The Iraqi-American War continues: Barzan Mohammed, a Soldier in the Army of Iraq, kills two United states Army Specialists Corey M. Shea and Jose Regalado (private mercenaries).

       NOTE: Meanwhile, 25 Iraqi nationals lose their lives in terrorist violence in Baghdad.

       [added 7/31/2021]

       While the United states Armed Forces (private mercenaries) are stationed at 737 bases, in 130 nations around the world, defending “all freedom-loving people everywhere in the world,” after 40% of the 700,000,000,000 “dollar” Troubled (worth less) Asset Relief Program authorization has been spent, Henry M. Paulson, Jr., secretary of the treasury, announces that he is shifting the focus of his authority under the TARP “to support consumer access to credit outside the banking system.”  The remaining 410,000,000,000 “dollars” in the TARP budget will be used to help relieve pressure on consumer credits such as car loans, student loans, credit cards etc.  Paulson goes to claim that “[O]ne fundamental issue which lies at the heart of our problems.  Over a period of years, persistent and growing global imbalances fueled a dramatic increase in capital flows, low interest rates, excessive risk taking and a global search for return.”

       NOTES:

• On the first point Paulson is prescribing more of what has caused the problem, which is increased debt, both consumer and government debt.  This is akin to giving an alcoholic Bourbon whiskey to alleviate his cravings for Scotch whiskey.
• On latter point Paulson is flat out lying: The sole problem of the financial meltdown has been the privately owned Federal Reserve System of (central) Banks, and its issuance of irredeemable Federal Reserve Notes (Bills of Credit).  The fact that those bank NOTES were redeemable, at one time in our history, kept debts on the part of consumers, businesses and government from getting out of control.  Now with FRNs backed only by debt obligations of the Federal government (Treasury Bills) the FRS and CONgress can increase their wealth by exchanging one set of paper for another.

       Questions:

• With unemployment rising, and the nation facing debt that has risen to unprecedented levels, what makes Paulson think United states subject/enemy/citizens will want to go further into debt?
• Is this is further evidence that those at the top, who are making all of the decisions for the rest of us, have no clue as what they are doing, or of the damage they are doing to others?

       Postscripts:

• Over the next three months lending by 10 of the 13 largest commercial banks that received TARP money actually fell by 46,000,000,000 “dollars.”
• A year later these failure banks were prospering, while the efficient regional banks that would have expanded to fill the void left by the “too big to fail” banks were struggling.

       [added 7/31/2021] Thanks to Freedom’s Phoenix and G. Edward Griffin for this entry.