by Scott Creighton
The Federal Reserve Bank is forking over another $37.8 billon to AIG, the insurance company whose CEO’s were just grilled by a Congressional Sub-Committee for greed and malfeasance, just 3 weeks after the country was stood on it’s end when the Fed announced they were giving them $87 billion and just 3 days after the story broke about AIG executives spent $440,000 dollars of that money on a retreat the day after they got the money.
“The Federal Reserve Board said Wednesday that it would provide up to an additional $37.8 billion to the insurance giant, the American International Group, to help the company deal with a continuing liquidity crisis.” New York Times
Last month this country lost 159,000 jobs and right now, economists are predicting a deep recession lasting for a very long time in our very near future; all of this, and Paulson is shoveling money at the wealthy as fast as he possibly can.
“No turnaround is seen before 2009 or later. And there is a wide divergence of opinion on the future of this bear market, which feels unlike any other because of the $700 billion federal bailout and the collapse of investment banks.” MSNBC
“The International Monetary Fund, in its bleakest forecast in years, said on Wednesday the world economy was set for a major downturn with the United States and Europe either in or on the brink of recession.” Reuters
The $700 billion is actually closer to $850 billion and really has only a cap for the expenditures out at one time, so it may be even more than that.
But even more disturbing is a story that came out yesterday in the New York Times that said in addition to the Fed lowering the Prime interest Rate by a full half point, they were talking about increasing the size of it’s Term Auction Facility from $300 billion to $600 billion and extending the duration of short-term loans by almost 3 fold.
In order to pay for this, the Fed is going to have to print more money.
“To pay for its burgeoning responsibilities, the Fed has no choice but to keep printing more money.” New York Times
And if this wasn’t enough, there is now talk floating around of the Fed and the U.S. Tax Payer dumping billions of dollars into the hobbled stock market in a last ditch effort to prop it back up by buying potentially worthless stock.
What this will do, is use our money, that could be going to rebuild the economy through jobs and health-care incentives and other useful efforts, it will take that money, sink it into the stock market to artificially inflate the stock prices so that the large investment houses and brokers can sell off high, and get out, before the stock market crashes for real.
That will leave the U.S. taxpayer holding 100’s of billions of dollars worth of useless stock, and leave these same wealthy CEO’s flush and ready to weather the storm of the oncoming depression. All of this, when almost every single authority on this economic mess says it was their fault in the first place.
“The IMF blamed lax economic and regulatory policies for the current global woes, saying they probably allowed the global economy to “exceed its speed limit.” At the same time, market flaws combined with policy shortcomings to allow stresses to build.” Reuters
By design or by accident, the people responsible for this global catastrophe are the very ones that Hank Paulson, Ben Bernanke, Congress, and the Bush Administration are trying to bailout with the last few bucks we have.
Now if this isn’t sounding like the rats are leaving the ship and stealing everything that isn’t nailed down on the way, I don’t know what does, or could. This is obvious now, people. They are purposefully collapsing our economy and robbing us blind in the process.
Why you ask?
Well, maybe because this was the plan all along, or because Obama is leading the polls and President Bush’s Directive 51 (Revised Continuity of Government Plan in the event of national disaster, terrorist attack, or Economic Crisis) is waiting in the wings. Who knows why. The point is, it’s happening.