If We Don’t Break Up the Big Banks, They Will Manipulate More and More of the Economy … Making Us Poorer and Poorer

Interest Rates Are Manipulated

Interest rates are rigged:

Derivatives Are Manipulated

The big banks have long manipulated derivatives … a $1,200 Trillion Dollar market.

Indeed, many trillions of dollars of derivatives are being manipulated in the exact same same way that interest rates are fixed: through gamed self-reporting.

Currency Markets Are Rigged

Currency markets are massively rigged.

Commodities Are Manipulated

The big banks and government agencies have been conspiring to manipulate commodities prices for decades.

The big banks are taking over important aspects of the physical economy, including uranium mining, petroleum products, aluminum, ownership and operation of airports, toll roads, ports, and electricity.

And they are using these physical assets to massively manipulate commodities prices … scalping consumers of many billions of dollars each year.

Gold and Silver Are Manipulated

The Guardian and Telegraph report that gold and silver prices are “fixed” in the same way as interest rates and derivatives – in daily conference calls by the powers-that-be.

Oil Prices Are Manipulated

Oil prices are manipulated as well.

Everything Can Be Manipulated through High-Frequency Trading

Traders with high-tech computers can manipulate stocks, bonds, options, currencies and commodities. And see this.

Manipulating Numerous Markets In Myriad Ways

The big banks and other giants manipulate numerous markets in myriad ways, for example:

  • Engaging in mafia-style big-rigging fraud against local governments. See this, this and this
  • Shaving money off of virtually every pension transaction they handled over the course of decades, stealing collectively billions of dollars from pensions worldwide. Details here, here, here, here, here, here, here, here, here, here, here and here
  • Pledging the same mortgage multiple times to different buyers. See this, this, this, this and this. This would be like selling your car, and collecting money from 10 different buyers for the same car
  • Pushing investments which they knew were terrible, and then betting against the same investments to make money for themselves. See this, this, this, this and this
  • Engaging in unlawful “Wash Trades” to manipulate asset prices. See this, this and this
  • Participating in various Ponzi schemes. See this, this and this
  • Bribing and bullying ratings agencies to inflate ratings on their risky investments

The Big Picture

The big picture is simple:

  • The big banks manipulate every market they touch
  • The government has given the banks huge subsidies … which they are using for speculation and other things which don’t help the economy. In other words, propping up the big banks by throwing money at them doesn’t help the economy

Get it? Break up the big banks, or they will continue to take over and manipulate more and more of the economy … increasing their profits while making everyone else poorer.

This entry was posted in Business / Economics, Politics / World News. Bookmark the permalink.
  • gozounlimited

    Maybe we should examine our “State Of Mind” ….. http://www.youtube.com/watch?v=i1AAuB5P-V0

  • Carl_Herman

    Wow, GW; great work! Thank you.

    This documentation kicks assets, dude :)

  • Tonto

    Break up the big banks?

    This sort of big government approach is exactly what I would expect from the public banking crowd. The idea that the government should step in and break up the big banks is un-American and anti-capitalist. It is no less un-American and anti-capitalist than is Bernanke’s bailing out the big banks at the urgent behest of our cowardly government in Washington D.C.

    No. The big banks should be allowed to go bankrupt. The disruption to the world economy is exactly what will cure the ongoing destruction of American capitalism, a profit-driven system of commerce that has guided the world into the 21st Century.

    The big government bailouts are an abomination of American capitalism. The big government bailouts are an abomination of our republican system of government. Without these ongoing bailouts not one of the big banks has the financial where-with-all to rig the markets. Some of them will quickly go bankrupt when the punch bowl is taken away. And good riddance to them too.

    The only way to restore the American capitalist system, is to stop the money printing. Let interest rates rise, for money is in demand. Let the big banks fail, as well they should. The economy certainly cannot be worse than they are right now. Look closely at the images of Detroit. The whole world is headed in that direction due to all the money printing taking the incentive away from entrepreneurs to do anything more than sit back and wait for the next bucket of slop to end up in the trough.

    Bernanke is a policy slave Washington D.C. And Washington D.C. has expectations that do not accord with reality.

    • Jö Miller

      “Without these ongoing bailouts not one of the big banks has the financial where-with-all to rig the markets.”

      But that can’t be true because J.P. Morgan Chase, the biggest of them all, didn’t even need a bailout to begin with.

      • Tonto

        LoL Without the FED stepping in to prevent a derivatives meltdown, every single one of the big banks would have failed, one right after the other. Writers have rightly pointed out that this is the extortion-argument the T.S. Hank Paulson used to rationalize the initiation of the bailouts of the TBTF. These ongoing bailouts have continued in a myriad of forms, with the bottom dollar of their FED support increasing every quarter since!

        And it’s a fraudulent argument. All the TBTF banks should be left to fend for themselves. That is capitalism. Anything else is simply rank theft. Hank Paulson, when he was Treasury Secretary, simply used this extortion argument to get the ball rolling. He essentially said, the world would end if $600 billion dollars wasn’t handed over to the TBTF banks by the FED (TARP). And the whole thing has been zooming upward out of control ever since. In -addition- to the ongoing bailouts, Bernanke is currently buying (with newly created money) $85 billion dollars worth of Treasury debt and bad debt from the TBTF banks every month right now, all of it only to keep increasing the ongoing bailouts of all the TBTF banks, -so they do not fail-!

        JPM wouldn’t last a week if the FED wasn’t supporting what the TBTF banks are doing.

