crop grow (economy flourishes). Then at the time of harvest he halts liquidity (stops watering to dry the wheat out for harvest). Then he comes in and cuts his crop down (asset seizure after credit tightening.) After taking everything fresh seeds are planted (a new economy is started) and it is watered (liquidity is reapplied) and the cycle repeats. Your grandparents were a good example of this in action as the real cause of the financial crash was the tightening of liquidity.

The Congress voted against the bill because if they had not — the ruling elite would not have an excuse to create a crisis. This is a long term plan being craftily played out. Remember AGAIN the federal reserve can create this money from nothing, they never needed the $700 Billion. As you kill a deer you hang in the garage for a week to drain out its blood. As you kill an economy you tighten currency for a prolonged period until all the businesses and people are on their knees. Then you come in and buy all the businesse for pennies on the dollar, and take control of everything.

It works great:

– You make America a 2nd world country and the people work for free.
– Through various subsidiary corporations you quietly buy up all the industries and control EVERYTHING.
– Through the guise of an economic recession you can start labour camps and raise taxation to crippling levels.

And while this is being done to you — people can feel relieved that they ‘fought the good fight’ and convinced their senator to vote against the bill.

What should have been on the bill is the abolishment of the Federal Reserve and the right for them to create currency. Again everybody needs to watch the documentary The Money Masters which can be seen for free at video.google.com. [BELOW]

The Money Masters. If you haven’t watched this video, do so now. Watch it in parts — just make note on where you left off, come back and advance to that section, or just hit play to continue [INCOG].

Write your Senator AND Congressman ONLY ABOUT THE ABOLISHMENT OF THE FEDERAL RESERVE AND THEIR RIGHT TO ISSUE CURRENCY. It is the only issue that matters.

Why Are People Going for Congressmen Who Voted For This Bill?

The bigger question is why are people not trying to get rid of ALL THE CORRUPT SENATORS and CONGRESSMEN, and keep people like Ron Paul who know the real cause of the problem. Email this to everybody you know – start a wake-up chain today!

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About INCOG MAN

100% White boy born and bred in the USA. Dedicated to awakening Whites to all the crap being done to our decent, fair-minded race and exposing the devious brainwashing rats behind it all. Wake the ef up, White people!
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12 Responses to The Banker's Coup D'état of America?

  1. Incipiat says:

    I just want to point out to anyone interested in obtaining more information about the Jew’s exploits that you might want to investigate http://mauricepinay.blogspot.com/.

    The author does a very good job outing the Jews and their Kabbalistic enterprises. He has a new posting that speaks to the subject matter of this post.

    It may be worth a look.

  2. Greg Bacon says:

    Please give until it hurts to the Wall Street No Banker Left Behind Act

    Some of those poor souls are forced to live on only 3.7 BILLION dollars a year.

    How can anyone scrape by on that paltry sum?

    Give America and we’ll give back to you….right up your arse.

    Wall Street Winners Get Billion-Dollar Paydays

    By JENNY ANDERSON April 16, 2008

    Hedge fund managers, those masters of a secretive, sometimes volatile financial universe, are making money on a scale that once seemed unimaginable, even in Wall Street’s rarefied realms.

    One manager, John Paulson, made $3.7 billion last year. He reaped that bounty, probably the richest in Wall Street history, by betting against certain mortgages and complex financial products that held them.

    Mr. Paulson, the founder of Paulson & Company, was not the only big winner. The hedge fund managers James H. Simons and George Soros each earned almost $3 billion last year, according to an annual ranking of top hedge fund earners by Institutional Investor’s Alpha magazine, which comes out Wednesday.

    Hedge fund managers have redefined notions of wealth in recent years. And the richest among them are redefining those notions once again.

    Their unprecedented and growing affluence underscores the gaping inequality between the millions of Americans facing stagnating wages and rising home foreclosures and an agile financial elite that seems to thrive in good times and bad. Such profits may also prompt more calls for regulation of the industry.

    The richest hedge fund managers keep getting richer — fast. To make it into the top 25 of Alpha’s list, the industry standard for hedge fund pay, a manager needed to earn at least $360 million last year, more than 18 times the amount in 2002. The median American family, by contrast, earned $60,500 last year.

    Combined, the top 50 hedge fund managers last year earned $29 billion. That figure represents the managers’ own pay and excludes the compensation of their employees. Five of the top 10, including Mr. Simons and Mr. Soros, were also at the top of the list for 2006. To compile its ranking, Alpha examined the funds’ returns and the fees that they charge investors, and then calculated the managers’ pay.

    Top hedge fund managers made money in many ways last year, from investing in overseas stock markets to betting that prices of commodities like oil, wheat and copper would rise. Some, like Mr. Paulson, profited handsomely from the turmoil in the mortgage market ripping through the economy.

    As early as 2005, Mr. Paulson began betting that complex mortgage investments known as collateralized debt obligations would decline in value, much as Wall Street traders bet that shares will drop in price. In that case, known as shorting, they borrow shares and sell them, wait for the price to fall, buy the shares back at a lower price and return them, pocketing the profit.

  3. Anonymous says:

    This site below is a bit too PC for me, but it’s nice to see info. spreading. It’s amazing how fast Jew damage control kicks in and destroys the discussion though. The ass kissing of the Jews is sickening as well …

    Jews in Wall Street – Rude Awakening For Me

    http://www.abovetopsecret.com/forum/thread271377/pg1

  4. Anonymous says:

    The Greenlining Institute: Does the financial crisis have its origins in Berkeley?

    http://www.zombietime.com/zomblog/?p=60

  5. incogman says:

    From some Asian girl named zeropointtruth:

    DISCLAIMER: This post is not anti-jewish in any sense. Just an honest attempt to explain what I never knew existed. To me, it could be deemed a secret society. i have plenty of jewish friends (includes best friend).

