The power and greed of banks is breaking down economic life

The Financial System Is A Larger Threat Than TerrorismBy Paul Craig Roberts

March 08, 2016 “Information Clearing House” – In the 21st century Americans have been distracted by the hyper-expensive “war on terror.” Trillions of dollars have been added to the taxpayers’ burden and many billions of dollars in profits to the military/security complex in order to combat insignificant foreign “threats,” such as the Taliban, that remain undefeated after 15 years. All this time the financial system, working hand-in-hand with policymakers, has done more damage to Americans than terrorists could possibly inflict.

The purpose of the Federal Reserve and US Treasury’s policy of zero interest rates is to support the prices of the over-leveraged and fraudalent financial instruments that unregulated financial systems always create. If inflation was properly measured, these zero rates would be negative rates, which means not only that retirees have no income from their retirement savings but also that saving is a losing proposition. Instead of earning interest on your savings, you pay interest that shrinks the real value of your saving.

Central banks, neoliberal economists, and the presstitute financial media advocate negative interest rates in order to force people to spend instead of save. The notion is that the economy’s poor economic performance is not due to the failure of economic policy but to people hoarding their money. The Federal Reserve and its coterie of economists and presstitutes maintain the fiction of too much savings despite the publication of the Federal Reserve’s own report that 52% of Americans cannot raise $400 without selling personal possessions or borrowing the money.


Negative interest rates, which have been introduced in some countries such as Switzerland and threatened in other countries, have caused people to avoid the tax on bank deposits by withdrawing their savings from banks in large denomination bills. In Switzerland, for example, demand for the 1,000 franc bill (about $1,000) has increased sharply. These large denomination bills now account for 60% of the Swiss currency in circulation.

The response of depositors to negative interest rates has resulted in neoliberal economists, such as Larry Summers, calling for the elimination of large denomination bank notes in order to make it difficult for people to keep their cash balances outside of banks.

Other neoliberal economists, such as Kenneth Rogoff want to eliminate cash altogether and have only electronic money. Electronic money cannot be removed from bank deposits except by spending it. With electronic money as the only money, financial institutions can use negative interest rates in order to steal the savings of their depositors.

People would attempt to resort to gold, silver, and forms of private money, but other methods of payment and saving would be banned, and government would conduct sting operations in order to suppress evasions of electronic money with stiff penalties.

What this picture shows is that government, economists, and presstitutes are allied against citizens achieving any financial independence from personal saving. Policymakers have a crackpot economic policy and those with control over your life value their scheme more than they value your welfare.

This is the fate of people in the so-called democracies. Any remaining control that they have over their lives is being taken away. Governments serve a few powerful interest groups whose agendas result in the destruction of the host economies. The offshoring of middle class jobs transfers income and wealth from the middle class to the executives and owners of the corporation, but it also kills the domestic consumer market for the offshored goods and services. As Michael Hudson writes, it kills the host. The financialization of the economy also kills the host and the owners of corporations as well. When corporate executives borrow from banks in order to boost share prices and their performance bonuses by buying back the publicly held stock of the corporations, future profits are converted into interest payments to banks. The future income streams of the corporations are financialized. If the future income streams fail, the companies can be foreclosed, like homeowners, and the banks become the owners of the corporations.

Between the offshoring of jobs and the conversion of more and more income streams into payments to banks, less and less is available to be spent on goods and services. Thus, the economy fails to grow and falls into long-term decline. Today many Americans can only pay the minimum payment on their credit card balance. The result is massive growth in a balance that can never be paid off. It is these people who are the least able to service debt who are hit with draconian charges. The way the credit card companies have it now, if you make one late payment or your payment is returned by your bank, you are hit for the next six months with a Penalty Annual Percentage Rate of 29.49%.

In Europe entire countries are being foreclosed. Greece and Portugal have been forced into liquidation of national assets and the social security systems. So many women have been forced into poverty and prostitution that the hourly price of a prostitute has been driven down to $4.12.

Throughout the Western world the financial system has become an exploiter of the people and a deadweight loss on economies. There are only two possible solutions. One is to break the large banks up into smaller and local entities such as existed prior to the concentration that deregulation fostered. The other is to nationalize them and operate them solely in the interest of the general welfare of the population.