        Pulling the FED support is the right way to “break up” the TBTF banks. They are not powerful enough to manipulate commodities markets without the collusion of the FED that funds them. Having some judge or legislative committee initiate a new process of breaking up the TBTF banks is only going to end up surrendering that process to even greater corruption. Market forces can do the job, while minimizing the corruption possibilities Washington D.C. is know for capitalizing upon.

        These public banking journalists haven’t a clue the can of worms they would be pouring into the TBTF stew, by getting government involved with breaking up the TBTF banks. LoL! Just think of the endless corruption possibilities!

        THIS WOULD BE ENDLESSLY PRICELESS FROM THE POINT OF VIEW OF SOMEONE LIKE CHUCK SCHUMER! HUNDREDS OF BILLIONS OF DOLLARS WOULD BE STOLEN IN THE PROCESS, ALL OF IT COMING RIGHT OUT OF THE GOVERNMENT’S POCKETBOOK.

        • CJ

          While leaving the banks to their own is more in line with a purely capitalistic market, the banks (and many other big corporations) are not playing pure capitalism anymore. They control too many pieces of the pie. It is monopolistic and greedy. While the FED shouldn’t be giving them cheap credit, keeping the banks as big as they are is not good for anyone but their shareholders.

          • Tonto

            Huh? What are you talking about?

            The only reason the TBTF banks are still in business is because of Bernanke’s mistake in thinking he could save them and the economy with the same moves.

            Bernanke has only made matters worse. Look around. How does your Main Street look? Mine is vacant.

            It’s time to pull the rug out from underneath both Bernanke’s endless QE and the TBTF by letting interest rates rise to market levels.

            It is not time to “break-up” the TBTF, as the article recommends. That approach will only insure their continued existence and sustenance by the hand of Big Government.

  • Fakir Smith

    And by the same logic a government too big should also be broken up.

    This is common sense folks. Put all your eggs in one basket and if something happens to that basket? You’re screwed.

    I can’t believe this is even a discussion.

  • wunsacon

    GW, I would like to suggest creating one or more graphics out of
    this. Maybe show an org chart for a bank and, on each business unit,
    create links to open a side frame summarizing the corruption.

    We need some “corruption maps”, for banks and later for politicians, to help readers more easily digest this large volume of information.

  • Freedom Unfiltered

    3 Step Solution: 1) Eliminate government-granted
    monopoly privilege over the money supply and allow private, competing
    currencies. 2) End the government-granted protection that allows the big banks
    to get so big without market oversight. 3) End government-granted subsidies and
    bailouts when banks bet and lose. The ”big banks” are merely a symptom to the
    much greater problem of government-granted privilege to special interest
    groups. The financial industry is one of the most “regulated” by the government. It’s government meddling in the economy that is the real problem.

    • wunsacon

      >> 1) Eliminate government-granted monopoly privilege over the money supply and allow private, competing currencies.

      What do you mean by “government-granted”?

      The government outsourced the money supply to the “private” sector, to the banks themselves. Through accounting changes, they effectively create as much credit as they like, either to meet loan demand or simply to give them ZIRP with which to buy up assets and commodities for themselves. (And “credit” is as good as cold cash, at least until the Ponzi scheme ends and people discover the loans can’t be repaid.)

      (Maybe that IS what you mean by “government-granted”…)

    • wunsacon

      >> 1) Eliminate government-granted monopoly privilege over the money supply and allow private, competing currencies.

      What do you mean by “government-granted”?

      The government outsourced the money supply to the “private” sector, to the banks themselves. Through accounting changes, they effectively create as much credit as they like, either to meet loan demand or simply to give them ZIRP with which to buy up assets and commodities for themselves. (And “credit” is as good as cold cash, at least until the Ponzi scheme ends and people discover the loans can’t be repaid.)

      (Maybe that IS what you mean by “government-granted”…)

  • paulsnx2

    Notice how we get stories like this on BLOGS but not the MSM? Corporate Interests are tied so closely to Big Banking and Central Banks that our governments are now nearly powerless to act.

    Powerless to act.

    Let that sink in. It may be too late. We may very well be living in a time where governments are appointed by Banking and Corporate Interests with only the tiniest veil of Democratic dressings. Governments can’t act against the Banks because they have no independence from the Banks.

    Perhaps new distributed financial systems like Bitcoin based on Cryptographic signatures and public distributed ledgers can actually break the backs of these thieves. But don’t hold your breath.

    Bitcoin might be our last and best hope. A little protocol for making financial transactions over the Internet written by some unknown geek or geeks, and distributed as open source to run on a P2P network. And if that observation doesn’t scare you (that something so tiny and geeky is our best hope) then I think nothing will.

  • Chaos

    In capitalism we have regulations so that everyone plays by the same rules. This ensures a meritocracy instead of the bullshit we have today.

    The end result? Constant financial pressure on the middle class because middle class pays for it all. The poor have no money and are already leeching of the system. The rich use tax loop holes and offshore accounts or up end getting screwed as well unless they are a bank, a large corporation, or a politician.

    Also, has anyone found the 9 trillion dollars that went missing earlier this year yet? Wonder who got all that money…

  • John Camilli

    I absolutely love the way you present information concisely, thoroughly, and non-speculatively, with abundant sourcing to empirically verify your assertions. I, and a group of eager activists, are attempting to start a site of our own, with similar intentions, and likely much similar content. There can never be too many good sources of information to combat the disinformation and reach an ever wider audience, until we reach the threshhold at which people get up, march into the streets, and throw their officials out of office to replace them with something that truly serves The People. When we are up and running, I will drop you a line so that we can bring each other a wider audience and aid each other in the process of researching and efficiently presenting this type of vital information. Much respect.

  • failedevolution

 

 

Twitter