Wall Street fears for next Great Depression

Originally posted by tgambill


March 17 (Bloomberg) -- The Federal Reserve, struggling to prevent a meltdown in financial markets,

...will lend to the 20 firms that buy Treasury securities directly from it.

``It is a serious extension of putting the Federal Reserve's balance sheet in harm's way,'' said Vincent Reinhart, former director of the Division of Monetary Affairs at the Fed and now a scholar at the American Enterprise Institute in Washington.

``That's got to tell you the economy is in a pretty precarious state.''

what your post did not mention is that the Frederal Reserve is actually
putting their portfilio of some $700 Billion in US Treasuries...
up for a swap for the banks bad loan & bad mortgage paper as collateral.


Now with that more complete background information,
let's address your last quote:

``That's got to tell you the economy is in a pretty precarious state.''

A: OR Else -> the Federal Reserve is developing and rolling out a series of actions in which their valuable U.S.Treasuries which are now available to being 'swapped'->
are somehow going to be worth less than the presently toxic bad mortgage paper the lending houses are Swapping with the Federal Reserve's good money.
(in the form of US Treasuries)


? Is the Federal Reserve banking on the devaluation of the USD,
and in the long term all that presently 'bad' debt paper and mortgage bonds... will have a greater value as tangible assets, than an inflated and devalued dollar in the form of US Treasuries??

i smell something rotton going down

My family is friends with a manager who was laid off from UBS last year (with 20+ years of banking experience) and admits that he'll probably never work in banking again.

I look at the events unfolding in the markets/banking/economy on a daily basis and I keep thinking of what Paul Craig Roberts has been saying for a while (about the banking industry and the economy in particular).

Amazing how history repeats itself (R.I.P. Glass-Steagall Act).

reply to post by windwaker


So a woman only has value if she is good looking?

You say these things as if they are bad.

no more starbucks and evian? Are you serious my friend?

No more pollution from the transportation and processing of billions of plastic bottles, that in turn fill up our landfills.

No more people spending money on cheap bad coffee, and tossing their cups to fill up our landfills.

Instead of sitting around watching dvds and hiding in our homes, we will stop locking ourselves with our junk like dragons sitting on a pile of gold and go out and have street parties, talk to our neighbors. And *gasP* play a game or two and get some exercise.

I have wondered if all of this has been created by the big banks in order to get the little banks to close up shop.

In other words, they are cleaning shop.

That this gets done every few decades or so when too many small banks crop up.


But this all may actualy be an exception to the rule. Many have described it that it was all out on the predatory lending practices, massive investments on scales never before seen.
That the banks got to big for their britches and have shot themselves in the foot. While yes, for many years the federal reserve and the big banks have meticulously collaborated and puppeteered the economy, there are many big guns playing now, and they are only playing in it for themselves.

We can't automatically assume that they are still in cahoots and playing together, fairly. And it is involving banks from all over the world.

What we may be witnessing is the fall out of people not playing fair in the sanbox, and built the sandbox beyond wha they can control.

Just some thoughts I have been having lately.

Interesting theory.

Ama

What you are saying is correct. We also expect an incident to happen in May.......


reply to post by DwnitsDwn

The Problem:

I'm going to try and state this simply, because if I can get you to understand the problem, then you're going to be able to also see the solution clearly as well. If you don't get it at first, just read it again. Eventually, it sinks in...


A bit of history:

1) Once, gold and silver were considered the only “real” money, but it was heavy and risky to carry around...

2) So people paid goldsmiths to store the money, and got paper receipts for it...

3) After a while, people traded the receipts as money, and left the gold in the bank most of the time. So the bankers got clever and came up with a scam...

4) The banks printed off receipts for more gold than they actually had, and “loaned” those receipts out to charge interest on it. They kept their fingers crossed hoping that not too many people would come in trying to redeem their receipts for real gold all at the same time. This let them make a lot of money charging interest, because they could charge interest on MONEY THEY DIDN'T HAVE.


An analogy can be made using property and titles. Here's the scam in another way:

Step 1: Acquire a vacation home.

Step 2: Sell the title to the home to one person.

Step 3: Sell the title to the home to ANOTHER person.

Step 4: Hope they both don't show up on the same weekend!


Fractional reserve banking lets a bank say to a depositor that all his money is safe and sound at the bank at the same time they get to loan most of it out to someone else so they can charge interest on it. So there are two people with a legitimate claim to the same pile of money. (So whose is it, really?) Then the borrower deposits their new money into another bank, which loans most of it out too. The process continues over and over, and if you do the math, there is far more money CREATED by banks in loans than existed in the first place.

