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Gary Edwards

The Bonds Of August Lunacy - 1 views

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    More boot licking idiocy from well known big government- big Bankster shill, Menzie Chinn.  Great comments though.  These clowns have launched an all out war against the US Constitution and the Tea Party patriots fighting to save this country from Big Banksters and their highly paid political toadies and sycophantic shills suffering from delusional syphilitic miasm.  
Gary Edwards

The Storm After The Calm - 0 views

  • it is now clear that governments prevented a full-scale collapse of the financial system in 2008 by transforming toxic private debt into public debt.
  • But the rule ultimately had the terrifying result of obliging countries to borrow from private banks at market prices to guarantee their treasuries’ integrity.
  • This created powerful barriers to public investment, as government spending was siphoned into massive profits for banks and their shareholders.
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    excerpt:  Indeed, it is now clear that governments prevented a full-scale collapse of the financial system in 2008 by transforming toxic private debt into public debt. It worked then, but it cannot work now, in large part because it contributed to the new, looming crisis in financial markets brought on by countries' soaring public-debt burdens. We cannot blame today's emerging crisis solely on our current and recent governments' actions. For more than 20 years, the world's major capitalist economies have been led to borrow heavily and unabashedly, in large by a new rule, adopted worldwide beginning in the 1970's and 1980's, that tied monetary policy to targets for price growth. This dangerous idea - proposed in France by Jacques Rueff in 1958, adopted throughout Europe over the following two decades, and extended to the European Central Bank - was intended to limit the tendency of capitalist economies to aggravate inflation as soon as they hit full employment. But the rule ultimately had the terrifying result of obliging countries to borrow from private banks at market prices to guarantee their treasuries' integrity. This created powerful barriers to public investment, as government spending was siphoned into massive profits for banks and their shareholders.
Gary Edwards

Microsoft Uses Loopholes To Pay Just 7% Corporate Tax, Cantor Is Hedge Fund's... - 1 views

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    OUTRAGE - Microsoft Uses Loopholes To Pay Just 7% Corporate Tax Eric Cantor Is The Hedge Funder's Best Man In Congress - Washinton Post The Road To Hell Directly Before Us - MUST READ Karl Denninger Obamacare Individual Mandate Battle Reaches Supreme Court DETAILS - Geithner To Announce Backup Plans With No Debt Deal In Place Fed Governor Speaks: More QE Won't Help Growth But Would Spur Inflation How The Two-Party Oligarchy Uses Left-Right Charade To Loot The Country Debt Ceiling Fights Going Back To Eisenhower Florida Rep. Demands Records On Ousted Foreclosure Fraud Investigators Publisher That Owns S&P Kills Ritholtz's Bailout Book Critical Of Ratings Agencies Did S&P flip flop on US debt target? - Reuters The "Solution" to America's Debt Ceiling Crisis: Looting What has Already been Looted
Gary Edwards

The American Spectator : The Boehner Debt Deal and the Govt. Shutdown - 0 views

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    Speaker Boehner continues to insist on negotiating with himself.  CCB solves the crisis and sets us on an unwavering path towards fiscal responsibility.  It's passed the House and is but a few votes short in the Senate.  Instead of forcing the Senate vote, Boehner continues to insist on tweaking more of the same establishment rot that got us into this predicament. So, if Mr. Boehner insists on the insanity of negotiating with himself, here are some useful rules for successful negotiation.   #1.  He who writes first wins ..... #2.  He who speaks last loses ..... Advice to Boehner; the way to win at negotiation, even if caught in the improbable situation of trying to out negotiate yourself, is to shut up and be happy that you wrote (and passed) CCB first. ~ge~
Gary Edwards

How The Two-Party Oligarchy Uses The Democrat Vs Republican Charade To Loot The Country... - 0 views

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    The tragic comedy that is the deficit debate is helping to further expose the opening salvo of another "brutal campaign of economic shock and awe," or as journalistic appeasers would say, "austerity." This debate also helps people to understand how the Democrat Vs Republican charade and the "lesser of two evils" game is played by the banksters - all you have to do is spend about an hour researching it. ..... What has to happen for you to stop being a status quo supporting naïve journalist and realize that we are in the middle of a war? More accurately, it is a slaughter. An all-time record-breaking slaughter…. When I write that Obama is a puppet, some people still get upset with me. Are you kidding me? What kind of president allows this to happen without holding people accountable? What kind of president allows our tax dollars to be taken and handed out as all-time record-breaking bonuses while we have an all-time record-breaking number of people living in poverty? What kind of president puts career-long preeminent economic imperialists Tim Geithner and Larry Summers in charge of our economy, and supports Ben Bernanke's reconfirmation as Fed Chairman? This is all absurd and inexcusable! These three people would be in prison if we lived in a nation ruled by law. Obama is a bullshit artist - Period, Full Stop. This is a quintessential banana republic ruled by a puppet president. If that truth is too much for you to handle, stop reading this right now and go retreat into your 'reality TV' world while you still can…. What will it take to make you understand this? Don't you get it? This is a war! This is a mass slaughter carried out by economic policy. This is the elimination of the existence of a middle class. These are financial terrorists committing crimes against humanity. Our country is being attacked! My family is under attack! My child is under attack! I am under attack! We are under attack!" ......
Gary Edwards

Mish's Global Economic Trend Analysis: Boehner's Credibility Gone in Revised Proposal; ... - 1 views

