Sometimes Much Is Not Needed to be Said.

Since last September, the Fed has extended its balance sheet by over a trillion dollars and has conducted nearly $9 Trillion dollars in “off balance sheet” transactions. Just so you understand that is about $30,000 for every man woman and child in the US, and we are on the hook for that amount. Sen. Grayson inquires to the Inspector General of the Fed where did that money go and who was the recipients of these transactions. Here is the video of that exchange. If you do not believe the banksters aren’t fleecing America unchecked, you only need to watch this 5 minute clip!



Finally, Some of Us are Catching On

By a more than three-to-one margin on Tuesday, communities voting on whether to support the creation of a public bank in Vermont approved the idea, calling for the state legislature to establish such a bank and urging passage of legislation designed to begin its implementation.

In a show of direct democracy that also exposed the citizenry’s desire for a more localized and responsible banking system, fifteen of nineteen towns passed the resolution during ‘Town Meeting Day’— an annual event in which voters choose local officials, approve municipal budgets, and make their voices heard on a number of measures put before local residents for approval.

The specific proposal under consideration, Senate Bill 204, would turn an existing agency, the Vermont Economic Development Authority, into a public bank that would accept deposits and issue loans for in-state projects. Currently, the only state in the U.S. to maintain a public state bank is North Dakota. However, since the financial downturn of 2008, other states have looked into replicating the North Dakota model as a way to buck Wall Street while taking more control of state and local finances.

Voicing his support of the measure ahead of Tuesday’s vote, Gary Murphy, a resident of South Ryegate, one of the towns that subsequently approved the measure, explained the thinking behind the plan this way in a letter to the local Times-Argus:

Senate bill 204 would expand the Vermont Economic Development Authority to become a state bank and would start out by depositing 10 percent of Vermont’s unrestricted money into the state bank. The bank would be able to leverage this money by means available only to banks to bolster the economy of the state and cut down on the interest payments and fees that are presently paid to out-of-state financial institutions and other entities. The bank would not engage in retail banking and would not compete with community banks; it would work with community banks to maintain their viability and expand their ability to help create better economic outcomes for Vermonters by partnering with them in projects they would not be able to engage in on their own.

Presently, large public projects are, to a large extent, funded by bonding and other private investment which requires the state to pay interest and fees that often do not get recycled into the local economy. Bond sales are managed by Wall Street firms, which seem to rig everything they can to further enrich themselves. In addition to the fees that they charge for this service, it is possible that they are rigging the process to divert funds that would otherwise be available to the state into their own pockets. While the cost of bonding is relatively cheap now, it will likely increase in the next few years if not sooner and the bond market could dry up. Creating a state bank now and growing it could put us in a position where we can substantially lessen the need to float bonds to fund large public projects.

According to Vermont Public Radio, unofficial results on Wednesday showed the following towns had approved the resolution: Bakersfield, Craftsbury, Enosburg, Marshfield, Montgomery, Montpelier Plainfield, Putney, Randolph, Rochester, Royalton, Ryegate, Tunbridge, Warren, and Waitsfield. The four towns that voted down the measure were: Marlboro, Barnet and Fayston and Greensboro.

North Dakota has had a state bank since 1919. Eric Hardmeyer, chief executive officer of the Bank of North Dakota, said he’s heard from 30 to 40 states asking the same thing: How does the only state-owned bank in the U.S. work? The financial institution, which opened in 1919 to help North Dakota farmers, has $5 billion in assets and contributed about $340 million in earnings to state coffers in the 12 years through mid-2009.

BND lending

Lawmakers in other states are modeling proposals on the Bismarck bank as activists protest bailouts for JPMorgan Chase & Co. (JPM) and other financial giants while their customers struggle with foreclosures and unemployment. Supporters say state-run banks, whose deposit base would include tax revenue and other government funds, would have greater control to develop socially minded lending programs favoring average Americans.

“Because of the Occupy Wall Street movement, there is much more of an interest to put in place state-owned banks to serve the public interest,” Marc Armstrong, the executive director of the Sonoma, California-based Public Banking Institute, said in a telephone interview.

“The benefit to commercial businesses is they receive affordable low-cost loans, including some as low as 1 percent per year,” Armstrong said. “The benefit to the state’s public is a more affordable and competitive rate for student loans and home mortgages.”

The Bank of North Dakota offers below-market lending rates as part of a program for beginning farmers. The DEAL loan, which supports students in college, is one of the most competitive alternative loans in the nation. North Dakota students or those who attend school in ND pay zero fees, have the option of a fixed interest rate of 5.72% APR or a variable interest rate of 1.74% APR effective January 1, 2014 and can count on quality local customer service. Variable rates can change quarterly and may increase. Rate will never exceed 10%.

BND by statute can do anything any other bank can do, unless restricted by statute. Mostly by practice BND does not make direct loans. However, legislative action has given express lending authority to BND for:

  • The purchase or acquisition of bank stock or the formation of a bank holding company.
  • The acquisition or refinancing of farm real estate by qualified individuals.
  • Assistance with post-secondary educational costs (i.e., student loans).
  • Originate home loans where loans are not readily available

All other lending by BND is through participation with a lead financial institution. This lead lender can be any qualified financial institution – most notably a bank, savings and loan, credit union or Farm Credit Services.



‘Bottom-Line Driven’

“We have a specific mission that we’re trying to achieve that’s not necessarily bottom-line driven,” Hardmeyer said.  Another difference is that deposits in most conventional commercial banks are guaranteed by the Federal Deposit Insurance Corp., while the North Dakota bank’s deposits are backed by the state.

