The Beginning Of The End Ad
Gold Buying Guide: Golden Eagle Coins

Recent Posts

The Preppers Blueprint Economic Collapse Blog Get Prepared Now Ad

Enter your email to subscribe to The Economic Collapse Blog:

Delivered by FeedBurner

Bernanke Claims That The Fed Has Averted A Second Great Depression By Bailing Out The Too Big To Fail Banks

Share on FacebookTweet about this on TwitterPin on PinterestShare on Google+Share on LinkedInShare on StumbleUponEmail this to someone

Federal Reserve Chairman Ben Bernanke claims that the Federal Reserve averted a second Great Depression by bailing out the big Wall Street banks during the last financial crisis, and he says that if a similar financial crisis comes along that the correct “policy response” will be to do the exact same thing again.  This was the theme of the lecture that Bernanke delivered to students at George Washington University on Tuesday.  In previous lectures Bernanke has defended the existence of the Fed and detailed the history of Fed activities, but on Tuesday he addressed things that have happened since he has been at the helm of the Fed.  And according to Bernanke, he has been doing a great job.  Bernanke told the students that the “threat of a second Great Depression was very real” and that the Federal Reserve did exactly what needed to be done to fix the financial system.  Unfortunately, the truth is that all Bernanke did was kick the can a bit farther down the road.  You can’t fix a debt problem with more debt, and the debt bubble we are living in today is far larger than it was in 2008.  Will Bernanke still be trying to portray himself as a hero when this house of cards finally falls apart?

During his lecture to the students on Tuesday, Bernanke stated the following….

“I think the view is increasingly gaining acceptance that without the forceful policy response that stabilized the financial system in 2008 and early 2009, we could have had a much worse outcome in the economy.”

So what did that “forceful policy response” entail?

Well, on slide 24 of his presentation to the students Bernanke tells us….

• On October 10, 2008, G‐7 countries agreed to
work together to stabilize the global financial
system. They agreed to
– prevent the failure of systemically important
financial institutions
– ensure financial institutions’ access to funding and
– restore depositor confidence
– work to normalize credit markets

Please note that not all financial institutions got bailed out.

In fact, hundreds of small and mid-size U.S. banks failed during the financial crisis.

It was only the “systemically important financial institutions” that got bailed out.

So who decided which financial institutions were important enough to be bailed out?

The Federal Reserve made those decisions. There were no Congressional votes and no input from the public.  The Federal Reserve determined who the winners and the losers would be in secret and without any public debate.

Sure sounds “democratic”, eh?

But we are told to trust them because they are supposedly the experts.

So once the Federal Reserve bailed out the “too big to fail” banks, what was the outcome?

On page 25 of his presentation to the students Bernanke claimed that the bailouts successfully prevented the global financial system from collapsing….

• The international policy response averted the collapse of the global financial system.

But it wasn’t just big Wall Street banks that got bailed out.  Bernanke says that AIG was also bailed out because the insurance company was deemed to be too “interconnected with many other parts of the global financial system” to be allowed to fail….

Because AIG was interconnected with many other parts of the global financial system, its failure would have had a massive effect on other financial firms and markets.

Once again, we see that it is the Federal Reserve who picks the winners and the losers.

AIG got bailed out and was then able to pay 100 cents on the dollar of what it owed to Goldman Sachs.

That sure worked out well for Goldman Sachs.

In all, the Federal Reserve issued a grand total of more than 16 trillion dollars in secret loans during the financial crisis.

The big Wall Street banks got showered with cash while hundreds of smaller banks were allowed to die like dogs.

The fact that the Fed greatly favors the big Wall Street banks has allowed them to grow massively in size and in power.

Back in 1970, the 5 biggest U.S. banks held 17 percent of all U.S. banking industry assets.

Today, the 5 biggest U.S. banks hold 52 percent of all U.S. banking industry assets.

The “too big to fail” banks just keep getting bigger and bigger and bigger.

Yet during his presentation to the students, Bernanke tried to talk out of both sides of his mouth by claiming that it is not a good thing for some banks to be “too big to fail”….

“But clearly, it is something fundamentally wrong with a system in which some companies are ‘too big to fail.'”

So who is to blame for them being so big?

Well, the Federal Reserve is probably the biggest culprit.

Thanks Bernanke.

The big Wall Street banks are bigger than ever and they are also more unstable than ever.

