Gulag Blog

US bankers like local Third World warlords intercepting monetary stimulus aid

Stacy Summary: Good mornin’ y’all.  Yes thanks for all the great links in the latest jibber jabber.  Here is what I am reading this morning.  The second link from Jesse is very interesting.  Read it and let me know your thoughts in comments please!

• Kaupthing chief becomes first senior banking exec to be formally classed as ‘criminal suspect’

• The case for deflation, stagflation & implosion (must read)

The monetary stimulus of the Fed and the Treasury to help the economy is similar to relief aid sent to a suffering Third World country. It is intercepted and seized by a despotic regime and allocated to its local warlords, with very little going to help the people.

By far this presents the most compelling case for a deflationary episode. As the money that is created flows into financial assets, it is ‘taxed’ by Wall Street which takes a disproportionately large share in the form of fees and bonuses, and what are likely to be extra-legal trading profits.

Tags: implosion, stagflation

No comments yet.

Leave a comment