Banksters Don’t Like Haircuts and The Statist Elites Want to Protect Them

In the world of finance, when a lender has to accept that a loan will not be paid back,  the lender then must write the loan off as a loss. This is called taking a “haircut”.  So, it’s understandable that the banksters don’t like haircuts. When the potential haircut is very big, the banksters panic and run to their friends, the central bankers, looking to get bailed out. Since the central banks are owned by the banksters they are only too eager to help. The central bankers then turn to the political elites and the play the FEAR CARD.  The FEAR CARD says in big bold letters that if the banksters are not bailed out immediately, the entire banking system will collapse and their economies will collapse with them and there will be chaos. (Think Paulson, Geithner, Bush and 2008.)

Now, the thing to understand is that the FEAR CARD does not lie. Without the bailouts, the banking system would collapse, the economies would collapse and, there would be chaos. But, my friends, that is exactly what should have been allowed to happen. If we had forced the banksters to take their haircut, we would have went through a couple of tough years; but we would now be back on the road to recovery. This is what Iceland did and they are now doing fine.  Instead, the US and European countries came to the rescue of the banksters. How has that worked out? Not so good.

Europe is much worse off than the US, which I’ll explain in a  moment. The world’s central bankers gathered in Poland over the last several to try to figure out how they are going to keep the European economy afloat and their biggest problem right now is, of course, the basket case that is Greece. Please watch this video that borrowed from Grant Davies of the What We Think and Why blog. I’m sure you will enjoy it and it will help to understand why the central banker and the banksters are in such a tizzy.

It should be clear to any rational person that bailing out Greece one more time is buying them no more than a few months abt best. There is no way that Greece will ever ba able to pay off their debts. The Greeks have been rioting in the streets for months due to the austerity programs their government has already imposed and even if they can avoid civil war all the austerity and taxing will be to no avail because their economy keeps shrinking with each round of austerity. In the end, Greece will have to default and will have to exit the European Union and return to their own currency.

So, if the Greek default is inevitable and it’s such a small part of the European economy, why are the central banks and the political elites driving themselves crazy trying to save Greece for a little while longer? The answer is because Portugal, Ireland, Italy and Spain are all in serious trouble as well. and if they see that the banksters took a haircut for Greece, they will want the banksters to take a haircut for them, as well.  And, that will bring down the European Union house of cards, which in turn, will bring about a world-wide financial crisis. Someone once said that if something is inevitable, it will happen.

The question that can’t be avoided is: Who is at fault for this pending disaster? Is it purely the fault of the banksters and the central banks? Yesterday, at Silvefiddle’s Western Hero blog, a regular liberal commenter there, that goes by the handle Jersey McJones, left this comment:

“If Greece and other unstable economies collapse, Goldman Sachs and their international partners in crime would suffer catastrophic losses, and we can’t have that!”

Well, at least now you can see who and what caused all the
trouble over there – and it wasn’t “European socialism!” LOL!

Folks, I have to admit that when I read Jersey’s comment that socialism wasn’t at fault, I did Laugh Out Loud (LOL). Of course socialism is as much at fault as the banksters. The “command and control” governments have been in bed with the banksters for ever!  The command and control nanny states have been paying for their programs, in large part, with borrowed money and the bankster have been more than happy to supply the credit. Banks thrive on credit. The debts have been building and building to the point, as we see with Greece, that the life is being strangled out of the wealth producing sector and they can no longer support the nanny states and the nanny states can no longer support the banksters.

So, the party is almost over for the European Union and the Euro. The US is in a little better shape but is racing down the same path. Greece is a lost cause. But if the rest of Europe can keep the game going long enough, The US, in theory, does have a chance to save itself from the same fate as Greece and eventually Europe.

The solution to our woes can be simply stated. We must phase out the command and control nanny form of government and we must put an end to allowing the banksters to control our monetary system. Easier said than done, right? Politics being what they are, we can not even hope to start the reforming until after the 2012 elections and then, only we if elect enough of the right people who know what must be done. And, even if we elect enough of the right people, the reforms wont have a chance to work unless these new leaders can convince the masses that their nanny programs must be phased out.  Failing that, we will surely follow Europe over the cliff and chaos will ensue.

