I have a message out there to everyone struggling with debt, who has lost their job, their car, or
their home, or who is making the choice between eating and taking the medicines that will ease your
pain; You did NOT deserve this life. You did not do anything wrong. You did not create this mess. It
was created FOR you by a government by the rich, of the rich, and for the rich.
In the coming weeks the cowed corporate media will try to convince you that you yourself are to
blame for your failed state of living; that you made bad choices (remember Bush excusing the housing
bubble by saying that nobody forced people to buy bigger houses?), that you should have had a better
education or chosen a different and more lucrative career?
We live in a nation that has the worst ration of taxes paid for benefits received of any
industrialized nation on Earth. Yes, other nations make you pay taxes as high as the US, but in
those nations you get free medical care and education and good infrastructure. Here in the US you
pay high taxes and are still expected to pay for your own medical care, education, and pay tolls on
the privatized infrastructure that your taxes did pay to build, but which were then sold off to
private corporations. The only thing the government has actually done with regard to your medical
care is block you from buying prescription medicines at lower prices from foreign sources.
So, don't get depressed. get angry. Get very angry. You have been screwed!
M. Rivero - WRH
A Quick Overview of the Stinking Financial Mess
The deficit for 2009 is expected to hit $2 Trillion dollars. Our creditors are balking at the massive spending. The FED proposes that they monetize the debt in lieu of creditors. This is the formula for massive Hyper Inflation.
"Americans should get used to the prospect of trillion-dollar deficits for years to come" -- Barack Obama 1-6-09
What follows is a recap of the money crisis, written since the beginning of 2008. In it I name names and point out just who is responsible for the coming collapse in addition to the major causes of it. It will be clear that it was all a setup, they did it on purpose. There should never have been any bailouts, what was needed are "market corrections". The house bubble was way too high and unsustainable. They were just not affordable to those that bought into them without the liar loans and corruption. The correction will happen anyway and all this bailout money is just putting good after bad. Literally throwing money into the fire trying to put it out. The image to the right shows the long term resets that are still to come in the mortgage markets -- Note the massive pain ahead through 2012.
It is all about the massive spending that has been going on as the final looting of the public. The long time intent has been to bring in one world currency and then one world government. The way to do that is to destroy the dollar and piss the world off because it affects everyone. To do that is to spend and ring up the bills to beyond comprehension and funnel the money to the cronies at the same time, which they have been doing.
Now the so called fix is more money -- now over 12 Trillion dollars -- Update: U.S. Rescue May Reach $23.7 Trillion - Bloomberg.com -- and counting, plus the 11.9+ Trillion debt plus the 104 Trillion unfunded future obligations (Social Security, Medicare etc) plus the Trillions missing out of the Pentagon and all the spending for the latest wars which were all done with supplementals and not on the books etc...
They intend to pay back the massive debt with very diluted dollars, cheap money to them and massive prices to all of us. The way they will prop up the house prices is to devalue the dollar by maybe two thirds. Then everything is 3 times as expensive, and then it will get much worse. See the history of Zimbabwe and 26 other currencies in the past 90 years (further down).
For several months, leaders all over the world are calling for a new global currency -- Sarkozy, Putin, Wen Jiabao, Brown etc... Right to schedule and plan. People in denial will become statistics. Ron Paul and many others like this site have been right all along.
They are using the Hegelian Dialectic or problem reaction solution. They created the problem, profited from it and are now offering up the solution with a bigger solution to come. It will take a couple years, we will go hyperinflation and the public will scream for help and that will bring the new currency. Then the process of debauching it will start over again..
As suspected for many years, the culmination of all the massive looting, world leaders are all calling for a new global financial order, a new currency to replace the USD as the worlds reserve currency. Here’s the CNN headline: "G-20: Shaping a New World Order." Yes, the same thing as the talking heads on the MSM have been telling you for years, that it was a tin foil hat conspiracy. Stop trusting the main stream media! The weekend of Nov 15, 08 there was a meeting of the G20 where they debated on just such a thing. "For the first time, heads of governments from G-20 nations meet together to manage the growing international financial crisis. The focus is on identifying the underlying causes & establishing guiding principles for a global response." -- Cspan. Not surprisingly, it was not broadcast on Cspan. A financial new world order? - Just what they wanted
Dr. Ron Paul on the Global Financial Summit and the drive to a one world global currency. Financial Crisis Tab Astronomical $4.28 trillion dollars and counting..., More than $7.76 Trillion Pledged, $3.18 trillion allocated, Your Future GONE. note: bloomberg pulled the original story - http://www.bloomberg.com/apps/news?pid=20601109&sid=arEE1iClqDrk&refer=home
The total cost of funds committed to the bailout in its various guises has now hit $8.56 trillion dollars, up from $7.76 trillion in just two days after the federal government committed an additional $800 billion to two new loan programs on 11-25-08. Plus there are now $306 Billion (citigroup) + $600 Billion (housing) more pledged. For a new total of 9.466 Trillion. Thereby doubling the national debt in a mere 8 weeks. Update: Now Over $11.7 trillion 3-5-09. This translates into a monetary base increase of 85% over the last two months. This money does not come from some rainy day fund tucked away in the budget somewhere - it is created from thin air, and devalues every dollar in circulation. This will shortly trickle down to the public in the way of massively inflated prices.
While they are talking about $25 Billion for the auto companies or the other half of the $700 Billion of the tarp, the CROOKS have the loaders hauling all the loot out the back doors. It is the great magicians trick, keep you distracted with one hand while the other is doing the business.
