Wednesday, July 27, 2011
"Once again, while striking fear into lawmakers and the American public by stoking fearmongering about the inevitability of a catastrophic collapse, the administration is fully aware that the system, maintained as it is by a fraudulent debt-based fiat money system, can always be kept artificially inflated for that bit longer."
Administration hypes depression and collapse if debt deal not reached, tells banks the opposite
Paul Joseph Watson
While publicly fearmongering about a new great depression, the sun failing to rise, and the sky falling if the debt ceiling is not hiked, the Obama administration has been secretly telling big banks that there’s no chance of a default, echoing how the 2008 bailout was sold on hyped threats and intimidation of lawmakers.
The rhetoric was heightened yesterday when White House Communications Director Dan Pfeiffer warned that the GOP’s inability to compromise “could potentially put us towards a depression,” adding, “we are seven days away from an unprecedented financial event in this country’s history.”
Treasury Secretary Tim Geithner, who has been busy hyping the inevitability of a default for weeks, again told news shows Sunday that the government would be unable to pay its bills if an agreement is not reached, a talking point that has been enthusiastically parroted by President Obama.
However, that tone doesn’t quite match with what the Obama administration is simultaneously telling top executives at major U.S. banks, assuring them that “such an event won’t happen.”
“In a series of phone calls, administration officials have told bankers that the administration will not allow a default to happen even if the debt cap isn’t raised by the August 2 date Treasury Secretary Tim Geithner says the government will run out of money to pay all its bills, including obligations to bond holders,” reports Fox Business.
Once again, while striking fear into lawmakers and the American public by stoking fearmongering about the inevitability of a catastrophic collapse, the administration is fully aware that the system, maintained as it is by a fraudulent debt-based fiat money system, can always be kept artificially inflated for that bit longer.
Indeed, the doomsday rhetoric is likely to be nothing more than a ploy to increase the administration’s bargaining power and its bid to seize the power of the purse from Congress. We saw an almost identical tactic used during the 2008 bailout debate, which was eventually rammed through on the back of bellicose threats about martial law and economic armageddon.