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.
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I find it simply amazing that 5 years later I still see at least one article every day on this subject. What more could possibly be added to the discussion at this point?
I can’t seem to remember, but did people complain about Enron all the way until 2007?
Can you comprehend how much $85 billion per month for the market is?
The entire wasteful Vietnam War cost $111 billion.
It cost $25B for the Apollo Program.
True, they were in 1970’s dollars, but really, it is just obscene…
alleged Apollo program.
Well put Conspiracist Fly
thanks
Everybody has fuckery fatigue. It’ll take frozen ATMs and an internet lockdown to get our attention.
Succinctly said!
P.S. That was well written and entertaining. A+
fresh crisp 20 dollar bills from the bank,all with dates of 2009.why are they printing fresh money with 2009 dates?
That pretty much sums it up. Great writing Scott.
Thank you, Scott. What has occurred is disgusting… absolutely disgusting.
Equally so is the lack of criminal prosecutions.
The magnitude of the theft is overwhelming. Wonder how much of that money is now offshore.
Everyone in finance banks on it and nobody outside of finance wants to hear about it
This is exactly what happened.
Everyone was ooooohhhh so scared of “financial collapse.”
Timmy, scared the president.
Hank had already scared Congress.
I believe that if many of the large banks had been left to fail. And there were no bailouts..Small banks and Credit Unions would start to consolidate and lend. An end to lending by anyone but a local loan shark is a complete joke IMHO.
Man this was a good read. Well done Scott. I guess you canceled the lobotomy?
and it won’t even get me a screenplay deal…
Good and truly entertaining read as only people see the price of the market but yet realize what it takes to get there and in the end reversion will take place but emotions is what will drive those extremes.
U left out the part when BO sucked TG’s dick, but I respect poetic license and do not require a re-write.
I don’t see why Geithner had to beg Obama. Obama is a big bank crony all by himself.
He didn’t beg. He educated…
wow, great post. all bubbles burst. i see it but none of my friends want to hear it. this reads like the book of revelations , many will hear but few will heed. globalization is failing but this was the plan all along. we will calmer for help and accept any resolution . we are like frogs in a pot of water, their turning up the heat now. no-one will jump out til there cooked.
On this day of another almost perfect SPX fractal of the financial collapse, market crash, and engineered QE-ZIRP fueled bull over the past five years, I was reminded of this recent short presentation about predicting the collapse of bubbles: http://www.ted.com/talks/didier_sornette_how_we_can_predict_the_next_financial_crisis.html
Although it has become self evident that Bubbles R’ Us is policy now, the price to be paid could still be some ways off. After all, didn’t aggregate market cap at the peak of the dotcom bubble hit about 150 percent of GDP before the denouement? Of course, we then had a much stronger real economy.
http://youtu.be/bT7rdn3ypiM
It’s amazing how you obama drones always present him as a heroic figure, victim of circumstance, etc. You will hold Geitner responsible, but not Obama. He’s truly a moral champion on white horse but fell to the temptation to make his presidency famous. Right. He never had a bad intention ever in his entire life, but everyone else around him always does. That doesn’t sound even slightly odd to you? Unbelievable.
It is important for people to keep their mad on, and you’re are doing god’s work (no Blankfein) when you remind people of the ongoing rape. However, I am certain that Obama was educated about who gets what BEFORE he was permitted to ascend to the presidency.
A surprise FED appointment will indicate if Obama has any testicular remnants – I expect not to be surprised.