My explanation that the sudden appearance of an unprecedented 400 ton short sale of gold on the COMEX in April was a manipulation designed to protect the dollar from the Federal Reserve’s quantitative easing policy has found acceptance among gold investors and hedge fund managers.
The sale was a naked short. The seller had no gold to sell. COMEX reported having gold only equal to about half of the short sale in its vaults, and not all of that was available for delivery. No one but the Federal Reserve could have placed such an order, and the order came from one of the Fed’s bullion banks, one of the entities “too big to fail.”
Bill Kaye of the Greater Asian Hedge Fund in Hong Kong and Dave Kranzler of Golden Returns Capital have filled in the details of how the manipulation worked. Being sophisticated investors of many years of experience, both Kaye and Kranzler understand that the financial press runs with the authorized story planted to serve the agenda that has been put into play.
Institutional investors who have bullion in their portfolio do not want the expense associated with storing it securely. Instead, they buy into Exchange Traded Funds (ETF) and hold their bullion in the form of a paper claim. The largest, the SPDR Gold Trust or GLD, trades on the New York Stock Exchange. The trustee and custodian is a bankster, and only other banksters are able to turn investments into delivery of physical bullion. Only shares in the amount of 100,000 can be redeemed in gold.
The price of bullion is not set in the physical market where individuals take delivery of bullion purchases. It is set in the paper futures market where short selling can drive down the price even if the demand for physical possession is rising. The paper gold market is also the market in which people speculate and leverage their positions, place stop-loss orders, and are subject to margin calls.
When the enormous naked shorts hit the COMEX, stop-loss orders were triggered adding to the sales, and margin calls forced more sales. Investors who were not in on the manipulation lost a lot of money.
The sales of GLD shares are accumulated by the banksters in 100,000 lots and presented to GLD for redemption in gold acquired at the driven down price.
The short sale is leveraged by the stop-loss triggers and margin calls, and results in a profit for the banksters who placed the short sell order. The banksters then profit again as they sell the released gold into the physical market, especially in Asia, where demand has been stimulated by the sharp drop in bullion price and by the loss of confidence in fiat currency. Asian prices are usually at a higher premium above the spot prices in New York-London.
Some readers have said “don’t bet against the Federal Reserve; the manipulation can go on forever.” But can it? As the ETFs such as GLD are drained of gold, their ability to cover any of their obligations to investors diminishes. In my opinion, these ETFs are like a fractional reserve banking system. The claims on gold exceed the amount of gold in the trusts. When the ETFs are looted of their gold by the banksters, the gold price will explode, as the claims on gold will greatly exceed the supply.
Kranzler reports that the current June futures contracts are 12.5 times the amount of deliverable gold. If more than 8 percent of these trades were to demand delivery, COMEX would default. That such a situation is possible indicates the total failure of federal financial regulation.
What the Federal Reserve has done in order to maintain its short-run policy of protecting the “banks too big too fail” is to make the inevitable reckoning more costly for the US economy.
Another irony is the benefactors of the banksters sale of the gold leeched from the gold ETFs. Asia is the beneficiary, especially India and China. The “get out of gold line” of the US financial press enables China to unload its excess supply of dollars, accumulated from the offshored US economy, into the gold market at a suppressed price of gold.
Kranzler points out that not only does the Fed’s manipulation permit Asia to offload US dollars for gold at low prices, but the obvious lack of confidence in the dollar that the manipulation demonstrates has caused wealthy European families to demand delivery of their gold holdings at bullion banks (the bullion banks are essentially the “banks too big to fail”). Kranzler notes that since January 1, more than 400 tons of gold have been drained from COMEX and gold ETF holdings in order to satisfy world demand for physical possession of bullion.
Again we see that institutions of the US government are acting 100% against the interests of US citizens. Just who does the US government represent?
Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. His latest book, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West is now available.
Source: Paul Craig Roberts
If you listen to the alarm coming out of the imperium empire media, you would think that missiles would be flying at any moment. That medieval torture regime noted for starving their population is boasting that a bellicose attack is imminent. Of course, their propagandists are pointing the finger at the Yankee bully that is the perennial bogyman posed to snuff out the Democratic People’s Republic of Korea. Such an earthly paradise is billed as a “genuine workers’ state in which all the people are completely liberated from exploitation and oppression. The workers, peasants, soldiers and intellectuals are the true masters of their destiny and are in a unique position to defend their interests.”
Indeed such a freedom loving society takes pride in professing their government is the rightful leadership for the entire Korean peninsula. Such bold determination to dominate the imposter that has set up shop in the south must mean that the Kim Il-sung and Kim Jong-Il dynasty will prevail. Both adopted the Songun, or “military-first” policy in order to strengthen the country and its government. North Korea is the world’s most militarized country, with a total of 9,495,000 active, reserve, and paramilitary personnel. Now the grand Kim Jong-un general in chief is ready to hit the nuke button as a sign of his manhood.
Does it really matter that North Korea Defies World Body with Third Nuke Test, or is this just another opportunity for the world community to play the role of the white knight as it slays an infantile dragon that causes trepidation among his commie mentors?
“Still, three Security Council resolutions – in 2006, 2009 and 2013 – critical of North Korea’s nuclear program and tightening sanctions on Pyongyang – had the blessings of China, a permanent member with veto powers.
But the harshest of possible sanctions – a naval blockade, an oil embargo or a cutoff of economic aid from China – have escaped Security Council resolutions, at least so far.
The 15-member Council met in an emergency session Tuesday and issued a predictable statement condemning the test as “a grave violation” of its three resolutions and describing North Korea as a country which is “a clear threat to international peace and security”.”
When the Guardian newspaper writes, Now North Korea defies even China, should we really believe that the true Asian tiger is powerless to reign in the unhinged stepchild.
“In this tense game of diplomatic-military poker, South Korea is not even the North’s principal adversary. Kim Jong-il is now blithely defying all the major regional actors – the US, China, Russia and Japan – while actively exploiting differences between them. It makes little difference whether his aim is recognition and security guarantees; economic and financial assistance; or the succession of his son. Kim is playing off the great powers against each other, to see what he can get out of them. The result is virtual diplomatic meltdown.
Just look at what has happened since last month’s bombardment of Yeonpyeong island. China, the North’s only influential ally, has come under strong US pressure to pull its supposed client into line. China’s perceived failure to do so is straining relations with Washington. James Steinberg, the US deputy secretary of state, visited Beijing today carrying the message: China must do more, fast.”
China saved the original North Korean dictatorship from defeat with their intervention of troops back in November 1950. Mao and Stalin fired up the cold war into a blood stained conflict that never ended. The uneasy armistice at the cease of arms, supposedly now terminated, allows for active deployment of the most sophisticated weapons. Is this a fragile standoff or should the prudent student of the global gulag conclude, that the Chinese and even the Russians, are eager to confront the Western allies through a standalone surrogate?
The New York Times hints at the answer in the article, China Looms Over Response to Nuclear Test by North Korea.
“The Chinese military, and to a lesser extent the International Liaison Department of the Chinese Communist Party, assert strong influence on China’s Korea policy, and both powerful entities prefer to keep North Korea close at hand, Chinese and American analysts say.
While the People’s Liberation Army is not even able to conduct military exercises with the North Koreans – the government in the North forbids such contact with outsiders – Chinese military strategists adhere to the doctrine that they cannot afford to abandon their ally, no matter how bad its behavior, analysts here say.
At the same time, the Chinese Communist Party looks upon the North Korean Communist Party – led by Kim Jong-un, the grandson of the nation’s founder – as a fraternal brotherhood. Indeed, relations between the two countries are conducted largely between the two parties rather than between the two foreign ministries, the more normal diplomatic channel.
In an early sign that Mr. Xi is unlikely to veer from past policy, the state-run news agency, Xinhua, criticized the United States and its allies for essentially forcing the North’s aggression by causing the country to feel insecure.”
Blame the U.S. for causing insecurity, when the sordid record of capitulation to the repeated game of North Korean chicken, resembles a farmers feed the world that largely benefits corporate agriculture. Putting and keeping Kim Jong-un on a short choke chain leash is certainly within the power of the Chinese.
Since China is the preferred economic model of the globalists and North Korea is the chosen police state version for social repression, what possible reason would China have to intervene by stopping the challenge to the American military?
The Storm Clouds Gathering video, The North Korean Nuclear Crisis What You Aren’t being Told, provides a perceptive analysis of the current confrontation.
The proper method to interpret Sino-American foreign policy is through a lens of transnational monopoly control. The real masters of Asian industrialization and American decline operate above and beyond national sovereignty. The best explanation of perceived unstable skirmishes that lead to deployed conflicts, must accept that it is good business for the globalists to keep tensions high with frequent warfare.
The bondage cult that adores the North Korean regime is an expendable ritual killer machine that excels in making threats, but comes up short, when faced with superior force defense. The mission assigned for North Korea is to stir the pot for state of war stress, while backing down without losing face domestically.
Defense News offers a familiar establishment appeasement attitude viewpoint in the report, Has China Had Enough of N. Korean Antics? Maybe Not.
“North Korea’s continuous provocations defying China’s demands, warnings and brazen neglect of China’s key strategic and security interests certainly drive many in China, both in the public and among elites, to ‘soul-searching’ on its North Korea policy,” said Wang Dong, director, School of International Studies, Center for Northeast Asian Strategic Studies, Peking University, Beijing.
China will join the international community in tightening sanctions against the regime, “but it will also carefully ensure the sanctions do not ‘threaten’ another key goal of China, which is peace and stability on the Korean peninsula,” Wang said.”
Get real folks! The notion that North Korea is defying Chinese interests is ridiculous. The actual international community consensus that controls worldwide politics, seeks to dismantle the global influence of America and deepen damage on the U.S. political system.
Fear of a nuclear exchange with Kim Jong-un military is rooted in the false premise that North Korea can and would operate separately from Chinese or Russian direction. Ratcheting up the threats makes high drama, but produces a low probability for an actual attack.
The prospects for direct negotiations with the AmeriKan “Beloved Leader”, Barack Hussein Obama might well take place at a Tehran Conference II. What a great diplomatic coup for a peacemaker of banksters’ interests to immerge as the capitulator in chief. Averting WWIII by compliance and singing an international ecumenical anthem is the ultimate game plan from this latest trumped up crisis.