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    Best Deal You Can Get? Notice the rank and file starting to cave in to Boehner's gaseous proposal. Rep. Steve Chabot, R-Ohio called it "the best deal we can get." No it's not. It's not even the best deal you can't get. The Senate will not go along, so there is nothing to get. As long as you are going to submit proposals you can't get, you may as well make it a good one. $950 billion over 10 years is not a good deal. It's not even a down payment on a good deal, and with that, Boehner just pissed away his credibility. In the end, something will pass. But it will not do a damn thing credible to reduce the deficit. Reid's plan and Boehner's plan are both back-loaded. Republicans had a golden opportunity to attempt to extract some major concessions in return for tiny tax concessions. Instead, they are going to settle for nothing. This fiasco is exactly why Republicans need someone like Chris Christie running for president. No one else has managed to show any leadership.
Gary Edwards

Desperate Bankers Are Begging The Fed To Discuss Default Emergency Plans With Them But ... - 0 views

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    No doubt the Banksters have a plan, and we're watching it role out before our very eyes. The national debt ceiling crisis is the plan! Whether Congress approves or shoots down an increase in the borrowing limit of the government, the Banksters win.  If the the debt limit is raised, the Banksters win in that they can unload that $16.1 Trillion in free taxpayer money at a minimum of 3.25% interest through new Treasury bond initiatives forced by uncontrolled increases in government spending.  They also win in that their hand maiden credit agencies, having insisted on Congressional spending cuts of $4 Trill that are not going to materialize, WILL downgrade the USA credit rating. This will result in interest rates much higher than 3.25%!!! Cha Ching! If the outcome is no debt increase, there will be a constitutional crisis beyond imagination. Banksters always win in a crisis because panicked citizens will trade their constitutionally guaranteed liberty, freedoms and property rights for security and calm. This perhaps translates into a long term cha ching for th eBanksters that will have them owning America. The one outcome where the Banksters don't gain, would be where the debt ceiling is raised enough to cover the obligations of the continuing resolution, but includes serious and immediate across the board spending cuts, caps on future spending increases, and the end of base line budgeting through a Balanced Budget Amendment. Like the CCB; Cut, Cap and Balanced Budget bill the House of Representatives ahs already passed
Gary Edwards

MUST SEE - Felonious Monk Tells Obama "Stop Being A Dickhead And Balance The ... - 0 views

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    Outrageous rant from rapster Felonious Monk.  Very vulgar ghetto speak, but right on target.  Who would have guessed that Felonious is a Tea Party Patriot?  Balance the Budget!  Stop Spending money you don't have.  Stop spending money we have to borrow from the Chicomms!  Great stuff if you can handle the colorful expression.  This is one angry American, and i'm right with him.
Gary Edwards

Occupy Wall Street - End the Fed - Chris Q&A 10-07-11 - YouTube - 2 views

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    Chris Savvindis followup interview, the day after his infamous End the Fed youtube video. If Chris is in any way representative of America's future, there are better days coming. In the interview he explains how his views and opinions were shaped. He's a libertarian steeped in the Austrian School of economics, his education beginning with Peter Schiff. Not surprisingly, Chris is a supporter of Ron Paul, and he takes the time to explain why. Yeah, he is a rockstar and deservedly so.
Paul Merrell

U.S. Banks Enjoy 'Too-Big-To-Fail' Advantage: Fed Study | Fox Business - 0 views

  • A landmark study by Federal Reserve economists found that large U.S. banks enjoy a "too-big-to-fail" advantage in financial markets, confirming the suspicions of many Wall Street critics more than five years after the financial crisis. The series of research papers, published on Tuesday by the U.S. central bank's influential New York branch, suggests the biggest and most complex banks benefited even after the financial crisis from lower funding and operating costs compared to smaller firms. The researchers used data through 2009. The biggest banks also, Fed economists found, can take bigger risks than their smaller peers. While the study did not pinpoint the reason big banks borrow more cheaply, Wall Street critics say it is because investors believe the U.S. government would again rescue them in a panic, despite new rules adopted in the wake of the 2007-2009 crisis and aimed at avoiding future bailouts.
Paul Merrell

The Economic Scam of the Century » CounterPunch: Tells the Facts, Names the N... - 0 views

  • The leaders of the U.S. Senate Banking Committee,  Sen. Tim Johnson (D., S.D.) and Sen. Mike Crapo (R., Idaho),  released a draft bill on Sunday that would provide explicit government guarantees on mortgage-backed securities (MBS) generated by privately-owned banks and financial institutions. The gigantic giveaway to Wall Street would put US taxpayers on the hook for 90 percent of the losses on toxic MBS the likes of which crashed the financial system in 2008 plunging the economy into the deepest slump since the Great Depression. Proponents of the bill say that new rules by the Consumer Financial Protection Bureau (CFPB) –which set standards for a “qualified mortgage” (QM)– assure that borrowers will be able to repay their loans thus reducing the chances of a similar meltdown in the future. However, those QE rules were largely shaped by lobbyists and attorneys from the banking industry who eviscerated strict underwriting requirements– like high FICO scores and 20 percent down payments– in order to lend freely to borrowers who may be less able to repay their loans.  Additionally, a particularly lethal clause has been inserted into the bill that would provide blanket coverage for all MBS  (whether they met the CFPB’s QE standard or not) in the event of another financial crisis. Here’s the paragraph:
  • “Sec.305. Authority to protect taxpayers in unusual and exigent market conditions…. If the Corporation, the Chairman of the Federal Reserve Board of Governors and the Secretary of the Treasury, in consultation with the Secretary of Housing and Urban Development, determine that unusual and exigent circumstances threaten mortgage credit availability within the U.S. housing market, FMIC may provide insurance on covered securities that do not meet the requirements under section 302 including those for first loss position of private market holders.” (“Freddie And Fannie Reform – The Monster Has Arrived”, Zero Hedge) In other words, if the bill passes,  US taxpayers will be responsible for any and all bailouts deemed necessary by the regulators mentioned above.  And, since all of those regulators are in Wall Street’s hip-pocket, there’s no question what they’ll do when the time comes. They’ll bailout they’re fatcat buddies and dump the losses on John Q. Public. If you can’t believe what you are reading or if you think that the system is so thoroughly corrupt it can’t be fixed; you’re not alone. This latest outrage just confirms that the Congress, the executive and all the chief regulators are mere marionettes performing whatever task is asked of them by their Wall Street paymasters.
Paul Merrell

