Is A Bailout the Answer?

The US government has reached a deal in the form of a $700bn (£382bn) package in response to the worst financial crisis for decades. With Merrill Lynch being acquired by Bank of America, HSBC axing 1,100 jobs worldwide, Lehman Brothers filing for bankruptcy & Washington Mutual becoming the biggest US bank failure in history, is Wachovia next? And how can America recover? Will we slip into another Great Depression?

Not necessarily.

The Great Depression had thousands of banks failing and people losing their life savings, 25% unemployment and social unrest and tent cities of the poor,” says Allan Sloan, Washington Post and Fortune magazine columnist.

The fall-out of this credit crunch continues to make a huge impact:

  • The United States suffered its largest bank failure yet, when regulators moved in to close down Washington Mutual and then sold it to US rival JP Morgan Chase for $1.9bn
  • In a co-ordinated move the European Central Bank, the US Federal Reserve, the Bank of England, Bank of Japan and the Swiss National Bank announced new short-term loans to the banking sector worth tens of billions of dollars
  • Banks continued to cut costs, with UK banking giant HSBC saying it would axe 1,100 jobs
  • Shares in UK bank Bradford & Bingley fell another 20% to 17 pence before recovering slightly.
  • Japan added 1.5 trillion yen ($14bn; £8bn) into the market,  though it later removed 300bn yen of that.

If you don’t get anything out of this blog, just remember one thing and repeat it everytime you hear the word Federal Reserve in the news…especially in the next few days.

The federal reserve is a group of “Private banks”. They are hidden in a mask that says “I’m the government!” Search it on the web about it, then read Jefferon’s quote. This current day situation is like “The Prophecy of Thomas Jefferson”

Thomas Jefferson, Letter to the Secretary of the Treasury Albert Gallatin (1802)
3rd president of US (1743 – 1826)

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

The next few months will be tough… stay tuned.

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~ by spyaokid on September 28, 2008.

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