The Financial System Is A Larger Threat Than Terrorism

Tyler Durden's picture

Authored by Paul Craig Roberts,

In the 21st century Americans have been distracted by the hyper-expensive “war on terror.” Trillions of dollars have been added to the taxpayers’ burden and many billions of dollars in profits to the military/security complex in order to combat insignificant foreign “threats,” such as the Taliban, that remain undefeated after 15 years. All this time the financial system, working hand-in-hand with policymakers, has done more damage to Americans than terrorists could possibly inflict.

The purpose of the Federal Reserve and US Treasury’s policy of zero interest rates is to support the prices of the over-leveraged and fraudulent financial instruments that unregulated financial systems always create. If inflation was properly measured, these zero rates would be negative rates, which means not only that retirees have no income from their retirement savings but also that saving is a losing proposition. Instead of earning interest on your savings, you pay interest that shrinks the real value of your saving.

Central banks, neoliberal economists, and the presstitute financial media advocate negative interest rates in order to force people to spend instead of save. The notion is that the economy’s poor economic performance is not due to the failure of economic policy but to people hoarding their money. The Federal Reserve and its coterie of economists and presstitutes maintain the fiction of too much savings despite the publication of the Federal Reserve’s own report that 52% of Americans cannot raise $400 without selling personal possessions or borrowing the money

Negative interest rates, which have been introduced in some countries such as Switzerland and threatened in other countries, have caused people to avoid the tax on bank deposits by withdrawing their savings from banks in large denomination bills. In Switzerland, for example, demand for the 1,000 franc bill (about $1,000) has increased sharply. These large denomination bills now account for 60% of the Swiss currency in circulation.

The response of depositors to negative interest rates has resulted in neoliberal economists, such as Larry Summers, calling for the elimination of large denomination bank notes in order to make it difficult for people to keep their cash balances outside of banks.

Other neoliberal economists, such as Kenneth Rogoff want to eliminate cash altogether and have only electronic money. Electronic money cannot be removed from bank deposits except by spending it. With electronic money as the only money, financial institutions can use negative interest rates in order to steal the savings of their depositors.

People would attempt to resort to gold, silver, and forms of private money, but other methods of payment and saving would be banned, and government would conduct sting operations in order to suppress evasions of electronic money with stiff penalties.

What this picture shows is that government, economists, and presstitutes are allied against citizens achieving any financial independence from personal saving. Policymakers have a crackpot economic policy and those with control over your life value their scheme more than they value your welfare.

This is the fate of people in the so-called democracies. Any remaining control that they have over their lives is being taken away. Governments serve a few powerful interest groups whose agendas result in the destruction of the host economies. The offshoring of middle class jobs transfers income and wealth from the middle class to the executives and owners of the corporation, but it also kills the domestic consumer market for the offshored goods and services. As Michael Hudson writes, it kills the host. The financialization of the economy also kills the host and the owners of corporations as well. When corporate executives borrow from banks in order to boost share prices and their performance bonuses by buying back the publicly held stock of the corporations, future profits are converted into interest payments to banks. The future income streams of the corporations are financialized. If the future income streams fail, the companies can be foreclosed, like homeowners, and the banks become the owners of the corporations.

Between the offshoring of jobs and the conversion of more and more income streams into payments to banks, less and less is available to be spent on goods and services. Thus, the economy fails to grow and falls into long-term decline. Today many Americans can only pay the minimum payment on their credit card balance. The result is massive growth in a balance that can never be paid off. It is these people who are the least able to service debt who are hit with draconian charges. The way the credit card companies have it now, if you make one late payment or your payment is returned by your bank, you are hit for the next six months with a Penalty Annual Percentage Rate of 29.49%.

In Europe entire countries are being foreclosed. Greece and Portugal have been forced into liquidation of national assets and the social security systems. So many women have been forced into poverty and prostitution that the hourly price of a prostitute has been driven down to $4.12.

Throughout the Western world the financial system has become an exploiter of the people and a deadweight loss on economies. There are only two possible solutions. One is to break the large banks up into smaller and local entities such as existed prior to the concentration that deregulation fostered. The other is to nationalize them and operate them solely in the interest of the general welfare of the population.

