Strategy now in place for systemic financial collapse as Federal Reserve expands 'too big to fail' bailout practices ... Globalists positioning for collapse

Monday, December 07, 2015 by: L.J. Devon, Staff Writer
Tags: financial collapse, bailouts, Federal Reserve

---

(NaturalNews) The 2010 Dodd-Frank financial reform law gave the Federal Reserve central bank the power to loan out large sums of money (hundred of billions of dollars) to individual companies that had failed in the marketplace and had become insolvent. The Dodd-Frank law allowed the Federal Reserve to be a puppet master of the economy. It gave a small group of globalist bankers the power to hand out bailouts to the big play makers on Wall Street. This is the opposite of free market capitalism.

For example, the Federal Reserve bailed out AIG and Citigroup Inc. when the companies failed, and couldn't pay their debts. The FED also bailed out JPMorgan Chase & Co after they risked it all and failed buying Bear Stearns, which was on the brink of collapse. Dodd-Frank essentially took all the risk out of doing business, allowing the largest companies in the US to become "too big to fail."

Federal Reserve destroying the value of the currency, accelerating income inequality

As the Federal Reserve printed erroneous amounts of money to bail out companies that had failed, they were simultaneously inflating the currency and destroying the value of the dollar. This kind of free-for-all money printing by the Federal Reserve negatively impacts lower income families the most, as costs for staple goods go up. The Federal Reserve has silently taxed the poor in the process of bailing out big business. This has rapidly accelerated income inequality in the country.

Now that the damage is done, the Federal Reserve Board has agreed to adopt a new rule going forward, blocking their ability to bail out individual companies. At first glance the new rule seems much fairer, but after looking more closely it becomes apparent that the rule won't end Federal Reserve bailouts. Instead, the rule expands the bailouts, allowing the FED to rescue the broader financial system instead of individual companies.

Are globalists positioning for a massive wipe-out of the financial sector? This seems to be the case. The FED isn't planning to rescue individual companies when they crash in the future. The FED is giving itself the power to hand out emergency loans to entire sectors of the economy, consisting of at least five companies at a time!

Sorry Bernie Sanders, but redistribution of wealth for more government control doesn't fix the root problem

This easy, unlimited credit favors the elite class and is perpetually destroying the value of the US dollar. The FED use the term "quantitative easing" to describe their limitless money printing, but as the supply of dollars increases, it's actual value diminishes.

Some politicians, like Bernie Sanders, advocate that the wealth of the top one percent be redistributed through new government programs, but this inevitably does not deal with the root causes of runaway printing by the Federal Reserve, which will continue to pump out dollars, even after the money is redistributed in favor of more government control. This will inevitably make the value of the currency worth less and less, driving up costs of everything in the economy. If anything, redistributing the money will make the collusion of business and government accelerate, encouraging greed and class warfare.

Are globalists preparing for a collapse greater than ever before?

By the way the FED is expanding their powers to bail out entire sectors of the financial system, it appears that the globalists are expecting an economic crisis bigger than ever before. FED Governor Daniel Tarullo, who deals with regulatory issues at the central bank, said there has been "a longstanding tension of confronting moral hazard with wanting to retain flexibility." This is the short, politically-correct term for saying "the FED operates without morals, but we have to in order to preserve the limitless power of big business. They are the cartels that run people's lives, and we will continue to make sure it stays this way."

So far the FED has printed out $710 billion in loans and guarantees to a number of financial companies that have collapsed. The FED, alongside the US government, has the disturbing power to pick the winners and losers in the economy. This will most definitely lead to another financial collapse, as the mistakes of big companies are perpetually rewarded by the FED.

Sources include:

Reuters.com