Do not rule out a false flag incident. The dogs of war like to play in the killing fields of properly planned out maneuvers. However, that threatened surge of a 10 million horde, breaching the 38th parallel, has a greater likelihood that the rush would be to seize Samsung electronics, than to mop up the debris from depleted uranium.
An inevitable World War III will be fought under the direction of unworldly principalities. Kim Jong-un is a cartoon caricature and a paper tiger, more suited for his 15 minutes of fame, than a reincarnated Napoleon.
Watch for the real fallout from this episode of “true grit”. Keep your eye on the monetary radioactive dust cloud. The threat of war is the best cover for a heist of global propositions. When in trouble, the great powers mobilize for pillage. The North Korea gulag is a nightmare that readies replication for the rest of the world. The cabal of globalists is the actual warmongers.
The International Monetary Fund is an extortion financier’s outfit for a gang of exploiter banksters. The colonists of global mercantilism operate on extending credit with strings attached and assets targeted for attachment. Poor and underdeveloped economies beg for roll over extensions of old debt in an endless circle of currency debasement and resource transfer. So why anyone would get excited over a competing banking house, seems to escape implications within the news publications.
The Global Post describes in the article, BRICS countries to form new development bank.
“The bank is intended to fund development and infrastructure projects in BRICS nations and elsewhere. First discussed a year ago, it has been described as an alternative to the IMF and World Bank for developing countries.
Although the plan is the biggest announcement to come out of a summit of BRICS leaders in Durban, South Africa, where they signed an accord today, details such as how much capital the bank will have, its structure and its location have yet to be worked out.”
Would this development bank become simply a Chinese dynasty investment structure based upon the weight of their financial leverage within the system? Or would the union of eager modernizing countries really be the future formula for economic growth and wealth? On the surface the positive foreign reserves and lower indebtedness seem to answer a resounding yes, but look a little deeper.
Without specific details, the viability of such a scheme is unknown. The article, BRICS Seek to Cement Position in Global Economic Landscape, does not exactly envision a smooth maturation.
“The planned development bank “is feasible and viable,” leaders confirmed in a statement on Wednesday. Such a bank would “supplement the existing efforts of multilateral and regional financial institutions for global growth and development.”
However, officials speaking earlier during the summit admitted that various key details remain to be worked out before the proposed bank can become fully operational – a process that is expected to take years. For instance, disagreements have already surfaced among the BRICS on the specifics of the bank’s mandate, and how exactly the institution would be financed.”
The question, missing from the depths and significance of news analysis is whether a competing fund for international lending from a group of rival countries will improve on the sorry record of Western banking.
Venky Vembu from First Post in BRICS Bank is just a castle in the air, points out the infighting among participating partners.
“Analysts who attend the BRICS deliberations point out: ”By day they talk grandly of multilateral action to tip the playing field in favour of poorer nations, while by night they scheme shamelessly against each other, often in conjunction with their supposed economic oppressors in the West.” There is, he adds, virtually nothing that unites them other than resentment and suspicion of Western monopoly – not all of which is justified.”
Another viewpoint that brings the discussion down to earth is written by Ruchir Sharma in The Economic Times article, Brics summits are so last decade: All members are slowing down.
“All the Brics are slowing sharply. China’s economy has slowed from an average annual growth rate of 11% in the last decade to less than 8% in 2012. That has taken the wind out of economies that set sailBSE 0.56 % by selling raw materials to China, particularly Brazil and Russia, where GDP growth slipped to 1% and 3.5%, respectively, last year. Investors are heading for other destinations, and in dollar terms the Brics stock markets are trading 30-40 % below the peaks of the last decade. But, once again, the politicians are a step behind.
The Brics no longer look like a rising economic axis. On average, the growth rate of Brazil, Russia and South Africa is likely to be around 2.5% over the next few years, about the same pace as the US. That would be a terrible disappointment for these developing nations eager to catch up to the West, as their per capita income is much lower than that of the US. Owing in good part to the Brics slowdown, the US economy is now growing at the same pace as the global average for the first time since 2003, leading to stabilisation in its share in the world economy at around the long-term average of 23%.”
These foreign press items reflect a much different understanding from the news report on the BRICS announcement video, ‘Hegemonic corporations scared as BRICS plan bank to rival IMF‘.An optimistic projection that the global economy will generate sensible growth and prosperity because of BRICS leadership, is a stretch at best. This concern is certainly no endorsement of the existing Western debt created money-banking model. However, the power of the IMF and World Bank is based upon the military enforcement arm of the NATO machine.
The concept of central banking is immutably defined by the dominance of empire. The peaceful relinquishment of international finance to the BRICS is about as probable as a soft landing from the world debt bubble.
Evolving is a testing of world markets for a transfer to a different banking centercolossus. In order for that hypothesis to be even remotely possible, the world reserved currency status of the U.S. Dollar must be replaced with a basket of other currencies.
The BRICS countries have their own set of internal economic shortcomings. Much of their cash flow is export trade related. The collapse of global trade is the biggest risk that looms over a brighter future for especially undeveloped economies. Another quasi-IMF stratagem that presents a top down banking compliance is not an alternative to the existing fraud.
Looking for altruistic benefactors that are willing to finance capital requirements, from usury lenders is a fools dream. Setting off a turf war, results in collateral damage, for everyone. Financial conflict is predictable when business is based upon a destructive banking version for an imbalance in commerce obligations. A butting of heads between the BRICS, the EU and the USA is just as inevitable.
When does banksters’ extortion become outright theft? The latest example and escalation by the placing a levy fee on bank deposits in the tax haven of Cyprus illustrates the bold step of seizing private liquid saving accounts, under the guise of a government tax. The prospects of an all out run on the banking system have jumped tenfold. Essentially, a government is using the power of the state, to steal funds not because of the bankruptcy of a banking institution, but because of a failure of the entire EU financial system. The forbidding precedent of a seizure of individual wealth, by a stroke of a pen, runs contrary to the shrinking confidence in fiduciary trust of cash placed in banking accounts.
The risk of pronounced turmoil in financial markets has just elevated, as the harsh reality of surrendering your economy to the demands of an untenable debt burden dictatorship, is obvious to anyone with a bank account. The savings of a lifetime is now subject to confiscation. The pitiful explanation of Cypriots’ president defends bailout deal, clearly reveals that the globalist financial central bank system is determined to impoverish individual nest eggs.
“President Nicos Anastasiades said Cyprus had little option but to accept the bailout deal, which imposes a levy on the country’s bank deposits – an unprecedented step in the eurozone crisis. Without it, he said, Cyprus’ banking system would have collapsed on Tuesday.Anastasiades said that’s when the European Central Bank would have stopped providing emergency funding to Cyprus’ troubled banks. Such a collapse would have driven the country to bankruptcy and possibly out of the eurozone, he said.”
A departure from the eurozone is a preferable alternative to a bank burglary of your saving account. The interview in, ‘Europe’s Citizens Now Have to Fear for Their Money’ admits the worsening plight of added debt. “The euro-zone partner countries seeking to provide Cyprus with a bailout view the participation of small-scale depositors as a necessary evil. This is because any aid provided by the long-term euro rescue fund, the European Stability Mechanism (ESM), would be added on top of Cyprus’s national debt.”Now the excuse used by the establishment press to soften the blow of systematic larceny points to the Russian Oligarchs Lose Friend In Cyprus Banks, as exoneration for tapping the pocketbooks of shady elements. “Cyprus is known as a hot bed of Russian money laundering.” Well, that justification surely does little to make whole the struggling Cyprus natives that can ill afford the hit.
The video, Cyprus savers- EU bailout prompts run on Cyprus banks, tells a sad tale of financial enslavement.
The article, Russian Ruble, Stocks Nosedive on Cyprus Debt Crisis outlines the initial response to the announcement. “Under the terms of the bailout deal, Cyprus will have to impose a levy of 6.75 percent on deposits of less than 100,000 euros and 9.9 percent on deposits with greater sums. Cypriots reacted with shock and rushed to cash machines to withdraw their savings, but many machines refused to pay out.”
Not long thereafter, The Telegraph newspaper reports on plan B, a feeble attempt to gain legislative support to pass the measures. “The Cypriot government has submitted a draft bill to parliament scrapping a controversial levy on bank deposits up to €20,000, amid calls from its central bank governor and eurozone finance ministers to ramp the exemption threshold up to €100,000.”
The perspective analysis from ZeroHedge warns of the unintentional consequences from this pompous scheme of outright larceny in the essay, Will Russia Kill The Cyprus Bailout?
“As Monument Securities’ Marc Ostwald notes “there’s a 50/50 chance Cypriot bailout fails because of the ‘massive danger’ a large amount of Russian cash flees Cyprus following deposit tax plans.” Russia has ~$60 billion exposure to Cyprus, including loans to companies registered in the country and after the haircut 90% of Russian deposits will still be free to leave the country if the levy is approved.
The critical point is that, should this occur (such a large outflow of Russian cash – dwarfing in fact the size of the bailout package itself) it is hard to see how the Cypriot banking system could survive (even with the assistance of the ECB’s ELA).”
Predictably, Forbes waters down the unprecedented destruction of banking confidence that is so indispensable for the megabanks to rape sovereign nations. The Bailout For Cyprus: A FAQ To The Latest European Financial Crisis, makes it sound that the panic is simply business as usual.
“And here’s the larger picture. Cyprus is badly indebted. Its debt-to-GDP ratio pushed to 127% in the third quarter of 2012, the latest period tabulated by European Union officials. Such high debt reflects Cyprus’ ill financial health. Only Greece (at 153%) has a higher level. The bailout would begin to reduce its debt, sending it back below 100% of GDP within the year.”
So what can be expected in future confiscation of depositor funds? Prepare for the ultimate run on the banks, before the formula from the great vampire squid -Goldman’s Cyprus Post-Post-Mortem: “A Depositor “Bail-In” – And/Or – A Wealth Tax”, is applied on all deposits.
“Despite Cyprus being small, and arguably unique, a depositor in a peripheral bank is likely to ask the obvious question: how likely is a deposit tax for me? The answer to this question, we believe, will differ, depending on the peripheral country where it is asked. But it should, in essence, boil down to two issues: (1) how likely are savings to be bailed-in in any future bank rescues; (2) how likely are savings to emerge as a tax-base for any future wealth taxes?”
The Cyprus banking holiday is the forerunner of an international overt robbery by banksters. The biblical relief of a Jubilee, that writes down and forgives debt, is desperately required to end the financial slavery to the shylock swindlers. The centralization of global banking has an inevitable financial collapse as the end game. Today Cyprus, Tomorrow the World.
