Skip to main content

Home/ Socialism and the End of the American Dream/ Group items tagged too-big-to-fail

Rss Feed Group items tagged

Filter: All | Bookmarks | Topics Simple Middle
Gary Edwards

The Daily Bell - Richard Ebeling on Libertarianism, Anarchism and the Truth of Austrian... - 0 views

www.thedailybell.com/...he-Truth-of-Austrian-Economics

Richard-Ebeling Libertarian banksters

shared by Gary Edwards on 09 Jul 12 - No Cached
  • These are at least two conceivable methods of compelling the government to stop, or limit, its abuse of the monetary printing press.
    • Gary Edwards
      Gary Edwards on 09 Jul 12
       
      Ebeling proposes two methods of reining in out of control government printing of paper money.  There is a third method; one used by Lincoln and Kennedy.  This is the issuance of gold/silver/oil backed reserve notes.  The notes represent gold or silver being held on deposit, and are fully redeemable.   The value of the gold/silver or another commodity represented floats in the marketplace against goods and services.  Nor is there a fixed exchange rate for converting fiat (paper) dollars.  The market will figure those things out if left free to do so.  And that's one big big "if".
  • So the normal market pressures of downward price and wage adjustments in the recession are partly counter-acted by a new monetary expansion that is delaying the necessary re-coordination of market activities. Thus, given these two pressures, prices do not fall as much as a post-recession adjustment may require and they do not rise as much or as fast as might otherwise occur due to the renewed monetary expansion.
  • At the same time, as you correctly ask, the Federal Reserve has been paying banks a relatively low rate of interest to keep large excessive reserves in their accounts at the Federal Reserve, rather than to fully lend those excessive reserves to private borrowers. And given the low market rates of interest that Federal Reserve policy has generated, even the low rate of interest on unlent excess reserves offered to banks by the Federal Reserve appears the relatively more profitable way to use their available funds.
  • ...44 more annotations...
  • Why has the Federal Reserve done this? They infused these two trillion dollars into the financial markets back in 2008-2010 because they feared that an economy-wide bank collapse was possible. They are afraid to reverse this monetary expansion because to do so would reduce potential bank-lending capacity and put upward pressure on interest rates at a time when the Federal Reserve wants to prevent the sluggish recovery from slowing down even more and also raise the cost of the US government's financing of its trillion dollar a year deficits. So, instead, they leave this excess bank lending power sloshing around in the system, while keeping it off the market and from causing significant new price inflationary pressures, by paying banks not to lend those vast sums.
  • Austrians argue that economics is fundamentally a science and study of "human action." It attempts to trace out the logic and implications of man's intentional conduct in selecting among ends desired and applying perceived means to try to attain them. Austrians emphasize that all human action and the social and market interactions among men occur in a setting of imperfect knowledge, inescapable degrees of uncertainty and always through the passage of time.
  • They try to explain the market processes by which men discover mutual gains from trade.
  • They emphasize that the networks of social institutions in which and through which men discover ways to coordinate their interdependent actions in complex systems of division of labor are not the creations of government edict or command; but are most often among those unintended consequences of multitudes of self-interested individual actions and interactions.
  • They have developed theories of market competition and the role of the entrepreneur as the individuals always alert to market opportunities, and whose actions tend to bring about coordination between market supplies and demands.
  • The Austrian analysis of markets, competition and prices, led them to devastating critiques of the unworkability of all forms of socialist central planning, the inherent contradictions and inconsistencies in virtually all forms of government intervention and regulation, and a theory of money and the business cycle that points the finger of responsibility for inflations and recessions at the doorstep of government monetary and fiscal policies.
  • The philosophy of liberty proclaims that each individual is unique and possessing inherent rights to his life, liberty and honestly acquired property.
  • It is not surprising that classical liberal and libertarian ideas are often attacked. After all they are the ideas that consistently oppose the current political systems of plunder, privilege and power lusting.
  • That government, if it is to exist, is to serve as the protector and guardian of our distinct individual rights, and not the master of men who are obligated to sacrifice themselves for some asserted "national interest," "general welfare," or "common good."
  • The only reasonable meaning to the "common good" or the "general welfare" is when each individual is free to peacefully live his life as he chooses and is at liberty to voluntarily associate and interact with his fellow men for mutually beneficial improvements to their lives.
  • It is virtually inevitable that those who use political power for their own gain at their neighbor's expense will vehemently resist and oppose any attempt to stop them from feeding at the government trough.
  • there is everywhere a class of plundering peoples – politicians, bureaucrats, special interest groups – receiving tax-based income redistributions and subsidies and benefiting from anti-competitive regulations and protections against and at the expense of their fellow human beings.
  • This is the great battle of the twenty-first century;
  • Austrian Economics, not surprisingly, has been attacked precisely because of its insightful and cogent analysis of how it was government intervention and central bank monetary manipulation that generated the unsustainable boom in the last decade that set the stage for the inescapable bust, which the world is still suffering from.
  • There are "natural rights" libertarians
  • "utilitarian" or "consequentialist" libertarians.
  • most convincing case for human liberty