According to the Comptroller of the Currency, the biggest U.S. banks have exposure to derivatives that is absolutely mind blowing.  Just check out these numbers which have just been released….

JPMorgan Chase – $70.1 Trillion

Citibank – $52.1 Trillion

Bank of America – $50.1 Trillion

Goldman Sachs – $44.2 Trillion

So what is going to happen when that bubble pops?

Is Bernanke going to zap tens of trillions of dollars into existence to bail out that gigantic mess?

Meanwhile, the debt bubble that we are all living in just keeps exploding in size.

Total student loan debt in the United States is over 1 trillion dollars at this point.  Consumer debt is rising.  Millions of mortgages are past due.

The American people are not in better financial condition than they were during the last financial crisis.  In fact, they are significantly worse off.

All over America, state and local governments are also drowning in debt.  In fact, there have been several very notable municipal bankruptcies lately.

And the U.S. government is racking up debt at a pace that is almost unimaginable.

When the last financial crisis began, the U.S. national debt was about 10 trillion dollars.

Today, it has risen to 15.5 trillion dollars.

So Bernanke did not fix anything.

The best that can be said is that he kicked the can down the road a little bit and made our long-term financial problems a lot worse at the same time.

Bernanke can create money out of thin air and loan it to his friends all he wants, but he is not going to be able to prevent this house of cards from crashing down indefinitely.

So grab a bucket of popcorn and get ready.  The next few years are going to be fascinating to watch.

  • tappedops

    “The next few years”… ********* i wish we had that long to party— i think thats more like the next few months. At best… petrobuck,Drivs,infltn…will kill us long before the first freeze…

    • michelle

      my thought it this :

      How do you avert something that is already happened?

      • Jami

        I’d call it a zombie economy. It doesn’t know it’s dead yet. Much like the 80’s movie, “Weekend with Bernie.”

  • prepply

    Perhaps we should not have bailed out anyone who was complicit in this mess in the first place…

  • I can sleep better knowing he is looking out for us

    . . . or is it that I am prepared to live in a world without a lot of money by harvesting my own food, generating my own electricity, etc.

  • Jodi

    Glenn Beck is calling for a day of prayer and fasting on May 17th. I plan on participating, we are going to need it.

    • Tim

      I’m not sure who Glenn Beck prays to. Mormonism has all kinds of damnable heresies.

      • Jodi

        I don’t agree with his religion. I just feel a day of prayer is needed.

        • Tim


  • mondobeyondo

    Did anyone else watch the Bernanke interview with Diane Sawyer on “ABC World News Tonight” this evening?

    It was not particularly revealing – basically the usual crap like “Gas prices are certainly challenging for the American consumer”, along with some video of Bernanke’s spacious Fed office, complete with old currency. Oh yeah, there was also a mini-biography about his early life and rise to financial power.

    Too bad there were no hard hitting questions. Not that you’d expect that from a network news anchor interviewing the Fed Head.

    What about that $15 trillion debt?
    Will there be a QE3 this year?
    What is the true condition of the U.S. economy?
    How many banks are still in financial trouble?

    What a shame, that there are no more Edward R. Murrows or Walter Cronkites. Uncle Walter would have had the… um, testicular fortitude to ask questions like that.

    • Jodi

      Shouldn’t Bernake be worried about Tungsten filled gold at the Fed? Diane Sawyer should have asked him about that. What happens then?

    • DB200

      Gas prices challenging the American consumer? I would like to pay the prices you do, 4$ a gallon is a bargain.

      And if this bargain hurts already, then you should be prepared to consider alternatives. Because within a few years it will not be such a bargain anymore.

  • Greg

    Yes, the proof that the stimulus didn’t work is that it hasn’t been paid for.

  • mondobeyondo

    Ah yes, here it is. Benny Boy’s “exclusive” interview with Miss Diane:

  • Paranoid

    Saved the banks; bankrupted the country

    • OldPhart

      And we remain in the Greatest Depression. History will show that the fall of the US empire pivoted on the actions of the Federal Reserve in 2008.

      As to Glenn Beck’s “praying and fasting”…we’re going to be doing that, in serious mode, for decades to come.

  • Night Watchman

    The same idiots who caused the crisis are attempting to fix it??? There is a recipe for complete disaster! It won’t be long now.

