In spite of the smoke and mirrors and the accounting tricks, the true aspect of this transaction remains: it is the people’s money. Through the fingers of the Secretary of the Treasury the hard-earned value of the citizen-produced GDP continues to flow into the coffers of the International bankers as the Leviathan government buys elections and the masses deliver their vote.
This is the route to slavery; the chains of debt that would encircle every citizen, and those frugal taxpayers and savers who resist the offer will be indebted anyway…by the mob indebted to the FHAs.
Ellen Brown on Global Research today recaps Why Bankers Rule the World thusly: In the 2012 edition of Occupy Money released this month, Professor Margrit Kennedy writes that a stunning 35% to 40% of everything we buy goes to interest. This interest goes to bankers, financiers, and bondholders, who take a 35% to 40% cut of our gross domestic product.
She begins: “That helps explain how wealth is systematically transferred from Main Street to Wall Street. The rich get progressively richer at the expense of the poor, not just because of ‘Wall Street greed’ but because of the inexorable mathematics of our private banking system.
“This hidden tribute to the banks will come as a surprise to most people, who think that if they pay their credit card bills on time and don’t take out loans, they aren’t paying interest. This, says Kennedy, is not true. Tradesmen, suppliers, wholesalers and retailers all along the chain of production rely on credit to pay their bills. They must pay for labor and materials before they have a product to sell and before the end buyer pays for the product 90 days later. Each supplier in the chain adds interest to its production costs, which are passed on to the ultimate consumer. Kennedy cites interest charges ranging from 12% for garbage collection, to 38% for drinking water to, 77% for rent in public housing in her native Germany.
“Her figures are drawn from the research of economist Helmut Creutz, writing in German and interpreting Bundesbank publications. They apply to the expenditures of German households for everyday goods and services in 2006; but similar figures are seen in financial sector profits in the United States, where they composed a whopping 40% of US business profits in 2006. That was five times the 7% made by the banking sector in 1980. Bank assets, financial profits, interest, and debt have all been growing exponentially.”
But, relates Brown, an attorney and president of the Public Banking Institute, “Exponential growth is unsustainable. In nature, sustainable growth progresses in a logarithmic curve that grows increasingly more slowly until it levels off. Exponential growth does the reverse: it begins slowly and increases over time, until the curve shoots up vertically.. Exponential growth is seen in parasites, cancers… and compound interest. When the parasite runs out of its food source, the growth curve suddenly collapses….”
http://www.globalresearch.ca/why-banker ... ld/5311833IOW, the debt will continue until the system collapses. And by the rush of post-2012 election frenzy, it looks like its on its way.