The banks are too powerful currently for either solution to occur. But the greed, fraud, and self-serving behavior of Western financial systems, aided and abeted by governments, could be leading to such a breakdown of economic life that the idea of a private financial system will become as abhorent in the future as Nazism is today.

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Crawdaddy's picture

Yay for PCR and his cats, saving us from the system he claims to hate but still supports.

Goliath Slayer's picture
Goliath Slayer (not verified) Crawdaddy Mar 8, 2016 10:22 PM

Agree. Much larger threat. Therefore CUT the head of the BEAST >>

DaveyJones's picture

How can you be a larger threat than yourself?

new game's picture

remain calm and know your enemy and hopefully it is not in the mirror, ha...

rahtidmon's picture
rahtidmon (not verified) new game Mar 8, 2016 11:31 PM

Ouch, that is some scary shit right there, one's own reflection, and introspection! It can hurt...

Pinto Currency's picture



A money system owned and controlled by banks (themselves owned by a few pirates) through the Federal Reserve system should indded be frightening to people.

Instead they have just trusted - until now.

rahtidmon's picture
rahtidmon (not verified) Pinto Currency Mar 9, 2016 12:08 AM

Under the cover of darkness, there was the Fed, 1913 FRA, a dagger in the heart of America, forever changed!

EDIT: I believe it was Woodrow Wilson, who lamented on his deathbed, that he had done a grave disservice to the Nation, in signing that law into effect. That man was a PROGRESSIVE piece of dung!

Cliff Claven Cheers's picture
12-Year Old Child Reveals One of the Best Kept Secrets in the World

rahtidmon's picture

From the eye's of a babe, a smart one at that, thanks for the link!

tostaky06's picture

Financial crisis make terrorism ... 

CIABS's picture

Everything is a bigger threat than terrorism, unless we are referring to state terrorism.  But that's not what the state and its stenographers mean by the word.  Genuine non-state terrorism is the least threatening thing in the world, because it never happens; it does not exist.

koperniuk666's picture

Ciabs 'Genuine non-state terrorism is the least threatening thing in the world, because it never happens; it does not exist.'

apart from (perhaps) a few home grown nutters out of pakisatan you are right. The whole fear of terror is bullshit. PCR is also correct that finance is a huge threat. I was in the terror industry and made money out of it but it was a BS job that I had to take because all the real jobs are disappearing - everything now flows down from government largesse. Advice to investors now? Dont do anything that that does not ultimately derive its income from some govt project or fund. Anything else will become a criminal act anyway....
The wheels are coming off but when the crash will occur - nobody knows...

JRobby's picture


This is why terrorism is "touted" as "the biggest threat"  

They always deflect away from the real threat. It is their MO. Banks are making more money than they should.

Dude-dude's picture

Through the multiverse :-)  There, solved the riddle.

doctor10's picture

Finance is supposed to serve business-not be its master.

Fed.Gov decided during the Vietnam War to run huge deficits-and it needed finance to make that happen.

They have created a monster only they can slay.

dumb_funded's picture

The American Military Industrial Complex funded by the Financial System is a larger threat than Terrorism


There, fixed it for ya!

The Hidden Government Group Linking JFK, Watergate, Iran-Contra and 9/11
earleflorida's picture

jfk was not liked by many groups/ people. nixon had lost the election because the cia made it happened and (nixon never forgot) waited patiently for his turn to get revenge.

jfk was responsible for the vietnam war escalation using the cia covert operations like a drunken sailor with brother bobby. think s. vietnam leader ngo diem and brother ngo dinh nhu assasination on nov. 2, 1963! jfk's big mistake was keeping dulles cia director and J Ed. Hoover fri director. joseph kennedy had prearranged their position with son john for fear of his nazi germany connections.

on nov. 22 1963 jfk was assainated???

watergate was a joke. again the cia got the best of nixon setting him up. nixon deserved all that was coming to him, but it was the neocons such as rumsfeld and cheney and the likes that got their start.

iran contra should have gotten reagan impeached. he lied to the public and was the beginning of the downfall of representative gov't. he was the worst thing that ever happened to america. the guy was a professional actor that believed his lies. pathetic! he was responsible for giving pakistan their nuclear weapons program on a silver platter to kahn. ref:  regarding daddy bush and wolfowitz

and as far as '911' was concerned clinton could have killed OBL ten times over but refused to and passed the hot potato to an illegitimate president that wanted from day one to invade iraq and build out the MIC exponentially as reagan had. between reagan, bush#41, clinton, bush #43 and Obama the ussa is finnished.

but, if hillary is elected we will rise from the dead as zombies...[?]

in short the "CIA" has destroyed america 

new game's picture

hope you don't believe the OBL fiction...

earleflorida's picture

i feel sorry for the american people ..... [?]

 obl did not have the wherewithall to orchestrate '911'


LA_Goldbug's picture

As to JFK, try reading this book as a challenge and see what you think afterwards about him.