  • Sandy CPA

    Our debt was $10 trillion on Jan 1, 2009 and it is $15.5 trillion today. That is really all you need to know to confirm that these policies have been a disaster for our nation. The debt bubble is real and it will burst at some point, only this time when it does, the federal government will not be able to bailout itself.

    Prepare your personal finances accordingly with this very real possibility occurring without warning…..

  • T

    Bernakes a charlatan. He’s in denial of reality, the fed is behind everything bad and is the root cause of every meltdown and melt up. The system that exists, solely exists because of the fed.

    Denial is powerful and is the main reason people don’t seek help. In the feds case by denying their actions are even 1% to blame it means qe3 on steroids is coming. Bernake is addicted to printing and has been going through withdrawals, his next binge is going give America a bad hangover.

  • Matt

    I just wanted to tell you thank you for all of your articles on the federal reserve. Your articles, along with other sites I visit, have really educated me as to what the federal reserve is and how its policies are killing the value of our dollar. I try to educate others as to what the federal reserve is, but unfortunately many don’t seem to care. Imo, this apathy will be the downfall of America.

    • Michael


      Thank you for saying that. Hopefully we can get more Americans to realize that the Federal Reserve is at the very heart of our economic troubles.


  • Steve

    The bank executives got more bonus money and pension money. This was a good use of our tax dollars!

  • jolly

    Bend Buttbanger is the chairman of the federal returd. He is an out of control rectum full of stinky gas….!

  • mark

    I guess one way to look at our debt problem now is that it can’t be fixed. We had a chance before Bush and Obama and the Fed created this nightmare. At this point we might as well go deeper in debt and exchange electronic numbers with China and the Arabs for their oil and junk as the oil has value and our credits will be worthless. Thy will not be paid back as they can’t be for it is too large of a debt. As Michael has pointed out in the American Dream when Obama gets done we will be a toothless wonder of a country. If we were smart enough to keep our nukes at least we might live a lower standard of living in some sort of freedom when we default on the debt to China and others. But since Obama intends to remove our teeth, when the default happens the rest of the world will be able to walk right in and help themselve to whatever is left to take. It sounds like a Red Dawn future or worse. Read your history and see what took place in Germany after World War 1. France came in to take what was owed to them and they were screwed. Don’t ever think that it could not happen here.

  • Pat

    Why is Sweden like the star ship Enterprise? Sweden is almost a cashless society. Having lived there I speak from experience. If you want to know what is coming just look at Sweden or Denmark on the one hand or Africa on the other. Its called the carrot or the stick routine.

    I hate to pop your bubble but Sweden is not this wonderful society of large breasted blonds. That is a myth like so many other things. Sweden is a country whose people pay at least 50% income tax and more. It has a King and Queen. Swedes are known for their religious consumption of alcohol. (Don’t believe me? Denmark has laws against drunk Swedes in the main train station.)

    All the liquor stores are owned and operated by the government. Many Swedes are obese, depressed, take anti-depression medication and are incredibly boring.

    Read this article to see how Sweden is supposed to be so advance because they are going to a “cashless” system just like Denmark and Norway. In Denmark the card is called “Dankort”.

    I believe you can expect that one day soon the cashless society will be offered to you in America as a solution to the Fed. It is not a solution but a trap to give you less control over your own destiny and hand more control of your money and labor to your government.

    The “Free Medical System” they talk about is another trick. They use this system to force everyone to have to register where he lives just as they do in Scandinavia. Every Scandinavian must carry a medical card that has a number and tells everything about them. This is the way that the government can keep track of who is where and can decide who to help and who to eliminate. I know because I used to live in that system. I know how the system works.

    In Scandinavia, you will see no retarded kids, no autistic kids and few old people. The Scandinavians hide their mistakes from public view and prefer to talk about how they are the friendliest, happiest most kissing people on the planet. (Are we talking about the same people?).

    Breast Cancer is through the roof. Infertility is through the roof. Food is all GMO and despite plenty of information to the contrary, cell phones, they call mobile phones, are promoted as the end all be all of the society. They have more cell towers than pay phones.

    The idealistic vision as portrayed on “Star Trek” is nothing more than the United Nations masquerading as The Federation Of Planets. They use Sweden, Denmark and China as their show pieces of what can be accomplished by centralized government control. But what about “Freedom”, “Liberty”, “self-reliance” and “Independence”? What about “Individualism”? These concepts are non-existing in the 24th Century just as they are nonexistent in Scandinavia, China and were absent from the Soviet Union.

