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Posts Tagged ‘$26 Trillion’

Check out the link below for what really happened during the $26 trillion bank bailout of Presidents George W. Bush and Barack Obama. The comic above and the story below are examples of why the political and economic systems of the United States are nothing but games rigged against the 99 percent. The political systems, especially on the federal level, are totally corrupt.

The real bank bailout, believe it or not–Breakdown-of-the-26-trillion-the-federal-reserve-handed-out-to-save-rich-incompetent-investors-but-who-purchase-political-power–Johnhively.wordpress.com

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We’ve been told a ton of bull shit about the deficit and the looming fiscal cliff, which is a combination of tax increases and spending cuts that will kick in shortly after the end of 2012. We’re told by our corporate leaders, like Barack Obama, Joe Biden, Ron Wyden, Mitt Romney, John Boehner and others that the deficit is too great! They tell us there must be spending cuts and tax increases to solve the problem. This is a total load of bull shit in a grand farce being played out in the halls of congress and the white house to fool the American people. There is no great problem too big to solve. The short term answer to the so-called deficit problems can be found in the words and actions of Federal Reserve Chairman Ben Bernanke.

Back in 2008 or so, the Federal Reserve (the Fed) printed up $26 trillion and loaned it to several banks. According to Bernanke, the banks paid most of the money back by 2011. That means the Federal Reserve has somewhat short of $26 trillion it can simply give the US government. It’s money that’s just sitting there, hopefully collecting interest.

Think about it. The Fed was willing to bail out rich investors, but Obama, the Democrats and the Republicans are unwilling to ask the Fed to do the same thing for the rest of the American people, even though the Fed is sitting on stacks and stacks of cash. Their attitude is simple; what’s good for the 1 percent is way too good for the lower class 99 percent.

Political grand theater is occurring right before our eyes. It’s a great way to get us emotionally involved in an argument with an easy solution other than tax increases and spending cuts.

Yes I know. There are people who will say that it is not possible to use the $26 trillion to save the American people, although it was okay use it to save rich investors from their own stupidity. And these people would be right, but for all the wrong reasons.

Here’s the real reason why it can’t happen. Bernanke lied. The recipients of the $26 trillion never paid it back (Check out the story below). The Fed cooked it’s books, the recipients cooked theirs, to make it appear they paid it back, which was mathematically impossible.

But that doesn’t mean the Fed couldn’t simply print up a trillion or so dollars and help out the other 99 percent of the American people. It should because it can, but it can’t because to do so would change the hidden rules of the grand charade being played out by the 1 percent and their representatives in government, in order to mislead the 99 percent again.

Related stories

Breakdown-of-the-26-trillion-the-federal-reserve-handed-out-to-save-rich-incompetent-investors-but-who-purchase-political-power–JohnHively.wordpress.com

Obama Willing to Compromise on the Fiscal Cliff–Guardian.UK

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What Does $26 Trillion dollars look like?

The Federal Reserve gave $26 trillion to rich people. Los Angeles-based 3D designer Oto Godfrey has created a powerful series of images to help us to visualize this much money. He does this in stacks of 100 dollar bills. If you want to see exactly what the money looks like, click the link below.

Click the link here to see the visual of what $26 trillion looks like

Related links:

Breakdown of the $26 trillion the Federal Reserve Gave Out to Save Rich and Completely Incompetent Investors

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There are numerous ways to resist! One of them is to get involved. For starters, join the fight against free trade treaties.

During 2012, President Obama and the corporate plutocrats in congress have another jobs outsourcing treaty in the pipeline. They call it a trade treaty, but it’s really a jobs exporting, income redistributing treaty. When jobs are exported, the difference between the old wages here and the lower new wages there are given to the rich via higher corporate profits, rising dividends and enhanced share prices. The job losers (that’s us) get uncertain futures. It’s the largest “Jobs Exporting, Income Redistribution Treaty” since NAFTA. This treaty is called the Trans-Pacific Free Trade Treaty by corporate representatives in government, but it will redistribute more income from working people to the rich, which is what it’s real purpose is.

Get involved in your area to help stop this massive income redistribution treaty, whose sole purpose is to impoverish the citizens of the United States, and then take their income and hand it to the rich in the form of higher corporate profits, rising dividends and share prices.

It has to make you wonder. How is it possible that our representatives in congress can possibly imagine that the mass of working people can continue to purchase enough stuff to keep corporate profits moving higher when they intend to redistribute more of our income to the rich. Maybe we’re not important anymore since the Federal Reserve can print trillions of dollars, hand it over to the banks, fix their books to make it look like the banks paid the money back, and then pretend as though nothing happened. The banks can then fix their own books to make it look like they paid the money back, and then funnel it to enhance corporate profits, pushing their dividends and share prices ever higher. The rich, of course, get richer, while we get unemployment and inflation. More on inflation later.

For more information on what this treaty does, check out the link below.

Information on the Trans-Pacific Jobs Exporting, Income Redistribution Treaty

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How much did President Obama know about the $26 trillion in loans the Federal Reserve gave the big banks? That money wasn’t used to save the banks. It was used to save rich investors. The Fed claims most of the loans have been repaid. However, statistically, that’s highly unlikely. Okay, it’s impossible.

We can only speculate on how much the president knew about the loans, but it appears he knew a lot.

Take the Obama stimulus package of 2009. Obama pushed the so-called American Recovery and Reinvestment Act through Congress in 2009. The stimulus package was large, $787 billion, but most of it was spread out over a few years, and a large chunk of it was in tax cuts that in the past had proven to be unsuccessful in stimulating the economy.