  • Because libertarians have not agreed about this among themselves, nor have they been able to persuade enough others in society to move the world further away from the collectivist premises and the interventionist-welfare state policies that guide so much that goes on in the world.
  • I happen to have been most strongly influenced by the "natural rights" defense of liberty, and especially as formulated by Ayn Rand in her philosophy of Objectivism.
  • First, it is argued that if one believes that the use of any and all forms of coercion are morally unacceptable in human relationships, then this should also imply that any compulsory taxation, even when for the funding of defense and legal justice, is unjustifiable. And, second, it is argued that the private sector could provide such admittedly essential services far more efficiently and cost-effectively than the monopoly agency of government. Murray Rothbard and David Friedman probably have been among the most well-known and articulate proponents of the anarcho-capitalist position over the last 50 years.
  • Others like the Ayn Rand, Robert Nozick and Ludwig von Mises have made the case for constitutionally limited government. Their counter arguments have centered on the ideas that conflicts over jurisdiction, disputes among private defense agencies contracted by different individuals who have disagreements, and the likelihood that "defense" would turn out to be a "natural monopoly" anyway – that is, a tendency for one agency to end up being the single provider of defense and judicial services over a wide geographical area – raise questions about the long-run workability and sustainability of competing defense companies in society.
  • From a moral perspective, I am in sympathy with the anarcho-capitalist position, in that I find the compulsory taking of people's income and wealth without their consent for whatever reason to be ethically repugnant.
  • We should focus on what we all agree upon:
  • This means that the Supreme Court has said that you are the slave of "society" and the government that represents "the people," since, in principle, anything that you do or not do can be argued to have some affect, positive or negative, on others.
  • Think about this Court decision. It is saying that if you do not buy health insurance the government will tax you to pay for it. If you refuse to pay the tax, the government will end up attempting to seize financial assets or real property you own in lieu of failure to pay. If you try to prevent this taking of your property, you are subject to arrest and imprisonment. If you resist arrest or imprisonment, the police have the authority to force you to comply – up to and including lethal force to subdue you into obedience.
  • the freedom and dignity of the individual human being; and the attempt whenever and wherever on our part to reduce, repeal and abolish all forms of regulation, control, restriction, prohibition on the peaceful and honest affairs of our fellow men.
  • Once you accept this premise, there is no end to the minutest detail and content of your life and actions the government cannot claim jurisdiction over to regulate, control or prohibit.
  • Here is that end-of-the-road of the notion of unlimited democratic rule by "the people" and those who claim to speak for "the people" and rule on their behalf.
  • Ayn Rand, of course, rejected any connection or compatibility with libertarianism. She argued this on two grounds. First, she felt that too frequently libertarians spoke of individual freedom, free markets and limited government, but failed to explicitly and clearly ground their political-economic ideas in a demonstrable philosophy of man, nature and society.
  • Government control of money is the potentially most dangerous and damaging form of government power short of outright socialism.
  • Rand's political philosophy arises out of the "natural rights" tradition, that rights are inherent in the nature of man and precede government.
  • Mises believed that rights were, in a sense, "social conventions" that had evolved out of the discovery that certain social institutional arrangements were more conducive to the mutual betterment of all members of society for achieving their individual goals and values
  • What they did agree upon was that, given their respective conceptions of the basis of individual rights, there was no social and economic system more consistent with the protection of those rights and more likely to generate the material and cultural achievements that are potentially possible than laissez-faire capitalism.
  • And in the twentieth century, Rand and Mises were two of the most principled and uncompromising advocates for the completely free market society
  • Second, she rejected the anarchist elements in the libertarian movement, believing that any reasonable analysis of the reality of man and the human condition strongly suggested the inescapable need for a single legal standard for defining and enforcing individual rights and a single authority to as impartially and "objectively" as possible enforce laws defending each individual's rights to his life, liberty and honestly acquired property.
  • "Hardly ever do the advocates of free capitalism realize how utterly their ideal was frustrated at the moment the state assumed control of the monetary system . . .
  • A 'free' capitalism with government responsibility for money and credit has lost its innocence.
  • From that point on it is no longer a matter of principle but one of expediency how far one wishes or permits government interference to go.
  • Money control is the supreme and most comprehensive of all governmental controls short of expropriation."
  • Government basically has three ways to acquire the income and wealth of its citizens: taxation, borrowing and printing money
  • So, governments throughout history have turned to the monetary printing press to fund the expenditures not covered by taxes or borrowed money
  • This "non-neutral," or uneven, impact on prices and wages in the economy during the inflationary process brings in its wake distorted profit margins, misallocations of resources and labor and various mal-investments of capital. Here are the seeds for the artificial and unsustainable "booms" that invariably come crashing down in the "bust" once the monetary expansion that has set it all in motion is stopped or slowed down.
  • I believe that the choice and use of money should be left to the market, that is, to the free and voluntary interactive decisions of those buying and selling in the market.
  • I consider a private, competitive free banking system to be the only one consistent with a truly free market society.
Paul Merrell