CIA SUCCESSFULLY CONCEALS BAY OF PIGS HISTORY - 0 views

  • May 21, 2014 – The U.S. Court of Appeals for the D.C. Circuit yesterday joined the CIA's cover-up of its Bay of Pigs disaster in 1961 by ruling that a 30-year-old volume of the CIA's draft "official history" could be withheld from the public under the "deliberative process" privilege, even though four of the five volumes have previously been released with no harm either to national security or any government deliberation. "The D.C. Circuit's decision throws a burqa over the bureaucracy," said Tom Blanton, director of the National Security Archive (www.nsarchive.org), the plaintiff in the case. "Presidents only get 12 years after they leave office to withhold their deliberations," commented Blanton, "and the Federal Reserve Board releases its verbatim transcripts after five years. But here the D.C. Circuit has given the CIA's historical office immortality for its drafts, because, as the CIA argues, those drafts might 'confuse the public.'" "Applied to the contents of the National Archives of the United States, this decision would withdraw from the shelves more than half of what's there," Blanton concluded.
  • The 2-1 decision, authored by Judge Brett Kavanaugh (a George W. Bush appointee and co-author of the Kenneth Starr report that published extensive details of the Monica Lewinsky affair), agreed with Justice Department and CIA lawyers that because the history volume was a "pre-decisional and deliberative" draft, its release would "expose an agency's decision making process in such a way as to discourage candid discussion within the agency and thereby undermine the agency's ability to perform its functions." This language refers to the fifth exemption (known as b-5) in the Freedom of Information Act. The Kavanaugh opinion received its second and majority vote from Reagan appointee Stephen F. Williams, who has senior status on the court.
  • On the 50th anniversary of the Bay of Pigs invasion in 2011, the National Security Archive's Cuba project director, Peter Kornbluh, requested, through the FOIA, the complete release of "The Official History of the Bay of Pigs Operation" — a massive, five-volume study compiled by a CIA staff historian, Jack Pfeiffer, in the 1970s and early 1980s. Volume III had already been released under the Kennedy Assassination Records Act; and a censored version of Volume IV had been declassified years earlier pursuant to a request by Pfeiffer himself. The Archive's FOIA request pried loose Volumes I and II of the draft history, along with a less-redacted version of Volume IV, but the CIA refused to release Volume V, so the Archive filed suit under FOIA in 2012, represented by the expert FOIA litigator, David Sobel. In May 2012, U.S. District Judge Gladys Kessler held that Volume V was covered by the deliberative process privilege, and refused to order any segregation of "non-deliberative" material, as required by FOIA.
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  • The Archive appealed the lower court's decision, and with representation from the distinguished firm of Skadden Arps Meagher Slate & Flom, brought the case to the D.C. Circuit, with oral argument in December 2013. The National Coalition for History, including the American Historical Association and other historical and archival professional organizations, joined the case with an amicus curiae brief authored by the Jones Day law firm arguing for release of the volume. Titled "CIA's Internal Investigation of the Bay of Pigs Operation," Volume V apparently contains Pfeiffer's aggressive defense of the CIA against a hard-hitting 1961 internal review, written by the agency's own Inspector General, which held the CIA singularly responsible for the poor assumptions, faulty planning and incompetence that led to the quick defeat of the paramilitary exile brigade by Fidel Castro's military at the Bahia de Cochinos between April 17 and April 20, 1961. The Archive obtained under FOIA and published the IG Report in 1998. The CIA has admitted in court papers that the Pfeiffer study contains "a polemic of recriminations against CIA officers who later criticized the operation," as well as against other Kennedy administration officials who Pfeiffer contended were responsible for this foreign policy disaster. In the dissenting opinion from the D.C. Circuit's 2-1 decision yesterday, Judge Judith Rogers (appointed by Bill Clinton) identified multiple contradictions in the CIA's legal arguments. Judge Rogers pointed out that the CIA had failed to justify why release of Volume V would "lead to public confusion" when CIA had already released Volumes I-IV. She noted that neither the CIA nor the majority court opinion had explained "why release of the draft of Volume V 'would expose an agency's decision making process,'" and discourage future internal deliberations within the CIA's historical office any more than release of the previous four volumes had done.
  • Prior to yesterday's decision, the Obama administration had bragged that reducing the government's invocation of the b-5 exemption was proof of the impact of the President's Day One commitment to a "presumption of disclosure." Instead, the bureaucracy has actually increased in the last two years its use of the b-5 exemption, which current White House counselor John Podesta once characterized as the "withhold if you want to" exemption. The majority opinion also left two openings for transparency advocates. It invites Congress to set a time limit for applying the b-5 exemption, as Congress has done in the Presidential Records Act. Second, it concludes that any "factual material" contained in the draft should be reachable through Freedom of Information requests.
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    "Causing public confusion" is a weak grounds for withholding government records because the agency has the option of issuing clarifying statements. Indeed, much of what government does causes public confusion. Hopefully, the Archive will pursue en banc reconsideration and/or seek Supreme Court review. 
Paul Merrell

