The Great Mystery of the Economic Crisis

Does anyone know how did the great economic crisis happen that caused the bankruptcy of Lehman Brothers and hundreds of thousands SMEs being swept away across the globe? Some corporate giants like AIG, Bear Stearns, Citigroup, General Motors, Chrysler, Fannie Mae and Freddie Mac(biggest housing contractors in US), Bank of America were on the verge of total collapse if they weren't bailout by the US government with $700 billions taxpayers' money or the so called TARP(Troubled-Asset Relief Program) funds. As I writing now, 89 banks in US had declared insolvency and had been shut down by the FDIC(Federal Deposit Insurance Corporation). As if $700 billions dollars were not astronomical figures, the Obama's Administration introduced another $787 billions dollars "stimulus" package to stimulate the economy as well as all the government in the world.

However, absurdly enough, the US Federal Reserve silently pumped $2 trillion dollars (with a T) into the banking system and foreign governments without any US Congress's approvals or oversights. You might ask how is that possible? Well, the Federal Reserve had been given an invincible power by a former US president Woodrow Wilson in 1913 to lend any amounts of money under "the unusual and exigent circumstances" in the Federal Reserve Act 1913. The great mystery remains - Where does the money come from? How did so much money come into existence in such a short period of time?

If you already watched the "Zeitgeist Addendum" on my previous post, you might already have some ideas on how the fraudulent banking system works through "fractional reserve system" and how the Fed creates money out of thin air. Well, if you haven't, please watch and understand how it works. Very important stuff. For now, I will add 2 more additional videos for better understanding the crisis and the culprit behind the curtain. Enjoy!

"When America sneezes, the rest of the world catches cold; When Fed prints money, the rest of the world catches delusion"

Money As Debt


The Crisis of Credit Visualized