Déja Vu? Morgan makes the margin calls

According to Reuters a few days ago, banks in the U.S. are facing a systemic margin call, $325 billion hit. This is somehow reminiscent of 1929 when a similar thing happened.

Back then, the U.S. was doing pretty well and most people had built up savings with their local bank. These small community banks (like Jimmy Stewart's in It's a Wonderful Life) were not part of the global money machine, which made them a target for the dark powers. The stock market was thriving, but that meant many companies were over-valued.

The Bilderbergs of the day hated the idea of money just sitting around, and needed to get their hands on it somehow. Tightening the money supply (i.e. the Fed printed less) and making huge margin calls accomplished three things.

  • It emptied the banks vaults and caused panic amongst the ordinary folk who liked to see 'physical' money. The smaller banks were wiped out and the rest were amalgamated into large corporations.
  • It absorbed the savings of populace. (They never saved money again. In 1933 they were forbidden from owning gold, in case they could prepare for another recession, and are nowadays defined as 'consumers' who owe 105% of their disposable income.)
  • It enabled the orchestrators of the crash to purchase the steel, cotton, and every other industry, at bargain basement prices.

More recently, we have seen U.S. wage earners encouraged to play the stock market with their savings, as all their 401k's already do. The frittering of the biggest  budget surplus in history. Not to mention Bush's insane plan to drop the entire Social Security fund (more money just lying around) into the stock exchange.

And now (our friends at the Fed again!) have printed so much money to give to Blackwater and Halliburton that the dollar has dissolved. But where has all that 'value' gone?

All this money will eventually be funnelled to the wealthy few (who don't pay tax) with their hands on the levers of power. It's called the trickle up effect.

You'll never save money again–only owe it. Annoyed yet?