This is No Recession...It's a Planned Demolition

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DrKrbyLuv's picture
DrKrbyLuv
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Posts: 1995
This is No Recession...It's a Planned Demolition

Article by Mike Whitney  (Full Article Link)

No one is fooled by the fireworks on Wall Street. Consumer confidence continues to plummet. Everyone knows things are bad. Everyone knows the media is lying. Credit is contracting; the economy's life's blood has slowed to a trickle. The economy is headed for a hard landing.

Bernanke has pulled out all the stops. He's lowered interest rates to zero, backstopped the entire financial system with $13 trillion, propped up insolvent financial institutions and monetized $1 trillion in mortgage-backed securities and US sovereign debt. Nothing has worked. Wages are falling, banks are cutting lines of credit, retirement savings have been slashed in half, and home equity losses continue to mount. Living standards can no longer be bandaged together with VISA or Diners Club cards.  


According to Bloomberg:

"Borrowing by U.S. consumers dropped in June for the fifth straight month as the unemployment rate rose, getting loans remained difficult and households put off major purchases. Consumer credit fell $10.3 billion, or 4.92 percent at an annual rate, to $2.5 trillion, according to a Federal Reserve report released today in Washington. Credit dropped by $5.38 billion in May, more than previously estimated. The series of declines is the longest since 1991. 

What a mess. The Fed has assumed near-dictatorial powers to fight a monster of its own making, and achieved nothing. The real economy is still dead in the water. Bernanke is not getting any traction from his zero-percent interest rates. His monetization program (QE) is just scaring off foreign creditors.

The Fed is abandoning the printing presses (presumably) because China told Geithner to stop printing money or they'd sell their US Treasuries. It's a wake-up call to Bernanke that the power is shifting from Washington to Beijing.  

That puts Bernanke in a pickle. If he stops printing; interest rates will skyrocket, stocks will crash and housing prices will tumble. But if he continues QE, China will dump their Treasuries and the greenback will vanish in a poof of smoke. Either way, the malaise in the credit markets will persist and personal consumption will continue to sputter.

Just like the planned demolition of the World Trade Center Buildings, the economy is being systematically demolished by the the same miscreants.

Unemployment is rising, wages are falling and credit is contracting. In other words, the system is working exactly as designed. All the money is flowing upwards to the gangsters at the top. Here's an excerpt from a recent Don Monkerud article that sums it all up:

"During eight years of the Bush Administration, the 400 richest Americans, who now own more than the bottom 150 million Americans, increased their net worth by $700 billion. In 2005, the top one percent claimed 22 percent of the national income, while the top ten percent took half of the total income, the largest share since 1928.


Over 40 percent of GNP comes from Fortune 500 companies. According to the World Institute for Development Economics Research, the 500 largest conglomerates in the U.S. "control over two-thirds of the business resources, employ two-thirds of the industrial workers, account for 60 percent of the sales, and collect over 70 percent of the profits."


... In 1955, IRS records indicated the 400 richest people in the country were worth an average $12.6 million, adjusted for inflation. In 2006, the 400 richest increased their average to $263 million, representing an epochal shift of wealth upward in the U.S." "Wealth Inequality destroys US Ideals"


Working people are not being crushed by accident, but according to plan. It is the way the system is supposed to work. Bernanke knows that sustained demand requires higher wages and a vital middle class. But what does he care. He's not a public servant. He works for the banks. That's why the Fed's monetary policies reflect the goals of the investor class. Bubblenomics is not the way to a strong/sustainable economy, but it is an effective tool for shifting wealth from one class to another. The Fed's job is to facilitate that objective, which is why the economy is headed for the rocks.


The free market is a sham to conceal the crimes of the rich. Read Taibbi. Read Marx. Karl, not Groucho.


The financial meltdown is the logical outcome of the Fed's monetary policies. That's why it's a mistake to call the current slump a "recession". It's not. It's a planned demolition.

JAG's picture
JAG
Status: Diamond Member (Offline)
Joined: Oct 26 2008
Posts: 2492
Re: This is No Recession...It's a Planned Demolition

Now thats a great title to a thread (and article)....you had me at "planned demolition". Thanks for the dig Larry.

Thomas Hedin's picture
Thomas Hedin
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Joined: Jan 28 2009
Posts: 815
Re: This is No Recession...It's a Planned Demolition

I think what we all need to realize that short of some large scale, completely off the charts natural disaster, it's impossible to have a recession, or a depression, naturally.  I cannot find anywhere in history where there was a ression due to natural forces, I can only find it where the banking systems reduced the money supply.

The only way we have a recession is when the banking system pulls back the money supply and this is why we the people need to pass laws allowing us to create our own money debt free and interest free, instead of being forced to use the banking systems money, that they only lend to us, at interest, of course.

The only issue that is of any importance in America today is our monetary system.  If we collectively continue to ignore the principles under which our debt based monetary system function, America shall be destroyed by the weight of an unpayable debt and interest load.  All other issue we face in America today are but mere reflections of a monetary system that is designed to steal from the producers and transfer all of the wealth to the non producers.  America's greatest days may lay ahead of us, but only if we begin to enter into honest and open discussion about the consequences of a debt based monetary system and what may be done fix it.

 

We have the tools available in legislation right now, today, the real question are you willing to put pressure on your elected represenatives to put debt free, wealth money into circulation.

 

DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: This is No Recession...It's a Planned Demolition

Thomas,

I agree that our monetary issue is the most important crisis of our lifetime.  The system is operating as it was designed to do, that is steal the wealth of the nation while enslaving the citizens under perpetual debt.

The international banking cartel has done this many times and to many nations.  You would think that by now, the scam would have been figured out and the perpetrators safely locked away.

There is absolutely no reason for federal taxes and there is absolutely no reason for a national debt.  Both are features of the central banking scheme which takes our bonds as collateral to issue our money.  Why in heaven's name don't we simply issue dollars instead of bonds?  That would remove the parasitic load of the international bankers.

I know that many don't seem to care.  I would say they have the right to remain ignorant of the scam but they don't, citizenship in a democracy comes with responsibility.  Imagine that we are enslaving unborn Americans to debt - and we don't have to.  

Our enemies are not in some far off desert, and they are not in Asia.  Our enemies are right here - in Washington and New York - the international banking cartel.  The good thing is that our solutions are easy to implement - the hard part is getting others to see.

Larry 

Sandman3369's picture
Sandman3369
Status: Bronze Member (Offline)
Joined: Dec 20 2008
Posts: 71
Re: This is No Recession...It's a Planned Demolition

This is the most beautiful and insidious part of their plan.... They rob us, things go downhill so deep and so fast.... That no one has time to care during the chaos and are happy to revive afterwards. Perhaps some sort of 'accident' syndrome. It would appear to me that the Founding Fathers may have actually known something after all. Thumbs down on the Fed...

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