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The theory of "Looting" explains many of the financial crisis of the past and present. Perhaps too too many! This article introduces a white paper , "Looting". The authors argue that multiple financial crises can be explained by this phenomenon, including the belief that a financial institution and entangled "counterparty" is too big to fail. " .... an economic underground can come to life if firms have an incentive to go broke for profit at society's expense (to loot) instead of to go for broke (to gamble on success). Bankruptcy for profit will occur if poor accounting, lax regulation, or low penalties for abuse give owners an incentive to pay themselves more than their firms are worth and then default on their debt obligations...."

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

Yes, it's a confusing proposal - but not when compared to what we have now; a financial industry run by "To-Big-To-Fail Banks" able to loot the public treasury at will.  Never to Big to Bail, and taxpayers voted for four more years of looting.  Limited Purpose Banking is based on equity.  Which is quite different from the fractional-reserve-lending model used by the To-Big-Fail Banksters. "The history of banking is a long and sorry record of promises that can't be kept - promises that were either overly optimistic or outright fraudulent. Since banks are leveraged, failing to deliver on their promises leads them to collapse. But unlike standard bankruptcies, bank failures produce enormous economic fallout.   There's a reason. Banks not only market financial products. They also make financial markets. Markets, be they for apples or loans, constitute critical public goods whose provision should not be jeopardized.     Making a market -- getting buyers and sellers to meet at the same time and place always represents a feat of coordination. The main purpose of banks is to effect financial coordination - to bring together borrowers and lenders and investors and savers.     When banks fail, particularly large ones, this coordination breaks down. Moreover, bank failures can be contagious. Any given bank's failure raises the prospect that fraud or very poor judgment was at fault and that other banks are engaged in the same practice. This leads to runs on, actually away from, banks in general. In addition, since banks borrow and lend to one another, the failure of bank A can bring bank B down if A owes money to B.     Worst of all, financial collapse, even by a few major financial players can coordinate non-financial companies as well as households on the belief that times are bad. And when millions of separate firms and tens of millions of households start expecting bad times, they take actions to make bad times happen. Thus, the state of confidence, what Key

The Rolling Stone's Matt Taibbi strikes again. 

Awesome article Paul. A must read for anyone trying to understand the 2008 financial collapse. The same Wall Street Banksters who collapsed the world economy are back at it. This time raiding the public workers pension funds, spending millions on politicians and press campaigns to blame cops, firefighters, and teachers for mounting municipal fiscal failures and the coming collapse. Blame anyone but these triple dipping Banksters and their political toadies. Excellent piece of writing too. Check out this opening excerpt introducing the five page story: "In the final months of 2011, almost two years before the city of Detroit would shock America by declaring bankruptcy in the face of what it claimed were insurmountable pension costs, the state of Rhode Island took bold action to avert what it called its own looming pension crisis. Led by its newly elected treasurer, Gina Raimondo - an ostentatiously ambitious 42-year-old Rhodes scholar and former venture capitalist - the state declared war on public pensions, ramming through an ingenious new law slashing benefits of state employees with a speed and ferocity seldom before seen by any local government. Detroit's Debt Crisis: Everything Must Go Called the Rhode Island Retirement Security Act of 2011, her plan would later be hailed as the most comprehensive pension reform ever implemented. The rap was so convincing at first that the overwhelmed local burghers of her little petri-dish state didn't even know how to react. "She's Yale, Harvard, Oxford - she worked on Wall Street," says Paul Doughty, the current president of the Providence firefighters union. "Nobody wanted to be the first to raise his hand and admit he didn't know what the fuck she was talking about." Soon she was being talked about as a probable candidate for Rhode Island's 2014 gubernatorial race. By 2013, Raimondo had raised more than $2 million, a staggering sum for a still-undeclared candidate in a thimble-size state. Donors from Wall Str

LIC loots millions from gunman at gunpoint in broad daylight, two passers-by get injured

