Guest Post: The Giant Cover Up

Tyler Durden's picture

From Mike Krieger of Kam LP


An end to "banking as we know it" is fine with us.  The "banking" in today's Western economies is simply a monopoly-distribution point for the dissemination of fiat currency.  Central banks have got to distribute money through banks because the alternative – simply distributing it to people – would reveal the scam for what it is.  By filtering the money-printed-from-nothing through banks, the process retains a mysterious quality.  It is also rendered more complex, which is necessary when one is promoting a Ponzi scheme.  Finally, bank distribution allows for a debt add-on that further controls the process.  The situation is incredibly destructive, ruinous and benefits, essentially, on a very people who are the most direct beneficiaries of central bank funding stream.

– The Daily Bell, Staff Report

The Giant Cover Up

Much has been written about QE2, too much really.  However, today I want to take a step back and look at it from another angle.  QE2, or the latest round  of Federal Reserve quantitative easing is in all reality just a move of extreme desperation by what Max Keiser appropriately calls “financial terrorists” to cover up the recent coup d’etat of what was left of America’s wealth by special interests across the spectrum from politicians themselves, the military industrial complex and crucially the big Wall Street firms that gamble with taxpayers money all the while calling themselves banks.  At the center of the theft is and continues to be the Federal Reserve.  Using the financial collapse of 2008 as a smoke screen, the totally bankrupt large Wall Street firms using their puppet ex Goldman Sachs CEO and then Treasury Secretary Hank Paulson sufficiently scared our politicians to give them unlimited sums of money, suspend accounting for their bad assets and then go right back to gambling again and paying huge bonuses all the while never accounting for their assets at market value.  The hope from the perspective of the Federal Reserve has been that by pumping virtually unlimited amounts of newly printed money into the banking system (which is what quantitative easing is) they could create another fake Keynesian economic boom that would get people back to work and back to sleep again.  Housing prices would start rising again and none would be the wiser until the system collapsed again a few years later (which it would be guaranteed to do) but then it would be much too late to stop it. 

Fortunately for all of us, this is not the way things turned out.  Do you recall that as soon as the financial crisis happened there was this desperate attempt to “sell” the event as a failure of the free market?  This of course would have suited the interests of the elite perfectly as it would permit them to further consolidate power in the hands of very few.  Once wealth is established it can then be protected by a government that writes rules and regulations to benefit those elite and prevent opportunities for all others.  This is the easiest way to preserve wealth since you don’t have to compete with new geniuses that are born every day all over the world.  If all these traders and analysts at the big banks are so skilled then why are they so afraid of a level playing field with which to compete with hedge funds, mutual funds and just plain ordinary Americans?  It’s pathetic the way they hide under the government blanket.  Nevertheless, thanks to the internet and the study and hard work of many people that have explained how economics really works, the collective consciousness was able to see through this scam and never bought the “sell.”  It has taken time, but slowly but surely the truth is winning out the debate.  The TRUTH is that we do not and have not had anything remotely resembling a free market economy.  As I have said many times before, the most important price in any economy is the price of money which is in the interest rate.  In the United States we give the monopoly power on both the issuance of money itself and its interest rate to a small group of academics answerable to nobody.  This group is the Federal Reserve.  The head of this fascist organization is Ben Bernanke who seemingly committed perjury recently.  See the quotes below.

Ben Bernanke in from of Congress stated:  “The Federal Reserve will not Monetize the debt.”  Audio can be found here

Dallas Fed President Richard Fisher said this past Monday:  “The Federal Reserve will buy $110 billion a month in Treasuries, an amount that, annualized, represents the projected deficit of the federal government for next year. For the next eight months, the nation’s central bank will be monetizing the federal debt.”