Remarks by President Obama in Address to the United Nations General Assembly | The Whit... - 0 views

www.whitehouse.gov/...nited-nations-general-assembly

war & peace Obama-speech U.N. hypocrisy

shared by Paul Merrell on 24 Sep 14 - No Cached
  • Remarks by President Obama in Address to the United Nations General Assembly United Nations General Assembly Hall New York City, New York 10:13 A.M. EDT PRESIDENT OBAMA:  Mr. President, Mr. Secretary General, fellow delegates, ladies and gentlemen:  We come together at a crossroads between war and peace; between disorder and integration; between fear and hope. Around the globe, there are signposts of progress.  The shadow of World War that existed at the founding of this institution has been lifted, and the prospect of war between major powers reduced.  The ranks of member states has more than tripled, and more people live under governments they elected. Hundreds of millions of human beings have been freed from the prison of poverty, with the proportion of those living in extreme poverty cut in half.  And the world economy continues to strengthen after the worst financial crisis of our lives. 
  • And yet there is a pervasive unease in our world -- a sense that the very forces that have brought us together have created new dangers and made it difficult for any single nation to insulate itself from global forces.  As we gather here, an outbreak of Ebola overwhelms public health systems in West Africa and threatens to move rapidly across borders.  Russian aggression in Europe recalls the days when large nations trampled small ones in pursuit of territorial ambition.  The brutality of terrorists in Syria and Iraq forces us to look into the heart of darkness.
  • First, all of us -- big nations and small -- must meet our responsibility to observe and enforce international norms.  We are here because others realized that we gain more from cooperation than conquest. 
  • ...14 more annotations...
  • Recently, Russia’s actions in Ukraine challenge this post-war order.  Here are the facts.  After the people of Ukraine mobilized popular protests and calls for reform, their corrupt president fled.  Against the will of the government in Kyiv, Crimea was annexed.  Russia poured arms into eastern Ukraine, fueling violent separatists and a conflict that has killed thousands.  When a civilian airliner was shot down from areas that these proxies controlled, they refused to allow access to the crash for days.  When Ukraine started to reassert control over its territory, Russia gave up the pretense of merely supporting the separatists, and moved troops across the border. This is a vision of the world in which might makes right -- a world in which one nation’s borders can be redrawn by another, and civilized people are not allowed to recover the remains of their loved ones because of the truth that might be revealed. America stands for something different.  We believe that right makes might -- that bigger nations should not be able to bully smaller ones, and that people should be able to choose their own future.
  • nd these are simple truths, but they must be defended. America and our allies will support the people of Ukraine as they develop their democracy and economy.  We will reinforce our NATO Allies and uphold our commitment to collective self-defense.  We will impose a cost on Russia for aggression, and we will counter falsehoods with the truth.  And we call upon others to join us on the right side of history -- for while small gains can be won at the barrel of a gun, they will ultimately be turned back if enough voices support the freedom of nations and peoples to make their own decisions. Moreover, a different path is available -- the path of diplomacy and peace, and the ideals this institution is designed to uphold.  The recent cease-fire agreement in Ukraine offers an opening to achieve those objectives.  If Russia takes that path -- a path that for stretches of the post-Cold War period resulted in prosperity for the Russian people -- then we will lift our sanctions and welcome Russia’s role in addressing common challenges.  After all, that’s what the United States and Russia have been able to do in past years -- from reducing our nuclear stockpiles to meeting our obligations under the Nuclear Nonproliferation Treaty, to cooperating to remove and destroy Syria’s declared chemical weapons.  And that’s the kind of cooperation we are prepared to pursue again -- if Russia changes course. 
  • This speaks to a central question of our global age -- whether we will solve our problems together, in a spirit of mutual interest and mutual respect, or whether we descend into the destructive rivalries of the past.  When nations find common ground, not simply based on power, but on principle, then we can make enormous progress.  And I stand before you today committed to investing American strength to working with all nations to address the problems we face in the 21st century.
  • America is pursuing a diplomatic resolution to the Iranian nuclear issue, as part of our commitment to stop the spread of nuclear weapons and pursue the peace and security of a world without them.  And this can only take place if Iran seizes this historic opportunity.  My message to Iran’s leaders and people has been simple and consistent:  Do not let this opportunity pass.  We can reach a solution that meets your energy needs while assuring the world that your program is peaceful.  America is and will continue to be a Pacific power, promoting peace, stability, and the free flow of commerce among nations.  But we will insist that all nations abide by the rules of the road, and resolve their territorial disputes peacefully, consistent with international law. 
