Here we go again.
Last week, the country’s biggest mortgage lenders scored a couple of key victories that will allow them to ease lending standards, crank out more toxic assets, and inflate another housing bubble. Here’s what’s going on.
On Monday, the head of the Federal Housing Finance Agency (FHFA), Mel Watt, announced that Fannie and Freddie would slash the minimum down-payment requirement on mortgages from 5 percent to 3 percent while making loans more available to people with spotty credit. If this all sounds hauntingly familiar, it should. It was less than 7 years ago that shoddy lending practices blew up the financial system precipitating the deepest slump since the Great Depression. Now Watt wants to repeat that catastrophe by pumping up another credit bubble. Here’s the story from the Washington Post:
“When it comes to taking out a mortgage, two factors can stand in the way: the price of the mortgage,…and the borrower’s credit profile.”
On Monday, the head of the agency that oversees the mortgage giants Fannie Mae and Freddie Mac outlined … how he plans to make it easier for borrowers on both fronts. Mel Watt, director of the Federal Housing Finance Agency, did not give exact timing on the initiatives. But most of them are designed to encourage the industry to extend mortgages to a broader swath of borrowers.
Here’s what Watt said about his plans in a speech at the Mortgage Bankers Association annual convention in Las Vegas:
Saving enough money for a downpayment is often cited as the toughest hurdle for first-time buyers in particular. Watt said that Fannie and Freddie are working to develop “sensible and responsible” guidelines that will allow them to buy mortgages with down payments as low as 3 percent, instead of the 5 percent minimum that both institutions currently require.”
Does Watt really want to “encourage the industry to extend mortgages to a broader swath of borrowers” or is this just another scam to enrich bankers at the expense of the public? It might be worth noting at this point that Watt’s political history casts doubt on his real objectives. According to Open Secrets, among the Top 20 contributors to Watt’s 2009-2010 campaign were Goldman Sachs, Bank of America, Citigroup Inc., Bank of New York Mellon, American bankers Association, US Bancorp, and The National Association of Realtors. (“Top 20 Contributors, 2009-2010“, Open Secrets)
Man oh man, this guy’s got all of Wall Street rooting for him. Why is that, I wonder? Is it because he’s faithfully executing his office and defending the public’s interests or is it because he’s a reliable stooge who brings home the bacon for fatcat bankers and their brood?
This is such a farce, isn’t it? I mean, c’mon, do you really think that the big banks make political contributions out of the kindness of their heart or because they want something in return? And do you really think that a guy who is supported by Goldman Sachs has your “best interests” in mind? Don’t make me laugh.
The reason that Obama picked Watt was because he knew he could be trusted to do whatever Wall Street wanted, and that’s precisely what he’s doing. Smaller down payments and looser underwriting are just the beginning; teaser rates, balloon payments, and liars loans are bound to follow. In fact, there’s a funny story about credit scores in the Washington Post that explains what’s really going on behind the scenes. See if you can figure it out:
“Most housing advocates agree that a bigger bang for the buck would come from having lenders lower the unusually high credit scores that they’re now demanding from borrowers.
After the housing market tanked, Fannie and Freddie forced the industry to buy back billions of dollars in loans. In a bid to protect themselves from further financial penalties, lenders reacted by imposing credit scores that exceed what Fannie and Freddie require. Housing experts say the push to hold lenders accountable for loose lending practices of the past steered the industry toward the highest-quality borrowers, undermining the mission of Fannie and Freddie to serve the broader population, including low- to moderate- income borrowers.
Today, the average credit score on a loan backed by Fannie and Freddie is close to 745, versus about 710 in the early 2000s, according to Moody’s Analytics. And lenders say they won’t ease up until the government clarifies rules that dictate when Fannie and Freddie can take action against them.” (Washington Post)
Can you see what’s going on? The banks have been requiring higher credit scores than Fannie or Freddie.
But why? After all, the banks are in the lending business, so the more loans they issue the more money they make, right?
Right. But the banks don’t care about the short-term dough. They’d rather withhold credit and slow the economy in order to blackmail the government into doing what they want.
And what do they want?
They want looser regulations and they want to know that Fannie and Freddie aren’t going to demand their money back (“put backs”) when they sell them crappy mortgages that won’t get repaid. You see, the banks figure that once they’ve off-loaded a loan to Fannie and Freddie, their job is done. So, if the mortgage blows up two months later, they don’t think they should have to pay for it. They want the taxpayer to pay for it. That’s what they’ve been whining about for the last 5 years. And that’s what Watt is trying to fix for them. Here’s the story from Dave Dayen:
“Watt signaled to mortgage bankers that they can loosen their underwriting standards, and that Fannie and Freddie will purchase the loans anyway, without much recourse if they turn sour. The lending industry welcomed the announcement as a way to ease uncertainty and boost home purchases, a key indicator for the economy. But it’s actually a surrender to the incorrect idea that expanding risky lending can create economic growth.
Watt’s remarks come amid a concerted effort by the mortgage industry to roll back regulations meant to prevent the type of housing market that nearly obliterated the economy in 2008. Bankers have complained to the media that the oppressive hand of government prevents them from lending to anyone with less-than-perfect credit. Average borrower credit scores are historically high, and lenders make even eligible borrowers jump through enough hoops to garner publicity. Why, even Ben Bernanke can’t get a refinance done! (Actually, he could, and fairly easily, but the anecdote serves the industry’s argument.)
(“The Mortgage Industry Is Strangling the Housing Market and Blaming the Government“, Dave Dayen, The New Republic)
Can you see what a fraud this is? 6 years have passed since Lehman crashed and the scum-sucking bankers are still fighting tooth-and-nail to unwind the meager provisions that have been put in place to avoid another system-shattering disaster. It’s crazy. These guys should all be in Gitmo pounding rocks and instead they’re setting the regulatory agenda. Explain that to me? And this whole thing about blackmailing the government because they don’t want to be held responsible for the bad mortgages they sold to the GSE’s is particularly irritating. Here’s more from Dave Dayen:
“After the housing market tanked, Fannie and Freddie forced the industry to buy back billions of dollars in loans. In a bid to protect themselves from further financial penalties, lenders reacted by imposing credit scores that exceed what Fannie and Freddie require. ….And lenders say they won’t ease up until the government clarifies rules that dictate when Fannie and Freddie can take action against them.”
So the industry has engaged in an insidious tactic: tightening lending well beyond required standards, and then claiming the GSEs make it impossible for them to do business. For example, Fannie and Freddie require a minimum 680 credit score to purchase most loans, but lenders are setting their targets at 740. They are rejecting eligible borrowers….so they can profit much more from a regulation-free zone down the line.
So, I ask you, dear reader; is that blackmail or is it blackmail?
And what does Watt mean when he talks about “developing sensible and responsible guidelines’ that will allow them (borrowers) to buy mortgages with down payments as low as 3 percent”?
What a joke. Using traditional underwriting standards, (the likes of which had been used for the entire post-war period until we handed the system over to the banks) a lender would require a 10 or 20 percent down, decent credit scores, and a job. The only reason Watt wants to wave those requirements is so the banks can fire-up the old credit engine and dump more crap-ass mortgages on Uncle Sam. That’s the whole thing in a nutshell. It’s infuriating!
Let me fill you in on a little secret: Down payments matter! In fact, people who put more down on a home (who have “more skin in the game”) are much less likely to default. According to David Battany, executive vice president of PennyMac, “there is a strong correlation between down payments to mortgage default. The risk of default almost doubles with every 1%.”
Economist Dean Baker says the same thing in a recent blog post:
“The delinquency rate, which closely follows the default rate, is several times higher for people who put 5 percent or less down on a house than for people who put 20 percent or more down.
Contrary to what some folks seem to believe, getting moderate income people into a home that they subsequently lose to foreclosure or a distressed sale is not an effective way for them to build wealth, even if it does help build the wealth of the banks.”
(“Low Down Payment Mortgages Have Much Higher Default Rates“, Dean Baker, CEPR)
Now take a look at this chart from Dr. Housing Bubble which helps to illustrate the dangers of low down payments in terms of increased delinquencies:
Data on mortgage delinquencies by downpayment. Source: Felix Salmon
“When the mortgage industry starts complaining about the 14 million people who would be denied the chance to buy a qualified mortgage if they don’t have a 5% downpayment, it’s worth remembering that qualified mortgages for people who don’t have a 5% downpayment have a delinquency rate of 16% over the course of the whole housing cycle.” (“Why a sizable down payment is important“, Dr. Housing Bubble)
So despite what Watt thinks, higher down payments mean fewer defaults, fewer foreclosures, fewer shocks to the market, and greater financial stability.
And here’s something else that Watt should mull over: The housing market isn’t broken and doesn’t need to be fixed. It’s doing just fine, thank you very much. First of all, sales and prices are already above their historic trend. Check it out from economist Dean Baker:
“If we compare total sales (new and existing homes) with sales in the pre-bubble years 1993-1995, they would actually be somewhat higher today, even after adjusting for population growth. While there may be an issue of many people being unable to qualify for mortgages because of their credit history, this does not appear to be having a negative effect on the state of market. Prices are already about 20 percent above their trend levels.” (“Total Home Sales Are At or Above Trend“, Dean Baker, CEPR)
Got it? Sales and prices are ALREADY where they should be, so there’s no need to lower down payments and ease credit to start another orgy of speculation. We don’t need that.
Second, the quality of today’s mortgages ARE BETTER THAN EVER, so why mess with success? Take a look at this from Black Knight Financial Services and you’ll see what I mean:
“Today, the Data and Analytics division of Black Knight Financial Services … released its November Mortgage Monitor Report, which found that loans originated in 2013 are proving to be the best-performing mortgages on record…..
“Looking at the most current mortgage origination data, several points become clear,” said Herb Blecher, senior vice president of Black Knight Financial Services’ Data & Analytics division. “First is that heightened credit standards have resulted in this year being the best-performing vintage on record. Even adjusting for some of these changes, such as credit scores and loan-to-values, we are seeing total delinquencies for 2013 loans at extremely low levels across every product category.”
Okay, so sales and prices are fine and mortgage quality is excellent. So why not leave the bloody system alone? As the saying goes: If it ain’t broke, don’t fix it.
But you know why they’re going to keep tinkering with the housing market. Everyone knows why. It’s because the banks can’t inflate another big-honking credit bubble unless they churn out zillions of shi**y mortgages that they offload onto Fannie and Freddie. That’s just the name of the game: Grind out the product (mortgages), pack it into sausages (securities and bonds), leverage up to your eyeballs (borrow as much as humanly possible), and dump the junk-paper on yield-chasing baboons who think they’re buying triple A “risk free” bonds.
Garbage in, garbage out. Isn’t this how the banks make their money?
You bet it is, and in that regard things have gotten a helluva a lot scarier since last Wednesday’s announcement that the banks are NOT going to be required to hold any capital against the securities they create from bundles of mortgages.
You read that right. According to the New York Times: “there will be no risk retention to speak of, at least on residential mortgage loans that are securitized.”
But how can that be, after all, it wasn’t subprime mortgages that blew up the financial system (subprime mortgages only totaled $1.5 at their peak), but the nearly $10 trillion in subprime infected mortgage-backed securities (MBS) that stopped trading in the secondary market after a French Bank stopped taking redemptions in July 2007. (a full year before the crisis brought down Lehman Brothers) . That’s what brought the whole rattling financial system to a grinding halt. Clearly, if the banks had had a stake in those shabby MBS— that is, if they were required to set aside 5 or 10 percent capital as insurance in the event that some of these toxic assets went south– then the whole financial collapse could have been avoided, right?
Right. It could have been avoided. But the banks don’t want to hold any capital against their stockpile of rancid assets, in fact, they don’t want to use their own freaking money at all, which is why 90 percent of all mortgages are financed by Uncle Sugar. It’s because the banks are just as broke as they were in 2008 when the system went off the cliff. Here’s a summary from the New York Times:
“Once upon a time, those who made loans would profit only if the loan were paid back. If the borrower defaulted, the lender would suffer.
That idea must have seemed quaint in 2005, as the mortgage lending boom reached a peak on the back of mushrooming private securitizations of mortgages, which were intended to transfer the risk away from those who made the loans to investors with no real knowledge of what was going on.
Less well remembered is that there was a raft of real estate securitizations once before, in the 1920s. The securities were not as complicated, but they had the same goal — making it possible for lenders to profit without risking capital.
The Dodd-Frank Act of 2010 set out to clean that up. Now, there would be “risk retention.” Lenders would have to have “skin in the game.” Not 100 percent of the risk, as in the old days when banks made mortgage loans and retained them until they were paid back, but enough to make the banks care whether the loans were repaid.
At least that was the idea. The details were left to regulators, and it took more than four years for them to settle on the details, which they did this week.
The result is that there will be no risk retention to speak of, at least on residential mortgage loans that are securitized.
“…..Under Dodd-Frank, the general rule was to be that if a lender wanted to securitize mortgages, that lender had to keep at least 5 percent of the risk…….But when the final rule was adopted this week, that idea was dropped.” (“Banks Again Avoid Having Any Skin in the Game”, New York Times)
No skin in the game, you say?
That means the taxpayer is accepting 100 percent of the risk. How fair is that?
Let’s review: The banks used to lend money to creditworthy borrowers and keep the loans on their books.
They don’t do that anymore, in fact, they’re not really banks at all, they’re just intermediaries who sell their loans to the USG or investors.
This arrangement has changed the incentives structure. Now the goal is quantity not quality. “How many loans can I churn-out and dump on Uncle Sam or mutual funds etc.” That’s how bankers think now. That’s the objective.
Regulations are bad because regulations stipulate that loans must be of a certain quality, which reduces the volume of loans and shrinks profits. (Can’t have that!) Therefore, the banks must use their money to hand-pick their own regulators (“You’re doin’ a heckuva job, Mel”) and ferociously lobby against any rules that limit their ability to issue credit to anyone who can fog a mirror. Now you understand how modern-day banking works.
It would be hard to imagine a more corrupt system.
When I saw the movie “Saving Mr. Banks” during one of my interminably-long plane rides back from Syria, I liked it so much that I actually went out and bought a copy of the 1964 “Mary Poppins” Disney classic it was based on — the one with Julie Andrews and Dick Van Dyke frolicking across the rooftops of London.