These guys are the ultimate swindlers.  They say one thing and turn around and do another.  More important to me however is why did Ben Bernanke just do what he did even though it was a truly desperate act.  My answer is that the failure of the economy to have even a fake boom recovery with job growth risked further exposing all of the acts of financial terrorism committed by the Federal Reserve and the TBTF (too big to fail) banks.  Worse, they continue to rob and pillage and therefore the Fed will do “whatever it takes” to cover it up.  If that means flooding the world with dollars and destroying its value so be it.  Anything so that the perpetrators of the greatest financial crime in world history do not get caught and brought to justice.  But as I wrote recently, the tipping point has been breached, the Rubicon crossed, the zeitgeist of America changed and justice will be done though the heavens fall.  This will really accelerate into 2011.  Potential whistleblowers should start thinking about coming clean and protecting themselves now while they can.

Austerity for the Bankers before Austerity for Anyone Else

So all the rage in the media over the last few days have been the initial results from this “bi-partisan” (as if that means anything) Deficit Panel.  This is a mute point because until the issue of the TBTF banks and the rule of law are dealt with there can be no return of confidence to the economy and therefore no recovery.  The only thing that “austerity” will bring to the United States is civil unrest and complete collapse of the social structure.  The number one thing that has to be done right here right now is immediate return to real accounting for the TBTF bank assets.  If that means they are finished, then they are finished.  That is how America is supposed to run.  We ostensibly have the ability to deal with this situation in Dodd-Frank Act so what’s the problem?  My point here is this is the most important issue in America right now.  Anyone around the world that is paying even the slightest bit of attention and has a basic financial understanding knows these banks are zombies but are being kept alive because the vested interests pay off the politicians one way or the other.  We need to completely hit the reset button on the big banks.  As soon as we do this, we will show the world and the American people that we are serious about dealing with our problems and moving toward a real free market with the rule of law instead of the feudalistic crony capitalism we employ today.  Nobel Prize winner Joseph Stiglitz seems to agree with me when he stated recently: 

But there’s a broader sense of collateral damage that I think that has not really been taken on board. And that is confidence in our legal system, in our rule of law, in our system of justice. When you say the Pledge of Allegiance you say, with “justice for all.” People aren’t sure that we have justice for all. Somebody is caught for a minor drug offense, they are sent to prison for a very long time. And yet, these so-called white-collar crimes, which are not victimless, almost none of these guys, almost none of them, go to prison.”

The people we have running the show right now are not fit for the job which is why nothing changes.  We have children performing tasks that require the action of men.  This is just as much a social and cultural crisis as it is an economic and financial one.  Until we understand that we will never solve the problems we face.

All the best,

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bugs_'s picture

Its the end of the banks as we know it, and I feel fined.

tmosley's picture

Well done.  I might have to use that one.

I Am The Unknown Comic's picture

Fantastic!!!!  Thank you!!!


----"that's great it starts with TARP-baked-in Goldman snakes and contrail planes; Paul Krugman is not's the end of the world as we know it!"

SheepDog-One's picture

'With liberty and justice for all'....well as long as youre a multi billionaire Ivy league bankster criminal. Off to the front line meat grinder in the next coming world war or gulag forced labor prisons for the rest!

Cognitive Dissonance's picture

Off to the front line meat grinder in the next coming world war or gulag forced labor prisons for the rest!

It doesn't need to be this way. Never have so many been so powerful yet felt so powerless.

What people are completely missing is that the Fed and the banking system, by pushing the system to the brink in order to frighten the people into ceding more freedom and control and to extract the last remaining unencumbered wealth from the middle class, have also given us the power to bring the system to a screeching halt in a few short months.

The more powerful the economic system is to sweep the individual away, the more power it gives to any group of people who wish to coordinate their actions. Right now that's the wealthy elite and the banking cabal. The banking system's power is also it's ultimate weakness. If just 20 or 30% of the US population stopped paying their bills for 3 months, it would all end quickly.

The domino effect would quickly overwhelm the system. This couldn't be done tomorrow. We would need to take a few months to prepare by stock piling food and other perishables, including medications, PM's etc. Then we hit the reset button. The power is in our hands folks. We just don't know it. They have us convinced that the weapon can only be used in their hands. This is false.