Well, that’s what I’m thinking. What are your thoughts?


25 thoughts on “Banksters Don’t Like Haircuts and The Statist Elites Want to Protect Them

  1. Well done JIm. We are pouring Billions via the IMF to the Socialists. The PIGS cannot print their own miney, and we can. So we borrow from ourselves to give to them. Wait until the inflation starts. We will be carrying dollars in wheel barrows. One only has to look at past histories of failed regimes.

  2. Here’s where the irony kicks in. America is 14.whatever TRILLION dollars in debt. Our debt makes European debt look like a joke. They’re positively flush compared to us. Did you hear the guy, they were talking about countries tanking with debts that weren’t over ONE Trillion.

    Why is America considered so much more sound despite our huge debt load and large deficits? Because our free market (what’s left of it) economy is considered strong and productive. We have the potential to grow ourselves out of the problem. The irony is that the only reason we are considered to have a fighting chance is that we have a strong economy based on free market principles, and we have an administration (and a supposed world-wide government at the UN) that weakens our free market economy as much as possible. The one thing that is keeping us from already being Greece is suffering an onslaught of regulation, taxation, and demagoguery that is crippling it.

  3. Awesome post, Jim. That video is priceless…(reminded me of Laurel and Hardy “Who’s on First” routine.)

    I don’t mean to wish disaster on anyone, but the EU should fail. It was a ridiculous idea in the first place….but easy to see that the U.S. has been doing the same thing by flooding money into the states here. Both of these policies, from my point of view, insane. But they didn’t ask here we are.

    As for putting the banksters out of business? I would love to see that happen, but cannot find the keys for solving that problem. The easy answer is…stop borrowing money from them. Bit late for that I guess. Duh. I wonder if the next Republican can or will even begin to get there…especially since the banksters are going to hold our feet to the fire no matter who gets the Presidency. We’re waiting with bated breath out here…..

    One other thing…if someone doesn’t kill the GREEN MACHINE and fast…we will never get out from under this debt.

  4. Thanks for the bump!

    Pat is correct in mentioning that our “fundamentals” are much better than anyone else in the world, but our politicians seem to be working overtime to destroy that, too.

    I agree that a collapse is what is needed. It would be painful in the short run, but we’d all come out better on the other side, except for the banksters. But the smart and industrious ones would also pick back up and rebuild.

    We are propping up a rotten edifice.

  5. Liquidating the debt is the only way to move forward. It’s ironic that a little nation like Iceland could lead the way.

    Oh, btw, the banksters “created” socialism and profit handsomely for it. This is a point that escapes most conservatives. What socialism does is concentrate money in a pool that make it much easier for these large central banks to control. Also, who benefits from the food stamp program? JP Morgan, the same bunch that gave the Soviet Union its’ first million bucks in 1918.

    What if the banksters want these economies collapse? By collapsing, the middle class and the the competitors to the Elites are wiped out, leaving the banksters all the power. Oh, you didn’t know that they have control of every industry sector, including defense? Ron Paul is accused of being weak on defense, but he realizes the connection between these banksters and the defense dept. is deeper and darker than any of us want to imagine.

    Trace the money backward, and you see that these cartels would be impossible without the fiat money from the banksters own money machine. It could be that they aren’t ready to pull the plug and are using bailouts to buy more time until their next S.P.E.C.T.R.E meeting.
    Jefferson said paper money is a ghost of real money.
    Bottom line: The love of money really is the root of all evil.

  6. It is for sure that any road to recovery and then fixing things in a more permanent path cannot start until after 2012. But even then, it is not enough to beat Obama for the White House but to also take 4 more senate seats.

    Once that is done, it will depend on the guts of those in control to face the moochers of America. They hold 49% of the votes. And we all know about the guts of politicians!

    1. Yep. We have to control all three branches if government. Then have to get government out of the way, including corporate tax reductions, so the private sector can do their thing. Only then can we start to phase out the nanny state.

  7. Jersey boy is about as thick as liberals come, if it wasn’t socialism, then what did Greece spend all that money on, if it wasn’t cradle-to-grave welfare.

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