The banksters, with the aid of the US TREASURY set up the framework for the FINANCIAL COLLAPSE

The huge financial collapse which affected nearly everyone on the entire planet has its roots in the scheming of the banksters, along with US treasury officials to dismantle the regulations governing banking not just in the US but throughout the whole world. It all started back in 1997 during the good 'ole Clinton Presidency.

The Confidential Memo at the Heart of the Global Financial Crisis

The year was 1997. US Treasury Secretary Robert Rubin was pushing hard to de-regulate banks. That required, first, repeal of the Glass-Steagall Act to dismantle the barrier between commercial banks and investment banks. It was like replacing bank vaults with roulette wheels.

Second, the banks wanted the right to play a new high-risk game: “derivatives trading”. JP Morgan alone would soon carry $88 trillion of these pseudo-securities on its books as “assets”.

Deputy Treasury Secretary Summers (soon to replace Rubin as Secretary) body-blocked any attempt to control derivatives.

But what was the use of turning US banks into derivatives casinos if money would flee to nations with safer banking laws?

The answer conceived by the Big Bank Five: eliminate controls on banks in every nation on the planet -- in one single move. It was as brilliant as it was insanely dangerous.

How could they pull off this mad caper? The bankers' and Summers' game was to use the Financial Services Agreement (or FSA), an abstruse and benign addendum to the international trade agreements policed by the World Trade Organisation.

Until the bankers’ re-draft of the FSA, each nation controlled and chartered the banks within their own borders. The new rules of the game would force every nation to open their markets to Citibank, JP Morgan and their derivatives “products”.

And all 156 nations in the WTO would have to smash down their own Glass-Steagall divisions between commercial savings banks and the investment banks that gamble with derivatives.

The job of turning the FSA into the bankers’ battering ram was given to Geithner, who was named Ambassador to the World Trade Organization.

Vice

The banksters, with the willing cooperation of the United States Treasury Department strong armed most every nation in the world into signing on to the agreement. They threatened to cut off trade with any country that didn't sign.

The only nation with the balls to stand up to the banksters was Brazil which was threatened with an all out trade embargo by the EU. They stood their ground and, as a result, were one of the only nations in the world to ride out the financial mess of 2007-09 with minimal damage and, by some accounts, even thrived while the rest of the world imploded.

All of the financial problems we are living with today can be traced back to this move by the banksters to end regulations on their industry which is purported to be the subject of This memo in which Timothy Geithner (then assistant treasury secretary) refers to their evil scheming as the "end game" of the WTO.

They destroyed the regulations governing banking and made it so that no nation could protect itself from their irresponsible practices. In no time, they turned the banking and financial industries into a huge casino operation where the house (the banksters) always wins and the rest of us are always left shouldering the burdens of any losses.

I don't doubt that this is all true, the bankers have proven themselves to be the scourge of the planet. The only problem is that memo was really vague, its hard to really take anything away from it. The "end game" comment very well could have been taken out of context.

reply to post by jaws1975


I wasn't impressed by the memo either. That's why I only included it as a footnote to the thread.

The part I had never heard of before is how the Treasury conspired to put the language in the treaty which effectively disarmed the whole world in the face of bankster malpractice.

It makes me wonder if the efforts in the US to reinstate Glass Steagall wouldn't be undermined by this treaty.

reply to post by FortAnthem


And, of course, Giethner, Summers, and the rest of them are still around. Bet ole hillary will be president next time, too, whether anyone votes for her, or not.

Same bunch of criminals in both dem and repub administrations.

reply to post by Happy1


Amen to that. Things are never bad enough that they can't get just a little worse.

Lord. Imagine. Forced to ground under the Police State boot and Hillary's fat ass sitting on your head....

reply to post by FortAnthem


Thanks for keeping it "Fresh", as most folks have already forgotten
how screwed they truly are. At least for the time being.

For when "The Cock Crows Thrice, The Chickens will come Home to Roost.

S&F

Australian banks didn't buy any of these because our banking laws were too tight, so, no trouble with the banks.

reply to post by FortAnthem


I was just reading this article and found a couple of interesting points.

While billions of sorry souls are still hurting from worldwide banker-made disaster, Rubin and Summers didn’t do too badly. Rubin’s deregulation of banks had permitted the creation of a financial monstrosity called “Citigroup”. Within weeks of leaving office, Rubin was named director, then Chairman of Citigroup – which went bankrupt while managing to pay Rubin a total of $126 million.

AND

China signed – but got its pound of flesh in return. It opened its banking sector a crack in return for access and control of the US auto parts and other markets. (Swiftly, two million US jobs shifted to China.)

It's kind of amazing how someone always profits from a crisis.

reply to post by FortAnthem

Actually deregulation isnt the problem.

As a matter of fact, BIG business loves rules and regulations. It ensures that the smaller penniless start ups have a much smaller chance of competing since they dont have the $ or the structure to comply with the seemingly never ending laws.

The real problem is crony capitalism. Not the free market.

See, we dont have a free market in the US, nor anywhere else. We have crony capitalism or a an elite form of socialism/welfare.