    Has anyone seen what the U.N. has done in Africa? Why is the U.N. there killing, sterilizing and trying to control the wealthiest place on Earth. Could it be because they want to control all natural resources such as water, air, copper, silver, gold, etc. could it? Mind you the U.N. has announced last week that they own all fresh water resources on the planet.

    We are not cows to be taxed and then butchered. We are humans made in the image of God and should not be herded like goats but left alone. Try telling that to Captain Jean Luc Pickard.

    No, they can not leave us alone. After all without us there would be no need for them. Sure Star Trek is a nice propaganda show about their wonderful new world. But the fact is we already know what they want to do. We do not like what we see. Is Ben Bernanke part of the old worn out Hegelian Dialectic. Problem, Reaction, Solution. Or is he just incredibly misinformed? Beam Me UP Scotty. This place is full of Swedes.

    To learn more about your financial world go to:

  • Emily

    When I was a little girl I wanted to grow up to be a princesses and live in fairy land but as I grew older I learned to live in the real world. The Bernank never grew up and the real world is what ever he wishes to believe. Poor Benji, he is in for a rude awaking.

  • VegasBob

    Bernanke is a shifty-eyed liar. He has made a public career out of talking out of both sides of his mouth at the same time and lying out of both sides too.

    Bernanke’s actions have nothing to do with economic recovery. It is all about printing trillion$ of counterfeit electronic dollars and funneling those funny money dollars to Wall Street.

    Wall Street simply uses Bernanke’s cheap counterfeit money to speculate in commodities. $5 gasoline, anyone?

    The game is rigged. It’s all a racket designed to allow Wall Street to destroy the remnants of the US middle class.

    In a sane society Bernanke would have been indicted, tried, convicted and sentenced a long time ago for an assortment of crimes, including perjury, fraud, counterfeiting and grand theft. And that’s just for starters.

    • JustanOguy

      You hit the nail on the head with the Wall St. buying up / speculating on commodities statement.

      I wonder how many people would be REALLY PISSED if they knew that the banksters (who are the recipients of all that printed up money) were using that cheap money to drive up the price of oil?

  • JustanOguy

    Great article… one thing you missed is how Bank of America has been transferring the massive risk in those CDO’s from it’s investing branch to it’s Banking unit…

    Which is insured by the FDIC… which is pretty much run by the Federal Reserve. Yeppers… when that bubble pops, the U.S. Taxpayer is going to get stuck with that bill.

    You should also do a write up on how the Banksters are now purchasing up Fannie Mae, Freddie Mac and FHA owned properties at “Deep Discounts” to turn into rentals… with financing provided by the Federal Reserve.

    No matter what…. Americans just can’t win with the current system.

  • Nexus789

    Should have done what they did in the 30’s. Closed down the banking system. Nationalised the whole lot, chucked out the thieves, eliminated the debt and set up a national public bank.

    The bankers are thieves, they destroy value, skim value off the rest of us and are carrying on regardless. Parasites all of them.

  • Ben is at it again

    The analogy someone in finance gave to me as to what the fed is really doing to our economy, country and the rest of the world economies, made it all very clear to me, so i want to share it with Michael and all of you.

    The Fed is acting similar to a player who owns a monopoly game invites others to play, and is acting as the banker.
    The owner of the game doles out the cash to all the other players at the start of the game, but he (the Fed) was the first to lose all his money and was technically out of the game but, then dips into the bank (since he owns the game) and helps himself to another stack of funny money and continues to play at the expense of all the other players until everyone else is wiped out and he wins the game.

    Except this is no “monopoly” game. This is really what the Fed is doing and creating hell on earth for all citizens around the world who are struggling and working hard just to pay their bills.

    This truly is a sin and will not go unpunished by our heavenly father.

  • Note from Idaho

    I sold some stocks a year or so ago. Once the Broker realized I had decided to end our relationship he was very candid and stated that
    “Derivatives” will drive the next collaspe and it will dwarf 2008….

    • justamom

      Thank you for posting this. He may be right.
      God have mercy on us all!

  • Syrin

    The GARYS of the world buy this ****>

    The phrase REALLY should be “Too big to bail out”.

  • Zedge Hero

    The notion that banks privatize profits and socialize losses dates at least to the 19th century, as in this 1834 quote of Andrew Jackson:

    I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the Bank. … You are a den of vipers and thieves.
    —Andrew Jackson, 1834, on closing the Second Bank of the United States;

    Isn’t it Fascism when you have private gains and public losses?

