“The too big to fail banks are now much, much larger than they were the last time they caused so much trouble. The six largest banks in the United States have gotten 37 percent larger over the past five years. Meanwhile, 1,400 smaller banks have disappeared from the banking industry during that time. What this means is that the health of JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley is more critical to the U.S. economy than ever before. If they were “too big to fail” back in 2008, then now they must be “too colossal to collapse”. Without these banks, we do not have an economy. The six largest banks control 67 percent of all U.S. banking assets, and Bank of America accounted for about a third of all business loans by itself last year. Our entire economy is based on credit, and these giant banks are at the very core of our system of credit. If these banks were to collapse, a brutal economic depression would be guaranteed. Unfortunately, as you will see later in this article, these banks did not learn anything from 2008 and are being exceedingly reckless. They are counting on the rest of us bailing them out if something goes wrong, but that might not happen next time around.”
“While we know that the Fed will be forced to taper in the short-term as it desperately avoids the ‘appearance’ of outright monetization that a falling deficit will create, Marc Faber sums up the endgame perfectly in this clip: “I don’t think they will come to their senses for the simple reason that insane people don’t realize that they are insane.” Faber adds, “they think they’re doing a great job,” and in fact they believe – in general – that “if anything, we need to do more, not less.” The ‘forced-taper-to-plunge-to-untaper’ progression means it’s going to get worse; as Faber notes, QE/printing will continued indefinitely “until the system breaks down.” Having printed this much money with such dismal results, Faber concludes, “the Fed is completely clueless.”"
Via Zero Hedge
“Are the big banks really as powerful as some people say that they are? Do they really control the global economy? If y0u asked most people, they would tell you that governments control the global economy. But the campaigns of our politicians are funded by the ultra-wealthy, the big banks and the large corporations that they control. Others would tell you that the Federal Reserve and the rest of the central banks around the world control the global economy. But the truth is that the Federal Reserve was established by the bankers and for the benefit of the bankers. As you will see below, at the very core of the global economy there exists a “super-entity” of financial institutions that control an almost unimaginable amount of wealth and power. These financial institutions and the ultra-wealthy individuals behind them are really the ones that are pulling all the strings. In this world money equals power, and the borrower is the servant of the lender. When you follow the pyramid all the way to the top, it begins to become very clear who really is in control.”
“Katie Barnett of McArthur came home a few weeks ago to find everything in the house gone. She eventually discovered that First National bank mistakenly foreclosed the wrong house — but kept her stuff. Not only did they clear everything out like the Grinch, but they changed the locks. Their actual foreclosure target had been the house across the street.
This matters not to the bank president who responded to her $18,000 estimate for wrongfully stolen goods with a firm:”
We’re not paying you retail here, that’s just the way it is.
Via Activist Post
“It may be ironic that one of the best and most comprehensive critiques of central bank policy comes from none other than Raghuram Rajan: a visiting professor for the World Bank, Federal Reserve Board, and Swedish Parliamentary Commission, he is the former chief economist of the International Monetary Fund, and currently the chief economic adviser to the government of India. Then again it should not be ironic: Rajan, as the ultimate insider in the dark corridors of the centrally planned New Normal, really gets it, unlike the vast majority of his ivory tower economist peers.
Already a recognized authority on these pages as one of the very few people who understands how shadow banking operates, we were happy to read his recent BIS speech “A step in the dark: unconventional monetary policy after the crisis”, which is must read for all Congressmen (and for everyone else) ahead of tomorrow’s appearance by Bernanke on the Hill for the first round of hiw Humphrey Hawkins presentation: it is a walk through for everything that central banks may (and are) wrong about although being part of the system, Rajan’s diplomatic finesse lays it out in far more politically correct terms.”
Via Zero Hedge
“I suppose the first question is; what does it mean that we have the “world’s reserve currency”? At the end of WWII the allies met at Bretton Woods and decided to use the US dollar as the official world currency and that it would be backed by gold. All worldwide trade would be priced in dollars and settled in dollars. Food, energy (oil), etc from around the world would be priced and paid for in USD. New York became the financial center for all world trade.
