The Secret That Will Destroy the World's Financial System

There's a secret out there.

A secret so incredible, so horrifying, so toxic that if the public ever heard about it, it would destroy the world's financial system.

bink's diary :: :: That sounds like a big claim.

Who's making it? Not some scary Chicken Littles in the Daily Kos diaries. Not some Doomer site. Not wacked-out gold bugs. Not Ron Paul.

This claim is being made by a consortium of the world's biggest and most powerful banks.

What's the secret they don't want you to know?

It all starts here:

In November of last year, the Bloomberg news organization sued the Federal Reserve bank of the United States. The goal of the suit was to force the Fed to disclose information on the alphabet soup of lending programs it created in 2008 to help prop up Wall St. banks:

Bloomberg News asked a U.S. court today to force the Federal Reserve to disclose securities the central bank is accepting on behalf of American taxpayers as collateral for $1.5 trillion of loans to banks.

The lawsuit is based on the U.S. Freedom of Information Act, which requires federal agencies to make government documents available to the press and the public, according to the complaint. The suit, filed in New York, doesn't seek money damages.

"The American taxpayer is entitled to know the risks, costs and methodology associated with the unprecedented government bailout of the U.S. financial industry," said Matthew Winkler, the editor-in-chief of Bloomberg News, a unit of New York-based Bloomberg LP, in an e-mail.

The suit sought to reveal which banks were getting which part of the $1.5 trillion dollars and what assets the banks were putting up as collateral for the loans.

The Federal Reserve fought the case and ...

They lost it:

The Federal Reserve must for the first time identify the companies in its emergency lending programs after losing a Freedom of Information Act lawsuit.

Manhattan Chief U.S. District Judge Loretta Preska ruled against the central bank yesterday, rejecting the argument that loan records aren’t covered by the law because their disclosure would harm borrowers’ competitive positions.

The Fed has refused to name the financial firms it lent to or disclose the amounts or the assets put up as collateral under 11 programs, most put in place during the deepest financial crisis since the Great Depression, saying that doing so might set off a run by depositors and unsettle shareholders. Bloomberg LP, the New York-based company majority-owned by Mayor Michael Bloomberg, sued on Nov. 7 on behalf of its Bloomberg News unit.

The Federal Reserve has to identify the companies to whom it gave the $1.5 trillion dollars and it has to list the assets used as collateral for the so-called "loans."

The Federal Reserve says that this might "unsettle shareholders."

OH MY GOD NO, NOT THE SHAREHOLDERS, NOT OUR PRECIOOUSSS SHAREHOLDERS!

Apparently, that is the standard these days.

And since when has the government felt obligated to protect the share prices of certain private businesses over others? Is that role in the Constitution somewhere?

Anyway, an industry group representing the biggest and most powerful banks on the globe, including British, French, Dutch and German as well as American banks, have issued a warning about the disclosure:

If you tell who got the $1.5 tril, you're gonna destroy the world financial system.

The secret is just that big.

(Note that I'm linking to Zero Hedge here, not because I endorse the editorial theme of the blog at all, but because they are the only place I could find that carries the original document in toto.)

The world might get destroyed.

But we've also got to have access to this information.

For the simple reason that, if we don't, we're going to see a repeat of this in a couple of years with even bigger numbers, bigger handouts from the Fed and the Treasury, bigger payouts to Wall St. executives and other insiders ...

And even bigger secrets that the public can never know.

http://www.dailykos.com/storyonly/2009/8/28/773537/-The-Secret-That-Will-Destroy-the-Worlds-Financial-System

It's shit like this that's makes me want to change from a Democrat to a Communist!

:grr:

www.ypsl.org




http://www.sp-usa.org/




:hi:

---

...but OUR money as well (in the form of deposits, 401k's & pensions).

By 'fantasy baseball' I mean betting on 'virtual' stuff. Stuff that does not exist, like derivatives of derivatives.

When they realized that they were betting on bets that were bet on bets and could NEVER untangle what was real from what was
unreal, the danger of a meltdown (we don't know who owns what or who owes what to who!!!!), they had to be bailed out by the one institution that still had SOME credibility - the Fed. No matter what anyone tells you, the Fed is ultimately backed by the military might of the US. The only remaining 'superpower' in this house of cards called the world economy.

Might makes Right (sarcasm).

The only way that they can keep the plates spinning is to hide the fact that they've been caught gambling with our money - and losing to welchers like Madoff & Sanford and others who shall not be named (too big to get caught). None of whom will pay their bets if they were to end up losing or being found out as crooks.

Where did all the money that was entrusted to Madoff/Sanford, et. al. go? Same place as those pallets of cash lost in Iraq. Into thin air.

