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The World’s Largest Money-Laundering Machine: The Federal Reserve + video
The World’s Largest Money-Laundering Machine: The Federal Reserve
Submitted by Charles Hugh Smith from Of Two Minds
The World’s Largest Money-Laundering Machine: The Federal Reserve
The Fed policy’s first-order effect is to issue hundreds of billions in “free money” to banks; the second-order effect is to destroy the rule of law in the U.S.
Let’s start with a few questions about the proper role of the Central State and Central Bank: why should they bail out private banks? The answer boils down to something like this: “If the private banks absorbed the losses that are rightly theirs in a capitalist system, they would implode. Since the State and Central Bank have enabled these private banks to infiltrate and dominate the nation’s financial system, that system is now hostage to these private ‘too big to fail’ banks.”
In other words, “capitalism” in America now means socializing losses and privatizing profits generated by State and Central Bank intervention. Imagine for a moment the “beauty” of this system for owners of private banks: in a truly socialized banking system, the taxpayers would absorb any losses, but the State would also benefit from any future bank-sector profits. In the U.S. system, the losses are socialized but the people draw no benefit; the profits flow to the top 1/10th of 1% private financiers.
This is the perfection of State-financier crony capitalism.
Let’s next ask why the Central State and Central Bank should subsidize and bail out the mortgage industry, a major component of private banking. Once again we find losses are neatly distributed to the citizenry while the profits all flow to private hands. More + video>>