UN Report Finds Mass Surveillance Violates International Treaties and Privacy Rights - ... - 0 views

  • The United Nations’ top official for counter-terrorism and human rights (known as the “Special Rapporteur”) issued a formal report to the U.N. General Assembly today that condemns mass electronic surveillance as a clear violation of core privacy rights guaranteed by multiple treaties and conventions. “The hard truth is that the use of mass surveillance technology effectively does away with the right to privacy of communications on the Internet altogether,” the report concluded. Central to the Rapporteur’s findings is the distinction between “targeted surveillance” — which “depend[s] upon the existence of prior suspicion of the targeted individual or organization” — and “mass surveillance,” whereby “states with high levels of Internet penetration can [] gain access to the telephone and e-mail content of an effectively unlimited number of users and maintain an overview of Internet activity associated with particular websites.” In a system of “mass surveillance,” the report explained, “all of this is possible without any prior suspicion related to a specific individual or organization. The communications of literally every Internet user are potentially open for inspection by intelligence and law enforcement agencies in the States concerned.”
  • Mass surveillance thus “amounts to a systematic interference with the right to respect for the privacy of communications,” it declared. As a result, “it is incompatible with existing concepts of privacy for States to collect all communications or metadata all the time indiscriminately.” In concluding that mass surveillance impinges core privacy rights, the report was primarily focused on the International Covenant on Civil and Political Rights, a treaty enacted by the General Assembly in 1966, to which all of the members of the “Five Eyes” alliance are signatories. The U.S. ratified the treaty in 1992, albeit with various reservations that allowed for the continuation of the death penalty and which rendered its domestic law supreme. With the exception of the U.S.’s Persian Gulf allies (Saudi Arabia, UAE and Qatar), virtually every major country has signed the treaty. Article 17 of the Covenant guarantees the right of privacy, the defining protection of which, the report explained, is “that individuals have the right to share information and ideas with one another without interference by the State, secure in the knowledge that their communication will reach and be read by the intended recipients alone.”
  • The report’s key conclusion is that this core right is impinged by mass surveillance programs: “Bulk access technology is indiscriminately corrosive of online privacy and impinges on the very essence of the right guaranteed by article 17. In the absence of a formal derogation from States’ obligations under the Covenant, these programs pose a direct and ongoing challenge to an established norm of international law.” The report recognized that protecting citizens from terrorism attacks is a vital duty of every state, and that the right of privacy is not absolute, as it can be compromised when doing so is “necessary” to serve “compelling” purposes. It noted: “There may be a compelling counter-terrorism justification for the radical re-evaluation of Internet privacy rights that these practices necessitate. ” But the report was adamant that no such justifications have ever been demonstrated by any member state using mass surveillance: “The States engaging in mass surveillance have so far failed to provide a detailed and evidence-based public justification for its necessity, and almost no States have enacted explicit domestic legislation to authorize its use.”
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  • Instead, explained the Rapporteur, states have relied on vague claims whose validity cannot be assessed because of the secrecy behind which these programs are hidden: “The arguments in favor of a complete abrogation of the right to privacy on the Internet have not been made publicly by the States concerned or subjected to informed scrutiny and debate.” About the ongoing secrecy surrounding the programs, the report explained that “states deploying this technology retain a monopoly of information about its impact,” which is “a form of conceptual censorship … that precludes informed debate.” A June report from the High Commissioner for Human Rights similarly noted “the disturbing lack of governmental transparency associated with surveillance policies, laws and practices, which hinders any effort to assess their coherence with international human rights law and to ensure accountability.” The rejection of the “terrorism” justification for mass surveillance as devoid of evidence echoes virtually every other formal investigation into these programs. A federal judge last December found that the U.S. Government was unable to “cite a single case in which analysis of the NSA’s bulk metadata collection actually stopped an imminent terrorist attack.” Later that month, President Obama’s own Review Group on Intelligence and Communications Technologies concluded that mass surveillance “was not essential to preventing attacks” and information used to detect plots “could readily have been obtained in a timely manner using conventional [court] orders.”
  • Three Democratic Senators on the Senate Intelligence Committee wrote in The New York Times that “the usefulness of the bulk collection program has been greatly exaggerated” and “we have yet to see any proof that it provides real, unique value in protecting national security.” A study by the centrist New America Foundation found that mass metadata collection “has had no discernible impact on preventing acts of terrorism” and, where plots were disrupted, “traditional law enforcement and investigative methods provided the tip or evidence to initiate the case.” It labeled the NSA’s claims to the contrary as “overblown and even misleading.” While worthless in counter-terrorism policies, the UN report warned that allowing mass surveillance to persist with no transparency creates “an ever present danger of ‘purpose creep,’ by which measures justified on counter-terrorism grounds are made available for use by public authorities for much less weighty public interest purposes.” Citing the UK as one example, the report warned that, already, “a wide range of public bodies have access to communications data, for a wide variety of purposes, often without judicial authorization or meaningful independent oversight.”
  • The report was most scathing in its rejection of a key argument often made by American defenders of the NSA: that mass surveillance is justified because Americans are given special protections (the requirement of a FISA court order for targeted surveillance) which non-Americans (95% of the world) do not enjoy. Not only does this scheme fail to render mass surveillance legal, but it itself constitutes a separate violation of international treaties (emphasis added): The Special Rapporteur concurs with the High Commissioner for Human Rights that where States penetrate infrastructure located outside their territorial jurisdiction, they remain bound by their obligations under the Covenant. Moreover, article 26 of the Covenant prohibits discrimination on grounds of, inter alia, nationality and citizenship. The Special Rapporteur thus considers that States are legally obliged to afford the same privacy protection for nationals and non-nationals and for those within and outside their jurisdiction. Asymmetrical privacy protection regimes are a clear violation of the requirements of the Covenant.
  • That principle — that the right of internet privacy belongs to all individuals, not just Americans — was invoked by NSA whistleblower Edward Snowden when he explained in a June, 2013 interview at The Guardian why he disclosed documents showing global surveillance rather than just the surveillance of Americans: “More fundamentally, the ‘US Persons’ protection in general is a distraction from the power and danger of this system. Suspicionless surveillance does not become okay simply because it’s only victimizing 95% of the world instead of 100%.” The U.N. Rapporteur was clear that these systematic privacy violations are the result of a union between governments and tech corporations: “States increasingly rely on the private sector to facilitate digital surveillance. This is not confined to the enactment of mandatory data retention legislation. Corporates [sic] have also been directly complicit in operationalizing bulk access technology through the design of communications infrastructure that facilitates mass surveillance. ”
  • The latest finding adds to the growing number of international formal rulings that the mass surveillance programs of the U.S. and its partners are illegal. In January, the European parliament’s civil liberties committee condemned such programs in “the strongest possible terms.” In April, the European Court of Justice ruled that European legislation on data retention contravened EU privacy rights. A top secret memo from the GCHQ, published last year by The Guardian, explicitly stated that one key reason for concealing these programs was fear of a “damaging public debate” and specifically “legal challenges against the current regime.” The report ended with a call for far greater transparency along with new protections for privacy in the digital age. Continuation of the status quo, it warned, imposes “a risk that systematic interference with the security of digital communications will continue to proliferate without any serious consideration being given to the implications of the wholesale abandonment of the right to online privacy.” The urgency of these reforms is underscored, explained the Rapporteur, by a conclusion of the United States Privacy and Civil Liberties Oversight Board that “permitting the government to routinely collect the calling records of the entire nation fundamentally shifts the balance of power between the state and its citizens.”
Paul Merrell

