The Reichstag fire of the financial world
I haven't seen anyone compare today to 1933 Germany, but I told a friend on Tuesday -- i.e. before the latest developments that only proved me correct -- that what we're looking at really is a Reichstag fire: an excuse for government to declare an "emergency" and assume totalitarian powers in response to the "crisis," with the vast majority of the people so blind to the real story that they wholeheartedly embrace the new tyranny.
The simple truth: there is no liquidity/credit crisis, other than what's been engineered. But the U.S. and several European governments want us to believe this myth of a "crisis," so that we'll turn to them as our saviors.
Their motive is so obvious now: the U.S. and these European governments have the ultimate goal of nationalizing their respective banking systems. Iceland has already nationalized its three largest banks, while Germany and the other major economies have already established "shields" that are ostensibly to protect account holders. And now the U.S. Treasury might start "injecting liquidity" into banks -- in exchange for ownership. This article has a nice picture of Chuck Schumer, who knows all about spreading rumors to spur the collapse of an otherwise solvent bank -- so that the feds could take it over in the name of "protecting" depositors. George W. Bush and Hank Paulson have now taken that to a new level that even FDR would envy.
As I've explained here and here in comments at friends' blogs, there is in fact no shortage of money to lend, only a lack of lenders' willingness to lend it out -- that might seem semantics, but there's a big difference!
It won't matter who wins the election. Under Bush, we've already trudged enough on the road to nationalization of education, health care, energy and now finance. Soon it will all be complete. Good heavens, people, wake up.
Sigh, sometimes I feel like the few of us who understand are Cassandras, who won't be believed until too late. But I did reach someone tonight, a friend who's been wondering about these economic happenings and asked for my opinion. Now he sees. But we aren't enough.