As to the "drunken sailor" characterization which I suspect alludes to his career in the Navy. Read this and tell me he was not A Man of Honor. Something Clinton, Bush Jr. and the rest of these useless puppets can never be called. The best they could do would be to shine JFK shoes.

"Most people have heard the story of the swim to PLUM PUDDING -- how JFK swam the breast stroke pulling the badly burned McMahon on his back behind him -- the strap of his life-jacket between JFK's teeth -- while the other nine crew members -- in various degrees of injury and swimming ability -- kicked along together holding onto a 2-ft by 8-ft wooden plank. Four hours later -- just before sunset -- they all scrambled ashore on PLUM PUDDING and collapsed in exhaustion under a canopy of palm trees. A few minutes later a Japanese barge slowly chugged along the shore a couple hundred yards away -- but it kept on going to GIZO."

No, few know this story and rarely is it mentioned in the Media. What is mentioned is Marilyn Monroe.

RaceToTheBottom's picture

American Military is just the sword.

The reason is money.

On the evil spectrum, WS is multiples worse than the MIC and the working servicemen...

earleflorida's picture

the chinese will fight tooth and nail the western central banks that are now teetering on draconian obsoletism, in order to preserve their eastern orientalist orthodoxy

it is america that tried and failed to bring china to it knees via america's unilateral exceptionalism

Ms No's picture

Your right and this isn't the first time. Wall Street funded a revolution that led right into Mao as well. We are basically nothing more than the staging point for banks to take over everything.  They never stop either.  They just keep hammering country after country until they get what they want. It's much more than just western now.  The same names over and over Rothschild, Morgan, Rockefeller etcetera.  Speaking of the Chinese and the dangers of banking....

"The best-documented example of Wall Street intervention in revolution is the operation of a New York syndicate in the Chinese revolution of 1912, which was led by Sun Yat-sen. Although the final gains of the syndicate remain unclear, the intention and role of the New York financing group are fully documented down to amounts of money, information on affiliated Chinese secret societies, and shipping lists of armaments to be purchased.

The New York bankers syndicate for the Sun Yat-sen revolution included Charles B. Hill, an attorney with the law firm of Hunt, Hill & Betts. In 1912 the firm was located at 165 Broadway, New York, but in 1917 it moved to 120 Broadway (see chapter eight for the significance of this address). Charles B. Hill was director of several Westinghouse subsidiaries, including Bryant Electric, Perkins Electric Switch, and Westinghouse Lamp -- all affiliated with Westinghouse Electric whose New York office was also located at 120 Broadway. Charles R. Crane, organizer of Westinghouse subsidiaries in Russia, had a known role in the first and second phases of the Bolshevik Revolution (see page 26).

The work of the 1910 Hill syndicate in China is recorded in the Laurence Boothe Papers at the Hoover Institution. [5] These papers contain over 110 related items, including letters of Sun Yat-sen to and from his American backers. In return for financial support, Sun Yat-sen promised the Hill syndicate railroad, banking, and commercial concessions in the new revolutionary China."

"In brief, the public good has been, and is today, used as a device and an excuse for self-aggrandizement by an elitist circle that pleads for world peace and human decency. But so long as the reader looks at world history in terms of an inexorable Marxian conflict between capitalism and communism, the objectives of such an alliance between international finance and international revolution remain elusive.

So will the ludicrousness of promotion of the public good by plunderers. If these alliances still elude the reader, then he should ponder the obvious fact that these same international interests and promoters are always willing to determine what other people should do, but are signally unwilling to be first in line to give up their own wealth and power. Their mouths are open, their pockets are closed."