The Cypriot vote to reject the savings tax gives a short breather to a situation that only a breakup of the EU can resolve.
The alarmist media always seeks to sell papers or broadcast ratings, built on the unswerving fear that followed the financial meltdown, the banking establishment profits from the debt liquidation panic. The lack of stability in fiscal confidence certainly abounds, but the schemes to paper over the mountain of liability obligations, develop at even a more rapid pace. The implied result of a real currency war is that nations are acting or defending their own national interests. The truth is that fiat currencies, designed to depreciate, benefits the moneychangers as the loss of purchasing power penalizes taxpayers and consumers.
The financial press spins the “so called” harmonious unity of the industrial nations, in a lame attempt to ease concerns that the money markets can be trusted. An example is the G20 summit to focus on ‘currency war’ threat to economy. This Independent article, lays out the implications of the current currency row.
“G20 officials are set to disregard key parts of the G7 currency statement while making no direct mention of new debt-cutting targets – something Germany is pressing for but which the United States is opposed to.
CMC Markets analyst Michael Hewson said: “What the G7 basically said this week is that it is fine to manipulate your currency as long as you don’t talk about it. These ‘currency wars’ are more like phony wars. The bigger problem the G20 has is not currency wars, it is a lack of growth.”
Substitute the term currency war, for coordinated inflation, cloaked in the public announcements, out of the globalist ministers for a single world currency. Do not doubt for a moment that the ultimate goal is to create managed crisis, in order to push soveriegn countries into incessant serfdom. The Fiscal Times in the article, How a Fake Currency War Panicked Global Economies, concludes.
“What we have been calling “the currency wars” these past couple of weeks is nothing more than a process of adjustment. Exchange values will settle. We have entered a period where economic priorities are changing on a global scale. This reflects a shift in views even from last autumn, when austerity was still the faith. This adjustment will have its effect on currency values, let there be no question. Do not mistake it for a war.”
This kind of monetary distortions is the inevitable outcome with the abandonment of the gold standard. Currency trading is the largest market on the planet. Artificial gains are derived from intentional imbalances, since gambling has replaced business as the path to riches. True wealth is build upon the fruits of commerce. The dangerous notion that a cheap currency is desired because it expands exports is a sure formula for national demise. This point illustrated by George Smith, provides a more realistic assessment in his essay, Currency wars are fiat wars.
“According to the U.S. Department of Commerce, exports accounted for 13.8% of GDP in 2011, a record high but still a small fraction of the total. Devaluing the currency for the alleged benefit of a small segment of the economy hardly makes economic sense when it penalizes all participants with higher prices. It also buttresses the sense that the currency wars will ignite a shooting war and end like all wars, with only a handful of winners and millions of losers. As we know Keynesians star-struck with World War II believe otherwise, and Keynesians run the economy.”
The observation that the global financial potentates are Keynesian disciples is undeniable. The fable that an actual currency war is upon us, avoids the valid supposition that replacing the present floating exchange system with a contemporary fixed currency standard would restore equilibrium and fiscal discipline, and curtail much of the collusion among central banks. Welcome a genuine currency crusade that eradicates the globalist infidels and reinstates trusted and stable coinage to a legitimate free enterprise economy.
As long as script money is used as an accounting medium for central financial planning, honest coinage will be attractive as an alternative to depreciating paper values. The race to the bottom is more a rush away from legal tender to actual commodities.
The Japanese Yen’s dramatic drop in comparison to most currencies is just the beginning of a rotating realignment that sees world purchasing power reduced for average citizens. The essay, Bretton Woods II – The Final Enslavement of Mankind, provides the hint of the end game.
“These financers are admittedly the evil rulers of society. Any attempt to force a singular currency and a universal taxation levee is a fulfillment of the final enslavement of man-kind. Bretton Wood II is an outline for things to come. The debt created money cartel is ready to impose their captivity on sovereign governments.”
As the revolving musical chairs plays out, the planned calamities drive the “Nervous Nellies” into the arms of the banksters cabal for a fabricated, but temporary, stability. This staged scenario keeps the one world combine administering their “Pollyanna” existence at the expense of the exploited. The financial elite are living in a dream world of their own creation.
The factual result from this cooked up currency war raises international debt obligations, out of an urgent hope of serving their roll over refinance, with even cheaper currency values. The worldwide financial system, desperately entrapped in a black hole of lower economic growth and wealth generation, cannot combat the consequences of compound interest.
When the sad song stops, interest rates will explode upward. At that point, all paper money will lose the confidence of the financial markets, as the derivative bubble breaks. The final bottom is anybody’s guess. The political response will take the appearance of a unified front to save the intercontinental financial system. The literal result will be that the New World Order elites will consolidate their power and control over an inventive substitute for national currencies. The valid conclusion is that the actual war is one against the entire banking charade. Money is a mere bookkeeping device.
Obama, Housing And The Next Big Heist…
“Part of our rebuilding effort must also involve our housing sector. Today, our housing market is finally healing from the collapse of 2007. Home prices are rising at the fastest pace in six years, home purchases are up nearly 50 percent, and construction is expanding again.
But even with mortgage rates near a 50-year low, too many families with solid credit who want to buy a home are being rejected. Too many families who have never missed a payment and want to refinance are being told no. That’s holding our entire economy back, and we need to fix it. Right now, there’s a bill in this Congress that would give every responsible homeowner in America the chance to save $3,000 a year by refinancing at today’s rates. Democrats and Republicans have supported it before. What are we waiting for? Take a vote, and send me that bill. Right now, overlapping regulations keep responsible young families from buying their first home. What’s holding us back? Let’s streamline the process, and help our economy grow.”
First of all, whenever you hear a politician talk about “streamlining the process”, run for cover. The term is a right-wing formulation that means “remove all the rules which inhibit profitmaking”. Naturally, Wall Street’s favorite son, President Hopium, is more than comfortable with the expression and uses it to great effect. But what are the rules that Obama wants to eliminate, that’s the question?
Obama answers that himself when he says: “Too many families with solid credit who want to buy a home are being rejected.”
This is pure baloney. Borrowers with good credit who can meet the standard down payment requirement (usually 10 percent) can secure financing without too much trouble. The problem is that the banks don’t want to be limited to creditworthy applicants alone, because there aren’t enough creditworthy applicants interested in buying a house. That’s why they want Obama to loosen regulations on “government insured” mortgages so they can lend money to anyone they want knowing that Uncle Sam will pay the bill when the loans go belly-up. That is what this is all about; Obama wants congress to slap their seal of approval on a new regime of crappy loans that will eventually be dumped on US taxpayers. Here’s the story from Bloomberg:
“U.S. Realtors and mortgage bankers say they’re hoping President Barack Obama’s call for streamlining mortgage rules will lend new momentum to efforts to prevent imposing a strict minimum down payment for home loans.
… bankers and real estate agents …are angling for changes to a proposed regulation requiring lenders to keep a stake in risky loans say they hope Obama’s comments will help their cause.
At issue is the so-called Qualified Residential Mortgage rule, which six banking regulators including the Federal Deposit Insurance Corp. and the Federal Reserve are aiming to complete this year. The regulators drew protests in 2011 when they released a preliminary draft requiring lenders to keep a stake in mortgages with down payments of less than 20 percent and those issued to borrowers spending more than 36 percent of their income on debt…(“Housing Industry Pins Hopes on Obama to Soften Down-Payment Rule, Bloomberg)
Can you believe this hogwash? Regulators are asking the banks to retain a lousy 5% of the value on high-risk mortgages (so they can cover the losses in the event of another meltdown) and the stinking bankers are whining about it! Unbelievable. In other words, they’re being asked to put some “skin in the game” so they can pay off defaulting loans when they blow up the financial system again, and they don’t want to do it. The banks are fighting so-called “risk retention” tooth and nail, because they don’t want to tie up their capital. Imagine if your insurance company ran its business the same way? So, then your house burns down, and the claims agent tells you, “Sorry, Mr Jones, we can’t pay your claim because all our money is tied up in structured investment vehicles and dodgy debt instruments.” Are you okay with that? But that’s what the banks are doing, and they’re doing it because they want to be leveraged “N”th-degree to maximize profits. Besides, they know from experience, that when the system goes down again, the USG will ride to the rescue and pay off their debts. So why hold capital?
Keep in mind, that the banks can lend whatever amount they want to whomever they want. No one is stopping them. But if they want the government to guarantee the loan (or if they want government financing), they have to follow certain rules. And the rules have to be clear because the banks have shown that they can’t be trusted. Here’s more from Bloomberg:
“Housing industry participants want the regulators writing QRM to drop the down payment requirement and raise borrowers’ allowable debt load to 43 percent, essentially setting the same requirements in both the QM and QRM rules.” (Bloomberg)
This is so stupid it boggles the mind. “No, Mr Bankster, Uncle Sam will not guarantee your putrid loan if the applicant can’t come up with a measly down payment or if his monthly payments exceed the standard 36 percent of income to debt.” This is so tiresome. There’s no point in putting people into loans that they can’t repay. We tried that. It doesn’t work.
Now ask yourself this: Why are the banks so adamantly opposed to what-they-call the “stringent down payment requirement”? Down payments have been SOP for decades. A 10 or 20 percent down is an indication that a borrower is responsible enough to set aside some of his income for the future, which reflects positively on his creditworthiness. It’s also an indication that the borrower is not going to cut-and-run at the first sign that prices are falling. Stakeholders typically stay with the ship even after it’s hit the iceberg, which helps to stabilize the market and prevent prices from falling off a cliff. The banks know this, which is why they typically demand a down payment on loans that are NOT guaranteed by the government. It’s only when the government’s on the hook for the loss that they don’t give a rip.
Bloomberg again: “Groups including the Mortgage Bankers Association have been warning about the impact of rulemaking in an already tight market.”
Now there’s a surprise. So bankers hate rules and regulations? Really? And they also think its terrible that borrowers need to have decent credit scores to qualify for “government backed” loans? Will wonders never cease. Well they won’t have to wait much longer, will they, because Obama has promised to loosen those “onerous” rules so they can get back to business and start fleecing people like the good old days.
Let’s not kid ourselves, the banks have figured out what many analysts have known all along; that low rates, mortgage modifications, and massive private investment (speculation) are not going to be enough to reflate prices and generate another housing bubble. No way. It’s going to take a total breakdown in lending standards so the banks can, once again, provide hundreds of thousands of dollars to anyone who can sit upright and scratch his John Hancock on a mortgage app. That’s what it’s going to take to erase the 30% loss in the value on the stockpile of garbage mortgages the banks still hold on their balance sheets.