The banks are too powerful currently for either solution to occur. But the greed, fraud, and self-serving behavior of Western financial systems, aided and abetted by governments, could be leading to such a breakdown of economic life that the idea of a private financial system will become as abhorent in the future as Nazism is today.

Dr. Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts’ latest books are The Failure of Laissez Faire Capitalism and Economic Dissolution of the West, How America Was Lost, and The Neoconservative Threat to World Order.


13 Responses to “The power and greed of banks is breaking down economic life”

  1. Tuesday, March 8, 2016 – New Moon in Pisces

    New Moon Phase: begin, intend

    Moon in Pisces

    Aspect of the Aeon Sophia (Wisdom): Tara, Goddess Who Guides (different Wisdom Goddesses will be “on duty” daily this lunar month)

    Aspect of the Aeon Thelete (Will/Desire): Seth, God of the North, God of Enlightenment

    Skill: open to things being rearranged or placed in other places (change)

    True Alignments: feeding the soul, taking stock or measure (especially of emotions or feelings about things), loyalty, spiritual awakening or epiphany, preparations, patience, getting back to the basics or simplicity of something, team efforts, recognizing what is not working well or functioning, reliable for the road, rewards, comfort, aiming high

    Catalysts for Change: reversals, crashing down, misplaced trust, causing or re-experiencing a wound, comparisons to others, out of resonance, lack of substance, lost hope, over-analyzing one’s self, artifice, irritable, bald face lies, lured off track, seeking recognition and attention, escapism

    Sabian Symbol for the Solar-Lunar Month: “a table set for an evening meal” (setting things in place, preparations, returning “home”)

    Sabian Symbol for the Solar-Lunar Year: “the music of the spheres” (recalibration of human consciousness)

    The New Moon in Pisces, the last cycle of this solar-lunar year, enters at 8:54 pm ET/1:54 am UT. As mentioned in the audio recording overview (, the Sabian symbol or prominent energetic for the month is “a table set for an evening meal.” A place in our hearts is set for us to return – to return “home.”

    This lunar month puts our hearts and minds into a higher, more orderly state. The energy is designed to lift us higher, placing us into ease.

    Because it is the last solar-lunar month before the New Year (which begins April 7 with the New Moon in Aries), it naturally gets things ready. This entire month is like a month-long Balsamic Moon phase, the time when the veils between the worlds are thinnest and our connection with Source is strongest. Balsamic cycles “prepare the field” by ploughing up and removing the psyche’s “weeds” – things that limit us or choke out our growth. So our “fields” or our “table” or our “mindset” will be perfectly set and ready for the New Year (April 7, 2016 – March 27, 2017) and its energy of the Sabian symbol “the magic carpet of Oriental imagery.”

    Wise owls recognize that there are two purposes for a magic carpet: 1) an adventure and 2) to transcend whatever is happening on the ground.

    This month prepares us to take our place on the carpet. Next month, the ride begins.

    Four primary themes unfold this month in service of the mission to order, structure, and adjust our minds (for the future). The themes tend to make themselves known with the circumstances and conditions of our lives today. The day of the New Moon is the day all of the month’s energetics are in play (or “played” as in music). The notes of the planets make different formations or harmonies. The four themes that play out today and then gradually unfold this month are:

    1- REVERING – We discover our blessings and say grace. Beautiful things are set in place for each of us. What a gift. We come to appreciate things in a different way this month because of this energetic.

    2- AIMING – The grandest ideas and ideals are pinpointed. The quest for answers is set in motion and targeted for manifestation. The highest, most civilized, most refined values and foundations are supported. Attempts to induce chaos are taken by a caring hand and re-ordered where they belong, in order to serve the beauty and value of life.

    3- TRANSCENDING – The proper way of things is arranged with additions and subtractions. Ideas, feelings, beliefs, projects, etc. are revamped in order to make things better. The things that pose potential future issues or challenges are seen. What does not belong on our table is being put where it does belong. Everything comes to its place by month’s end.

    4- EMOTIONALITY – The element of water rules this cycle, and it is extremely powerful with the combinations of the planets being activated. This runs the spectrum of gentle spring rain, thunderstorms, tropical storms, to even hurricanes or cyclones of emotions. This month, we remember that we are much more than our emotions and that our emotions are indicators. Emotions are alert systems, catalysts for creativity, impetus for action, and, together with the mind, our navigation system. Best bet when emotions get overwhelming this month is going above for a better view (Neptune at “an aviator in the clouds”) or diving underneath them for safety (Mars at “the ocean covered with whitecaps”).