Lawmakers in 13 states, including Massachusetts and California, introduced legislation this year that would create a state-run bank or study the notion, according to the Public Banking Institute, a non-partisan group backing the idea.

Financial Crisis

“As the financial crisis deepened and there are liquidity issues around the country, our model was looked at a little bit deeper than it ever had been before,” said Hardmeyer, who may be the only bank president in the U.S. who’s also a state employee. “It has been overwhelming at times in terms of the response.”

The U.S. banking industry opposes the idea and is lobbying against it, saying a state-run bank would compete with commercial banks for business and politicize a state’s lending decisions.  “A state-owned bank? Why don’t we just re-label the state capitols the Kremlin?” Camden Fine, president of the Independent Community Bankers of America, a Washington-based trade group that represents more than 5,000 community banks, said in a telephone interview.  “It’s a socialistic idea,” Fine said. “If you get a state-owned bank that is allocating credit, it can slide very quickly into a situation where those in favor get credit and those not in favor don’t get credit.”

Increase Jobs

Arizona Representative John Fillmore, a Republican from Apache Junction who has introduced legislation to create the Bank of Arizona, said he views it as a way his state could increase jobs while bolstering its treasury.

“We would have a bank, just like a regular bank that you see out there, it would have savings accounts and checking accounts,” Fillmore said in a telephone interview. “But its main function would be to give support to the state and to other banks within the state.”

Efforts to pursue the idea have gotten off to a rocky start in Massachusetts and California. In the Bay State, where legislation was introduced to create a Bank of Massachusetts, a commission said the bank would cost $3.6 billion to start and may expose public funds to “unacceptably high risk.”

In California, lawmakers in September agreed to set up a task force to study the idea of a “California Investment Trust” to boost economic development by easing access to credit for California-based businesses, according to the legislative text. Governor Jerry Brown, a 73-year-old Democrat, vetoed the bill. Brown said he didn’t want to create another “blue ribbon” taskforce and suggested the Legislature’s banking committees look at the idea.

Commercial Banks

The California Bankers Association, a Sacramento-based trade group, lobbied against the proposal, saying a state-owned bank would crowd out commercial banks.

“A state bank has the ability to use the enormous resources of the state to nearly monopolize the market and as a result, create an unfair advantage over commercial banks,” Alex Alanis, the association’s vice president of state government relations, said in a May letter to Assembly member Ben Hueso, who offered the bill.  Hueso, a Democrat from San Diego, said the proposal is aimed at creating a wholesale bank that would lend through commercial banks to businesses and consumers.

Economic Recovery

State-run banks are more likely to be more flexible in their lending relationships with consumers and less likely to engage in proprietary trading and other risky activities by large commercial banks.

North Dakota Economy was ranked No. #1 in economic development in 2010-2012. North Dakota has weathered the Great Recession with a boom in natural resources, particularly a boom in oil extraction from the Bakken formation, which lies beneath the western part of the state. The development has driven strong job and population growth, and low unemployment. It was largely supported by the state bank.

It is not surprising that commercial banking lobbyist would oppose the “state bank idea”. If you have watched how these commercial banks and lending institutions have dealt their hands in places like Detroit or Cleveland and watched as they have extracted huge amounts of public wealth out of the system, it is clear they have no interest in having State Banks pop up.  Why it’s Un-American right?


Reality is it is about as Un-American as the Boston Tea Party, the real Boston Tea Party. If you live in a state seriously considering starting a state bank, get yourself educated to what that means. We think the more you understand the more you will understand the freedom from banksters it represents.

Student Loans-An Engineered Social Trap?

When we started to do this article, we were just going to report on the fact that students, our youth, our future, are in debt over a trillion dollars out of the gate. However, as we started putting together all of the facts it became apparent that there was something far more sinister afoot. Slowly the realization began to form that this situation was something that was engineered to assure that the labor of our youth would be mostly for the benefit of banksters. Harsh words? Another wacko conspiracy theory? We will let you the reader decide, but we think not and here are the facts as they are.

According to recent figures from the National Bureau of Statistics, there is only one job vacancy for every five college graduate applicants in America today. In the last 15 years, college tuition in the US has risen a staggering 900%, while wages have risen an impressive average of 10%. And with most jobs in the US being off-shored to the Far East and Latin America, it’s a safe bet that stat is not changing anytime soon, at least for the next 10 years, unless of course you are going for a position under the Golden Arches.

college umemployment 3

Regardless of how bleak the outlook is, America has always been the land of positive thinking and no wonder, as there is no shortage in the queue of 17 year old youth dying to (literally) sign their life away to JP Morgan, Citi Bank and Wells Fargo in exchange for in many cases, around $80,000 in student loans.

Before we rush to judgment, let’s be fair and breakdown what the kids are getting for their 80K. First and foremost, they get that golden fleece, the sheep skin also known as The Degree. The overall average starting salary for Class of 2013 new college graduates currently stands at $45,327, an increase of 2.4 percent over the reported average of $44,259 for Class of 2012 graduates, according to the September 2013 Salary Survey. Here’s the irony of this, according to the Social Security Administration the national average wage index for 2012 is 44,321.67. So according to these numbers, a college degree does not mean better wages.

college unemployment

But here is the really bad news. Unemployment for students with new Bachelor’s degrees is an unacceptable 8.9 percent, but it’s a catastrophic 22.9 percent for job seekers with a recent high school diploma—and an almost unthinkable 31.5 percent for recent high school dropouts.

college unemployment2

So if this is truly a market driven economy, how can tuitions be rising by 900%? This is where the whole engineering part starts to take shape. Step by step, this was how it was deliberately engineered by the banksters.