Here’s Obama again:
“Too many families who have never missed a payment and want to refinance are being told no. That’s holding our entire economy back, and we need to fix it. Right now, there’s a bill in this Congress that would give every responsible homeowner in America the chance to save $3,000 a year by refinancing at today’s rates. Democrats and Republicans have supported it before. What are we waiting for? Take a vote, and send me that bill.”
So Obama doesn’t just want to loosen regulations for new home buyers (No down payment, high debt-to-income ratio), he also wants to help refinance underwater homeowners who’ve been making their monthy payments regularly. But why? After all, the administration’s aggressive mortgage modification program (HAMP) is already providing low-interest refis for people who are as much as 125% LTV (underwater) What’s different about this program?
Ahh, that’s where it gets interesting. Here’s the scoop from Bloomberg:
“The U.S. Treasury Department and members of Congress are preparing to move forward with plans to expand government-backed refinancing programs to underwater homeowners whose loans are packaged in private-label securities.” (“U.S. Mortgage Refinancing Push Said to Advance in Congress”, Bloomberg)
“Private label”? So now the USG is going to guarantee the mortgages the banks concocted in their boilerrooms that didn’t even conform to standards that would allow them to be financed by Fannie and Freddie? That’s what Obama is pushing for? Yeegads! Here’s more from Bloomberg:
The trust, as described in Merkley’s earlier proposal, would provide relief to borrowers with privately owned loans and probably would be set up under the oversight of an existing housing agency. If Congress doesn’t pass such a measure, the Treasury is drafting a plan to step in to pay for rate modifications for those homeowners.” (Bloomberg)
What? So if Congress doesn’t approve the bailout, then the Treasury will implement the plan anyway? Is that it? That doesn’t sound very democratic.
“Under that option, the government would pay the difference between the new and original interest rates to the owners of the loans for five years. Investors in private-label securities have sometimes objected to mortgage modifications because of concerns their income could be reduced.” (Bloomberg)
Wait a minute. Shouldn’t the investors or the banks take the haircut instead of taxpayers? After all, whose fault is it that 5 million families have lost their homes to foreclosure since 2007 and 11 million homeowners are presently underwater? Not the taxpayer. Let the responsible parties bear the costs. That’s the way the system is supposed to work, right?
And Merkley’s proposal is just one two bills now awaiting congressional action. The other is the Boxer-Menendez bill which “promises lenders they won’t be forced to absorb the loss on refinanced loans that default.” (Bloomberg) Great. So, while the Boxer-Menendez bill will not refi loans that are not backed by Fannie Mae and Freddie Mac, (no “private label” loans) it will move (an estimated) one million high-risk mortgages off bank balance sheets and onto the public’s ledger. This is how the free market capitalism works in the US today; all the profits go to Wall Street and all the red ink goes to Main Street.
Obama doesn’t care if struggling homeowners get a break on their refis or not. It’s all a joke. He’s just helping his bank buddies cut their losses while they set the stage for their next big heist.
Bonds are loans that have the expectation of payback with interest. Government bonds are viewed as the safest financial instrument since the primary fiscal obligation of the state is to honor the terms of their own notes. However, in the fevered climate of currency wars among central banksters, the security factor of capital repayment is rapidly coming into question. As interest rates rise, the economic value of the bond diminishes. This inverted normal relationship is the essential dynamic of lending money with the purchase of Treasury Bonds. So what is all the talk about a bond bubble and likelihood that it will destroy your underwriting capital?
Bloomberg Businessweek warns in the article, The Rising Bubble in Bond-Bubble Chatter.
“An asset price bubble is when the expectation that the price can only go higher forms the only rationale for purchase,” remarked BlackRock’s (BLK) bond honcho Jeffrey Rosenberg Thursday at the CFA Society of Los Angeles’s Economic & Investments Forecast Dinner, at which the “wherefore bond bubble” discussion dominated. “But the main motivation of investors for buying fixed income is the opposite of typical bubbles—the fear of losing money rather than the greed of potential profit has fueled the historic shift of assets into fixed income.”
Just how safe is your money when you are holding T-Bonds? The U.S. Treasury wants you to believe that no other form of currency has the protection of first guarantee of the full faith and credit of your own government. Well, the mere questioning of this mythical assurance breeds deep distrust and instability of confidence into the entire fiscal system.
Morningstar offers an assessment in The Bond Bubble Threat, which on the surface is very sensible.
“To understand the implications of where we are, consider the history of the benchmark 10-year Treasury note. From 1900 to 2012, the average interest rate (yield) was 4.99% (often quoted as 5%). On Jan. 30, 2013, the yield was 1.99%, well below the long-term average. The prime interest rate, which the Fed has a role in setting, is 3.25%. It is the break-even rate for banks pricing loans.
When the performance of an asset class runs substantially above or below a long-term average, the odds increase that at some point performance will move back toward the long-term average. It may take a while for the interest rate on 10-year Treasury paper to re-approach 5%, but at some point, it will. As interest rates creep up, we see a shift away from fixed debt instruments to variable rate paper, stocks and various inflation hedges.”
Regretfully, when was the last time that economic fundamentals applied to the money debasement manipulations of the Federal Reserve? No doubt, a day of reckoning will come if market principles are allowed to work out their natural balance. However, the moneychangers design a fantasyland of monetary assessment that distort and prop up the price of the “Reserved Currency”.
John Plender writes in the Financial Times, Central bank hot air pumps up bond bubble, presents an analytical evaluation of worth in the current bond values.
“In the fixed interest sector something irrational is undoubtedly going on, but it is less a matter of exuberance than desperation in the pursuit of yield. In higher yielding parts of the market prices are out of touch with default risk.
Despite the oft-heard central bankers’ refrain that bubbles are impossible to identify until after they have been pricked, historical comparisons leave little doubt that this is a bubble – one, moreover, to which central banks have contributed their fair share of hot air. It is rare indeed for investors to pay a multiple of more than 50 times for the income stream on a 10-year Treasury bond.”
Nevertheless, this inflated bubble just keeps expanding from the unlimited flow of repurchases by the Federal Reserve of Treasury debt. What else is left to do, when the global financial markets are reluctant to buy into the next round of T-Bill offerings? Indefinite aggressive QE is here to stay as long as the need to roll over the debt exists. This view is shared in the latest report, Treasury Bond Bubble Will Not Pop, Fed Will Simply Increase QE. Guru Jim Sinclair offers the conventional-politicized viewpoint that the printing press will just keep running.
“Essentially Sinclair is stating that interest rates will continue to manipulated at an artificially low level by uneconomic buying of T-bonds by the Federal reserve governor typing on a keyboard, and that the pace of QE will keep pace with the pace of the US budget deficit/ funding gap, until which point the US dollar faces a collapse in the confidence of the currency itself.”
Of course, the operative circumstance is when will the collapse of the Dollar currency come? The interest rates charged to purchase T-Bonds will rise, when the Fed decides that the underreported rate of inflation can no longer be concealed from institutional transactions. When the Street panics over, the artificially low levels on Treasury Bonds rates, and refuse further purchases, the international exchange rate of the Dollar will plummet.
The global rush to devalue currencies is in full force and over time will affect the options that the Fed has in their toolbox. This chicken and egg dilemma will test the legal tender equation to its core. While the government can coerce the acceptance of a failing currency to be used as money, the same cannot be inferred about the purchasing power of T-Bonds.
The linkage between the underlying capital used to purchase the government note and the final return received for holding the bond until maturity has a profound disconnect. Selling your T-Bonds is a wise practice even if an imminent bubble is not ready to blow.
The harm to the financial markets from another precipitated house of cards should scare everyone. Expectations have a funny way of influencing financial results more often than sound evaluations. The prospect of a default by the Treasury is embedded, even under synthetically low interest rates. Just how long will this anticipation hold true?
Even the most ardent optimist has to confront the consequences of low interest rates. The macro analysis of ivory tower academics seldom reflects the struggle of ordinary consumers or retirees. One such pinhead is Ben Bernanke. Back on October 1, 2012 at the Economic Club of Indiana, the Federal Reserve Chairman employs sophistry of a major order. Such confused and twisted logic defies common sense and real world finance. Robert Romano writes in the article, More monetary alchemy from Bernanke: Low interest rates help savers.
“Many savers are also homeowners,” said Bernanke, adding, “indeed, a family’s home may be its most important financial asset. Many savers are working, or would like to be. Some savers own businesses, and — through pension funds and 401(k) accounts — they often own stocks and other assets.”
Bernanke explained, “Only a strong economy can create higher asset values and sustainably good returns for savers… [and] [t]he way for the Fed to support a return to a strong economy is by maintaining monetary accommodation, which requires low interest rates for a time.”
He said home values would collapse without Fed support, unemployment would rise, and asset values would plummet and “[s]uch outcomes would ultimately not be good for savers or anyone else.”
So, admittedly, the Fed’s easy money policies do not in actuality directly help savers. But they will increase home values, asset prices, and create jobs for savers, Bernanke claimed. Okay, but is that even true?”
Such deceptive dishonesty that the Fed fosters beneficial monetary measures, which encourage job growth and a vigorous housing market, defies evidence. The saver watches the evaporation of their money, while prices jump at rates far in excess of the official CPI. This is a fact. This construct is the legacy of the intentional 2007 Wall Street meltdown.
The inability of distinguishing between illiquid assets and the need to pay for cost of living expenses must be a trait that only financially – cash flow secure – magicians master. The perception that the masses benefit from central banking driving down and suppressing interest rates to negative levels is patently absurd. Negative Interest Rates and the Impoverishing of America by Michael R. Winther sums up the self-evident.
“Don’t forget that consumers pay income tax on interest earned regardless of whether real interest rates are positive or negative. The result is that many Americans are paying income tax on a negative real interest rate! This discourages savings and investment, but even worse, it steals from our citizens.
Negative real interest rates hurt all savers, but these rates are especially damaging to the elderly and those on fixed incomes. It is no longer possible for senior citizens to live on the interest of their savings and investments. In fact, our negative interest rates result in a situation in which our seniors must rely on the depletion of their principle for all of their living expenses.”
The net effects of an inflationary depression require that privately saved capital must be used to pay for the continued increases in basic costs. It is not just the retired person that is shafted from zeroing out the money market. Anyone who attempts to devise a budget that sets aside a portion of cash flow understands that there is no return on banking funds.
