15 Reasons Why U.S. Economic Crisis Is AnEconomic Consolidation By Elite BankingPowers

15 Reasons Why U.S. Economic Crisis Is An Economic Consolidation By Elite Banking Powers The American Dream March 6, 2012 Is the United States experiencing an “economic crisis” or an “economic consolidation”? Did the financial problems of the last several years “happen on their own”, or are they part of a broader plan to consolidate financial power in the United States? Before you dismiss that possibility, just remember what happened back during the Great Depression. During that era, the big financial powers cut off the flow of credit, hoarded cash and reduced the money supply.

Suddenly nobody had any money and the economy tanked. The big financial powers were then able to swoop back in and buy up valuable assets and real estate for pennies on the dollar. So are there signs that such a financial consolidation is happening again?

Well, yes, there are.

The U.S. government is making sure that the big banks are getting all the cash they need to make sure that they don’t fail during these rocky economic times, but the U.S. government is letting small banks fail in droves. In fact, in many instances the U.S. government is actually directing these small banks to sell themselves to the big sharks.

So is this part of a planned consolidation of the U.S. banking industry? Just consider the following 15 points…. #1) The FDIC is planning to open a massive satellite office near Chicago that will house up to 500 temporary staffers and contractors to manage receiverships and liquidate assets from what they are expecting will be a gigantic wave of failed Midwest banks.

#2) But if the economic crisis is over, then why would the FDIC need such a huge additional office just to handle bank failures? Well, because the economic crisis is not over. The FDIC recently announced that the number of banks on its “problem list” climbed to 702 at the end of 2009. That is a sobering figure considering that only 552 banks were on the problem list at the end of September and only 252 banks that were on the problem list at the end of 2008. #3) Waves of small and mid-size banks are going to continue to fail because the U.S. housing market continues to come apart at the seams. The U.S. government just announced that in January sales of new homes plunged to the lowest level on record. The reality is that the U.S. housing market simply is not recovering. #4) In fact, a lot more houses may be on the U.S. housing market very shortly. The number of mortgages in the United States more than 90 days overdue has climbed to 5.1 percent. As the housing market continues to get increasingly worse, it will put even more pressure on small to mid-size banks. #5) More than 24% of all homes with mortgages in the United States were underwater as of the end of 2009. Large numbers of American homeowners are deciding to walk away from these homes rather than to keep making payments on loans that are for far more than the homes themselves are worth. #6) If all that wasn’t bad enough, now a huge “second wave” of adjustable rate mortgages is

scheduled to reset beginning in 2010.

We all saw what kind of damage the “first wave” of adjustable rate mortgages did. How many banks are going to be able to survive the devastation of the second wave? #7) In fact, one stunning new study forecasts that five million houses and condos will go through foreclosure within the next couple of years. If that actually happens it will be absolutely catastrophic for the banking industry. #8) But it is not just residential real estate that is a problem. Many financial analysts now believe that the next “shoe to drop” in the ongoing economic crisis will be commercial real estate. U.S. commercial property values are down approximately 40 percent since 2007 and currently 18 percent of all office space in the United States is now sitting vacant. #9) So are the financial powers doing anything to help? In 2008 and 2009 they did, but now it appears that they plan to dramatically tighten credit. In fact, Federal Reserve Chairman Ben Bernanke recently warned Congress that the Federal Reserve does not plan to “print money” to help Congress finance the exploding U.S. national debt. So either Congress will have to spend less money or borrow it at higher interest rates from someone else. Either of those alternatives will be bad for U.S. economic growth. #10) In addition, the Federal Reserve is in discussions with money market mutual funds on agreements to help drain as much as 1 trillion dollars from the financial system. But when you withdraw money from a financial system it slows down an economy. Why would the Federal Reserve want to do this now when the economy is struggling so much? #11) There are also persistent rumors that the Federal Reserve is plotting a series of interest rate hikes. Federal Reserve Chairman Ben Bernanke says that the Federal Reserve may raise the discount rate “before long” as part of the “normalization” of Fed lending. By raising that rate, Bernanke says that the central bank “will be able to put significant upward pressure on all short-term interest rates”. But higher interest rates will mean that it will cost more for everyone to

borrow money. This will also slow down the U.S. economy. #12) Recent data suggests that there has been a very significant decline in the “real” M3 money supply, and every time that this has happened in the past it has resulted in a drop in economic activity. In fact, this dramatic contraction in the money supply has many economic analysts now warning that it is not a matter of “if” we will have a “doubledip” recession, but of “when” it will occur. #13) There are also signs that big U.S. banks are now hoarding cash. In fact, the biggest banks in the U.S. cut their collective small business lending balance by another 1 billion dollars in November 2009. That drop was the seventh monthly decline in a row. #14) In fact, in 2009 U.S. banks posted their sharpest decline in lending since 1942. This is the same kind of thing that happened at the beginning of the Great Depression. #15) Meanwhile, the biggest U.S. banks are gobbling up a larger and larger share of the U.S. banking market. At the end of 2007, the Big Four U.S. banks - Citigroup, JPMorgan Chase, Bank of America and Wells Fargo - held 32 percent of all deposits in FDIC-insured institutions. As of June 30th of last year it was 39 percent.

