October 23, 2011 By Joseph P. Farrell

Well, it's now been a couple of weeks since we were cordially assured by M. Sarkozy and Frau Bundeskanzlerin Merkel that a new bailout deal was in the offing for Europe. Now, there's this, reported by Bloomberg on Oct 19th:

Federal Reserve Now Backstopping $75 Trillion Of Bank Of America’s Derivatives Trades

Bank of America, in other words, has now moved in such a way that the Federal Reserve must stand behind its bad European derivatives, and that means, as the article itself correctly concludes, "... that the investment bank’s European derivatives exposure is now backstopped by U.S. taxpayers." It is, in other words, the same centuries' old scam, the banksters, when "too big to fail" have become involved in schemes - or outright fraud as many of the derivatives turned out to be - turn to the governments with whom they have crawled into bed, for their taxpayers to bail them out: "What this means for you is that when Europe finally implodes and banks fail, U.S. taxpayers will hold the bag for trillions in CDS insurance contracts sold by Bank of America and JP Morgan."

Bingo, that's it exactly. But there's something else hidden here, and that's the dollar itself. By so doing, it appears that another attempt is being made to prop up the reserve status of the dollar itself. If so, then since America's only export lately seems to be war and more war, then that does indeed make one wonder. The recent moves in Congress, which have received some "bi-partisan" support (I'm lost here... I'm only counting one political party with two disguised outward fronts, but maybe that's just my imagination), to have China rein in its currency, would seem to be another step in this direction. Best, then, to "make sure of Europe" before taking on China.

And all of that, in turn, raises the prospect that the hidden hands behind the Occupy Wall Street protesters are manipulating the calls to global socialism, hidden hands that can only be connected to the very capitalist institutions of high finance that they are protesting.