It’s not so much the crimes as the gall

Andrew Jackson Central Bank

That’s just beautiful:

Banks ‘ports in the storm’, says JP Morgan boss

The man who had his salary halved in response to his UK fiasco of arrogance says that in the crisis they helped ferment, the people they’ve impoverished should come to them as ethical ports in a storm.

What was it President Jackson said about them?

“Gentlemen, 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 tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin!   Should I let you go on, you will ruin fifty thousand families, and that would be my sin!<

”You are a den of vipers and thieves. I intend to rout you out, and by the Eternal God, I will rout you out… If people only understood the rank injustice of the money and banking system, there would be a revolution by morning.”

When Nicholas Biddle, the head of Bank of the United States “tightened up credit, recalled loans and generally slowed down the American economy” [David C. Whitney, The American Presidents, Guild America, New York, 1975, p75], the population was angry with the government.

Andrew Jackson told the people: “Go to Nicholas Biddle,”  who was chief bankster at the time, heavily involved in renewing the private bank charter.   A mob did “go to Biddle” and he had to barricade himself in his house to escape their wrath.   And the forerunner of JP Morgan itself, what was its modus operandi?

Then along came the next crash, in 1857 and:

Corsair, the Life of J.P. Morgan, tells us that the Panic of 1857 was caused by the collapse of the grain market and by the sudden collapse of Ohio Life and Trust, for a loss of five million dollars. With this collapse nine hundred other American companies failed. Significantly, one not only survived, but prospered from the crash.

In Corsair, we learn that the Bank of England lent George Peabody and Company five million pounds during the panic of 1857. Winkler, in Morgan the Magnificent, says that the Bank of England advanced Peabody one million pounds, an enormous sum at that time, and the equivalent of one hundred million dollars today, to save the firm. However, no other firm received such beneficence during this Panic.

Ron Chernow wrote that the Morgan munificence was reprised in the 1907 panic:

“In the following days, acting like a one-man Federal Reserve system, [J. Pierpont] Morgan decided which firms would fail and which survive. Through a non stop flurry of meetings, he organized rescues of banks and trust companies, averted a shutdown of the New York Stock Exchange, and engineered a financial bailout of New York City.”

Too many people still  believe that the government controls credit and issues money, which allows the real power to take it away behind their backs, precisely what Peabody and Biddle were up to at the time.   Further:

On April 27, 1936, hearings were held by the House Committee on Banking and Currency. The preamble of the bill – HR 9216 of the Seventy-fourth Congress, stated, “The committee had under consideration the bill (HR 92163 to restore to Congress its constitutional power to issue money and regulate the value thereof …

Restore. As in “recover”, to “get back”.   This man at Alcoa has it half right:

I think this credit squeeze is half fabricated and half fed induced. The fed worked themselves into a corner by not regulating loans, then attempting to hide real inflation, and also weakening the dollar.

It created a formula for disaster where the only option is to now lower rates, triggering an unhealthy level of inflation. at this point allowing the systems to work themselves out will cause a large reduction in consumer and investor confidence possibly leading to recession.

The title of this post is about crimes and gall.  When Peabody made a killing on depreciated bonds:

George Peabody set up shop in the aftermath of the 1837 panic:

Because of U.S. debt troubles, Peabody became persona non grata around London (after all, he had sold the Brits much of that debt). But that did not deter him. He bought the depreciated state bonds when they were trading for pennies on the dollar. When these bonds paid interest again, in the late 1840s, Peabody reaped a fortune.

… the issue wasn’t so much that this man of flawed character and habits had made a killing – that’s just sound business acumen, it wasn’t so much that his heirs continued the tradition but that they’d actually managed to rig the system to induce an economic state they wanted.

And that brought it into the area of genuine, rather than figuratively expressed, crime as so many of you know but so many out there still don’t, again as you well know.

So the things Jesse and Karl write about, Zero Hedge too, are no surprise whatever for the student of history – they’ve been doing the same old thing for hundreds of years now.

There’ve been minor skirmishes over it and the only chance society ever had to rid themselves of these people was when a president bucked the system and turned on it but that chance passed.

And not only doing the same things but it’s the same bloody company doing them.

What worries me is that a false christ will arise who’ll promise to take on the vipers and drive them out of town or even execute them.

jamie-dimonEveryone will then follow that man, a sort of Nigel Farage without the obvious flaws and then we’re in a whole new ball game.

One Response to “It’s not so much the crimes as the gall”

  1. Twisted Root January 24, 2013 at 12:23 Permalink

    Worth noting that Jackson did manage to end the charter of the Second National Bank and also survived an assassination attempt when both flintlock pistols used by the assassin jammed.

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