SheepDog-One's picture

No doubt! I've been telling people rip up your credit cards, dont use BIG banks in particular, dont get loans, dont buy crap you dont need with finance...the people have all the power to shut them down but most are in the bank Matrix, they just cant help themselves! 

VegasBD's picture

When you no longer need or care about your FICO score, getting credit cards is a lot more fun. That last few that were dumb enough to give them to me bought more silver sitting in my safe.

macholatte's picture

I nominate you (CD) to replace Keith Olberman.

Max Hunter's picture

You are exactly right CD.. We hold all the power but yet sit powerless and allow ourselves to be "ruled" rather than governed..

Mariposa de Oro's picture

CogDis, should we both find ourselves in a FEMA camp, I hope to be sharing yours.  Beware the midnight door knock...


Cognitive Dissonance's picture

They don't knock. They just break and enter.

Things that go bump's picture

And how we burned in the camps later, thinking: What would things have been like if every Security operative, when he went out at night to make an arrest, had been uncertain whether he would return alive and had to say good-bye to his family? Or if, during periods of mass arrests, as for example in Leningrad, when they arrested a quarter of the entire city, people had not simply sat there in their lairs, paling with terror at every bang of the downstairs door and at every step on the staircase, but had understood they had nothing left to lose and had boldly set up in the downstairs hall an ambush of half a dozen people with axes, hammers, pokers, or whatever else was at hand? After all, you knew ahead of time that those bluecaps were out at night for no good purpose. And you could be sure ahead of time that you'd be cracking the skull of a cutthroat. Or what about the Black Maria sitting out there on the street with one lonely chauffeur--what if it had been driven off or its tires spikes?

The Organs would very quickly have suffered a shortage of officers and transport and, notwithstanding all of Stalin's thirst, the cursed machine would have ground to a halt! If...if... We didn't love freedom enough...

Aleksandr I. Solzhenitsyn, The Gulag Archipelago (1973). Excerpt from Footnote 5, Chapter 1.

Cognitive Dissonance's picture

I'm a very vocal local activist who lives within a mile of a military base that doesn't like me because I occasionally picket outside their main gate while open carrying. That really pisses off people who are used to giving orders and having them obeyed. 

So I'm regularly rousted at all hours of the day for various bullshit reasons by the local PD who are the messenger boys for the local base commander. They don't scare me. Which is why they continue to screw with me. I suspect I'm on the list of the first to be picked up when the hammer goes down. Whatever. It won't shut me up.

I learned long ago that they are more frightened of what I represent than I am of what they represent.

Max Hunter's picture

Well said CD.. Our fear is their most powerful weapon.. I won't give it to them either..

Things that go bump's picture

I put in that Solzenitsyn quote every time someone mentions people being rounded up and carted off to camps, because this has happened before (how many times within the last century alone?), and I don't consider it outside the realm of probability here.  The preparations are all around us, in the unnecessary and humiliating body scans and searches at the airports, the constant demand to see our identification, the cameras in the streets.  While this is a personal decision, of course, I would prefer that we not go like Jews to the gas chamber.  I practice civil disobedience on a daily basis. 

Metropolis_Minx's picture

CD: This is a reply to your earlier post, actually...

I stopped paying my mortgage 3 months ago and it's been a combination of thrill and panic. The panic comes with the daily threatening letters in the mail from Citi...and the phone calls that we don't answer although we know it's "Them". We really had no choice when we first started missing our payments...but 3 weeks ago the boy found a job and we decided they could just pry the house out from under us. We know what's coming. And although it didn't start out from a place of courage, it's ending there. I love my house, don't get me wrong, but I love my freedom and dignity more.

...always enjoy reading your posts, CD.





Cognitive Dissonance's picture

Good luck.