I don't know if they can keep the con game going or not... for our sake I guess I hope so.

years. And of course, by then, we may be advancing from Iraq into Iran. Maybe this next time, we will see a war that brings us a gain net of oil? <Sigh>

But more likely, they will simply keep things going for three years. Those who believe in following what happens at the Bilderberg meetings say that the PTB want to see the Stock market go up to its previous 1999 and early 2000 record highs. By the end of three years hence, they will have gamed the rest of the 401 K and other pension monies. Then they will collapse it all over again.

On the other hand, with Geithner asking Congress to raise the debt ceiling (After it just got raised to over ten trillion!) maybe we are in for further hard times, starting in Sept or October of this year.

Let it out, let them collapse, then spend another 1.5 trillion on community and small businesses. I think it is just more of the failed ideology. They believe that we can't survive with a regulated market too, and we know it is actually the opposite.

The people who are "afraid" in Europe are the aristocracy. Sure, for them everything would collapse, because they see a fair market as the end of their life as they know it. I don't believe it will happen.

They have not improved their practices they just create another snake sale and continue as usual.....

Let them fail.....

We have plenty of Credit Unions that are doing well.

Credit Union Search

When I checked my CU, which everyone loves and thinks is doing great, it shows the Troubled Asset Ratio has doubled from last year. I was shocked.

http://banktracker.investigativereportingworkshop.org/credit-unions/


Bank Search
http://banktracker.investigativereportingworkshop.org/banks/

is the practice of taking interest, aka usury.

Any economic system based on usury must by definition grow by the amount of interest issued to stay functional. That is how we got into this problem of "grow or die" and then... meet the limits of growth and die.

or search by state

I have far too many reasons to list without writing a book, but I am of the mind whether we ever get access to "this" information, or any other information along the same line, or not, that there will be another bailout, and another and that there is not one thing "we" can do about it short of revolt against, not just government, but the corporations that functionally own our central government's elected representatives and bureaucracies all 8.5 million of them based out of W D C.

Everybody has a whore's sell out price, some more cheaply than others just like in the real world of prostitution, and the plain simple fact is our government insiders sold themselves for their individual sell out numbers whatever those were, and in consequence sold us out and down the metaphorical river.

I suppose many people will label me a pesimist and to tell the truth I won't argue the point, because for quite a while as everything got closer and closer to bottoming out, I decided that everything from the bottom must be up. How far up....I haven't a clue. All I really know is that the middle class, working poor, and the otherwise impoverished in this nation need REAL relief far and above the nickels and dimes the republican and democrat representatives have so far tossed us that is by far less that all the sacrifices we all have been forced to make as we continue to pay our taxes and bail out the rich with their bush rebates, banks, and many many of the failed and failing major corporations many among them that moved their businesses. lock, stock, and barrel to foreign lands and left their domestic citizen employees to root hog or die on the vine.

Just sayin...



:shrug:

don't fail to note I rant against right wing extremist and extremism as well.

I give praise where praise is due, and chastise wronging by wrong doers equally and in either case it makes not a whit who it is or which party they represent or if they represent no party at all.

Etc.

:eyes:

Forget the fact that he advocates for "the middle class, working poor, and the otherwise impoverished in this nation."

Just nail him to the cross for daring to criticize the corporatist Democrats that have sold us out just like Republicans have. :eyes:

The misuse of Democrat is a slur originated in the McCarthy era and a characteristic of posts by persons joining here with the intent of disrupting and typically receiving their pizza hot and fresh.

Grammatic profiling? Well, yes it is, of a sort.

-Hoot

:toast: It'll be ok, or not! :)

However as a strict political independent, I expect flak from every direction. Fortunately I'm a tuff ole bird that was finally resurected and reborn with "TWO" political wings that a great percent of the time keeps me flying on the straight and narrow. I'm not the perfect political animal but I never claimed to be even when I was a member of either one the two major parties or anyone of the other 151 splintered off parties. And yes....there are a total of 153 political parties:

http://en.wikipedia.org/wiki/List_of_political_parties_in_the_United_States

I became a political party of one and learned to view politics much like a kid's playground teeter totter. I do my best to stand as close to the fulcurm as necessary and have no fear whatsoever moving to the left or right on issues as I see fit in order to do my best to maintain political balance and point it out to whomever is interested and never ask anyone to either adopt or even share my viewpoints. Tis best from where I sit to let others do their own thinking, come to their own conclusions, and make their own determinations as is their equal right to do.

Another thing I learned is the futility of attmpting to impose political will upon others. Why should I try to dish out that which I reject.

The content of your post was dead on.
Welcome to DU.