    Isn’t this the largest socialist government intervention in economic affairs since the formation of the Soviet Union and Communist China?

    Next thing your going to tell me is that the President can lock me up without trial and seize my neighbors garden. Wait a second…. 🙁
    *************! it’s too late. Welcome to 1984 people, the only cure is 1776.

  • James

    You know I have been watching this game for a long time and have come to the conclusion that we are going to have inflation but probably not a collapse.
    Why? Because in any crime you ask who does it benefit? In this case it is the banking oligarches internationally who are all in bed together and they have each others backs.
    When threatened, they have the politicians change laws to their liking even retroactively.When all nations are doing the same thing,as they are now doing,the trigger for a collapse is not there. But whole system collapse,probabley not because nobody would benefit. Regards, James

  • Donald Wilson

    You all have if you are lucky 12-18 months. Good luck and good hunting.

  • Thank God, I’m an old man with one foot in the grave and the other on a banana peel. I feel so sorry for those of you who are going to have to face the future in America. God help you-!!

  • Nick

    Well, his actions and the actions of Congress did manage to prop up the system. We didn’t get the immediate deflationary depression and cascading bank failures.

    Had they not undertaken the bailouts and QE programs, the system would have frozen up and collapsed in 2008-2009.

    But, you can’t just go on a massive debt binge for thirty plus years and then think you’re going to get out of it with massive money printing and go along your merry way. Unfortunately, we needed the deflationary depression and bank failures to clear off the books and purge the system.

    The unpayable debts and worthless paper assets (like mortgage backed securities) were simply transferred from private balance sheets to the Fed’s balance sheet and the federal government’s balance sheet. Freddie and Fannie haven’t been dealt with in any way (because there really is no way to fix them) and are bailed out on a continuous basis.

    What Bernanke and Congress did was akin to turning on the water pumps and sealing the watertight doors on Titanic. It bought some time, but will not save the ship.

    And, ultimately, their actions will make the final, uncontrollable collapse all the more worse.

    There wasn’t really anything else he could have done if he wanted to save his job and the status quo once the crisis came about, but it should never have been allowed to get to this point.

  • JAH666

    “So grab a bucket of popcorn and get ready. The next few years are going to be fascinating to watch.”

    I’m sick to death of this can-kicking and waiting! Do you really think this can drag on for a few more years? If it does take, say, two more years to finally see the bubbles burst in succession, we as the ordinary peons will have been bled dry by then. What trigger would it take to cause the first bubble to burst, leading to the cascade effect that would cause the final cataclysmic collapse of world finance?

    Any thoughts out there? Anyone…?

    • justamom

      JAH666, you have good posts. Thanks for your additions here.
      Michael wrote an article recently, and I looked through the archives to locate it—without success. He might chime in to let us know; it was about “triggers” for an economic collapse: fall of the derivatives market, War in the Middle East, Greek default, etc. I think he gave a list of about 10 things and then bloggers posted their own ideas. In light of your question here, you would enjoy reading through it; actually I think I would like to read through it again. It was a great article, and I am sorry I can’t find it.

  • SilverFox

    Averted? NO. Only postponed im afraid. I call on all of you (if you can) to only use open pollinated seeds and save much more then you need to share with family and friends. One day soon everyones property will be a garden.

    • TX4Life

      I’ll go one step further, contact your local county extension agent who should be able to provide you a list of open pollinated seed varieties that grow best in the area you live.

      • Orange Jean

        I would agree with that; plus also look for heirloom seed organizations.

        If you happen to live in the Southwest, you might want to check out Native Seed/Search out of Tuscon; they basically have been stocking up on seeds that were traditionally grown by various tribes in the Southwestern US and some parts of northern Mexico. I’ve grown chiles, beans, and even tobacco (I don’t smoke, but I was curious) from their seeds. You have to be a member to order, but costs are quite minimal. Their seed collections includes a lot of heirloom corn, beans, chiles, squash, melons (all open pollinated, that are well adapted to growing in dry land conditions) … but also some other things like flowers and tobacco.

        Good luck to you all!

        • Orange Jean

          I forgot to include the link:

          Mind you they are kind of a weird bunch of people (I’ve been to one of their events), more hippies and Indians than anything… but the seeds are GREAT!

