Lisa Simpson
Mar 3,2010
In: Finance

A Bundle of Problems – National Debt, Deficits, Bank Speculations and Downing Shutters on Monetization

A bundle of problems – National Debt, deficits, bank speculations and downing shutters on monetization.

There are a bundle of problems for America – national debt, deficits, bank speculations and downing shutters on monetization. Those walking in the corridors say something and do something else.

The credit crisis did not happen out of the blue – it was meant and planned to happen in this manner. It is difficult to swallow the argument that the Federal Reserve pushed down the interest rate to nearly zero and deluged the monetary system with cash and credit because they were stupid or not competent. They knew that the sub-prime loans did not belong to the triple A rankings but were triple B. They all were aware that the parceling of these bonds was a fraud. It was allowed to start off the credit crisis.
It is wrong to believe that only greed and stupidity drove the engine of destruction. Till only four years previously Alan Greenspan held the reins. Today it is Ben Bernanke; both men being luminaries in their field. They get reappointed and go along with the game at the best of Dark Powers of chaos.
The result is that the national debt is swelling. Dubai is said to be struggling with a debt problem of $100 billion. In reality it has gone underwater with three or four times the amount weighing it down. In the case of Dubai it is the British banks that will drown along with it.

Greece could not get any help from even Goldman Sachs. The Germans are reluctant to help although they knew from the start that Greece did not qualify to be part of the euro zone. Greece fighting with its back to the wall is demanding reparations from Germany; the latter had paid a sizeable amount to Greece in 1960 as compensation. The euro governments could do well by writing off Greece’s debts instead of subsidizing it.

Germans have wanted to come out of the euro with 71% reporting they are sick of carrying the rest on their backs with their surplus.

For the previous two months the dollar, helped by Goldman Sachs, JP Morgan Chase and Citigroup, who were well aware of the approaching Greek problem, has rallied although the insiders know that it will soon end. They were aware of the fact that IMF would declare another gold sale and this would lead to the Feds increasing the discount rate.

With Goldman controlling the Treasury and Morgan the Federal Reserve how was it possible for them not to know?