How long will people accept this thief? The options to parking cash in hand with a FDIC insured institution seems worth an examination. However, few alternatives for working class savers exist. Surely, this occurrence is intentional because the real objective of the “New Normal” is to bankrupt Middle America. What other conclusion makes sense?
Designed lowering of our standard of living is visible at every turn. The money-centered banks recapitalized their balance sheets at the expense of the passbook accounts customers.
The recent implementation of approving an extra fee to credit card purchases is outrageous. The NY Daily News reports the example of allowing “MasterCard and Visa credit card users might see a surcharge of up to 4 percent on their receipts. Merchants are allowed to add an extra fee to credit card purchases starting Jan. 27.”
The besieged consumer gets another whammy from a banking system that thrives on charging usurious fees, while paying you near zero on your saving accounts. With the execution of the Bernanke rescue strategy, the prospects of personal or consumer loans are virtually non-existent. In Helicopter Ben speak; “maintaining monetary accommodation” just does not filter down to the common- man.
While the concept of interest often confuses some Christians, Gary North offers a scriptural analysis in Usury, Interest, and Loans: A Brief Summary of Biblical Teaching, which asks:
“If charging interest were not legitimate, why would Jesus have used the example of money-lending as a legitimate way to increase capital? Why would He have attributed to God such words of condemnation for not having lent at interest?”
The tangible injustice is that the saver is especially screwed by the moneychanger system.
When you strip away the banking veil of trickery, what remains is a stash of greed, built on a hoard of distrust and deception. Few financial policies have been more destructive for the depositor than low interest rates. Siphoning off purchasing power is a perfect method to impart a fiscal squeeze, hard to rebound for any depositor. Everyday your cash lingers in money interest limbo is another diminution in your net wealth.
How can a society encourage saving under these circumstances? Apparently, the plan for depleting the economic assets of workers or investors is well underway. The notion that investing is feasible in this environment borders on delusional.
The submissive banking customer needs to take a hard look on continuing their depositing relationship with the commercial saving establishment. The endless gimmicks and get rich schemes that proliferate might seem attractive to desperate people. Yet, when you operate on parallel tracts, separated by a wide gulf of moneymaking returns, the definitive result is that treasure ends up in the accounts of the banksters and favored insiders.
The long-term goal of Communist Red Chinese is to take over the wealth creation resources of the planet. The quasi merger between the authoritarian Maoists and the global capitalists plays out as a sorry act in the Beijing Red Theater. The performance designed to distract and confuse really has the destruction of Western economies as the climax. The sell out of the West, under the skilled dirty hands of Herr Heinz Henry A. Kissinger, is entering the final stages of a planned implosion. Now that the de-industrialization of America as described in the article, Free Trade Created the Chinese Model, has taken placed, the theft of our natural assets is the next to go. The Chinese exploits the use of U.S. Foreign-Trade Zones. A depiction of the function and working of such Foreign-Trade Zones follows:
“Other countries around the world have Free Trade Zones that are often confused with the U.S. Foreign-Trade Zones program. While there are similarities, the FTZ program is very different from other countries’ Free Trade Zone. In a number of “free trade zones” in other countries – particularly those in developing countries – the sole benefit is the avoidance of internal customs duties on products that are re-exported from the Free Trade Zone. Often, the goods are not even allowed to be sold in the country where the Free Trade Zone exists. You often here these zones referred to as “Export Processing Zones”. The U.S. Foreign-Trade Zones program not only allows the sale and importation of merchandise to the U.S. Commerce, but in many cases enables companies to reduce or eliminate duties on products manufactured for domestic consumption. This relief from inverted-tariff benefit is one of the key distinctions between the U.S. Foreign-Trade Zones program and other countries Free Trade Zone programs. Generally Free Trade Zones offer significantly less opportunity for benefits and tariff savings. As previously mentioned, in many cases you must actually export all the merchandise you bring into a Free Trade Zone (if it is a Export Processing Zone. In other cases, importation is allowed, but not manufacturing of merchandise. Under the U.S. FTZ program, companies can obtain FTZ benefits such as, duty exemption on re-exports, duty elimination on waste, scrap, and yield loss, duty exemption on damaged, or nonconforming items, reduction in merchandise processing fees (MPF) and brokerage fees through weekly entry, cash flow savings, and relief from ad valorem tax, and the previously described relief from inverted tariffs.”
Watch the video, Chinese Move Into Foreign Trade Zones On American Land, for an informative discussion on the effects that allow wholesale entry of Red Chinese companies to operate on American soil.
A previous Jerome Corsi’s Red Alert is available on the WND report, CHINA INVADES U.S. WITH ‘FREE-TRADE ZONES’ which documents an additional twist to the economic treason that the political class is foisting on our country.
“A plan being pushed by the Chinese Central Bank would set up “development zones” in the United States that would allow China to “establish Chinese-owned businesses and bring in its citizens to the U.S. to work.” Under the plan, some of the $1.17 trillion that the U.S. owes China would be converted from debt to “equity”. As a result, “China would own U.S. businesses, U.S. infrastructure and U.S. high-value land, all with a U.S. government guarantee against loss.” Does all of this sound far-fetched? Well, it isn’t. In fact, the economic colonization of America is already far more advanced than most Americans would dare to imagine.”
Another Dr. Corsi assertion is outlined in the Market Daily News article; Does China Plan To Establish Chinese Cities And Special Economic Zones All Over America?
“A key argument of Corsi’s book, “America for Sale: Fighting the New World Order, Surviving a Global Depression, and Preserving USA Sovereignty,” is that China will not long continue to subsidize the Obama administration’s trillion-dollar annual federal budget deficits without demanding U.S. assets in return.”
This same news account goes on to document many examples on auctioning off American assets to the Chinese Triad consortium of collectivists. Take the time to review the dirty deeds that passes under the rubric of Free Trade.
The terminal game is as simple as it is devious. China poised to play debt card – for U.S. land states the obvious:
“The basic idea is to turn Asian savings, China’s in particular, into real business interests rather than let them be used to support U.S. over-consumption.”
Chinese cash reserves used to acquire real assets relies upon the “Interoperability Principle”, the ability of diverse systems and organizations to work together. What a way to collaborate for the systematic economic liquidation of domestic property. A country that is debt ridden beyond servicing the obligation is already insolvent. What the Beijing regime is confirming is that U.S. Treasury Bonds are paper promises of default.
The People’s Republic of China wants to own the business enterprises and not the liabilities of the Dollar. The complicity of the banksters that plot the convergence of the world economy under their monitory manipulation clearly understands that fiat currencies are not real assets. Their partnership with the imperial communists is shaping the model for the American continent.
Stripping of real property as a national resource is a key component in the shakedown and impoverishment of the United States. Financing the national debt has a much higher price than paying the interest.
Turning over operative control of the importation ports is not enough for the “Chinese Diaspora”. They want physical possession of the title. Do not be surprised when the money centered banks pass on their ample portfolio of foreclosed property into a Chinese holding company in lieu of T-Bills.
The Foreign-Trade Zones are sentry outposts for the orderly transfer of wealth to the globalist cabal. This process has the full blessing of the criminal political class that masquerades as lawful public officials. America has been sold out to a foreign power that is the brainchild of our domestic traitors.
Fiscal conservatives often are blind when it comes to alternatives to the “so called” commercial banking system. Many conventional Republicans are ignorant or simply carrying the water for the crony capitalist banking establishment. The fractional reserve banking monopoly that operates under the auspices of the privately owned Federal Reserve System, despises any trace of competition. The bondage from debt created money has doomed Main Street to the fate of contrite beggars in search of securing loans. Useful purposes for business financing are not sufficient reason for the qualifying for commercial credit.
Is there an alternative to the Federal Deposit Insurance Corp. and centralized banking dominated by Wall Street investment banksters? Can state chartered commercial banks compete separate from the favoritism shown to the “Not Too Big To Fail” money centered banks? Well, Ellen Hodjson Brown JD, has popularized the subject of the state-owned bank and believes there is a better model for community banking.
“The secret of its success seems to be the state-owned Bank of North Dakota, which was established by the state legislature in 1919 specifically to free farmers and small businessmen from the clutches of out-of-state bankers and railroad men. By law, the state must deposit all its funds in the bank, and the state guarantees its deposits. The bank’s stated mission is to deliver sound financial services that promote agriculture, commerce and industry in North Dakota. The bank operates as a bankers’ bank, partnering with private banks to loan money to farmers, real estate developers, schools and small businesses. It loans money to students (over 184,000 outstanding loans), and it purchases municipal bonds from public institutions.”
The informative video, Bank of North Dakota provides a comprehensive overview, well worth viewing.Such a departure from the normal coordinated federal regulation and Federal Reserve prescribes, gives pause to the plutocrats that despise any departure from the top down banking model that is based upon special treatment for the schemes of investment banking.
Bloomberg News points out the banking industry opposition to the state-own charter in the article, North Dakota’s State-Run Bank Adds Millions to Treasury, Spurs Imitators.
“The U.S. banking industry opposes the idea and is lobbying against it, saying a state-run bank would compete with commercial banks for business and politicize a state’s lending decisions.
“A state-owned bank? Why don’t we just re-label the state capitols the Kremlin?” Camden Fine, president of the Independent Community Bankers of America, a Washington-based trade group that represents more than 5,000 community banks, said in a telephone interview.
“It’s a socialistic idea,” Fine said. “If you get a state-owned bank that is allocating credit, it can slide very quickly into a situation where those in favor get credit and those not in favor don’t get credit.”
How ironic the false claim that a sparsely populated state like, North Dakota could be such a citadel of collectivist enterprise when the titans of cartel-controlled crony capitalism were the financiers of the Russian communist revolution. The new generation of algorithmic traders has no more interest in writing business commercial loans then the banker funded Lenin investment of mercy shown to the Czar.
Even more sardonic is the viewpoint that the only banking monopoly acceptable is the one designated by the barons of usury. The slogan – no small business loans, is their operative policy.
Mother Jones examines what Republicans might call an idiosyncratic bastion of socialism in their interview with Bank of North Dakota’s president; Eric Hardmeyer, How the Nation’s Only State-Owned Bank Became the Envy of Wall Street. Mr. Hardmeyer explains the operation of their system thusly.
