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Greg Palast has published a bombshell article proving what many have long suspected -- that the global financial crisis was deliberately engineered by a small cabal of bank industry bigwigs. A confidential memo -- a very, very damning memo -- was leaked to Palast. It was written in November of 1997 by Timothy Geithner.

Palast writes:

When a little birdie dropped the End Game memo through my window, its content was so explosive, so sick and plain evil, I just couldn't believe it.

The Memo confirmed every conspiracy freak’s fantasy: that in the late 1990s, the top US Treasury officials secretly conspired with a small cabal of banker big-shots to rip apart financial regulation across the planet. When you see 26.3 percent unemployment in Spain, desperation and hunger in Greece, riots in Indonesia and Detroit in bankruptcy, go back to this End Game memo, the genesis of the blood and tears.

The Treasury official playing the bankers’ secret End Game was Larry Summers. Today, Summers is Barack Obama’s leading choice for Chairman of the US Federal Reserve, the world’s central bank. If the confidential memo is authentic, then Summers shouldn’t be serving on the Fed, he should be serving hard time in some dungeon reserved for the criminally insane of the finance world.

The memo is authentic.

After confirming the authenticity of the memo, Palast explored how the end game worked: By manipulating other countries via the WTO, these powerful few - who Palast calls "The Big Bank Five" - were able to alter banking regulations around the world in order to expand their shady derivatives trading. Read the article. It's quite condemning.
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Comment Preferences

  •  I used to really like Greg Palast because he (3+ / 0-)
    Recommended by:
    alain2112, sturunner, MsSpentyouth

    always had the inside track. Then I realized, he always had the inside track.

    If the confidential memo is authentic, then Summers shouldn’t be serving on the Fed
    I'm not sure how he determined the memo was authentic. I just don't believe him anymore. I unsubscribed from his mailing list.

    That doesn't mean I think Larry Summers should be the head of the Fed.

  •  Altering a regulation is not a crime. (2+ / 0-)
    Recommended by:
    Mr Robert, cynndara

    The result, if someone is defrauded of assets, is deprivation under cover of law.
    The U.S., in particular, has a long history of employing the law to deprive people of rights, rather than provide for their needs. Slavery was legal. Sterilization was legal. Child labor was legal. Putting Native Americans on reservations was legal. Putting Japanese people in internment camps was legal. Detaining and deporting foreign nationals who aren't rich enough to stay in hotels is legal.

  •  End Game For a Number of Regulations, But (8+ / 0-)

    I think we'll need something a lot more substantial to show that they wanted the regulations gone specifically in order to crash the economy.

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Sat Aug 24, 2013 at 04:23:21 PM PDT

  •  It helps to read the entire Memo (2+ / 0-)
    Recommended by:
    sturunner, MsSpentyouth

    These lines jumped out at me:

    As formal offers from several of the target markets have not been submitted, the firms are reluctant to be pinned down on their views.  However, I believe that the securities industy is broadly satisfied with the outlines of the deal and would be prepared to support U.S. MFN commitment; the banks are more reticent.
    Bold for emphasis.

    This was nothing more than a tactic to have the security firms and bankers to lobby for a WTO treaty so that it did not fail. The memo points out that there was no unanimity on the term.

    How Palast jumps to ConspiracyOMG from this memo is straight out of the underwear gnomes 1,2,3.

    There was only one joker in L.A. sensitive enough to wear that scent...and I had to find out who he was!

    by virginislandsguy on Sat Aug 24, 2013 at 04:38:12 PM PDT

  •  Not That I Know Anything, but... (2+ / 0-)
    Recommended by:
    nuclear winter solstice, kaliope

    here is my theory.  The people appointed to the positions of Treasury Secretary and Federal Reserve Chairmen are determined by the banks.  Obama HAS TO appoint whomever they decide gets appointed to those positions.  

    I am not normally a conspiracy nut.

    If the president goes against their wishes, they blow up the economy and ruin a president's legacy.

    Bush did something to piss them off.

    Someday soon Republicans are going to drown Grover Norquist - in a bathtub.

    by nuketeacher on Sat Aug 24, 2013 at 05:54:32 PM PDT

    •  Not a nut. (1+ / 0-)
      Recommended by:
      urnumbersix

      You'll find exactly the same interpretation by John F Kennedy's Harvard history professor Carrol Quigley in his Tragedy & Hope: A History of the World In Our Time , and within the first hundred pages of a thousand-page tome.

      The people who supposedly regulate the banks are working for the bankers.  They are "strongly suggested" to heads of state, who are also working for the bankers.  Heads of state like Presidents are basically expected to keep the world working so that the bankers don't have to be bothered with anything except making money.  Regulators are supposed to keep the economy going regardless of what both states and bankers do to disrupt it by pursuing their individual purposes.  If either set of administrators do well, the bankers reward them with fat speaking fees, permanent foundations, and occasional golf dates at the really good places.  If they do poorly they simply vanish into obscurity and paint pictures in the bathtub.  

      No one in the upper levels of Society ever has to deal with real consequences such as hunger, homelessness, or physical abuse as a result of their actions.  Except for Heads of State, who occasionally get assassinated.  But you might notice that the CEOs of megabanks never have to worry about anything like that.

  •  I miss the days when storming a castle... (5+ / 0-)
    Recommended by:
    AmBushed, kaliope, Brian B, DRo, cynndara

    ...ACCOMPLISHED something.

    Eventually, the rest of us are going to want all our stuff back....

    trying to stay alive 'til I reach 65!

    by chmood on Sat Aug 24, 2013 at 06:46:25 PM PDT

  •  Tipped for linkie. (1+ / 0-)
    Recommended by:
    urnumbersix

    Good article.  Yes, Palast's claim goes a little overboard.  I'm sure they weren't DELIBERATELY TRYING to crash the economy.  They were just trying to grab as much of a lucrative business as they could stuff in their pockets, without concern for the possible consequences because according to the theory of the time, the global trading system "diversified" and therefore "mitigated" and controlled risks by spreading them out to everyone.  It doesn't change the fact that as we have all become painfully aware AND this article makes very clear (and not CT), the rules are made at the top by a very select group of very wealthy people for their own benefit, and all the putative democracies in the world are just along for the ride, because what voters are allowed to control is a handful of slots in casting, but never the script.

    And to the extent we ARE allowed to influence casting, it demonstrates once again (as if we needed any more demonstration) that Larry Summers is not qualified for a serious role.

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