And much to my surprise, I discovered that Mary Poppins might have been one of the world’s first hippies. Who woulda thought! And what was even more amazing is that Mary Poppins was one of the first people to warn us about the dangers and perfidy of big bankers and big banks.
And fortunately for those of us living here in America one hundred years later, Elizabeth Warren has now become the new Mary Poppins — also warning us about the dangers and perfidy of big bankers and big banks.
If only Americans would start paying attention to Elizabeth Warren as much as they paid attention to Julie Andrews!
“Hey, Elizabeth!” I also want to shout on the rooftops like Dick VanDyke, “voters aren’t listening to you!” Maybe if Disney studios made a movie about you too? Then maybe voters would finally start to listen.
According to Warren, the American middle class has been absolutely decimated by the banking and credit-card lobbies.
And yet voters still keep falling for all those glossy ads and happy lies that still keep getting pro-big-bank candidates elected to the White House and Congress even though voters can clearly see that they themselves are losing their jobs, having their homes repossessed, becoming slaves to their student loans and getting ripped off bigtime by credit-card debt. But then I guess that those syrupy ads actually do prove that “A spoonful of sugar helps the medicine go down” after all.
In the heroic country of Iceland, their well-informed voters have vigorously fought back against bankster greed and have even re-written their constitution in order to make lending-bubbles and bank fraud illegal.
But in America, the opposite happens. Here in America our very own government, the very one that bank lobbyists have chosen for us to elect, is handing over billions of our very own hard-earned dollars to big banks just as fast as it can. And Congress is always writing new bankruptcy laws that favor banksters over the middle class every time. Mary Poppins would be livid, of course, but nobody else seems to even notice these days — except for Elizabeth Warren.
And even the Federal Reserve is dancing over the rooftops in glee as it too gives away our money to the banksters just as fast as it possibly can, singing “Step in Time” as gleefully hands over giant bags of taxpayers’ money to Chase, Bank of America, CitiBank and Goldman Sachs.
Plus the Senate just vetoed a bill that would have given students a break from paying up to 12% interest on their college loans too. According to Warren, “This isn’t complicated. It’s a choice – a choice that raises a fundamental question about who the United States Senate works for. Does it work for those who can hire armies of lawyers and lobbyists to protect tax loopholes for billionaires and profits for the big banks? Or does it work for those who work hard, play by the rules, and are trying to build a future for themselves and their families?”
Not to mention the hidden (and not-so-hidden) fees that banks gleefully charge us customers for no reason at all.
To try to completely understand how banksters and their toadies in Congress and the Department of Justice are robbing the rest of us blind, you just gotta watch this video of Bill Moyers interviewing bank-fraud expert Thomas K. Black. Seriously. You really should watch this: http://vimeo.com/107916659
In this video, Black describes how Obama was elected by the banking industry and how Obama has totally paid back his debt to the banksters by handing them all “get out of jail free” cards. Is being elected president really worth selling us Americans out to the banksters? Apparently so.
“There’s no threat to capitalism like capitalists,” continues Black. “They are destroying its underpinnings. And when dishonest people gain an advantage in the marketplace, bad ethics drive good ethics out. This is why we need the rule of law.” Doesn’t Thomas K. Black sound just like Dick VanDyke, er, I mean Burt the Chimney Sweep here — as Black proposes that it’s high time to sweep clean our banks.
And now let’s talk about America’s ratings on the so-called “Misery Index”. Apparently America rates higher on the misery charts now than it ever has, even back in the Great Depression — and probably even as high as did Mary Poppins’s 1910 London. Thanks a lot, banksters.
Isn’t it time that American voters finally join up with Elizabeth Warren and Mary Poppins — and tell big banks and banksters to go “fly a kite!”
PS: Speaking of money, look how much of it is being spent in the Middle East — and not here at home where it is needed!
According to a recent blog-post at thehill.com, the first official estimates of the ISIS price tag from the Pentagon showed that, “the costs of intervention between mid-June and late-August was $7.5 million per day. At that rate, the U.S. has spent $850 million on operations against ISIS as of October 8, adding up to about $2.74 billion per year. The Pentagon has since revised the estimate up to as high as $10 million per day, or $3.65 billion per year. In reality, both of those numbers are quite likely to be underestimates of what’s to come.”
Looks like the US military is just as bad as the US banksters when it comes to cleaning out America’s pocketbooks — after they both have put us to sleep with false promises and false news https://www.youtube.com/watch?
What we Americans really need to do these days is to once again take Mary Poppins’s advice and “Stay Awake”! https://www.youtube.com/watch?
The cozy relationship between financial institutions and their respective regulators has long been known. Concern from reformers and activists comes from all stripes of ideological perspectives. With the attention that Carmen Segarra, the whistleblower of Wall Street, has gained, the noise from the banking establishment pushes back. Here comes the expected spin from the Fed, The New York Fed Slams Tape-Recording Whistleblower, Says She Was Fired After Just 7 Months Over Performance. Read their Statement Regarding New York Fed Supervision. So what is this controversy all about?
How dare a mere low level regulator document the goings on within the financial establishment, Inside the New York Fed: Secret Recordings and a Culture Clash, writes.
“As ProPublica reported last year, Segarra sued the New York Fed and her bosses, claiming she was retaliated against for refusing to back down from a negative finding about Goldman Sachs. A judge threw out the case this year without ruling on the merits, saying the facts didn’t fit the statute under which she sued.
At the bottom of a document filed in the case, however, her lawyer disclosed a stunning fact: Segarra had made a series of audio recordings while at the New York Fed. Worried about what she was witnessing, Segarra wanted a record in case events were disputed. So she had purchased a tiny recorder at the Spy Store and began capturing what took place at Goldman and with her bosses.
Segarra ultimately recorded about 46 hours of meetings and conversations with her colleagues. Many of these events document key moments leading to her firing. But against the backdrop of the Beim report, they also offer an intimate study of the New York Fed’s culture at a pivotal moment in its effort to become a more forceful financial supervisor. Fed deliberations, confidential by regulation, rarely become public.”
In an attempt at damage control, the Fed was looking for a favorable review. What they got was not what they wanted, N.Y. Fed Staff Afraid to Speak Up, Secret Review Found.
“The investigation, conducted by Columbia University finance professor David Beim, was initially confidential but was later released by the Financial Crisis Inquiry Commission.
Mr. Beim’s report called on the New York Fed to demand that its regulatory staffers maintain a “more distanced, high-level and skeptical view” of how the banks they oversee make money.”
A Short History of the Breathtaking Cluelessness of U.S. Financial Regulators, is outlined by the Motley Fool analysis. Any serious observer of the cozy relationships that permeate the financial community knows all too well, that the revolving door turns when favorable regulation decisions spin in the right direction.
The significance of this latest scandal, points out just how the regulation process is conducted in the suites of money manipulation. This next account is most telling; You Should Listen To The Goldman New York Fed Story.
“This American Life has a banking supervision story that turns on secret recordings made by a former employee of the New York Fed, Carmen Segarra, and it’s pretty good, because it shows how regulators basically do a lot of their regulating of banks through meetings, with no action items after. That’s weird, and it’s instructive to see how intertwined banking and supervision are. There’s a killer meeting after a meeting with Goldman Sachs where Fed employees talk about what happened, and – though we don’t know what was left on the cutting room floor – the modesty of the regulatory options being considered is fascinating. Nothing about fines, stopping certain sorts of deals, stern letters, or anything else. The talk is self-congratulation (for having that meeting with Goldman) and “let’s not get too judgmental, here, guys.”
The takeaway of the story, which is blessedly not an example of the “me mad, banksters bad!” genre, is that this kind of regulation isn’t very effective. It clearly hasn’t prevented banks from being insanely profitable until recently, in a way that you’d think would get competed away in open markets.”
Why is Goldman exempt from any meaningful oversight? William D. Cohen over at Politico provides an answer to the question, Why the Fed Will Always Wimp Out on Goldman.
“Although Michael Silva, Segarra’s superior, didn’t doubt that the Goldman-Santander transaction was legal, he didn’t think it passed the smell test. “It’s pretty apparent when you think this thing through that it’s basically window dressing that’s designed to help Banco Santander artificially enhance its capital position,” he told his New York Fed team before a meeting on the topic with Goldman executives.”
Segarra thought her boss’s pre-occupation with whether Goldman “should” have done the deal, or been allowed to do the deal, was all just a big waste of time and obfuscated the larger issue that Goldman, and other Wall Street banks, were busy pushing around a key regulator – the New York Fed – rather than the other way around. She worried that her bosses were focusing on “fuzzy” and “esoteric” issues such as Goldman’s “reputational risk.” Silva also shared with Segarra that it was all moot anyway, because Tom Baxter, the New York Fed’s general counsel, had, he said, “reined him in” on the subject. “I was all fired up, and he doesn’t want me getting the Fed to assert powers it doesn’t have,” Silva tells Segarra, according to the tape recording.”
Breaking down all the details and dialogues that transpire in the normal course of banking reviews comes down to the undeniable fact that Goldman is in charge of the process. The ownership of the Federal Reserve, a private entity, is ultimately owned by the shadow families that control the major financial institutions. Only a very naïve analysis or a compromised minion of the financial elite Plutocracy would dispute the power and clout that is applied to the political nature of regulatory oversight.
Bankster’s earn this graphic title by the way they conduct their protection racket. Courageous regulators like Carmen Segarra are treated as traitors to a system that is designed to facilitate every abuse that firms like Goldman can devise. Now you know who really owns the gold, because they make up whatever rules that foster their financial corruption.
Seldom does the enormous bond market turn on the fate of a single trader. Well, the news that Bill Gross was leaving Pimco under suspicious circumstances did not go unnoticed. The WSJ writes:
“The yield on the 10-year benchmark Treasury note was hovering around 2.506% immediately before the disclosure that Mr. Gross was leaving the hundreds-of-billions of dollars in Treasurys and other debt he oversaw at Pimco to go to rival firm Janus Capital Group Inc.
Within a half-hour, the yield jumped to 2.546%. While a move of 0.04 percentage point may not seem like much in that period of time, it was perceptible enough in the $12 trillion Treasury market that several traders and strategists attributed it to the news about Mr. Gross.”
Attempting to explain the reasons for his departure, The Economist speculates in the essay, Overthrowing the Bond King. “There appear to be three main reasons behind Mr Gross’s abrupt exit. The immediate cause was his abrasive management style . . . Moreover, Mr. Gross’s public behavior has grown increasingly peculiar of late . . . Such mis-steps might have been forgiven had Mr. Gross’s charmed streak as an investor continued. But over the past three years, several misjudgments have caused his funds to lag.”
At this point What You Need to Know About SEC’s Investigation of Pimco, centers on a relatively small $3.6 billion ETF, exchange-traded fund.
“Apparently, Pimco went around buying up small blocks of bonds, known as “odd lots,” at discounts. Pimco then marked their prices upwards using estimates of their values derived from larger blocks of bonds.
If Pimco really couldn’t resell the bonds at the new, higher prices it seems off base. But it also seems plausible the bonds might genuinely be worth more in Pimco’s hands than they were in the hands of whoever sold them.”
The mystic that Pimco enjoyed in bond trading may have sunk from the implications of SEC snooping. Gross seems like he is sprinting for the exit, but is this all that is in play? Investor’s Business Daily paints a smiley face on the open door that Gross’ transfer of loyalties as a positive for Janus Capital Group.
Now step back from these headlines and examine the concerns that have been floated about the bond market for a very long time. Money Beat in an account suggests that aBond Bubble Will Burst in a ‘Very Bad Way’ and reports on the recent Bloomberg’s Markets Most Influential Summit.
“Bonds are at ridiculous levels,” Julian Robertson, founder of one of the earliest hedge funds in Tiger Management Corp., said on a panel at the Bloomberg Markets Most Influential Summit. “It’s a world-wide phenomenon that governments are buying bonds to keep their countries moving along economically.”
Howard Marks, the chairman of Oaktree Capital Group LLC, said interest rates are “unnaturally low today.” Leon Cooperman, founder of Omega Advisors Inc. and former partner at Goldman Sachs, said bonds are “very overvalued.”
Forecasting the direction of government bonds usually focuses on predicting what central banks will do to drive interest rates, either up or down. Since consensus in market watchers has long announced that U.S. Bonds yields are unnaturally low, the calls for a turn upward in interest rates seem ridiculously overdue in coming.
All that seems reasonable; however, the Federal Reserve is playing a much different game from the responding to the normal business cycle.
Since the financial meltdown of 2008-2009, the charts and metric gauges for predicting market movements require a complete overhaul. Betting on U.S. Bonds no longer is based solely on domestic factors.
ZeroHedge cites David Tepper Is Back, Sees “Beginning Of The End” Of Bond Bubble.
“Empirically, Tepper may be right: in the past every time a central bank has launched a massive easing program (think QE1, QE2, Twist, QE3, etc.) it resulted in aggressive stock buying offset by bond selling. The issue is when said programs came to an end, and led to major selloffs in equities, pushing bonds to newer and lower record low yields. So perhaps for the time being, we may have seen the lows in the 10Year and in the periphery. The question is what happens when Europe’s latest “Private QE” operation comes to an end: just how massive will the bond bid be when all the money currently invested in risk assets decided to shift out all in one move.
More importantly, it also explains why central banks now have to work in a constant, staggered basis when easing, as the global capital markets simply cannot exist in a world in which every single central bank stops cold turkey with the “market” manipulation and/or liquidity injections.”
Within this context, why all the hullabaloo over Bill Gross jumping ship? While price inflation is real and grossly underreported, currency deflation still persists over the last six years. Now some may claim this phenomenon proves that stability in the bond market exists. Conversely, if this measure is acceptable to institutional bondholders, are they not accepting very low returns out of fear that the economy still hangs on a precipice.
Always remember that bonds are loans that have an obligation for repayment. Stability is maintained in the core indebtedness with the reimbursement settlement of the principal. Most governments are able to string along the unavoidable roll over so that new funds are raised to refinance.