So do you see what is going on?

The real estate crash of the last several years has left hundreds of small to midsize banks across the United States extremely vulnerable.

These small to mid-size banks desperately need the U.S. economy to get cranking again.

But now the big financial powers are reducing their lending, hoarding cash and shrinking the money supply.

All of those things reduce economic

activity.

Many businesses will fail because they cannot get loans.

The real estate market will continue to suffer because banks are raising their standards and are lending less money.

Small to mid-size banks that are already on the edge of disaster are almost virtually certain to collapse when the “second wave” of the housing crisis starts hitting.

But when they do collapse the U.S. government is directing them to sell themselves to the big sharks.

So whether it is “planned” or not, what we are witnessing is a consolidation of the banking industry in the United States.

And that is not a good thing.

FIAT EMPIRE: Why The Federal Reserve Violates The U.S. Constitution http://www.youtube.com/watch?v=8Xt5US8FUpw Creature From Jekyll Island Second Look at the Federal Reserve http://www.youtube.com/watch?v=Dba9OY0QatU The Capitalist Conspiracy - G Edward Griffin http://www.youtube.com/watch?v=-H99C4JEq80 Ending Taxation - The Only Game in Town - 2011 http://www.youtube.com/watch?v=bn3hUcmNDdA The Money Masters a History of Money http://www.youtube.com/watch?v=JXt1cayx0hs The Secret of Oz a History of Money http://www.youtube.com/watch?v=swkq2E8mswI

Let Your Life Be a Friction to Stop the Machine You Tube March 6, 2012 “If the injustice is part of the necessary friction of the machine of government, let it go, let it go; perchance it will wear smooth — certainly the machine will wear out. If the injustice has a spring, or a pulley, or a rope, or a crank, exclusively for itself, then perhaps you may consider whether the remedy will not be worse than the evil; but if it is of such a nature that it requires you to be the agent of injustice to another, then, I say, break the law. Let your life be a counter friction to stop the machine. What I have to do is to see, at any rate, that I do not lend myself to the wrong which I condemn.” Henry David Thoreau, Civil Disobedience A brief and crucial alternative history of the United States.

Let Your Life Be a Friction to Stop the Machine VIDEO BELOW http://www.youtube.com/watch?v=N2Xh5eN2fXY America: Freedom to Fascism http://www.youtube.com/watch?v=lUpZhhbKUBo

Dinosaur Media Misquotes Ron Paul, Jumps On Congressman Over Tornado Comments Steve Watson Infowars.com March 6, 2012 Smear number 654: Ron Paul says tornado victims shouldn’t get help Once again the corporate media has pounced on any opportunity it can to smear Congressman Ron

Paul as he heads into perhaps the most important week of his presidential campaign thus far.

Appearing on CNN Sunday, Paul was asked his opinion on FEMA’s management of the recent aftermath of the destructive tornados in the Midwestern states.

Paul explained that he was not an advocate of the federal government having authority and responsibility over such situations, that he does not support the notion of federal money, and that the states should be allowed to take care of their own.

Of course, being the attack dog hacks that they are, corporate media minions immediately poured forth with headlines such as “Ron Paul: Victims of Midwestern tornado outbreak should not get federal aid” and “Ron Paul: No Federal Financial Aid For Tornado Victims”.

National Journal reporter John Aloysius Farrell even suggested that in saying victims should not get aid, Paul had “stood by his libertarian beliefs”, dredging up the endlessly repeated bogus cliche that part of the Libertarian stance is that everyone must fend for themselves in a world of survival of the fittest. Any cursory examination of Paul’s comments proves that what he said has been totally taken out of context and spun by the media to generate negative opinion.

What Paul actually said was that the federal government and FEMA “just get in the way” when such disasters happen, adding that the agency hinders local law enforcement, voluntary groups and state organization.

“To say that any accident that happens in the country, send in FEMA, send in the money, the government has all this money, it’s totally out of control and it’s not efficient,” Paul also explained.

“There is no such thing as federal money,” Paul said. “Federal money is just what they steal from the states and steal from you and me.”

“To say you don’t support federal money doesn’t mean you don’t care about people, because FEMA is inefficient,” the Congressman explained.

Libertarian YouTube Channel Day Trade Show has an excellent break down of the smear attempt.

Listen below: Ron Paul on Tornado Victims: Mischaracterized by the Media Again http://www.youtube.com/watch?v=XoBZtSjCEdw