NOW we have Your Children’s Money too !!!
And there is not a fucking thing you can do about it!
Now THIS is “Bi-Partisanship” !
Better get used to it!!
Hahahahahahahahaha!

thought police. Welcome to DU. :hi:

I hope you'll continue to speak your mind. The working class needs all the advocates it can get.

and welcome to DU! :hi:

I very much doubt that everybody has it. You can try to find if I have a sell out price, if you want.

"take over"?

the money men, & it's them who's "taking over".

it will be a corporation.

to get away from the pretty pieces of paper and plastic that we call "money" and go back to a system of barter, at least on a small scale. That's what we use in my neck of the woods--a LOT.

the "gift economy". Giving without expecting payback. Some call that alse "Karma yoga"... :)

In my humble brain, all economies are bubble based. They go up and they go down. Some ups and downs are just bigger than others. Looks like we are in for a big "down". The planet is over-crowded and we are abusing the gifts of the earth any way.

I think the longer we hold off the "down" the worse it will be.

I have always said, "Mother Nature will win".

The Global Banking and Financial System works, the parasites are screwed. We will be screwed as well for a time, but replacing this scam with an real currency system would reveal that there is plenty for all of us, so the world would be far better off.
:kick: & R

They will take their cue from Rove and just defy the courts.

...beyond the reach of mere governments.

over time that it was the fastest way to Communism.

He said he was all for free market economies, since they would eventually acheive the result he wanted.

We can't have the benefits of capitalism without the gov't regulations and restraints.

Otherwise, you get the people with the biggest army running the country.

I would settle for honest, regulated, competetive capitalism. Without the competition we have a Fascist economy, pure and simple. The wealthy and the stupid are taking control, thanks to the Bush Dynasty and Associates, and now the only way they can seem to stay in power is to eliminate large portions of the world population, and to try and stir up an ultra reicht-wing revolution within the US to keep the rest of us in line. We need a well-planned, orderly way to take these people OUT of power.

you don't have democracy anymore.

the government selects which corporations may do business in China, but is it just a matter of time before the corporations run their government?

i.e., FASCIST

The way that word is so broadly defined it could be applied to just about any capitalist country :eyes:

In capitalism the competing units are corporate states, wheras in fascism the competing units are state corporations. :)

a government that answers to the People rather than the Corporations. A Capitalist country does not have to be corporatist if the government is completely independent of the corporations.

That it was better (and less destructive) to be friends with organized crime families than the families of organized banking.

Big huge shame that Obama doesn't know what FDR meant by that.

means that the competing unit is totalitarian state against other states - that's what fascist corporativism means. For fascist ilk of fetisism the preferred way of competition is not by "unmanly" paperpushing and datajibling called monetary politics but through "beauty of war". Both ways of competition compete in destructivness and judging by the results so far, monetary politics beats the game of destruction.

I guess it doesn't get anymore basic than that.

Sounds good to me, let's get on with it. Aren't these guys the fuckers that caused the current mess with their reckless greed?

...we're blowing another bubble! Please don't scare the bubbles.... :woohoo:

a ground swell of public support for the break up of the "too big to fail" banks. Tuff luck boys.

Did you catch that? I haven't been around much lately.

Crawl up our asses with what they call your Credit Score?

What is good for us, should also be good for the Big Banks & Corporate America.

DrechTV upped my monthly fee, I missed the letter informing me. For 4 months............they were billing me higher.........when I called to put it on pause,they wouldn't & threatened to use my debit card # to remove the money from my bank act. ( As if I had something in it!) I immediately closed the act, owe them something over $100. and determined that I would pay them slooooowly, 10.00 a month.
Since I haven't been able to squeeze out even 10.00 they are now calling and THREATENING TO RUIN MY CREDIT!
( I'm so scared!)
I own my 26 year old car.I own my 120 year old house..............old & shaky BUT MINE! My property tax just went down $30.00
Impulse spending?splurges? ..........a distant memory of the past! ( 20 years)
Prior to 20 years ago I had friends who; we borrowed back & forth $1,000 with each other as needed........
Now I don't even get that much monthly to live on!

:grr:

It was about 2 months ago. I don't understand these systems and sometimes I had a hard time following him, but it seems that GS just sets itself up for the next big thing to bilk EVERYONE out of money. Everyone except themselves of course.

"money as debt". It's a great documentary explaining the mess we've gotten into IMHO. :hi:

Is it online? Netflix? Thanks!