$25,867 $28,533 $31,553 for every man, woman and child in america. That amount is about 65% of the GDP of the
U.S. and the GDP for the past several years has been mostly financials ie: wall st. profits and consumer spending. We have been increasingly
de-industrialized for the past 20 years having lost 70+% of our manufacturing business (nafta, gatt..) and that is about to get much
worse. So, with those cash flow profits gone the GDP is going to be hit especially hard. Take 60% off of it and we
instantly fall behind many other countries. When that shoe falls then the global dollar dumping will begin.
They are digging us deeper and deeper in debt for generations to come after hanging Banking and Corporate Bailouts around our necks for the sake of a their self-induced failing economy. The private, run for profit, Federal Reserve has the printing presses cranked on overdrive in order to bailout Wall Street and the big banks, while the homeowner and the middle class see their savings devalued out of existence. It is way past time to END THE FED. That would immediately save the taxpayers $500 BILLION dollars (going to be increasing greatly) a year in interest payments to a Private federal reserve.
The Fed is literally destroying the U.S. money supply; destroying your savings and destroying your economic future. Stopping the Fed's runaway creation of fiat money should be the No. 1 priority of U.S. citizens, but for reasons I've described elsewhere, most U.S. citizens are too brainwashed, dumbed-down and gullible to believe they're being royally ripped off by an unprecedented fraud masterminded by a privately-owned bank called the Federal Reserve.
Just to give you an idea about this mass of money, a 'mere' $2 Trillion dollars would provide solar power, 24 kwh a day (twenty 150 watt panels), for each of the 97 million houses in the US. Or, $2 Trillion dollars would flat out buy all the subprime mortages that they say are the cause. This is the final looting, the greatest heist in world history. To give you an idea of just how much a trillion dollars is, if you had started spending one million dollars every single day when Christ was born, you still would not have spent one trillion dollars by now. What does one TRILLION dollars look like?. Time to see Money As Debt - Fractional Reserve Banking Exposed - 47 min
House of Representatives Terrorized with Threat of Martial Law Nationwide unless they Pass Bailout - It just passed despite 90+% of the public was Against this Massive Giveaway to the Crooks that caused the problem. Revamped economic bailout passes House
CONgress is supposed to fulfill the will of the people. The phone calls and emails were overwhelmingly against this giveaway. The house had to throttle the emails coming in and actually had to shut down the phone system the week of Sept. 21.
Billions for the bankers -- Debts for the people. Bend over and take it. Inflation is your destiny now that we are under Authoritarian Capitalism - That of the corporations and banks, in other words it is called Fascism. This bailout of now $850 Billion dollars has a name of: Troubled Asset Relief Program bill (TARP) or “Cash for Trash” but more appropiate: Securitized Housing Investment Trust (SH**). They are just sticking the money into their own pockets, using it for multi Million dollar bonuses, buying other banks thus further consolidating into just a very few mega banks.
"Despite the long-term damage to the economy inflicted by the government's interference in the housing market, the government's policy of diverting capital to other uses creates a short-term boom in housing. Like all artificially-created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing. Perhaps the Federal Reserve can stave off the day of reckoning by purchasing GSE debt and pumping liquidity into the housing market, but this cannot hold off the inevitable drop in the housing market forever. In fact, postponing the necessary, but painful market corrections will only deepen the inevitable fall. The more people invested in the market, the greater the effects across the economy when the bubble bursts."
-- Ron Paul September 10, 2003 - Foretelling the future crisis
YouTube - Peter Schiff Was Right 2006 - 2007
The Grand Merger! - After the Deliberate Destruction of the Dollar
The Bailout Lie Exposed: Financial "Big Boys" Never Intended To Lend Out Their Windfall
Great TARP Bait & Switch - Now Paulson says Treasury won't buy those "Trouble Assets"
Not one penny goes to main street or loans or anything that the public has been told thus far by Obama, Bush, McCain, Paulson or anyone else trying to sell this pile of crap to the American public. This
$700 $850 Billion Bailout package is aimed solely at the froth on
Wall St., the speculators on Wall St., the nonproductive people on Wall St., the certifiably smart masters of the universe like secretary
of the treasury Henry Paulson who created these financial weapons of mass destruction
(Derivatives). This is all about protecting foreign creditors like the peoples republic of China. It has nothing to do with the underlying
problems like housing.
Just what we thought, now 5 weeks later: Fed Defies Transparency Aim in Refusal to Disclose Where $2 Trillion went in Bailout
and Bailout Price Tag: $3.5T So Far, But 'Real' Cost May Be Much Higher
and Bail-Outrage: Misuse of Funds, Lack of Transparency a National Disgrace.
During the week of Sept. 22 the fed pumped $188 Billion dollars a day into the system, for 5 days that works out to be $940 Billion dollars. Additionally there was $630 Billion stuffed somehow into the coffers, all this during the debate of the
$700 $850 Billion dollar
'rescue' plan. October 2nd the national debt jumped to over $10 Trillion dollars.
For the first 2 weeks in October: Banks and dealers' overall direct borrowings from the Fed averaged a record $437.53 billion per day in the week ended October 15, topping the previous week's $420.16 billion per day. This works out to be just over $6 Trillion Dollars that were pumped into the system for just those 2 weeks. This is completely Out of Control. They are totally destroying the value of the dollar.
Now, according to Michael Hudson, chief financial advisor for Dennis Kucinich: "Well, what upsets the Europeans and the foreigners is that the US plan has done nothing at all about the debt crisis itself. It’s bailed out the creditors, but not a penny of the actual debts, the subprime mortgage debts, are addressed. Without any of the media knowing, the Federal Reserve over the last few months has given $850 billion of cash for trash already. This is what the $700 billion discussion in Congress was supposed to be about, but the Fed, without anyone knowing, has already been exchanging these securities. And the securities essentially have been swapped by the US bankers to their pals and not done anything at all to write down the actual subprime debts. There’s a big attempt to blame the victim now. And if you add up all of the subprime bad loans and defaults, that’s altogether $1 trillion. So far, the government has given away $6 trillion already to Wall Street. That’s much more than any of the subprime debt. And the volume of derivative trade has been estimated at $450 trillion, an unbelievable amount. So nobody has any idea about how much money is at stake." Derivatives defined.
