The Financial Times reports that “the U.S. Federal Reserve is considering the possibility of arbitrarily cutting the amount of interest it pays on money that it borrows from private commercial banks.” Private banks, of course, make a great deal of money this way.
But should the Fed make this decision, banks that have historically paid their customers a small amount of interest for the use of their money may well begin “…charg[ing] private individuals and businesses for the privilege of ‘parking’ their money in an account for a time.”
Could such a policy create a bank run? That’s what happened in Cyprus when its government decided to TAX all private bank deposits as a means of, “…feeding [that] government’s never-ending hunger for money.” In fact, Cyprus closed all of its banks for 10 days, after which depositors were permitted to withdraw a maximum of just $383 per day. Access to its citizens OWN MONEY had been limited by ruling government authorities.
In the U.S., Obama appointee to the Federal Reserve Board Dan Tarullo has demanded greater power to order banks closed. He and the Fed are also requiring that foreign banks “…report all American-owned assets and enforce American banking rules.”
In short, the federal government is seeking to “…control private people’s money as much as possible and prevent it from leaving the country!” Such authority will permit the government to control, even seize the financial assets of the American people should a “financial meltdown” occur in the United States.
The overall purpose of our political ruling class is described in this way:
“…fundamentally, and philosophically, there is an undercurrent to all of these policies and proposals: it is the belief that the well-being of the institutions of government is more important than the well-being of individual persons and an individual’s right to possess his or her own money.”
The survival of the Federal Government is more important than that of American citizens–the disposable little people. Anyone who thinks this is not precisely what is believed by Chuck Schumer, Nancy Pelosi, Barack Obama, John McCain, Lindsey Graham, Paul Ryan and countless other members of the political ruling class is in for a very rude awakening, should the worst happen and these criminals one day achieve their fondest desires.
We’ve been warned.
Photo credit: terrellaftermath