Step One- Get the government to back student loans. By making the government the co-signer and the capital being used is government supplied money, the banksters simple rake in the profits for churning debt.

Step Two- Get the government to pass a law that student debt cannot be discharged in bankruptcy. This insures the banksters a never ending source of compound interest and penalties infinitely.

Step Three – do not allow low interest rates to prevail. Get the government to pass a law tying student loan interest rates to the 10 Treasury Index.

Step Four- Since student loans were made available to everyone because of government backing, colleges and universities could raise tuition and fees without regulation. This, the banksters also encouraged because the higher the tuition, the higher the individual debt load which translates to high interest and fees.

As of July 1, 2013, Stafford loan interest rates will be variable, but unlike other loans with variable rates, these Stafford loans will have a locked in rate for the life of the loan.  On July 1 of each year, undergraduate subsidized and unsubsidized Stafford loans will have an interest rate of the 10-year Treasury index rate plus 2.05%.  Graduate unsubsidized Stafford loans will have an interest rate of the 10-year Treasury index rate plus 3.6%.  The ten year treasury index currently floats around 3.5%. This means rates of 5 to 7% will be typical. However, again here is a trap. If students consolidate those loans, the interest rates are capped at 8.5%.

So given a typical debt load of $80,000 per student and a typical 20 year repayment schedule, and $1 Trillion in the float, banksters are ripping out $5.5 Trillion in interest! Here is the irony, it is all done without risking any private banking dollars.

So now you decide. Are our children doomed to economic slavery? While you are deciding this, think about what the alternatives could be. We could have state and locally owned banks, backed by our government that could offer student loans at 1% interest. We could have government regulations that capped tuition increases at state and private schools that were tied to the CPI. We could have a minimum wage at $10.50 per hour to create a livable wage. We could have $5.5 trillion more being pumped into our economy creating job opportunities for our college graduates.

When is enough-enough?

The Big Six Banks Just Get Bigger and Bigger

Back in 2008 we were held hostage as a people and eventually wound up forking nearly $17 Trillion dollars over to the banks after their casino games failed. We were told if we didn’t the world economy would collapse. These banks were just too big to fail. So now over five years have passed and our miserable congress failed to enact any meaningful legislation to prevent a repeat situation from occurring. Where the money really went will be an upcoming article, but for now let’s just look at those banks to see how big they are today. The numbers will shock you.

First the only banks that did not survive were the community banks serving their local communities. In 1985, there were more than 18,000 banks in the United States.  Today, there are only 6,891 left. The six largest banks in the United States (JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley) have collectively gotten 37 percent larger over the past five years.

The U.S. banking system has 14.4 trillion dollars in total assets.  The six largest banks now account for 67 percent of those assets and all of the other banks account for only 33 percent of those assets. JPMorgan Chase, alone, is roughly the size of the entire British economy. The five largest banks now account for 42 percent of all loans in the United States.

Well, since they gotten bigger, they must be in better shape, right? Wrong again. Right now, four of the “too big to fail” banks each have total exposure to derivatives that is well in excess of 40 trillion dollars. That’s $160 Trillion dollars! Their exposure is over TWICE the global GDP and 14 times larger than the US GDP! The total exposure that Goldman Sachs has to derivatives contracts is more than 381 times greater than their total assets.

global GDP

Just think about from your personal financial perspective. If you were in that situation, it would mean your debt was 381 times your assets. In the US, Americans tend to have a low net worth. According to Social Security numbers those under 25 has a net worth of $1475, 25-34 has $8525, 35-44 has $51575, 45-54 has $98350, 55-64 has $180125. So let’s take the 35-44 number of $51575. This would mean you would have debts that totaled $19,650,075! Until you understand this from that perspective you cannot appreciate how totally insane this whole house of cards really is in truth.

The fact is these guys are totally and criminally out of control and no one is doing a single thing meaningful about it and now it is so nuts anyone who would be contemplating action is absolutely fearful to even speak about this insanity.

According to the Bank for International Settlements, the global financial system has a total of 441 trillion dollars worth of exposure to interest rate derivatives, which is nearly 6 times global GDP. Most governments’ coffers have been drained and most pension plans and investment pools are also tapped out.  The FED’s answer to this mess is just to keep printing money at the rate of about $40-60 Billion every month. This is only delaying the inevitable collapse that must come and folks are starting to get antsy that this is going to happen soon, very soon.


The only sane approach here is to have a global financial reset and the sooner the better. We can demolish this mess with a single global jubilee along with breaking these behemoths back down to a size where if they wish to act in a risky manner, they will live or die on their sword and the world will continue on without them. This would also eliminate these world-wide austerity programs and allow countries to get back to using their tax dollars for infrastructure, health care, education, and basic science research that will benefit all mankind.

It is important that we all understand these facts and are prepared to act when the time comes again when these con artists and habitual gamblers once again come begging with threats to blow up the economy. We should all just say to our representatives no way will we allow you to use one more penny of our money.  We should be willing to look them straight in the eye and say “Blow it up”! It is only then can we begin to construct a global economy based on honesty, transparency, sound fiscal decisions, and truly market driven economic activity. Don’t buy into the fear factor this time around.

We Hate It When We Are Right

As far back as April 10, 2010, we began to warn Americans that the banksters were moving on a plan to extract as much wealth as possible from our pockets. Back then we said that eventually these shysters would directly and boldly swipe retirement funds directly. Then as the months past, we saw first people stripped of the equity in their homes through the mortgage fraud, then we saw the truth that the so-called bank bailouts really cost us, the American taxpayers, in excess of $15 trillion. If that were not enough, the banks were then caught laundering drug money, they plead guilty to fixing interest rates through the Libor scandal and were also guilty of manipulating several commodities including oil, silver, gold, and food grains.