Not so in every case from private or corporate debt. Just ask the bond holders from GM, better known as “Government Motors”.
Government bonds make up the essential float in the paper trade. As long as the global collateralization of bonds is honored, the planet may be able to avoid the fate of Greece. Pimco is but a pimple when compared to the Federal Reserve’s monetization of U.S. Treasury debt.
Bond professional traders look for an edge. Firms may risk their own capital, but most brokers look to skim an easy commission. It’s the institutions who have the most at stake and need a stable bond market. When not if, the bubble busts or deflates, the air is going to escape and blow over average investors.
With election time almost upon us, here’s a rather sobering thought: By spending as little as a mere two billion dollars, anyone with that amount of money can now afford to buy an entire American election — Congress, the White House, governorships and all.
“But Jane,” you might ask, “why would anyone even want to do that?” Why? Just look at all the immense amount of loot you can score with just this tiny investment. Access to national park land, bank deregulation, profits from weapons production, corporate monopoly status, pro-pollution laws, judges’ rulings in your favor…need I go on?
For instance, eleven trillion dollars has been recently spent on escalating and pursuing fake wars. So if you “invest” in American elections and still only receive, say, just ten percent of those eleven trillion singles for your weapons-manufacturing services or whatever the heck else companies like Halliburton do, you still have just grown your measly two-billion-buck investment at least a thousand times over. Forever War really pays off!
Or if you are guys like Obama, Bush and Cheney — and can’t resist playing with war toys? Then you get to buy your very own wars! Lots and lots of wars. You get to play with actual life-sized GI Joe dolls and call yourself “Commander in Chief”. You get to bomb Libya and Ukraine and Iraq and Syria. What fun! Two billion dollars can buy you a hecka lot of war toys — eleven trillion dollars worth to be exact.
Or let’s say that your net worth is approximately 100 billion dollars, like, say, the Koch brothers’ worth is. You spend less than three percent of that money on buying elections — and voila! You too get over a thousand percent return on every dollar you spend. What kind of crazy-good investment is that!
Or let’s say you are a member of the notorious WalMart family, worth hundreds of billions of dollars. You spend just a few paltry billion on election buyouts — and suddenly us taxpayers are paying for all of your employees’ healthcare. And we’re throwing food stamps into the bargain too. Brilliant idea!
Or what if you own a giant coal company, oil company, car company, power company or some other major polluter? Common sense tells us voters that we need to cut down on polluting the atmosphere so as to avoid drastic climate change that even now threatens to kill off the whole human race.
We could have been using solar power all this time for instance — and also cleaned up our rivers and even eliminated the need for fossil fuel. But no. For a few (billion) dollars more at election time, you can potentially doom the entire human race. America, are we having fun yet?
Or let’s say for instance that you are AIPAC, that Israeli political action committee. Spend just two billion dollars to buy every election in America — up to and including the dog catcher? What a deal! And since Israel is already receiving three billion dollars every year from America, guaranteed, voted by Congress, you don’t even have to risk using your own moolah. You can use ours. Fabulous investment. http://www.counterpunch.org/
Plus you also get permission to bomb Gaza, take over the West Bank, design America’s stupid “Bomb Syria” policy, have red-carpet access to the entire Middle East (as in red carpets of blood) and get away with committing all kinds of other violations of the Nuremberg precedents and Geneva war crime conventions too.
According to Middle East expert Paul Larudee, “Israeli prime minister Benjamin Netanyahu infamously bragged that ‘America is a thing you can move very easily’.” Apparently all you need is just two billion bucks. Hell, Attila the Hun never even had that kind of power. Or even Josef Stalin. All he ever got out his American investments was the freaking Cold War.
But don’t worry, Josef! The Cold War is about to heat up again, thanks to AIPAC. Hell, now AIPAC is even an unofficial member of NATO (and apparently its most influential member too). And, as such, Israeli war hawks seem hell-bent on fomenting World War III. Does the American public really want to go there? I think not.
Or you could invest your capital in running America’s prison-industrial complex? Just think of all the cheap labor you’ll get! For much less than two billion in folding money, you don’t even have to ship your goods over from China any more. Plus you get to have them stamped “Made in America” too. Definitely a win-win for you.
Or what if you are Monsanto or Big Pharma or Bank of America or CitiCorp or Goldman Sachs or General Electric? For far less than two billion dollars, you can get rid of unions, create your own monopolies, write your own “regulations”, appoint your own “regulators” and rake in the profits. And if you are Big Media, our publicly-owned airwaves now belong to you. Think Rupert Murdock. Or net neutrality up in smoke. Think AT&T. Boo-yah!
Yep, America is for sale for really cheap these days. The total assets of the United States of America is currently 188 trillion dollars. And just think. For just a mere two billion simoleons, all that can be yours! Buy a little false advertizing, do a bit of voter-suppression, get your hands on a few electronic voting machines, tell a few lies on Fox News and CNN and, boom shake the room, you can own all of that. All $188,000,000,000,000.00 worth. “Worth playing for?” Yeah.
My country these days has become like some aging cheap whore, selling herself on street corners to the first two-bit John who comes along and offers her a couple of dollars.
America these days isn’t even a high-priced call girl any more.
When the billionaire tech jet set decides to let down their hair, what do they talk about around the campfire? According to the New Your Times, “Google is sponsoring an elite conference this week at a golf resort in Sicily, with a guest list of chief executives, investors and celebrities, all of whom were invited to bring their families. On the agenda are high-minded discussions of global issues — along with relaxation by the Mediterranean Sea.” How quaint! . . . For the real scoop, Here’s What Went On At Google’s Exclusive Conference For The Rich And Famous In Sicily.
“Sicilian blogger Tony Siino talked to an attendee about what went on, and told Business Insider via email that the conference, dubbed “The Camp,” was three-days of intellectual discussions, relaxation, and sight-seeing.According to Siino’s source, morning discussions included a wide range of topics, including how to extend human life and the design of cities of the future.”
Reported by NBC local TV channel in the Bay Area has “guests include Goldman Sachs chief executive Lloyd C. Blankfein, executives from German and Spanish banks, Uber chief Travis Kalanick, Tesla boss Elon Musk, Comcast CEO Brian L. Roberts and Snapchat boss Evan Spiegel. Also on hand is Ben Horowitz, venture capitalist with Marc Andreessen at make-or-break Silicon Valley fund Andreessen Horowitz.”
Spending quality time with the family between sessions in the next round of tech discoveries hardly seems to be the best use of time. Yet, time may well be the ultimate objective if you can uncover the mysteries of anti-aging research. Life Extension Magazine reports that Google Life Extension is investing in a venture called California Life Company, or Calico for short, and its goal is to extend human life by 20 to 100 years.
At this point, Google is being highly secretive about their plans for Calico. All Google would reveal is that Calico will focus “in particular on the challenge of aging and associated diseases.”
Calico could produce startlingly counterintuitive breakthroughs, as a result, of Google’s strengths in the following areas:
- Non-commercial dedication — rather than a focus on commercial marketing of mediocre drugs as pharmaceutical companies now do.
- Vast consumer access and core data-handling skills — with unprecedented data gathering, pattern-matching, and causal-relationship detection.
- Ability to attract the brightest minds — potentially preferring to work on life-and-death problems instead of cutesy apps and games.
Further speculation in an essay – How’s Google Dabbling in Health, Life, DNA, and Immortality? – cites areas of research has cutting-edge technology pushing the limits of the wheel of life itself.
“A CNN article listed a few common subjects, like cryonics (a process where the body is preserved in liquid nitrogen), cryotherapy (which exposes injured patients to very low temperatures for short periods of time), cloning and body part replacement, nanotechnology (deploying small robots to overcome the problem of incorrect DNA replication, one cause of aging), and even research into telomeres, the ends of a chromosome that protect cells against degradation.”
Hidden within a “feel good” sentiment behind the altruism to elevate the life span of the human race is an unconvincing skepticism. In an article like Google Wants You to Live 170 Years, just does not seem believable to a rational observer.
“What Google brings to the table is data. “Not just one set of data, multiple forms,” says Harry Glorikian, founder of life sciences consulting firm Scientia Advisors. “Search data, GPS data, all sorts of other pieces, electronic breadcrumbs that you produce all out there to get a picture of you.”This data could be paired with each person’s genome — a partial genome can be mapped today for $99 via 23andMe (another Google investment), but many are hoping a full genome will cost as much in the next few years.”
Even if such ambitious projections that life extension might become common-place for the masses, it does not guarantee that everyone will be a candidate for future “Camp” invitations. Google hardly needs to market the secrets of the gods in order to maintain or enhance their cash flow. The Globe and Mail describes the gathering, “Like the World Economic Forum in Davos, Switzerland – an annual gathering of the elite at a snowy ski resort – the upstart conference from Google projects an aura of exclusivity. Its existence has not previously been disclosed.”
Following the example of other enigmatic elitist stratagems, “The Camp” shows no signs of a charitable motivation when the onion is peeled. Michael Downey in the account, Google Wants To Extend Your Life laments that not enough is being done to achieve the holy grail of Ponce de Leon’s Fountain of Youth.
“Tragically, while the government spends over $3 billion annually on “health concerns” of the elderly, it operates on the assumption that aging is not a disease. Corporations lack the longer-term view needed. And extremely few of the world’s 1,426 billionaires, with a total net worth of $5.4 trillion, have included anti-aging research in their charities.”
Do you really believe that the beautiful people, much less, the corporatist return on assets crowd, or the great democracies of the planet are eager to share any medical, genetic or nanotech leap forwards with the chattel serfs? Attending boot camp for the peasants is quite different from rubbing elbows with these Nouveau riche Sicilian Dons in the global technocratic mafia. The blueblood patricians of the banksters’ families will enlighten their newly made men into the rules and ways of the global syndicate.
The Calico family franchise promises to be more alluring than the temporary ecstasy of a drug high. Most godless souls want to live forever, since rejecting an afterlife is automatic to such atheistic masters of the universe. Google has proven to be a “New Age” android. Hence, it is natural for apps, developed to manage the life cycle, become part of the smart set. The key question is will the source code become available to the masses, or will the elites maintain the restricted knowledge only for their devil witch coven.
As if globalist scheming had not yet caused enough death and destruction in the Middle East, the global government-promoting Council on Foreign Relations and various outfits associated with the secretive Bilderberg group are now pushing a radical new plot for the region: a European Union-style regional regime to rule over the Arab, Turkish, Kurdish, and other peoples who live there. The sought-after “Middle Eastern Union” would put populations ranging from Turkey and Jordan to Libya and Egypt under a single authority.
If the plot moves forward, like in other areas, it would usurp from the peoples of the region their right to self-government and national sovereignty. It would also advance the longtime establishment goal of setting up regional regimes on the path to a more formal system of “global governance.” Already, the peoples of Europe, Africa, South America, Asia, and other regions have had self-styled regional “authorities” imposed on them against their will. In the Middle East, numerous similar efforts such as the Gulf Cooperation Council and the Arab League have been making progress, too.
A true “union” to rule over the broader Middle East and North Africa, though, would represent a major step forward in the ongoing regionalization of power around the world. Using a wide range of pretexts to advance the scheme, top globalist outfits and mouthpieces claim such a regional government would solve myriad real and imagined problems. However, with the plot being pushed hard by the CFR and various globalist propaganda organs such as the Financial Times, a U.K. newspaper that is always well represented at the shadowy Bilderberg summits, there is good reason to be skeptical at the very least.
“Just as a warring [European] continent found peace through unity by creating what became the EU, Arabs, Turks, Kurds and other groups in the region could find relative peace in ever closer union,” claimed Mohamed “Ed” Husain, an “adjunct senior fellow for Middle Eastern studies” at the CFR, in a piece published in the Financial Times and on the CFR website last month. “After all, most of its problems — terrorism, poverty, unemployment, sectarianism, refugee crises, water shortages — require regional answers. No country can solve its problems on its own.”
Of course, the notion that Europe “found peace through unity” — in reality it was globalists surreptitiously crushing national sovereignty and foisting an unaccountable regime on the peoples — is fashionable among establishment types. In truth, though, “peace” hardly requires giving up self-government. Plus, many of the wars in Europe over the last century were actually fomented by the very same forces that imposed the EU on the continent. Prince Bernhard of the Netherlands, for example, was a member of the National Socialist (Nazi) party before going on to create Bilderberg, which attendees openly boast has played a crucial role in imposing the Brussels-based super-state that now dominates Europe.
Plenty of actual examples also refute Husain’s claims about the supposed necessity of a regional regime to solve national problems. The Swiss, for instance, have had peace for centuries, yet they have consistently and overwhelmingly refused to surrender their sovereignty to the EU or any other outfit. Switzerland also has virtually no terrorism, poverty, unemployment, sectarianism, refugee crises, or water shortages, yet it never sought “regional answers.” In fact, contrary to Husain’s factually challenged argument, the Swiss have done better than virtually any other people in solving their problems on their own. Perhaps Husain views Middle Easterners as less capable, but more likely, he knows full well that a country could solve its problems on its own.
“Most in the Middle East no longer feel the dignity of their ancestors,” continued the CFR’s Husain without citing any data or surveys. “What Plato called thymos is desperately missing: the political desire for recognition and respect as dignified peoples. A Middle Eastern Union could recreate it.” How being ruled by an unaccountable and autocratic EU-style leviathan would give the peoples of the Middle East “dignity” or “thymos” was not immediately clear. Plato, of course, like bigwigs at the CFR and their fellow travelers, believed the masses should be lorded over by their superiors — Plato called them “philosopher kings.”
Rather than allowing Middle Easterners to create their own union, Husain makes clear that Western globalists should take the lead. “Will the west wait until Islamists and radicals are powerful enough to create their own Middle East, one opposed to us?” he asked, conveniently failing to mention the gigantic role of the Western and globalist establishment in fomenting Islamic extremism and terror. “Or will we help our partners in government harness this momentum? This is the moment to create multilateral institutions that could implant pluralism across the region.” Husain also called for the EU and the U.S. government to lend “bureaucratic experience” to “voices in the region who want greater integration.”
“A complete change of psychology is needed,” he added without elaborating on how such a transformation in people’s views and beliefs would be achieved.