China Steps In as World's New Bank - Bloomberg View - 0 views

  • Thanks to China, Christine Lagarde of the International Monetary Fund, Jim Yong Kim of the World Bank and Takehiko Nakao of the Asian Development Bank may no longer have much meaningful work to do. Beijing's move to bail out Russia, on top of its recent aid for Venezuela and Argentina, signals the death of the post-war Bretton Woods world. It’s also marks the beginning of the end for America's linchpin role in the global economy and Japan's influence in Asia. What is China's new Asian Infrastructure Investment Bank if not an ADB killer? If Japan, ADB's main benefactor, won't share the presidency with Asian peers, Beijing will just use its deep pockets to overpower it. Lagarde's and Kim’s shops also are looking at a future in which crisis-wracked governments call Beijing before Washington. 
  • China stepping up its role as lender of last resort upends an economic development game that's been decades in the making. The IMF, World Bank and ADB are bloated, change-adverse institutions.  When Ukraine received a $17 billion IMF-led bailout this year it was about shoring up a geopolitically important economy, not geopolitical blackmail. Chinese President Xi Jinping's government doesn't care about upgrading economies, the health of tax regimes or central bank reserves. It cares about loyalty. The quid pro quo: For our generous assistance we expect your full support on everything from Taiwan to territorial disputes to deadening the West’s pesky focus on human rights.
  • This may sound hyperbolic; Russia, Argentina and Venezuela are already at odds with the U.S. and its allies. But what about Europe? In 2011 and 2012, it looked to Beijing to save euro bond markets through massive purchases. Expect more of this dynamic in 2015 should fresh turmoil hit the euro zone, at which time Beijing will expect European leaders to pull their diplomatic punches. What happens if the Federal Reserve’s tapering slams economies from India to Indonesia and governments look to China for help? Why would Cambodia, Laos or Vietnam bother with the IMF’s conditions when China writes big checks with few strings attached? Beijing’s $24 billion currency swap program to help Russia is a sign of things to come. Russia, it's often said, is too nuclear to fail. As Moscow weathers the worst crisis since the 1998 default, it’s tempting to view China as a good global citizen. But Beijing is just enabling President Vladimir Putin, who’s now under zero pressure to diversify his economy away from oil. The same goes for China’s $2.3 billion currency swap with Argentina and its $4 billion loan to Venezuela. In the Chinese century, bad behavior has its rewards.
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    Note that this article is in a Bloomberg publication. Is economic reality beginning to dent the MSM propaganda on Wall Street?
Gary Edwards

