The Fiscal Cliff Is Nothing More Than Kabuki Theater Used To Distract The Public

Just as the $700 billion TARP program was used to fix the public’s attention on a small sum, while the TBTF banks received (and continue to receive) over $29 TRILLION. The fiscal cliff (sequestration) cuts are back loaded over 10 years, and will amount to no more than $100 billion in any given year. At the same time, there will be somewhere in the neighborhood of a trillion and a half dollars or more in debt added every year. So of course the big banks and the Fed, that manipulate the markets, know the fiscal cliff is no big deal.

Here are the real bank bailout numbers, straight from the Fed. Notice how the media makes a big deal about a few billion dollars in TARP payback, but doesn’t report on an ongoing number that is equal to twice the US yearly GDP, and is constantly rolled over an never paid back. And we’re told that Madoff had a big ponzi going:

Cumulative facility totals, in billions

Source: Federal Reserve

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Facility Total Percent of total
Term Auction Facility $3,818.41 12.89%
Central Bank Liquidity Swaps 10,057.4(1.96) 33.96
Single Tranche Open Market Operation 855 2.89
Terms Securities Lending Facility and Term Options Program 2,005.7 6.77
Bear Stearns Bridge Loan 12.9 0.04
Maiden Lane I 28.82(12.98) 0.10
Primary Dealer Credit Facility 8,950.99 30.22
Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility 217.45 0.73
Commercial Paper Funding Facility 737.07 2.49
Term Asset-Backed Securities Loan Facility 71.09(.794) 0.24
Agency Mortgage-Backed Security Purchase Program 1,850.14(849.26) 6.25
AIG Revolving Credit Facility 140.316 0.47
AIG Securities Borrowing Facility 802.316 2.71
Maiden Lane II 19.5(9.33) 0.07
Maiden Lane III 24.3(18.15) 0.08
AIA/ ALICO 25 0.08
Totals $29,616.4 100.0%

KHQ ON THE STREETS: THE FISCAL CLIFF: Just The Red Herring Distracting Everyone From The REAL Issue

KHQ Right Now – News and Weather for Spokane and North Idaho |

– black swan


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