“Our funding model, our deposit model is really what is unique as the engine that drives that bank. And that is we are the depository for all state tax collections and fees. And so we have a captive deposit base, we pay a competitive rate to the state treasurer. And I would bet that that would be one of the most difficult things to wrestle away from the private sector—those opportunities to bid on public funds. But that’s only one portion of it. We take those funds and then, really what separates us is that we plow those deposits back into the state of North Dakota in the form of loans. We invest back into the state in economic development type of activities. We grow our state through that mechanism.”
The significance of the North Dakota experiment is that the dominance and control of the State/Capital cabal can be broken. Sensible banking is based upon making loans for productive enterprises, not derivative speculation. The customer of any bank is a person. Financing business growth and development is the core purpose and function of a bank.
The populist underpinnings of the independent method of funding the Bank of North Dakota provide an alternative model for depository transactions. Prosperity for local economies is an integral objective for any community interest bank. Those who profess free market enterprise principles need to adopt practical partner relationships with proponents of state charted banks.
ABC News reports the inconceivable, State-Owned Banks: The Future of Banking?
“Bank of North Dakota officials said that at least 10 states have turned to them for guidance, including some states, like Michigan, hardest hit by the financial crisis. They include California, Florida and Illinois, where a bill to create a state bank already is under consideration by the state legislature.”
Success is the best substitute to the stagnation of Wall Street greed and corporatism. Credit unions and associations provide another option for the depositor to conduct business. Loans are a way of life to most wage earners. Applying with an institution committed to their customer is rare in the era of national banking conglomerates. Trust is the basis of banking and the record of the Bank of North Dakota, compared to Bank America, demonstrates a stark difference. Register your discontent with your money stop doing business with national money-centered banks.
My friend RJ at http://www.topplebush.com/ just sent me a very interesting riddle: “Why are right-wingers always talking about cutting down on government spending and’red tape’ yet never ever try to cut down on military spending? Aren’t the armed forces part of the government too?” Ya got me stumped there.
Here’s another riddle I can’t seem to solve: How come us salt-of-the-earth American types who protest against all the banksters’ outrageous crimes get thrown in jail, while the criminals themselves are given ”get out of jail free” cards like it was Christmas? Except, of course, for Martha Stewart.
More riddles: “Why is it okay for Al Qaeda to be the good guys in Syria and Libya — but are the bad guys in Lower Manhattan?” I’m all confused.
Why is it okay to tax middle-income Americans for an arm and a leg but not okay to tax rich people? “I wonder.” https://www.youtube.com/watch?
How come everybody bitches and moans about the obesity epidemic and the cancer epidemic and the heart attack epidemic and the autism epidemic and the bi-polar epidemic but still live on junk food, never exercise and watch too much TV? And still have enough balls left to complain about single-payer healthcare? Can someone please explain this? http://www.indiegogo.com/
How come American taxpayers get to pay for the costs of demolishing Christian and Muslim homes in East Jerusalem yet can’t get any tax relief when our own homes are being demolished in Detroit and Cincinnati?
How come statistics (and election results and Fox News) show that Americans are definitely being dumbed down these days, but no one wants to spend any money on improving American kindergartens — let alone on upgrading our colleges. What ever happened to Sputnik?
Why do people fear climate change so much but still happily drive their gas-hogs around like there’s no tomorrow?
How come I can’t resist playing free-cell solitaire by the hour when I should be out doing the laundry and saving the world?
How can anybody in their right mind vote for any candidate that spends millions of dollars on getting elected? You would think that if a politician had that kind of money he (or she) might want to just retire to the Bahamas. Or give it to us.
“Why does America need to own approximately 800 military bases throughout the ’Free World’?” Hell, if the freaking world is all that free, surely it doesn’t need all those American soldiers to keep it in line? And why does all this so-called freedom always end up costing us taxpayers trillions of dollars as well?
And how come most of “our” jobs are now located in places like China, Haiti and Burma? Isn’t that a really long commute?
And please explain the riddle of how all the top American industrial jobs here at home are now mostly being performed by prison labor? While the 1% sucks down Oxycontin and Prozac legally and the rest of us all get busted for using medical marijuana — just to make sure they have a large enough prison labor supply in jails?
And why are American labor unions that help the working class being given such a bum rap, but when Wall Street and War Street form unions that destroy the fabric of America’s economy, it’s called “Capitalism” and “Showing Initiative” – not welfare for the rich?
And why are the RepubliDems always saying that the fiscal cliff is a bad thing? If it is spozed to be such a terrible disaster, then why in the freak did they create it in the first place?
And why does 2013 still feel so much like 2012?
Hold your breath, the race to the bottom is ready to escalate. The consequence of the corporate consumerism economy has reached the tipping point. The old rules that mainstream spending will dig the way back to prosperity are permanently dead. The one sure implication that is indisputable is that taxes are set to rise at unprecedented levels. With Obamacare revenue obligations coming into effect, the latest phase of centralized medical socialism spreads like a virus. Under such circumstances, how can the patient regain their health?
The Rino Republicans have proven again their slimy deceit, as demonstrated inHighlights of Senate bill averting ‘fiscal cliff’. The bipartisan house is poised to make another deal with the devil. Such legislation that refuses to enact meaningful and significant spending cuts exemplifies the depth of the efforts to dismantle the economic wellbeing of the average taxpayer.
The only beneficiary out of the tax bill from hell will be the corporate/state axis. By setting aside the automatic sequestration program reductions for a typical irresponsible useless promise the McConnell, Biden reach tentative deal on sequester, con insults the intelligence of any rational taxpayer.
“The negotiating parties reached an agreement to delay it by two months with some spending cuts to offset the delay.”
Without a serious reduction in the rate of growth, much less a real shrinking in federal expenditures, deficit spending will shoot up higher than an addicted junkie. Examine the mess.
“According to the Congressional Budget Office, the last-minute fiscal cliff deal reached by congressional leaders and President Barack Obama cuts only $15 billion in spending while increasing tax revenues by $620 billion—a 41:1 ratio of tax increases to spending cuts.”
This factor alone provides ample evidence that the economy will sustain another substantial hit. Treading water is no way to save yourself when you are swimming inside a whirlpool of spiraling intensity or diving into a pool drained of water.
2013 is likely to be another generous year for the financial vultures. Mergers and acquisitions may well come back ‘with a vengeance’, as international corporatists push hard for even greater consolidation. The suspect “Free Trade” cabal has enormous support and protection from the selected public officials that administer a plutocrat economy. Even under the distractions of higher taxes on the super affluent, their wealth will grow dramatically, as public subsistence becomes more dependent on government handouts.
Business is very good for the governing bureaucrat. This New Year provides immense promises for government expansion. The crowding out of the credit markets for private business will continue as an inevitable result of public sector borrowing hitting new highs.
Private firms will struggle as disposable funds become rarer. The consumer has shown remarkable restrains since the 2008 meltdown, but the internal built up demand for lifestyle replacement standards will not generate the economic activity that so many financial experts tout.
Prospects of an intensified reoccurrence of the persistent recession are far more likely. The sustainability of Federal Reserve monetization has limits. The crucial test of this desperate repurchase of debt created obligations will play out in the bond market.
Another down grade of the U.S. credit status over the next political battle of raising the borrowing limit is a major concern. The potential free fall of the Dollar and international abandonment of the reserve currency standing is probably the greatest risk to the economy.
Any credit-based economy is at the mercy of the central banksters. Disregarding the phony political rhetoric of the governance ideologues, the basic constructs of economic facts cannot be separated from the harsh reality of a credit crunch.
Inflation is embedded in the under reported consumer pricing statistics. Grocery prices will rise, while food stamps proliferate. This SNAP economy is a telltale gauge of the wellness of the basic consumer. How can anyone believe that the prospects for a healthy economy are in the cards for 2013?
The one unassailable conclusion that is born out with every turn of the financial page is that the rich become richer, while the middle class struggles even harder to make ends meet.
Many will fall into the trap that rich people are the cause of the problem. Such social envy misses a proper perspective on wealth creation. The real reason why the economy scrambles to democratize medium affluence is that the monopolists of politically protected conglomerates suppress initiative and originative employment entrepreneurial enterprises.
The entire political and tax system operates to diminish the chances of small business to compete against the virtual unrestricted capital access of major public companies. 2013 will be a watershed year that regretfully will see the systemic demise of privately held endeavors.
The replacement of free enterprise, with state/capitalism has produced a fascist economy.
When the establishment operates under the favoritism principle, the inevitable result is that crony capitalists dig the graves of independent business operators, with publicly funded shovels. How under this formula can the ordinary citizen expect to prosper when the supplanting of individual intuitive is intentionally marginalized?
The financial markets reflect uncertainty in the face of record corporate receipts. The balance sheets of companies have been rebuilt from the depth of the housing implosion, with much assistance from public indebtedness. The globalist banks practice distress acquisitions, deliberately designed to solidify interdependency at the price of personal autonomy.
With this acceleration of financial austerity for the average citizen, the gap between the corporate economy and the main street market grows exponentially. Whatever degree of cash flow that the country enjoys in this New Year, the price that will be paid to stretch out one last celebration of former fortune, will inescapably result in national poverty.
Just blaming the one percent ignores the institutional corruption that perpetrates the war against the middle class. Hoping for a thriving 2013 dismisses the abject State of the Nation. The only relevant question unanswered is whether the beleaguered taxpayer will revolt or just swallow another dose of Obama collectivism.
If there was any lingering doubt about the supremacy of the internationalist banker over the canons of law, the latest HSBC exemption from criminal charges proves that the real masters of the planet are the criminal banksters. If this settlement was an abnormality and not the rule, one might argue the expediency for pragmatism, while deployable, is necessary. Unfortunately, for the financial elites, the facts tell a very different story.
The Associated Press reports in Government outlines HSBC ties to drug money laundering.
“In court papers filed in federal court in Brooklyn, the federal government said the case against HSBC is related to the laundering of proceeds from narcotics trafficking via the Black Market Peso Exchange, a method by which money launderers convert cash narcotics dollars into Colombian pesos by buying and re-selling wholesale consumer goods.
“The lack of an effective anti-money laundering program at HSBC Mexico and HSBC Bank USA, N.A. contributed to the conduct charged” in the money-laundering case against narcotics traffickers, Justice Department prosecutors said in court papers.”
Published in the Globe and Mail account, HSBC failed to control drug-money laundering, Senate finds, indicates the political nature of this investigation.
