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March 16, 2009 - Freedomain Radio - Stefan Molyneux
20:45
1303 True News 23: Protecting Iraqis, and Depositors -- and Bernie Madoff?

Three big state lies - Iraq, Banks and Bernie Madoff.

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Hi everybody, it's DeFan Molyneux from Free Domain Radio.
This is March the 12th, 2009, and I recently came back from giving the closing keynote address at the 2009 Free State Project Liberty Forum to a couple of hundred highly engaged, highly involved, and most brilliant audience members.
I did a short speech at the beginning and then we just did a back and forth It was about the against me argument, which I've used, which is my methodology for approaching political discussions and winning them in two minutes or less with any statist on the block.
So I hope that you will have a listen to that.
I'll post a link off to the left-right here, your left, my right, some kind of left and right, or you can go to tinyurl.com forward slash nhspeech to download a copy and the video, I hope, will be done Soon, but it was a great deal of fun.
Thank you so much to the organizers of the event for having me down to do the speech, and I really enjoyed it, and I hope to do it again soon, somewhere, somehow, sometime.
So, just a couple of random news items here.
This is True News 22 or 23, I think.
We will start with Barack Obama, who is Talking about withdrawing troops from Iraq because, as you well know, very shortly after the Second World War, America also withdrew its troops from Okinawa and Japan.
No, wait. No, they're still there.
Coming up for 70 years?
60 plus years later.
This is from the Toronto Sun, March 1, 2009.
US influence in Iraq far from over.
Barack Obama won the votes of many Americans by promising to swiftly end the Iraq war and bring U.S. troops home.
He denounced George Bush's invasion of Iraq as a violation of international law.
Nothing, of course, that we'd ever want to prosecute because we save the prosecution for people with odd bits of vegetation in their pocket, possibly in little baggies.
So continues the article.
Will the U.S. troops leave Iraq?
It is the $10 million, $10 trillion question.
Will those responsible for this trumped-up war face justice?
No on both counts.
President Obama says US combat troops will leave Iraq by August 2010.
However, the US military occupation will not end.
What we are seeing is a public relations shell game.
This is by Eric Margolis. The US has 142,000 soldiers and nearly 100,000 mercenaries occupying Iraq.
Obama's plan calls for withdrawing the larger portion of the US garrison, but leaving 50,000 to 60,000 troops In Iraq, until the end of time or the collapse of the currency, I suspect the latter will occur a tad sooner.
To get around his promise to withdraw all, quote, combat troops, the President and his advisors are rebranding the stay-behind garrison as training troops, protection for American interests, and counter-terrorism forces, because in the government, language is reality.
Doesn't work so well with physics and engineering or computer science, but in the government, which is the mad land of moo-cow manipulation, it is, words are reality.
At a time when the U.S. is bankrupt and faces a $1.75 trillion deficit, the perpetuant's gargantuan $664 billion budget, 50% of total global military spending, Will grow in 2009 and 2010 by another $200 billion to pay for the occupation of Iraq and Obama's expanded war in Afghanistan.
Throw in another $40 to $50 billion for the CIA and other intelligence agencies.
Obama insists the U.S. will withdraw from Iraq, but his words are belied by the Pentagon, which continues to expand bases in Iraq, including Balad and al-Assad, with 44-meter runways for heavy bombers and transports.
The US will also retain major bases in neighboring Kuwait, Bahrain, Qatar, Oman and Diego Garcia.
U.S. troop levels will remain high during Iraq's December elections to ensure security, in other words, the correct votes, according to the Pentagon.
Iraq parties, notably Ba'ath opposing the U.S. occupation, are banned from running.
Many Iraqis believe the U.S. will never leave their nation.
In short, contrary to Alabama's high-blown rhetoric about pulling out of Iraq, Washington clearly intends it will remain a U.S. military, political, and economic protectorate.
Yeah. So, it's a standard model of the British Empire used to exploit oil, install a figurehead ruler, keep him in power using a native army, read today's Iraqis army and police.
RAF units based in Iraq, read US air bases, bomb any rebellious area, smaller British ground units based in non-urban areas are uncalled, put down attempted coups against the king, the US plans for Iraq are identical.
Obama made it clear that officials responsible for the Iraq war, torture, kidnapping, or assassination will not be prosecuted.