    This could probably apply everywhere (ie politics, technology) but I have always been blind to the power of the jewish connections in Wall Street. Never did I suspect the hidden brotherhood that exists and how powerful it could be.

    I am asian-american. I will tell you that i have learned a few things. Please tell me if I am wrong.

    1. Apparently at synagogues, jews are taught that everyone else is a gentile or pig. This explains some of the arrogance I have seen by some jews at work. It is a different arrogance (hard to explain). There are some who can be classified as “difficult” at work and what is funny is that they stick together well. I never made the connection until someone asked me what they had in common. I was flabbergasted.

    2. In conducting business, some jews look at me as if I have three heads. I work well with clients but it is abit different with some jews (ones who wear the beanies) I apologize if that is the wrong term. I cant spell the proper term. We have one nasty client (I prefer to stay away from) and i have always wondered how one jewish coworker got along with him. Wow.

    3. My friend works at a tech company and was pitching a business one time. The owner of the tech company is an Israeli. The owner of the business they were pitching asks “who is the owner?” My friend, also asian-american, tells him the name. The prospect says “Oh is he one of us? (pointing to his beanie on his head) and smiles. They got the deal.

    This is not isolated to the jews at all. I know it exists everywhere. I just learned to appreciate the power of the jews and how well they stick together and help eachother. It’s an admirable quality and it contributes to their success.

    At the same time, it saddens me that whether you are jewish makes a differences in how well you can succeed in Wall Street.

    http://www.abovetopsecret.com/forum/thread271377/pg1

    The stupid goyim can’t seem to bring themselves to think that this might extend to high places and across borders. Regular intellectual PC Jews are on hand to mock the poster, humorously mostly, but still mockingly.

    If you got any doubt — just watch the video embedded above in the article.

  6. tracy says:

    not to change the subject but a few other people that posted comments a few days ago were not lying. i think thats why they got kicked off of this forum.

    i also heard rumors that incogman was gay and he got kicked out from a group called aryan nations because he asked one of the members to have sex with him.

    i dont know why he is so against gays if he is gay

  7. incogman says:

    Oh, did someone (simone the little Jew) sneak back on here with a new name and IP?

  8. White Guy says:

    You’re going to have to come up with some new names to silence to truth, tracy.

    Racist, fascist, anti-semitic, closet homo, all of these are starting to lose their sting.

  9. KickTheJewsOutOfTheUSA says:

    Wall Street banks in $70bn staff payout
    Pay and bonus deals equivalent to 10% of US government bail-out package

    http://www.guardian.co.uk/business/2008/oct/17/executivesalaries-banking

  10. incogman says:

    All you people coming from that financial discussion at google, sparked by DON, should check out this link:

    http://www.engdahl.oilgeopolitics.net/Financial_Tsunami/Warfare_Behind_Panic/warfare_behind_panic.html

    There is serious ground to believe that US Goldman Sachs ex CEO Henry Paulson, as Treasury Secretary, is not stupid. There is also serious ground to believe that he is actually moving according to a well-thought-out long-term strategy. Events as they are now unfolding in the EU tend to confirm that. As one senior European banker put it to me in private discussion, ‘There is an all-out war going on between the United States and the EU to define the future face of European banking.’

    Read what he says about Paulson. It’ll give you a whole ‘nother perspective on the rip-off going on. And he doesn’t name the Jew! But don’t worry — it is the Jew, always has been.

    Who do you think owns the media and did whatever to get that Obama in office? Wake up and smell the coffee!

  11. don Robison says:

    shifting blame. When this whole mess started wasn’t it said everywhere that sub-prime mortgages were to blame? Wasn’t it accepted that blacks who defaulted on garbage loans were responsible? Now all over the news I hear about “corporate greed”. The blame has shifted from colored community activist groups that forced banks to hand over money, to some white collar crooks on wall street. I think you give jews too much credit, I don’t think they are the authors of the crisis, but opportunistic parasites.

  12. incogman says:

    No, go to that link above you from Engdahl and read it thru. See what he says about Paulson. Paulson is running the deal for his masters at Goldman Sachs, et al, until Obama’s new JEW team shows up to make things look “happening” to the ever gullible American public. Hell, look at Volcker’s resume. And he’s Jew too, make no mistake. So is Geithner and Summers (birth surname: Samuelson).

    My take: This is all part of an over-all scheme to roll out the Amero in 2010 to a sick-of-it public, consolidate full control of the economies of North America and Europe under their central banks — all controlled by the really rich, but hidden Jew oligarchy of New York, City of London, and Europe.

    None of these people can go around shouting Jew. They wouldn’t be where they are if they even breathed a word! But you’d never hear JACK about it if they did. That’s why America has been snowed: Race politics and the Holocaust. Neat trick.

    They are using the Fed (you) to buy up as much banking control as possible. The regular, greedy little Jews (not part of the real insiders) sense what’s going on (or hear from their cohorts) and are running amok, trying to pick off what gets torn loose, like piranhas.

    They did the exact same thing when the Soviet Union collapsed in 1989-1991. Stole as much as possible before Putin kicked them out.

    If Obama really cared about US manufactering, he’d be raising cain about the auto makers paltry request for 25 billion compared to the 300 billion to Citigroup. Paulson even over-paid the value on the first 150 billion he gave them for stocks by over 50% (about 62.5 billion on the open market at the time). What was the deal there?

    They are going to trash the Unions next year, once and for all. Trash the White middle class and America too.

    You think these son of bitches gives one good G-dam about some White or even Negro family getting kicked out of their house? Don’t make me laugh.

    IT IS THE JEW. ALWAYS HAS BEEN.

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