If a BIG business fails, ESPECIALLY a bank, government will come running to their rescue at the expense of the tax payer or in the case of the "Federal Reserve's" bail outs, at the expense of our dollar's value.

In order to truly end the "problem", we need a real free market system, where these mega corporations, just like every other business, would be allowed to fail.

Once it was known that government would not bail them out, they would IMMEDIATELY stop any unnecessary risks/gambling.

reply to post by gladtobehere


You speak much truth. By bailing out "to big to fail" corporations we are effectively rewarding their bad behavior and with Americans letting it happen are essentially complicit in the whole thing.

Umm, many of us may have already known this but documents like these are very important because they establish the facts (not theories.) This helps to demonstrate how the elite bankers got control and can rape every nation without limit. It also paints a pretty bleak view of the future in my mind if this doesn't get enough light for their corruption to be fully exposed and the perpetrators brought to justice (no easy feat.)

If a revolution will come (and I do think it is inevitable, just a matter of what sparks it,) documents like these will be the boards and nails of their proverbial coffin.

I've always had respect for Greg Palast, a great journalist in my opinion. One of the few who really cares.

More proof of the criminals at work.

I am pasting some excellent documentaries on the financial crisis for those that have not already watched them.

Inside Job - Watch Online Free
www.filmsforaction.org...

The Warning - Watch Online Free
www.pbs.org...

Enron: The Smartest Guys in the Room - Watch Online - Rent
www.amazon.com...

Money, Power and Wall Street - Watch Online Free
www.pbs.org...

reply to post by gladtobehere


The problem is; most banking in the world has NOTHING to do with the free market. They are institutions that have been given the power by the government to make money out of nothing and charge their customers interest on it. They are a government sponsored monopoly through and through.

In most cases, I agree, there is too much regulations stifling business practices. Not in the banking and financial sectors though. In their case, no amount of regulations would be enough IMO.

Banksters and Wall Street have the power to vastly put the world economy at risk through financial instruments that amount to nothing more than casino gambling on a large scale with all of our money on the tables. They have no incentives against behaving recklessly with other people's money and they have the power and influence to fix the markets so that they turn up on top every time, leaving the rest of us holding all the losses after they get out of the market.

The stock market is supposed to put businessmen in touch with investors who both share an interest in the long term stability and profitability of a company. Instead, through the lack of any meaningful regulations, it has become a gambling casino in which everybody seeks to get in, make a quick profit, then get out while the gettin' is good, leaving the companies they invested in the worse for the wear. It is common practice for venture capitalists to buy up a company, take out loans against its assets, use those loans to pay themselves huge dividends then sell everything off, leaving the company debt ridden while they and their associates walk away with all the dough. The company goes under and hundreds of employees end up out of work.

In a properly regulated market, something like this could never happen and the parties responsible would end up in jail if they tried. Today, not only are these markets not regulated but, the government even lacks the ability to bring criminal charges for such blatant acts of theft.

The cause of the financial crisis was because of Clinton's end of Glass-Stegall. and government manipulation of mortgage derivatives, by fanny and freddy, while congressman where clearly aware of the situation said nothing to see here folks.

Oh my bad, them evil banksters !

Off with their stock options.

reply to post by neo96


They covered that in the article he posted....as well as this point...

Then Rubin took on another post: as key campaign benefactor to a young State Senator, Barack Obama. Only days after his election as President, Obama, at Rubin’s insistence, gave Summers the odd post of US “Economics Tsar” and made Geithner his Tsarina (that is, Secretary of Treasury). In 2010, Summers gave up his royalist robes to return to “consulting” for Citibank and other creatures of bank deregulation whose payments have raised Summers’ net worth by $31 million since the “end-game” memo.

That Obama would, at Robert Rubin’s demand, now choose Summers to run the Federal Reserve Board means that, unfortunately, we are far from the end of the game.

So i guess i don't really see your point, is this going to become another "Business and Banks" can't be bad because its a free market rant?

reply to post by Thorneblood

They covered that in the article he posted....as well as this point...

And ?

So i guess i don't really see your point, is this going to become another "Business and Banks" can't be bad because its a free market rant?

If I wanted to make a free market rant it would start like this:

Why do people constantly argue over fiat currency ?

In a free market fiat currency doesn't exist.

all to true and little Chelsea Clinton who is what 25? Is worth 15 million dollars through her conections to investment groups who were in the middle of the equiry and hedge funds traders that brought us down. thanks to her daddy see will be set for life.

reply to post by neo96


So the bankers are completely innocent?

I don't see anyone claiming the government didn't have their hands in this too...

"Business and Banks" can't be bad because it should be a free market rant?

And your right...i should worded that better..what alternative would you propose to a fiat currency?

The gold standard?

Greenspan Admits The Federal Reserve Is Above The Law

(If you can stand to watch it!)

Originally posted by FortAnthem

In a properly regulated market, something like this could never happen and the parties responsible would end up in jail if they tried. Today, not only are these markets not regulated but, the government even lacks the ability to bring criminal charges for such blatant acts of theft.

The problem is that they have defanged the SEC from being able to doing their job, all by design.
The SEC's office of Risk Management was gutted down to one person where he was able to turn the lights off at night. The SEC turned into essentially a lapdog rather than a watch dog.