The theft of over $50 billion in US reconstruction funds sent to Iraq is being hushed up because, of course, these are the people you want to protect.
Your $10,000 in the bank is the people who lost $50 billion in a war zone that they started illegally.
By contrast, Britons are demanding release of cabinet documents leading to war that are likely to expose Tony Blair's lies and illegalities.
There is no corresponding call for justice in the United States.
Not that it's going to happen in England either, for real.
Obama tells the public, let bygones be bygones.
Unless, of course, it's Osama bin Laden.
Between 600,000 and 1 million Iraqis died as a result of President George Bush's aggression.
It cost nearly a trillion dollars and some 4,500 US dead.
Actually, it's more than that. That's just combat deaths.
4 million Iraqis remain refugees.
The US holds over 20,000 Iraqi political prisoners.
Iraq's population is about 30 million.
So you can multiply these figures by 10 or more to get the equivalent U.S. population.
So between 6 and 10 million U.S. citizens died.
That would be the equivalent.
40 million American citizens had to flee the country.
And almost a quarter million U.S. soldiers were held in concentration camps by Iraqis.
This would be the equivalent.
So it's just a note, right?
Forget the words. Everything the government says is the complete opposite of what it's actually doing.
So just remember that.
They lie for a living and the living is hanging off your throat like a bunch of parasitical vile injection leeches.
Next, we have the Federal Deposit Insurance Corporation.
This was set up in the wake of the banking scandals, I believe, under the New Deal or in the 60s.
It's either the 30s or the 60s that monstrous statist agencies come in.
So, it's either after the screw-up of the economy that started from the Federal Reserve in 1913 or after All the socialist intellectuals fled Europe in the war and then ended up teaching at American universities and then sort of half a generation later you started to get all the socialism coming in, as is inevitably the case from socialist education in the 60s.
So the FDIC is supposed to insure deposits up to $250,000, and that is just to keep the masses vaguely with the belief that something is being done to protect their money, which of course is complete nonsense.
So the federal agency that insures bank deposits, this is from the Boston Globe, Which is asking for emergency powers to borrow up to $500 billion to take over failed banks is facing a potential major shortfall.
Why? Well, in part because it collected no insurance premiums from most banks from 1996 to 2006.
Now, imagine that you are a private insurance company promising to insure massive, you know, trillions and trillions of dollars and you never collected any insurance premiums.
Would you think that maybe this would be a problem?
Well, of course, if this happened and there was a problem with that insurance company, the cry would be for more regulation, as it always is.
But, of course, this is the agency that would be regulating them, which is a complete clusterfrag of almost biblical proportions and about as rational.
The FDIC tried for years to get congressional authority to collect the premiums in case of a looming crisis, but Congress believed that the fund was so well capitalized and that bank failures were so infrequent that there was no need to collect the premiums for a decade.
Congress believed nothing of the kind what nonsense people say.
It's just free money, you know, like...
Like Social Security, it's just free money.
It's just a massive IOU cabinet where they get to prey on the young for the sake of the richest, oldest planet has ever seen.
With 25 banks having failed last year, 17 so far this year, and many more expected in the coming months, the FDIC has proposed large new premiums for banks at the very time when many can least afford to pay.
Because when the government screws up, of course, they get to jack up interest rates.
You know, like if your phone keeps getting cut off and the service is not available, they get to triple or quadruple your phone.
Oh, no, wait, that's the free market, more or less.
That's a little different. The agency collected $3 billion in the fees last year and has proposed collecting up to $27 billion this year, prompting an outcry from some banks that say it will force them to raise consumer fees and curtail lending.
You see, this is all about how you get the economic recovery underway as you raise consumer fees and curtail lending from the banks.
To possibly reduce the fee increase, the FDIC has asked Congress for the temporary authority to borrow as much as $500 billion from the US Treasury, up from the current $30 billion limit, in case the number of bank failures increases even more dramatically.
Now, when they say borrow $500 billion from the US Treasury, It's a completely meaningless statement.
I've decided not to do part three of the death of concept, so I think I made my point.
Borrow $500 billion from the U.S. Treasury is complete madness.
You know, print money and steal and economically rape the unborn.
That's, of course, a little tougher sell than, hey, let's borrow this money.
But, of course, it's complete nonsense.
There is no money to borrow.
They will simply print the money, thus raising inflation.
