Wednesday, April 13, 2011

Let Them Eat Cake

Let Them Eat Cake, the famous last words of Marie Antoinette, rings true regarding The Fed and the corrupt financial system it runs on behalf of the banksters that own America.

"Now, following an act of Congress that has forced the Fed to open its books from the bailout era, this unofficial budget is for the first time becoming at least partially a matter of public record. Staffers in the Senate and the House, whose queries about Fed spending have been rebuffed for nearly a century, are now poring over 21,000 transactions and discovering a host of outrages and lunacies in the "other" budget. It is as though someone sat down and made a list of every individual on earth who actually did not need emergency financial assistance from the United States government, and then handed them the keys to the public treasure. The Fed sent billions in bailout aid to banks in places like Mexico, Bahrain and Bavaria, billions more to a spate of Japanese car companies, more than $2 trillion in loans each to Citigroup and Morgan Stanley, and billions more to a string of lesser millionaires and billionaires with Cayman Islands addresses. "Our jaws are literally dropping as we're reading this," says Warren Gunnels, an aide to Sen. Bernie Sanders of Vermont. "Every one of these transactions is outrageous."

It get better...

"But if you want to get a true sense of what the "shadow budget" is all about, all you have to do is look closely at the taxpayer money handed over to a single company that goes by a seemingly innocuous name: Waterfall TALF Opportunity. At first glance, Waterfall's haul doesn't seem all that huge — just nine loans totaling some $220 million, made through a Fed bailout program. That doesn't seem like a whole lot, considering that Goldman Sachs alone received roughly $800 billion in loans from the Fed. But upon closer inspection, Waterfall TALF Opportunity boasts a couple of interesting names among its chief investors: Christy Mack and Susan Karches.

Christy is the wife of John Mack, the chairman of Morgan Stanley. Susan is the widow of Peter Karches, a close friend of the Macks who served as president of Morgan Stanley's investment-banking division. Neither woman appears to have any serious history in business, apart from a few philanthropic experiences. Yet the Federal Reserve handed them both low-interest loans of nearly a quarter of a billion dollars through a complicated bailout program that virtually guaranteed them millions in risk-free income."

While reading this,  one sees, as per the BRT article titled, This Sentence is False, an indirect connect to the days preceding the French Revolution whereby the ones in power lost the ability to lead and govern, thus causing the bourgeois to revolt and plunge the country into violence and chaos, something that could happen here if the system continues to break down as it has been doing for the past 10+ years with the end result of leaving the middle class destitute while the rich and powerful continue to live high off the hog courtesy of the last remaining MC monies flowing into the US Treasury via taxes paid to the IRS, the vilified entity controlled by the Fed, the cartel protected by government.

Seen above is the unfortunate Marie Antoinette, the queen who lost her head on October 16, 1793

Here's another take on the Fed titled Crony Capitalism from David Stockman, you know, the Voodoo Economics guy who worked for Ronnie Reagan. It seems he has found his senses big time and posted a cogent piece everyone should read concerning an out of control organization that is sending our once great nation toward the abyss of fiscal insolvency.

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