WHY OBAMA IS REALLY ATTACKING THE BANKS

You can’t have a twelve trillion dollar national debt unless someone is willing to lend you the money! China has been accommodating, but there’s a limit to what they can absorb without major financial repercussions. The traditional source has always been American Banks investing their depositors’ funds in U.S. Treasury bills, but pesky private businesses need bank loans to grow if there is to be a recovery, and that will use up money Obama wants to scoff up to service the gargantuan debt. So where will the money come from to fund the monstrous debt?

ANSWER: Simply impose restrictive regulations on banks, preventing them from using their funds to buy and sell securities for their own account, i.e. “proprietary trading.” If they can’t use their own funds for that purpose what are they going to do with them? Buy more Treasurys. Unfortunately, this is just part of the strategy of Obama, and apparently Bernanke, to use the power of the federal government to compete with its own citizens in the private sector for funds. The effect is to starve the productive private sector of needed funds for expansion, and grow the public sector which produces nothing.

We hate to say “we told you so”, but months ago Bernanke showed his true colors by describing in detail the mechanics of how the Fed would starve the private sector to feed the public sector. That time the context of his comments was how the Fed would fight inflation caused by the huge debt. For a description of the destructive plot see OBAMA AND BERNANKE’S THREE STEP INFLATION SCAM.