As I stated in that post, after consulting several attorneys and settling on one, I have begun placing the money I would normally be sending to the mortgage servicer in an escrow account because I believe my mortgage has been sold more than once to various "trusts".

I regularly have problems at tax time because the interest I pay isn't being recorded and reported to the IRS properly. I get several 1098's from several banks every year for the same mortgage. Which causes me to be audited every year because the IRS says the banks don't make mistakes, so I must be cheating.

I demanded to see the note to no avail and gave them 90 days. So now I go to the mattresses.

Northeaster's picture

We would need to take a few months to prepare by stock piling food and other perishables, including medications, PM's etc.

Some of us have been doing this for a while.

1100-TACTICAL-12's picture

Let's do it, I'm as ready as I'll ever be...

kiwidor's picture

Wrong.  Stop paying your bills and slush funds will appear magically for the creditors.  When are you going to stop rationalising and start shooting? CD, they know all that 3 months prep shit is never gonna happen.  it's now or never.

When is it going to stop?  When there are rivers of blood flowing in NYC and Washington DC and when those who try to stop the people's justice are torn limb from limb or put down with their own weapons.  That is when it will stop.

If you want a peaceful revolution(a stupid idea if ever i heard one) you have to affect the transfer mechanisms of the banks.  Banks who cannot settle are in Big DooDoo.  ATM's which can't contact HQ are prone to be emptied by people with large trucks and a crane.


There's a destination a little up the road

down a man-hole cover there's junction we know

a little snip here and they won't ring the phone

a little snip there and their mind's gonna blow


To big to fail with their 'federal' handouts

I got big bolt-cutters and concrete saw

Blades spinning fast just cut those pipes just cut those pipes



Where it's at

I got big bolt-cutters and concrete saw

Where it's at

I got big bolt-cutters and concrete saw

Where it's at

I got big bolt-cutters and concrete saw


Open that throttle and the cuts just flow

a knife through butter and it's time to hit the road

the air waves are clear cos the transmitter's blown

nothin' on the radio nothing on the tube

what ya gonna do? what ya gonna do?

what ya gonna do? what ya gonna do?

there's nothing on telly and no work to do?

what ya gonna do? what ya gonna do?


Where its' at

I got big bolt-cutters and concrete saw

goldsaver's picture

 If just 20 or 30% of the US population stopped paying their bills for 3 months, it would all end quickly.

You will not get 20% of Americans to stop paying their bills. Sad but true.

But if "money is debt", getting rid of all debt gets rid of "money". I have to think a bit more about this and might need some help from ZH'ers but, we need to formulate an action plan that is both "legal", palatable to J6P, easy to explain and effective. I for one, have a year of food and water. My only debt is my mortgage. And I currently plan to remove all my money from my bank accounts and close them December 7th. Will be difficult, but I'm preparing for it.

StychoKiller's picture

Two-word explanation:  TAX STRIKE!

Rhodin's picture

The banking system's power is also it's ultimate weakness. If just 20 or 30% of the US population stopped paying their bills for 3 months, it would all end quickly.

The domino effect would quickly overwhelm the system. This couldn't be done tomorrow. We would need to take a few months to prepare by stock piling food and other perishables, including medications, PM's etc. Then we hit the reset button. The power is in our hands folks. We just don't know it. They have us convinced that the weapon can only be used in their hands. This is false.


Seems like a great way to celebrate Independence Day!  So how about 7/01/11 ?  That should give folks time to prepare and stock up.  Anyone still in the big banks could move their account on the first.  Then there is that little detail of recruiting 20-30%.  Know a good viral ad guy?


Fraud-Esq's picture

Paulson lied, said TARP would be used to buy toxic mortgages. He said things changed drastically in a week, changed his mind. Researchers at MIT proved last month that things didn't change drastically in the week Paulson claimed. He should be brought before Congress to answer to the MIT study. 