Considering all the interest being made on all these loans you see it is a very profitable scam. The risk comes when too many people come asking for their deposits all at once. Then the only thing the banks can do is call in as many loans as possible and see how much they're able to cough up, which is invariably far less than what people thought they had tucked away safely in the bank.

In the example above using the vacation home, the banking system scam works the same way except... THERE IS NO HOME! There is no gold backing the receipts anymore, so essentially we have all been trading titles without property!


What's the result?

1) Almost every dollar that exists is owed to a bank somewhere, because at some time in history, it was created when it was loaned out.

2) Far more money is owed to banks (because of compound interest) than even exists! So as a country, we cannot possibly get out of debt under this system.

3) Because the US government no longer prints its own money, but instead borrows it from the Federal Reserve, bankers have the power to influence our society and government by controlling finance. They decide to create (or not create) money depending on who's asking, and for what. They choose what projects get funded, and let other needs wither on the vine by starving them of working capital. This subtle yet immense power is more than enough to undermine democracy, and guide the course of a nation's history.


What is the solution?

Simple. Money must not be created in the form of loans. It must be something that once created, circulates permanently. Otherwise many forms of abuse and deceit can work their way into the system, and a class of parasites will rise to power in society by cleverly disguising the fact that they can create counterfeit money.

Today, it is pretty clear that nearly all the gold the US once had is overseas. These same banksters which instituted the Federal Reserve, now have many many billions of our gold. So I do not believe that gold will be the perfect answer but this is just opinion and needs to be discussed.

Originally posted by ianr5741
Today, it is pretty clear that nearly all the gold the US once had is overseas. These same banksters which instituted the Federal Reserve, now have many many billions of our gold.

We been robbed.

What if we trade with tiny painted wooden chips and keep a bunch of paper IOU's on file in the back room? Anyone that doesn't pay up on thier IOU's, we break thier knee caps and then take 'em out in the desert and shoot 'em in the head. Oh wait, thats vegas, nevermind.

[edit on 22-3-2008 by In nothing we trust]

Buy all the food you can afford. Buy freezers, buy a big tank for water, buy a reverse osmosis unit. Buy seeds and jars. Learn how to use the sun to cook things. Buy batteries and solar panels so that you can make your own electricity.

If you can't afford it, pray.

Google: "electric car", "gardening", "wind turbine", "federal reserve fraud".

Also, those of you with violent and vengeful tendencies... find the names of all of those people who did this to us, and find out where they live. (I do not advocate violence in any form for any reason. People who act based on the sentence I just wrote have their own issues to contend with. I am not responsible.)

Finally, look at what this country has done before, when the constitution was written. We have to become responsible for ourselves, rather than beg for other people to save us. They won't. We must re-establish law that is just, fair, and righteous according to well-accepted ideas of morality.

Last but not least, NO MORE MONEY CREATED BY BANKS IN THE FORM OF DEBT WITH INTEREST ATTACHED. This leads to parasites rising in power in society at the expense of everyone else.

I pray we learn our lesson and not make the mistake again (of trusting government in times of war, and entrusting our prosperity to bankers).

Peace.

"By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft." - Lord John Maynard Keynes, “Economic Consequences of Peace”

"The eyes of our citizens are not sufficiently open to the true cause of our distress. They ascribe them to everything but their true cause, the banking system; a system which if it could do good in any form is yet so certain of leading to abuse as to be utterly incompatible with the public safety and prosperity." - Thomas Jefferson

“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented." - Major L.B.Angus

Congressman Patman: "Mr. Eccles, how did you get the money to buy those two billions of government securities?" Eccles: "We created it." Patman: "Out of what?" Eccles: "Out of the right to issue credit money." - Testimony of Marriner Eccles, Chairman of the Federal Reserve Board, before the House Banking and Currency Committee, 1941

"Every circulating Federal Reserve Note represents in actuality a one dollar debt to the Federal Reserve system." - Money Facts, House Banking and Currency Committee

"Every Congressman, every Senator knows precisely what causes inflation...but can't, won't support the drastic reforms to repeal of the Federal Reserve Act because it could cost him his job." - Robert A. Heinlein, Expanded Universe

“Every effort has been made by the Federal Reserve Board to conceal its powers, but the truth is that the Federal Reserve System has usurped the government. It controls everything in congress and it controls all our foreign relations. It makes and breaks governments at will.” - Louis McFadden, Chairman of the House Committee on Banking and Currency

"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power of money should be taken away from the banks and restored to the people to whom it properly belongs." - Thomas Jefferson

“Our goal is gradually to absorb the wealth of the world.” - Cecil Rhodes, “The secret banking cabal”

