Listings)
April 20, 2009
Last fall we were introduced to a $700 billion taxpayer bailout by then Treasury Secretary Henry Paulson. The public reacted with opened mouths, astonishment, and shock. Everyone with common sense couldn’t believe that our government officials were asking the taxpayers of this country to turn over that much money to the same crooks that bankrupt not only their own companies, but millions of other companies along with millions of citizens. Immediately the defenders of Wall Street went into action as if they already had their game plan in place and were only waiting for the word to get out.
Since then just about the only thing acknowledged, and certainly the only thing talked about, is the $700 billion. But that money was only a diversion while trillions more were, and still are, being quietly passed through the back door. No one, and I mean absolutely no one, will admit what the total amount is. Bits and pieces continue to leak out, but there seems to be no on-going detail tally available to the money suppliers. The policy seems to be ‘just keep sending the money, keep your mouth shut, and don’t ask any questions’.
According to Bloomberg, $12.8 trillion has been spent on or guaranteed to the US financial system since August 2007. We know that $336 billion has been “loan” through the Federal Deposit Insurance Corporation (FDIC) and more than $2 trillion “loan” through the Federal Reserve. In case you have figured it out yet, the known loans are more than three times the amount ($700 billion TARP) that everyone talks about. So why aren’t they talking about the “other” money? Because it’s the latter that ties the banks to some government control, albeit it very little. Therefore, it’s the TARP money the banks want to repay. And what are they repaying it with? The “loans” from the FDIC and the Feds. Again, in case you haven’t noticed, it amounts to repaying taxpayer money with taxpayer money in order to remove restrictions.
JPMorgan Chase regrets “accepting” $25 billion, calling the TARP money a “scarlet letter”, and they want to repay it. However, they are willing to keep another $40 billion they have borrowed from the taxpayers outside TARP. The Washington Post describes it as “a breakup and embrace”, which is a pretty apt description. By paying back the TARP money, they sever all ties relative to any government control. The same Washington Post article points out that by repaying the Treasury money, the banks don’t have to make any sacrifices such as “restricting executive pay”. And guess who’s making the decision to repay the TARP money? You got it — executives.
Douglas Elliott of the Brookings Institution said in reference to the non-TARP money “the other programs have no strings attached. What’s not to like about it from the perspective of the banks?” And the Federal Reserve, with Ben Bernanke at the helm, is refusing to tell the public who they’re loaning our money to, but the Washington Post quotes financial analysts as saying “it is highly likely that every major firm is on the list”.
Bloomberg has filed a law suit to make government documents available to the press and public. But few believe they will be successful. It’s rather doubtful anyone believes them, but both the banks and the government say that by releasing such information, it could cause a run on banks and other financial institutions if that information was revealed. But it doesn’t matter if that’s true or not true, with our government over the past 30 years, all that matters is that they declared a “reason” (definition: “excuse”), therefore the book is closed on the issue as far as they are concerned.
If you so desire, you can go to the Federal Reserves website and click on their “Monetary Policy” tab and try to figure out what they are telling us. But it won’t tell you much, even if you can decipher it. The sole objective of the feds and other money-laundering governmental departments is to protect the banks. And the banks attitude is “let me give back the money that holds me responsible, but I’ll keep the money that allows me to run amok and steal as much as I can, thank you”.
Myspace Layouts
