From the February 2009 Idaho Observer:

Why arenít banks making loans with bailout bucks?

Last month we reported how the Baltic Dry Index (BDI) revealed that international shipping contracts had fallen by 93 percent since July, 2008. In other words, those handful of banking entities who connect producers to manufacturers through international shipments with the letters of credit system were not insuring shipments or guaranteeing payment for dry goods upon delivery. The BDI is one of the most critical marketplace indicators because it measures the movement of raw goods to manufacturers; if raw goods are unable to reach manufacturers, products do not get to market. Though there is some indication that shipping contracts have increased slightly recently, all over the world there are warehouses full of raw goods ready for shipment and manufacturers awaiting their arrival, but transshipment is controlled by those who issue letters of credit and they are simply not being issued at this time.

Researcher James Wickstrom recently explained a few relevant details: "There are 26 shipping routes around the world that the BDI looks at. Shipping stocks are slaves to the BDI. Capesize Ships (over 100,000 tons) make up only 10 percent of the World Fleet but move 62 percent of dry bulk traffic (at a given time Australia has 35-40, China 20, Brazil 40-50, S. Africa 1-7). Panamax Ships (60,000-80,000 tons) make up 19 percent of the world fleet and move 20 percent of the dry bulk traffic (at a given time Australia has 40-60, China 20-35, Brazil 3-12, S Africa 0-1). There is a third and fourth ship size but they are quite small and they arenít moving either.

If we can use the BDI as a guide for the next 12 months of product delivery and food availability in the stores we shop, at then the BDI says shelves will be virtually empty of almost every product.

If the BDI is wrong it will be an historic first. The BDI is used by bankers, financial experts, brokers, traders and everyone in high-end finance to assess the global financial condition and the availability of products worldwide."

The sentence above provides a significant clue as to why banks are not making loans with their billions in bailout bucks. If raw goods are prevented from getting to manufacturers by bankers who issue letters of credit then it is only a matter of time before shelves and showrooms have no products for sale. The domino effect of interrupting the commerce chain at its source can be imagined by us generally mindless consumersóbut anticipated with precision by bankers. If the dollar is going to collapse from the intentional obstruction of commerce at its source, then there is no reason for bailed out banks to arrange loans to raw goods producers, manufacturers or companies that sell them. Additionally, there is no reason to loan money to people for startup businesses or the acquisition of real estate if the businesses are scheduled to fail within the next few months and jobless homeowners will not be able to make mortgage payments.

Since some $700 billion was imagined into existence and disbursed among hundreds of banks in allotments that range from $millions to $billions over the last few months and not much of it is being used to create additional loans, it is logical to ask, "Where are these several hundreds of billions of dollars now?" We can be sure that the phony fiat paper/computer entries called "dollars" are not sitting in the banksí own vaults. That means they are being used to buy up hard assets. They are converting worthless paper into hard assets in anticipation of the collapse their banking colleagues are creating. That means these shrewd, ruthless individuals are planing a non-permanent economic collapse and, after the smoke of the coming social, political and financial inferno clears, a handful of bankers plan to be holding ultimate title to the world.

In the meantime, Obamaís White House is working hard to preoccupy the silly, fawning, money-grubbing masses with the discretionary disbursement of $billions in "stimulus" pork.

How pathetically shameful on one end of that equation; how monstrously diabolical on the other. (DWH).