The systematic destruction of our financial system

When Obama came to power we were promised full transparency. I was personally promised transparency by John Larson. During a forum that John Larson held on January 29, 2009. I asked him what happened to the transparency with the TARP (as at the time $78 billion was not accounted for). He blamed the Bush administration and promised transparency going forward.

I was told that he would have his staff find out where the FED has placed $1.2 trillion dollars which they are not disclosing. That is a LOT of money. A LOT OF MONEY!!! Do you not understand this people!!! Demand transparency NOW! Efforts by Bloomberg have been denied, even though they have filed a freedom of information act request.

Where is the money? We hired our legislators to attend to these affairs. They are failing miserably. Where did the money go. Tell us NOW. Stop blaming the Bush administration. Did Bush shred all documentation? Can’t you look into the archives and see where the money went? Does $1.2 trillion dollars just disappear? Tell us where the money is NOW. I am personally fed up with the continued lies as you SYTEMATICALLY DESTROY OUR FINANCIAL SYSTEM.

I say systematically destroy our financial system because that is exactly what is happening. I am pretty sure that it is WAY too late to fix this financial system. As our leaders keep buying shares of companies and claim that you are not nationalizing these institutions you are carefully and calculatedly pushing our country into a funnel that empties into ONE, nationalized bank. A bank so large that it could never be re-privatized. The whole time you will tell us that this is the only option. Yes dear government, it is the only option because that is how you have designed this crisis.

Now go ahead and say that I need to put my tin-foil hat on. I will present the evidence that I have and you decide. I have many more examples but I present just a few here.

The first evidence that I present is the dismantling of our consumer protection laws over the last 20 years.

  1. Usury – At one time in this country we had laws that would prevent usury. Usury is the charging of excessive interest on money borrowed. In 1980 a bill was passed that gave the FEDERAL RESERVE greater control over banks and usurped each states rights to establish usury laws. You now have payday loans and credit card companies charging %28 + APR on revolving debt. How is this NOT usury?  Where is the protection? Over the last few years, laws have been proposed to protect consumers but obviously the interest is in helping the banks and clearly destroying our financial system.
  2. Bankruptcy – In 2005 a bill was passed with the words “Consumer Protection Act” in the title. This bill did anything but protect the consumer. This law limits the debt that a person can just walk away from and it seems that this law created some unintended(actually probably intended) consequences. As consumers accumulate debt and become overwhelmed by finance charges they get in over their heads. They were then sold consolidation loads to manage the debt. In many cases they accumulated more debt and were then unable to repay it. If the debtor tries to file for bankruptcy they can no longer walk  away from the debt. In some cases the debtor then buys a home equity loan and subsequently defaults, and helped with the crisis that we have today. The inability to walk away from the debt encourages the lender to over extend the debtor who eats the debt up like a puppy eating candy till he pukes. I agree that it is incumbent on consumers to protect themselves. However there are times where the government needs to protect people from themselves. ( I can’t believe that I just said that)
  3. Relaxed mortgage lending and guarantees. I remember buying my first home in 2001. Everyone and their brother were trying to sell me a loan and they were all guaranteed by FHA. I believe that it was 3% down and I was in a home.  I owned a business that was having a little trouble as the economy was tanking. I was offered a re-finance at a lower rate with no income verification where I could take money out of the transaction and keep in mind I only put 3% down.  This was a tempting proposition but logically I knew that this was simply too good to be true. And it was. I recall Bush on  television about a year later bragging about the highest percentage of home ownership in the history of our country. But at what cost? Home prices were heading out of the stratosphere and it was obvious that borrowers whom by all past measures could NEVER afford the payments were getting loans left right and center. This is nothing to brag about Bush!  Legislation was in implemented to completely screw these borrowers. As the subprime mortgages were given out like candy where were the legislators? Were they proposing legislation requiring some realistic mortgage lending requirements. NO, this would have been the logical thing to do to PREVENT a housing bubble, which obviously needed to be done. Instead they were passing legislation to encourage this destructive behavior and encouraging the creation and growth of this bubble.
  4. Policy that continues to destroy – This crisis exists because of excessive lending for the 2nd time in the history of this country our consumer debt to GDP ratio is 1:1. That’s right our GDP is equal to that of our consumer debt. Want to guess when the last time that happened? The only other time that condition existed in the past was in 1929. So how do these economist propose that we get out of this mess? They are proposing that we borrow and spend our way out of this. If they had their way every man woman and child would borrow a million dollars and go on a spending spree. If you keep doing what you’ve been doing your going to keep getting what you’ve been getting. ANY other expectation is INSANE.

Hopefully by now you are getting the point. If not let me spell it out. This is the systematic destruction of our banking and economic system. This type of incompetence does NOT happen by mistake, I just don’t think that this perfect storm of destruction can happen as a matter of circumstance.

You may be asking why would anyone want to destroy our banking/economic system? Just follow the money. The logical end to all of this is the creation of a single nationalized bank. A bank so large that it could NEVER be re-privatized, there is just not enough money in the world to re-privatize it.

Of course this entity will be owned by the current “owners” of the Federal Reserve. This would give them greater control of the siphoning of money from our country to these world bankers.

1 reply
  1. Dimsdale
    Dimsdale says:

    I find the mortgage rule relaxation particularly galling.  I bought my house in 1996.  I put slightly less than 20% down, and was required to pay PMI, which was a fee I paid to insure the bank against my own failure to pay.  Whatever happened to that?

    For whatever reason, the relaxation of the normal mortage "rules of the road" was the fast track to the real estate meltdown, and set off a domino effect of bank closures and instability that has left us where we are today.

    A huge nationalized bank that is eventually incorporated into a World Bank?  Too close to reality to disallow.

    "The logical end to all of this is the creation of a single nationalized bank. A bank so large that it could NEVER be re-privatized, there is just not enough money in the world to re-privatize it."

    It appears that this is the same plan with health care: undercut private health insurance with subsidized gov't health care, then end up with a monolithic government program like those in Great Britain and Canada, that promise everything but deliver little, rationing out health care like the meager payouts in Social Security.

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