  • In other words, on issue after issue, we cannot rely on a rule book written for a different century.  If we lift our eyes beyond our borders -- if we think globally and if we act cooperatively -- we can shape the course of this century, as our predecessors shaped the post-World War II age.  But as we look to the future, one issue risks a cycle of conflict that could derail so much progress, and that is the cancer of violent extremism that has ravaged so many parts of the Muslim world. Of course, terrorism is not new.  Speaking before this Assembly, President Kennedy put it well:  “Terror is not a new weapon,” he said.  “Throughout history it has been used by those who could not prevail, either by persuasion or example.”  In the 20th century, terror was used by all manner of groups who failed to come to power through public support.  But in this century, we have faced a more lethal and ideological brand of terrorists who have perverted one of the world’s great religions.  With access to technology that allows small groups to do great harm, they have embraced a nightmarish vision that would divide the world into adherents and infidels -- killing as many innocent civilians as possible, employing the most brutal methods to intimidate people within their communities.
  • I have made it clear that America will not base our entire foreign policy on reacting to terrorism.  Instead, we’ve waged a focused campaign against al Qaeda and its associated forces -- taking out their leaders, denying them the safe havens they rely on.  At the same time, we have reaffirmed again and again that the United States is not and never will be at war with Islam.  Islam teaches peace.  Muslims the world over aspire to live with dignity and a sense of justice.  And when it comes to America and Islam, there is no us and them, there is only us -- because millions of Muslim Americans are part of the fabric of our country. So we reject any suggestion of a clash of civilizations. Belief in permanent religious war is the misguided refuge of extremists who cannot build or create anything, and therefore peddle only fanaticism and hate.  And it is no exaggeration to say that humanity’s future depends on us uniting against those who would divide us along the fault lines of tribe or sect, race or religion.
  • But this is not simply a matter of words.  Collectively, we must take concrete steps to address the danger posed by religiously motivated fanatics, and the trends that fuel their recruitment.  Moreover, this campaign against extremism goes beyond a narrow security challenge.  For while we’ve degraded methodically core al Qaeda and supported a transition to a sovereign Afghan government, extremist ideology has shifted to other places -- particularly in the Middle East and North Africa, where a quarter of young people have no job, where food and water could grow scarce, where corruption is rampant and sectarian conflicts have become increasingly hard to contain.   As an international community, we must meet this challenge with a focus on four areas.  First, the terrorist group known as ISIL must be degraded and ultimately destroyed.
  • The second:  It is time for the world -- especially Muslim communities -- to explicitly, forcefully, and consistently reject the ideology of organizations like al Qaeda and ISIL.
  • Later today, the Security Council will adopt a resolution that underscores the responsibility of states to counter violent extremism.  But resolutions must be followed by tangible commitments, so we’re accountable when we fall short.  Next year, we should all be prepared to announce the concrete steps that we have taken to counter extremist ideologies in our own countries -- by getting intolerance out of schools, stopping radicalization before it spreads, and promoting institutions and programs that build new bridges of understanding.
  • Third, we must address the cycle of conflict -- especially sectarian conflict -- that creates the conditions that terrorists prey upon.
  • The good news is we also see signs that this tide could be reversed.  We have a new, inclusive government in Baghdad; a new Iraqi Prime Minister welcomed by his neighbors; Lebanese factions rejecting those who try to provoke war.  And these steps must be followed by a broader truce.  Nowhere is this more necessary than Syria.  Together with our partners, America is training and equipping the Syrian opposition to be a counterweight to the terrorists of ISIL and the brutality of the Assad regime.  But the only lasting solution to Syria’s civil war is political -- an inclusive political transition that responds to the legitimate aspirations of all Syrian citizens, regardless of ethnicity, regardless of creed.
  • My fourth and final point is a simple one:  The countries of the Arab and Muslim world must focus on the extraordinary potential of their people -- especially the youth.
  • We recognize as well that leadership will be necessary to address the conflict between Palestinians and Israelis.  As bleak as the landscape appears, America will not give up on the pursuit of peace.  Understand, the situation in Iraq and Syria and Libya should cure anybody of the illusion that the Arab-Israeli conflict is the main source of problems in the region.  For far too long, that's been used as an excuse to distract people from problems at home.  The violence engulfing the region today has made too many Israelis ready to abandon the hard work of peace.  And that's something worthy of reflection within Israel.
  • Because let’s be clear:  The status quo in the West Bank and Gaza is not sustainable.  We cannot afford to turn away from this effort -- not when rockets are fired at innocent Israelis, or the lives of so many Palestinian children are taken from us in Gaza. So long as I am President, we will stand up for the principle that Israelis, Palestinians, the region and the world will be more just and more safe with two states living side by side, in peace and security. So this is what America is prepared to do:  Taking action against immediate threats, while pursuing a world in which the need for such action is diminished.  The United States will never shy away from defending our interests, but we will also not shy away from the promise of this institution and its Universal Declaration of Human Rights -- the notion that peace is not merely the absence of war, but the presence of a better life. 
  • Paul Merrell on 24 Sep 14
     
