The always great Chris Martenson has a great site for those of you interested in really knowing what’s going on with the global economic order.  One of those pieces I’ll share some of here with you so you can get a taste of exactly how “realistic” this economist is:

The Greatest Looting Operation in History

The recently proposed bailout of failed Wall Street banks represents the most brazen attempt at grand larceny ever in our nation’s history. Some have even likened it to financial terrorism, because Wall Street went so far as to repeatedly say; “Either we get this bailout or the entire system goes under.

This echoes, more or less precisely, what happened in the years after Ronald Reagan deregulated the S&L industry in 1982. Within a few short years, excesses and fraud were rampant within the system, and taxpayers were forced to cover the inevitable bust that followed. Many well-connected individuals made out like bandits on sweetheart deals meted out by the Resolution Trust Corporation (RTC).

But this crisis, which has been presented as if it caught everyone by surprise, was no surprise at all. It was years in the making, and the response was carefully planned over the past year. The bailout proposal, as originally presented (on Sat. 9/20/08), was shocking. 

First, there was the sneaky language that the $700 billion figure was the most that could be spent at any one time, meaning that there was no limit on the spending at all. Second, the right of review by any court of law or other administrative body was to be stripped away, a distinctly unconstitutional and anti-American provision if ever there was one. Third, the Treasury Secretary was to be embodied with complete unitary power in selecting who was to be empowered with an open-ended taxpayer checkbook. 

No review, no limits, no questions. 

So what happens when you have vague language and an unlimited budget? Fraud and self-dealing, that’s what. Mark my words, this is the largest looting operation ever in the history of the US, and it’s all spelled out right there in the delightfully brief bailout document that Paulson and Bernanke are attempting to ram through a scared Congress.

Folks, if it looks like a looting operation, smells like a looting operation, and acts like a looting operation, it is a looting operation. 

There are some in Washington DC who ‘get it,’ including Bernie Sanders, who recently stated:


“While the middle class collapses, the richest people in this country have made out like bandits and have not had it so good since the 1920s. […] The wealthiest people, who have benefited from Bush’s policies and are in the best position to pay, are being asked for no sacrifice at all. This is absurd. This is the most extreme example that I can recall of socialism for the rich and free enterprise for the poor.”

Hopefully, for the sake of justice, the bailout will be significantly modified prior to passage. 

However, it won’t really matter much in the end, because there is no possible way for any bailout to succeed, no matter how it’s configured.

Instead, there are three simple truths that have to be recognized, if we are to navigate our way through this crisis:

  1. The United States government is insolvent.
  2. The entire US financial system is insolvent.
  3. There is no combination of new debt/borrowing schemes that can possibly correct #1 and #2.