Five years into the Obama Administration, many wonder how this “Community Organizer” came to the place where he has had nothing to say about the Federal Reserve’s “Royal Scam” of printing trillions of dollars for the Banks and Wall Street to enjoy. My DC sources tell me that there was a conversation between the then new Treasury Secretary, Tim Geithner and Obama the day after the Inauguration and it went something like this:
Scene: The Oval Office. Obama sitting behind the big desk feeling both confident of his achievement yet scared about the financial goings on in the world at that moment.
Obama: Hey Tim, these banks are really pricks. They destroy the world of finance, force us (the government) to bail them out, and they won’t play ball. What do I do with them? Let’s put these cocksuckers in their place!
Tim: Congratulations, Mr. President. You’ve accomplished what few men ever could. Feels great, I bet. But I’ve got to burst your bubble a little bit now, sir as we’ve got some real problems.
Obama: Burst my bubble, Tim? That won’t happen! I’m on cloud nine and we are gonna clean house. Tell me what we need to do to own these fuckers and I’ll do it!
Tim: Let me ask you a question; Do you want to be the President who presided over the Greatest Great Depression where the world completely falls apart? Do you want to be the man who presides over the obliteration of the worldwide banking system as we know it? Do you want to be the man who single handedly took the American way of life and dumped it in the gutter?
Obama: Is this a rhetorical question, Tim?
Tim: Or do you want to be the President that took over this country, that is swimming in a world of shit, and cleaned it? Made it shine like a motherfucking diamond? Would you like to be remembered as the President who presided over the greatest economic comeback, a miracle!, in the history of the financial world and to preside over one of the greatest stock market rallies in history? Hmm? What’s it gonna be, Mr. President?
Obama: Again, with the rhetorical questions Timmay! The answer is obvious! Now stop fucking around and get to the point. I’ve got a lot I can do here. Programs to help the poor. An entire infrastructure to rebuild. Peace to make with our enemies. Come on!
Tim: Do you really want to know what you should do? What you must do? You won’t like it, Mr. President. You won’t like it one bit. But if you don’t do it, you will be remembered as the worst President since Herbert Hoover.
Obama: Go on then.
Tim: Well, the first thing that you’ll have to do is to shut up.
Obama: Excuse me?!
Tim: That’s right. You must not say a word when we give banks and Wall Street an endless treasure trove of dollars. When we give them trillions of dollars.
Obama: What the fuck are you talking about? I’m not giving one red cent of Taxpayer money to those bastards.
Tim: You won’t have to. Not one red cent! That is the beauty of the situation.
Obama: Go on…
Tim: As you know, Mr. President, I was the Chairman of the New York branch of the Federal Reserve, you know, those guys who regulate the money supply.
Obama: You mean Greenspan?
Tim: He resigned just before the shit hit the fan. Perfect timing, huh? It’s now his hand-picked successor, Ben Bernanke.
Obama: Oh yeah. I remember. He’s the guy who said the housing mess was contained and there would be no financial problems or recession!
Tim: Right. That’s the guy. But I told him to say those things to delay the financial panic. He knew exactly what was coming but was under my strict instructions to falsify in order to avert it. It eventually cost the taxpayers 700 billion dollars anyway. In fact, most of his “facts” that he speaks publicly will be untruths designed to build confidence in the financial system. Mr. President, aside from using raw dollars to meet our goals, the most important thing that must be bought is confidence. Confidence in the economy, in the banking system and most importantly, in markets.
Obama: Using “raw dollars to meet our goals”? Where the fuck is this money going to come from, Tim? And what exactly are we going to be doing with it?
Tim: Not us, Mr. President. Them. The Federal Reserve and Chairman Bernanke. They will create the money out of thin air. That is their job! It will show up as a debt on their balance sheet. Not ours. Not the governments. not the taxpayers. Theirs.
Obama: I don’t get it. How is this money going to be used? Shovel-ready projects? Are we going to buy houses from the Foreclosed upon? Give the money away? What!
Tim: We are going to buy shit, Mr. President. They will be deemed “investments” as it will be the shitty housing paper that banks fucked themselves with. Maybe we can get them to buy some government debt as well. And the beauty of it all is that there will be no government involvement, no government oversight. Nothing. It is not required according to their mandate. A committee will make a decision and it will be implemented using freshly minted money. No Congress, no Senate, no Republicans, no Democrats. I promise you that if you keep your mouth shut, everyone will too. It will work to everyone’s advantage who has capital or access to capital.
Obama: What? No oversight? How is that possible?
Tim: Easy. Did Greenspan need approval to lower interest rates? Nope. Bernanke won’t need approval to add debt to the Fed’s balance sheet. They’ll just print the money, buy assets in the marketplace, prices will rise and everyone will be happy again. But it will take some time and a lot of money. And that money will find its way in to the stock market.
Obama: How much time, how much money? And why the stock market
Tim: At least to the end of your first term, Mr. President and certainly trillions of dollars. The stock market is the only true arbiter of confidence in this country. Companies won’t spend or hire when their stock price is down. Consumers won’t spend if their retirement accounts are down by half! It is the most public and easily manipulated barometer of the economy, even though it really doesn’t reflect the economy. Really, it just helps those who already have the money come to the realization they could and should spend and hire.
Obama: So let me get this straight. If I just shut the fuck up about giving trillions of dollars to the fuckers that brought us to this fucked up place in our financial history, everything will be fine?
Tim: That is absolutely correct, Mr. President. The building blocks are already in place. Everyone is already on board. All I need is your approval and promise to NEVER SAY A WORD ABOUT THE MONEY, ever.
Obama: I don’t like this, not one fucking bit. I’ve got to go against everything I believe in as a human being. But I guess that’s what one must do when they become the most powerful person in the land. If it is that easy, then you have my word, Tim. And if you are right, you can retire at the end of my first term to fame and fortune. But you better be right or I will blame it all on you. And you will go down in history as the worst Treasury Secretary ever. Got it? Now get outta here! I’m planning a trip to the most stable Islamic country in the Middle East, Egypt.
Tim: Yes sir, Mr. President…Thank you, sir…You won’t be sorry.