Secret Banking Cabal

And, now it’s mainstream.

I love the assumption that keeping extra food and water around is “crazy.”

Jan. 29 (Bloomberg) — The idea of secret banking cabals that control the country and global economy are a given among conspiracy theorists who stockpile ammo, bottled water and peanut butter. After this week’s congressional hearing into the bailout of American International Group Inc., you have to wonder if those folks are crazy after all.

Wednesday’s hearing described a secretive group deploying billions of dollars to favored banks, operating with little oversight by the public or elected officials.

So basically, what happened is these huge banks (both domestic and foreign) had billions of dollars in bad investments. Those investments were insured by AIG. When AIG was unable to pay off the insurance, the Federal Reserve stepped in and bought those bad insurance contracts for $30 billion. The banks received 100 cents on the dollar.

The result? Banks operate on the assumption that failure on their part will be subsidized by the US taxpayer.

The truth? The Federal Reserve’s reason for existing is supposedly to maintain economic stability in this country. The fact is that the Federal Reserve exists to protect the huge banks from failing and competing with each other. As long as the banks turn a profit, they can keep their money for themselves. When the banks fail, the Fed and it’s subsidiary, the federal government, will cover their losses. There’s no motivation for the banks to avoid risk.

The whole game is rigged.