What matters is not where it went, what matters is where it will come from and how and at what rate it will find its way back into real economy.

while we in America have a law that states that we have the right to obtain access to government records. President Obama specifically ordered that the law giving us the right to obtain access to government records should be obeyed in most circumstances. Considering that President Obama made that order, the fact that the Fed does not want to produce certain documents suggests that they contain information that would be damning to the Fed and to those who created the documents and made the decisions discussed in the documents. Since the documents contain the information on where the money went, and since the Fed is willing to resist not just an order of the president but also an order of a court to avoid producing the documents, we have the right to assume that the information in the documents is very troubling. We cannot vote intelligently unless we know what is in those documents. Americans have the right to know and the fact that the Fed is trying to prevent us from finding out is a sign of guilt.

If a suspect runs away from a crime seen, it may be assumed that the suspect may be guilty. The suspect can prove otherwise, but the authorities are entitled to assume guilt. That principle applies to evidence that is withheld in spite of an order of a court that it be produced.

In my opinion, here, the Fed will probably appeal. And then we will find out how much President Obama's promises about transparency are worth.

then maybe not spooking them is the right thing to do? at this point, the news is old hat, and won't affect the companies much, the Fed was just fighting for future use. but at the time, if the Fed loaned someone $100million and the news of that loan made the company crash, then where's the payback coming from?

Paulsen, Bush, Cheney each had a billion or two waiting for them.

:patriot:

when he said...

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."
Henry Ford

Don't start the revolution without me!

Its OUR MONEY not theirs

and the RAGE will be like a Fire that will burn so bright

It's all their money, the soil purpose of which is to steal the fruits of labour from the people (not to mention piracy of natural richness that we all are here to share) in the hands of the few banksters who create money (as debt) out of nothing.

All money belongs to it's creator, the creator of one ring to rule them all, the Eye of Sauron (the one at the top of the Pyramid) that hypnotises people into his serfdom... :)

"Permit me to issue and control the money of the nation and I care not who makes its laws." — Mayer Amsched Rothchild

K&R :yourock:

;)

I realized that Obama was merely the negotiated solution that Che Gueverra once spoke of.

When the populace in a Banana Republic is on the verge of revolt and has only hatred for the fascists in charge, get rid of that crowd of leaders and put in a nicer, sweeter talking person as the New Figure Head. Just don't do much by way of changing any policies.

But other countries?

A real victory for transparency and gladly rec'd.

Too bad it won't restore the equity that's already been stripped. Maybe this will be a larger story when the actual facts come out . . . or maybe they'll decide there's no percentage in telling the public their main purpose is to provide the wool for a seasonal fleecing.

on the condition that their names and the information about them would not be disclosed. Sorry, guys. Assuming that the Fed is subject to the Freedom of Information Act, contracts that promise unlawful consideration are not enforceable at least not as to the unlawful provisions. If the law requires the Fed to provide that information, too bad for the banks that got themselves into so much trouble trying to make fast money in a bad economy. The Bush years were a fool's paradise for those traders and banks. Welcome back to reality, guys. Please note, the public is not buying your sham economic recovery. When Americans have jobs, the economy will recover, and not until then.

President Obama needs to forget about the jobs and profits on Wall Street and start thinking about the jobs and money in the pockets of people on Main Street.

And in my opinion there is only one way to get jobs back on the Main Streets of America. That way is to revise the trade agreements to require fair competition with regard to wages paid to workers and adherence to high environmental standards. We should not have to accept imports from countries that underpay workers and treat them like slaves and/or countries that disregard the needs of the environment.

We now they print money out of thin air to "pay" for wars and keeps us under control. What do we do? nothing. We go to work everyday chasing the little green papers that the fuckers print.

knr!

Is Obama not buying the premise here, or is Obama just bought? (Does Obama even get it, or has he been got?) I'd like to give Obama the benefit of the doubt here and say that he is just not smart enough to get this, or too lazy to delve into it, or too indifferent to even care. Unfortunately, I don't believe any of those for a second.

So why, when it comes to investigating serious crimes, are we supposed to look to the future, but when it comes to presidential appointments, we're supposed to look to (and like) the pastholes who got us here?

Heads they win and tails you lose. Now go buy a lottery ticket and shut up.

this is just more proof that majority dems and repubs are the same sided of the coin. Both embrace the idea of corporations as a super citizen with special rights and privileges.

Dems and repubs require that ordinary citizens make medical records, insurance records, banking records available to employers. insurance companies, IRS, etc. However, when it comes to protecting our right to know how the government spends our tax dollars, all of the sudden a different set of rules apply.

Where there is torture, wall street crime, wire tapping, wars started for oil based on fabricated evidence and lies, our democratic leadership is no where to be found. But on the subject of banking and insurance companies - they've got their backs.

History will not be kind to democrats and republicans. They are equally at fault for the new fascist state emerging in the post Reagan empire.

There needs to be a real political party dedicated to diluting the power of corporations over public policy.