McCain and Obama both voted yes for the bailout. Infact, Obama pushed very hard and rallied for it. At a 2004 hearing see Democrat after Democrat covering up and attacking the regulations to protect Fannie Mae and Freddie Mac (their Cash Cows) that are now destroying our economy because they were allowed to cheat. Goldman Sachs Bribed Senate To Pass Bailout Bill, Goldman Sachs 2008 Contributions to CONgress. Many Millions of dollars were contributed to the campaigns of McCain and Obama by the thieves of Wall Street this year. By far the lions share went to Obama. This tells you for whom they answer to and it is Not "We the People." This is a bit shocking, maybe someone can tell me how "homemakers" can come up with over $500,000 to hand to Obama. Totals are over: $426,903,591 to Obama so far. That is for a job that pays roughly $1.6 million dollars over it's 4 year course. Can you not see the massive amount of Graft and Corruption that underlies this position.
Vote third party in the Presidential election. Vote out the Congresspeople that voted for the bailout.
Now it comes out that in 2001 Obama did an interview wherein he desires to re-distribute the wealth and that administration order would be the best way to do it. This is in regards to the civil rights movement therefore it is implicit where the destination is. Underlying this is the long standing push for reparations. Be Very Carefull what you wish for, you just might get it.
"If the American people ever allow the banks to control the issuance of their currency, first by inflation, and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property, until their children wake up homeless on the continent their fathers conquered. The issuing power of money should be taken from banks and restored to Congress and the people to whom it belongs. I sincerely believe the banking institutions having the issuing power of money, are more dangerous to liberty than standing armies." -- Thomas Jefferson
"The liberty of a democracy is not safe if the people tolerate the growth of private power to the point where it becomes stronger than the democratic state itself. That in its essence is fascism — ownership of government by an individual, by a group or any controlling private power." -- Franklin D. Roosevelt
Note: Another facet with our current situation is that the bush admin has committed so many treasonous actions in the past 7+ years and they cannot allow themselves to leave office. If they ever do then they instantly will be held to actionable account for their transgressions against the people of these united States. Justice after Bush, Prosecuting an outlaw administration, Ralph Nader: "Things Are a Lot Worse than We Thought!", Hearing on Limits of Executive Power 7-25-08 Vincent Bugliosi, and here, and here, The Prosecution of George W. Bush for Murder by Vincent Bugliosi - Mr. Bugliosi has a stellar record for prosecution and this is a slam dunk.
They know this -- The entire "election" is a farce and charade with these wannabes in the race. These 4 people are the best we can find in the 300+ Million people in the U.S.? There is so much dirt on them all that there is little chance it will ever happen or that a new 'leader' will be installed. If O or M are actually placed then things will never change nor will there be any investigation into the past 8 years of Hell. Just like bush never investigated what clinton did before him, he just continued the status quo then put it into overdrive.
Unfortunately a vast number of people have no idea just how bad things are because the Subverted Media has not told them and they get all their "needed" info from their favorite talking head who would never betray them... See this Interview - Naomi Wolf - Give Me Liberty for an overview of what has happened and a hint of the dire straights we are in. More tad bits of truth - Olbermann: the beginning of the end of America and youtube: U.S. Army prepares to invade U.S. and Is Posse Comitatus Dead? US Troops on US Streets and Chuck Baldwin -- U.S. Army Troops To Serve As U.S. Policemen?. HR 1955 Thought Crime Legislation. Countries and leaders are now asking for One World Government.
Now with all the purposely created economic problems, that were no surprise to anyone with their eyes open, they have been robbing the country and your future this whole time and have now imploded the economy with the results of their massive thieving and transfers of the public wealth to themselves. This final Looting appears to be the last days of the Republic. Carefully crafted by the elite. Now we have leaders from all over the world including Bush, proposing that there be a new global financial order installed. Bush 'Willing' To Talk Global Financial Governance, Globalists Exploit Financial Meltdown In Move Towards One World Currency, EU Leaders Call for Global Currency, "Behind the Panic" Financial Warfare over future of global bank power, Former Kissinger Policy Planner, CFR Member Calls For New Global Monetary Authority, Collapse of US Financial System: The Setting up of a "New Dollar"?.
With this agenda they can now see their long held plans to collapse the United States into a North American Union thus merging it with Canada and Mexico. You would be wise to investigate this now very clear probability further.
Mega-Million Dollar CEO Payouts - Henry Paulson took in $163,987,000 for one month in 2006 while he took in $31 million the whole previous year. It sure sounds like a payoff bonus from Goldman Sachs for him landing his current tryst as head of the Treasury. They did not give it out free and are now getting the kickback for it - $2.5 billion bonus pool for 10,000 Lehmanites? $250-thou per employee, Wall St execs $US33 Billion Bonuses 2007, $62 Billion bonuses 2006
Update: Wall Street Should Be Looking for Bail, Not a Bailout. Forget all this scare and fear based emotional tactics. There is nothing sudden and unknown about this problem. The warnings have been here and many other true news sites, for years. Ron Paul along with many other economists have been warning about the unrestrained and irresponsible spending and deficits for years also. America has been spending like a drunken sailor with absolutely no regard for the future implications. This handout is just more knee-jerk reactions with grave implications to the future of the dollar.