    Epic hypocrisy. He bows to international law while waging multiple wars in direct defiance of it. And that's just in the first few paragraphs. It gets worse the farther he gets in his speech.
Gary Edwards

Tea Party Community Organizers? - 2 views

news.google.com/?ar=1375483947

Tea-Party-Patriots Precinct-Activism

shared by Gary Edwards on 02 Aug 13 - No Cached
  • Gary Edwards on 02 Aug 13
     
    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
Paul Merrell

Big Oil's "Sore Losers" Lead the Drive to War » CounterPunch: Tells the Facts... - 0 views

www.counterpunch.org/...e-losers-lead-the-drive-to-war

war & peace Ukraine Russia U.S.-foreign-policy pipelinestan reserve currrencies

shared by Paul Merrell on 14 Mar 14 - No Cached
  • Following a 13 year rampage that has reduced large swathes of Central Asia and the Middle East to anarchy and ruin, the US military juggernaut has finally met its match on a small peninsula in southeastern Ukraine that serves as the primary operating base for Russia’s Black Sea Fleet. Crimea is the door through which Washington must pass if it intends to extend its forward-operating bases throughout Eurasia, seize control of vital pipeline corridors and resources, and establish itself as the dominant military/economic power-player in the new century. Unfortunately, for Washington, Moscow has no intention of withdrawing from the Crimea or relinquishing control of its critical military outpost in Sevastopol. That means that the Crimea–which has been invaded by the Cimmerians, Bulgars, Greeks, Scythians, Goths, Huns, Khazars, Ottomans, Turks, Mongols, and Germans–could see another conflagration in the months ahead, perhaps, triggering a Third World War, the collapse of the existing global security structure, and a new world order, albeit quite different from the one imagined by the fantasists at the Council on Foreign Relations and the other far-right think tanks that guide US foreign policy and who are responsible for the present crisis.
  • How Washington conducts itself in this new conflict will tell us whether the authors of the War on Terror–that public relations hoax that concealed the goals of eviscerated civil liberties and one world government–were really serious about actualizing their NWO vision or if it was merely the collective pipedream of corporate CEOs and bored bankers with too much time on their hands. In the Crimea, the empire faces a real adversary, not a disparate group of Kalashinov-waving jihadis in flip-flops. This is the Russian Army; they know how to defend themselves and they are prepared to do so. That puts the ball in Obama’s court. It’s up to him and his crackpot “Grand Chessboard” advisors to decide how far they want to push this. Do they want to intensify the rhetoric and ratchet up the sanctions until blows are exchanged, or pick up their chips and walk away before things get out of hand? Do they want to risk it all on one daredevil roll of the dice or move on to Plan B? That’s the question. Whatever US policymakers decide, one thing is certain, Moscow is not going to budge. Their back is already against the wall. Besides, they know that a lunatic with a knife is on the loose, and they’re ready to do whatever is required to protect their people. If Washington decides to cross that line and provoke a fight, then there’s going to trouble. It’s as simple as that. Perma-hawk, John McCain thinks that Obama should take off the gloves and show Putin who’s boss. In an interview with TIME magazine McCain said “This is a chess match reminiscent of the Cold War and we need to realize that and act accordingly…We need to take certain measures that would convince Putin that there is a very high cost to actions that he is taking now.” “High cost” says McCain, but high cost for who?
  • What McCain fails to realize is that this is not Afghanistan and Obama is not in a spitting match with puppet Karzai. Leveling sanctions against Moscow will have significant consequences, the likes of which could cause real harm to US interests. Did we mention that “ExxonMobil’s biggest non-US oil project is a collaboration with Russia’s Rosneft in the Arctic, where it has billions of dollars of investments at stake.” What if Putin decides that it’s no longer in Moscow’s interest to honor contracts that were made with US corporations? What do you think the reaction of shareholders will be to that news? And that’s just one example. There are many more. Any confrontation with Russia will result in asymmetrical attacks on the dollar, the bond market, and oil supplies. Maybe the US could defeat Russian forces in the Crimea. Maybe they could sink the fleet and rout the troops, but there’ll be a heavy price to pay and no one will be happy with the outcome.
  • ...4 more annotations...
  • Here’s a clip from an article at Testosterone Pit that sums it up nicely: “Sergei Glazyev, the most hardline of Putin’s advisors, sketched the retaliation strategy: Drop the dollar, sell US Treasuries, encourage Russian companies to default on their dollar-denominated debts, and create an alternative currency system with the BRICS and hydrocarbon producers like Venezuela and Iran… Putin’s ally and trusted friend, Rosneft president Igor Sechin…suggested that it was “advisable to create an international stock-exchange for the participating countries, where transactions could be registered with the use of regional currencies.” (From Now On, No Compromises Are Possible For Russia, Testosterone Pit)
  • As the US continues to abuse its power, these changes become more and more necessary. Foreign governments must form new alliances in order to abandon the present system–the “dollar system”–and establish greater parity between nation-states, the very nation-states that Washington is destroying one-by-one to establish its ghoulish vision of global corporate utopia. The only way to derail that project is by exposing the glaring weakness in the system itself, which is the use of an international currency that is backed by $15 trillion in government debt, $4 trillion in Federal Reserve debt, and trillions more in unpaid and unpayable federal obligations. Whatever steps Moscow takes to abort the current system and replace the world’s reserve currency with money that represents a fair store of value, should be applauded. Washington’s reckless and homicidal behavior around the world make it particularly unsuitable as the de facto steward of the global financial system or to enjoy seigniorage, which allows the US to play banker to the rest of the world. The dollar is the foundation upon which rests the three pillars of imperial strength; political, economic and military. Remove that foundation and the entire edifice comes crashing to earth. Having abused that power, by killing and maiming millions of people across the planet; the world needs to transition to another, more benign way of consummating its business transactions, preferably a currency that is not backed by the blood and misery of innocent victims.
  • Paul Volcker summed up the feelings of many dollar-critics in 2010 when he had this to say: “The growing sense around much of the world is that we have lost both relative economic strength and more important, we have lost a coherent successful governing model to be emulated by the rest of the world. Instead, we’re faced with broken financial markets, underperformance of our economy and a fractious political climate.” America is irreparably broken and Washington is a moral swamp. The world needs regime change; new leaders, new direction and a different system.
  • In our last article, we tried to draw attention to the role of big oil in the present crisis. Author Nafeez Ahmed expands on that theme in a “must read” article in Monday’s Guardian. Check out this brief excerpt from Ahmed’s piece titled “Ukraine crisis is about Great Power oil, gas pipeline rivalry”: “Ukraine is increasingly perceived to be critically situated in the emerging battle to dominate energy transport corridors linking the oil and natural gas reserves of the Caspian basin to European markets… Considerable competition has already emerged over the construction of pipelines. Whether Ukraine will provide alternative routes helping to diversify access, as the West would prefer, or ‘find itself forced to play the role of a Russian subsidiary,’ remains to be seen.” (Guardian) The western oil giants have been playing “catch up” for more than a decade with Putin checkmating them at every turn. As it happens, the wily KGB alum has turned out to be a better businessman than any of his competitors, essentially whooping them at their own game, using the free market to extend his network of pipelines across Central Asia and into Europe. That’s what the current crisis is all about.
Gary Edwards

