Ellen Brown: Wall Street's Protection Racket of Covert Derivatives!

When Jamie Dimon, CEO of JP Morgan Chase Bank, appeared before the Senate Banking Committee on June 13, he was wearing cufflinks bearing the presidential seal. Was Dimon trying to send any particular message by wearing the presidential cufflinks? Asked CNBC editor John Carney. Was he subtly hinting that he really was the guy in charge? The groveling of the Senators was so obvious that Jon Stewart did a spoof news clip on it, featured in a Huffington Post piece titled Jon Stewart Blasts Senates Coddling Of JP Morgan Chase CEO Jamie Dimon, and Matt Taibbi wrote an op-ed called Senators Grovel, Embarrass Themselves at Dimon Hearing. He said the whole thing was painful to watch. What is going on with this panel of senators? asked Stewart. They-re sucking up to Jamie Dimon like they're on JP Morgans payroll. The explanation in a news clip that followed was that JP Morgan Chase is the biggest campaign donor to many of the members of the Banking Committee. That is one obvious answer, but financial analysts Jim Willie and Rob Kirby think it may be something far larger, deeper, and more ominous. They contend that the $3 billion-plus losses in London hedging transactions that were the subject of the hearing can be traced, not to European sovereign debt, as alleged, but to the record-low interest rates maintained on US government bonds. The national debt is growing at $1.5 trillion per year. Ultra-low interest rates MUST be maintained to prevent the debt from overwhelming the government budget. Near-zero rates also need to be maintained, because even a moderate rise would cause multi-trillion dollar derivative losses for the banks, and would remove the banks chief income stream!