Excellent review of Charles Murray's new book on Class Warfare, "Coming Apart".  Excellent libertarian commentary hits hard on solutions pouring out of the both the left and the right advocating the use of big government force and power to level the class divide.  Whatever happened to individual liberty and the Constitution? excerpt: This is what the debate is about. To the left, the answer about what to do is completely obvious. We need massive government programs to boost the lowers, and we need new taxes and punishments to whack the uppers good and hard. Never mind that the programs for the lowers don't work and the punishments on the rich end up only bolstering a new government elite that lords it over everyone. The right has a different solution. Well, not everyone on the right, but those neoconservatives who take it as a given that every coherent nation needs a unified national culture. To quote David Brooks: "We need a program that would force members of the upper tribe and the lower tribe to live together, if only for a few years. We need a program in which people from both tribes work together to spread out the values, practices and institutions that lead to achievement. If we could jam the tribes together, we'd have a better elite and a better mass." No thanks on this Stalinist plan. The right is just like the left in this sense: If there is a national problem, it needs a solution imposed by force. The left favors looting people, whereas the right favors Tasing people. Either way, it is all about increasing the police powers of the state. On the extremes, the left wants total expropriation to make everyone equally poor, whereas the right wants total war to unify us all in a grand project of killing and being killed. This is what worries me most about the Murray thesis. No matter where you look for answers, the solutions actually seem worse than the problem itself. More fundamentally, we have to ask: What is the problem we are actually tryin

Over at ClusterStock, Bruce Kasting is seething mad. He's tracked down another example of outrageous Obama sweet sweet deal corruption once again involving his circle of crony corporatists and billions of taxpayer money. This mornings cup of fascism involves Obama crony, pal, long time trough feeder, and big time bundler, the sickening sycophant Jeff Immelt, CEO of GE. Cost to taxpayers? $54.6 Million. "I'm so sick of seeing this day after day. Washington is shelling out taxpayer money to support this successful company so they can buy locomotives from GE. GE pays next to no taxes in the US, they haven't for years. But when it comes to government money, they are on the top of the list for handouts. There is only one reason that GE keeps sucking on the country's teat, the CEO is best buds with Obama. Not only are they pals, but GE's top honcho, Jeff Immelt, is advising the President on what to do. There are many segment of our economy and society that need a helping hand from the government. I would put the interests of GE (and KSU) at the very bottom of the list. They are doing fine, they don't need these handouts. This is not an industrial policy. It's crony capitalism of the very worst kind." Note to Bruce: This isn't capitalism. These are not capitalist. These are corrupt crony corporatists, having seized the instruments of power, trample the Constitution, and loot the public treasury. Which makes Obammunism one of the more twisted forms of fascism to grace the pages of mankind's sordid history.

Tea Party Precinct Workers Needed: http://goo.gl/8u9wAI Republican Community Organizers? Or are they really libertarian infiltrators posturing as repubicans :) Interesting discussion at The Tea Party.org. Here is my comment concerning "fragmentation" and third party participation. And yes, I have registered to become a precinct worker on behalf of the Republican Party Libertarian Caucus movement. I've also listed myself in a number of local County Sheriff activities. It's getting real that matters :) ................... Fragmentation is an issue. Which is exactly why the core set of principles must be very limited. IMHO, restoring the founding documents and principles; the American Republic, the Constitution and the principles so famously described in the Declaration of Independence are the single point of agreement that defines "America". The founding documents created a Republic based on "individual liberty". So it would seem that the concept and value of "individual liberty" would be the single "lowest common denominator" that all Americans can rally around. Stray from the Constitution and Declaration, and you will have arguments that divide and defeat. Stay on point, arguing the value and importance of "individual liberty" and it becomes very hard to wander from the importance of limiting government, and protecting individual rights to privacy, property and prosperity. I've been very successful at arguing that a socialist can not honestly take the oath of office, oath of citizenship, or pledge of allegiance. The socialist believes that the rights and liberty of the individual is subordinate to the needs of society. For the socialist, there is no such thing as individual liberty or inalienable rights. They are un-Constitutional and un-American to the core of their being. For the libertarian, an ordered society based on limited government and the Rule of Law, is the best guarantor of effective and meaningful "individual liberty". The ess

Matt Taibbi responds to his critics. 

excerpt: .................... The controversy over the IRS's harassment of conservative groups continues. President Obama's team continues to blame low-level bureaucrats. Some conservatives suspect a more sinister explanation: that the levers of government were used to attack an existential threat to the president's 2012 reelection. The president and his party dismiss this as a paranoid fantasy. The evidence, however, is enough to make one believe that targeting Tea Party groups would have been an effective campaign strategy going into the 2012 election cycle. It is a well-known fact that the Tea Party movement dealt the president his famous "shellacking" in the 2010 mid-term election. Less well-known is the actual number of votes this new movement delivered-and the continuing effects these votes could have had in 2012 had the movement not been de-mobilized by the IRS. In a new research paper, Andreas Madestam (from Stockholm University), Daniel Shoag and David Yanagizawa-Drott (both from the Harvard Kennedy School), and I set out to find out how much impact the Tea Party had on voter turnout in the 2010 election. We compared areas with high levels of Tea Party activity to otherwise similar areas with low levels of Tea Party activity, using data from the Census Bureau, the FEC, news reports, and a variety of other sources. We found that the effect was huge: the movement brought the Republican Party some 3-6 million additional votes in House races. That is an astonishing boost, given that all Republican House candidates combined received fewer than 45 million votes. It demonstrates conclusively how important the party's newly energized base was to its landslide victory in those elections, and how worried Democratic strategists must have been about the conservative movement's momentum. The Tea Party movement's huge success was not the result of a few days of work by an elected official or two, but involved activists all over the country who spent the year and a hal