A truly American future - 1 views

  • Ours has been a human experiment in which a constitutional republic was created that, aside from its moral and legal rightness, also created an environment in which entrepreneurs could flourish. The results of this experiment have been spectacular. Our lives and the lives of people throughout the world have been enriched by this experiment.
  • We are now in a very imperfect political battlefield, on which we are striving to save a constitutional republic by democratic means. Historically, our odds are poor. All democracies in history have ultimately failed. All have descended into mob rule. This is the reason our founders did not give us a democracy. We must be the exception.
  • At present, the situation is in doubt. Our president refuses to follow the rules of our constitutional republic; the self-interested cowardice of too many of our members of Congress prevents them from disciplining the president; and our courts are politicized as well. Moreover, many elements of our government are running amok, such as the Federal Reserve with its printing presses and the Environmental Protection Agency with its unending search for more power for itself. As Gilder shows in “Knowledge and Power,” the real advance of knowledge and power to improve human life depends upon a benign human society in which entrepreneurial advance can flourish. He explains this in political terms and in the scientific terms of information theory.
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    "As economist Julian Simon observed, people always produce more than they consume and always better the human condition of themselves and their neighbors - if they are free to do so. Why was Simon able to make this observation based on American experiences and other more brief episodes in human history? The answer to this question is elegantly described by George Gilder in his book "Knowledge and Power: The information Theory of Capitalism and How It is Revolutionizing Our World." Gilder teaches us about the "economics" of human advance. Establishment economics is, of course, a somewhat murky forest of "supply" and "demand" and "micros" and "macros" and all sorts of other abstractions. Within economics has arisen a sort of political contest as to whether "demand" or "supply" is most important. Does the market respond to "demands" for certain sorts of goods, or are goods unexpectedly "supplied" to the market by inventors and entrepreneurs - as surprises which then create market demand themselves? It is clear that the "supply" side trumps the "demand" side in this controversy. As George Gilder elucidates, potential advances - products and other goods - arise first in the minds of entrepreneurs who, using information, existing tools and skills in assembling and utilizing capital, bring these advances to the market. If the entrepreneur is right about the demand that will arise when his new product becomes available, he is rewarded with the fun of providing it and with profits. In order to do this, the entrepreneur needs a relatively quiet, noise-free environment, where the information comprising his innovation can express itself. His environment needs easily available capital in the hands of free men, so that he has rich opportunities to seek that capital and utilize it. The entrepreneur also needs a system of justice that protects his efforts and his coworkers. He needs a system of individual liberty where the
Paul Merrell

America's Monetary Crisis: Even the Council on Foreign Relations Is Saying It: Time to ... - 0 views

  • The Fed, it seems, has finally run out of other ammo. It has to taper its quantitative easing program, which is eating up the Treasuries and mortgage-backed securities needed as collateral for the repo market that is the engine of the bankers’ shell game. The Fed’s Zero Interest Rate Policy (ZIRP) has also done serious collateral damage. The banks that get the money just put it in interest-bearing Federal Reserve accounts or buy foreign debt or speculate with it; and the profits go back to the 1%, who park it offshore to avoid taxes. Worse, any increase in the money supply from increased borrowing increases the overall debt burden and compounding finance costs, which are already a major constraint on economic growth. Meanwhile, the economy continues to teeter on the edge of deflation. The Fed needs to pump up the money supply and stimulate demand in some other way. All else having failed, it is reduced to trying what money reformers have been advocating for decades — get money into the pockets of the people who actually spend it on goods and services.
  • Blyth and Lonergan write: [L]ow inflation . . . occurs when people and businesses are too hesitant to spend their money, which keeps unemployment high and wage growth low. In the eurozone, inflation has recently dropped perilously close to zero. . . . At best, the current policies are not working; at worst, they will lead to further instability and prolonged stagnation. Governments must do better. Rather than trying to spur private-sector spending through asset purchases or interest-rate changes, central banks, such as the Fed, should hand consumers cash directly. In practice, this policy could take the form of giving central banks the ability to hand their countries’ tax-paying households a certain amount of money. The government could distribute cash equally to all households or, even better, aim for the bottom 80 percent of households in terms of income. Targeting those who earn the least would have two primary benefits. For one thing, lower-income households are more prone to consume, so they would provide a greater boost to spending. For another, the policy would offset rising income inequality. [Emphasis added.]
  • A money drop directly on consumers is not a new idea for the Fed. Ben Bernanke recommended it in his notorious 2002 helicopter speech to the Japanese who were caught in a similar deflation trap.
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  • Assume a $1 trillion dividend issued in the form of debit cards that could be used only for goods and services. A back-of-the-envelope estimate is that if $1 trillion were shared by all US adults making under $35,000 annually, they could each get about $600 per month.  If the total dividend were $2 trillion, they could get $1,200 per month. And in either case it could, at least in theory, all come back in taxes to the government without any net increase in the money supply.
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    Have the banksters finally accepted that trickle-down economics does not work, that only a money-drop on the lower classes can get the economy growing again? 
Paul Merrell

Latest FBI Claim of Disrupted Terror Plot Deserves Much Scrutiny and Skepticism - The I... - 0 views