Regarding how fundamentally sound our economy was just weeks ago: our leaders are implying that they were either too stupid to know what has been building up for years, or they are liars. Certainly, any pleas of stupidity remain solidly backed up by actions. But even more fundamentally, these people are liars, always have been, always will be.
Before any money is handed out, let's determine exactly just what the problem is, how it happened and just who is responsible for it. Only then can you make a true decision about what to do. As you will see in the following essay, all pieces were laid in place - many years old regulations were decimated - then they just let the greed of speculators, brokers and banks run loose with their gambling writ large. This was allowed to procede for a few years, getting bigger and bigger until it was a monster many times bigger than the entire value of the world. Derivatives. . . They are the multi trillion pound gorilla in the living room.
A basic premise with the current funding proposals is that it will help to prop up the housing prices. But this is just a temporary band aid which will merely forestall the inevitable further collapse. They cannot prop up the prices because it was an unsustainable bubble and it was deliberately allowed to happen. They only mean to stablize things until the election, after that all bets are off. The looming problem is that prices will drop much farther than where they started the ascent because of the massive long term damage done.
After the dot com bubble and 911 the gov needed something to get the money flowing again so they lowered the rates to record levels and created an artificial stimulation -- massive amounts of easy money at low rates and no docs. Like leaving the keys in the car, someone is going to take it and drive away. "Go out and spend" said the president and people did. They lived high on the hog with refi's and new suv's, boats etc.. The problem is that it all had to be payed back sometime in the future. Many of us did not fall for it and looked at those that did as total fools.
In many areas, house prices climbed way out of the average persons ability to ever be able to pay it but many stupidly thought that it was going to go up forever. Prices in California reached $570,000 median where they were only $170,000 in 1999. That is a bubble. At the peak, ones monthly payment using normal loan docs, would be about $4,500 a month. That is much higher that the average person is able to pay. Simple fact, common sense.
"Hundreds of billions of dollars are going to bail out FOREIGN INVESTORS. They know it, they demanded it, and the bill has been carefully written to make sure that can happen."
- Brad Sherman , D-California
The Government has gone too far with all these open-ended bailouts which are tantamount to rewarding the
foxes Jackals for guarding the hen house after they ate all the chickens. Wall St.
gamblers made all the risky bets in an unregulated setting, thanks primarily to Phil Gramm, Robert Rubin and others, while the taxpayer is going
to be stuck with the cost. We are not the ones responsible for this. Those that are should all go bankrupt, that is how
the market should operate. Here is Ron Paul You're Going To Destroy A Worldwide Economy! video,
and Rep Kaptur on Let's Play "Wallstreet Bailout" The Rules Are... video,
and here is Devvy Kidd on the mess Bailouts: the wound that will keep on hemorrhaging.
In the wake of last week's financial meltdown, Sen. John McCain (R-AZ) has been calling for more regulation and criticizing lax oversight of Wall Street, despite the fact that he and former senator Phil Gramm passed much of the deregulatory reforms that led to the current crisis. Interviewed on CBS today, however, McCain said he does not “regret” championing the deregulation of Wall Street. John McCain: Economic Disaster. Now this does not promote Obama because his economic advisor is Robert Rubin, the same guy that helped push deregulation in 1999. God help us all.
And this: How SEC Regulatory Exemptions Helped Lead to Collapse - "The current excess leverage now unwinding was the result of a purposeful SEC exemption given to five firms. Who were the five that received this special exemption? You won't be surprised to learn that they were Goldman, Merrill, Lehman, Bear Stearns, and Morgan Stanley. You read that right -- the events of the past year are not a mere accident, but are the results of a conscious and willful SEC decision to allow these firms to legally violate existing net capital rules that, in the past 30 years, had limited broker dealers debt-to-net capital ratio to 12-to-1. Instead, the 2004 exemption -- given only to 5 firms -- allowed them to lever up 30 and even 40 to 1." Fannie Mae and Freddie Mac were at 80 to 1 when they failed.
Another factor is that many large entities have been engaging in illegal "naked short selling" for a number of years. The SEC has not been enforcing these type trades. The damage that this has wrought is that any big company can drive down the price of another company by shorting them. Once squashed, then the instigating company comes in and buys them up for pennies on the dollar. Now, shorts are OK but they must either own or borrow the shares prior to the short. The illegal "Naked" part means that the shares have Not been acquired before the short. This has allowed short trades to be much bigger that they ever could have been with little downside to the seller. This has literally caused massive blood baths on wall st.
The so called big 5, led by goldman sachs, have been eating up the market and recently they have been eating each other and the other banks. This is why the recent short sale restrictions were instated however they appear to have not been enforced. When Wamu went down, on it's last day there were still, I believe, 335 Million short positions on them out of 1.7 billion total shares outstanding. They were deliberately destroyed. Now to find out just who had those smoking gun short positions...
With the kindling all in place, similar to leaving the keys in all the cars wherein the penny ante crooks just had to drive them off the lot and strip them down, those in control of the fed, treasury and sec then lit the match. The SEC annulled the "Up Tick" rule in 2007. This has been in place for many years to prevent a continual landslide of share prices by requiring an Uptick before a short can go in. So now we have a bonfire, raging in ferocity, burning up the carcasses of the weak, they make it into a barbecue at the taxpayers tab.
The stage was set, in previous years, and it was allowed to boil up to a festering mess. Everyone was assured by Bernanke, Paulson, Bush and others, for the past several months, that it was all under control. All the while they had the Massive Bailout plan drawn up months ago. That's right, this scheme was drawn up months before and adjusted over the weeks as these immoral vultures waited until just the right time to spring the trap. How very convenient that it all just happens to come to a head ten days before Congress is about to adjourn for the year. Dire warnings of Armageddon and Meltdowns with just a few days to read and understand the whole thing and no time to use common sense.
