As Europe Trembles, Federal Reserve Attempts Bail-Out

We’re well past the end of the efficacy of such charades as the one the Federal Reserve is now undertaking.  With Europe’s currency on the verge of collapse, Standard and Poor’s has put 15 European nations on negative credit-watch.  Worst of all, the Federal Reserve sees the threat to financial stability, and rather than moving to protect the American people, our own monetary agent is instead moving to shore up the Euro via the International Monetary Fund (IMF).  Every American should be incensed by this move, because what it really offers is an international version of “too big to fail.”  The US has  become so entrenched in the future prospects of the Euro currency that the Federal Reserve now believes bailing it out may be the only way to save ourselves.  If this sounds vaguely familiar, it should, because this is the same basis by which the American people were suckered into backing up and bailing-out those banks deemed “too big to fail” back in 2008 and 2009, under Presidents Bush and Obama, respectively.

Readers may remember a few weeks ago that I reported the swindle being permitted by Treasury, where Euro-based derivatives were now to be backed by the FDIC.  That risky scheme actually puts American tax-payers on the hook for hundreds of billions of dollars. Our Federal Reserve has already lent more than $7Trillion to foreign banks, and now it seems they’re intent upon providing still more.  It’s an obscenity that at this late date, we’re still pursuing a failed policy that puts bad money after worse money.  Why?  Simply put, we are so thoroughly invested in the Euro experiment that if we simply walk away, it will fall, and likely take us with it.  The problem is, as I’ve previously explained, that one cannot save the Euro by this method.  There is only one way in which the Euro might be saved, but it will require something the European people likely will riot to oppose:  Vastly more effective fiscal control.

To approach this problem will require that which governments virtually never do:  Restrain spending, while giving up some controls over the economies of their respective nations.  It will require that they cut social spending, but also government employment dramatically.  That’s where the real problem begins, because people now long-accustomed to a vast and prolific welfare state do not give them up without a fight.  Of course, give them up they will, one way or another, when their system ultimately collapses.

We’re not much behind Europe in that development, and our own credit-rating downgrade earlier this year was simply the beginning.  We face the same choices, although still less severe.  Unfortunately, by entangling us with the Europeans, what the Federal Reserve and all of those banks deemed “too big to fail” that have been major players in the  Euro-zone, what this means is that it will accelerate our own collapse.  We may even go down, not following behind Europe, but holding hands and walking side-by-side with them over the precipice.

It’s anybody’s guess how long this can be extended.  It’s possible we might not make the end of the year, or the end of two years before this collapses, but with the direction in which we’ve been heading, collapse seems to be inevitable.  The one and only saving grace America may have, as distinct from Europe, is a healthy sense of charity by comparison.  Americans remain, even in our current economic distress, the most giving of people.  If we are finally forced to confront out own welfare state, there may be some hope that the nation will find some way at least to feed its people, but for Europe, I have no such hope.

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5 Responses to As Europe Trembles, Federal Reserve Attempts Bail-Out

  1. Tracy says:

    Very good, Mark. I do believe that this is just another step in one world financial control and a one world government. There is only one reason why we would put ourselves in even bigger jeopardy and this is it. This is the only reason that Obama has done everything so far to hurt our country not help it. The United States has to go down with the ship. We are the last truly free country (or at least we were) in the way of their plan. People (most. I get so sick of being in the minority) of course scoff at this notion but take a good look around. Have things gotten any better in the last three years or have they gotten worse? I myself pick the latter. They could have been better, they could have been much better but that is not in the powers that be plan. Why else have the American people been robbed of trillions of dollars? Do any of us know exactly where this money has gone? Why else would the government give away money we don't even have. That we are so deeply in debt and they are still giving money away. Basically, this giveaway to Europe is just an investment. An investment in bringing us down as far as they can take us.

  2. lemonv says:

    Remember those end of the word enders that the world will end on 2012? Well, their prediction might be right this time, but the only difference is we do it financially (dark ages, anyone?) not physically..:-)

  3. SeanStLouis says:

    To elaborate on what Tracy and lemon have said…

    Activities of the FED, especially in recent years, just goes to show you how entrenched and centralized the banking cartel has really become. The Federal Reserve is but the flagship of centralized banking in the West (they are all related, literally..i.e. the families who control them).

    How is it, for instance, that the American People are in debt to our own Federal Reserve? Think about that.

    Presently, we are powerless to stop Them.

    They will continue to monetize debt (steal from us) which will necessarily end the current system and further their goal of absolute control of money in the West and, eventually, the world.

    The only way to stop them is by ending centralized banking in America and whipping Congress into submission. Perhaps a new Declaration of Independence followed by a 21st century revolution in Washington?

    It may sound crazy now, but at this point I'm convinced that severe and drastic measures will be required to stop them from robbing us, the American People, of our future.

    • MarkAmerica says:

      Sean, I agree with much of that.

    • Tracy says:

      Completely agree with you, Sean. The time has passed for any thing other than a revolution. It's about time we realized this. Nothing frustrates me more than someone saying to call our representatives. People, where has this gotten us? Three years of more damage. So much damage that I don't think we can come back from it anymore. I no longer listen to any debates or talking heads trying to decide who is better for the presidency. None of this means anything anymore. We are just kidding ourselves. I read something depressing the other day. I can't remember where. The gist of the story was that it doesn't even matter if Obama gets another four years or not. There are enough people in place all ready to go forward with the destruction. Who believes that he is nothing more than a puppet. He's always on vacation, golfing, playing basketball, taking early dinners. Remember the day he left Netanyahu so he could have dinner with his family? Anyway, until we decide the time has come to fight back we will continue to see the ongoing destruction of America. My heart breaks everyday. Time is getting thin.