  • Barn Cat

    Actually, Bernanke’s claims about having avoided a second depression by bailing out the big banks is probably true. He didn’t just bail out the banks. He bailed out everyone who held an account with the big banks. If he didn’t bail them out the FDIC would’ve had to bail them out. That would’ve meant that people, government agencies, nonprofits, and corporations would’ve had to wait a long time for their money and who knows how much economic damage would’ve occurred in the meantime.

    Having said that, the Fed CAUSED it all with its loose monetary policies. And everyone who committed fraud by bundling, rating, and selling worthless mortgages has avoided criminal prosecution. I suppose if they prosecuted everyone the Obama administration would be missing a lot of people.

  • Nancy

    Is this kind of like BO saying he saved millions of jobs (by spending $150M per job … )

    If it walks like a duck, as the saying goes …

  • mondobeyondo

    Keep kicking that can down the road, Ben. We’re starting to run out of highway. When that happens, then what? Kick the can off the cliff?

    If I win that Mega Millions jackpot on Friday (currently at $500 million), I’ll donate my winnings toward the national debt. My winnings would amount to approximately one-thirtieth of the total amount owed, which is now what, $15.6 trillion?

    No, I won’t. Who am I kidding? Heck, the first thing I’d do is buy some lobster and prime rib a the grocery store. The next thing, a Rolls Royce. Then another Rolls Royce, a Toyota to fool the neighbors, an apartment in Manhattan, a Mediterranean island, and a yacht so me and my girlfriend can sail there every Tuesday evening.

    And then I’d say to myself, “Wow! So this is how Paul McCartney lives!” Yeah. Gotta admire Macca – he no longer has to (literally!!) sing for his supper, like he had to when he and his friends* were poor teenagers in Liverpool.

    The tax hit would be severe though. Please don’t remind me about April 15th. I haven’t even STARTED my taxes yet. Ack!! Mr. Bernanke, the IRS is taking what money I have left. Is there any way you can help me? Don’t you have a heart? If you don’t, you need to ask the Wizard for one. It worked for the Tin Man. I mean, damn – even Dick Cheney has a new heart now. Hope it’s a more compassionate one than the one he had.

    Oops! Once again, going off topic. Focus, Mondo, focus, focusss!!

    * – John Lennon, George Harrison, Ringo Starr

    • Tim

      Would you give some to Gary? If you don’t, he may start saying “Tax Mondo and spread the wealth.” 🙂

  • mondobeyondo

    Today’s joke du jour:

    Don’t you just love it when you see products labeled “gluten free”?

    It makes your gluteus maximus into a gluteus minimus.


  • Ozmo

    Just my 2 cents,

    If the military is planning to reduce these weapons they more than likely have something more destructive. For me it is that simple. Give the illusion we are dearming and hit em with something even worse. We’ve pulled out the “unknown” weapons before and we will do this again. I worry, like others, about how to keep my family fed.

    News report puts ground beef at $5 per pound, If there is an incident with Iran $8 per gallon gas, $5 a gallon for milk.

    What people should realize is the CEO’s running those companies are the terrorists.

    Again just my 2 cents

  • El Pollo de Oro

    “There’s no doubt that we’re in a depression, and the globalists have been covering it up.” —Alex Jones

    “You can sum up what has killed capitalism in four words: too big to fail.” —Gerald Celente

    “Prices are going up. Unemployment is continuing to go up. And we have not had the necessary correction for the financial bubble created by our federal reserve system.”—Ron Paul

    “This isn’t capitalism. It’s fascism. Capisch? We have become slaves to the money changers. They’ll take you to war, they’ll rob you blind, they’ll spit on you and grind you up. They could care less because they’re money junkies. And junkies have no bounds or boundaries. They’ll screw their mother, and they’ll screw you too.”—Gerald Celente

    “Villains prosper while the rest are fired, foreclosed, and foreordained to suffer for the sins of their rulers.”—Justin Raimondo

    “Even a dog knows when he’s being kicked, and the middle class in America has been kicked over and over again.”—Alan Grayson

    “People rail on Obama and say, ‘Oh, he’s a socialist. He’s a Marxist.’ No, he’s not. Socialism is egalitarianism. He’s a fascist. This is a fascist country. Fascism has come to America. The merger of state and corporate power, by definition, is called fascism.”—Gerald Celente

    “This thing is collapsing. You better get ready for the big crash. It’s coming, and it’s going to wipe out a lot of people. There’s no salvaging this Ponzi scheme.”—Gerald Celente

    No, this Ponzi scheme called the American economy cannot be salvaged, contrary to what Ben Bernanke would have us believe. The Banana Republic of America (formerly the USA) is in deep trouble, and things are only going to get worse—much worse, in fact. These are dark and perilous times for the BRA.