The latest version had many revisions and was dumped onto Congress. Now it turns out that Pelosi invoked "martial law" rules on the house. "Under “martial law,” the Leadership can file legislation with tens or hundreds of pages of fine print and move immediately to debate and votes on it, before Members of Congress, the media, or the public have an opportunity to understand fully what provisions have been altered or inserted into the legislation behind closed doors." It is a literal bums rush.
"Washington’s bail outs are “socialism for the rich, the well connected and Wall Street; it is the continuation of a corrupt system where profits are privatized and losses are socialized." -- Professor Nouriel Roubini
Meanwhile, the vultures are swarming: Giuliani's law firm seeking bailout business. "Among those who could make money are hedge funds, private equity firms and bankers, not to mention legions of accountants, financial consultants and law firms such as Bracewell & Giuliani". These are the very type of creatures that got us all into this mess. These despicable criminals need jail time and not further profits on the taxpayers back.
So what are the costs? Almost certainly: Higher taxes, Higher interest rates on government debt, Bigger government deficits and a devalued dollar which means more inflation. Sept. 17, 08 the cost was $900 Billion dollars and the next day the plan was to add $700 Billion dollars to that, and that is just the tip of the iceberg. It's Like A Fix For A Junkie!, they are only going to want more! Once defaults spiral out of control we are likely to see the implosion of the $65 Trillion Credit Default Swaps market.
Most people think that the proposed bailout will cost $700 billion. In fact, it is not limited to $700 big ones, and will probably go much higher. Specifically, Paulson's draft bailout plans says: "The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time." At any one time...
"Marc Faber, managing director of Marc Faber Ltd. in Hong Kong, said the U.S. government's rescue package for the financial system may require as much as $5 trillion, seven times the amount Treasury Secretary Henry Paulson has requested."
Most people who follow these matters would trust Faber's assessment way over Paulson's. In his latest blog entry, economist Nouriel Roubini said that "no professional economist was consulted by Congress or invited to present his/her views at the Congressional hearings on the Treasury rescue plan." Roubini added:
"The Treasury plan is a disgrace: a bailout of reckless bankers, lenders and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the US taxpayer. And the plan does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown."
Roubini is right on all counts. So far, more than a 400 prominent economists have urged Congress not to pass the $700 bailout bill. There is growing consensus that the so-called "rescue package" does not address the central economic issues and has the potential to make a bad situation even worse.
"All Hail Caesar Paulson!" The days of the republic are over. Section 8 of the proposed legislation says it all: "Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency." That is complete Tyranny. As for how they came up with the $700 Billion figure: "It's not based on any particular data point," a Treasury spokeswoman told Forbes.com Tuesday. "We just wanted to choose a really large number.".
Just where is this "money" for these unconstitutional loans going to materialize from? As I write this, the people's treasury is now overdrawn just under $9.8 TRILLION dollars, but Congress is going to write more hot checks for BILLIONS of "dollars"? Can you see a pattern here of no end in sight for bail outs and money transfers for the elites largess?
In short, the so-called "mother of all bailouts," which will transfer $700 billion taxpayer dollars to purchase the distressed assets of several failed financial institutions, will be conducted in a manner unchallengeable by courts and ungovernable by the People's duly sworn representatives. All decision-making power will be consolidated into the Executive Branch - who, we remind you, will have the incentive to act upon this privilege as quickly as possible, before they leave office. The measure will run up the budget deficit by a significant amount, with no guarantee of recouping the outlay, and no fundamental means of holding those who fail to do so accountable.
Remember, if these "assets" had any value then the market would buy them up but they are essentially worthless. So the working public gets stuck with only the trash, at the asked for full price, while those that were instrumental in pulling off this massive swindle get the rewards.
What kind of bozos are running this country? America can't even manage it's huge annual deficits which are actually much bigger than stated with off-the-book accounting. The 'official' national debt is nearly $10 trillion. The entitlements programs over the next few decades are in deficit by up to $71 trillion (in present day dollars), the Iraq War is expected to cost taxpayers a total of over $3 trillion while $3.3 trillion is missing from the pentagon plus another $3.4 trillion-off the books-debt (for 06 & 07 only) and another $3 trillion is needed to repair the nation's infrastructure. And now taxpayers are on the hook for the mistakes of the world's largest insurance and mortgage companies and the worst junk held by the financial industry while those responsible have and continue to rake in billions in bonuses? The Fed has already loaned the banks over $1 trillion! Good God. This is indeed America's Financial Apocalypse unfolding before your very eyes.
And thats the bright side of things. The potential downside is if the creditor countries - China, Japan, Saudi Arabia, Russia etc. - say we have had enough and they start dumping their dollar holdings into another currency like the euro, then it is doomsday for us. Indeed, China is already talking about that very thing this past week. It only takes one big guy to start the run and then all you have saved for, all your life, will be evaporated in no time as a very real Weimar style inflation takes hold. Too late: China has asked domestic banks to stop lending to U.S. financial institutions, to prevent losses. Asia Needs Deal to Prevent Panic Selling of U.S. Debt, The inevitable collapse of the dollar - video, In Debt We Trust (Full) - video
Inflation is the hidden tax that we are all increasingly living with since 1913. That is when the unconstitutional and privately held Federal Reserve was instituted in the dead of night on Dec 24 near midnight when all of congress was at home except a very few crooked fools. The dollar has lost over 97% of its value since that infamous date. If we had real constitutional money, as set forth by the founders of this country, then its a sure bet we would be much more prosperous without the looming default of the dollar.