  • The Justice Department on Wednesday issued a press release trumpeting its latest success in disrupting a domestic terrorism plot, announcing that “the Joint Terrorism Task Force has arrested a Cincinnati-area man for a plot to attack the U.S. Capitol and kill government officials.” The alleged would-be terrorist is 20-year-old Christopher Cornell (above), who is unemployed, lives at home, spends most of his time playing video games in his bedroom, still addresses his mother as “Mommy” and regards his cat as his best friend; he was described as “a typical student” and “quiet but not overly reserved” by the principal of the local high school he graduated in 2012.
  • The DOJ’s press release predictably generated an avalanche of scary media headlines hailing the FBI. CNN: “FBI says plot to attack U.S. Capitol was ready to go.” MSNBC: “US terror plot foiled by FBI arrest of Ohio man.” Wall St. Journal: “Ohio Man Charged With Plotting ISIS-Inspired Attack on U.S. Capitol.”
  • Just as predictably, political officials instantly exploited the news to justify their powers of domestic surveillance. House Speaker John Boehner claimed yesterday that “the National Security Agency’s snooping powers helped stop a plot to attack the Capitol and that his colleagues need to keep that in mind as they debate whether to renew the law that allows the government to collect bulk information from its citizens.” He warned: “We live in a dangerous country, and we get reminded every week of the dangers that are out there.”  The known facts from this latest case seem to fit well within a now-familiar FBI pattern whereby the agency does not disrupt planned domestic terror attacks but rather creates them, then publicly praises itself for stopping its own plots.
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  • First, they target a Muslim: not due to any evidence of intent or capability to engage in terrorism, but rather for the “radical” political views he expresses. In most cases, the Muslim targeted by the FBI is a very young (late teens, early 20s), adrift, unemployed loner who has shown no signs of mastering basic life functions, let alone carrying out a serious terror attack, and has no known involvement with actual terrorist groups. They then find another Muslim who is highly motivated to help disrupt a “terror plot”: either because they’re being paid substantial sums of money by the FBI or because (as appears to be the case here) they are charged with some unrelated crime and are desperate to please the FBI in exchange for leniency (or both). The FBI then gives the informant a detailed attack plan, and sometimes even the money and other instruments to carry it out, and the informant then shares all of that with the target. Typically, the informant also induces, lures, cajoles, and persuades the target to agree to carry out the FBI-designed plot. In some instances where the target refuses to go along, they have their informant offer huge cash inducements to the impoverished target. Once they finally get the target to agree, the FBI swoops in at the last minute, arrests the target, issues a press release praising themselves for disrupting a dangerous attack (which it conceived of, funded, and recruited the operatives for), and the DOJ and federal judges send their target to prison for years or even decades (where they are kept in special GITMO-like units). Subservient U.S. courts uphold the charges by applying such a broad and permissive interpretation of “entrapment” that it could almost never be successfully invoked. As AP noted last night, “defense arguments have repeatedly failed with judges, and the stings have led to many convictions.”
  • There are countless similar cases where the FBI triumphantly disrupts its own plots, causing people to be imprisoned as terrorists who would not and could not have acted on their own. Trevor Aaronson has comprehensively covered what amounts to the FBI’s own domestic terror network, and has reported that “nearly half [of all DOJ terrorism] prosecutions involved the use of informants, many of them incentivized by money (operatives can be paid as much as $100,000 per assignment) or the need to work off criminal or immigration violation.” He documents “49 [terrorism] defendants [who] participated in plots led by an agent provocateur—an FBI operative instigating terrorist action.” In 2012, Petra Bartosiewicz in The Nation reviewed the post-9/11 body of terrorism cases and concluded: Nearly every major post-9/11 terrorism-related prosecution has involved a sting operation, at the center of which is a government informant. In these cases, the informants — who work for money or are seeking leniency on criminal charges of their own — have crossed the line from merely observing potential criminal behavior to encouraging and assisting people to participate in plots that are largely scripted by the FBI itself. Under the FBI’s guiding hand, the informants provide the weapons, suggest the targets and even initiate the inflammatory political rhetoric that later elevates the charges to the level of terrorism.
Paul Merrell

Morgan Stanley strikes $2.6bn deal to settle mortgage bubble case | Business | The Guar... - 0 views

  • Morgan Stanley has agreed to pay $2.6bn to settle federal charges over its role in the mortgage bubble and subsequent financial crisis.
  • The investment bank said late on Wednesday the $2.6bn will go to “resolve certain claims” the Justice Department intended to bring against Morgan Stanley. The settlement was disclosed in regulatory filing. Those specific claims were not disclosed. Morgan Stanley said in January it increased its legal reserves by $2.8bn to cover ongoing issues with its residential mortgage-backed securities division. Morgan is the latest bank, just like Citigroup, Bank of America and JPMorgan Chase, to pay billions to settle pending charges related to its role in the 2008 financial crisis. The Justice Department declined to comment. The agreement has not been finalised and could fall though.
Paul Merrell

Central Bankers: By 2019 Get Ready For the End of 'Too Big to Fail' | nsnbc international - 0 views

  • Mark Carney, chairman of the Financial Stability Board (FSB) and governor of the Bank of England (BoE) has proposed new rules to put an end to the concept of “too big to fail” and taxpayer banker bailouts. Carney said: Once implemented, these agreements will play important roles in enabling globally systemic banks to be resolved (wound down) without recourse to public subsidy and without disruption to the wider financial system.”
  • The total loss-absorbing capacity (TLAC) of the past has allowed for the banks to benefit from taxpayer injections of cash to compensate for speculative betting on the stock market. Now banks “will have to fund themselves with loss-absorbing capital equal to 16-20% of their risk-weighted assets.” The 30 largest banks in the world are considered “systematically important” and affected by TLAC rules; however certain loopholes in the new rules could facilitate “different market conditions” paving the way for a specific assessment of an individual case to “even the playing field”.
  • Proposed ideas include the inception of “Goldman Sachs and HSBC [to] have a buffer of bonds or equity equivalent to at least 16 to 20 percent of their risk-weighted assets, such as loans, from January 2019.” Set in motion in 2013, the Bank of International Settlements (BIS) and the Basel Committee on Banking Supervisors (BCBS) has applied the underlying pressure on US banks to liquidate to appease global markets. The American taxpayer is picking up the tab for this turn of events. BIS is giving these banks until 2019 to comply with their new rules. Capital to prop up the banks will be needed while they liquidate assets such as bonds, mortgages, loans and stock shares.
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  • The European Central Bank (ECB) is setting the stage of a complete financial collapse of fiat currencies across the globe. Joining in the scheme are other technocratic institutions such as the Federal Reserve, the Bank of Canada, the Bank of England, the Bank of Japan and the Swiss National Bank.
Gary Edwards

Swimming with the Sharks: Goldman Sachs, School Districts, and Capital Appreciation Bon... - 0 views

