Listening to Kashkari “walk through” the bailout procedure with Rep. Cummings, the main problem with the bailout occurred to me yet again. And that problem is this--the bailout money is being used to prop up a system that has two deficiencies: 1) the current system is unsustainable and 2) the current system is fraudulent.
That this is the main problem with the bailout occurred to me when Kashkari said the following to Cummings:
“If we went out to each of the people and businesses and communities and helped them directly the $700 billion wouldn’t go far enough. So we’re trying to take the $700 billion and stabilize the system as a whole so that credit can then flow out to everybody around the country who needs it. So it’s very hard--we’re trying to think of every day–if we have finite resources, how do we use those resources to the best possible benefit to the system as a whole, because that will help every American (at around 7:35 in the clip posted below).”
There are many problems with this statement, but let me start with the one that aggravates me the most, and that is this–we don’t need more CREDIT, we need LESS INFLATION and GOOD JOBS at LIVING WAGES. Credit is what got everyone into this mess in the first place.
And not only that, “credit” is fake money. Credit of the type Kashkari is referring to is what “creates” “money” for the banks while creating only debt for everyone else.
Why Not Help The People Directly Instead of the Banks?
Indeed, Kashkari specifically rules out helping people directly, BECAUSE THAT’S NOT HOW BANKS MAKE MONEY. Instead, Kashkari would rather help the banks directly instead of the people. That way the banks can create more inflation through fractional reserve banking and “loan” the “money” created in this way to us at interest.
What kind of crap is that? People say “please help us” and Kashkari says, “I won’t help you but I’ll help your bank ‘help’ you.” Since when has a bank helped anyone do anything but go into debt?
The $700 billion Is Not the Sum Total of the Bailout
Kashkari would have us believe that the bailout funds total only $700 billion, when the final bailout bill actually had a price tag of $850 billion and we know that the Federal Reserve gave away $2 trillion in bailout money and then told Congress that Congress isn’t allowed to know where that money went.
The idea that the money supply is finite is insane–the money is issued out of nothing. It’s fake, it doesn’t even exist. It’s unlimited, it’s infinite.
In fact, here's a great summary of how the fake money is created from David Icke (the whole article is great; below is just a taste):
"This is how 'they' control governments, businesses and the general population, by creating enormous debt.
Vital to this has been to allow bankers to lend money they do not have. It works like this. If you or me have a million pounds, we can lend a million pounds. Very simple. But if a bank has a million pounds it can lend ten times that and more, and charge interest on it.
If even a fraction of the people who theoretically have 'money' deposited in the banks went today to remove it, the banks would slam the doors in half an hour because they do not have it. Money in the bank is a myth, another confidence trick.
If you go into a bank and ask for a loan, the bank does not print a single new note nor mint a single new coin. It merely types the amount of the loan into your account. From that moment you are paying interest to the bank on what is no more than figures typed on a screen. However, if you fail to pay back that non-existent loan, "they" using "they're" own made-up laws - which are illegal, according to God - will come along and take your wealth that does exist, your home, land, car, and possessions, to the estimated value of whatever figure was typed onto that screen."
Read that last paragraph again and then think about the homeowners on the Mississippi Gulf Coast who are still making mortgage payments, even on houses that were swept out to sea by Katrina on August 29, 2005. I heard a BBC story just yesterday about this--these homeowners are paying interest on nonexistent money (see above--read it multiple times if it doesn't make sense at first) to "pay back" a "loan" on a house that doesn't exist. And they're trapped in the debt--they can't sell or rent the house; they can only go into more debt rebuilding (because insurance won't pay) or have their wages garnished or their credit ruined through foreclosure or other judgments if they just stop paying the mortgage.