Of course, Husain at the CFR is not alone. In 2011, the Islamist president of Turkey, Abdullah Gül, also called for an EU-style regime to rule the Middle East. Speaking in the United Kingdom, Gül claimed “an efficient regional economic cooperation and integration mechanism” was needed for the region. “We all saw the role played by the European Union in facilitating the democratic transition in central and Eastern Europe after the fall of the Berlin Wall,” he claimed. Islamic Turkey is also working to join the EU.
Various Middle Eastern tyrants have echoed the calls for a regional regime, too — the kings of Saudi Arabia and Jordan, for example. As Husain pointed out, the radical Muslim Brotherhood and the terrorist group Hamas are also working to unify the Middle East under one single tyrannical government of gargantuan proportions.
Already, AstroTurf groups working toward such a union are popping up across the region, too. “We dream of a Middle East that is empowered, free, and governs for all it’s [sic] peoples at the highest level of being in a new world where the Middle East Union is an important integral part of a greater global community that pledges its allegiance to the earth and every human on it,” declares the newly created “Middle East Union Congress” on its website.
By 2050, the new Congress aims to shackle some 800 million people from Pakistan in Asia to Morocco in Northwest Africa under a single regime with a single euro-style currency. The outfit also wants to create a new capital city for the union named aftercommunist revolutionary Nelson Mandela, whom it described as “the 20th century’s greatest global citizen.” From “Nelson Mandela City,” the new regime would “eco-govern” all of the nations and peoples of the union as “a model for the new global paradigm that honors and respects mother earth.”
One of the primary selling points for the “union” plot is the notion it would help rein in radicals — most of whose organizations were either created, armed, trained, financed, or all of the above by Western governments and the Soviet Union. Ironically, though, just a few years ago, Husain was touting al-Qaeda’s key role in furthering the globalist plan to oust Syrian dictator Bashar al Assad. “The influx of jihadis brings discipline, religious fervor, battle experience from Iraq, funding from Sunni sympathizers in the Gulf, and most importantly, deadly results,” gushed Husain, a Sunni Muslim, in a 2012 piece for the CFR. “In short, the [Obama/CFR/Bilderberg/Goldman Sachs-backed Free Syrian Army] needs al-Qaeda now.”
Before joining the CFR, meanwhile, Husain spent years working with Hizb ut-Tahrir, a radical Islamist group pushing for an Islamic Caliphate — a vast, totalitarian “Middle Eastern Union” of sorts — based on sharia law. The outfit also promotes the death penalty for apostates and has been accused by various governments of involvement in jihad terrorism. Husain, though, is hardly the only figure at the globalist outfit with a history of extremism. CFR Latin America boss and Castro apologist Julia Sweig has even been identified by a senior U.S. intelligence officer as a probable “agent of influence” for the terror-sponsoring communist regime enslaving Cuba.
All over the world, globalists are quietly but quickly foisting supranational regimes on hapless populations. In Africa, for instance, the African Union is now sending its troops all across the continent. In Latin America, the socialist-dominated Union of South American Nations (UNASUR) is working to “integrate” the region, alongside various other transnational outfits. Even in North America, top CFR and Bilderberg globalists are doing the same. “After America comes North America,” boasted ex-general and CFR/Bilderberg bigwig David Petraeus this year.
Of course, the Council on Foreign Relations, despite its operatives’ anti-sovereignty extremism, remains immensely influential in terms of U.S. foreign policy. “We get a lot of advice from the Council, so this will mean I won’t have as far to go to be told what we should be doing and how we should think about the future,” then-Secretary of State Hillary Clinton told CFR bosses in Washington. The CFR’s affiliates around the world hold similar influence. Bilderberg, meanwhile, brings together many of the world’s top globalists, communists, government officials, media barons, and more.
For the sake of liberty, peace, self-government, national sovereignty, and prosperity, humanity should resist the globalist regionalization agenda from Europe to the Middle East and beyond. The alternative is literally global tyranny.
Source: Alex Newman | The New American
The Robber Barons of the 19th and 20th century had nothing over the elites of today’s globalist transnational financial conglomerates. The Richest Americans, listed in Forbes conceals the real power that controls the economy. Net worth is deficient in gauging dominance in financial commercialism and monetary preeminence. The Top 50 Highest-Paid CEOs as reported by ABC News ties into Michael Hiltzik’s account that CEO-to-worker pay gap is obscene, “The average CEO-to-worker pay ratio in 2012 was about 350 to 1.” Yet the divide in pay does not exemplify the exact lose in a livable standard of living for the ordinary staffer.If corporate multinationals were really about creating actual wealth, the pay of inspirational leadership and senior management talent, that executes the business plan, would be incidental if the employees were sharing in affluence. Those who demand higher minimum wage compensation do not understand how business works. The inordinate wealth divide, cannot and will not be reduced, until genuine economic prosperity is achieved.
Analyze the idiocy of a naive Undergraduate Research Fellow, Brian Chesley in 3 Ways to Reduce the Wealth Gap.
1. Open higher education to everyone.
2. Increase the minimum wage.
3. Increase taxes on the rich.
Such ignorant and illiterate attitudes demonstrate that institutions of higher learning encourage an atmosphere of social collectivism that plays directly into the hands of the new tyrannical tycoons.
The New York Times OP-ED piece by Daniel Altman (an adjunct associate professor of economics at the New York University Stern School of Business and a former member of the New York Times editorial board), proposes a foolish mindset and proposal in To Reduce Inequality, Tax Wealth, Not Income.
“In 1992, the top tenth of the population controlled 20 times the wealth controlled by the bottom half. By 2010, it was 65 times. Our graduated income-tax system redistributes a small amount of money every year but does little to slow the polarization of wealth.”
American household wealth totaled more than $58 trillion in 2010. A flat wealth tax of just 1.5 percent on financial assets and other wealth like housing, cars and business ownership would have been more than enough to replace all the revenue of the income, estate and gift taxes, which amounted to about $833 billion after refunds. Brackets of, say, zero percent up to $500,000 in wealth, 1 percent for wealth between $500,000 and $1 million, and 2 percent for wealth above $1 million would probably have done the trick as well.”
Absent in redistribution of wealth schemes is that the method of authentic free enterprise is never understood. Nor is there ever an effort to reestablish the principles of real business competition. The marketplace of voluntary and mutually beneficial commercial transactions, destroyed by the systemic Corporatocracy model, is the ultimate reason why wealth disparity is so great. The literal legacy of the Robber Barons is the internationalist financial system of central banking that predetermines the outcomes of selective patrons from calculating crony capitalism.
Public companies, once established to develop, produce and sell innovative goods or services are rare in an environment where financial manipulation is the primary vehicle to riches. Equity exchanges, based upon raising capital for industrious and constructive ventures, seldom function for this utilitarian purpose. The global economy, in reality, has perfected an anti-free enterprise filter that stamps out initiative and penalties upstarts that are not part of the cartels.
With the insolvency of the world-banking system an inescapable fact, the prospects for even more concentration of real assets into the hands of the financial elites, posed for the final wealth confiscation, of resources not already in their hands, is upon us.
When the internationalist financial system implodes and business screeches to a halt, a populist movement to clawback century long fraudulent gains of the hidden stashes from the interlocked illuminati families is the only coherent alternative to establish a fiscally sound financial future.
“The 2014 Bilderberg meeting is another example of those “blurred lines” between government, big oil and the financial sector, the three pillars of war. According to some reports, the topics of discussion at this year’s meeting will include the situation in Ukraine and the Russia-NATO relationship, as well as the Transatlantic Trade and Investment Partnership (TTIP), an agreement which, according to Stop TTIP, “is in fact a corporate coup that will take us to a ‘corporatocracy’, a corporate-run world.”
The mental confusion that blocks out the way the world fundamentally functions prevents focusing upon any essential debate as to substitute economic parameters for an equitable stake and remuneration for productive contributions to the success of any commercial venture.
The term Robber Barons, should not be substituted for every prosperous risk taker or self-made entrepreneur. The corruption within the cabal economy is rooted in the very nature of the favorable treatment given to participants in the criminal corporatist syndicate.
As Ms. Lévesque correctly describes the methods and operations of this New World Order neo-feudalism, the only structure that offers any prospects for an economic renaissance must target and strip the political influence of the globalists as much as the confiscation of their vast holdings.
Do not be deceived, by communist or socialist newspeak. Sharing the wealth is not the objective. The goal is imposing an unconditionally surrender upon the banksters, which is serious business. Start with the elimination of the Rehypothecation of Collateral. Lawful business has no room for coexistence with derivatives and swaps.Holding the body politic accountable and committed to breaking up the banksters’ monopoly requires compliance regulatory resistance from within the business community. It is just as important as customer and buyer rejection of the corporate induced consumer society. Sadly, most people simply are uninformed about the principles of sound business.
Most CEO’s are not businesspersons, but are globalist enablers and often are outright thieves. The needed business revolution will not be lead by their ilk.
Real competition can never be encouraged until inventive and audacious risk-takers have practical alternatives to fund their enterprises. Only then, will the wealth ratio narrow as affluence, that is more tangible, expands and the fortunes of the oligarchy diminish.
“Actually, as Winston well knew, it was only four years since Oceania had been at war with Eastasia and in alliance with Eurasia. But that was merely a piece of furtive knowledge, which he happened to possess because his memory was not satisfactorily under control. Officially the change of partners had never happened. Oceania was at war with Eurasia: therefore Oceania had always been at war with Eurasia. The enemy of the moment always represented absolute evil, and it followed that any past or future agreement with him was impossible…” – George Orwell, 1984
Nations, cultures and populations are best controlled through the use of false paradigms. This is a historically proven tactic exploited for centuries by oligarchs around the world. Under the Hegelian dialectic (the very foundation of the Marxist and collectivist ideology), one could summarize the trap of false paradigms as follows:
If (A) my idea of freedom conflicts with (B) your idea of freedom, then (C) neither of us can be free until everyone agrees to be a slave.
In other words: problem, reaction, solution. Two sides are pitted against each other in an engineered contest. Each side is led to believe that its position is the good and right position. Neither side questions the legitimacy of the conflict, because each side fears this will lead to ideological weakness and disunity.
The two sides go to war, sometimes economically, sometimes militarily. Both governments demand that individuals relinquish freedom, independence and self-reliance, a sacrifice that “must be made” so that victory can be achieved. In the end, neither nation nor society has truly won. The only winners are the oligarchs, who sing words of loyalty to their respective camps, while acting in league from the very beginning. The oligarchs, who never intended to target each other in the first place. Their target, their ONLY target, was the citizenry itself — the dumbfounded masses now mesmerized with shock, awe and terror.
The false paradigm method and the Hegelian dialectic are in full force today. Only a few years ago, Russia, China and the United States were considered close economic and political allies. Today, those alliances are being quickly scrapped in order to make room for conflict, a conflict useful only to a select international elite. As I have outlined in numerous articles, includingRussia Is Dominated By Global Banks, Too and False East/West Paradigm Hides The Rise Of Global Currency, when one looks beyond all the theatrical rhetoric being thrown around between Barack Obama and Vladimir Putin, the ultimate reality is that the relationship of both governments to the global banking elite is the same.
During both of Obama’s Presidential terms, he has flooded his cabinet with current and formeremployees of Goldman Sachs, a longtime proving ground for elitist financiers with globalist aspirations.
And who is the primary economic adviser to Vladimir Putin and the Russian state? WhyGoldman Sachs, of course!
U.S. and European elites have been calling for a centralization of economic power under the control of the International Monetary Fund, as a well as a new global currency.
Not surprisingly, Putin also wants a new global currency under the control of the IMF.
Obama is closely advised by globalists like Zbigniew Brzezinski, a member of the Council on Foreign Relations and cofounder of the Trilateral Commission, who in his book Between Two Ages: America’s Role In The Technetronic Era states:
“The nation-state is gradually yielding its sovereignty …[F]urther progress will require greater American sacrifices. More intensive efforts to shape a new world monetary structure will have to be undertaken, with some consequent risk to the present relatively favorable American position…”
“In the end, the political and economic systems can be harmonized in only one of two ways: by creating an international political regulatory system with the same reach as that of the economic world; or by shrinking the economic units to a size manageable by existing political structures, which is likely to lead to a new mercantilism, perhaps of regional units. A new Bretton Woods kind of global agreement is by far the preferable outcome…”
Both Kissinger and Brzezinski refer to this harmonized global economic and political structure as the “New World Order.” The fact that the political leaders of Russia and the United States are clearly being directed by such men should not be taken lightly.
China, too, has made demands for a restructuring of the global monetary system into acentralized currency basket under the dominance of the IMF.
China’s ties to the banking elite of London are well documented.
The call on both sides for a new monetary system and the end of the dollar as world reserve seems to greatly contradict the fantasy that the East and West are fundamentally at odds. The progression towards a world currency and/or economic governance also appears to be growing along with the consolidation of economic and military ties between Eastern nations. This would suggest that the rise of the East and the crippling of Western elements is actually advantageous to global bankers in the long term.
While disinformation agents and media shills have attempted to downplay any danger to the strength of America and the dollar, Eastern governments have been swiftly establishing alliances and decoupling from U.S. influence.
The historic 30-year Russia/China gas deal has, of course, been finalized. This deal is already eating up market space and influencing the way in which the energy trade traditionally behaves.
China and Russia have also expanded on their bilateral agreements made in 2010, which remove the dollar as the reserve currency in transactions between the two nations.
China’s thirst for gold continues, while the country is now building its own gold exchange to rival the U.S. Comex.
Russia has recently established what Putin calls the “Eurasian Economic Union,” a deal which includes Kazakhstan and Belarus, two countries that hold large, freshly discovered oil fields.
In response to the engineered conflict over Ukraine, as well as the “Asian-Pacific Pivot” by the U.S., China has openly called for a new security pact with Russia and Iran.
Let’s also not forget that China is set to surpass the U.S. as the world’s largest economy by 2016, according to the Organization for Economic Co-operation and Development (OECD).