The intent is to cover up crimes and protect the top of the pyramid. YES. Funny thing is, the very top of the pyramid doesn't contain banker pimps, but covering up their crimes is part of the goal that serves the top capitalists. The pimp bankers wired it that way. "You want your money back? Then, I live.."

SheepDog-One's picture

Hmm, well where IS Paulson? Anyone seen him since then? Off to Portugal right after those hearings I'd bet.

Ripped Chunk's picture

Paraguay sounds right. 

I still blow a gasket every time I recall his Congressional  "testimony". Kept looking at his watch because he knew he would be going back to being a rich cocksucker in a few hours. Just need to get this inconvienence over with.

LongSoupLine's picture

May Ron Paul bring tactical nukes to the fight!

apberusdisvet's picture

Unfortunately, it's going to take pitchforks, folks.

Triggernometry's picture

Pitchforks and hoes, don't forget the hoes.

Problem Is's picture

Hoes and torches...

Don't forget the torches, bitchez...

Rusty Shorts's picture

 - and lots of good 'ole rope.

goldmiddelfinger's picture

I picked the wrong day to stop sniffing Glade aerosol but then again Ben Bernanke has all of the model airplane glue

yabyum's picture

Some tar and feathers too.

SheepDog-One's picture

As the article points out, it really is the jackass politicians fault bottom line, being lead around by Paulsons scare tactics of martial law and demands for blank checks and a 'no-look' FED operating license. Ridiculous!

Any sane system of Govt RIGHT THEN should have put a freeze on the whole damn thing with criminal cases opened and launched hearings into what in the HELL was actually going on!

If I, a nobody retired Marine instantly smelled total BS, our entire Congress also should have!

Theyre all responsible for this present worst-ever economic mess in human history, and must be made to pay, with piano wire IMO.

Oh and BTW, to whatever assclown who saw fit to junk my above posts for no reason, eat shit and die!

NotApplicable's picture

The only sane system of govt. is self-government. All others are merely armed mad-men.

/Semper Fi ('84-'90)

Sean7k's picture

+ and thank you for your service.

Mariposa de Oro's picture

I love Marines, especially retired ones!  Happy Veteran's Day from one Vet to another.

Us Army 1984-'88


Fearless Rick's picture

Just saw your post and wanted to wish you a good Hoo-Rah! on Veteran's Day. (sorry if I got the spelling or nomenclature wrong. I never served.)


Thank you and all your brothers. My dad (RIP) served in WWII. Glad in a way he's not around to see what's happening to his country.

PlausibleDenial's picture

I put in 9 year and am ready to lock and load.  I at times lie in bed wondering if I ever got a terminal disease who would be the first I would take out.  US ARMY 70-79. 

goldsaver's picture

Flip of the coin between Bernanke, Paulson, Pelosi or Soros. So many targets, so little time.

ninja-ish's picture

End all usury. Period.

nazir2000's picture

thou shalt not take interest



nazir2000's picture

thou shalt not take interest



Sean7k's picture

If so, why would I lend capital? End fiat debt, that I can work with. Then your debt is being used to create goods and services and benefits many people.

Max Hunter's picture

Money that is multiplied through reserve banking practices should have minimal interest (<1%) and be used only for building of wealth by citizens; i.e. Housing and Construction. This would facilitate the accruing of wealth. There should also be strict guidelines such as 50% down as to not create a bubble and minimize any losses.

Money that is saved and lent out for investment i.e. business and commerce should be done so at a higher interest rate (3-5%) to reward risk of capital.

There should and could be 2 different forms of investment and money supply.

We need a new monitary system and a new way of thinking about money. We need to allow for people to build wealth. Once you subtract all of the taxes and interest one pays it leaves little room for wealth creation. This needs to change.

ninja-ish's picture

You aren't supposed to lend capital. You're supposed to invest. Or give charity. Lending is the devil's work. It inevitably makes the rich richer and the poor poorer. Which is what we have today. Goodbye middle class!