Yesterday was the last day for everyone in the bankrupt banking system to comment at the FDIC web site about new rules and regulations that our desperate government is now offering in a futile attempt at getting our debt machine churning out dollars again. For the last three years, on this very day, November 15, I have hammered away at this very topic: excess debt creation for the US consumer and business markets.
I correctly saw this as a trap. A grave danger to the security of our nation. As a tremendous destructive force that had to be controlled or even stopped. Instead, not only do we get MORE debt, our ‘bankers’ want to be totally secure while we take on ALL the risks. This means our taxes must insure payment of all the debts our gnomes wish to create from now on. This means, if we go bankrupt, we cannot discharge these debts. We still will have to repay. For these banking gnomes are selling our new debts to the same people they sold them to in the past: Asia and OPEC and the pirate community! Gads.
Bloomberg.com: Banks See Flaws in FDIC Program to Guarantee Debt
JPMorgan Chase & Co., Bank of America Corp. andGoldman Sachs Group Inc. are among banks that told the government its program to back their bonds is flawed because it doesn’t have a strong enough guarantee.
The Federal Deposit Insurance Corp. guarantee for repayments in default needs to be clearer, fees are too high and banks need more freedom on whether to opt in, according to a letter from law firm Sullivan & Cromwell LLP posted on the agency’s Web site on behalf of nine banks. The comment period on the interim rules for the FDIC’s Temporary Liquidity Guarantee Program ends today.
The comments shed light on why almost a month after the government placed its guarantee behind new bank bonds, no U.S. company has yet tested the market. By contrast, under a similar program in the U.K., banks have issued the equivalent of 13.9 billion pounds ($20.6 billion) of government-guaranteed bonds.
“A guarantee obligation that is anything less than an obligation to pay all amounts due could severely curtail the demand for these securities and might impair a bank’s access to guaranteed funding,” New York-based Sullivan & Cromwell said in the Oct. 31 letter.
First of all, this letter from the Sullivan & Cromwell lawyers came online at the very last possible minute. This was deliberate, I would guess. This way, the outrageous demands from the Goldman Sachs and JP Morgan gnomes and the various pirate outfits would not raise a huge ruckus before comments close. We can’t ‘fight’ this latest attempt at robbery. This banking heist is being foisted upon the US people. Who are already very suspicious and rightfully so.
This news was just too much. At every possible turn, our own Treasury officials are cooperating with the Federal Reserve and our gnome community to privatize the profits and nationalize all the risks inherent in banking. Then, and only then, will they loan to us!
Talk about cheeky! They need this guarantee because they know what lies in the dark shadows of the future: the bankruptcy of our government.
Bloomberg.com: banks want total insurance of even interest rate profits!
Without rules that “fully and irrevocably” guarantee repayment, the size of the program and the number of banks that participate will be “significantly below the expectations of the FDIC, the industry, and all interested parties in the health of the U.S. banking system,” wrote Fred Sherrill, managing director at Credit Suisse Securities USA LLC in New York….
Interim rules for the government program fall short of traditional bond guarantees because they leave the timing of principal and interest payments in the event of a bank default open to changes by bankruptcy courts, Sherrill wrote.
“We are optimistic that, with appropriate modifications, the program will be successful in helping to mitigate systemic fear in the interbank and capital markets,” he wrote.
Standard & Poor’s issued a report Nov. 10 supporting the banks’ position on the guarantee.
“We do not view the issue of timeliness as a mere technicality,” according to the report from the New York-based unit of McGraw-Hill Cos.
This whole mega-trillion dollar future obligations being ‘insured’ by the US government who stands in for you and me and all of us, the banking gnomes want this to NOT be in US courts! They want this ‘insurance’ set in CEMENT. This way, we cannot escape paying for THEIR loans THEY hand out to ANYONE ON THIS PLANET. Got that? Anyone and anywhere.
Way back in the Stone Age, around 1931, our gnomes wanted this. They didn’t get it. They all then went bankrupt. The US government then launched the FDIC. But they cautioned the gnomes that this was NOT going to be an open window so they could make infinite loans. For back in the Stone Age, back in the 1930’s, our elders knew perfectly well, the banking gnomes would go to infinity in an eye blink if they were allowed to make infinite loans.
The insurance limits of the FDIC were restrictions. Set up to prevent endless lending that is increasingly reckless. Gnomes are infamous for reckless lending. They can’t help it. This makes them richer. So of course, they would dearly love to be able to simply write up loans, nonstop. They had a great scheme going with foreign powers this last 10 years. They could unload any and all lending they wrote by selling it to the countries running up huge trade surpluses with the US.
This round-robin of lending to the US so we could buy foreign goods and commodities was a great game which has collapsed. Due to the US being too deep in debt. Now, we enter a New World Order: everyone overseas knows that our days are numbered. They are not ready for us to fail. They want this to continue until 2020. This is the Chinese 50 Year Plan which the Politburo wrote up back in the very early 1980’s. We are a tad ahead of schedule here.
So they all want to buy our debts some more. But they don’t want to do it with no guarantee of INTEREST RATE PROFITS. Namely, they want to keep ahead of inflation. And worse, when we go bankrupt, they want to NOT be in our court system. And even worse, they want to be AT THE HEAD OF THE LINE when we do go inevitably bankrupt! This is a legal matter.
This way, they get paid first, not last. The US retirees go down a few rungs on the ‘pay up’ ladder. We have dumped 100% of our Social Security surplus into our National Debt black hole. Remember the push during the 1970’s and 1980’s that egged voters into allowing SS withholding taxes to nearly double?
This supposedly was so we could pay for the baby boomers retiring. But all this loot was put in the government red ink sea and to recover the interest due on this gigantic sum, over $5 trillion, the retirees have to be first in line when the US gives up running on red ink in about 2020.
Here is the Sullivan & Cromwell LLP letter to the FDIC demanding infinite insurance of all profits:
Continued>>>
http://emsnews.wordpress.com/2008/11/15/banks-ask-for-total-insurance-from-fdic/#more-235
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