All along we said if there are no criminal sanctions, they would continue by going after sovereign funds and they did exactly that in the last 24 months. So many cities are on the verge of bankruptcy because they invested in the “junk” of these so-called big banks and funds. The truth is that our justice department refuses to bring criminal charges and the result has been the so-called “Big 6” that were too big to fail in 2008 have gotten 40% bigger. Now, right on cue, the last big pot of money is now going to be drained leaving hundreds of thousands American retirees without the retirement money they worked their whole lives for to ensure their retirement security.

As lawmakers in Springfield Illinois prepare to vote on a controversial pension reform plan, a federal bankruptcy court judge in Detroit issued a ruling that could have major consequences for government employees throughout the country. Dealing with numerous objections to the nation’s largest municipal bankruptcy, Judge Steven Rhodes ruled that pension debts were not given “extraordinary protection” under Michigan’s Constitution, and that pension plans could be reduced by a bankruptcy court.

The judge also ruled that Michigan’s emergency manager law, and its decision to allow the city to enter bankruptcy, were both proper under state law and the state constitution. The rulings clear the path for Detroit to enter bankruptcy, and also increase the likelihood that city pensions will be sharply cut as part of a restructuring plan for Detroit. You see, the retirees are “unsecured” debtors so they are last in line to be paid.

Like Illinois, Michigan has a provision in its state constitution that makes pensions enforceable contracts. Judge Rhodes ruled, however, that pension contracts, like most other contracts, can be modified in bankruptcy if doing so is needed to put the city on a sound financial footing. Detroit government workers unions had argued that pensions could not be amended. The judge rejected that argument, setting a precedent that is likely to apply in Illinois.

In addition to Illinois, more than 20 major cities are on the verge of bankruptcy. These cities have amassed $118 billion in unfunded healthcare liabilities. These are legal promises to pay healthcare benefits to municipal workers beyond the employee contributions to finance those funds. This is a giant fiscal sink hole — and because of defined benefit plans, the hole keeps getting deeper.

Detroit may be the largest city in American history to go bankrupt, but it is not alone. The city raced to the financial insolvency finish line before anyone else in its class. Keep an eye on “too big to fail” cities like Chicago, Philadelphia, and New York.

cities on verge of bankruptcyAccording to an analysis by the Manhattan Institute, several Chicago pension funds are in worse financial shape than the worker pensions in Detroit. One is only 25 percent funded, and where the other 75 percent of the money will come from is anyone’s guess. And there are about a dozen major California cities having systemic problems paying their bills.

This decision by Judge Rhodes also weakens the value of any “guarantee” of pension funding, as a bankruptcy court could still reduce benefits in the event of a state or local government bankruptcy.  Using a more conservative method of accounting for financial gains in the marketplace, there is a $4.1 trillion gap between assets and liabilities — known as the “unfunded liability” — of all state-level pension systems in the United States, according to State Budget Solutions, a fiscally conservative think tank that deals with tax and spending issues at the state level. This action by Judge Rhodes is a very important ruling with major implications for any government agency that has unfunded pension liabilities. The effect this will have on Illinois and other states and cities is likely to be profound, but could be complicated. With so much at stake, all parties that have an interest in pension reform – lawmakers, government workers and unions – would be well advised to put a vote on pension reform on hold long enough to work through Judge Rhodes’ ruling to understand how it will apply in each case. They should come back with a better plan that makes retirements more secure.

One thing is clear: Pension “guarantees” are not unbreakable. The need for real pension reform that gives workers more control over their own retirement funds is even greater now.

oligarch boot

We have watched this methodically unfold in Greece, Spain, Ireland and now the grand daddy jackpot for the banksters, US municipal and state retirement funds. We are absolutely dumbfounded as to what it is going to take to get people to wake up, clean up our legislators, and jail these mobsters. Really are we that much sheeple that we will go apathetically and quietly to slaughter? These politicians and mobsters are banking on it, no pun intended.

Why No Bankers Go To Jail and Never Will!

As we have watched as trillions of dollars vanish before our eyes. As we, as taxpayers, have bailed out banks after they lost at the biggest casino in the world. As the people in Europe watch in horror as their deposits are confiscated without their consent. As we witness country after country being forced in austerity programs that are killing their economies and idling their workers. As we watch pension funds and retirement funds being raided by the bankers and hedge funds, we ask how can this theft go unpunished? Why has the Attorney General Eric Holder said that it is not possible to bring criminal charges?

The answer to this question is the unspoken truth. A truth that if understood by us all would lead to the greatest run on banks in history. Well it is time you know the truth, the whole truth and nothing but the truth. Here it is:

P.S. I tried to embed this video, but when you do a search in Youtube, you will get a result that says this video cannot be found, so click the link and learn. They can make it difficult, but they cannot hide truth in plain sight and then expect us not to find it. click the link and learn!

What Happens If You Kick the Banksters Out?

Iceland led the way in 2010. Initially it paid a huge price for taking the actions it did. The banksters made sure Iceland was punished for that move. But what about now, how is Iceland recovering? Iceland’s economic freedom score is 72.1, making its economy the 23rd freest in the 2013 Index. Its overall score is 1.2 points better than last year, due primarily to substantial efforts to rein in government spending. Iceland is ranked 13th out of 43 countries in the Europe region, and its overall score remains well above the world and regional averages.

Though hit sharply during the financial crisis, Iceland is well into the process of recovery. The quality of the legal framework remains among the world’s highest, providing effective protection for property rights. The rule of law is well maintained, and a strong tradition of minimum tolerance for corruption is firmly in place.