The cancerous disease is fractional reserve lending, the very existence of the Fed, and an unsound monetary system. The only cure is to eliminate the Fed, abolish fractional reserve lending, and put in place a sound monetary system backed by gold.
A mere 4% CPI compounded for just 10 years is a whopping 48% increase of prices on consumables, energy etc. If this bill goes through, then it has been estimated that the CPI will shoot up to 15%, or higher, for a number of years. At the 15% rate, for only 3 years, the increase will be 52%. Conversely your dollar value will go down by the difference.
You have one chance and one chance only to stop this disaster. This is an election year. Call every single incumbent you can, and tell them you will not be forced to pay for other people's reckless mistakes, nor will you vote for anyone who dare suggests that we be forced to pay for other peoples' reckless mistakes. Then get on every BBS, message board, and blog you can and urge others to do the same. If there was ever a time to be "Mad as hell, and I'm not going to take it any more", this is it.
This government of the U.S. is more than totally broke. As David Walker of the GAO tells here and as I have shown on this website for over five years, we are all in a heap of trouble because of the Bush policies of diverting funds which were to pay off "future obligations." These obligations were $72 Trillion several years ago and it has only gotten much worse. Back then it was beyond control; Now the American public are just starting to see what the reckless actions of the government have done. One way to fix it then, was to "Raise income taxes by two-thirds, immediately and forever." Now, in 2008, it is bailouts. That means that they are laying all the greed, corruption and reckless bets of Wall Street onto the public. You will be paying for all this while the few elite took their multi millions in bonuses and ran off smiling last December.
This was a continuation of Clintons raiding the SS trust fund before him. And that is just for Social Security and Medicare. There are other debts accumulating.. Ron Paul is the only person that has been sounding the warning in CONgress for over 30 years, increasingly so especially during the past 5 years, about this problem, apparently to deaf ears while the media has been very silent on this matter till now.
USDX - Index on value of US Dollar
September 18 50 4.75
October 31 25 4.50
December 11 25 4.25
January 22 75 3.50
January 30 50 3.00
March 18 75 2.25
Notice (on the chart above) that value of the dollar falls each time the Fed cuts its interest rate, actually it starts falling just prior on the news that the cut is about to go in. This is a direct cause and effect tantamount to throwing fuel to the inflationary fire which just makes conditions much worse. A most devastating fall happened toward the end of February 08 on the mere news that there was going to be another cut.
On top of this they keep adding massive infusions of cash to the market in order to bail out only those most crooked bankers and investors that have gamed the system the most. They gambled with a leverage/margin of normally 12 to 1 but Bear Stearns is reported to be in there for over 30 to 1. Fannie Mae and Freddie Mac were at 80 to 1 when they failed. The problem gets much worse, when they bundle and create SIVs and CDS' there is a further leverage of leveraged assets. This means that others down the line leverage a multiple times the original multiple. Then they were sold off again and more leverage ensues. Several years ago there were about $70 Trillion in derivatives with leverage reported to be 712 to 1 average. The latest is there was $516 Trillion in derivatives and now I see reports over $1,000 Trillion in derivatives out there. That is
10 20 times the GDP of the entire world. It is far beyond totally absurd.
This is tantamount to an upside down pyramid with a a subprime mortgage held by a dishwasher at the very bottom, holding it all up.
The Quadrillion Dollar Powder Keg Waiting To Blow,
Derivatives the new 'ticking bomb',
The Crushing Potential of Financial Derivatives.
These bailouts and infusions, to prop up the fraudulent system, come out of thin air in that they just print more money but the direct effect is just adding more water to an already watered down dollar. They are not only prolonging the inevitable fall of these crooks on wall street but they are rewarding them with our money. It was their gamble and they should lose and go to jail for their reckless actions. Additionally, those in the Treasury, Fed and SEC should all be held to account for setting this all up... to fail.
It was also the incredibly stupid gamble of all those that bought or refinanced homes since 2004 thinking that prices would always go up. This was the Tulip mania (madness of crowds) all over again. Here is an excellent explanation on The Subprime Mortgage Disaster - Loan sharks wreak havoc on Main Street and Wall Street. In the Heart of the Foreclosure Crisis - vid.
By mid 2004, for me and many others, it has been red alert for the impending crisis knowing that the longer it dragged on the bigger it was going to be. It was reported here and many other places that this was going to be the end result of the feds actions of lowering the interest rate all the way down to 1%. This was done to give an "artificial prosperity" to keep the people happy and kick the already boiling financial mess down the road, they hoped till 2009 for the next president to deal with.
"The taxes cannot be raised much more, so they can go out and borrow money....So then, they go and spend the money, and, lo and behold, there is not enough money to borrow and not enough tax money to go around, so they have to have one more vehicle, and that is the Federal Reserve, and with a computer they can turn a switch and create a billion or $10 billion in a single day and that debases the currency. It diminishes the value of the money and alters interest rates and causes so much mischief, that, if people are concerned about the economy or their standard of living or rising costs of living, this is the source of the problem." Congressman Ron Paul, Congressional Record, April 28, 1997, page H-1902, Federal Reserve Has Monopoly Over Money and Credit in the U.S.
As currency traders react to each new injection of liquidity and the lowering of US interest rates, the dollar keeps losing value. It lost 1% this past week (March 2008) compared to the Euro. It has gone down 6% in the past month, 17% in the last year, and a whopping 31% since late 2005. The Fed should stop cutting rates, which would end that decline.
Our major creditors do not want the weak dollar and thus dump it increasingly. Most intelligent people can see this relationship however the guy that has his hand on the "money eject button" seems to either not have a clue or is deliberately doing this to destroy the dollar and your future. Neither of which is a good thing thus Bernanke is just too dangerous to be allowed to be where he is and do what he is doing. He is quite literally "a weapon of mass destruction."