Banksters: The ultimate fascism center - 0 views

www.informationclearinghouse.info/article28637.htm

information-clearing-house financial-collapse sovereign-debt-crisis

shared by Gary Edwards on 22 Jul 11 - No Cached
  • Gary Edwards on 22 Jul 11
     
    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
Paul Merrell

US's Saudi Oil Deal from Win-Win to Mega-Loose | nsnbc international - 0 views

nsnbc.me/...eal-from-win-win-to-mega-loose

must-read banksters big oil Saudis Russia shale-oil U.S.-foreign-policy

shared by Paul Merrell on 09 Aug 15 - No Cached
  • Who would’ve thought it would come to this? Certainly not the Obama Administration, and their brilliant geo-political think-tank neo-conservative strategists. John Kerry’s brilliant “win-win” proposal of last September during his September 11 Jeddah meeting with ailing Saudi King Abdullah was simple: Do a rerun of the highly successful State Department-Saudi deal in 1986 when Washington persuaded the Saudis to flood the world market at a time of over-supply in order to collapse oil prices worldwide, a kind of “oil shock in reverse.” In 1986 was successful in helping to break the back of a faltering Soviet Union highly dependent on dollar oil export revenues for maintaining its grip on power. So, though it was not made public, Kerry and Abdullah agreed on September 11, 2014 that the Saudis would use their oil muscle to bring Putin’s Russia to their knees today.
  • It seemed brilliant at the time no doubt. On the following day, 12 September 2014, the US Treasury’s aptly-named Office of Terrorism and Financial Intelligence, headed by Treasury Under-Secretary David S. Cohen, announced new sanctions against Russia’s energy giants Gazprom, Gazprom Neft, Lukoil, Surgutneftgas and Rosneft. It forbid US oil companies to participate with the Russian companies in joint ventures for oil or gas offshore or in the Arctic. Then, just as the ruble was rapidly falling and Russian major corporations were scrambling for dollars for their year-end settlements, a collapse of world oil prices would end Putin’s reign. That was clearly the thinking of the hollowed-out souls who pass for statesmen in Washington today. Victoria Nuland was jubilant, praising the precision new financial warfare weapon at David Cohen’s Treasury financial terrorism unit. In July, 2014 West Texas Intermediate, the benchmark price for US domestic oil pricing, traded at $101 a barrel. The shale oil bonanza was booming, making the US into a major oil player for the first time since the 1970’s. When WTI hit $46 at the beginning of January this year, suddenly things looked different. Washington realized they had shot themselves in the foot.
  • They realized that the over-indebted US shale oil industry was about to collapse under the falling oil price. Behind the scenes Washington and Wall Street colluded to artificially stabilize what then was an impending chain-reaction bankruptcy collapse in the US shale oil industry. As a result oil prices began a slow rise, hitting $53 in February. The Wall Street and Washington propaganda mills began talking about the end of falling oil prices. By May prices had crept up to $62 and almost everyone was convinced oil recovery was in process. How wrong they were.
  • ...5 more annotations...
  • Since that September 11 Kerry-Abdullah meeting (curious date to pick, given the climate of suspicion that the Bush family is covering up involvement of the Saudis in or around the events of September 11, 2001), the Saudis have a new ageing King, Absolute Monarch and Custodian of the Two Holy Mosques, King Salman, replacing the since deceased old ageing King, Abdullah. However, the Oil Minister remains unchanged—79-year-old Ali al-Naimi. It was al-Naimi who reportedly saw the golden opportunity in the Kerry proposal to use the chance to at the same time kill off the growing market challenge from the rising output of the unconventional USA shale oil industry. Al-Naimi has said repeatedly that he is determined to eliminate the US shale oil “disturbance” to Saudi domination of world oil markets. Not only are the Saudis unhappy with the US shale oil intrusion on their oily Kingdom. They are more than upset with the recent deal the Obama Administration made with Iran that will likely lead in several months to lifting Iran economic sanctions. In fact the Saudis are beside themselves with rage against Washington, so much so that they have openly admitted an alliance with arch foe, Israel, to combat what they see as the Iran growing dominance in the region—in Syria, in Lebanon, in Iraq.
  • This has all added up to an iron Saudi determination, aided by close Gulf Arab allies, to further crash oil prices until the expected wave of shale oil company bankruptcies—that was halted in January by Washington and Wall Street manipulations—finishes off the US shale oil competition. That day may come soon, but with unintended consequences for the entire global financial system at a time such consequences can ill be afforded. According to a recent report by Wall Street bank, Morgan Stanley, a major player in crude oil markets, OPEC oil producers have been aggressively increasing oil supply on the already glutted world market with no hint of a letup. In its report Morgan Stanley noted with visible alarm, “OPEC has added 1.5 million barrels/day to global supply in the last four months alone…the oil market is currently 800,000 barrels/day oversupplied. This suggests that the current oversupply in the oil market is fully due to OPEC’s production increase since February alone.” The Wall Street bank report adds the disconcerting note, “We anticipated that OPEC would not cut, but we didn’t foresee such a sharp increase.” In short, Washington has completely lost its strategic leverage over Saudi Arabia, a Kingdom that had been considered a Washington vassal ever since FDR’s deal to bring US oil majors in on an exclusive basis in 1945.
