The “Break it Down” Blog

Remember that $700 billion bail-out that was forced down Congress’s throat with fear of military law being declared in the US if it wasn’t signed?

Remember how we said that everything taking place during that time (and now) maps perfectly to the market crash of the 1930s? And how we mentioned that the long-term fallout from that market crash had nothing to do with revised laws that protected anyone, but instead a massive world-wide consolidation of banks into more powerful super-banking structures?

Guess what? It’s happening again…

The New York Times reports that after the $700 billion had been shoved through congress and approved, the money that is getting dolled out is not being used at all to re-initiate loans, but instead to offer banks incentives and the means to further consolidate themselves by buying up smaller banks.

During an internal call at JP Morgan Chase, a reporter had an opportunity to hear an execs answer to the question of “What the bank planned to do with the $25 billion it got from the govt” with regard to re-opening loans. The response was chilling to some and expected by others:

“Twenty-five billion dollars is obviously going to help the folks who are struggling more than Chase,” he began. “What we do think it will help us do is perhaps be a little bit more active on the acquisition side or opportunistic side for some banks who are still struggling. And I would not assume that we are done on the acquisition side just because of the Washington Mutual and Bear Stearns mergers. I think there are going to be some great opportunities for us to grow in this environment, and I think we have an opportunity to use that $25 billion in that way and obviously depending on whether recession turns into depression or what happens in the future, you know, we have that as a backstop.”

More specifically, the money will be used to keep the bank in a position to further consolidate if this depression turns into a recession and smaller banks can be had on the cheap.

Surprising? I’d encourage you to watch “How the Banking System Really Works” and Zeitgeist The Movie if you can still see straight afterwards.

The icing on the cake for the nay-sayers, is the tax-breaks that the government further issued for banks worth millions:

And, in an almost unnoticed move, it recently put in place a new tax break, worth billions to the banking industry, that has only one purpose: to encourage bank mergers. As a tax expert, Robert Willens, put it: “It couldn’t be clearer if they had taken out an ad.”

If this is catching you all off guard and seems completely insane that your friendly neighborhood bank could wield controlling power over a government to completely dictate it’s own terms and laws, even in the face of destroying people’s lives, you really should take the time to better familiarize yourself with the Fractional Reserve banking system we use in the US and now in the majority of the rest of the world.

The series of Banking System movies referenced above will introduce you to the idea and how it started back in the 1700 or 1800s and how we went from “gold in the vault” to “imaginary numbers in a computer that can be changed at will”. It sounds far-fetched when you only start from what you understand about your debit card, credit card or checkbook, but if you get a better grasp on how the system functions first you see a clear line that cuts through from the past to current day.

You also begin to understand how Banks control everything.

If that sounded overly dramatic or too out-of-this-world for you, check out Zeitgeist Addendum for a complete analysis of the financial system functioning in the world today.

This isn’t secret or clandestine stuff… it is just what is. This is how our world works, this is how banks function. They exist to consume and they have to. You may not see it at a micro level (your checking account and your pay checks) but at a macro level (looking at how entire countries economies are bolstered or destroyed depending on what the World Bank wants to happen in that country) it’s clear.