Bad news for the so-called “captains of finance” on Wall Street. The man truly doing God’s work has arrived to prove that, the U.S. banking system, indeed, is insolvent…
Did you know that, if you had been born at the time when Jesus walked the earth and had been given capacity to save $1 million dollars per day, as well as remain alive to this very day (for the sake of this discussion let’s just assume the water he turned to wine was just kick-ass incredible ;), you, today, still would not have amassed $1 trillion dollars.
That’s right. $1 million dollars added to your savings every single day, then to now, would have you still coming up short of $1 trillion dollars. In other words, a trillion dollars is a lot of money.
Now, consider the tens-of-trillions of dollars both the U.S. Treasury and the Federal Reserve have thrown at the banking system over these past few years. Tens-of-trillions of dollars! You would think this a mighty sum of juice: an endless font of financing available to kick-start a multitude of projects! These, of course, would offer employment opportunities to today’s swollen ranks of Americans who are desperate for work!
So, what is up with Friday’s dismal GDP report?
Sure, you can go off on all sorts of tangents if you wish, citing greed and corruption behind this travesty. With all that money being thrown at the banking system, you might scream where’s the beef? Someone must be on the take BIG TIME!
Or you can come to terms with the simple truth: the banking system is insolvent.
The tens of trillions of dollars the U.S. Treasury and Federal Reserve have thrown at the banking system have served one purpose, and one purpose alone: mask the fact the banking system is saddled with a mountain of so-called assets whose real value is nowhere near the value at which these assets are marked on banks’ books.
In other words, what we have here is a shell game. Were it otherwise the economy by no means would be languishing. Quite the reverse! We’d be booming.
Congress must come to terms with this fact, as must anyone wishing to save Social Security, Medicare, the nation’s defense, the post office, public libraries, schools, and on and on. There simply are no measure of cuts that can hide the fact the U.S. banking system is hopelessly insolvent. Truth is cuts being demanded in Congress can only accelerate the banking system’s collapse.