  • That breakdown in US-Saudi communication adds a new dimension to the recent June 18 high-level visit to St. Petersburg by Muhammad bin Salman, the Saudi Deputy Crown Prince and Defense Minister and son of King Salman, to meet President Vladimir Putin. The meeting was carefully prepared by both sides as the two discussed up to $10 billion of trade deals including Russian construction of peaceful nuclear power reactors in the Kingdom and supplying of advanced Russian military equipment and Saudi investment in Russia in agriculture, medicine, logistics, retail and real estate. Saudi Arabia today is the world’s largest oil producer and Russia a close second. A Saudi-Russian alliance on whatever level was hardly in the strategy book of the Washington State Department planners.…Oh shit! Now that OPEC oil glut the Saudis have created has cracked the shaky US effort to push oil prices back up. The price fall is being further fueled by fears that the Iran deal will add even more to the glut, and that the world’s second largest oil importer, China, may cut back imports or at least not increase them as their economy slows down. The oil market time bomb detonated in the last week of June. The US price of WTI oil went from $60 a barrel then, a level at which at least many shale oil producers can stay afloat a bit longer, to $49 on July 29, a drop of more than 18% in four weeks, tendency down. Morgan Stanley sounded loud alarm bells, stating that if the trend of recent weeks continues, “this downturn would be more severe than that in 1986. As there was no sharp downturn in the 15 years before that, the current downturn could be the worst of the last 45+ years. If this were to be the case, there would be nothing in our experience that would be a guide to the next phases of this cycle…In fact, there may be nothing in analyzable history.”
  • October is the next key point for bank decisions to roll-over US shale company loans or to keep extending credit on the (until now) hope that prices will slowly recover. If as strongly hinted, the Federal Reserve hikes US interest rates in September for the first time in the eight years since the global financial crisis erupted in the US real estate market in 2007, the highly-indebted US shale oil producers face disaster of a new scale. Until the past few weeks the volume of US shale oil production has remained at the maximum as shale producers desperately try to maximize cash flow, ironically, laying the seeds of the oil glut globally that will be their demise. The reason US shale oil companies have been able to continue in business since last November and not declare bankruptcy is the ongoing Federal Reserve zero interest rate policy that leads banks and other investors to look for higher interest rates in the so-called “High Yield” bond market. Back in the 1980’s when they were first created by Michael Millken and his fraudsters at Drexel Burnham Lambert, Wall Street appropriately called them “junk bonds” because when times got bad, like now for Shale companies, they turned into junk. A recent UBS bank report states, “the overall High-Yield market has doubled in size; sectors that witnessed more buoyant issuance in recent years, like energy and metals mining, have seen debt outstanding triple or quadruple.”
  • Assuming that the most recent downturn in WTI oil prices continues week after week into October, there well could be a panic run to sell billions of dollars of those High-Yield, high-risk junk bonds. As one investment analyst notes, “when the retail crowd finally does head for the exits en masse, fund managers will be forced to come face to face with illiquid secondary corporate credit markets where a lack of market depth…has the potential to spark a fire sale.” The problem is that this time, unlike in 2008, the Federal Reserve has no room to act. Interest rates are already near zero and the Fed has bought trillions of dollars of bank bad debt to prevent a chain-reaction US bank panic. One option that is not being discussed at all in Washington would be for Congress to repeal the disastrous 1913 Federal Reserve Act that gave control of our nation’s money to a gang of private bankers, and to create a public National Bank, owned completely by the United States Government, that could issue credit and sell Federal debt without the intermediaries of corrupt Wall Street bankers as the Constitution intended. At the same time they could completely nationalize the six or seven “Too Big To Fail” banks behind the entire financial mess that is destroying the foundations of the United States and by extension of the role of the dollar as world reserve currency, of most of the world.
  • Paul Merrell on 09 Aug 15
     