"Today the objective is still alive and well. John D. Rockefeller [III] expounds it in his book "The Second American Revolution" -- which sports a five-pointed star on the title page. [14] The book contains a naked plea for humanism, that is, a plea that our first priority is to work for others. In other words, a plea for collectivism. Humanism is collectivism. It is notable that the Rockefellers, who have promoted this humanistic idea for a century, have not turned their OWN property over to others. Presumably it is implicit in their recommendation that we all work for the Rockefellers. Rockefeller's book promotes collectivism under the guises of "cautious conservatism" and "the public good." It is in effect a plea for the continuation of the earlier Morgan-Rockefeller support of collectivist enterprises and mass subversion of individual rights."


Sandmann's picture

Look how much Kuhn Loeb and Rothschild put into the Russian Revolution. The only reason the USA has Alaska is because the Tsar could not repay the loan to Rothschild that had financed freeing the Serfs in 1867 and had to raise cash and he hoped it would stop the bRitish from seizing it from their naval base in Vancouver

Ms No's picture

Yep.  20-60 million dead later...

swmnguy's picture

20 years ago, people thought of Paul Craig Roberts as a right wing nut.  Today, many consider him a left wing nut.

Dr. Roberts hasn't changed.

SOTC's picture

I doubt that JFK would have been elected with this lot. 

Lore's picture

You want "wings?"  Go back to watching the orchestrated pageant on TV. 

"Wings" are irrelevant except to reinforce a stinking rotten obsolete paradigm.

Slomotrainwreck's picture

Dr. Roberts hasn't changed.

Don't just proclaim trite meaningless phrases. Express yourself.

g'kar's picture

"But WTF are we going to do?"


my opinion, nothing short of washington dc, wall street, bis, and the other cast of bankster characters being nuked off the face of the earth by russia, china and iran would make any difference to the behemoth

marathonman's picture

"But WTF are we going to do?" Nothing. For those so inclined the book of Revelations lays it out. You'll need the 'sign of the beast' to buy and sell [cashless society].

Get right my friends. I hear the sounds of four horses in the background....

Yen Cross's picture

 The Financial Ponzi? [Fixed it for you Tylers]

  Sometimes, I wonder why the sociopaths are creating robots, with artificial intelligence? </sarc>

Atomizer's picture

Because liberals will have a reason to blame it on someone else. Robots and the uncertainty of artificial intelligence. Daniel Acker was a fragment of the bigger picture. Global Governance equates to: plan, execute, and revise

It's that simple. 

Atomizer's picture

Close your bank account and watch how quickly banks will bring back lollipops and toasters for a new processing of debtor account. 

Money Confiscation Legal? Keep YOUR Money OUT ...

Hail Spode's picture

To be against your life being run from Washington you must be against the Federal Reserve. This is because you can't have central banking and decentralized government. You must pick one or the other.

new game's picture

to change the fed, there will be bloodshed, and that my friend is why it is what it is(for now).

to even approach that bench is taking a position of marterdom. these fuckers play for keeps.

no ifs or buts about it. shhheeeez, don't even think bout it...zzzzzzzzzzzzzzz...

rahtidmon's picture
rahtidmon (not verified) new game Mar 8, 2016 11:14 PM

more of us than them, if people wake up

rahtidmon's picture
rahtidmon (not verified) Hail Spode Mar 8, 2016 11:14 PM

Correct. End the Fed, nuff said!

new game's picture

my stand and trump actually talked about it, nuff said...

Hohum's picture

Let's have candidates explain how the economy will work WITHOUT a financial Ponzi.

Atomizer's picture

We need to know what ice cream Hillary likes. Which tampon she used with Bill during White House stay. 

Fox townhall will cover softball questions. 

SOTC's picture

My business is killing and business is good

rahtidmon's picture
rahtidmon (not verified) Mar 8, 2016 11:12 PM

Our own government is the biggest threat there is to fiscal sanity, global peace and civilization!

Imagine, we have gone so far down hill as a nation, due to greed, avarice, immorality and sloth, that slays me.

I think the whole world has gone full retard myself, you?

Element's picture



Smarmy ingrate who writes pro-moscow bits for Russian state media outlets, warns the thing that's kept him in bread 'n butter all his life is a "terrist!".

Bloviating dumbshittery's coming back in fashion!

new game's picture

you certainly gave that comment some thought, hmmm, thanks