(This is a guest post from endoftheamericandream.com.)
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 realise 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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