While the rise of the East is being painted in Western circles as a threat to U.S. and NATO dominance, the bigger picture is being hidden from view. Yes, indeed, the consolidation of the East is a considerable threat to the dollar and the U.S. economy — most importantly in the event that China refuses to accept dollars as payment on exports and debts. With the world’s largest exporter/importer refusing to take dollars as a reserve, most nations will inevitably follow their lead. The argument against this development is, of course, that there is no rational trigger for such a violent fiscal attack. I would remind skeptics that there was no rational trigger for the current strengthened relations between Russia and China until the Ukraine crisis. Is anyone really foolish enough to bet against another direct or indirect conflict between NATO and the East? And is anyone really ignorant enough to assume that said event would not be used as an excuse to cut the legs out from under the dollar completely?
The New World Order players have positioned the East and West for just such a scenario. Why? In my article Who Is The New Secret Buyer Of U.S. Debt?, I give evidence indicating that the Bank of International Settlements and the IMF are preparing the financial world for a new global monetary system, brought into existence by a second Bretton Woods conference. The debasement of the dollar and the rise of the East are NOT obstacles to this plan. Rather, they are required factors. There can be no truly global economic system without “harmonization”, the demise of the dollar’s world reserve status, and the end of sovereign economic governance.
For those who doubt this scenario, read Paul Volcker’s latest statement, as reported by Zero Hedge.
Volcker, the same man who was directly involved in the destruction of the first Bretton Woods agreement and the final death rattle of the gold standard, is now promoting a NEW Bretton Woods-style agreement in which currencies are pegged to a controlled market system — in essence, a centralized international monetary system. Volcker also suggests that a single nation-based reserve currency like the dollar may be a danger to overall fiscal health.
Volcker is right. The dollar-dominated forex casino and fiat fraud is a danger to the world. Volcker helped make it that way! And what a surprise, the former Federal Reserve chairman has a solution on a silver platter for the American people — all we need is GLOBALcentralization and bureaucratic oversight.
The propaganda is being carefully planted within the mainstream. Christine Lagarde of the IMF now spends the whole of her media interviews inserting the phrase “global economic reset” without explaining exactly what that would entail, while central banking elites like Volcker suggest a Bretton Woods II conference leading to a global monetary authority. In the meantime, Russian government-funded media outlets like RT produce pieces accusing the U.S. of being a nuclear menace while we Americans get to watch manipulative Hollywood films like “Jack Ryan: Shadow Recruit,” which depicts a Russian plot to collapse the U.S. economy. China and U.S. representatives squabble with each other at geopolitical meetings fueling fears of diplomatic breakdown, while the Pentagon “suggests” they may have to revamp their military strategies in consideration of yet another World War. Just as in Orwell’s book, 1984, old enemies become allies and then enemies once again, and at the top of the pyramid, it’s all a farce.
The best lies contain elements of truth. The truth here is that the East is forming alliances in opposition to the West, the West is involved in underhanded covert operations all over the planet, and both “sides” are in fact on the verge of a catastrophic battle for supremacy. The great lie is that important details have been left out of our little story. Both sides are merely puppet pieces in a grand game of global chess, and any conflict will ultimately benefit the small group of men standing over the board. They include the international financiers who have influenced the very policy fabric of each government toward a climactic crisis which they hope will finally give them the “New World Order” they have always dreamed of.
Source: Brandon Smith | Alt-Market
Ever wonder why nobody (except Kareem Serageldin) went to jail for all the crimes committed during the financial bubble that popped in 2008?
If you think back to the 2000-era bubble, lots of people went to jail for the fraud perpetuated at Enron, Tyco, Adelphia, and other firms. Plus, the law back then destroyed a whole accounting firm — Arthur Andersen, you may remember — and 28,000 jobs along with it, in the wake of the bust.
Yet post-2000, firms with far more brazen crimes got off by paying a mere fine.
Its U.S. subsidiary committed, as Taibbi writes, “an astonishing list of crimes — a laundry list that included pretty much every kind of crime a bank can possibly be charged with.”
- Laundering billions of dollars for drug cartels in Mexico and Colombia
- Washing money for terrorist-connected organizations in the Middle East
- Allowing “rogue states” under formal sanctions by the U.S. to move billions freely through the bank
- Helping Russian mobsters wash money under an elaborate traveler’s check scheme
And what was the penalty for all this?
At the time, it was the biggest fine in history. But in context, for a firm that made $22 billion per year, it was not much at all. In fact, looked at in a cold calculating light, the message clearly is: Crime pays.
Note there was no jail time for anybody. Everybody at HSBC got paid. Well, HSBC agreed to partially — partially, mind you – defer (!) bonus payments to its top executives.
Oh, and HSBC had to say it was sorry. “We are profoundly sorry,” said CEO Stuart Gulliver.
But how did we get here?
Matt Taibbi explores the reasons in his book The Divide. Taibbi used to write for Rolling Stone. He was the guy who famously called Goldman Sachs a “great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.” (I wish I had written that line.)
He’s a very good investigative reporter and a fine writer. He’s mellowed out a bit in this book and you won’t find much of the usual Taibbi name-calling and profanity. Taibbi, for good or ill, plays this one straight.
He covers a lot of ground, but the central thesis is one most people will intuitively grasp: If you are rich and powerful, you can get away with almost anything. Rights exist on a sliding scale. And if you are on the bottom, you can do time for loitering.
“The cleaving of the country into two completely different states — one a small archipelago of hyper acquisitive untouchables, the other a vast ghetto of expendables with only theoretical rights — has been in the works a long time.”
But to answer the question posed up top about why nobody’s going to jail, there’s more to the story. You have to go back to a memo written by Eric Holder, the current attorney general, back in 1999, when he was an official in the Clinton White House.
He articulated a concept called “collateral consequences.”
It meant, in essence, that the government could take into account all kinds of factors like job losses and such in deciding whether to press criminal charges against a big company. “If the math isn’t there,” Taibbi writes summing things up, “hold the charges. Seek other forms of justice instead. Fines. Civil sanctions. Cease and desist orders. Deferred prosecutions. There are other ways, Holder wrote, to get the job done.”
In other words, there would never be another Arthur Andersen. Firms had new ways to wiggle out of criminal charges. Hence, we have the monster we have today. Companies too big to jail.
Meanwhile, in other aspects of life, a culture approximating a police state grows apace. Taibbi points to the record levels of incarcerations in the U.S. “Our prison population, in fact, is now the biggest in the history of human civilization,” Taibbi writes. The U.S. has more people behind bars today “than there were at any time in Stalin’s gulags.”
The story here is nasty. He tells the story of private prisons, such as those of Corrections Corp. of America. They get, “depending on whom you believe,” upward of $166 per day from the federal government per inmate. This is four times what it cost back when the government took care of its own detainees.
“The big influx of cash impressed investors on Wall Street,” Taibbi writes. From 2000-2011, CCA’s stock went up 34-fold. Sales went from $300 million to $1.7 billion by 2011. “Overall, the corrections industry is one of the soundest stock/equity bets in the world, with soaring revenues — the industry as a whole pulled in more than $5 billion in America in 2011.”
Needless to say, that didn’t just happen. CCA and others donate generously to politicians. They support anything that might lead to more people spending time in their cells. They particularly like anti-immigrant bills. And Taibbi has harrowing tales about the mistreatment of immigrants in this country. He calls Hispanic immigrants “one of America’s last great cash crops.”
“And someone else wins, too,” Taibbi writes. “Wall Street. Some of the biggest investors in private prison companies are, you guessed it, the too-big-to-fail banks.”
Taibbi writes about an analysis from Zacks that gleefully revels in the lack of economic sensitivity in the business. And then cites a chart with shows a hockey stick increase in the number of incarcerated Americans.
So the country is turning more and more into a dragnet… but only for the poorest. There is no HSBC banker sitting in a CCA cell. It is symbolic of the kind of economy we have today:
“Like too-big-to-fail banking itself, private prisons are an industry that depends not on the unpredictable economy but upon political connections. It’s the perfect kind of business in the oligarchical capitalism age, with guaranteed profits to provide a low-cost public insurance against the vagaries of the market.”
The economy is riddled with corruption like this, a marriage between big business and Big Government. And a recurring theme in this book is the offspring this marriage creates: a relentless, insatiable bureaucratic force that grinds up individuals fed into its maw.
“These bureaucracies accomplish just two things,” Taibbi writes. “They make small piles of money smaller and big piles of money bigger… It just relentlessly creates and punishes losers, who get to sit beneath an ever-narrowing group of winners, who may or may not stay on top for long.”
Legal rights are not absolute. Those with money who can tirelessly throw lawyers and lawsuits and counterlawsuits at any problem can survive almost anything. For the rest, it’s a matter of attrition. And those at the bottom have no chance.
I can’t do justice to all the journalistic fieldwork and stories Taibbi has put in his 416-page book. It is a gripping read and will infuriate you and frighten you, and maybe even make you sad for what’s happened to the “Land of the Free.”
The book does not have a happy ending. The good guys don’t win in the end. But I encourage you give it a read. What it describes is life in these United States. Those of us who cherish liberty have quite a job ahead of us.
Chris Mayer studied finance at the University of Maryland, graduating magna cum laude. He went on to earn his MBA while embarking on a decade-long career in corporate banking. Chris is the editor of Capital and Crisis and Mayer’s Special Situations, a monthly report that unearths unique and unconventional opportunities in smaller-cap stocks. In 2008, Chris authored Invest Like a Dealmaker: Secrets From a Former Banking Insider.
Source: Laissez Faire
One of the most popular films of 2012 was The Hunger Games which portrayed a post-apocalyptic nation called Panem in which a super-rich, super-pampered, super-callous ‘elite’ lived in high-tech luxury while the rest of the population daily battled to survive in abject poverty locked away behind prison fences in intensively-populated ‘people zones’. Panem comes from the Latin phrase ‘panem et circenses’ or ‘bread and circuses’ — a term derived from Rome and meaning to give the people diversions and distractions to hide what is being done to them. Exactly what is happening today.
The Totalitarian Tiptoes to just such a world are happening all around us, although most people can’t see this because they don’t connect the dots. People tend to live in their own ‘little world’ and focus on only a few subjects and interests. This gives them a distorted view of what is happening because they are so busy concentrating on the strands that they cannot see the tapestry. The world of The Hunger Games is already well on the way to fruition unless humanity has a fundamental reassessment of reality.
The foundations, structure and ‘must haves’ of a Hunger Games society are detailed in a plan being imposed through the United Nations called Agenda 21 which encompasses two related themes of ‘sustainable development’ and ‘biodiversity’. Sustainable development — as in don’t use more than can be replaced — sounds sensible enough at first until you realize what this and biodiversity really mean in the context of the conspiracy.
Agenda 21 was established at the United Nations Conference on Environment and Development in Rio de Janerio, Brazil, in 1992, hosted by Maurice Strong, a Canadian oil and business billionaire and long-time front man for the Rothschilds and Rockefellers. Strong has been a leader of their exploit-the-environment-to-scam-the-people programme which is now in full flow. Strong is a member of the Club of Rome, the environmental Hidden Hand in the Round Table network that includes the Bilderberg Group, Trilateral Commission and Council on Foreign Relations.
Strong said in support of Agenda 21:
‘Isn’t the only hope for this planet that the industrialised civilization collapse? Isn’t it our responsibility to bring that about?’
This is a man who became mega-rich through the oil industry. He now lives in billionaire luxury in China where carbon-emitting industry is booming and he is a director of the Chicago Climate Exchange (largest shareholder, Goldman Sachs), which is ‘the world’s first and North America’s only legally-binding greenhouse-gas emission registry reduction-system for emission sources and offset projects in North America and Brazil’.
The Exchange was established with funding from the Joyce Foundation where Barack Obama was once a director. Strong and Al Gore make money through the Carbon Exchange and other means from the lies they promote about climate change and the solutions they propose. Kate Johnston wrote on the Globalresearch.cawebsite:
‘The same men that sold us the myth of man-made global warming are the same men that sold us the “solution” of a Carbon Tax and Emissions Trading Scheme and now they’re profiting off their lucrative investments which are based on lies.’ (See “The Climate Change Hoax”).
Strong fled to China in 2006 after being accused of corruption with respect to the UN oil for food program.
Climate change propaganda is a No-Problem-Reaction-Solution technique to justify Agenda 21 and its stable-mate the Biodiversity Treaty. This is an internationally-binding document involving nearly 200 countries. The United States signed the treaty, but it was not ratified by the Senate after people like ecologist and ecosystem scientist Dr. Michael Coffman exposed its true consequences and implications. He said that he realized during the 1980s and 1990s that the plan was to use the excuse of protecting the environment to confiscate half the land of the United States.
Similar plans exist for every other country. America may not have ratified the treaty, but it is being implemented by the day. Agenda 21 demands the central global control of all land; all private property; all water sources and distribution; all other resources which includes people in its definition; all energy supplies and distribution and all food production and distribution.
Agenda 21 is called ‘the agenda for the 21st century’ and that refers to global fascism / communism. This is a summary of what Agenda 21 / Sustainable Development / Biodiversity is seeking to impose:
- An end to national sovereignty
- State planning and management of all land resources, ecosystems, deserts, forests, mountains, oceans and fresh water; agriculture; rural development; biotechnology; and ensuring ‘equity’ (equal slavery)
- The State to ‘define the role’ of business and financial resources
- Abolition of private property (it’s not ‘sustainable’)
- ‘Restructuring’ the family unit
- Children raised by the State
- People told what their job will be
- Major restrictions on movement
- Creation of ‘human settlement zones’
- Mass resettlement as people are forced to vacate land where they currently live
- Dumbing down education (achieved)
- Mass global depopulation in pursuit of all the above
This horrific plan is being coordinated through the United Nations, the stalking horse for world dictatorship, via a non-governmental network once called the International Council of Local Environmental Initiatives ICLEI), and now known as Local Governments for Sustainability although still using the shortened name ICLEI. The United Nations is now opening ‘embassies’ around the world called ‘UN Houses’ under the guise of raising awareness of UN activities, but not the activities that people really need to know about. They have opened one in Hunter Square, Edinburgh, Scotland, for example.