So every bank that they save...
We'll simply have all of the value of its deposits reduced by even more than the amount of money they're borrowing because of this escalation like this seven to nine times multiple on everything that goes into a bank.
You can watch Zeitgeist Addendum for more on that.
And so there is no money.
They'll just print the money and the currency will collapse and maybe we'll go back to gold or something sensible and there is no money to borrow.
This is all just nonsense. So, as of December 31st of 2008, the FDIC had $18.9 billion in its insurance fund, down from $52.4 billion a year earlier.
In addition to $22 billion, it is set aside for pending bank failures.
The agency has projected it will need $65 billion to take over failed banks through 2013.
Complete nonsense, right?
They didn't see this coming. This is the amazing thing.
The government that apparently is supposed to overrun and be such a brain-squid octagon genius that it can manage all of this incredibly complex stuff did not see any of this collapse coming, but now they're doing projections through 2013, which is completely mad.
They have no idea.
No idea whatsoever, just so you understand that.
Congress mandates the insurance fund must stay between 1.15% and 1.5% of all insured deposits.
Now, for a private bank, if you're doing over, I think, 45 million, or you have over 45 million in deposits, you need at least 10%.
In China, it's 17.5%.
And I don't know what it is for private insurance companies, but of course, the regulations for the government are completely much more lax than anything in the private sector, which is true for environmental regulations as well, and they don't even meet those anyway.
So, the people you're hoping to regulate the financial industry as a whole are completely mad, drunken frat boys driving way too fast, and you're asking them to be traffic cops.
It's just funny and tragic at the same time.
The reserve ratio on December 31st was, in fact, 0.4%, down from 1.22% at the end of 2007.
FDIC has increased premiums to increase the reserve ratio, blah, blah, blah.
So the fund that's supposed to protect everyone is only required to maintain 1.15 to 1.5% of the total amount covered, which would never be allowed in the free market in the private sector.
And, of course, it's not even meeting that anyway.
There's no way it can cover everyone.
This is a listener who posted this.
The real mission of the FDIC is propaganda to con the people into thinking that they are safe, right?
Because when you turn something over to the government, what happens is this massive illusion wall comes down.
It's like one of those things closing in Star Wars.
This massive illusion wall comes down and people think that the problem is taken care of.
Oh, the children are being educated, the old are secure, the poor have medical care.
There's this massive... Blood wall that comes down and propaganda wall that comes down to hide the guns by which people are hoping and always failing to solve social problems.
But it has nothing to do with solving the problem.
It is merely there to prey upon you.
You know, what is it that you feel guilty about?
What is it you really care about morally?
Okay, we'll do that and we'll take your money by force.
They never do that. They keep taking more and more of your money.
But yeah, it's just a massive con job.
How do we solve the problem of unstable banking?
I don't know. Let's point guns at people, take money and have them spend like drunken sailors.
And of course it doesn't. Solve the problem, but it just creates the illusion the problem is being solved, which actually and actively prevents free market solutions from coming into being.
FDIC wants to increase fees by 900% at a time that banks can least afford it.
Right, so the equivalent would be, I'm a bank and I loan you a million dollars, and then I don't charge you any interest payments whatsoever for 10 years until you declare bankruptcy, and then I want to charge you nine million dollars.
I mean, it's completely insane, but of course, this is how the governments don't work.
The FDIC is saying they will need $65 billion to take over the failed banks through 2013, but they're asking for $500 billion.
I think they just tipped their hand, revealing that the $65 billion number is completely bogus.
The FDIC spent $33.5 billion saving failed banks and is only projecting $65 billion for the next five years?
Come on, it's complete madness.
The last thing I'll talk about very briefly here is our good friend, hands-in-your-pocket Bernie Madoff.
Now, there's a 60 minutes that you can see, I think it's from last week or maybe the week before, which was talking about a guy who was not a genius mathematician who figured out that Bernie Madoff's returns would be the equivalent of a baseball player batting 980, which is completely impossible.
It takes about three minutes to figure out that his returns...
Which have been going on for, what, 15, 20 years, are completely impossible to sustain in any market scenario.
He wrote the SEC and the SEC did nothing and, of course, put all of these glowing reports out about how wonderful Bernie Madoff's fund is, thus reassuring the public that everything was on the up-and-up and, of course, it was a mad-ass Ponzi scheme.