“A year-long investigation by a Senate committee uncovered that HSBC acted as a conduit for drug money, disguised the sources of funds to evade U.S. sanctions against Iran, and included among its clients businesses with alleged ties to terrorism. HSBC’s internal culture has been “pervasively polluted for a long time,” said Carl Levin, a senator from Michigan, who helped lead the investigation.”
Instead of prosecuting criminal charges, the U.S. Department of Justice slaps a fine and demands stricter but inadequate regulations. Some of the details are provided inBanks on alert as regulators step up pressure on HSBC. The facade of accountability is insulting. Ian Fraser presents a correct assessment. HSBC’s $1.9 Billion Settlement Sets (Another) Dangerous Precedent.
“Sending executives to prison has far more deterrent value that bringing a company down, since many will argue that employees who had nothing to do with the criminal activity would also be harmed.”
The muckraker Matt Taibbi gives a sober overview in a video that deserves watching,After Laundering $800 Million in Drug Money. His observations parallel that of Mr. Fraser.
“You can do real time in jail in America for all kinds of ridiculous offenses,”Taibbi says. “Here we have a bank that laundered $800 million of drug money, and they can’t find a way to put anybody in jail for that. That sends an incredible message, not just to the financial sector but to everybody. It’s an obvious, clear double standard, where one set of people gets to break the rules as much as they want and another set of people can’t break any rules at all without going to jail.”
The risk of going to jail for managing the enormous sums from the illicit drug trade is small, when governments are beholding for their contrived power to the banking cabals, which control the apparatus of fiat money.
In the seminal study by John Hoefle coming out of the Executive Intelligence Research,HSBC: Flagship Bank Of Britain’s Dope, Inc., the historic composition of dishonest business dealings that transcend even shady banking is documented.
“It should come as no surprise that British banking giant HSBC was caught laundering money for drug cartels and terrorist groups. HSBC, as we shall show, is the kingpin bank of the global drug trade, a bank which, since its founding in 1865, has been devoted to financing drug crops and laundering the proceeds. HSBC is, in fact, one of the key controlling institutions of the global illicit drug cartel we call Dope, Inc.
If you think that is an outlandish claim, consider the fact that EIR, through its book Dope, Inc., and in its affilicated War on Drugs magazine, published in the early 1980s by the National Anti-Drug Coalition, have made this charge for over 30 years, and have never been sued or challenged by the bank.”
Once a drug launderer it is an easy step to institutionalized money laundering.
Now watch the interview with Jeffrey Robinson on HSBC fine for money-laundering. Mr. Robinson’s appraisal rings similar with that of Fraser and Taibbi. This picture becomes clearer as more information becomes available. Even the establishment journal The Economist must conclude that Too big to jail is the reality in the world of international banking.
“The agreements put an end to uncertainty over the banks’ ability to operate within America, a key link in their global networks; their share prices both rose on the day the fines were announced. And the penalties are, in effect, levied on shareholders; not one corporate employee faces charges (although HSBC, at least, has clawed back payments to those responsible). Indeed, at a news conference this week Lanny Breuer, head of the Justice Department’s criminal division, suggested that an outright prosecution of HSBC was considered and rejected because of how damaging the impact could be on the bank’s viability, and thus on jobs and the American economy. Has a handful of banks become not too big to fail, but too big to jail?”
The significance of rejecting criminal pursuance of HSBC, and the long list of other mega banks is Prima Facie validation that the global economy operates under the self-serving guidance and often the practical permission of the largest international banking organizations.
The pattern of selective prosecution by the Injustice Department is no revelation, when the war on drugs is so profitable for the diabolic alliances that run the drug trade. Banking and government by acquiesce is a historic construct that hide behinds the law, while dealing in bribes, payoffs and hidden offshore accounts. Drug trafficking continues to prosper because government needs the threat of an evil enemy, while the agencies charged with its eradication are often corrupt game players.
The HSBC’s of this world are dirty participants in the real drug triangle; namely, drug traffickers, crooked government elements and complicit moneychangers.
While our government still happily continues to peel big bucks off its wad and shower it down on Wall Street, big business and the “war” machine like it was Christmas for banksters and war-mongers all year long whether they need it or not, all too many hard-working tax-paying victims of Hurricane Sandy out in Staten Island and Rockaway are still getting no help at all. Zero. Ziltch. Nada.
Nothing is currently being peeled off our government’s endless roll of big bucks for them.
Last week I was riding in a Muni bus over in San Francisco (on my way back from an audition to play a bored office worker in a student film) and on the bus was a very delightful older couple who seemed to have absolutely no cares.
“Where are you from?” I asked them.
“Rockaway,” they replied hesitantly. Rockaway? OMG! Not THAT Rockaway? “Yeah, that’s the one. And, yes, we did live through Hurricane Sandy and, yes, our home was badly damaged and almost destroyed.” http://www.phillipvan.com/
“So what the freak are you doing out here?”
“Having fun! After having survived a personal visit from Sandy, we realized that life is just too short not to enjoy it. So we came out here to have fun.”
“But did you at least get any help from FEMA?” I asked, figuring that after our government has spent trillions on bailing out Wall Street (where no one hardly ever pays taxes and pretty much lives on Welfare for the Wealthy), then the least that our government could do is send a measly few billion bucks off to bail out afflicted taxpayers in Rockaway. http://www.phillipvan.com/
“Have we received any help from FEMA? In a word? No.”
“Not even anything?” No.
“It’s been a whole month after Sandy and parts of Rockaway still don’t even have electricity now. Or places for people to go.”
“But did FEMA give you any money to help you out?” No.
“We got nothing but an avalanche of paperwork.” They didn’t even get bottled water. “A relative in Wisconsin finally ended up bringing us some.” And they can’t go back to their home because the wife has asthma and their house is a hell-hole of black mold right now. Ah, black mold, the bane of asthma sufferers’ existence.
“We just took out a 60-day insurance policy from Lloyd’s of London on our stuff and left.”
I tried to grill the happy couple for more information on what is happening in Rockaway right now — and right in the middle of the Christmas season too — but they weren’t interested in being reminded. All they wanted to do was forget their worst nightmare and celebrate that they, unlike some of their neighbors, were still alive and had survived one of the fiercest mega-storms ever.
And as our bus drove on past Chinatown, the happy couple soon had all us passengers singing “Merry Christmas” — in Chinese. Brave souls. I almost cried.
Let no man or woman dare speak of a shadow government. The crony corruptocrats that make up the ruling elites of the world must maintain the illusion, that elected governments are based upon willful consent and have the legitimate authority to establish rules of conduct that their citizen are obligated to obey. For those regimes that maintain their grip of power by undemocratic means, the apologists for the international community give a wide berth of acceptance in order to maintain the appearance of individual national sovereignty.
In the essay, There Is No Conspiracy – Only Official Policy provides a study in power politics when a banana republic dares defy the moneychangers.
“The lesson for world leaders is you don’t cross the masters of power. But for Americans it is that a world run by the IMF never benefits us, the people. The enactment of the FTAA is just one more element in the grand scheme of global rule. There is no need to dapple in extraordinary theories; it is all in the open for everyone to see. The policy is clear – the nations of the world are mere colonies to the interests of the ruling elites. Citizens of countries and their elected leaders are mere subjects of the international community. Not exactly the revered Republic that we all owe allegiance, is it?”
The pattern of retribution against any tin horn leaders that refuse to succumb to the boot of the World Bank or the IMF is in plain sight. Just ask the mutilated and deceased Muhammad al-Gaddafi for testimony of the enforcement treatment one can expect for opposing the world financial plutocracy. While the imperium empire of drone warfare, targets governments that oppose the global hegemony, the behind the screens discord among varied vying factions often goes unnoticed.
The Constitution Society sees the nature of The Shadow Government differently from most popular interpretations of the power elite.
Some of the best indications that the Shadow Government is not centered in the financial sector are the things it has to do to finance itself. Shadow Government is expensive. We can identify the main sources of its revenue:
(1) Black budgets. This is the core of its operations, but is not enough to secure its control over the country and the world.
(2) Drug trade. It has seized control of the major part of the illegal traffic in addictive substances, in part by using the organs of law enforcement to eliminate competition, and by gaining control of the money and the ways it gets re-introduced into the economy.
(3) Raiding financial institutions. This is what was done with the S&Ls, and is being done, more slowly, with the banks. It involves several aspects: diversion of the funds, seizure of smaller institutions by a few large ones under Shadow Government control, with the seizure financed by the taxpayers, and acquisition under distressed prices of the assets of those institutions, many of which are well-positioned business enterprises that give the Shadow Government both control of the key enterprises in most business sectors and sources of revenue. The Savings & Loan raid was used to finance a major expansion of the Shadow Government. However, it is not a method that can be repeated.
(4) Public authorities. These are quasi-governmental enterprises that control substantial assets, often taxpayer-subsidized, without effective accountability. They include housing, port, energy, water, transportation, and educational authorities. To this might also be added various utilities, and both public and publicly-regulated private monopolies, like local telephone and cable companies. They are also a major source of government contracts.
(5) Government contracts. Major source of diverted funds, but must often be shared with others involved.
(6) Arms trade. Another major source of funds, both direct and diverted. But requires payoffs to local officials.
What this viewpoint ignores is that the tactics of subversive operations frequently demand undercover execution and plausible deniability. The methods of covert operations conducted by black bag operatives avoid the question; who really controls the intelligence agencies? It is a fatal error to reject the prevalent role of the money center institutions and central banks in the unified network of financial control and global integration.
A more perceptive breakdown by Richard Boylan Ph.D. offers a structural analysis of the secret “shadow” government.
In the Shadow Government five branches may be identified. These branches are: the Executive Branch, the Intelligence Branch, the War Department, the Weapons Industry Branch, and the Financial Department.
An analysis of the overall purposes of these five branches suggests that the overall purpose of the Shadow Government is to exercise covert control by:
1. Collecting comprehensive institutional and personal information
2. By establishing national and international policy independently of the established Government
3. By developing high-tech arms and equipment, and, with these, establishing small, specialized, highly mobile, elite military units to effect these covert policies, when need arises, without having to rely on the official (and “unreliable”) Armed Services, (whose subservience to the Shadow Government is reasonably suspect)
4. By developing an armed capability to repel any threat to the status quo, (including the uncertain ontological, social, and economic impacts of any revelation of the reality of UFO and extraterrestrial presence) through the development of a Star Wars/BMDO ground and space-based surveillance and SDI weapons network
5. By denying information compromising to the Shadow Government from all those outside “need-to-know” policy-making levels
6. By exercising control on the money supply, availability of credit, and the worth of money, through policy decisions made outside of the official Government
The essential political planetary threat that faces humanity is rooted in the globalist drive to accelerate their NWO plans for a neo-colonial feudal hierarchy. The New World Order Feudal Enslavement System outlines the plot. However, the elements that comprise the surreptitious functions and assignments of shadow government missions need to maintain a clandestine secrecy to be effective. Stealth practices often foster perpetual public ignorance.
