11 Examples Of How Insanely Corrupt The U.S. Financial System Has Become

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If you ask most Americans, they will agree that the financial system is corrupt.  It is generally assumed that just like most politicians, most big bankers are corrupt by nature.  But the truth is that the vast majority of Americans have no idea just how corrupt the U.S. financial system has become.  The reality is that the American Dream is literally being stolen from millions of Americans right out from under their noses and they don’t even realize it.  The corruption on Wall Street has become so deep and so vast that it is hard to even find the words to describe it.  The level of greed being displayed by many Wall Street firms would make Gordon Gecko blush.  It seems that the major financial players will try just about anything these days – as long as they think they can get away with it.  But in the process they are contributing to the destruction of the greatest economic machine that the planet has ever seen.   


The following are 11 examples of just how insanely corrupt the U.S. financial system has become….

#1) An industry insider “whistle blower” has come forward with “smoking gun” evidence that major financial institutions have been openly and blatantly manipulating the price of gold and silver.  But so far those who are supposed to be regulating these firms have been sitting back and doing nothing about it.

#2) It has also now come out that most “gold” that is traded on the markets is not backed by the actual metal itself.  For years, most people have assumed that the London Bullion Market Association, the world’s largest gold market, had actual gold to back up the massive “gold deposits” at the major LBMA banks.  But that is not the truth at all.  Industry insiders are now revealing that LBMA banks actually have approximately a hundred times more gold deposits than actual gold bullion.  When most people think they are buying gold what they are actually buying is pieces of paper that say that they own gold.  Meanwhile they are being charged huge storage fees to store the gold.

#3) The guy who helped bring down AIG is going to get off scott-free and will be able to keep the millions in profits that he made in the process.  It must be nice to be him.

#4) Goldman Sachs is denying that it “bet against its clients” when it changed its position in the housing market in 2007.  But the reality is that is exactly when they did and a lot of things that are even worse than that.  The corruption at Goldman Sachs is very deep and very entrenched, but they will never be fully investigated because they have such close ties to the U.S. government.

#5) It is being alleged that the biggest banks in the United States are ripping off American cities with the same predatory deals that brought down the financial system of Greece.  Of course the big banks will rip off just about anyone these days if they think they can get away with it.

#6) Several major Wall Street banks are being accused of using accounting techniques similar to those utilized by Lehman Brothers in its final days to mask the size of their balance sheets at the end of reporting periods.

#7) The Federal Reserve bought up the vast majority of U.S. government debt in 2009.  Many analysts claim that this is the same as “printing money out of thin air”, while others are openly calling it a Ponzi scheme.

#8) It turns out that the Federal Reserve holds credit-default swaps on the debt of Florida schools, and on debt owed by the states of California and Nevada. So the Federal Reserve would profit if one of those states defaulted on its debt.  Talk about a conflict of interest.

#9) Executives at many of the firms that received large amounts of money during the Wall Street bailouts are being lavished with record bonuses as millions of other average Americans are suffering intensely.  Even the CEOs of bailed-out regional banks are getting big raises.

#10) We may not know much about what is going on inside some of these banks, but they sure do know a lot about us.  For example, it has been revealed that the data mining operations of the major credit card companies are becoming so sophisticated that they can actually predict how likely you are to get a divorce.

#11) But the biggest financial fraud of all is being committed against the American people.  The exploding U.S. national debt threatens to destroy the financial future of literally generations of Americans.  It is obscenely immoral to saddle our children and our grandchildren with the biggest mountain of debt in the history of the world.  If they get the chance, future generations of Americans will look back and curse this generation for what we have done to them.

  • Greg

    America was founded for a purpose – to bring in the Antichrist – and our purpose is nearly fulfilled. While there has been goodness and many good people in this nation we are the most evil nation that has ever existed and we are spoken of in Revelation 18. The corruption that is now uncontrolled is being unleashed because the people have cast off the moral goodness that was formerly the basis of our culture and the full judgment of God is coming down upon our heads. We are living the temporary facade that prosperity still exists because the plan is for Americans to have hope until the destruction is unleashed, otherwise the people would potentially rise up and hinder the plan. Our doom is near.

  • YooDman

    As long as FASB continues to be a pawn for TBTF and sound accounting principles are ‘delayed’, nothing will change … and the ‘stock market’ will continue to rise based purely on interest-rate arb … TBTF borrowing at Fed Funds (0% – .25%), borrowing Yen at 0.1%, borrowing Swiss Francs at 0.25%, …. and using those proceeds to daytrade S&P futures or whatever else.

