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Bernanke: More Heroin Please

But Charles Hugh Smith adds to the problem that I've outlined - and QE-anything isn't going to fix a damn thing because the problem is a rot in the middle of the banks' balance sheets, which can only be fixed by forcing them to eat it - and that will bankrupt them: Either there is due process of law or you have a kleptocracy/"banana republic" oligarchy. At present, that is the decision we face as a nation. If the banking Elites and their partners in the Central State (Fed and Treasury) are allowed to "win" and gut the property laws of the states, then the U.S.A. will be revealed as a kleptocracy/"banana republic" oligarchy. If state laws are upheld, then the "too big to fail" banks are insolvent and they will fail. Then the question of kleptocracy arises once again: will the banks be allowed to fail as per Classic Capitalism, that is, their owners and managers will have to absorb the losses of that bankruptcy/failure, or will the Central State use its powers to collect taxes and cover the private losses of the Bank/Financial Power Elites? Privatizing profits and socializing losses has been the entire game plan since the global house of cards collapsed in 2008. It's decision time, citizens. Either the banks/Central State "win" and we are a kleptocracy/ "banana republic," or they lose and the U.S. mortgage/ banking sector implodes and is either formally socialized (i.e. owned lock, stock and barrel by the Central State) or rebuilt from scratch without big banks, Federal guarantees and the Fed's incestuous interventions. ("We create the credit that enables the mortgage, you issue the mortgage, and then we buy the mortgage.") There is no "fix" or half-measure that can patch this over now. Yep.

1 Comments in Response to

Comment by David McElroy
Entered on:

What did you expect from corporate fascists? They would rather kill millions of us than give up their ill-gotten loot to feed and house their victims. Older people paid their dues for Social Security and Medicare, but they were defrauded! The only difference between paying for Social Security and a private retirement program is that we let politicians control the funds! We've been robbed! The IRA's and 401K's are next. Pirates are commanding the ship of state, and we're just galley slaves! Let's mutiny! Live free or die!

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