Contrast this with maybe the best example of the most visible globalist institution that is used by the shadow elites as their private administration tool for worldwide compliance. The John Birch video U.N. and the United States | John F. McManuspresents the argument that Americanism is incompatible with the international community of collectivists that the United Nations is based upon.
The interminable public feuding in General Assembly sessions are sheer spectacle for the uninformed. The real dirty work is done behind the scenes through coerced implementation of programs like Agenda 21.The best way to come out of the shadows is to strip back the curtain. Effectiveness dictates that the banksters and corporatists use the dark art of intrigue and subterfuge to manipulate the systems of governance, which they put in place, to serve their own interests.
The destruction of the unique American experiment falls upon the treason of the ruling class. Human Depravity, James Madison, and The Founding Fathers explains the nature of the existential internal threat that destroyed the essence of the old Republic. Madison wrote:
“If we were all like angels, blameless and freely able to exercise perfect control, we would not need rules or regulations. Why, then, do we have so many laws and statutes? Because of man’s wickedness, for he is constantly overflowing with evil; this is why a remedy is required.”
When the shadow government usurps the stated original limited authorities and separations of powers, the citizens of the country are relegated to a menu entrée on the feasting table of the power elites. The globalism agenda is the objective of the shadow government. Participates need not be spooks or machinates. Those who influence the operations of the sub-rosa establishment may wear the garb of Illuminati or use the signals of secret societies, but most are pure button down internationalists.
The populace is viewed as useless eaters to the elites, who labor to drive a wedge between government and the ordinary man. The privileged oligarchs see themselves as the ennobled in the entitlement enslavement society of their creation. Keeping the masses dependent until the ultimate elimination of dissenters is the objective.
The specter of the shadow government has always been part of the inner conflict for national integrity. The difference at this time is that it is all pervasive. The United States has become a global empire designed to impose an internationalist monitory yoke around the neck of subservient serfs.
The money machine of shadow banking practiced by the Bank for International Settlements on Big Banks is a prime component of the definitive ruling elite comradeship. Governments are no longer sovereign entities. They function as subsidiaries of the global satanic New World Order conglomerate. The crony corruptocrats bury deep their crimes and give new meaning to being above the law. Without a widespread public awakening, the forces of wickedness will triumph.
Less we forget . . . “For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places.” Ephesians 6:12
How many times do you have to hear that going off the financial cliff is a failure of controlling spending as opposed to a lack of revenue? Systemic deficits exist because government is too big, not because taxpayers are not paying their fair share. This assessment is sacrilege to the Democratic Socialists who make up both political parties. The “so called” debate over cutting back the growth in budgetary increases is void of any real substance or focus. The basic reason that the federal government leviathan instills mass hysteria and fear about cutting back on social welfare programs is that the system preaches a false egalitarian and utopia deliverance from reality.
Contrast this dependency viewpoint with the foundations of America First populism. Thomas Jefferson presents the basis for a healthy economy. “Agriculture, manufactures, commerce, and navigation, the four pillars of our prosperity, are the most thriving when left most free to individual enterprise.” The National Center for Constitutional Studies summarizes.
Such a free market economy was, to them, the natural result of liberty, carried out in the economic dimension of life. Their philosophy tended to enlarge individual freedom – not to restrict or diminish the individual’s right to make choices and to succeed or fail based on those choices. The economic role of their Constitutional government was simply to secure rights and encourage commerce. Through the Constitution, they granted their government some very limited powers to:
¦assure that the ground rules were fair (a fixed standard of weights and measures)
¦encourage initiative and inventiveness (copyright and patent protection laws)
¦provide a system of sound currency with an established value (gold and silver coin)
¦enforce free trade (free from interfering special interests)
¦protect individuals from the harmful acts of others
The big government legacy from the New Deal destroyed the last vestige of a constitutional central government. A recent illustration of the institutional attitude for the entitlement mentality comes out of that shining example of democratic community; namely, Detroit Michigan. FoxDetroit video and report in We voted for you, now bail us out tells it all.
“City Council member JoAnn Watson said Tuesday the citizens support of Obama in last month’s election was enough reason for the president to bailout the struggling the city. (Click the video player to listen)
“Our people in an overwhelming way supported the re-election of this president and there ought to be a quid pro quo and you ought to exercise leadership on that,” said Watson. “Of course, not just that, but why not?”
Detroit’s former prosperity and manufacturing dominance rose out of the genius of Henry Ford and the companies that grew out of the auto industry. Now, Detroit teetering on the brink of bankruptcy, looks more like a Beirut war zone landscape than the affluence of Gross Point.
“No city Detroit’s size has ever gone through federal bankruptcy, and analysts say the experience could easily have negative effects statewide, from Michigan’s image to its bond rating.”Public officials like JoAnn Watson typify the poverty victimhood constituency. The Democratic Socialists of America is very clear on their vision for the country.
“Democratic Socialists believe that both the economy and society should be run democratically—to meet public needs, not to make profits for a few. To achieve a more just society, many structures of our government and economy must be radically transformed through greater economic and social democracy so that ordinary Americans can participate in the many decisions that affect our lives.”
With each passing administration, the federal government exerts more central planning and economic regulations. The middle class is under an unprecedented onslaught from bureaucrats that expand federal dependency programs that the Watson’s of this world demand as claims for quid pro quo votes. The earning class is systematically being impoverished for the benefit of crony capitalists that the Democratic Socialists assail. However, their alternative is to grow central government even larger.
“Bring home the bacon” to satisfy JoAnn Watson just puts a coat of paint on a dilapidated ghetto of a failed benefit and dependency Motown community. Her mindset has greatly contributed to the State laying groundwork for managed bankruptcy for Detroit. A step in the right direction for Michigan is the Right-to-work bills pass in Lansing.
True America First populism recognizes that an all powerful and intrusive federal government destroys not only personal liberty, but drastically diminishes economic viability for producing and working individuals. Without the productivity of legitimate commerce, no ceiling on taxes can generate the funds to raise the underclass out of poverty.
Genuine traditional populism is not progressive. While being anti corporatist, the heritage of honest free enterprise and the merchant economy is defended as the alternative to the democratic socialist corporate/state. Yet the like of Chip Berlet and Matthew N. Lyons condemn Right-Wing Populism in America.
“One of the staples of repressive and right-wing populist ideology has been producerism, a doctrine that champions the so-called producers in society against both “unproductive” elites and subordinate groups defined as lazy or immoral.”
This criticism of producerism is disingenuous because of the implicit bias that progress ideologues have in the superiority of their democratic socialization mission. The inbred Marxist, contaminant much needed reform activism that America First populism offers to those who understand that a real market economy has the best prospects, for the greatest gains, for the most people.
Earning a return on labor, ingenuity and innovation is the essence of noble work. The common enemy of all non-establishment political persuasions is the debt created fake money system under the Federal Reserve. Without an adequate understanding of the impossibility of taxing yourself into wealth, the democratic socialist just sinks deeper into the debt hole of central bankers.
Deficit spending is inevitable, when the U.S. Treasury borrows funds at interest, from the Federal Reserve to create fiat money. Authentic populism must be based upon a limited federal government, with a separation of shared powers, among sovereign states and local jurisdictions.
The anxiety of a federal government meltdown coming on January 1, 2013 should be no surprise for that same Democratic Socialists of America, in What is the fiscal cliff?
“An inflammatory term used by corporate elites to resist paying higher taxes and to allow them to keep offshoring jobs. Rather than prioritizing job creation and economic recovery as the road to long-term fiscal health, these advocates of austerity are using misguided hysteria about the federal debt level to further drive down the living standards of working people, the poor and the elderly. A more accurate term for the “fiscal cliff” would be “fiscal fake-out.”
Apprehension of the corporatist playbook does not necessarily translate into a workable solution, when the DSA advocates more money to feed the government that serves only the globalist elites.
Even the neoconservative flagship, the Weekly Standard feels the need to chime in their counterfeit conservative message in, No ‘Drama’ Obama–Wants to Raise ‘Debt Limit Without Drama or Delay’.
Republicans fighting the debt limit last go around, according to Reuters, is the reason America’s credit was downgraded:
It was the reluctance of congressional Republicans to agree to such an increase in 2011 without deep spending cuts that brought the nation to the brink of default. The result was a historic lowering of the U.S. credit rating and a setback to the recovery from a recession that ended in 2009.
The statutory ceiling on U.S. Treasury borrowing is $16.4 trillion. The nation is expected to hit the legal limit near the year’s end, although it can tap emergency measures to stave off a default and keep the government running into early 2013.
No Virginia, the real reason for the inevitable credit downgrading is that financing budget deficits with devalued dollars demands a drastic rise in interest rates. All sincere citizens must acknowledge that the Obama administration is committed to destroy Jefferson’s vision for a restrictive federal government. Washington’s spending problem is self-evident, but for the democratic socialist, the growth of central governance is paramount.
Barack Hussein Obama quoted in Yahoo Finance demonstrates the arrogance of an out of control dictator.
“If Congress in any way suggests that they’re going to tie negotiations to debt ceiling votes and take us to the brink of default once again as part of a budget negotiation…I will not play that game,” he said. “Because we’ve got to break that habit before it starts.”
Alas, America First populism exponents recognize the absurdity of surrendering constitutional Congressional control over the federal budget, in favor of an imperial tyrant.
“A person can’t be a real conservative if he rejects the primary populist message. The government is answerable to the people . . . The responsibility of the individual is to become a knowledgeable and a capable citizen. That means that pledges for a free lunch must be rejected as just another swindle dressed in a pretty package. The performance seldom matches the rhetoric and never attains compatibility with basic conservative principles. Our test is clear; if it harms individual liberty, it can’t be conservatism.”
Traditional populism realizes that the national debt must be repudiated because the criminal central bankers, the Jackals of Jekyll Island, have been running a banksters scam on all Americans. The fundamental difference between democratic socialists and America First populists is their standpoint on central government tyranny.