The answer to this question is relatively straight-forward: the government borrows this money from the Federal Reserve, a cartel of quasi-private banks. Where does the Federal Reserve get the money? Simple: it prints it. The Fed prints the money and it then "lends" this new money to the gov at interest. The gov then takes this new money and gives it to companies like AIG. AIG then distributes this money to its "counter-parties." Note how former AIG CEO Bernstein and other system apologists are careful to use the term "counter-parties" rather than the term "banks." The counter-parties are basically banks, banks all over the world, as well as huge US banks, like Citi and BofA. So AIG has been acting like a huge international funnel to route TARP money, created by the Fed cartel, via the gov and taxpayer, into the coffers of Fed-member banks.
But here is the key thing to remember: all of this new money creates interest payments for these banks sooner or later. Thus, this "financial crises" is actually generating interest payments for the banks while you the tax payer are charged with paying for that interest as part of the national debt.
The only reason citizens are outraged about the AIG bonuses is because they can actually understand THESE transactions.
Given what the Fed-gov partnership, the banks and media are doing, it's clear, if the citizens understood what's at the heart of the situation, they would be even more outraged.
So, why is there no money? How come we are in a recession? How come all the stocks are falling? The answer to these questions becomes clear when one understands how money is created, a subject the mainstream media is covering up desperately.
In today's fiat-currency world, all money is created as a function of debt. This means, that in order for a dollar (a Federal Reserve Note or FRN) to come into existence, that FRN must be LENT into the system. Someone has to borrow the newly created FRNs the Fed has printed up. Thus, when new money is created, it is LENT into the system. Each FRN thus represents a unit of PRINCIPLE upon which interest is owed. But if each FRN is a unit of principle upon which interest is owed, where do the FRNs to pay the interest come from? They must be printed as well and then lent into the system as well. But the act of doing this, printing more FRNs to service debt, creates yet more debt to be serviced. Therefore, the entire US financial system is a ponzi scheme. A ponzi scheme is defined as: a scheme to satisfy former creditors/investors with later lenders/investors. Debt on earlier FRNs created must be serviced by creating yet more interest-precipitating FRNs.
The entire world financial system is a multi-trillion dollar ponzi.
WHY GLOBALIZATION IS FOOLISH:
Since irresponsible people from Nixon to Clinton have pushed for globalization -- a system that fuels itself with a multi-trillion dollar ponzi -- globalization is foolish. It is foolish on at least three counts:
1. Funded by a ponzi scheme;
2. Failure to provide redundancy;
3. Violation of the First law of Thermodynamics (discussed elsewhere).
We have allowed our nation's rulers to place all of our eggs in one basket and we have allowed them to finance this system using unsound monetary policies.
Ross Perot warned us of this when he said NAFTA was dangerous. But the media, invalidated him. Now Ron Paul warns us of this as well as other things. The media still invalidates this and continues to obfuscate the real issue with a bunch of endless trivia and misdirectors.
JEFFERSON'S WARNING:
Why are the stocks of so many corporations taking plunges? Because many of them are over-leveraged, meaning simply: they have too much debt. Why do they have too much debt? Jefferson answered this very question over a hundred years ago. To wit:
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
