Who’s In Charge Anyway?(Hint: it isn’t you).

  In my last blog I dealt with GMAC halting foreclosures in about half of US states. I mused at the time  why they were taking such drastic action and I wondered if their action might be the tip of a greater iceberg and in fact that has come to pass. It is becoming evident that our banking and financial system is systemically corrupt and has  allegedly engaged in deliberate fraud  in what has now been termed “fraudclosure”. My initial motivation in writing this blog was an honest and deliberate attempt to try to make sense of an economic and political system which seemed to be ever more divorced from the needs and desires of the American People. It was the bailout of Wall Street that finally clarified the issue to me. There are a lot of very smart people analyzing and dissecting this issue but I was  perplexed by the actions of our government which continually  poured money into the largest banks and corporations bailing out too big to fail institutions with borrowed  taxpayer money against the expressed will of the majority of  the American people.  Why did our president come to the aid of the banking and corporate interests who brought down the entire economic system, in effect rewarding the criminals for their crimes? Why have there been no subpoenas, no indictments, no investigations…no punishment for the perps? Wasn’t Barak supposed to change the culture in Washington? Barak was becoming as I stated, Bush in Blackface in one of my blogs? The president was different but the policies hadn’t changed. Why was it that that the policies of the last 3 or 4 presidents in regard to banking and finance seemed so similar? The dawn of my understanding has been a long time coming, if in fact my understanding is correct . Much of my quest to sort out the real factors behind the dismal events of the past 3 years began with a statement by James Carville some years ago in which he said:”I used to think there was reincarnation. I wanted to come back as the president or the pope or as a .400 baseball hitter. But now I want to come back as the bond market. You can intimidate everybody.” His quote stuck in my mind like an advertising jingle you can’t shake. I never forgot the quote which mystified me but in the past few months his  quote has begun to make sense. There is a reason for all these seemingly contradictory and destructive shocks to our democratic republic, to our representative form of government with it’s system of checks and balances. It was Lincoln who said we had a government of the people, by the people and for the people. Maybe in fact we did when Lincoln mouthed those patriotic words so beloved in civics textbooks. But no more. The power is not with the people. It is a government of the banks, by the banks and for the banks. The power has shifted almost entirely to the nations largest banks and the banking cartel that is the Federal Reserve. The Federal Reserve banking cartel controls the  allocation  of money, credit and debt  and with it the power of being able to issue debt and credit without any significant check on its power. This cartel has seized control of the government and the American people. The bond market controls who gets what money,what credit and what debt is issued, and of course what the cost of the money will be to each recipient, be it the federal government, corporations, states and municipalities all the way down to the debt slaves grubbing at the bottom of the pyramid, the American people. The bond system and the banking cartel are the three branches of government, The process began in 1913 with the establishment of the Federal Reserve System which was also the same year that the IRS was established, no mean coincidence. It has taken less than 100 years for this cartel to seize the country and the government.This seizure has been slow, steady and stealthy and below the radar. There were advantages accruing to the the nations economy by such a system which allocated capital in a growing nation following the World War. Factories were built, jobs were created  and the nation and the banks prospered. But with this money and power came a desire for more money and power and greed for more money and power and once this cartel had positioned its soldiers in the important governmental posts of Treasury and the financial regulatory bodies, the takeover was complete. The cartel wrote the rules, blocked governmental oversight, rewrote the tax system and invented ever more arcane and abstruse debt instruments , all of which served to increase their wealth and of course their power. What these people did not see and still do not see is that their greed and lack of attention to ethics  has come at a terrible cost not just to ordinary Americans but  ultimately to themselves. It has not occurred to these banksters that  their reprehensible behavior has carried with it, the seeds of their own destruction..
These TBTF banks do not create value or wealth. Zip. Nada. Their wealth derives from what they can suck out of the  wage slaves  below them who actually produce something of value. They can only grow if they can create ever more debt. Starve them of that ability and their bloated bodies will shrivel. With the exception of the out of control Federal  Corporate Military bureaucracy, finding willing suckers for this debt is becoming  ever more difficult. Their latest ploy to stay alive and be able to pay out ever more compensation has been to game the system  to receive money at virtually no cost from their brethren Frat brothers at the Fed which they trade and leverage in their own  ponzi casinos for their own benefit even as they are  technically insolvent, zombies hoisted by their own petard. Collapse is inevitable.What is in doubt is what form it will take and over what time span.

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About cal48koho

I was born in Montana and raised in a dozen Air Force SAC bases. I attended Holy Cross,West Point and UNC in Chapel Hill(MD"71). Army doc in the last years of the Viet Nam fiasco. My wife and I live in a log cabin I built in Jackson Hole in 1975 when we aren't on our Cal 48 yawl. I've done a dozen different jobs and retired from ER and Anesthesia in 2004. I've written magazine articles and am writing a Kunstleresque novel about life in a past Peak Oil world. We are living in a beautiful alpine setting where we hike and ski when we're not thinking about economics and spreading the implications of PO to anyone who will listen.
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