Monday, September 29, 2008
Economic Black Mail by the FED...
Market Ticker has provided charts from the Federal Reserve that prove that the FED Chairman Bernanke has withdrawn $125 billion from the US banking system “in the last four days” to deliberately create a manufactured crisis situation that will incite credit market mayhem and FEAR forcing the US Congress to pass the Bailout bill.
This is BLACKMAIL most Foul!
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 bold faced economic 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 FAX 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.”
This has happened before in US history and now it is happening again. All because Congress has surrendered it's Constitutional Authority and Power to FOREIGN Powers via the Central Bank known as the FED.