Local Governments for Sustainability (ICLEI) and other organisations are integrating the plan into every village, town, city and region and it is already becoming widespread across the world. The organisational infrastructure of Agenda 21 is already fantastic and involves government agencies, non-governmental organisations (NGOs), think-tanks, trusts, foundations, ‘training’ (mind control) operations and ‘initiatives’ which have been building the infrastructure for what they call ‘the post-industrial, post-democratic’ society while the public go about their daily business oblivious of the prison being built all around them by the hour.
Harvey Ruvin, a vice-chairman of ICLEI, was asked how Agenda 21 would affect liberties with regard to the US Constitution and Bill of Rights, private property and freedom of speech. He replied:
‘Individual rights must take a back-seat to the collective.’
The arrogance of these people is breathtaking. The extraordinary network supporting ICLEI and Agenda 21 includes the Rockefeller-sponsored America 2050; United Cities and Local Governments (UCLG); Metropolis; World Economic Forum; United Nations Framework Convention on Climate Change; United Nations International Strategy for Disaster Reduction; World Bank; Clinton Climate Initiative; Climate Group (Tony Blair); World Conservation Union (IUCN); Renewable Energy and Energy Efficiency Partnership; Global Footprint Network; Renewable Energy and Energy Efficiency Partnership; Global Footprint Network; International Centre for Sustainable Cities; Earthquakes and Megacities Initiative and the Stakeholder Forum. These and so many others are working to the same end — Agenda 21 and total human enslavement worldwide, although most of those involved will have no idea that they are building a global prison for themselves and their families.
Another of these front organisations is the World Business Council for Sustainable Development which includes the hideously anti-people Monsanto. Destroying food-growing land, contaminating the countryside with toxins and replacing proper food with deadly and soil-destroying genetically-modified organisms is Monsanto’s contribution to ‘sustainability’. Agenda 21 is operating in more than 600 towns, cities and counties in the United States and expanding by the day.
A member of the Agenda 21 committees in Santa Cruz, California, in the mid-1990s said that the proposals he heard were so crazy that he laughed at them because they could never happen. These included that ‘Mother Earth’s surface was not to be scratched’; humans should be concentrated in settlement zones; education should focus on the environment as a central organising principle and all aspects of life covered by Agenda 21, but all of these crazy plans are now being introduced. It’s all happy, feely, smiling faces and how we care, when the truth is that Agenda 21 is a vicious, brutal, heartless strategy to impose a global Orwellian state.
Agenda 21 manipulators either create or hijack some local organisation or other, many of them in locations with large populations, and they have their (controlled) leadership to agree the Agenda 21 blueprint for their community together with any uninformed, unwitting idiots who can be sold a human nightmare as saving the planet. This allows them to claim that decisions were made after ‘public participation’ when that would have been the last thing they wanted, and 99 percent of the ‘community’ has never heard of Agenda 21 let alone had their say on it. They want no democracy which is why these people talk privately, sometimes even publicly, about the post-democratic, post-industrial society.
They want to control every man, woman and child on the planet — everyone and everywhere and every resource, water source and piece of land. To do this they need a global structure of fascist control that goes right down into every local community with the jackboots at local level enforcing the will of the global centre. This is why there is so much emphasis on local authorities and town and city authorities in Agenda 21.
There is a ‘training organisation’ called Common Purpose (common purpose, common consensus, everyone the same) which has been paid very large amounts of money by governments and local authorities, police forces and other institutions of state to ‘train the leaders’ of the post-democratic, post-industrial society. Common Purpose was heavily represented in the Leveson ‘inquiry’ leading to new media laws in Britain. It is not a training programme; it is a programming programme and turns out unquestioning zombie administrators who serve the god of Agenda 21 and the associated European Union. The theme of ‘common’ also applies to the ever greater standardisation of laws and regulations and constant reference to ‘international law’. This is the unfolding global dictatorship of Agenda 21. What do you need to be a global dictator? Laws that everyone on the planet must obey — international law and the standardisation of global regulation.
Figure 1: The demand in Agenda 21 for a massive cull of the population can be understood when you see how much of America is designated for no human activity.
You can see The Hunger Games connection when you look at the official Biodiversity wish-for map of the United States in Figure 1. The red areas are designated for no human use and most of the rest of America is confiscated for little and highly-regulated use. The mass of the population would be concentrated in high-rise, densely-packed ‘human settlement zones’ and denied access to something like 80 percent of present day America. It is without question the world of The Hunger Games with a globally-enforced top-down hierarchy that has a world government using its world army and police force to impose its will at regional and local levels (sectors). The Rockefeller-funded America 2050 has produced a map of the new United States divided into eleven ‘megaregions’ and includes parts of Canada (Figure 2). Seattle, Portland and Vancouver, British Columbia, become the megaregion known as ‘Cascadia’ and this regional system comes under the collective name of ‘megalopolis’ which is Greek for large city or great city. America, Canada and Mexico are due to merge to form the North American Union in line with the European Union blueprint.
Figure 2: The Rockefeller-funded America 2050 map of America and Canada divided into megaregions.
The European Union is planned to be broken up into regions and the same structure is in development all over the world. The map of the new Europe has regions from different countries linked up with regions in other countries to end any vestige of national sovereignty or even national existence (Figure 3). This is a global plan with its fierce central control hidden behind its lower elements such as the European Union and local government. What is planned would clearly require a fantastic reduction of the global population and this is indeed what Agenda 21 / Sustainable Development / Biodiversity demand.
Figure 3: The European Union has the same regional structure in its sights.
The e-book Agenda 21: Your Life In Their Hands can be downloaded here.
Icke, David. The Perception Deception. Ryde: David Icke Books, 2013.
Julian Websdale is an independent researcher in the fields of esoteric science and metaphysics, and a self-initiate of the Western Esoteric Tradition. His interest in these subjects began in 1988. Julian was born in England, received his education as an electronic and computer engineer from the University of Bolton, served in a Vaishnava monastery during 2010, and has travelled to over 21 countries. Julian is also a member of the Palestinian Solidarity Campaign.
During the 1990’s the conventional economic wisdom supported the repeal of Glass-Steagall. However, “10 years later, the end of Glass-Steagall has been blamed by some for many of the problems that led to last fall’s (2008) financial crisis. While the majority of problems that occurred centered mostly on the pure-play investment banks like Lehman Brothers, the huge banks born out of the revocation of Glass-Steagall, especially Citigroup, and the insurance companies that were allowed to deal in securities, like the American International Group, would not have run into trouble had the law still been in place.”
This assessment by Cyrus Sanati, also seems to be the typical perception, now that the anemic rescue of the economy struggles to claw back to pre 2008 levels. The separation of commercial banks and investment banking was a cornerstone in finance, since the Banking Act of 1933 established a protective firewall. The Corporatocracy culture that operates as todays dominate economic model, adopts the “Too Big To Fail” paradigm. Tapping an unending stream of capital for acquisitions, mergers and poison pill financing to fend off unwanted suitors, is a continued requirement to survive in a global investment environment, where soveriegn wealth funds operate as preparatory pirates.
Commercial banks once had a clear mission statement and purpose, underwriting business and mortgage loans. Since Investment Banks, now allowed to access the Federal Reserve discount window programs, because they are now considered depository institutions, the impact of the repeal of Glass-Steagall becomes evident.
The financial mortgage meltdown, as a primary cause of the collapse of the economy, has never been resolved. Bloomberg reports in Basel Spurs Big-Bank Borrowing From U.S. Home Loan Banks.
“Lending at the 12 regional Home Loan Banks rose 30 percent to $492 billion between March of 2013 and December 2013, largely the result of advances made to JPMorgan, Bank of America Corp., Wells Fargo & Co. (WFC) and Citigroup Inc., according to a report released today by the Federal Housing Finance Agency Office of the Inspector General.
The concentration of Home Loan Bank lending in four large institutions could present safety and soundness risks, the report said. In addition, auditors questioned whether lenders created to support housing finance should be providing funds so banks can meet standards set under the international Basel III accord.”
Now does anyone seriously expect that the money center banks dedicated their capital to fund mortgages for the masses? The notion that such mega institutions prefer to function as commercial lenders is a stretch at best. Nevertheless, the investment banking culture is changing out of necessity. The Volcker rule has taken its toll on the whales of finance.
Over two years ago, the announcement that Citigroup to Close Prop Trading Desk, was news. Even before that shift, the banksters began plotting to circumvent the regulator restrictions. “In October 2010, the proprietary trading group at Goldman Sachs left the bank to start a similar operation at Kohlberg Kravis Roberts, the private equity giant. JPMorgan Chase moved its proprietary desk out of its investment bank and into its asset management unit last year, and Morgan Stanley has said it will spin its proprietary operation into a separate entity later this year.”
A prominent proponent of restoring Glass-Steagall has been the Larouche Pac.
“Glass-Steagall is the indispensable first step to global economic recovery. It will immediately halt the onset of hyperinflation, remove government commitment from bailing out toxic debts, end too-big-to-fail banks, and force a separation of commercial banking functions from investment banking functions, thus cleaning up the nation’s banking system to make way for real, long-term investments.
There are now two bills in each house calling for the restoration of President Roosevelt’s 1933 Glass-Steagall law. H. R. 129 & its Senate companion bill S. 985, introduced by Rep. Marcy Kaptur and Senator Tom Harkin respectively, and most recently, S. 1282, known as the “21st Century Glass-Steagall Act,” championed by Senator Elizabeth Warren, whose companion House bill, H.R. 3711 was recently introduced on December 11, 2013.”
It is disappointing that progressive collectivists are leading the effort for a return to a law that served well for decades. The absence of bipartisan support is disturbing. Lefty loons embrace Elizabeth Warren for many foolish reasons. In spite of this, her claim that, “Reintroducing Glass-Steagall will make it so depositor’s money cannot be used for the derivatives market” is a desired objective.
When Yaron Brook and Don Watkins argue in Forbes, Why The Glass-Steagall Myth Persists, they seem indifferent about accelerating the “Too Big To Fail” mentality that became the operative political concern, as the megabanks took on more leverage and risk.
“In 1999, President Clinton signed GLB into law. Although it left the bulk of Glass-Steagall in place, it ended the affiliation restrictions, freeing up holding companies to own both commercial and investment banks.
There is zero evidence this change unleashed the financial crisis. If you tally the institutions that ran into severe problems in 2008-09, the list includes Bear Stearns, Lehman Brothers, Merrill Lynch, AIG, and Fannie Mae and Freddie Mac, none of which would have come under Glass-Steagall’s restrictions. Even President Obama has recently acknowledged that “there is no evidence that having Glass-Steagall in place would somehow change the dynamic.”
Of course, the establishment political class would never admit that their financial donors and patrons must hinder their unbridled trading strategies. The point of the proposed bill, 21st Century Glass-Steagall Act of 2013 or any other legislation that attempts to reign in the excesses of the banking system is that the political will is entirely absent to go against the banksters. Enactment of an updated Glass-Steagall is certainly not the definitive answer to an unsustainable debt ridden financial fiat banking system. Yet, where does one start to build public critical mass to replace the private Federal Reserve monopoly on money, with economic commerce, that is not the prisoner of banking exploitation? The disastrous institution that fails us all is the current banking cartel.
No one has ever claimed that the financial markets are a level playing field. Equities, bonds, currencies, options and futures are not arenas that operate by equivalent standards for all parties. Great fortunes were built not by chance, but on superior information, known to the few. Professional traders are not risk gamblers, but operate on the premise of special advantage. Through advance and proprietary techniques that reduce exposure hazards and provide exclusive head start triggers, which virtually guarantee profits, the elite firms dominate Wall Street.
Business Week states in the article, Is High-Frequency Trading Insider Trading?, that
“Classically defined, insider trading means having access to material, non-public information before it reaches the rest of the market; it’s like getting a heads-up about a merger before it’s announced, or maybe a phone call from a Goldman Sachs (GS) board member saying that Warren Buffett is about to invest $5 billion in the bank.”
With the introduction of super computers and Financial Algorithmic Trading, the era of generated trading strategies emerged that fill automatically, when predetermined prices are reached. Some would argue that exchanges were simply applying the latest technology to the time honored system of flipping positions.
Now we live in the High-Frequency matrix, based upon millisecond reactions, which activates on information that is not offered to everyone at the same time. Forbes explains accordingly in High Frequency Insider Trading – And It’s Completely Legal!
“According to a team of Wall Street Journal reporters from an article on June 12, the practice works to the advantage of professional traders. “Economic reports from public universities, trade groups and other nongovernmental organizations can move markets as surely as official data from the U.S. government,” according to the Journal’s team of four reporters: Brody Mullins, Michael Rothfeld, Tom McGinty, Jenny Strasburg. “But unlike government reports, where pains are taken to make certain no one gets them ahead of time, few rules control release of nongovernmental economic reports. Unknown to many investors, selling early access is routine.”
Access to this highly valuable information is the key. And such access comes at a price. Rapid traders pay information companies like Thomson Reuters thousands of dollars each month for a look at such reports, moments before they are widely disseminated. And it’s in those few key seconds, that they make their killing.”
Seemingly, this high-tech access to supercharged information is the newest version of insider information. The following assessment is also from the same Business Week account.
“New York Attorney General Eric Schneiderman has called HFT “insider trading 2.0″ on a number of occasions. His office is looking into the relationships between traders, brokers and exchanges and asking whether it all needs to be reformed. The FBI spent the last year looking to uncover manipulative trading practices among HFT firms; the federal agency is now asking speed traders to come forward as whistleblowers.”
Chicago is not much different from their Wall Street exchange cousins. Litigation over this practice is referenced in the report, CME Sued For Giving “High-Frequency Traders Peek At Market” Since 2007.
“In a lawsuit that was just filed by lead plaintiff William Charles Braman, seeking class-action status, and filed on behalf of all users of real-time futures market data and futures contracts listed on the CBOT and CME from 2007 to now, the CME is alleged to have sold order information to high-frequency traders ahead of other market participants.
Apparently it took the general public a Michael Lewis book to reread out post from October 2012 in which we showed that an estimated over 30% of CME revenues were made from HFT – in other words from selling proprietary data in direct feeds to high-paying subscribers, that hits collocated servers ahead of the consolidated tape.”
