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Barofsky’s Winding Road and Fast Car to Economic Disaster
January 31, 2010
According to Neil Barofsky, the special inspector general for the so-called trouble asset relief program, the bankster bailout will ensure the destruction of the economy. “The government’s response to the financial meltdown has made it more likely the United States will face a deeper crisis in the future, an independent watchdog at the Treasury Department warned,” reports the Associated Press.
Neil Barofsky, the special inspector general for the so-called trouble asset relief program.
“Even if TARP saved our financial system from driving off a cliff back in 2008, absent meaningful reform, we are still driving on the same winding mountain road, but this time in a faster car,” Barofsky writes in a quarterly report to Congress that was released today.
TARP was not designed to save the economy. It was designed to nudge it over Barofsky’s cliff. It has increased the size of large banks. Barofsky said the banks still have an incentive to take on risk because they know the government will save them rather than bring down the financial system.
Barofsky also warned that the government and the bankster cartel known as the Federal Reserve are working to create yet another housing bubble. Over the past year, the federal government has spent hundreds of billions propping up the housing market. About 90 percent of home loans are backed by government controlled entities, mainly Fannie Mae, Freddie Mac and the Federal Housing Administration, according to the Associated Press.
How did the Fed and the banksters do this? By directly manipulating the money supply. Earlier this month a survey of economists by The Wall Street Journal revealed that low interest rates were responsible for the housing bubble that eventually affected the economy.
Low interest rates and so-called “easy money” resulted in an epidemic of high-risk loans, the derivatives trade, and irrational speculation. If you watch the financial news programs or read The New York Times, you might believe all of this was simply the result of greed in absence of meaningful regulation and oversight. In fact, the Federal Reserve’s policy of manipulating the supply of funny fiat money and thus artificially creating speculative bubbles is part of a plan to crash the world economy.
A d v e r t i s e m e n t
In May of 2009, intrepid Bilderberg sleuths Daniel Estulin and Jim Tucker reported on a plan to bring about an economic crash. Information leaked from the Bilderberg meeting that year revealed a plan to undertake either “a prolonged, agonizing depression that dooms the world to decades of stagnation, decline and poverty… or an intense-but-shorter depression that paves the way for a new sustainable economic world order, with less sovereignty but more efficiency.”
The Great Bubble Machine (as Matt Taibbi calls it) is the preferred method of taking down the economy and preparing the way for fire sales and bankster and transnational corporate consolidation. “From now on, depressions will be scientifically created,” remarked Congressman Charles Lindbergh in 1913 after the Federal Reserve was established in the dead of night during Christmas.
In order for all of this to be successful the sheeple will of course need to be deceived. On the Bilderberg agenda in 2009 was a plan to “continue to deceive millions of savers and investors who believe the hype about the supposed up-turn in the economy. They are about to be set up for massive losses and searing financial pain in the months ahead.”
Obama’s glowing State of the Union was part of this insidiously crafted deception. In one fell swoop, Obama turned the bankster bailout gimmick into a jobs program. “The illusion will tear apart soon enough, and the world will come to realize that the crisis we have gone through thus far is merely the introductory chapter to the economic crisis as it will be written in history books,” warns Andrew Gavin Marshall.
“The biggest financial bubble in history is being inflated in plain sight,” Gerald Celente noted last year. The emerging Bailout Bubble “is the Mother of All Bubbles,” he said. It will be a coup de grâce for the global economy when it bursts.
At the end of March of 2009, Bloomberg reported that the “U.S. government and the Federal Reserve have spent, lent or committed $12.8 trillion, an amount that approaches the value of everything produced in the country last year.” This “works out to $42,105 for every man, woman and child in the U.S. and 14 times the $899.8 billion of currency in circulation. The nation’s gross domestic product was $14.2 trillion in 2008.”
By July of 2009, this figure had doubled. Barofsky was a bit more modest. In testimony before Congress, he said the figure may reach $23.7 trillion dollars.
Either way we are headed for a cliff in a speeding car, as the mid-mannered special inspector general warns in his report.
Congress is clueless. Last week the grand wizard of this impending crash was reappointed to the Federal Reserve.
The international banksters now have a green light to proceed.