Given the massive tanking of the economy beginning officially in December 2007, many economists thought the president’s package needed to be two to three times larger. This included economic Noble Prize winners Paul Krugman and Joseph Stiglitz. Furthermore, every economist with their brains in their heads thought most or all of the stimulus should have been injected into the economy in a much shorter period of time, not spread out over three years.

ww3So why didn’t Obama pursue a greater stimulus package, and why spread it out over three years, when the Democrats held the House of the Representatives and had 59 votes in the Senate. Why would he risk prolonging the catastrophe with such a relatively small, spread out, stimulus compared to the size of the economic disaster the Republicans and Bill Clinton had led the nation into?

This suggests President Obama had to have known of the secret $26 trillion bailout the Federal Reserve gave to rich investors, and he had to have approved of it. This leads us to another conclusion. To one degree or another Obama is a believer in supply side economics; he apparently believed that the Federal Reserves secret $26 trillion in loans to the banks was going to stimulate lending and the economy would magically grow, even if demand for everything was plummeting; and therefore we can speculate that Obama may have believed that the Fed’s actions meant the stimulus for the real economy didn’t need to be very large or swiftly implemented. He must have believed that forking over trillions of dollars to the rich was sufficient to stimulate the wrecked economy.

This suggests Obama agreed with the Fed and its actions. Otherwise, he would have done something about it, like propose a bigger stimulus package.

This means the repercussions of the loans are enormous. Okay, they’re bigger than that. You can’t overstate how gigantic the repercussions are for the 99 percent.

The financial markets always have to move upward in value. The same is true of individual corporate stock prices. Otherwise, they’ll collapse, just like what has occurred from 2007-09, and during the Great Depression, and every recession for that matter. That means corporate profits mostly need to move in an upward trajectory. Otherwise, the system will collapse. Falling corporate earnings results in falling stock prices and dividends. You can’t let the value of the markets drop for too long or the system will become valueless. While that’s not good for the rich, it’s great for us working folks.

The financial markets are the primary conduit through which income and wealth are redistributed to the rich from the 99 percent. Ship jobs overseas and the difference between the higher wages here and the lower wages there wind up in the pockets of the rich via higher dividends, share prices and CEO compensation. The people that lose their jobs, well, they’re out of luck. There are dozens of ways to redistribute income and wealth from working people to the rich via the financial markets, but there’s no need to go into it here.

If the financial markets are allowed to die, the income redistribution scam would die. That means if you’re rich and you want to keep the scam going, then you need to find a way to keep corporate earnings marching upward, even if the marching means smashing the middle class into the ground under the massive wheels of your political powers.

But what happens when draining sufficient profits out of the middle class is impossible to keep the financial markets moving higher because those folks in the middle have been drained dry? Such as when their home equity has already been spent, and enough of their jobs have been shipped overseas. During a recession, what happens when corporations have cut their labor costs to the bones? What happens when there’s insufficient demand to keep profits soaring ever higher? which is most likely what has occurred during the last few years of the worst Depression since the Great Depression.

The answer is simple. The Federal Reserve’s loans that were most likely never paid back are being used to prop up the big banks. That also means the profits the banks get are no longer 100 percent related to the way they do business with the middle class, like giving home and car loans.

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The Fed can simply print trillions of dollars and hand it over to the banksters. All parties can then fix their books to make it appear as if the loans have been repaid even though they have not. The banks can then fix their books to make the loans look like profits. The profits can then be released as dividends to rich shareholders in whatever amounts are necessary over the ensuing years. The stock markets can then continue to move up in value. The scam is saved.

Maybe this is why Obama didn’t care about the creation of jobs until we got close to the election of 2012. Maybe that’s why Obama didn’t give a fiddler’s fart about the size of the stimulus package despite large Democratic majorities in both houses of congress. Maybe this scam is why there was no need to provide any serious relief to homeowners who are underwater on their loans. Maybe this is why Obama pretended to be concerned about job creation, but he was only too happy to ship hundreds of thousands of jobs away last fall when he signed the South Korea free trade treaty. Maybe this is why Obama has not felt a need to fix the real economy, at least not in any serious way.

The existence and desire of the Federal Reserve, as well as its ability to print money on demand and secretly disburse it to the rich, means the 99 percent of us are no longer necessary to maintain the upward trajectory of the financial markets. We the people have become dispensible. The United States can now become a banana republic because the demand for goods and services by the middle class may no longer be necessary to keep the financial markets flying higher. The affluent only need the Federal Reserve.

Related links

Why Isn’t Federal Reserve Chairman Ben Bernanke in Prison?

Click here for an important and related link

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berniesanders-wallst

Former U.S. congressman Alan Grayson (D-FL) appeared on Countdown Monday evening to discuss how an audit of the Federal Reserve revealed the private bank giving $26 trillion to U.S and foreign banks without Congress’ authorization.

“For the first time in history, I’m talking the 100 year history of the Federal Reserve, they played favorites,” Grayson told host Keith Olbermann. “They said we’ll give a hundred billion to this institution, another hundred billion to this institution, and so on down the line, when you and I couldn’t even come close to accessing that kind of money of those terms.”

There is something Grayson doesn’t mention in the link below. Goldman Sacs received billions of dollars in loans from the Fed at 0.001 percent interest. Then Goldman lent the money back to the federal government at a much higher interest rate. Shortly after that, Goldman reported record earnings for its rich investors and CEOs thanks to this scam. In other words, the Fed was the architect of a scam to redistribute income from working Americans to rich investors. That’s because the government pays the interest on its debt out of the money it takes in the form of taxes. Some of that tax money went to the rich investors of Goldman Sacs because they’d borrowed cheap and lent it back at the higher rate. This was another corporate/rich person welfare scam engineered by the Federal Reserve and your government looked the other way. Once again the affluent were too rich to be allowed to look stupid in their failure. So the government bailed them out. (John Hively)

Click here for the Complete Story and Video

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