Filed under: Economics 1-0-Dumb, video | Tags: bail out, bailout, banks, barack obama, central bank, central bankers, central banking, civil liberty, Communism, corruption, dick durbin, economics, economy, federal reserve, fiat money, George W. Bush, inflation, Jimmy Carter, Joseph Stalin, Martin Friedman, Naomi Klein, No Logo, recession, Shock Doctrine, Socialism, Thomas Jefferson, video
She’s pretty but she’s missing the point
Naomi Klein is so impossibly misdirected. It is unfortunately so. I want to love her, for her to be my newest crush, but the gaping blind spot in her economic perspective scatters and shoos away any butterflies that might have fluttered in my stomach. Klein is able to see that the recent banker bailout initiated by the departing George W. Bush and enabled by the Democratic majority congress was the “greatest bank heist in monetary history.” She is able to see that this transfer of 12.8 trillion dollars of American public wealth into private, corporate banker hands is comparable only to the transfer of wealth overseen by Joseph Stalin in the fledgling communist Soviet Union. She is able to see that corporate interests, inspired by Milton Friedman economics, frequently take advantage of natural or staged disasters to put forth criminal, self-serving policy that the public would normally reject. She is able to see the writing on the wall but she is unable to see the author. She is able to see the crime but not the guilty criminal.
Naomi Klein proposes that the banking industry be reigned in using bureaucratic oversight and regulation. Is poor Naomi unaware the Central Bank of America, more commonly called the Federal Reserve, is a private institution that unconstitutionally prints the U.S. currency? That the private Federal Reserve regulates themselves, that our congress does not enjoy the privilege of even auditing this institution, never mind directing their policy, and that the Fed chairmen scoff at legislators who ask intrusive questions. Is Klein unaware that every banking regulator that works in the United States is directly paid by the bank they are responsible to inspect, not by American tax dollars? Is Klein not privy to the fact that the Federal Reserve was chartered into law, ushered into existence, by an illegal quorum of eleven legislators on midnight Christmas Eve 1913 while most of congress was away on holiday, rushed into legality such as the second Iraqi War, both Patriot Acts and the banker bailout? Ignorant that shock doctrine was used in both cases; after the financial panic of 1908, the private bankers of the proposed Federal Reserve were to save the U.S. economy from future collapses while in the smoldering rubble of the fallen New York World Trade Center towers, George W., the son, lead us back into war with Iraq and war on our civil liberties then pushed for the financial bailout? Why else would Naomi Klein not be able to assign blame on the criminals who have perpetrated as she says “the greatest bank heist in monetary history?”
I can only assume Naomi Klein is missing the most basic principles of central banking, fiat money and banker bailouts. The Federal Reserve, which is neither “federal” nor “reserves” anything besides their privilege to their secrecy, prints paper money for the United States economy. The congress issues government bonds, which promises future payment upon maturation, and sells these bonds to the Federal Reserve. The Federal Reserve, to pay for these bonds, print up fresh paper currency and gives that to the U.S. congress to spend. That paper, fiat money which represents no store of gold, silver, any precious mineral or intrinsic value. It is as legitimate as the paper found in a Monopoly board game. Although this paper money, freshly printed by private bankers cleverly called the “Federal Reserve,” is essentially worthless, represents no real store of wealth and is only legitimate because it is criminally enforced as legal tender by the government, this fiat paper money is owed back to the Federal Reserve plus interest upon the maturation of the government bonds they purchased from the U.S. Congress. The Federal Reserve keeps the United States in debt. When the news reporters mention the federal deficit, they are referring to the amount of money the taxpayers of United States of America owe to the Federal Reserve. Our congress, who is responsible for the federal government’s budget, is complacent to this criminal operation. The federal government in our modern day is a terribly-bloated, bureaucratic machine with countless organs, agencies, offices, positions, posts, boards, committees, et cetera, et cetera. Congress is able to fund this oversized monster which is our federal government by simply printing more bonds to sell to the Federal Reserve for some freshly printed money. One hand washes another, special interests are paid, congress is