The Sovereign Society Wednesday, September 9, 2009 Bankster Economics 101 Politicians, Bankers Show their True Colors When Challenged By Bloombergâ¦ âGive this job to Clemenza. I want reliable people, people who aren't going to be carried away. I mean, we're not murderers, in spite of what this undertaker thinks...â - Vito Corleone Dear A-Letter Reader, For decades, âorganized crime,â âla cosa nostra,â âthe mafiaâ whatever you call it has been romanticized in media and pursued and prosecuted by law enforcement. And for what? Their business model. Think about it. That's all it really wasâ¦an extremely aggressive business model. First they'd give you access to your most lascivious desires. Then, being the full service type business they were, they'd lend you the money to indulge yourself. And in exchange for this service, they expected you to pay them back and shut the hell up. At times their terms could be a bit draconian. If you didn't pay, or worse challenged their right to collectâ¦well, letâs just say âthingsâ could happen... Things like fire, bombs, bullets, "significant harms that could befall not only private companies, but the economy as a whole..." ...significant harms...? Wait a minute! That's not from the gangster playbook! Oh right. That was from an appeal by the Fed sent to Judge Loretta Preska of the U.S. District Court in Manhattan. The judge who ruled in favor of Bloomberg in their Freedom of Information Act suit. The one who ordered the Fed to release the names of the banks who got a piece of taxpayer money in the 50-something lending programs the Fed offered. âIt'd be a real shame if something "happened" to these nice green shoots you got sproutin' up...â Let's be frank here. Since 1913, the Fed, and whatever âDonâ has occupied the seat at the head of the table of our central bank (originally dubbed the âFederal Reserveâ due to the stigma attached to the term âcentral bankâ), has employed the mafia business plan. Theyâve done it for many years, and quite successfully. They'd offer you access to money to buy things you deeply desired but otherwise couldn't afford. And they expected you to pay them back and shut the hell up. But as time went on, I guess success makes fools of us all. Because it got to the point where times were so good and everyone was in so deep that the unthinkable happened. NOBODY could pay anybody back. (At least loan sharks on the corner would know when to tell you to âtake a walk.â) So in a way, Alan Greenspan and Ben Bernanke â with all their formal degrees and letters behind their names â ultimately weren't quite as smart as Carlo Gambino or Tony Accardo. But a good business plan always has recourse for just such problems. A âbackup planâ if you will. And so the treasury on behalf of the Fed, implemented yet another mafia business practice. In financial circles its called "raising capital." In less reputable ones it's called âcollectin'â In legal circles it's called âextortion.â The way this process typically works is quite simple. It's sold as sort of an âinsurance policyâ against bad things happening to you or your place of business. You pay me, and nothin' happens to you. Just like.... Hank Paulson asking for $700 billion from Congress just a year ago. âYou gotta pony up dis taxpayer money Congressman, or bad tings is gonna happen to yer stock markets and such...â (FYI, Iâm paraphrasing there. I don't have his exact testimony in front of me.) And so they waved the threat of âsystemic riskâ at the American taxpayer, and the âprotectionâ was paid. Now, in âstreet levelâ of business, if you stayed current on your payments, generally the protection was pretty good. But if you fell behind, well isn't that how it always goes? You miss a payment, your policy lapses and something just awful happens to you? But we taxpayers have been current and current and current. So far, so good. But then something happened that never happened in the mob business plan. Someone â namely Bloomberg â demanded to see the books. Now the Fed was stuck. They couldn't implement the mob's solution to this eventuality. After all, making the questioner "disappear" wasn't legal. Nor was it practical, as it was an entire news service. So they sent enforcers to the plate. A group called The Clearing House Association. A banking group who would confirm that indeed â...bad tings is gonna happen.â Actually I have their exact language... "Survival can depend on the ephemeral nature of public confidence.... Experience in the banking industry has shown that when customers and market participants hear negative rumors about a bank, negative consequences inevitably flow." (Written like a true Harvard grad whose seen one too many Scorsese films.) Interesting. Now I don't have a theory about what the outcome of this might be. Never happened before. But in the long run, perhaps another end could result... After years of public exposure and dogged pursuit by law enforcement, the presence and dominance of organized crime in the country today is decidedly on the decline. We can only hope for a similar result for these central banksters.... Sincerely, Chuck Dolce, Guest Writer for The Sovereign Society Editorâs Note: If you think the Fedâs mafia-style business plan is badâ¦then how about a Ponzi scheme thatâs 1,000 times the size of Bernie Madoffâs shenanigans?