Now a true free market would have crashed and recovered back in 2004 or so but this is not one of those. To the consternation of those that thought they were in the know and on top of it all is the fact that there is a thing called the "Presidents working group on financial markets" - PWG. This is the infamous Plunge Protection Team PPT that was created just after the 1987 crash. It purpose was to prevent that type of thing from happening again.
Well they have been using it to manipulate indexes on the market thus boosting prices of those stocks that were sinking and make it appear that happy times are here again, over and over... Did you ever wonder why banks and financial institutions were the ones that benefited the most after the last several 3-400 point crashes? Why would anyone be jumping into something that was all bad news, then the next day the market is up 300. Furthermore, it seems to me that would the Government not now own a major amount of those stocks that it propped up in the past? So now they cannot allow them to go down and will do anything to continue this farce and that includes printing money and is the reason for helicopter ben (Bernanke) to arrive on the scene.
The problem, as it has always been is that all money (National Debt., Wars, excess spending..) has to be paid back eventually. If they just keep printing it then that dilutes YOUR money and causes inflation which lags for an amount of time, but it will catch up eventually. Their debts will be left for YOU to pay them back. How they will make you do that is to destroy everyone except for the mega rich, through extreme inflation -- boom/bust cycles, and then take your assets for pennies while you sell everything for anything trying to survive. The bust is in process.
The 1929 crash and depression was similar but different in the way that it was Deflationary because the fed deliberately pulled the money from the public supply and made cash very sparse. No one had any money and no one could pay anyone and everything just crashed. Now heli ben (ben from hell?) seems to think that he is studied in the great depression and he states "He will never allow that to happen again." Thus his intentions to throw money at the problem -- The one that they created in the first place -- but this one will be an Inflationary depression... if not Hyperinflationary Depression.
I do not want to blame this all on Bernanke because, his predecessor, Greenspan laid the perfect foundation of disaster for him. In 1999, Clinton, Phil Gramm, Larry Summers, Robert Rubin and Greenspan pushed through the Gramm/Leach/Bliley act, a historic banking deregulation bill that decimated Depression-era firewalls between commercial banks, investment banks, insurance companies, and securities firms — setting off a wave of merger mania. flashback: CONGRESS PASSES WIDE-RANGING BILL EASING BANK LAWS - NYTimes 11-5-99. "The opponents of the measure gloomily predicted that by unshackling banks and enabling them to move more freely into new kinds of financial activities, the new law could lead to an economic crisis down the road when the marketplace is no longer growing briskly." This acts purpose was to kill the 1933 Glass-Steagal act also called the FDR Federal Banking act. It was instituted at the height of the Great Depression to prevent any funny investing by the banks of their meagre assets, 10% or much less. By killing it the banks and large financial institutions have been free to play the derivatives game to reckless abandon. Just so you know who to blame: Money and Votes in Congress Over Gramm-Leach-Bliley Deregulation.
Furthermore, in the next year, Phil Gramm at the behest of Larry Summers and Robert Rubin slipped in a 262-page measure called the Commodity Futures Modernization Act into a must pass spending bill. This sneaky act deregulated newfangled financial products called swaps and would thus "protect financial institutions from overregulation." This was eight years ago, as part of a decades-long anti-regulatory crusade, Gramm pulled a sly legislative maneuver that greased the way to the multibillion-dollar subprime meltdown and led to the multi-Trillion dollar credit-derivatives market getting completely out of control. This creep - Phil Gramm: Recession Is "Mental," America Is "Nation Of Whiners" - "Let them eat cake?." He was John McCain's financial advisor before that statement and still is hanging in the shadows around the GOPs "chosen one." Phil Gramm: McCain advisor spurred $62 trillion derivatives market that will swamp global markets.
On top of that since 2003 the Bush admin stifled and killed all investigations made by Elliot Spitzer and 49 other attorneys General of the other states into fraudulent loan practices. This allowed the public to use their house as a piggy bank and lenders, brokers and agents to reap a whirlwind of fees on all these new refis and loans. States warned about impending mortgage crisis April 2003, Bush administration, financial industry thwarted efforts to curb greed.
Not only that but in recent testimony under oath by Eric Dinallo, the Superintendent of the New York Insurance Department at the AIG Bailout Oversight Hearing, into the AIG rescue by Paulson, Dinallo testified that funding cutbacks in recent years directed by the Bush-Cheney Administration had reduced the responsible department that should regulate or watch over the $80 trillions in Asset Backed Securities (ABS), which included the toxic sub-prime and Alt-A mortgage securities and much more. The Bush Administration took the staff from more than one hundred people down to one---yes that was not a typo. One as in ‘uno.’
Additionally, by lowering the interest rate well below the real CPI/Inflation rate the central bank is helping securities firms while delaying and deepening a bear market and recession. The long term consequences will be devastating for the dollar. Our status of the worlds reserve currency is pretty much kaput when we are borrowing nearly $3 Billion dollars a day to fund our extreme expenditures. The creditor nations are just plain tired of funding our reckless spending for illegal wars, attacking other innocent nations that just happen to be sitting on tons of oil. Iraq has now cost over $3 Trillion with a long term cost at upto $5 Trillion if we were to leave now. We are now running over $600 Billion in deficits a year with nearly a Trillion in military spending a year, more than the military spending of all other countries in the world combined. There is an old saying "when in a hole, Stop digging." Instead they have accelerated the digging to an extreme rate. The Oil connected War Profiteers in the Bush admin are destroying America with this spending.
