Sunday, October 11, 2009

Congresswoman Kaptur: There Has Been a Financial Coup D'Etat


In Michael Moore's new film Capitalism: A Love Story, Congresswoman Kaptur says there has been a financial coup d'etat, and that Wall Street - rather than Congress - is in charge.

In a must-watch interview with Bill Moyers broadcast Friday night, Kaptur also said:

  • The Federal Housing Agency used to insure 1 in 50 mortgages. But FHA now insures 1 in 4 mortgages, as the debt for bad mortgages has been dumped on the American people
  • "Banks have the power to create money". This again confirms and verifies that banks create money out of thin air, not based on the amount of reserve deposits on hand. See this and this
  • While - on paper - there are reserve requirements, banks have gone from 10 to 1 leverage (where they could lend out 10 times their reserves) to - in the case of JP Morgan - 100 to 1 leverage. But with derivatives, leverage might be much higher
  • Instead of holding hearings on the core problems with the financial system, Congress is holding hearings solely on arcane, peripheral issues

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3 comments:

  1. Mostly MagicOctober 11, 2009 at 5:48 AM

    What do you think of this post:

    http://jessescrossroadscafe.blogspot.com/2009/10/speculative-bubble-in-equities-and-case.html

    ReplyDelete
  2. AnonymousOctober 13, 2009 at 7:19 AM

    Skip Michael Moore entertainment. Educate yourself instead of enraging/entertaining
    yourself.

    Read END THE FED by Ron Paul.

    ReplyDelete
  3. Nicholas MeadOctober 20, 2009 at 1:23 PM

    Thanks for posting this excellent interview. Some candid stuff there from a Democratic politician and former IMF chief. The level of corruption within the US Government and especially Congress and Federal Reserve is shockingly highlighted here. It just goes to prove how entrenched corporate America and Government are. It's frightening how much state-corporate power the public is up against and what the next financial crisis might look like.

    ReplyDelete

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