Fast-forward to President Nixon in 1971 and the USD was cut loose from the gold standard due to OPEC oil imports and a growing imbalance of trade that was causing gold to flow out of the US in large amounts.”
Via Alt Market
Basel III: How The Bank For International Settlements Is Going To Help Bring Down The Global Economy
“A new set of regulations that most people have never even heard of that was developed by an immensely powerful central banking organization that most people do not even know exists is going to have a dramatic affect on the global financial system over the next several years. The new set of regulations is known as “Basel III”, and it was developed by the Bank for International Settlements. The Bank for International Settlements has been called “the central bank for central banks”, and it is headquartered in Basel, Switzerland. 58 major central banks (including the Federal Reserve) belong to the Bank for International Settlements, and the decisions made in Basel often have more of an impact on the direction of the global economy than anything the president of the United States or the U.S. Congress are doing. All you have to do is to look back at the last financial crisis to see an example of this. Basel II and Basel 2.5 played a major role in precipitating the subprime mortgage meltdown. Now a new set of regulations known as “Basel III” are being rolled out. The implementation of these new regulations is beginning this year, and they will be completely phased in by 2019. These new regulations dramatically increase capital requirements and significantly restrict the use of leverage. Those certainly sound like good goals, the problem is that the entire global financial system is based on credit at this point, and these new regulations are going to substantially reduce the flow of credit. The only way that the giant debt bubble that we are all living in can continue to persist is if it continues to expand. By restricting the flow of credit, these new regulations threaten to burst the debt bubble and bring down the entire global economy.”
“Is the coming financial collapse going to be inflationary or deflationary? Are we headed for rampant inflation or crippling deflation? This is a subject that is hotly debated by economists all over the country. Some insist that the wild money printing that the Federal Reserve is doing combined with out of control government spending will eventually result in hyperinflation. Others point to all of the deflationary factors in our economy and argue that we will experience tremendous deflation when the bubble economy that we are currently living in bursts. So what is the truth? Well, for the reasons listed below, I believe that we will see both. The next major financial panic will cause a substantial deflationary wave first, and after that we will see unprecedented inflation as the central bankers and our politicians respond to the financial crisis. This will happen so quickly that many will get “financial whiplash” as they try to figure out what to do with their money. We are moving toward a time of extreme financial instability, and different strategies will be called for at different times.”
“As more and more countries within the European Union struggle economically, the euro – the union’s common currency – becomes more embattled, with its founder now even predicting its demise.
German Finance Minister Oskar Lafontaine, who was responsible the euro’s development and launch, is now calling for the end of the single currency in order to let southern Europe recover. He says if not, the current fiscal course is “leading to disaster.”
“The economic situation is worsening from month to month, and unemployment has reached a level that puts democratic structures ever more in doubt,” he said, according to the Telegraph, one of Britain’s largest dailies.
“The Germans have not yet realized that southern Europe, including France, will be forced by their current misery to fight back against German hegemony sooner or later,” he said, adding that much of the current fiscal crisis has come in large part from Germany’s squeeze on wages, in order to gain export share.”
Via Natural News
“Obviously this is a colloquial “definition” of insanity. However, at the very least it is an unequivocal demonstration of abject stupidity. Choosing to repeat failure is utterly indefensible behavior.
What do we see with our politicians, bankers, economists, and media talking-heads? Bludgeon your way through all of the obfuscation; and we see that most of our economic problems are derived directly from two, failed policies: excessive money-printing and excessive debt.
Yet what are the only two “solutions” for these problems being proposed by Western governments (and their apologists in the Corporate Media) today? Even more-extreme money-printing, and even more-extreme debt-creation. Putting out the fire with gasoline. Insanity.
Has anyone actually paid attention to any of the so-called sovereign “bail-outs” which have occurred over the past five years? In every instance it has involved lending vast sums of money to hopelessly insolvent governments.
Supposed I owe $10,000, but require a “bail-out” because I can’t service this debt; and my Rescuer lends me another $5,000. Please explain to me how I’ve been “bailed out” when I now owe $15,000? Obviously if I couldn’t make payments on my debt when I owed $10,000; it’s mathematically impossible to do so when I now owe $15,000.”
Via Alt Market