“If all the bank loans were paid up, no one would have a bank deposit, and there would not be a dollar of currency or coin in circulation. This is a staggering thought. We are completely dependent on the commercial banks for our money. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money, we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp upon the picture, the tragic absurdity of our hopeless position is almost incredible - but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it is widely understood and the defects remedied very soon.” - Robert H. Hemphill, Federal Reserve Bank of Atlanta

"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States." - United States Senator Barry Goldwater

“The financial system has been turned over to the Federal Reserve Board. That board administers a finance system by authority of a purely profiteering group. That system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money. This (Federal Reserve) Act establishes the most gigantic trust on Earth. When the president signs this bill, the invisible governments by the monetary power will be legalized. The people may not know it immediately but the day of reckoning is only a few years removed, the worst legislatives crime of the ages perpetrated by this banking bill.” - Charles A. Lindbergh, Representative, MN

"Some people think the Federal Reserve Banks are the United States government's institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers." - Congressional Record 12595-12603 June 10, 1932

“The issue which has swept down the centuries and which will have to be fought sooner or later is the People vs. The Banks.” - Lord Acton, Lord Chief Justice of England, 1875

"The central bank is an institution of the most deadly hostility existing against the principles and form of our Constitution. I am an enemy to all banks discounting bills or notes for anything but coin. If the American people allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered." - Thomas Jefferson.

"The Federal Reserve Banks are not federal instrumentalities." - Lewis vs. United States 9th Circuit 1992

"The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers." - Congressman Louis T. McFadden

"The Federal Reserve bank buys government bonds without one penny." - Congressman Wright Patman, Congressional Record, Sept 30, 1941

"The few who understand the system, will either be so interested in its profits, or so dependent on it's favors, that there will be no opposition from either class." - Rothschild Brothers of London, 1863

"The regional Federal Reserve banks are not government agencies. ...but are independent, privately owned and locally controlled corporations." - Lewis vs. United States, 680 F. 2d 1239 9th Circuit 1982

"This Federal Reserve Act establishes the most gigantic trust on earth. When the President Wilson signs this bill, the invisible government of the monetary power will be legalized. The worst legislative crime of the ages is perpetrated by this banking and currency bill." - Charles A. Lindbergh, Sr. , 1913

"The Federal Reserve is answerable to no one.” - Ronald Reagan

"You are a den of vipers and thieves. I intend to rout you out, and by the Eternal God, I will rout you out. If the American people only understood the rank injustice of our money and banking system, there would be a revolution before morning." - Andrew Jackson

"When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money." - “Putting it Simply”, Boston Federal Reserve Bank

"We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. They are not government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers. This evil institution has impoverished the people of the United States and has practically bankrupted our government, and it has done this through the corrupt practices of the moneyed vultures who control it." - Senator Louis T. McFadden, Chairman US Banking & Currency Commission

"All the perplexities, confusions, and distresses in America arise, not from defects in the Constitution or confederation, not from want of honor or virtue, as much as from downright ignorance of the nature of coin, credit, and circulation." - John Quincy Adams

“Banking was conceived in iniquity and born in sin. Bankers own the Earth. Take it away from them but leave them the power to create money, and, with the flick of a pen, they will create enough money to buy it back again. Take this great power away from them and all great fortunes like mine will disappear and they ought to disappear, for then this would be a better and happier world to live in. But, if you want to continue to be the slave of the bankers and pay the cost of your own slavery, then let the bankers continue to create money and control credit." - Sir Josiah Stamp, President, Bank of England (2nd richest man in England)

"But if in the pursuit of the means we should unfortunately stumble again on unfunded paper money or any similar species of fraud, we shall assuredly give a fatal stab to our national credit in its infancy. Paper money will invariably operate in the body of politics as spirit liquors on the human body. They prey on the vitals and ultimately destroy them. Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice." - George Washington in a letter to Jabez Bowen, Rhode Island, Jan. 9, 1787

"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance." - James Madison

“I am afraid that ordinary citizens will not like to be told that the banks can, and do, create and destroy money; and they who control the credit of the nation direct the policy of governments and hold in the hollow of their hands the destiny of the people.” - R. McKenna, Chairman, Midland Bank London

“We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” - Winston Churchill

“If two parties, instead of being a bank and an individual, were an individual and an individual, they could not inflate the circulating medium by a loan transaction, for the simple reason that the lender could not lend what he didn't have, as banks can do. Only commercial banks and trust companies can lend money that they manufacture by lending it." - Professor Irving Fisher, Yale University, in his book "100% Money"

“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. This is the shabby secret of the welfare statists tirades against gold. Deficit spending is simply a scheme for the 'hidden' confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.” - Alan Greenspan, Gold and Economic Freedom

"It is absurd to say that our country can issue 30 million dollars in bonds and not 30 million dollars in currency. Both are promises to pay, but one promise fattens the usurer and the other helps the people". - Thomas Edison

“The actual process of money creation takes place primarily in banks. Bankers discovered that they could make loans merely by giving their promise to pay, or bank notes, to borrowers. In this way banks began to create money. Transaction deposits are the modern counterpart of bank notes. It was a small step from printing notes to making book entries crediting deposits of borrowers, which the borrowers in turn could 'spend' by writing checks, thereby 'printing' their own money.” - Modern Money Mechanics, Federal Reserve Bank of Chicago.

