Roubini: Banking System is "Bankrupt", "Effectively Insolvent" → Washingtons Blog
Roubini: Banking System is "Bankrupt", "Effectively Insolvent" - Washingtons Blog

Tuesday, January 20, 2009

Roubini: Banking System is "Bankrupt", "Effectively Insolvent"

Leading economist Nouriel Roubini said today that the U.S. banking system is "bankrupt" and "effectively insolvent":

“I’ve found that credit losses could peak at a level of $3.6 trillion for U.S. institutions, half of them by banks and broker dealers,” Roubini said at a conference in Dubai today. “If that’s true, it means the U.S. banking system is effectively insolvent because it starts with a capital of $1.4 trillion.” ***

“The problems of Citi, Bank of America and others suggest the system is bankrupt,” Roubini said. “In Europe, it’s the same thing.”

Polls show that Americans overwhelmingly think the government should stop providing money to the banks.

The people are right. Stop throwing our hard-earned taxpayer money at a corpse.

British banks are also "technically insolvent".


  1. While the financial system may be "technically" insolvent, it is not actually insolvent. Granted that their on-the-books assets may be only 1.4 trillion dollars, the wealth they have accumulated in their off-the-books holding of 300 million human slaves and the corresponding labor value of those slaves MORE than makes up for the fiscal shortfall shown by standard accounting methods.

    For anyone out there still refusing to admit that they are a slave, I propose a test. Try not paying up when the IRS leg breakers come around. See what happens.

  2. Well, Caver, I'm not a slave, I don't pay taxes and I've never had any problems with the IRS. It's easy, I simply live below the federal taxable income. I've found that reducing my standard of living has greatly improved my quality of life. I grow my own food, work part-time at a job I thoroughly enjoy, and I don't own a car. And I've never been happier!

  3. @ Justin....

    You are one smart slave....

  4. It is still possible to live in the U.S. without paying taxes. In 2004, We The People Foundation filed a class action lawsuit against the IRS alleging that the Federal Income Tax is unconstitutional based on it being a direct tax that is unapportioned. The IRS Commissioner and the powers that be failed to respond adequately to this lawsuit, and likewise failed to produce the law requiring Americans to file a 1040. The Supreme Court has upheld the fact that one's wages are not considered taxable "income" in at least 8 cases. Corporate "profit" is considered "income" and is legally taxable under the Constitution. One's wages are not.

    There are options, however, for those intimidated by the system who do not wish to "rock the boat" and yet desire to keep their income. Setting up a common law pure trust, which by nature is insulated from creditors and taxation, and changing one's W-2 with their employer to reflect no federal withholding, is one way of going about it. One can simply donate the bulk of their income into a trust thereby avoiding the need to report.

    Secondarily, for those who are still in debt, please do not wait until the banking system implodes and this country slides into a full-scale depression in hopes that your debts will somehow be canceled out. It is not an entirely implausible thought that legislation could somehow be crafted to secure the physical labor of those now in debt by forcing them to work in the future in "debtors camps" (currently being constructed throughout the U.S. under the watchful eye of FEMA and DHS). There is a biblical principle which states: "The borrower is servant (slave) to the lender." Proverbs 22:7. It is far better to discharge debt now through one of several means:

    Option 1: create a new contract with your alleged creditor (I say "alleged" because banks really do not actually lend anyone money, but rather create "credits" to your account, which they themselves create through a commercial lein and then "loan" to you, charging you usurious amounts of interest in the process -- it is a scam) through a "novation", thus discharging your unsecured debt.

    Option 2: file a UCC-1 Financing Statement redeeming your "strawman" (see Black's Law Dictionary) and accept all debt for value, thus discharging your secured debt.

    Ultimately I agree with Justin in the practice of growing one's own food for self-sustainability and simplifying one's life. This country is about to go into the worst depression in its history. It would be wise to begin now physically and spiritually preparing for the soon coming crisis.



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