Iceland has demonstrated a strong commitment to restoring the soundness of public finance and the credibility of its policies. However, the emergency economic measures, including capital controls, implemented by the government during the financial crisis are being unwound only slowly and constitute a serious barrier to economic freedom that threatens future growth. A dependable commitment to regulatory efficiency and open-market policies underpins efforts to restore positive momentum.

Remember when the Icelandics did the unthinkable and told bank creditors (IMF) to take a hike? They also imposed capital controls and allowed the value of their currency to fall – the Icelandic Krona has lost almost half of its value against the euro over the past five years.

The “experts” queued up to assure us that these latter-day Vikings would be severely punished for their impertinence. While no one forecast that a hole would open up in the North Atlantic and swallow Iceland whole, some of the predictions came pretty darned close. Now, four years later, it is clear that, not for the first time, the “experts” have got it wrong, catastrophically and utterly wrong.


GDP has risen 7% from 2010 to 2012, adding nearly $1.2 billion which is nearly $2,000 per capita in a country of only 308,000 families. Unemployment has dropped 2% in the last year and now stands at 5.6%. The government’s budget for 2012 showed only a -2.3% deficit and public debt dropped 10% in the last year. Industrial production grew 3% and revenues rose by nearly a half billion dollars.

Granted there are still issues facing Iceland, especially in the area of pension funds, etc., but there is no question Iceland is outstripping the rest of the EU in recovery. So it is fair to say Iceland 1 Banksters 0.

Now Hungary has followed suit. Hungary is making history of the first order. Not since the 1930s in Germany has a major European country dared to escape from the clutches of the Rothschild-controlled international banking cartels. Hungarian Prime Minister Viktor Orbán promised to serve justice on his socialist predecessors, who sold the nation’s people into unending debt slavery under the lash of the International Monetary Fund (IMF).

hungary bankers

 According to a report on the German-language website “National Journal,” Orbán has now moved to unseat the usurers from their throne. The popular, nationalistic prime minister told the IMF that Hungary neither wants nor needs further “assistance” from that proxy of the Rothschild-owned Federal Reserve Bank. No longer will Hungarians be forced to pay usurious interest to private, unaccountable central bankers.


Instead, the Hungarian government has assumed sovereignty over its own currency and now issues money debt free, as it is needed. The results have been nothing short of remarkable. The nation’s economy, formerly staggering under deep indebtedness, has recovered rapidly and by means not seen since National Socialist Germany.

The Hungarian Economic Ministry announced that it has, thanks to a “disciplined budget policy,” repaid on August 12, 2013, the remaining €2.2B owed to the IMF—well before the March 2014 due date. Orbán declared: “Hungary enjoys the trust of investors,” by which is not meaning the IMF, the Fed or any other tentacle of the Rothschild financial empire. Rather, he was referring to investors who produce something in Hungary for Hungarians and cause true economic growth. This is not the “paper prosperity” of plutocratic pirates, but the sort of production that actually employs people and improves their lives.

With Hungary now free from the shackles of servitude to debt slavers, it is no wonder that the president of the Hungarian central bank, operated by the government for the public welfare and not private enrichment, has demanded that the IMF close its offices in Hungary and leave. In addition, the state attorney general, echoing Iceland’s efforts, has brought charges against the last three previous prime ministers because of the criminal amount of debt into which they plunged the nation.

The only step remaining, which would completely destroy the power of the banksters in Hungary, is for that country to implement a barter system for foreign exchange, as existed in Germany under the National Socialists and exists today in the Brazil, Russia, India, China and South Africa, or BRICS, international economic coalition.

The rest of the western world needs to understand what is happening here. These are not notions of what could be done, but instead are real life examples of the people waking up, taking action, and freeing themselves from usury and economic enslavement. The stories of Iceland and Hungary don’t show up on any MSM financial shows and we wonder why. Not really, we know why don’t we?

Maybe, just maybe, we should begin having the same discussions in the UK and the US for example. As we watch this circus of government shutdown and going over the deficit cliff, you have to ask yourself just one question, who is the holder of that giant deficit we owe? You get the idea right?

The Top 25 Global “Too Big to Fail Banks” and What You Should Know About Them

1 Industrial & Commercial Bank                 $2,813.5B                             China

2 HSBC Holdings                                      $2,692.5                               United Kingdom

3 Deutsche Bank                                      $2,655.7                               Germany

4 BNP Paribas                                          $2,517.1                               France

5 Mitsubishi UFJ Financial Group               $2,488.8                               Japan

6 Credit Agricole                                       $2,431.4                               France

7 Barclays                                                $2,420.6                               United Kingdom

8 JPMorgan Chase                                    $2,359.1                               United States

9 Bank of America                                     $2,258.5                               United States

10 China Construction Bank                       $2,241.0                               China

11 Royal Bank of Scotland Group                $2,131.4                               United Kingdom

12 Agricultural Bank of China                      $2,124.2                               China

13 Bank of China                                       $2,033.8                               China

14 Mizuho Financial Group                         $1,882.9                               Japan

15 Citigroup                                              $1,864.7                               United States

16 Banco Santander                                   $1,675.5                               Spain

17 Societe Generale                                   $1,650.5                               France

18 Sumitomo Mitsui Financial Group            $1,578.2                               Japan

19 Lloyds Banking Group                            $1,501.7                               United Kingdom

20 Wells Fargo                                           $1,423.0                               United States

21 UBS                                                      $1,376.8                               Switzerland

22 UniCredit                                                $1,223.1                               Italy

23 Credit Suisse Group                                $1,010.6                               Switzerland

24 Goldman Sachs Group                             $   938.6                              United States

25 Nordea Bank                                          $   894.0                                Sweden


The first thing that should stand out to you is how much of the global wealth is “tied up” in these top 25 banks’ assets. It is a staggering $43 Trillion dollars or nearly half of the global GDP. It is also nearly half of the world’s wealth lying stagnant and not working in the economy. This goes a long way to explain why global growth is not occurring.