One interesting facet of this scandal is that the IRS in its own regulations rewrote a law passed by Congress in the early 50s to permit non-profit corporations to devote part of their resources to political issues. As passed by Congress, it says that the non-profits must be "exclusively" charitable in nature. But when the IRS wrote its implementing regulations, it substituted "primarily" for "exclusively," thus allowing the non-profits to engage in political political campaigns to an undefined extent and getting the IRS into the business of looking at political credentials rather than a simpler review of whether the given non-profit's purpose is purely charitable. Thus, a question of what should be done about this. Roughly, the choices are: [i] amend the statute to read "primarily;" or [ii] leave the statute alone and have someone litigate to correct the IRS regulations. The latter path, if followed, should result in ending *all* non-profits' participation in political campaigns. The advantage of the latter path is that it gets the IRS out of the business of picking whose politics they like. The disadvantage is that it gores a huge number of non-profits' oxen across the political spectrum, so a major lobbying effort to rewrite the statute to maintain the status quo is predictable. But with a court decision holding that the IRS got it wrong, that non-profits must be "exclusively" charitable, presumably it would be illegal for non-profits to do that campaigning themselves.

Thanks to Marbux :) A history of the financial collapse and how we got to the sovereign debt crisis of today.  Excellent  stuff.  A factual account that i couldn't find fault with.  Very lengthy read though. excerpt: Bailout the Bankers, Punish the People In the fall of 2008, the Bush administration sought to implement a bailout package for the economy, designed to save the US banking system. The leaders of the nation went into rabid fear mongering. Advertising the bailout as a $700 billion program, the fine print revealed a more accurate description, saying that $700 billion could be lent out "at any one time." As Chris Martenson wrote: This means that $700 billion is NOT the cost of this dangerous legislation, it is only the amount that can be outstanding at any one time.  After, say, $100 billion of bad mortgages are disposed of, another $100 billion can be bought.  In short, these four little words assure that there is NO LIMIT to the potential size of this bailout. This means that $700 billion is a rolling amount, not a ceiling. So what happens when you have vague language and an unlimited budget?  Fraud and self-dealing.  Mark my words, this is the largest looting operation ever in the history of the US, and it's all spelled out right in this delightfully brief document that is about to be rammed through a scared Congress and made into law.[27] Further, as the bailout agreement stipulated, it essentially hands the Federal Reserve and the U.S. Treasury total control over the nation's finances in what has been termed a "financial coup d'état" as all actions and decisions by the Fed and the Treasury Secretary may be done in secret and are not able to be reviewed by Congress or any other administrative or legal agency.[28] Passed in the last months of the Bush administration, the Obama administration further implemented the bailout (and added a stimulus package on top of it). The banks got a massive bailout of untold trillions, and the

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!" ......

Note that Obama's been talking a lot about a legal theory never approved by any international body that supposedly allows individual nations to wage war against another nation without U.N. Security Council for humanitarian purposes. Yes, dear reader, it's true: Obama would have us believe that fighting for peace is not like fornicating for chastity.  

Paul Craig Roberts makes a compelling case that the just-completed G20 summit is a historic event, marking the virtual end of U.S. ability to influence other nations to assist in imposing the Neocon/right-wing Israeli hegemonic agenda on the world. The Israel-first AIPAC lobbyists hit the hill beginning Monday morning to produce the authorization for war against Syria, painting it as essential to the Israeli goal of destroying the Iranian government. http://www.politico.com/story/2013/09/aipac-syria-96344.html The Israel-first lobby almost invariably attains its Congressional goals, regardless of those goals' damage to America. They are willing to fight to the very last drop of American blood to fulfill the Eeretz Israel dream of a Jewish empire in the Mideast and North Africa. Will Congress roll over for Israel's right-wing government yet again? We will know very soon. The key members of Congress to watch on their position in regard to war against Syria are those who are up for re-election next year. None will want to disturb voters this close to election by voting for war. Will that give them sufficient spine to withstand the Israel-firsters?  One can hope.  But the citizen message to Congress needs to be: "No to Obama. No to AIPAC. No to war."