Posted on December 22, 2014
by Jerry Alatalo
ny man or woman familiar with former U.S. Treasury Department official Paul Craig Roberts knows he doesn’t pull punches when it comes to speaking his truth. One good example of this comes from the following discussion with Greg Hunter when he talked about the “Citigroup provision” tacked on to the U.S. government omnibus spending bill.
The banker-written legalese repeals the most important legislative initiative in the Dodd-Frank rules, where banks have to move their derivatives gambling to subsidiaries not insured by the FDIC, or taxpayers. The omnibus bill passed the House and Senate despite a few strong opponents, Senator Elizabeth Warren the most forceful in her focused speeches against. Now the American taxpayers are “on the hook” if/when any of the God only knows how many trillions of dollars in bets by the banks go south.
Mr. Roberts said about the Citigroup provision: “This is sick, and shows the United States government is the most corrupt on Earth”. Very strong words from the former Treasury official in the Reagan administration. Unfortunately, most elected lawmakers in Washington, D.C. failed to utter words equivalent to Roberts’. In essence the man simply spoke the truth. His perception is that either the Citigroup provision became inserted into the “must pass” spending bill because there may possibly be an imminent crash of a massive derivatives bubble in the trillions of dollars, or that the CEO of Citigroup has a very large ego.
Given the FDIC stock of reserves to cover depositor losses does not even come close to the potential derivatives losses now insured after the bill passed, Roberts, without delving into the subject, spoke of the term “bail-in”. This is when banks cover their losses by confiscating money from depository accounts, and many remember the highly upset Cypriots who went through experiencing bail-ins. Perhaps Citigroup’s CEO has more fear of massive losses from derivatives bets than any extraordinary liking for himself in the form of a giant ego.
In other words, the Citigroup provision does not increase confidence in the American economy, but can only be seen as a strong warning of rough waters ahead. There is no reason that the Citigroup provision cannot become repealed, and the U.S. Congress should rightly repeal it. Citizens from every state in America should take strong action in opposition to this terrible legislative action, and demand that it become stricken now.
Repeal the Citigroup provision now.
Paul Craig Roberts points to two possible causes for the Russian ruble’s recent drop. Hedge funds are selling the ruble short, or someone is manipulating the ruble and has no interest in, or potential to, realize profit or loss. He told Greg Hunter that nothing can explain why the Russian ruble is falling, that it is clearly a manipulation, and that Russia and China are both disadvantaged because their economists have been trained in neoliberalism, what Roberts sees as the main tool of U.S. financial imperialism.
Roberts perceives that Russia and China have established economic systems that are “deplorable”, and dangerous to their own national economic interests – even more dangerous than sanctions. In the following video, a Russian man by the name of Evgeny Fedorov describes Russia’s situation as one where the Bank of Russia, its version of America’s central bank the Federal Reserve, is legally a foreign-controlled central bank, and that Vladimir Putin has no authority over it.
Honestly, what he describes in Russia’s monetary system is new information and surprising; however, if he is giving an accurate assessment of what is occurring in Russia, the events rival the stuff found in the late Tom Clancy’s novels. If he is correct, the central bank of Russia is not controlled by the Russian people, it clearly shows the people of Russia are not sovereign or independent, and that there are perhaps some big-time changes coming soon at their central bank. Could the same observations and circumstances apply to the privately owned Federal Reserve central bank of America?
(Thank you to New Insight at YouTube)
Paul Craig Roberts discusses resolutions recently passed through the U.S. House and Senate – unanimously in the Senate, only ten in opposition in the House of Representatives, as Roberts puts it, “demonizing” Russia, defining it as a great threat, with terms for the sending of military arms to Ukraine so Ukrainians “fight Russia in place of the U.S.”, all, according to Mr. Roberts, for the goal of breaking economic, political, and cultural relations between Europe and Russia.
He mentions the “Matrix” nature of awareness in these times where economic, military, and political announcements from government institutions stand far from true conditions lived by the American people and those of other nations. Roberts says “we live in a totally made up world”. Paul Craig Roberts is a man whose messages are not pleasant to hear, like Al Gore’s inconvenient, but most certainly pass the test resulting in worthiness of concerned citizens’ highly focused attention.
(Thank you to Greg Hunter at YouTube)