    It’s a beautiful gift of a month. Let’s remember to say thanks every day.

    Note: You may want to print or bookmark this page for reference throughout the month, as these are the primary energetics that will be in effect. Today’s report should serve to “order” things on your “table” – your life.

    Here are the Sabian symbols for the planets’ locations at the time of the New Moon:

    Sun and Moon: a table set for an evening meal

    Earth: a caravan of cars headed for promised lands

    Mercury: illuminated by a shaft of light, a large cross lies on rocks, surrounded by sea and mist

    Venus: a garage man testing a car’s battery with a hydrometer

    Mars: the ocean covered with whitecaps

    Jupiter: a swimming race

    Black Moon: a child giving birds a drink at a fountain

    Saturn: an Easter sunrise service

    Chiron: a little white lamb, a child, and a Chinese servant

    Uranus: the magic carpet of Oriental imagery

    Neptune: an aviator in the clouds

    Pluto: the Union Jack flies from a new British warship

  2. ian says:

    Who owns the banks?. I’ve forgotten.

    • beLIEve says:

      SOLVENT Banks………………
      are owned by so-called……. CORP-o-RAT-ions….. i.e……..a conglomeration of Private individuals.

      INSOLVENT Banks………
      SHOULD……. be “owned” by the CORP-o-RAT-ions who ….STOLE….all the assets .
      the….UNLAWFUL……FASCISTS…….i.e….their mates in so-called ….”government”…..which we all now know is a …….CORP-o-RAT-ion………….DUMP……TOXIC ……BANKS….onto the ……taxpayer.


      So, if the SCUM have asset stripped the Bank…….then you and I own it ………APPARENTLY ! !$ £!


      • Hi Kingel great comment . If im unable to goto birmingham would buying yuan be a good answer? Because it will be gold backed wont it. Its the whole reason why trouble might lie ahead.
        Ive asked in banks in the town whete i live, none sell silver, recommended i goto bank of england for commemorative coins.
        I dont want commemorative coins with the Khazars face on them.
        So ill try to goto.bham soon.
        If not, what do you reckon. Buy yuan? But uk shops wont accept yuan if i want to buy food.
        I was thinking russian rubles too….since putins been stockpiling gold..
        But again yuan and rubles, waitrose will just laugh if i pull those out next month. Or should i be thinking about leaving the uk next month altogether, dyou think?

      • ian says:

        I agree with Adam, great comment.

    • Hello Ian mate hope youre well. i only have a small phone at present so cant really do much research.
      However if you find out anything on this most burning topic re Glyphosate or even GM…rice or whatever they use. Or a solid notice saying no GM used, please reply with it on here Ian. It is the anglo saxon males Divine Right to enjoy unpolluted non testes attacking cancer causing beer. Beer must have sustained the anglo saxon celts against many an invader since Ancient times

      I remember a newspaper article perhaps 3 yrs ago. Simon Cowell, we know who and what he is. Proclaimed that loaded onto his private jet for barbados, boxes of Sapporo lager in the silver cans , were taken along. Cowells favourite.
      Coukd this be a clue Ian? Because surely he would know to avoid the glyphosate loaded beers. Ive now given up, even Asahi which i suspect also is toxic.
      Maybe i should grab this opportunity to become teetotal. ;-(
      But the thought came to me about Cowell.
      Morrissons sell it and a cans not cheap, 2.34 each i think. But its 640ml can i think, which is substantial.

      Sapporo i think, uses rice which may be a separate arsenic issue. Maybe Cowell no longer drinks it who knows.
      Come to think of it, do alk the high level insiders NOT drink? They seem to lead lives of excess. Are they all given lists or told at illuminati meetings what food and drink to avoid?
      This must be going on.
      It must be an.unwritten rule Ian, expensixe restaurants like Nobu , which i woukdnt be seen dead in even if i had the money.
      Use non gmo.ingredients.
      A waitrose manager assured me all rgeir meat is fed feed. I wonder if he was heing 100% truthful or said it just to get me out the store.
      However i sense waitrose is taking the lead against gmo food.