And now, of course, it is revealed that Bernie Madoff was running this Ponzi scheme and I'm sure, paying off.
Well, the fund managers were all being paid off, of course, to invest through $100 million fees per year.
And the SEC officials are all paid off, right?
I mean, because they don't succeed or fail based upon their credibility, as you would in the free market.
They succeed because they have guns which eliminate competition and force payment for their services, so they have no interest.
In succeeding, so they're just to rape the consumer and pillage as many bribes out of their victims as they can, and it's really just a racket.
And Bernie Madoff simply profits from the racket.
The racket is run by the state, as always.
And now it has been revealed, you see, that Bernie Madoff was a Ponzi scheme rat bastard who was stealing from the old and apparently nine-tenths of the Jews in Los Angeles.
And now it's coming out.
And this is, again, I don't know whether this is coincidence or not.
I doubt it because the people who run the system are not dumb at all.
But why would it be coming out now of all times?
This scam has been running for more than a decade as far as I know.
Why would it be coming out now?
Well, because of course it gives the talking head pundit wannabes the capacity to talk about something other than the massive cluster frack of the economy wrecked by the statist system.
So, I mean, if I were stone evil and in the government and had any say, What I would do is I would say, well, first of all, let's not prosecute this guy because we're getting fantastic kickbacks and the fund managers are giving us fantastic kickbacks and the more that this bubble is occurring, the more the public pundits are going to tell the gullible moo cow sheep investors to continue investing because the moment you say don't invest, the whole scheme starts to collapse and nobody wants that because it's a continual source of profit.
So I would say, well, let's not prosecute this guy because we'll get all the kickbacks and so on.
And then, when the system that we have put into place to pillage the sheeple begins to come apart at the seams and start to do that slow Death Star explosion, what we're going to do, you see, is we're going to start pumping out charges against Bertie Madoff so that people will then focus on that thing,
right? It's the basic art of magic and pickpocketing and statism, which is to misdirect the attention of the audience to that, which is completely irrelevant, to avoid That which is more relevant, the magic trick of your vanishing money and livelihood.
So the Bernie Madoff thing is it gives people something to talk about instead of the fact that statism is a completely evil clusterfrak of a nightmare system that preys upon the most helpless.
And instead they can talk about Bernie Madoff and of course they will talk about how nasty Bernie Madoff is, not the fact That the people we're expecting to fix our economic crisis were the same ones responsible for policing this fraudacious nut job for more than a decade and not only did not prosecute him despite repeated calls from interested parties to do so, but did not even raise any suspicions and in fact certified him as viable and safe and trustworthy.
These are the same people.
And just very, very briefly, I just wanted to sort of mention that there's this weird illusion that's out there that And it's like Bernanke and Paulson and Obama and all these people are somehow desperately concerned with your savings, with your investments.
They're just racking their heads night and day to save your money, to make you secure and help you keep your job and all these kinds of things.
I don't know if it's just people who never had any good parents who are just waiting for someone to take a real interest.
I don't know what exactly causes it.
But it's completely mad.
And I just want you to sort of understand that Barack Obama is about as interested in saving and protecting your investments as you are in saving and protecting his investments.
It is kind of a mutual thing.
There aren't these magic people floating out there who just are completely obsessed with serving and protecting you.
They don't exist. Anymore than you are completely obsessed with serving and protecting some other random person that you may have seen on the street.
It's not the way people work.
You know, we look to our own interests and the interests of those we love and, you know, we're happy to be charitable in general, but nobody obsesses.
Nobody is obsessing about protecting your income, protecting your job, protecting your security, protecting your investment, protecting your bank accounts.
It's complete nonsense and the illusion.
That there are these people out there who just rub their heads together night and day trying to figure out how to make our lives better is what exactly gives them the power and the violence, though hidden, to make our lives infinitely worse.
So I hope that you can do what you can to let go of that illusion that there are all these people out there worrying about how well you're doing and instead focus on the fact that they...
Use your neediness and your dependence upon these godlike figures in order to continue to pick your pocket and fleece your children.
So I hope that makes some sense.
Thank you so much for watching.
Remember to go to tinyurl.com forward slash nhspeech to have a listen to the speech that I gave in New Hampshire on March the 8th, 2009.
And I will talk to you soon.
Thank you so much for watching as always.
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