Your enemy wants you to go into huge amounts of debt, spend down your cash as soon as you get it, and pay more in taxes tomorrow than you do today.
Who is your enemy? Simply put: federal bureaucrats as well as central bank officials in the U.S. Treasury and the Federal Reserve.
I’m not a conspiracy theorist, so I don’t actually think these folks want to bankrupt you or to do you any real harm as an end unto itself.
But motives do not need to be malevolent in order to result in harmful effects.
Today, Sheila Bair, the former chair of the Federal Deposit Insurance Corporation (FDIC), accused current Treasury Secretary Tim Geithner of “protecting” the multinational banking corporation Citigroup (NYSE: C) at the expense of the U.S. taxpayer during the height of the financial crisis.
For someone like Secretary Geithner, protecting Citi isn’t a conflict of interest with taxpayer interests – it’s one and the same thing.
Geithner and people like him – people who make decisions that affect the value of your house, your business, your investments – even the money you hold in your hand – these people believe it is their job primarily to protect elite financial institutions above all else.
They see the banking sector as an offshoot of their central-bank mechanisms, largely because the world’s largest private, for-profit banks ARE hand in glove with the world’s central banks.
These huge global banks have immense influence with the central bankers and federal policy makers here in the U.S. Moreover, all of their interests are aligned.
Their motives are clear:
- Prop up financial institutions no matter what.
- Keep interest rates low to force people to take on debt and to spend money today, lest it be worth less tomorrow.
- Stimulate asset bubbles to create the illusion of growth long enough to fool people into believing we’re still a growth economy.
These policies can and will bankrupt you. They deem you and your finances liable for all debts (current and future) of the federal government AND the entire global banking system.
Don’t believe me? Fine. But look around the world. Banks are STILL getting bailed out – going on three-plus years since the financial crisis. Today in the New York Times, there’s a headline story about Spanish banks being bailed out by the European Central Bank (ECB).
And the ECB is closely tied to the Federal Reserve.
If Spanish banks need a bailout, they get it from the ECB. And if the ECB needs help, they get it in the form of loans from the Federal Reserve.
And if the Federal Reserve needs to print more dollars into existence in order to bail out the European banking system – guess who sees their dollar holdings devalued?
You and me. We’re on the hook for big banks everywhere. And don’t be fooled: they are our enemy.