“The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity.” - Abraham Lincoln

“Money is not based on gold anymore; money is only an idea. Ideas are not scarce. There should be no shortage of money to lubricate the gears of commerce any more than there should be a shortage of imagination. Today money is created on computers and paper, and since it is so easy to create, no one should have a right to charge interest on its creation. Yet, that is what the Federal Reserve System does - loans money to the people, charges interest on it, and puts the working public into debt just for being given permission to build for itself its own prosperity.” -

"Neither paper currency nor deposits have value as commodities, intrinsically, a 'dollar' bill is just a piece of paper. Deposits are merely book entries." - Modern Money Mechanics Workbook, Federal Reserve Bank of Chicago, 1975

"Permit me to issue and control the money of a nation and I care not who makes the laws." Mayer Amschel Rothschild, founder of the Rothschild international Banking Dynasty, 1790

“The youth who can solve the money question will do more for the world than all the professional soldiers of history." - Henry Ford Sr.

“There is no more direct way to capture control of a nation than through its credit and money system.” - Phillip A. Benson, President of American Bankers' Association, 1939

reply to post by ianr5741


star for you sir Great post.

very informative

They orchestrated the Great Depression of 1929 to set up for WWII. This is supported by an incredible sequence of events not only before 1929, but also after 1933, Plot to seize the White house, Wall street financing Hitler and the Nazi party [Prescott Bush, Duponts, Morgans, Henry Ford and many more], leading to a provocation of the Japanese to attack Pearl Harbour for the stict purpose of justifying a war with japan with the ultimate goal of declaring war with Germany. Long long story short......

They are counting on the crash of the USD making way for the Amero. they will buy puts and put their money in precious metals. This will be a preliminary stage set for WWIII, NWO and establishing the North American Union by 2010 [already agreed upon by presidents of Canada, Mexico and the US not including Congress, fact....many Americans are not aware of]


reply to post by St Udio

I really can't believe they are going to succeed with the Amero, regardless of what the Presidents have done.

I have yet to see a Canadian who is not rabidly against this, and in turn this may wake up the American people to the consequences, maybe not. But the Amero is dead in the water if all 3 countries don't adopt it.

The three countries have already signed and agreed on the Amero and The North American Union. All they are waiting for now is the declared national disaster that is being planned. Bush or if we have the elections in November, his successor will declare martial law as planned. The planning goes back to 1969 and actually beyond.

www.youtube.com...

www.youtube.com...

www.youtube.com...

Mexican president lies and is part of the devious plan.

www.youtube.com...

www.youtube.com...

www.youtube.com...

www.youtube.com...





reply to post by Relentless

its not a matter of if any longer....its a matter of when.

www.livevideo.com...





reply to post by Relentless

Originally posted by St Udio
what your post did not mention is that the Frederal Reserve is actually
putting their portfilio of some $700 Billion in US Treasuries...
up for a swap for the banks bad loan & bad mortgage paper as collateral.

Whoa! I did not know that. Very interesting indeed. Since the Fed controls the value of the $, they should know if it's headed up or down. Obviously the downward trend we're seeing is going to be sever and long term. Unless the Fed is secretly being run by Albert Schweitzer of course.

Originally posted by tgambill
The three countries have already signed and agreed on the Amero and The North American Union.

Maybe I wasn't clear. The Presidents may have agreed on it, but the people and even the Congress did not. They aren't going to stand for it. It will be the straw that breaks the camel's back with the people, and I'm saying (since sadly the americans are a tad brain dead about all this) I think the Canadians are going to balk first.

They have this figured out. It will be forced due to a crashed economy and martial law. The lawmakers will go along with it as it will become forced. There is a 100% chance that it will succeed, but it will be forced. It won't last an extended period of time however. More people will accept it than you realize. I would recommend that folks start researching the methods they will use or set up to make this happen. You have to understand how much power and influence and drive to make this happen has put them ahead. They set things up so that the targeted population will want it to happen.




reply to post by Relentless