  • In 2008, after collecting millions of dollars in fees to help California sell its bonds, Goldman urged its bigger clients to place investment bets against those bonds, in order to profit from a financial crisis that was sparked in the first place by irresponsible Wall Street speculation. Alarmed California officials warned that these short sales would jeopardize the state’s bond rating and drive up interest rates. But that result also served Goldman, which had sold credit default swaps on the bonds, since the price of the swaps rose along with the risk of default.
  • In 2009, the lenders’ lobbying group than proposed and promoted AB1388, a California bill eliminating the debt ceiling requirement on long-term debt for school districts. After it passed, bankers traveled all over the state pushing something called “capital appreciation bonds” (CABs) as a tool to vault over legal debt limits. (Think Greece again.) Also called payday loans for school districts, CABs have now been issued by more than 400 California districts, some with repayment obligations of up to 20 times the principal advanced (or 2000%).
  • The controversial bonds came under increased scrutiny in August 2012, following a report that San Diego County’s Poway Unified would have to pay $982 million for a $105 million CAB it issued. Goldman Sachs made $1.6 million on a single capital appreciation deal with the San Diego Unified School District.
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  • . . . AB1388, signed by then-Gov. Arnold Schwarzenegger in 2009, [gave] banks the green light to lure California school boards into issuing bonds to raise quick money to build schools. Unlike conventional bonds that have to be paid off on a regular basis, the bonds approved in AB1388 relaxed regulatory safeguards and allowed them to be paid back 25 to 40 years in the future. The problem is that from the time the bonds are issued until payment is due, interest accrues and compounds at exorbitant rates, requiring a balloon payment in the millions of dollars. . . . Wall Street exploited the school boards’ lack of business acumen and proposed the bonds as blank checks written against taxpayers’ pocketbooks. One school administrator described a Wall Street meeting to discuss the system as like “swimming with the big sharks.” Wall Street has preyed on these school boards because of the millions of dollars in commissions. Banks, financial advisers and credit rating firms have billed California public entities almost $400 million since 2007. [State Treasurer] Lockyer described this as “part of the ‘new’ Wall Street,” which “has done this kind of thing on the private investor side for years, then the housing market and now its public entities.”
  • The Federal Reserve could have made virtually-interest-free loans available to local governments, as it did for banks. But the Fed (whose twelve branches are 100% owned by private banks) declined. As noted by Cate Long on Reuters:
  • The Fed has said that it will not buy muni bonds or lend directly to states or municipal issuers. But be sure if yields rise high enough Merrill Lynch, Goldman Sachs and JP Morgan will be standing ready to “save” these issuers. There is no “lender of last resort” for muniland.
  • Among the hundreds of California school districts signing up for CABs were fifteen in Orange County. The Anaheim-based Savanna School District took on the costliest of these bonds, issuing $239,721 in CABs in 2009 for which it will have to repay $3.6 million by the final maturity date in 2034. That works out to $15 for every $1 borrowed. Santa Ana Unified issued $34.8 million in CABs in 2011. It will have to repay $305.5 million by the maturity date in 2047, or $9.76 for every dollar borrowed. Placentia-Yorba Linda Unified issued $22.1 million in capital appreciation bonds in 2011. It will have to repay $281 million by the maturity date in 2049, or $12.73 for every dollar borrowed.
  • In 2013, California finally passed a law limiting debt service on CABs to four times principal, and limiting their maturity to a maximum of 25 years. But the bill is not retroactive. In several decades, the 400 cities that have been drawn into these shark-infested waters could be facing municipal bankruptcy – for capital “improvements” that will by then be obsolete and need to be replaced.
  • Then-State Treasurer Bill Lockyer called the bonds “debt for the next generation.” But some economists argue that it is a transfer of wealth, not between generations, but between classes – from the poor to the rich. Capital investments were once funded with property taxes, particularly those paid by wealthy homeowners and corporations. But California’s property tax receipts were slashed by Proposition 13 and the housing crisis, forcing school costs to be borne by middle-class households and the students themselves.
  • According to Demos, per-student funding has been slashed since 2008 in every state but one – the indomitable North Dakota. What is so different about that state? Some commentators credit the oil boom, but other states with oil have not fared so well. And the boom did not actually hit in North Dakota until 2010. The budget of every state but North Dakota had already slipped into the red by the spring of 2009.
  • One thing that does single the state out is that North Dakota alone has its own depository bank.
  • The state-owned Bank of North Dakota (BND) was making 1% loans to school districts even in December 2014, when global oil prices had dropped by half. That month, the BND granted a $10 million construction loan to McKenzie County Public School No. 1, at an interest rate of 1% payable over 20 years. Over the life of the loan, that works out to $.20 in simple interest or $.22 in compound interest for every $1 borrowed. Compare that to the $15 owed for every dollar borrowed by Anaheim’s Savanna School District or the $10 owed for every dollar borrowed by Santa Ana Unified.
  • How can the BND afford to make these very low interest loans and still turn a profit? The answer is that its costs are very low. It has no exorbitantly-paid executives; pays no bonuses, fees, or commissions; pays no dividends to private shareholders; and has low borrowing costs. It does not need to advertise for depositors (it has a captive deposit base in the state itself) or for borrowers (it is a wholesale bank that partners with local banks, which find the borrowers). The BND also has no losses from derivative trades gone wrong. It engages in old-fashioned conservative banking and does not speculate in derivatives. Unlike the vampire squids of Wall Street, it is not motivated to maximize its bottom line in a predatory way. Its mandate is simply to serve the public interest.
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    " Remember when Goldman Sachs - dubbed by Matt Taibbi the Vampire Squid - sold derivatives to Greece so the government could conceal its debt, then bet against that debt, driving it up? It seems that the ubiquitous investment bank has also put the squeeze on California and its school districts. Not that Goldman was alone in this; but the unscrupulous practices of the bank once called the undisputed king of the municipal bond business epitomize the culture of greed that has ensnared students and future generations in unrepayable debt."
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