U.S. banking system headed for bankruptcy?

The SIV superfund bailout resembles the accounting fraud in Enron, and it’s liable to end just as badly for the banks . . . .  

 Jim Willie, “Deadly Dollar Confluence,” 11-8-07 

http://www.financialsense.com/fsu/editorials/willie/2007/1108.html

“The banking distress is nowhere near ended, steadily denied as almost fixed, yet every passing week it seems yet another new remedy bailout rescue package feature . . . . The recent Structured Investment Vehicle (SIV) superfund testifies to the breadth of rescues. This one smells to high heaven as an illicit balance sheet redemption, at inflated unrealistic prices to boot, for the specific benefit of connected insider Wall Street firms. The Citigroup, Merrill Lynch, and Morgan Stanley forced admission of losses is not a mere accounting issue, without cash being involved. They are gigantic investment losses that the cute SIV device could not avoid in hitting the balance sheets. All eyes have turned to balance sheet accounting gimmicks, otherwise called fraud. The truth might be that losses are twice what are admitted, maybe worse. . . . The total will inexorably march to $2 trillion, and that figure might be conservative. Do not expect foreigners to pick up that tab. It will be financed by the US$ printing press, weighing down the US Dollar.”

See also Charles Hughes Smith, “Empire of Debt I: The Great Unraveling Begins,” November 5, 2007 —
http://www.oftwominds.com/blognov07/empire-debt1.html

2 Responses

  1. The World has a problem.

    The Society has actually only one huge problem that has created with its own hands!.

    It is a purely economic problem because it relates to the issuing of money.

    The money-issuing is decided, controlled and managed by Private Entities and not by the democratically elected Governments. After centuries of counterfeiting, illegalities and Machiavellismes, these Private Entitles have now gone so far as to control and rule whole Nations, no more sovereign but slave to an economic and financial mechanism known as «seignorage» (with the addition of the even worse «fractional reserve» [banking system, n.d.A.]).

    Very often, too often, the politicians of every Nation, called to defend and protect the People that have democratically elected them, are corrupt and collaborate with these ruthless «money creators». In this field, the laws themselves are created at the advantage of the International Bankers. Other laws that could help the People free themselves from this slavery are changed, distorted or simply ignored.

    The current Banking System is based on a Disgraceful and Inhuman Fraud.
    This Fraud is called «Seignorage» [or «seigniorage» – n.d.A.] & «Fractional reserve» [banking system – n.d.A.].

    The information channels are manipulated and controlled by the economic power of Private International Bankers and no newspaper, TV or radio station will ever talk about «seignorage» and/or «fractional reserve». There have been Presidents and men known worldwide who died under the powerful and inexorable blows of these Supranational Entities.

    Lincoln and Kennedy for example, died after having issued money in the name of the People and for the People, trying to release Americans from the slavery of Central Banks, disguised as «public institutions». To spread information on this worldwide taboo and contribute to unmask these stranglers of individual and collective freedoms is EVERYBODY’s duty, a duty for EACH OF US. Search the Internet for keywords like «seignorage», «fractional reserve» and «public debt».

    Read alternative information; do NOT blindly trust mainstream information. Support the cause by spreading this leaflet and letting real information reach other people by means of the Internet, look for information free of any political ideology enslaved to the Power of International Bankers.

    18 July 2005 – sandropascucci@yahoo.it

  2. It’s interesting looking back on these articles that nailed the economic and banking (derivatives) collapse. Of course Ellen’s book, Web of Debt, did the same.

    I will just say here that the “stimulus-response” will be temporary. At some point either we will make the needed systemic monetary changes (from private to public issue), or additional financial stimuli will be needed, at growing taxpayer expense.

    It must end in systemic reform or collapse, or some combination of the two.

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