Well, what the layman would see as obvious, influential security lawyers see as neat ambiguity. The Forbes story continues.
“But it is legal, and so is trading on the advance peeks,” the Journal reported. “Even as securities rules bar companies from selective data disclosure, and as authorities vigorously pursue insider trading in all its forms, no law prevents investors from trading on nonpublic information they have legally purchased from other private entities. Trading would be illegal only if the information was passed through a breach of trust, said securities lawyers.”
It should be clear that the financial system is designed to accommodate creative and innovative methods of price manipulation. The defenders of “Crony Capitalism” see such stratagems as a 21th century sophisticated version of robber baron corporatism, in the fine tradition of Jay Gould and James Fisk. Clipping an ensured few cents on billions of transactions is surely a slick system.
Fabricating automatic returns is bad enough, but what is the public risk of producing a real panic when High-Frequency momentum turns into a full propelled blow off?
When a robot computer generates buy or sell orders, the difference between winning and losing is based upon the speed of the information used to place and execute orders. If your algobots taps into info, not available to the entire market, the game is rigged.
Matthew O’Brien in Everything You Need to Know About High-Frequency Trading, makes a valid point.
“Every HFT strategy depends on not only being faster than ordinary investors, but being faster than each other too. Anytime somebody comes up with a new way to cut a few microseconds—that is, a millionth of a second—off of trading time, they have to spend whatever it takes to do it. Otherwise, they’ll lose out to their competitors who do.”
Imagine this disconnect with real economic reality that place trades, with little concern if it is a long or short. Only the speed matters. The conclusion from the Negotium essay Financial Algorithmic Trading, holds true. “Banning the interconnect of proprietary programs that amalgamate directly into the systems on the floor of the exchanges is the only way to prevent the integration of systemic collusion among the 1 and 0 computer programs.”
There’s good propaganda and bad propaganda. Bad propaganda is generally crude, amateurish Judy Miller “mobile weapons lab-type” nonsense that figures that people are so stupid they’ll believe anything that appears in “the paper of record.” Good propaganda, on the other hand, uses factual, sometimes documented material in a coordinated campaign with the other major media to cobble-together a narrative that is credible, but false.
The so called Fed’s transcripts, which were released last week, fall into the latter category. The transcripts (1,865 pages) reveal the details of 14 emergency meetings of the Federal Open Market Committee (FOMC) in 2008, when the financial crisis was at its peak and the Fed braintrust was deliberating on how best to prevent a full-blown meltdown. But while the conversations between the members are accurately recorded, they don’t tell the gist of the story or provide the context that’s needed to grasp the bigger picture. Instead, they’re used to portray the members of the Fed as affable, well-meaning bunglers who did the best they could in ‘very trying circumstances’. While this is effective propaganda, it’s basically a lie, mainly because it diverts attention from the Fed’s role in crashing the financial system, preventing the remedies that were needed from being implemented (nationalizing the giant Wall Street banks), and coercing Congress into approving gigantic, economy-killing bailouts which shifted trillions of dollars to insolvent financial institutions that should have been euthanized.
What I’m saying is that the Fed’s transcripts are, perhaps, the greatest propaganda coup of our time. They take advantage of the fact that people simply forget a lot of what happened during the crisis and, as a result, absolve the Fed of any accountability for what is likely the crime of the century. It’s an accomplishment that PR-pioneer Edward Bernays would have applauded. After all, it was Bernays who argued that the sheeple need to be constantly bamboozled to keep them in line. Here’s a clip from his magnum opus “Propaganda”:
“The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country.”
Sound familiar? My guess is that Bernays’ maxim probably features prominently in editors offices across the country where “manufacturing consent” is Job 1 and where no story so trivial that it can’t be spun in a way that serves the financial interests of the MSM’s constituents. (Should I say “clients”?) The Fed’s transcripts are just a particularly egregious example. Just look at the coverage in the New York Times and judge for yourself. Here’s an excerpt from an article titled “Fed Misread Crisis in 2008, Records Show”:
“The hundreds of pages of transcripts, based on recordings made at the time, reveal the ignorance of Fed officials about economic conditions during the climactic months of the financial crisis. Officials repeatedly fretted about overstimulating the economy, only to realize time and again that they needed to redouble efforts to contain the crisis.” (“Fed Misread Crisis in 2008, Records Show”, New York Times)
This quote is so misleading on so many levels it’s hard to know where to begin.
First of all, the New York Times is the ideological wellspring of elite propaganda in the US. They set the tone and the others follow. That’s the way the system works. So it always pays to go to the source and try to figure out what really lies behind the words, that is, the motive behind the smokescreen of half-truths, distortions, and lies. How is the Times trying to bend perceptions and steer the public in their corporate-friendly direction, that’s the question. In this case, the Times wants its readers to believe that the Fed members “misread the crisis”; that they were ‘behind the curve’ and stressed-out, but–dad-gum-it–they were trying their level-best to make things work out for everybody.
How believable is that? Not very believable at all.
Keep in mind, the crisis had been going on for a full year before the discussions in these transcripts took place, so it’s not like the members were plopped in a room the day before Lehman blew up and had to decide what to do. No. They had plenty of time to figure out the lay of the land, get their bearings and do what was in the best interests of the country. Here’s more from the Times:
”My initial takeaway from these voluminous transcripts is that they paint a disturbing picture of a central bank that was in the dark about each looming disaster throughout 2008. That meant that the nation’s top bank regulators were unprepared to deal with the consequences of each new event.”
Have you ever read such nonsense in your life? Of course, the Fed knew what was going on. How could they NOT know? Their buddies on Wall Street were taking it in the stern sheets every time their dingy asset pile was downgraded which was every damn day. It was costing them a bundle which means they were probably on the phone 24-7 to (Treasury Secretary) Henry Paulson whining for help. “You gotta give us a hand here, Hank. The whole Street is going toes-up. Please.”
Here’s more from the NYT:
“Some Fed officials have argued that the Fed was blind in 2008 because it relied, like everyone else, on a standard set of economic indicators. As late as August 2008, “there were no clear signs that many financial firms were about to fail catastrophically,” Mr. Bullard said in a November presentation in Arkansas that the St. Louis Fed recirculated on Friday. “There was a reasonable case that the U.S. could continue to ‘muddle through.’ (“Fed Misread Crisis in 2008, Records Show”, New York Times)
There’s that same refrain again, “Blind”, “In the dark”, “Behind the curve”, “Misread the crisis”.
Notice how the Times only invokes terminology that implies the Fed is blameless. But it’s all baloney. Everyone knew what was going on. Check out this excerpt from a post by Nouriel Roubini that was written nearly a full year before Lehman failed:
“The United States has now effectively entered into a serious and painful recession. The debate is not anymore on whether the economy will experience a soft landing or a hard landing; it is rather on how hard the hard landing recession will be. The factors that make the recession inevitable include the nation’s worst-ever housing recession, which is still getting worse; a severe liquidity and credit crunch in financial markets that is getting worse than when it started last summer; high oil and gasoline prices; falling capital spending by the corporate sector; a slackening labor market where few jobs are being created and the unemployment rate is sharply up; and shopped-out, savings-less and debt-burdened American consumers who — thanks to falling home prices — can no longer use their homes as ATM machines to allow them to spend more than their income. As private consumption in the US is over 70% of GDP the US consumer now retrenching and cutting spending ensures that a recession is now underway.
On top of this recession there are now serious risks of a systemic financial crisis in the US as the financial losses are spreading from subprime to near prime and prime mortgages, consumer debt (credit cards, auto loans, student loans), commercial real estate loans, leveraged loans and postponed/restructured/canceled LBO and, soon enough, sharply rising default rates on corporate bonds that will lead to a second round of large losses in credit default swaps. The total of all of these financial losses could be above $1 trillion thus triggering a massive credit crunch and a systemic financial sector crisis.” ( Nouriel Roubini Global EconoMonitor)
Roubini didn’t have some secret source for data that wasn’t available to the Fed. The financial system was collapsing and it had been collapsing for a full year. Everyone who followed the markets knew it. Hell, the Fed had already opened its Discount Window and the Term Auction Facility (TAF) in 2007 to prop up the ailing banks–something they’d never done before– so they certainly knew the system was cratering. So, why’s the Times prattling this silly fairytale that “the Fed was in the dark” in 2008?
I’ll tell you why: It’s because this whole transcript business is a big, freaking whitewash to absolve the shysters at the Fed of any legal accountability, that’s why. That’s why they’re stitching together this comical fable that the Fed was simply an innocent victim of circumstances beyond its control. And that’s why they want to focus attention on the members of the FOMC quibbling over meaningless technicalities –like non-existent inflation or interest rates–so people think they’re just kind-hearted buffoons who bumbled-along as best as they could. It’s all designed to deflect blame.
Don’t get me wrong; I’m not saying these conversations didn’t happen. They did, at least I think they did. I just think that the revisionist media is being employed to spin the facts in a way that minimizes the culpability of the central bank in its dodgy, collaborationist engineering of the bailouts. (You don’t hear the Times talking about Hank Paulson’s 50 or 60 phone calls to G-Sax headquarters in the week before Lehman kicked the bucket, do you? But, that’s where a real reporter would look for the truth.)
The purpose of the NYT article is to create plausible deniability for the perpetrators of the biggest ripoff in world history, a ripoff which continues to this very day since the same policies are in place, the same thieving fraudsters are being protected from prosecution, and the same boundless chasm of private debt is being concealed through accounting flim-flam to prevent losses to the insatiable bondholders who have the country by the balls and who set policy on everything from capital requirements on complex derivatives to toppling democratically-elected governments in Ukraine. These are the big money guys behind the vacillating-hologram poseurs like Obama and Bernanke, who are nothing more than kowtowing sock puppets who jump whenever they’re told. Here’s more bunkum from the Gray Lady:
”By early March, the Fed was moving to replace investors as a source of funding for Wall Street.
Financial firms, particularly in the mortgage business, were beginning to fail because they could not borrow money. Investors had lost confidence in their ability to predict which loans would be repaid. Countrywide Financial, the nation’s largest mortgage lender, sold itself for a relative pittance to Bank of America. Bear Stearns, one of the largest packagers and sellers of mortgage-backed securities, was teetering toward collapse.
On March 7, the Fed offered companies up to $200 billion in funding. Three days later, Mr. Bernanke secured the Fed policy-making committee’s approval to double that amount to $400 billion, telling his colleagues, “We live in a very special time.”
Finally, on March 16, the Fed effectively removed any limit on Wall Street funding even as it arranged the Bear Stearns rescue.” (“Fed Misread Crisis in 2008, Records Show”, New York Times)
This part deserves a little more explanation. The author says “the Fed was moving to replace investors as a source of funding for Wall Street.” Uh, yeah; because the whole flimsy house of cards came crashing down when investors figured out Wall Street was peddling toxic assets. So the money dried up. No one buys crap assets after they find out they’re crap; it’s a simple fact of life. The Times makes this sound like this was some kind of unavoidable natural disaster, like an earthquake or a tornado. It wasn’t. It was a crime, a crime for which no one has been indicted or sent to prison. That might have been worth mentioning, don’t you think?
More from the NYT: “…on March 16, the Fed effectively removed any limit on Wall Street funding even as it arranged the Bear Stearns rescue.”
Yipee! Free money for all the crooks who blew up the financial system and plunged the economy into recession. The Fed assumed blatantly-illegal powers it was never provided under its charter and used them to reward the people who were responsible for the crash, namely, the Fed’s moneybags constituents on Wall Street. It was a straightforward transfer of wealth to the Bank Mafia. Don’t you think the author should have mentioned something about that, just for the sake of context, maybe?
Again, the Times wants us to believe that the men who made these extraordinary decisions were just ordinary guys like you and me trying to muddle through a rough patch doing the best they could.
Right. I mean, c’mon, this is some pretty impressive propaganda, don’t you think? It takes a real talent to come up with this stuff, which is why most of these NYT guys probably got their sheepskin at Harvard or Yale, the establishment’s petri-dish for serial liars.
By September 2008, Bernanke and Paulson knew the game was over. The crisis had been raging for more than a year and the nation’s biggest banks were broke. (Bernanke even admitted as much in testimony before the Financial Crisis Inquiry Commission in 2011 when he said “only one ….out of maybe the 13 of the most important financial institutions in the United States…was not at serious risk of failure within a period of a week or two.” He knew the banks were busted, and so did Paulson.) Their only chance to save their buddies was a Hail Mary pass in the form of Lehman Brothers. In other words, they had to create a “Financial 9-11″, a big enough crisis to blackmail congress into $700 no-strings-attached bailout called the TARP. And it worked too. They pushed Lehman to its death, scared the bejesus out of congress, and walked away with 700 billion smackers for their shifty gangster friends on Wall Street. Chalk up one for Hank and Bennie.
The only good thing to emerge from the Fed’s transcripts is that it proves that the people who’ve been saying all along that Lehman was deliberately snuffed-out in order to swindle money out of congress were right. Here’s how economist Dean Baker summed it up the other day on his blog:
“Gretchen Morgensen (NYT financial reporter) picks up an important point in the Fed transcripts from 2008. The discussion around the decision to allow Lehman to go bankrupt makes it very clear that it was a decision. In other words the Fed did not rescue Lehman because it chose not to.
This is important because the key regulators involved in this decision, Ben Bernanke, Hank Paulson, and Timothy Geithner, have been allowed to rewrite history and claim that they didn’t rescue Lehman because they lacked the legal authority to rescue it. This is transparent tripe, which should be evident to any knowledgeable observer.” (“The Decision to Let Lehman Fail”, Dean Baker, CEPR)
Here’s the quote from Morgenson’s piece to which Baker is alluding:
“In public statements since that time, the Fed has maintained that the government didn’t have the tools to save Lehman. These documents appear to tell a different story. Some comments made at the Sept. 16 meeting, directly after Lehman filed for bankruptcy, indicate that letting Lehman fail was more of a policy decision than a passive one.” (“A New Light on Regulators in the Dark”, Gretchen Morgenson, New York Times)
Ah ha! So it was a planned demolition after all. At least that’s settled.
