It is a strange constellation when something that has value that can be created from nothing. Now, it was announced that the Central Bank of the United States, of which it is a purely private financial institution, at the beginning of the financial crisis is not less than nine trillion dollars in flash lending, some of which also benefited German banks. Only a newly enacted U.S. law forced them to this transparency. Although it is not easy to find a reference to transactions of this magnitude, as ordinary citizens, dependent on money, we are part of the game of the powerful.
While it is of critical sources regularly pointed out that it referred to the Federal Reserve, Federal Reserve Bank to be a purely private enterprise that was established in 1913 to life, but, for lack of widespread and education, this is even most U.S. citizens not aware of. Even if regular commercial banks can put money into circulation through loans, it nevertheless is subject to certain restrictions. Yesterday the first reports emerged that the Fed supplied in 2008, selected large banks with nine trillion dollars to prevent a financial meltdown without residue – or delay.
To better understand the situation, I summarize briefly the causes for the onset of the economic crisis, the end of 2007
For several years, pushed up real estate prices in the U.S. on a regular basis, where there is not only a myriad of small independent banks, and there is a lack of legal provisions relating to mortgaging a property. For example low interest rate loans and rising prices motivated a large number of citizens to purchase homes. Not only that required by regularly raising your prices in most cases, no down payment was often mortgages were granted, which were higher than the purchase price. It was therefore a person who had no or low income, buy a house for $ 500,000 and received simultaneously with a loan of 550,000. The competition among banks was fueling this generosity.
Mortgage loans were secured at 100% and were traded in the financial market. In particular, smaller banks were off their supposedly secure, demands for more funds for further lending to have available. As soon as a drop in property prices became clear there was suddenly a tremendous asset to unsecured loans. The collapse of Lehman Brothers in September 2008, the bubble burst was evident. And, after banks wanted to participate in many other countries at the time was so miraculous multiplication of money, let the financial shock half the world tremble. From public funds, so with the money of taxpayers, were banks that are doing speculation, were saved from collapse.
As has been known that these agents not suffice, however. In public, the crisis in September 2008, by the collapse of Lehman Brothers, properly known. Financial community felt the quake but much earlier. In March 2008, found the investment bank Bear Stearns, which was shortly afterwards taken over by rival JP Morgan (Rockefeller), faced with dramatic problems. And at this very moment, the Fed began to flash low interest rate loans at favorable interest rates from 0.5% to 3.5% to forgive. Of the total of $ 9,000,000,000,000 the largest share went to Merrill Lynch, Citigroup and Morgan Stanley, however, to 410.8 billion have been taken by the German banks.
$ 9,000,000,000,000, 9 million times a million, correspond with 65% of U.S. government debt. With 8133.5 tons to keep the U.S. the world’s largest gold reserves. At the current gold price is equal to its value at approximately 365 billion around 4% of the total of 21,000 loans granted by the Fed.
Of course, we can assume that both need to put behind this decision as well as experts thoughtful considerations. Also, were, according to the Fed, the loans paid back. The shocking viewing this sum is the fact that it is the same money is to finance the ordinary people their daily lives. While a major part of humanity with more and more problems will confront, to challenge the regular costs, the untold wealth of pen strokes can be put into circulation. While several hundred billion each state budget burden significantly, as the Federal Reserve Bank open the possibility of 9 trillion to simply create.
Obviously you need the biggest banks that support. And when the monster institutions in 2008, lack of resources, where did this in order to pay back the loan within a short time?
Reputedly the richest man in the world, the Lebanese living in Mexico, said Carlo Slim Helu, in an interview that crisis offer the best conditions for creating huge wealth. While both private and state budgets in recent years have been increasingly scarce, exceeded the sum of the billions in the hands of the financial elite on a regular basis. The same medium of exchange, money that is used for the masses to obtain the bare life, is used by the elite called for speculation and manipulation.
This new revelation was supposed to bring to listen to the proposal of Prof. Hörmann more hearing, the base means has proposed to the survival of people with money to decouple as an instrument of power. The harsh austerity measures that have spread from Greece and Ireland, ultimately, the entire EU to be diverted from that volume of money that allows citizens to self-preservation is available, while simultaneously using the same media institutions to secure power and influence. How long will it take until the links are fully understood and measures are proposed? As long as the existing financial system to the common people their life relatively easily allowed for that there was little reason to question the mechanisms. After the errors and weaknesses of the system but now clearly evident, it was time to make use democracy to demand more information and to take appropriate action. If we take Professor Hörmann faith, not much time left.