For a real shocker, according to a military budget document FY2007, on page 69, there were "Total Liabilities Not Covered by Budgetary Resources" of (1,639,720.6) 2007, (1,614,144.3) 2006. That is over $3.2 Trillion dollars that is kept off the books because it was not funded, yet it was spent! "The Department expects to receive the necessary budgetary resources to cover these liabilities in future budget years." In other words, You will Pay for it but you do not know about it because it is hidden on the books for future payment.
That $3.2 Trillion dollars is on top of at least $3.4 Trillion dollars missing from the Pentagon as of mid 2002. Solari | The Missing Money - Trillions Missing!!. What was stolen / misplaced between 2002 and 2006 is still to be determined but you get the picture. You and your kids and grandkids future has been literally absconded.
If they wanted to help out the economy then they would have left the rates alone back in January especially since they saw that the other cuts did practically nothing positive yet had major negative effects. And please stop bailing out the banks. Some of them just need to go away, it was their bet and they lost. Let them suffer their multi-Billion dollar bonuses. Now, we the taxpayer will be paying for all this for many years to come. It is just a transfer of money from the poor and middle class over to the rich and well off in a way that few will see what really went on.
Homeowners must learn that there are risks to using a home as an ATM. Investors who borrowed to flip condos must learn the downside of such risk. In one of this year's primary debates, Ron Paul said it is not the president's job to run the economy. I'd add that it is not the government's job either. It is each and every citizen's job to manage our own affairs, make our own decisions, bear the fruits or painful consequences and learn our lessons.
The fundamental problem is the Fed itself, which purports to be the great savior of the money system but in fact is its destroyer. By flooding the economy with ever more paper money, it reduces the value of our money – an insidious tax that the governing elites levy in ways that keep the people in the dark.
And here's the heck of it. When the Fed expands the money supply, it can funnel money to the elites long before the people are forced to pay the price. As Rothbard explains, those who get the money first are permitted to use it before prices rise for everyone else. By the time the new money circulates through the economic system and hits everyman’s pocketbook, the elites who received the first round of injections have made off like bandits.
Ron Paul has explained this to Bernanke several times in the past several months but Bernanke just says that the American people will not see much of any effect from the dollars loss of value. That statement is just so completely wrong, how could the rest of congress possibly allow this idiot to continue these insane actions.
Your savings and future are being destroyed. This is the death of the dollar and the warnings have been out on this and other sites for several years now. The USA is increasingly headed toward the precipice of the cliff. See Recession, Weimar_Republic, Hyperinflation, Zimbabwe Hyperinflation and Great_Depression.
Episodes of Hyperinflation thru history
PBS Newshour explains the 2008 credit bubble
Financial Sense Expert ~ Bud Burrell - The Greatest Crime in History audio <==
The Bank Implode-O-Meter - Your play-by-play for the end game of modern banking
The Mortgage Lender Implode-O-Meter - tracking the housing finance breakdown
Bankrate's free rating system for banks, thrifts, credit unions
Compute the Relative Value of a U.S. Dollar Amount, 1774 to Present
Fight Foreclosure: Make ‘Em Produce The Note!
The Subprime Trump Card: Standing up to the Banks
Lessons from Argentina's economic collapse
It will be a long slow burn but their intent is to transfer (steal) all they can in these last days -- massive military spending, Wall Street and Bank/Lender bailouts.
The Social Security and Medicade programs are basically defunct in their future payment ability. The National debt is $9.4 Trillion dollars and heading over $10 Trillion, a massive increase from $5.7T when Bush was 'selected' as our pResident. The CPI, inflation and unemployment rates are several percent higher than reported. Consumer Price Index Soars; Inflation Continues To Accelerate - 12%. The CPI currently does not include food nor energy, furthermore when an indicator gets too high then it has a lesser multiplier on it and conversely if it goes down then the multiplier is increased. This has the desired effect of keeping the figure way understated. Now this is a compounded cumulative savings to the government ie: that a nominal 4% differential over 10 years equates to 54% savings in entitlements and cost of living payments but this is just a major screwing to the recipient. In just the past 10 years, it is estimated that these payments are up to 70% too low because of the aforementioned slight of hand.
What is going to happen is when most of the lowly people of the US are totally spent out then they will revalue the dollar into something called the Amero (as best we know) in the further push to bring in the North American Union. Those that transfered all their money out of the dollar, like cheney did in 2005 and since (Millions, mostly scabbed from his halliburton connections and its War Profiteering during this illegal war), will then come in and buy up everything for pennies on the dollar -- or whatever it is called then and by paying off those debts with worthless dollars. This is exactly how the rothchilds made their fortune in the 1800's.
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Last modified: Thursday, 24-Sep-2020 19:52:06 PDT
I have a message out there to everyone struggling with debt, who has lost their job, their car, or their home, or who is making the choice between eating and taking the medicines that will ease your pain; You did NOT deserve this life. You did not do anything wrong. You did not create this mess. It was created FOR you by a government by the rich, of the rich, and for the rich.
In the coming weeks the cowed corporate media will try to convince you that you yourself are to blame for your failed state of living; that you made bad choices (remember Bush excusing the housing bubble by saying that nobody forced people to buy bigger houses?), that you should have had a better education or chosen a different and more lucrative career?
We live in a nation that has the worst ration of taxes paid for benefits received of any industrialized nation on Earth. Yes, other nations make you pay taxes as high as the US, but in those nations you get free medical care and education and good infrastructure. Here in the US you pay high taxes and are still expected to pay for your own medical care, education, and pay tolls on the privatized infrastructure that your taxes did pay to build, but which were then sold off to private corporations. The only thing the government has actually done with regard to your medical care is block you from buying prescription medicines at lower prices from foreign sources.
So, don't get depressed. get angry. Get very angry. You have been screwed!
M. Rivero - WRH