Now here is the most startling part. Let’s just take one of these banks, say No.2 HSBC.  Check out what HSBC owns here It is important that you understand these “banks” are not “banks”, they are the front to controlling the global economy. This illustrates how when a bank like HSBC does collapse, and it will, they take down a whole lot more than you can imagine. Further, it is this reality that they used to blackmail governments to fork over public monies to save their butts.  What you find interesting is at the near bottom of the list is SWIFT. SWIFT (Society for Worldwide Interbank Financial Telecommunication) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment. Swift also sells software and services to financial institutions, much of it for use on the SWIFTNet Network, and ISO 9362. Business Identifier Codes (BICs) are popularly known as “SWIFT codes”. Basically- SWIFT codes move ALL the money all over the world, and HSBC owns it 100%.

 Keep in mind this in depth research is on just one of the top 25 banks, so we can reasonably assume they each have as extensive holdings on a global basis. It is not conspiracy theory to say fewer than 200 entities control 99% of the economy. This is very real and very detrimental to all of us. Here’s why:

These banks are also exposed to credit swaps that could exceed $12 Trillion and could be much higher, given the over-the- counter credit swaps market is a staggering $633 Trillion! Just let that sink in for a moment. This is nearly 6 times the global GDP! Are you beginning to see how fragile this house of cards really is, in reality. Let’s put it in terms we can understand. This is like you being in debt at 6 or 7 times your net worth!  The irony here is that none of these banks would even look at you for a loan with those kinds of numbers. They would claim “game over” for you. However, they do expect us to bail them both out and in!

This is beyond insane. It is even beyond Twilight Zone mentality. Many of these banks were recipients of Bailouts from the Fed in 2009 and 2010, which in the end, truth told, was nearly $7 trillion dollars and we have no idea how much the EU central banks contributed to bailing their butts out of the fire, but I am sure it was also several trillion dollars! Yet, here we are in 2013 and the situation is worse than in 2008.  

Now here is the sobering reality. The GAME IS OVER for these guys! Maybe the fat lady hasn’t sung yet, but the game is over. There will be a total collapse of the global economy soon and the Fed and all the central banks of the world will not be able to bailout these banks, print money fast enough, and even if they were successful in raiding every individual’s bank accounts and assets for 100%, instead of the 47% hit the people with assets in the Cyprus banks took, it still wouldn’t be enough to cover this disaster. These are hard truths to face, but the numbers don’t lie, even though everyone involved is lying, period.  They know this doomsday scenario is just around the corner, so they are simply trying to rake as much personal wealth as possible on the various trading schemes before the crash occurs.

It is time to prepare for this reality. When the banks close it will be too late. This is not to say run the banks, because even now you can’t do that. Just ask anyone in Cyprus or Spain how that worked out for them. No, the reality is you have to begin to think how you will survive without ANY money, for say a year or two. It is a crime that those we trusted to regulate these fools have totally failed us.

The good news is that after the collapse, we, as “we the people”, will have the opportunity to reset the globally economy in a manner that is fair, equitable, and vibrant. To be sure, this should never again occur in this world. It will be “we the people” who will fix this mess and we should never tolerate another entity, no matter if it is a bank or a corporation to ever be “too big to fail”!

How “Bail-outs” and Bail-ins” Are Just a Huge Transfer of Wealth

In our continuing effort to educate even those who call themselves “experts” on the economy, we have to continue with the facts that the banksters, MSM, and dupes that call themselves legislators don’t want you to see or understand.  We have, in recent past articles, shown you just the facts about the bailouts and now the bail-ins going on in the EU for what they are, just a huge transfer of public wealth to the hands a few elites in banking and the central banking system.

As we watch the economy continue to falter, and jobs vanish, don’t you wonder where all the so-called QE monies really went that were meant to stimulate the economy? Here we are, 5 years into this so-called recovery and unemployment in the US is still 7.6% and only 47% of Americans hold full time jobs.  The number one employer is WalMart and the number two employer is Kelly Temp Services! In the EU, there is a 40% unemployment rate and people’s bank accounts are being raided without consent to supposedly prop up the banks (Bail-Ins). Government services are being slashed everywhere and still nothing seems to be improving.

Well, even though you are not supposed to understand this, let’s look at the Central Bank Practices and especially at the issue of banks’ reserves at the FED and other central banks in the world. This is a complex subject with much technical jargon that confuses a lot of people. Besides, don’t be surprised that your bank branch manager on Main Street as well as lecturers in finance and economics are also ignorant on this issue. In the case of the latter, this subject is hardly taught in universities. And this is the reason why the scam has not been exposed or understood. But, for those who have a basic idea of bank reserves and how this huge amount of “excess reserves” have been created by the FED, have you asked yourself, “Why have I not spotted this scam earlier?”

Many have been taken in by the propaganda that “excess reserves” is the means to encourage banks to extend credit (give out loans) to desperate borrowers who needed urgent funds to survive and to jump-start their businesses. This propaganda is grounded on the assumption that there is insufficient liquidity in the market. This assumption is misleading.

