Congress Bows Before Top Banker
• Lawmakers embarrassingly soft on man who lost at least $2B in one week
By Pete Papaherakles
When JPMorgan Chase CEO James “Jamie” Dimon appeared before the Senate Banking Committee on June 13 to face questions about his bank bungling investments and losing somewhere between $2B and $30B for investors, he carried himself like the “Teflon Don,” John Gotti, in his heyday. He even wore cufflinks with the presidential seal on them as if he was in charge, as he smugly posed for the press photos. Judging from the treatment he received at the hands of fawning legislators, he had nothing to worry about.
The obvious groveling by the senators made one think that they might be on Dimon’s payroll. That would not be too far from the truth, considering that JPMorgan Chase is the biggest campaign donor for many of the senators on the banking committee.
JPMorgan Chase is not only one of the top Wall Street banks, it is actually one of the handful of banks that own the almighty Federal Reserve, the de facto sovereign of the United States. JPMorgan Chase is synonymous with the Rockefeller/Rothschild cartel—the most powerful financial entity in the U.S.—and Dimon also sits on the board of the New York Federal Reserve, the governing branch of the Federal Reserve syndicate.*
“We can hardly sit in judgment of you losing $2B. We lose twice that every day here in Washington,” crooned Sen. Jim DeMint (R-S.C.).
“What should the function of the regulators be? What other areas of oversight would be effective for us?” bootlicked Sen. Mike Crapo (R-Idaho).
“We’re here quizzing you, [but] if you were sitting on this side . . . what would you do to make our system safer than it is?” groveled Sen. Bob Corker (R-Tenn.).
“We will lose some of our shareholders’ money, and for that we feel terrible,” confessed Dimon. “We’ve let a lot of people down, and we are very sorry for it.” This admission seemed to suffice for the senators.
Corker then asked Dimon if he believed the Wall Street reform legislation passed by Congress in 2010 made the country’s banking system any safer. Dimon flatly answered: “I don’t know.”
Corker did not mention that he was one of the senators who had voted against a provision in that legislation, which would have reinstated the Glass Steagall Act, the only safeguard Americans had from the rampant derivatives speculation that resulted in the economic collapse we are in.
JPMorgan Chase holds $57.5T in interest rate swaps, which comprise a significant percentage of the derivatives market. This out-of-control gambling market is reportedly worth $1.2 quadrillion globally. That is $1,200T in bets on whether interest rates on existing debt will go up or not. This is the source of the global economic crisis as this abstract figure is 20 times more than the entire world earns in one year.
The total wealth of the whole planet is only $231T, according to Credit Suisse, yet this house of cards in abstract compound interest created by these psychotic bankers is five times that amount. How is that possible?
In this surreal world of interest rate wars, Dimon is in a position of ultimate power. His vast interest rate swap holdings provide a buffer, which keeps the borrowing rate from the Fed at very low levels. Since the U.S. now borrows a staggering $1.5T per year, the interest rate that the Fed “lends” money at is crucial. None of this would matter, of course, if Congress created its own money interest free as specified in the Constitution instead of giving away that power to the privately owned Federal Reserve.
Dimon would not have fared as well if these hearings were held in Iceland, however. The same week that spineless, bought-and-paid for senators were kowtowing to Dimon, his counterparts in Iceland were being sentenced in court to 4 1/2 years in prison.
Special prosecutor Olafur Thor Hauksson is living up to the legacy of his middle name by tenaciously raiding, arresting, suing and freezing assets of bankers and executives involved in Iceland’s financial crisis. So far six bankers have been arrested as a dozen more are diligently pursued in Iceland, Europe and even in the U.S. The glory days are over for them, and their lavish lifestyle is quickly turning into that of an inmate or a fugitive.
Dimon should be paying attention, because the tide could turn for him and his banker friends. Their money racket is showing some wear. Maybe Dimon will really end up like John Gotti.
*THEY OWN IT ALL (INCLUDING YOU!) By Means of Toxic Currency
Behind a fraudulent and corrupt monetary system lies a hidden creditor. This book proves that this creditor is actually the puppeteer of an insolvent government and hidden master of all American citizens and courts. The creditor has deviously devised a monetary system based on exchange of debt owned and/or liened by the creditor. As one may not see one specific tree in the forest, one does not see a hidden lien on every transaction he makes. Then it becomes visible for all time. THEY OWN IT ALL proves that we have all become subject to a devious scheme. The book reveals the common denominator for the economic implosion, loss of rights, rise of government tyranny and how the servant (government) became the master. By making the invisible yet toxic currency visible, the reader is empowered to remedy a collapsing society with solid steps to create a new order for the people, not the puppeteers. Softcover, 221 pages.
$22 plus S&H from AFP, 645 Pennsylvania Avenue, Suite 100, Washington, D.C. 20003. Order here or call AFP toll free at 1-888-699-6397 to charge.
Peter Papaherakles, a U.S. citizen since 1986, was born in Greece. He is AFP’s outreach director. If you would like to see AFP speakers at your rally, contact Pete at 202-544-5977.