  • Jeff

    Michael, do you have some biblical references that support prepping? I know there is a proverb that says it’s wise to have storehouses of food, but I forget exactly which one! thanks!

    • Michael


      Ray Gano does a great job of covering those scriptures in the book “Survive The Coming Storm”. I am reading it right now and I would recommend it to everyone.

      When God warned Noah that a flood was coming, Noah didn’t just sit there and wait for God to do all the work. He built a boat as he was instructed to do so that he would not drown with the rest of them.


      • Jeff

        found it:

        “The wise store up choice food and olive oil,
        but fools gulp theirs down.” Proverbs 21:20

    • Orange Jean

      I’m not a biblical scholar, but I remember there being some kind of warning that 7 fat years (prosperity) would be followed by 7 lean years … and that people ought to prepare for that.

      In may be in the Old Testament (God talking to Moses in a dream?), rather than the New Testament.

      • Jeff

        thanks, I will look for that too.

      • Jeff

        Got it – it’s from Genesis 41. It was pharaoh’s dream that Joseph interpreted about 7 years of abundance followed by 7 lean years. Joseph advised pharaoh to store crops during the good years. In that way, the Egyptian empire survived the 7 year famine.

  • Buzzulepuff

    Whats the probability that these banks mentioned can last this year without a bailout or bankruptcy.

    Probably 0.0%

  • Annette

    Michael, Michael, Michael. I had to re-read this tonight. We know that the banking system has to be reduced to very few banks in control. That way the anti-christ has what he needs already in place, to institute his mark. This is all a set-up by satan. There is no way that a bank will be allowed to fail, if it is part of his plan. I sometimes think he is alive now and biding his time. We, as Christians, have a common belief that things don’t get better. We see things in scripture fulfilling themselves in front of us. I am so glad that I don’t have to live in this kind of world. I can die, (when God decides), and go be with Him. There is nothing in this world that is more awesome than He is. And I would rather be here when he is ruling, and I know that He will be ruling from Jerusalem for 1,000 years. There is no point in trying to save this world thru prepping. There is no saving of it. Put your affection on Christ and take the best care of yourself while He has you living here. Be prudent, be wise. But don’t live in fear of what is happening or going to happen. It is all laid out for us in the scriptures. There are many different opinions on the Rapture. So, just prepare your life for a risky existence. But, put your mind and heart on Christ. He will take care of us, just like he allowed the Jews in Goshen to have no plagues, while the Egyptians suffered that judgement. Jesus will and is taking care of us. Instead of trying to figure out when things are going to fall apart, we should be getting to know the One who holds it all together. Let the world fall apart. You can’t hold it back. But get to know Jesus. He is the answer to all our problems!

    • Michael


      I am not living in fear.

      By revealing what is really going on and helping to wake them up, I am ultimately pointing them to the real solution.


  • mondobeyondo

    How can a rap artist who earns millions of dollars a year, call himself “50 Cent”?

    I can’t figure it out, either.

    On a serious note: The next depression is upon us. I realize Bernanke is a scholar of the Great Depression (I’ve studied it as well, although not nearly at the university level). My grandparents didn’t study it, they lived it.

    My advice: Learn every possible way to use a potato. You’re going to need it. “Great Depression Cooking” is a good start.

    • mondobeyondo

      Yes, vodka too. You are REALLY going to need that.
      Hee hee….!!

      (Vodka is made from potatoes, for those who don’t know)

  • Mike



    RON PAUL 2012! WAKE UP!!!!!!!!!!



  • These financial scandals, and the ‘Fed’ won’t be going away anytime soon, UNLESS YOU GET UP OFF YOUR FAT, LAZY A**ES, and DO SOMETHING!

    HR 459 passed by an overwhelming majority in the House, by a vote of 327-98!
    Now, this bill (S.202) needs a vote in the Senate!



    End the Fed! Whether Congress Wants Us To or Not!

Finca Bayano

Panama Relocation Tours



Facebook Twitter More...