      But Sapporro lagers the reason im messaging as well as saying hi. I digressed onto GMOs

    • beLIEve says:


      The recommendation by integrity entities in the world of finance, yes there are still a few ….Egon von Greyerz….Peter Schiff……Max Keiser……to name three……… to…. BUY PHYSICAL (not paper certificates) gold/silver…….. and STORE it OUTSIDE the BANKING system.

      Bank deposit boxes are “apparently” UN-SAFE.
      Should a bank collapse the SAFETY DEPOSIT boxes become the property of …..TIER ONE CREDITORS…….. not ….DEPOSITORS !

      It is highly recommended that you ….BUY PHYSICAL …..SILVER or gold…….NOT PAPER….. currencies.

      The PAPER currencies including Yuan and probably the Ruble, Sterling, Dollar and others are…..IN A DEVALUATION RACE to the bottom.

      Leaving the UK next month ?
      I can’t answer that one, I wish I could.
      I can’t tell whether the collapse will be a slow death or, an unconTROLLed and rapid demolition.

      I WAS of the opinion that once China pegs the Yuan to Gold, it would signal a pretty rapid decline BUT, the GOLD-YUAN peg is not being talked about, in spite of the FACT the finance world knows about it.

      I assume THEY don’t want to cause panic ALTERNATIVELY ….THEY may wish to keep the populace in the dark about …..CONVERTING their PAPER SAVINGS into precious metals.

      I am however, beginning to wonder if their are ….forces afoot……..integrity entities…….who are attempting to retain some sense of order for the unawakened and financially uninformed, reference the …….FINANCIAL CATASTROPHE…….CATASTROPHIC a$hkeNAZI tsunami of THEFT………..that is about to hit us ?

      I cannot foretell the timing of events.

      Prepare for the worst but…..HOPE for the best.

      • Thankyou Kingel

        ” I am however, beginning to wonder if their are ….forces afoot……..integrity entities…….who are attempting to retain some sense of order for the unawakened and financially uninformed, reference the …….FINANCIAL CATASTROPHE…….CATAST. ”

        I am encouraged by this thanks

      • Thankyou fir this interesting ineresting interesting information.

  3. Dublinmick says:

    I hate to be a kill joy but sapporo is from japan. Ever heard of Fukushima? It may be gmo free but not much of anything can escape the radioactivity in japan now

    I wouldn’t even buy a new japanese car made in japan at this point.

    • And here was me hoping, was it Aldous, or someone else, said nuclear bombs, and plant damage such as Fukushima was a scaremongering deception. I havent wanted to look too deeply beyond that because if all of the Pacific is dead. Thats too horrific for words.
      In 2011 i wasnt alarmed, i was sad.for the loss of life of course but put it down to genuine natural disaster.
      Now in 2016 i realise this earthquake was done by the Khazars. And the fukushima thing too.
      The 2011 disaster then suddenly becomes horrific and terrifyingly sad, to realise human hands are behind this. My God.

      Why hasnt a full scale Fukushima happened in the USA Dublinmick if there arent sec service white hats in existence fully aware and fighting the Khazarian evil? Fukushima in usa would have happened long ago.

      Ill ditch the Sapporro then. Unless it gets brewed under license elsewhere? But how do i know it has no glyphosate in. I was going to splash out and buy pure matcha green tea powder as its an apparently great drink for its ecgc antioxidant, as well as revving up our own bodies antioxidant enzymes.
      I suppose ill have to scrap that too. Stop drinking green tea.
      Ok ill give french merlot a shot. If Sapporos brewed in europe i might give it a shot.
      But will take this as my cue to cut alcohol down generally. If i can just get in a mental routine to, i have the will to.

      Lets not forget this, for it surely must be true dm. SOMEWHERE, SOMEONE has the technology to clean the oceans and remove all the radioactivity. If stories about the SSP are true, then it exists.
      Let us hope the cabal will fall in this special Pluto Caprucorn astrological time, last seen in.the French Revolution period. Pluto apparently is a relentless destroyer of lies and evil and the cabal stand no chance now since they are on a much.higher perch now in 2016 thetefore a much harder fall.

  4. Lynn says:

    And if you think we will go quietly to slaughter by death and starvation…you ain’t seen nothing yet. Those Gold chairs her Maj resides in will be torn apart. Their houses will burn and they will wish they had never been born.

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