flush with cash money, the balance is placed on the American people’s tab and every person who has their wealth liquidated into U.S. dollars is quietly and invisibly robbed through inflation. Wealth is not created by the Federal Reserve, they create debt and the paper money which supposedly represents wealth actually represents American debt. Its value is depreciated every time a new paper bill is printed. This is exactly why this is the greatest heist: the Federal Reserve, which is in fact a private bank controlled by private bankers, printed 12.8 trillion dollars to give to the private bankers. Americans now owe 12.8 trillion plus the already existent deficit plus interest on the total principle back to the private bank which is the Federal Reserve. The crime was committed by smoke and mirror like any magic trick. 12.8 trillion was printed up and given to bankers, the American people owe 12.8 trillion back to the private bankers for printing the money to give the private bankers and to make matters worse, every dollar you keep in the bank or in your denim jeans or under your mattress is greatly depreciated in value and has lost enormous amount of purchasing power. The inflation that will soon rise in the United States will make people miss Jimmy Carter and a four-dollar gallon of gas. But bailouts have been standard operation procedure for the Federal Reserve throughout its ninety-six year history although this action never stabilizes the economy but spurs wild inflation, inspires investment bankers to abandon thrift and creates the boom-bust economic cycle. The Federal Reserve has never helped the United States avoid panics, recessions, busts or depressions. The Federal Reserve creates these things. By keeping interest artificially low, printing and flooding the market with cash, individuals and corporations spend more, invest more and most importantly; borrow more. The Federal Reserve can then raise interest rates and reduce the amount of money in circulation. Individuals and corporations will have less money, interest rates on loans will climb, industry will contract, unemployment will rise, and debtors will go into default or even bankruptcy. This creates a recession or even worse, a depression. If private individuals have control of a central bank, has access to the levers that control an economy and directly manipulates interest rates and inflation, these private individuals could consolidate the wealth of a nation, keep the people constantly in debt and control the politicians they print money for.
Naomi Klein was absolutely accurate in stating the recent banker bailout was “the greatest bank heist in monetary history.” It is absolutely true and will become more apparent with each passing day. Economists wonder if the U.S. dollar has been giving a death sentence, speculate when we the American people will feel the hyper-inflation usually reserved only for third world countries and failed states. But it is grossly disappointing when Klein still vouches for President Barack Obama although she calls his economic direction “streamlined with Bush” and acknowledges Obama has abandoned the anti-war movement, gay rights, civil rights and the rule of constitutional law. It is terribly disappointing when she speaks in these eloquent, cerebral phrases of Democrats and Republicans as if there really is a true left-right paradigm, as if she never heard of Jefferson and Jackson, the two founders of both the fallen modern parties who were also both staunch enemies of central banks. Disappointing she still supports President Obama the Democrat and completely fails to see the obvious Neofederalist one-party, divided only slightly between the two Neoconservative and Neoliberal branches, which is ruled by a corporatocracy. It is disappointing that Klein champions socialism and denounces capitalism while not realizing the Federal Reserve is both a collectivist mechanism and an essential institution for collectivist governments such as socialism or communism. If she is calling the banker bailout a “crime,” then why is Klein unable to see the criminal organization that perpetrated the crime? Why does she defend President Obama if he is now an “accomplish” to that “crime?” Why is she comfortable with a president who is surrounded by bankers, bankers whom Democratic congressional leaders are now saying “own Washington?” I just sincerely hope for Naomi Klein’s intellectual integrity that that cute, little outfit she is wearing in this video clip, with the cute denim jacket, beautiful skirt and stylish heels don’t have something like a Banana Republic tag on them. It is bad enough she is missing the biggest point economically with this recent banker bailout, but it would be completely incomprehensible if she, as the famed author of No Logo, was wearing clothing from the exploited third world and manufactured with slave labor.