    And that’s how we got into this mess in the first place …. TOO MUCH BORROWING, TOO MUCH LEVERAGE. REMEMBER, EVERYTHING BORROWED MUST ULTIMATELY BE REPAID (ie. UNWIND). Remember the unwind of the leveraged Yen carry trade? Or have we become so complacent that we already forgot?

    And how is ‘The System’ ‘dealing’ with the housing / mortgage mess? … Taxpayer funded bailouts of large banks while banking execs get fat bonuses and record salary compensation to compensate for ‘reduced’ bonuses … taxpayer funded bailouts of reckless, fraudulent, or uneducated / inept ‘homeowners’ / lenders through modifications which now include principal reduction … delinquent ‘homeowners’ now turned squatter, not making a mortgage payment for well over a year, just so the banks don’t have to ‘recognize’ the loss on their balance sheet … strategic defaults on commercial real estate (Morgan Stanley walking away from 5 large properties in the San Fran area) … ‘DO AS I SAY, NOT AS I DO’ ….


    Trust in the system has evaporated. Trust is THE KEY ingredient necessary for economies and societies to grow … let alone a fiat monetary system to function (which is now being revealed as a complete joke).


    Penalties? More optics in that category What are the penalties for failure to comply with ‘rule of law’? A $10M fine? $50M fine? Chump change for these TBTF guys. TBTF will just have the shareholders pay for the fines by issuing more stock … and then give themselves a bonus. Risk to reward for these TBTF guys still tilts towards recklessness, coercion, and fraud. Oh yeah, and shareholder dilution will also need to factor in excessive attorney fees (to defend corrupt accounting practices) and political contributions. Did I miss anything?

    Bottom line. The underlying disease is debt deflation. The usually prescribed ‘medicine’ of ultra-cheap monetary and liquidity inflation will NOT work this time. REMEMBER, it takes two parties to CREATE CREDIT in our system … someone willing/able to provide credit (The Fed … lender of last and only resort now), and someone willing/able to take/accept the credit/loan. Last I checked, credit continues to shrink across all segments except for government. Until this country addresses the massive underlying structural cancer (too much debt to GDP, crony capitalism, socializing losses while extracting profits for the oligarchy) in any meaningful manner, we will not have a meaningful recovery.


    The capital markets have morphed into such an unrecognizable beast over the last several decades … what a sham … I mean shame.


    But don’t worry, the US taxpayer will bailout everyone …. UNLIMITED?!


    As Shahien Nasiripour notes:

    Taxpayers have pumped more than $125 billion into the failed firms — and on the hook for many more after the administration promised an unlimited source of funds just before Christmas to backstop their growing losses.


    I rest my case. More looting to come at the expense of US Taxpayers.

    Corzine Plans to Make MF Global Into Treasuries Primary Dealer


  • Patriot

    The Commanders of the United States Military need to pay attention to what is happening here and learn to identify the “Enemy Domestic” that threatens to weaken, then implode the American economy on a scale that threatens the viability of the Constitution itself. We are witnessing the last stages of a peaceful destruction of America – its workforce, currency, industrial base – in short, all the institutions that the US military would incapacitate using bombs and bullets, these bankers have sabotaged and destroyed. No doubt a weakened America will be a ripe target for China, Russia, India and any other country with liquidity (real money) to take over at pennies on the dollar.
    Pass these ten points above to anyone you know in the military, and ask them to consider what must be done should we face a sudden economic hardship. Semper Fi.

  • ferrofluid

    The destruction of the American infrastructure and institutions, its effectively a hostile takeover and act of war on the US by outside forces.

  • The financial system, having been deregulated, spun out of control and wrecked the US: manufacturing migrated off shore, services (like journalism) rotted, jobs disappeared, and corporate media misdirected angry people while being sure they are armed. Corruption is widespread.

    Try this link to get some idea of the scope of the problem:

    The Grim Truth (4/8/2010)

  • Stephen

    Well, if America was founded to bring the antichrist he sure is one slow SOB.

  • Dmc

    The US has exported slavery to china. Everybody there can now stop working and print the money they need to import chinees goods. The only thing they need to do is press their war propaganda in the face of the rest of the world and make shure that the whole world keeps using the Dollar as save haven, even though its completely worthless.