Bust Up The Banks/Reform The Fed

The Bank of America, Citigroup, JP Morgan Chase and Wells Fargo are the four banks named and popularly held responsible for the great American recession. By joining banks and the Federal Reserve we have a more complete and complex scenario.

An article written by Michael Snyder on February 9, 2012 entitled '10 Things That Every American Should Know About The Federal Reserve' should be required reading for every voting American. Several eye-popping details stood out for me.

  • “Federal Reserve is a private banking cartel.”
  • “The Federal Reserve is not a government agency.”
  • “Foreign governments and foreign banks do own significant ownership interests in the member banks that own the Federal Reserve System.”
  • “The way our system works, whenever more money is created more debt is created as well.”
  • “Instead of issuing money directly, the U.S. government lets the Federal Reserve create it out of thin air and then the U.S. government borrows it.” And the Federal Reserve sells the U.S. Treasury bonds to others.
  • In addition to the Congress approved bailout of 2008, with little interest “… a total of $16.1 trillion in secret loans were made by the Federal Reserve between December 1, 2007 and July 21, 2010” to big Wall Street and Foreign banks.
  • “They lend that money to us or back to the government at higher rates and rake in the difference by the billion.”
  • “The Federal Reserve runs the U.S. economy but it is not accountable to the American people.”

This article corrected my thinking that it was the government that made the quarters and dollar bills. When trillions of dollars became a commonly talked about amount, I was bothered by the physical impossibility the government could print this much money. There was no way to visibly see the cash and none of it was circulating around the country. Where was it? And, if the government didn't print it, did it actually exist?

Debtors, such as the government, launder an enormous amount of dollars for the Fed cartel. Once legalized, the banking industry is enabled to run their benefit/risk programs in the global marketplace with little contradiction. It sounds like debt makes the world go 'round, not money.

While true, the philosophy that 'whoever has the gold, makes the rules' needs some changes. More players are needed to spread investment risk. Populations are needed to spread benefits. Raising the Dow beyond its extraordinary rise since 2008 will continue to be a comfort spot only for the players. It is a flawed indicator of economic recovery because devalued peoples do not spend what they do not have.

A government working on behalf of voters should recognize that retaining the concept of a too-big-to-fail banking industry will succeed in bankrupting the country.

I vote for busting up big Banks. Take a second step and re-regulate them. And, because it is incomprehensible that trillions can be managed by few, set capital limits. And the job will not be done before the Fed is restructured.

 

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