CHAPTER 2

In chapter 2 of the book The Creature from Jekyll Island, it gets into the controversial conspiracy of bank bailouts. And as you see today with all the recent bailouts of the past, it is not a conspiracy. As it was stated in the first chapter of this book, one of the purpose for the secret meeting was to discuss how to involve the federal government as an agent for shifting the INEVITABLE LOSSES from the owner’s of the bank to the taxpayers. To understand how banking losses are shifted to the taxpayers you must first understand how this banking scam works. As Henry Ford once said, “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning”. Since there has not been a revolution yet, I believe Henry Ford was right. What seems like chaos and confusion when there is bailout, is really a well thought operation of getting over on the people.

First, there are certain plays that are repeated over and over again with only minor variations to suit the special circumstances. Second, there definite rules which the players follow with great precision. Third, there is a clear objective to the game which is always on the minds of the players. And fourth, if the spectators ( the people) are not familiar with the objective, and do not understand the rules, they will never comprehend what is going on. This is where we are at today. The name of the game is Bailout. The objective of the game is to shift inevitable losses from the owner’s of the larger banks to the taxpayers, as the saying goes, ” they are too big to fail, so we must help them”, comes into play.

Rules of the Game

The games begin with the Federal Reserve System allowing other commercial banks to create money out of NOTHING. If we were to do this we would be locked up for counterfeiting. But because they call themselves the Federal Reserve and people think its part of the federal government but its not, its privately own by a few billionaire families who brought out our government years ago, this is why THEY, the Federal Reserve gets away with it. The banks get profits from this easy money, not by spending it, but by lending it out to others and collecting interest on something that was created out of NOTHING. When the loan is placed on bank books, it is shown as an asset because its earning interest and someday it will be paid back, hopefully. At the same time another entry on the banks book is made on the liability side. When the borrower cannot repay, the bank must write that loan off as a loss. But, it was created out of nothing and cost the bank nothing except bookkeeping.

This becomes a problem when banks get greedy and create a lot of loans that default which then the bank is forced to write off a large amount of bad loans that exceed the entire value of the owner’s equity, then the bank becomes insolvent as it should be. You would think this would motivate banks to be more conservative in their loan policy. And they are with individuals and small business, but the Federal Reserve System, The Federal Desposit Insurance Corporation, and the Federal Deposit Loan Corporation guarantee that massive loans ( Most likely cannot be paid back ), loans to big corporations and other governments will not be allowed to fall entirely upon the bank’s owners as it should, they go into default. This is done under the argument that you have heard many times before, that if these corporations or banks are allowed to fail, the nation would suffer from unemployment and economic despair, so you the taxpayer should bail them out.

A loan to a poor country for hundreds of millions of dollars is just as easy to process, if not easier than a $50,000 loan to a person to start a business. Banks want to generate the greatest amount of profit from the least amount of effort. If the loan defaults on the poor country, the Federal Government will ” protect the public” and make sure the bank continues to receive the interest. Not so much if the small business owner defaults. You start to see the big picture now? Banks really don’t want the loan loans paid off because they make money off the interest. That’s why Banks prefer the bigger loans, because if they fail, Our Friend, The Federal Government will make sure they are safe though Bailouts paid for by your clueless middle class taxpayer, because the rich pay very little if any taxes because the pay off the law makers to make sure they don’t pay taxes because they are smart. Starting to get why we lend money to poor countries that can ever repay now?

And finally the FDIC is a scam as well. It will never have enough funds to cover loses if the bank becomes insolvent. It’s a political scam to bailout the Elite Banking Cartel. You see the first line of defense is the bank bailouts though tax dollars. Second line of defense is the FDIC to come in and make those payments and the banks don’t want that. If this happens management is fired and what is left, the bank is absorbed by another bank. Stocks will plummet, but only small stockholders will be affected. Because those with controlling interest saw this coming and sold their stocks while they were still high and ran. The people who create the problem rarely suffer the consequences of their actions and this needs to stop. The final cost of the bank bailouts is passed on to the public in the form of a “hidden” tax called inflation which is the lowering value of the dollar.  As you see this is happening today as we write this blog. The dollar has been on a steady decline since the 70’s when we went off the gold standard. That why it is important to protect yourself with appreciating assets like gold, silver, land, etc. To start saving in appreciating assets today with At Cost Metals or with Quicksilver.me

Next blog chapter 3 Proctectors of the Public.

Chapter 1 The Journey to Jekyll Island  

Chapter 3 PROCTECTORS OF THE PUBLIC