What are Excess Reserves? The latest figures obtained from the H.3 release from the Board of Governors of the Federal Reserve System (the FED) shows excess reserves of about $1.794 trillion (data as of April 17, 2013)! This level of excess reserves is unprecedented and is the highest since reserves were legislated as a requirement.

Excess reserves are the surplus of reserves against deposits and certain other liabilities that depository institutions (collectively referred to as “banks”) hold above the statutory amounts that the FED requires in accordance with the law. The general requirement is that banks maintain reserves at least equal to ten percent of liabilities payable on demand. There is now data to show that as much as 50% of these “excess reserves” are held for United States banking offices of foreign banks.


Let me elaborate. Banks receives deposits from their customers which are inter-alia placed in current accounts (checking accounts) or time deposits (fixed deposit accounts) and which the customer can at any time withdraw from the bank. But, banking practice shows that at any one time, only a small fraction of customers would withdraw their deposits in full. So, there was no need for banks to keep all the deposits in their vaults to meet such a demand for payment. Laws were enacted to allow banks to keep in reserve a small amount of monies to meet such demands. That being the case – if only 10% reserves is all that is required according to banking regulations to meet repayment demands, why should there be such a huge amount of reserves, beyond the legal requirement of 10%?

Understand the fact that when a customer deposits monies in a bank, he is in law a “creditor” (he has loaned the monies to the bank) and the bank is a “debtor” (and he can use the money in any way at his absolute discretion, even to speculate). This is because the ownership of the money has been transferred to the bank. The money is no longer the money of the customer. It now belongs to the bank. And as long as the bank is solvent, and there is a demand for repayment of the deposit, the law of contract stipulates that the bank must repay together with the agreed interest that has accrued.


Now here is where, legally it gets interesting.. if at the time when demand for repayment is made, the bank is bankrupt (i.e. in a liquidation) then the depositor/customer in law is deemed an “unsecured creditor” and must join the queue of all unsecured creditors to share the proceeds of any remaining assets after all secured creditors have been paid. If there are no remaining assets, the depositors get zilch! That is why and as illustrated in the bank confiscation of deposits in Cyprus banks acting in concert with central banks can expropriate all customers’ deposits to pay their secured creditors. You catching on here?

How did the Excess Reserves balloon to a massive US$1.794 Trillion? The Fed’s overall balance sheet has expanded from about $909 billion before the crisis (i.e. before 2008) to about $3.3 trillion in 2013. Of the $2.4 trillion increase, approximately $1.8 trillion is excess reserves. Banks were up to their eyeballs in toxic assets (financial sewage) and they are drowning in this cesspool but for the rescue efforts of the FED and other central banks they would have sunk to the bottom of the cesspool.

The FED created trillions of money out of thin air by a digital entry in its books to purchase the toxic assets (financial sewage) in batches from the banks. The objective of QEs is to save the banks and to save the US Treasury from bankruptcy and not Joe Six-Pack. However, in this article we are focusing on the banks. So, let’s say that the banks HAVE OVER US$10 trillion of financial sewage AND WANT TO DISPOSE THEM WITHOUT AROUSING ANY ALARM.  The monies flowed from the FED to the banks to purchase the financial sewage. The financial sewage is sucked into the FED’s financial vacuum. However the monies are not channeled to the banks’ branches in Main Street to be loaned out to Joe Six-Pack. It is re-routed back to the FED as “reserves”. When the reserves exceed the minimum 10% requirement, the excess is classified as “excess reserves.” This is merely a book entry! And adding insult and injury to Joe Six-Pack, interest of 0.25% is paid on the reserves (i.e. giving profits to the banks).

The banks are allowed to survive in spite of their massive frauds and other financial hanky-pankey. The banks are allowed to use digital technology (e.g. high-frequency trading) to corner the market and destroy Joe-Six-Pack. But, Joe-Six-Pack has to suffer the indignity of unemployment, foreclosures, reduced unemployment benefits, surviving on food-stamps, and other austerity measures. Starting to see the picture here and how this crap is how we are being fleeced like passive little lambs?

“The money flows from the FED to the Too Big To Fail (TBTF) Banksters to Buy Toxic Assets, which is sucked in by the FED’s Financial Vacuum, thereby cleansing the TBTF banks’ balance sheets. The money is then re-routed back to the FED as “excess reserves”.

The FED create monies out of thin air to bail-out the Too Big To Fail banks (TBTF banks) by purchasing their financial sewage (valued at book value as opposed to mark-to-market i.e. instead of paying only 10 cents on the dollar or less, the FED pays dollar for dollar) thereby removing the financial sewage from the balance sheet of the TBTF banks to reflect a “healthier” balance sheet as there are now less financial sewage in the banking system. And, because the TBTF banks are suffering losses, the FED pays 0.25% interest on the “excess reserves” created so as to generate easy profits for the TBTF banks for doing nothing at all. They are earning profits merely from a book-entry in the FED’s books!

The propaganda which I referred to earlier that such monies were meant to enable the TBTF banks to extend credit is therefore bullshit and a load of financial nonsense. So why are the so-called reputable economists at leading universities such as Harvard, Princeton, Cambridge, Oxford etc. touting this propaganda?  In spite of all this past mismanagement, the practices by the TBTF banks is continuing unabated, including the so-called record profits declared by the TBTF banks and the huge bonuses given out to the bankers and their hire-lings. These practices are all just window dressing as long as the toxic assets are not marked-to-market and not declared as junk. If such assets are properly declared, the fiat money banking system would be staring at a bottomless black-hole of toxic assets and indebtedness! What’s worse is these same TBTF banks are still up to their eyeballs in toxic debt, such as derivatives, credit swaps, etc.  In fact JP Morgan Chase alone has exposure more than twice the US GDP! JPMC is exposed just in interest rate derivatives at $45 TRILLION. Take a look at the Fed’s H.8 report to understand how bad it really is.