Here’s something else you’ll want to know: It was always within Bernanke’s power to stop the bank run and end to the panic, but if he relieved the pressure in the markets too soon (he figured), then Congress wouldn’t cave in to his demands and approve the TARP. Because, at the time, a solid majority of Republicans and Democrats in congress were adamantly opposed to the TARP and even voted it down on the first ballot. Here’s a clip from a speech by, Rep Dennis Kucinich (D-Ohio) in September 2008 which sums up the grassroots opposition to the bailouts:
“The $700 bailout bill is being driven by fear not fact. This is too much money, in too short of time, going to too few people, while too many questions remain unanswered. Why aren’t we having hearings…Why aren’t we considering any other alternatives other than giving $700 billion to Wall Street? Why aren’t we passing new laws to stop the speculation which triggered this? Why aren’t we putting up new regulatory structures to protect the investors? Why aren’t we directly helping homeowners with their debt burdens? Why aren’t we helping American families faced with bankruptcy? Isn’t time for fundamental change to our debt-based monetary system so we can free ourselves from the manipulation of the Federal Reserve and the banks? Is this the US Congress or the Board of Directors of Goldman Sachs?”
But despite overwhelming public resistance, the TARP was pushed through and Wall Street prevailed. mainly by sabotaging the democratic process the way they always do when it doesn’t suit their objectives.)
Of course, as we said earlier, Bernanke never really needed the money from TARP to stop the panic anyway. (Not one penny of the $700 bil was used to shore up the money markets or commercial paper markets where the bank run took place.) All Bernanke needed to do was to provide backstops for those two markets and, Voila, the problem was solved. Here’s Dean Baker with the details:
“Bernanke deliberately misled Congress to help pass the Troubled Asset Relief Program (TARP). He told them that the commercial paper market was shutting down, raising the prospect that most of corporate America would be unable to get the short-term credit needed to meet its payroll and pay other bills. Bernanke neglected to mention that he could singlehandedly keep the commercial paper market operating by setting up a special Fed lending facility for this purpose. He announced the establishment of a lending facility to buy commercial paper the weekend after Congress approved TARP.” (“Ben Bernanke; Wall Street’s Servant”, Dean Baker, Guardian)
So, there you have it. The American people were fleeced in broad daylight by the same dissembling cutthroats the NYT is now trying to characterize as well-meaning bunglers who were just trying to save the country from another Great Depression.
I could be wrong, but I think we’ve reached Peak Propaganda on this one.
(Note: By “good” propaganda, I mean “effective” propaganda. From an ethical point of view, propaganda can never be good because its objective is to intentionally mislead people…..which is bad.)
Sickcare/ObamaCare is fundamentally broken at every level.
The incremental nature of change makes it difficult for us to notice how systems that once worked well with modest costs have transmogrified into broken systems that cost a fortune. Exhibit # 1 is higher education: 40 years ago, four-year public universities were affordable and two-year community colleges were almost free. Now students have to borrow $1 trillion to pay for the exorbitant privilege of higher education.
And no, the difference isn’t that states don’t provide the same funding–the difference is costs have soared while the yield on the investment has plummeted. Please read:
Longtime correspondent Ishabaka (an M.D. with 30+ years experience in primary care and as an emergency room physician) responded to this article with an insider’s account of what happens when greed and cartels take over healthcare.After reading What’s wrong with American hospitals?, a scathing deconstruction of for-profit healthcare, Ishabaka submitted this commentary:
I could have told you what was wrong with our hospital system by 1989 – nobody would listen to me back then.
Up til the ’70’s, almost all hospitals in the United States were not for profit COMMUNITY HOSPITALS. They were LOCAL. The Board of Directors was made up of some senior doctors, maybe the head nurse, and various other prominent local businessmen and professionals. Others (mostly Catholic), were run as non-profits by religious orders. A very few, mostly very small hospitals were for profit, usually owned by a group of doctors, or even one doctor.
The mission of these community hospitals was to provide for the LOCAL COMMUNITY – one and all. Payment was various – private insurance, Medicare, Medicaid, self pay – and the idea was to collect just enough money to keep the hospital going, and provide care for the poor who had no money to pay. If your grandma got bad care – you could go – in person – to the local, say, banker, on the Board of Directors, and tell him – and he would CARE.
THIS SYSTEM WORKED, and kept costs DOWN. Remember, the hospital just needed enough money to stay in the black. Often local wealthy people would will money to the hospital in which they had been cared for.
In the ’80’s – there was the arrival of the for-profit cartels – and I use the world cartels specifically – these were run by people with the sociopathic Goldman Sachs type mentality – their sole goal was to acquire huge sums of money for themselves, their hospital directors, and their SHAREHOLDERS. They used a typical sneaky technique – they’d come into town, and tell the locals they could run the hospital much cheaper, because of their economy of scale. People believed this, and the cartels bought out most of the community hospitals.
I worked at one such for-profit hospital and had a 21-year old indigent man come in who’d been struck by a car while walking, and was rapidly bleeding to death. The hospital administrator refused to open the operating room, even though I had a surgeon right there, willing and able to operate for free to save this young man’s life. The surgeon threw a fit, and he was a big wheel at the hospital and the administrator backed down – otherwise I firmly believe the young man would have died. This was LEGAL back then, before the EMTLA law was passed because similar abuses were rampant NATIONWIDE.
Around this time, the administrators of the remaining community hospitals found out the administrators of the for-profit hospitals were making tens of times their salaries – and bonuses based on profits – and started demanding similar salaries and bonuses based on PROFITS – a contradiction of the old concept of community hospitals (the article does touch on this).
How do you increase hospital profits? Number one – avoid any care for the poor you can weasel out of. Number two – cut staff to the bone and beyond (one of hospital’s biggest expenses). Most American hospitals now have UNSAFE nurse to patient ratios because of this.
As far as patient care goes, nurses are the most important people in hospitals. I know of one lady who DIED while in a monitored bed, and wasn’t found dead until several hours later due to the criminally low nursing staff ratio in a hospital I worked in. I HAD complained about the dearth of nurses, and was threatened with the loss of my job. Another side effect of this is, nursing in hospitals has become unbearable for nurses who really cared about their patients – many good hospital nurses have left hospital work for other fields. The results are appalling.
I saved the life of a patient an unqualified, under-educated nurse gave the wrong medicine to – a medicine that IMMEDIATELY MAKES YOU STOP BREATHING, because it was cheaper for the hospital to hire her than a knowledgeable and experienced nurse. The medicine is pancuronium bromide, if you want to Google it. The nurse didn’t know one of the effects was cessation of breathing – this is Pharmacology for Nurses 101, this drug is used all day long in every operating room in America (where doctors WANT patients under anesthesia to stop breathing, and put them on breathing machines during the surgery – which is very safe if done correctly).
I could go on and on. Simple things, like the instruments you use to suture cuts – community hospitals used to buy Swiss or German made ones that were of the finest quality, sterilize and re-use them over and over. This changed to disposable instruments that sometimes literally fell apart in my hands. Bandage tape that didn’t stick, instead of quality Johnson and Johnson tape – anything to save a buck.
It is not getting better, it is getting worse. The nurses I know tell me hospitals are cutting staff even MORE now in preparation for Obamacare.
I will end with a story that illustrates the difference between Old School and New School hospital administrators.
I had the pleasure of working five years in a real community hospital. One of the senior administrators (R.I.P.) was a gentleman who’d made his fortune in the grocery business. In his late 80’s, he would arrive at the emergency department entrance every morning between seven and eight am, and proceed to walk throughout the hospital. He would ask various and sundry staff how they were getting along – everyone from janitors to senior physicians. If something was amiss – HE RECTIFIED THE SITUATION. Tragically, this hospital was bought out, and is now part of a chain.
I had the displeasure of working in a “community” (really for-profit) hospital with a middle aged administrator who NEVER set foot outside his office or conference rooms – he NEVER appeared in the (very large and busy) emergency department once. This was in the early 90’s, and one year it was revealed that his compensation was $600,000 – and a brand new Lexus as a “performance bonus”. He was on the golf course by three pm every single day. That was the hospital where the woman who was being “monitored” (alarms and all that) was found very cold and dead after a delay of who knows how many hours.
Thank you, Ishabaka, for telling it like it really is. Needless to say, ObamaCare (the Orwellian-named Affordable Care Act–ACA) purposefully ignores everything that is fundamentally broken with U.S. sickcare and extends the soaring-cost cartel system, essentially promising to stripmine the taxpayers of however many trillions of dollars are needed to generate outsized profits for the cartels.
Only those with no exposure to the real costs of ObamaCare approve of the current sickcare system. Government employees who have no idea how much their coverage costs, well-paid shills and toadies like Paul Krugman, academics with tenure and lifetime healthcare coverage–all these people swallow the fraud whole and declare it delicious.
Only those of us who are paying the real, unsubsidized cost know how unsustainable the system is, and only those inside the machine know how broken it is at every level. Greed + cartels = Sickcare/ObamaCare. Love your servitude, baby–it’s affordable, really, really, really it is.
Source: Blacklisted News
The people that work here, own you.
I receive many emails from well-intentioned and intelligent readers who hold up Iceland as a shining example of what America must do in order to save herself. I agree, in principle with the people who wrote to me that we should emulate Iceland. The Icelanders have demonstrated tremendous resilience, courage and vision to overcome and, at least temporarily, defeat the banksters while restoring their economy.
The people of Iceland have more courage in their little finger than America has in its entire being. Iceland’s financial failure forced its government to resign or be removed, and it also caused citizens to re-evaluate the merits of their reckless spending, borrowing and consumption. Just how did Iceland do it?
Iceland’s President Olafur Ragnar Grimmson was interviewed earlier this year at the World Economic Forum in Davos on why Iceland has enjoyed such a strong recovery after it’s complete financial collapse in 2008, while the rest of the West is still mired in debt, poverty and hopelessness to go with empty promises of an economic recovery.
When asked whether Iceland’s policy of letting the banks fail would have worked in the rest of Europe, Grimsson stated:
“… Why are the banks considered to be the holy churches of the modern economy? Why are private banks not like airlines and telecommunication companies and allowed to go bankrupt if they have been run in an irresponsible way? The theory that you have to bail-out banks is a theory that you allow bankers enjoy for their own profit their success, and then let ordinary people bear their failure through taxes and austerity. People in enlightened democracies are not going to accept that in the long run. …“
Imagine that, let the banks fail! Let the criminal bankers take the same risk as any other business venture. Can we imagine Obama ever speaking this way in public? In fact, if the United States was Iceland, President Obama, John McCain, Diane Feinstein, Nancy Pelosi, Harry Reid, Lindsay Graham, Hillary Clinton, Valerie Jarrett, G.W. Bush, G. H. W. Bush, Lloyd Blankfein, Tim Geithner, Hank Paulson, Jon Corzine, Peter Sutherland, Ben Bernanke, et al., would all be in prison.
And nearly six years later, where is Iceland at today? In just the first year following the repudiation of the debt, the Icelanders economy grew by 2.6%. Banks failed, bankers and politicians were jailed and these brave people wrestled control of their lives back.
If the Icelanders could get their hands on Goldman Sachs officials they would. They impeached and convicted corrupt politicians who were in league with Wall Street, many of whom are serving prison sentences. Iceland is on its way to a full economic recovery while still saying no to the corrupt Goldman Sachs influences in Europe. Iceland is saying no to the Bank of International Settlement. Iceland is a beacon of hope for the rest of the G20 nations including the United States. Yet, the courage on display by the Icelanders will never be on display in the United States.
Americans Aren’t Icelanders
There are a number reasons that America will never throw off the shackles of the Bastards from Basel. First and foremost, we, as a country, are just too plain stupid. Through repeated and failed education programs, such as Goals 2000, No Child Left Behind and now the substandard Common Core, Americans lack the basic sense to organize against anything, much less a virulent pack of banksters.
Additionally, at the end of the day, the Icelanders victory will prove to be inconsequential and very temporary. When the international forces align against Iceland for some contrived excuse, their government will collapse like a house of cards and the banksters will be back in control. We have seen it in Egypt, Libya and soon it will be Iceland’s turn.
The Duck Dynasty worshiping, American Idol watching country can’t even find England on a map 65% of the time. A whopping 80% cannot find Iraq on a map, 55% cannot name the Vice President and America reads nearly two whole grade levels lower than they did only a 40 years ago. In short, the rank and file of our citizenry lacks the intelligence to organize their collective shoes in the closet.
Change can be painful and America has become a soft nation. We are not only an ignorant nation, we are the most obese nation on the planet. Most of the people in this country could not fight their way out of a wet paper bag. My military sources tell me that there have been serious discussions among the military leadership about how they would fight a guerrilla war against the bankster occupation forces which will consist mostly of the Chinese and the Russians. What is holding them back is that they do not feel that they can count on the support from the rank and file of this population. The military believes that maybe, on a good day, 2-3% of the adult males would stand with dissident military forces. I never thought I would write this, but the American people are no tougher than the French and the French haven’t won a war in over 200 years.
I do expect that the factions of the military are going to rise and put up some resistance. However, no revolution can be successful without the support of the people.
Well-intentioned people write to me and tell me how 250 million gun owners are going to throw off the chains of slavery. If that were going to happen, it would have happened nearly six years ago. In 2008, the banksters, led by Hank Paulson, helped themselves to our nation’s money and our economy went into free fall. And what did we do to stop the greatest bank robbery in world history? We did nothing!!! Subsequently, we are a defeated nation. With the growing foreign troop presence and the rise of America’s version of the East German Stasi (aka the DHS), we are also an occupied nation. Americans have lost the war and most are unaware that anything has even happened. Hillary Clinton is selling off the assets of this country to the Chinese. The EPA is stealing a million acres of land at a time. Your retirements, IRA’s and bank account will soon be gone. And what will most of America do, change the channel and open another beer.
This is why my analyses and subsequently my writing style changed to more of an adaptation approach. Americans need to be worried about having enough resources to survive the induced social chaos that is coming. Our people must also be able to defend their resources. And finally, you and your family need to develop strategies on how to avoid being induced or forced to into a detention camp. These events are not far away.If you do not know how to pray, now is the time to learn.
Source: The Common Sense Show