This has compounded the problem. After the Global Financial Tsunami, all the TBTF banks don’t have enough reserves to meet the withdrawal of deposits placed by customers before the crash. The TBTF banks don’t even have the requisite 10% reserves to meet these demand deposits (Old Deposits).  However, banks are continuing to receive deposits from customers of which 10% of these deposits must be transferred to the FED as reserves. Data shows that customers’ deposits are at an all time high (since 2007), but bank lending is not keeping pace.

Banks are not lending out what they are entitled to do so for two reasons:

1) The banks are using a portion of the “New Deposits” to meet the liability of having to repay the “Old Deposits” in the system. This is because even the excess reserves (created under the QE) are insufficient to meet the demand for repayment of the Old Deposits. So, part of the current New Deposits would be utilized for that purpose. This is the Deposit Ponzi Scheme.

2) Banks are earning no risk profits from interests on “Excess Reserves” at the FED and are only willing to lend to credible borrowers. In the present economic climate, there are just too few credible customers. This is another reason why banks are not lending.

When QE stops, the FED would not be out on a limb because the monies used to purchase the financial sewage from the TBTF banks are still in the FED’s books. The Fed need only to have a reverse entry in it’s books after re-packaging the financial sewage INTO SOME NEW FORM OF FINANCIAL PRODUCT OR WHATEVER (which the TBTF banks are adept at doing before the crash and are still continuing to do so) and dumping them back to the banks and another generation of stupid investors at such time when and if the banks would have recovered. But with the TBTF banks continuing their same toxic practices unabated there is no recovery, ever. Further, with the bank’s unbridled right (sanctioned by law) to confiscate the customers’ deposits (now commonly referred as “Bail-In”) using the Cyprus template, banks have additional financial resources to continue with the plunder and financial rape of the public.

I hope this helps us understand that this unabated transfer of wealth ends with our economic enslavement. The public must be able to understand these fundamentals and demand the end to this fractional banking system and the end of the FED. Your congressmen and women are dupes in this game, as they really don’t understand and therefore do what they are told to do. Inform them WE GET IT and WE DON”T LIKE IT, AND IT MUST STOP NOW! Fire the Fed, break up the TBTF banks and return to pre-1913 banking system controlled by the US Treasury. WAKE UP!  A special thanks to Matthias Chang of Global Research, who unknowingly contributed so much to this article.

A Few Questions

British banking giant HSBC will pay $1.9billion to settle a money-laundering probe by federal and state authorities in the United States, a law enforcement official said on Monday. The probe of the bank – Europe’s largest by market value – has focused on the transfer of billions of dollars on behalf of nations like Iran and North Korea, which are under international sanctions, and the transfer of money through the U.S. financial system from Mexican drug cartels.  According to the official, HSBC will pay $1.25billion in forfeiture and pay $655million in civil penalties.

Under what is known as a deferred prosecution agreement, the financial institution will be accused of violating the Bank Secrecy Act and the Trading With The Enemy Act. The London-based bank said it is cooperating with investigations but that those discussions are confidential.

US regulators also order Standard Chartered to pay more than $250m in fines for money laundering. The deal could be announced as early as today, the Wall Street Journal reports. It follows the announcement of a similar but much smaller settlement with UK-based Standard Chartered bank, which will pay $300million in fines for violating US sanction rules. The HSBC settlement had been widely expected following a report by the U.S. Senate, published earlier this year, which was heavily critical of HSBC’s money laundering controls. In regard to HSBC and Mexico, a U.S. Senate investigative committee reported that in 2007 and 2008 HSBC Mexico sent to the United States about $7 billion in cash.

Senator Carl Levin, committee chairman, said HSBC had promised to fix deficiencies but failed to do so. The committee report said that amount of cash indicated illegal drug proceeds. The deferred prosecution agreement means the bank will not be prosecuted further if it meets certain conditions, such as strengthening its internal controls to prevent money laundering.


The U.S. Justice Department has used such arrangements often in cases involving large corporations, notably in settlements of foreign bribery charges. Money laundering by banks has become a priority target for U.S. law enforcement. Since 2009, Credit Suisse, Barclays and Lloyds have all paid settlements related to allegations that they moved money for people or companies on the U.S. sanctions list.

So here are my questions.

1). As near as I can figure, the US has collected nearly $3 billion in fines over the last two years for various banksters for fraud, money laundering, and providing false testimony to authorities and the CONgress. So where does all of this money go? Given our current economic situation and that very same CONgress looking at whacking away at Medicare and Social Security, I believe there should be some accountability for where this large amount of money is going to be applied. Am I wrong in my thinking here?

2). Given the enormity of these crimes, and yes these are felonies without question, why still is NO ONE going to jail? Are you kidding me? What do you think would happen to you or I if we got caught laundering $100 for the drug lords or terrorists?

3). Why are these banksters still allowed to do business in the US, or any where else for that matter?

4). Do you think these banksters are afraid of fines or are they just the cost of doing business with terrorists and drug gangs? Yeah we know the answer to that question. Further, does anyone believe these fines will result in these very same banksters refraining from doing the same thing in the future? I think they will be “more careful”, but that is about it.

C’mon folks, these guys need to do some serious time and it is time we start to demand just that.  The CEOS of these institutions should be immediately indicted and arrested without bail.  THAT is the only thing that will really stop this craziness being conducted right in front of us.  Isn’t justice supposed to be blind.  Where is our outrage?