    I give a lot of credibility to this article's author when it comes to matters involving the oil market. Remember when reading that the only thing propping up the U.S. dollar is the Saudi (later extended to all OPEC nations) insistence that they be paid for their oil and natural gas in U.S. dollars, which creates artificial demand for the dollar globally. If the Gulf Coast States begin accepting payment in rubles or yuan, it is curtains for the U.S. dollar in global markets.  
Paul Merrell

US-Saudi Blitz into Yemen: Naked Aggression, Absolute Desperation | Global Research - C... - 0 views

www.globalresearch.ca/...5439141

war & peace Yemen Houthi Saudis invasion U.S.-foreign-policy terrorists™

shared by Paul Merrell on 29 Mar 15 - No Cached
  • The “proxy war” model the US has been employing throughout the Middle East, Eastern Europe, and even in parts of Asia appears to have failed yet again, this time in the Persian Gulf state of Yemen. Overcoming the US-Saudi backed regime in Yemen, and a coalition of sectarian extremists including Al Qaeda and its rebrand, the “Islamic State,” pro-Iranian Yemeni Houthi militias have turned the tide against American “soft power” and has necessitated a more direct military intervention. While US military forces themselves are not involved allegedly, Saudi warplanes and a possible ground force are. Though Saudi Arabia claims “10 countries” have joined its coalition to intervene in Yemen, like the US invasion and occupation of Iraq hid behind a “coalition,” it is overwhelmingly a Saudi operation with “coalition partners” added in a vain attempt to generate diplomatic legitimacy. The New York Times, even in the title of its report, “Saudi Arabia Begins Air Assault in Yemen,” seems not to notice these “10” other countries. It reports:
  • Saudi Arabia announced on Wednesday night that it had launched a military campaign in Yemen, the beginning of what a Saudi official said was an offensive to restore a Yemeni government that had collapsed after rebel forces took control of large swaths of the country.  The air campaign began as the internal conflict in Yemen showed signs of degenerating into a proxy war between regional powers. The Saudi announcement came during a rare news conference in Washington by Adel al-Jubeir, the kingdom’s ambassador to the United States.
  • Indeed, the conflict in Yemen is a proxy war. Not between Iran and Saudi Arabia per say, but between Iran and the United States, with the United States electing Saudi Arabia as its unfortunate stand-in. Iran’s interest in Yemen serves as a direct result of the US-engineered “Arab Spring” and attempts to overturn the political order of North Africa and the Middle East to create a unified sectarian front against Iran for the purpose of a direct conflict with Tehran. The war raging in Syria is one part of this greater geopolitical conspiracy, aimed at overturning one of Iran’s most important regional allies, cutting the bridge between it and another important ally, Hezbollah in Lebanon. And while Iran’s interest in Yemen is currently portrayed as yet another example of Iranian aggression, indicative of its inability to live in peace with its neighbors, US policymakers themselves have long ago already noted that Iran’s influence throughout the region, including backing armed groups, serves a solely defensive purpose, acknowledging the West and its regional allies’ attempts to encircle, subvert, and overturn Iran’s current political order.
  • ...4 more annotations...
  • The unelected hereditary regime ruling over Saudi Arabia, a nation notorious for egregious human rights abuses, and a land utterly devoid of even a semblance of what is referred to as “human rights,” is now posing as arbiter of which government in neighboring Yemen is “legitimate” and which is not, to the extent of which it is prepared to use military force to restore the former over the latter. The United States providing support for the Saudi regime is designed to lend legitimacy to what would otherwise be a difficult narrative to sell. However, the United States itself has suffered from an increasing deficit in its own legitimacy and moral authority. Most ironic of all, US and Saudi-backed sectarian extremists, including Al Qaeda in Yemen, had served as proxy forces meant to keep Houthi militias in check by proxy so the need for a direct military intervention such as the one now unfolding would not be necessary. This means that Saudi Arabia and the US are intervening in Yemen only after the terrorists they were supporting were overwhelmed and the regime they were propping up collapsed. In reality, Saudi Arabia’s and the United States’ rhetoric aside, a brutal regional regime meddled in Yemen and lost, and now the aspiring global hemegon sponsoring it from abroad has ordered it to intervene directly and clean up its mess.
  • The aerial assault on Yemen is meant to impress upon onlookers Saudi military might. A ground contingent might also attempt to quickly sweep in and panic Houthi fighters into folding. Barring a quick victory built on psychologically overwhelming Houthi fighters, Saudi Arabia risks enveloping itself in a conflict that could easily escape out from under the military machine the US has built for it. It is too early to tell how the military operation will play out and how far the Saudis and their US sponsors will go to reassert themselves over Yemen. However, that the Houthis have outmatched combined US-Saudi proxy forces right on Riyadh’s doorstep indicates an operational capacity that may not only survive the current Saudi assault, but be strengthened by it. Reports that Houthi fighters have employed captured Yemeni warplanes further bolsters this notion – revealing tactical, operational, and strategic sophistication that may well know how to weather whatever the Saudis have to throw at it, and come back stronger.
  • What may result is a conflict that spills over Yemen’s borders and into Saudi Arabia proper. Whatever dark secrets the Western media’s decades of self-censorship regarding the true sociopolitical nature of Saudi Arabia will become apparent when the people of the Arabian peninsula must choose to risk their lives fighting for a Western client regime, or take a piece of the peninsula for themselves. Additionally, a transfer of resources and fighters arrayed under the flag of the so-called “Islamic State” and Al Qaeda from Syria to the Arabian Peninsula will further indicate that the US and its regional allies have been behind the chaos and atrocities carried out in the Levant for the past 4 years. Such revelations will only further undermine the moral imperative of the West and its regional allies, which in turn will further sabotage their efforts to rally support for an increasingly desperate battle they themselves conspired to start.
  • the Yemeni people are not being allowed to determine their own affairs. Everything up to and including military invasion has been reserved specifically to ensure that the people of Yemen do not determine things for themselves, clearly, because it does not suit US interests. Such naked hypocrisy will be duly noted by the global public and across diplomatic circles. The West’s inability to maintain a cohesive narrative is a growing sign of weakness. Shareholders in the global enterprise the West is engaged in may see such weakness as a cause to divest – or at the very least – a cause to diversify toward other enterprises. Such enterprises may include Russia and China’s mulipolar world. The vanishing of Western global hegemony will be done in destructive conflict waged in desperation and spite. Today, that desperation and spite befalls Yemen.
  • Paul Merrell on 29 Mar 15
     
    Usually I agree with Tony Cartalucci, but I think it's too early to pick winners and losers in Yemen. At least a couple of other nations allied with the Saudis are flying aerial missions and there's a commitment of troops and air support by Egypt, although it isn't clear that these would enter Yemen, but may just deploy to "protect" the waters approaching the Suez Canal from the Yemenis. The Saudis have a surfeit of U.S. weaponry but their military is inexperienced. The House of Saud has preferred proxy wars conducted by Salafist mercenaries over direct military intervention. How effective its military will be is a very big unknown at this point. But I like Cartalucci's point that if the House of Saud has to send in its ISIL mercenaries, it will go a long way toward unmasking the U.S. excuse for invading Syria and resuming boots on the ground in Iraq.
Gary Edwards

We The Stupid - Ann Barnhardt on the National Debt Ceiling SCAM - 0 views

www.americanthinker.com/...we_the_stupid.html

Banksters national-debt-Ceiling Obammunism banksters

shared by Gary Edwards on 05 Aug 11 - No Cached
  • Gary Edwards on 05 Aug 11
     
    If your angry over the National Debt Ceiling Scam, you're not alone. Ann Barnhardt is fist pounding furious. And with good reason. This is going to be a long battle. One thing i do disagree with her on though is where Obama will borrow the money to fund the $2.4 Trillion debt increase. She's right that no country in the world has $2.4 Trillion to lend us. But the Banksters have plenty! Two weeks ago the GAO released the results of the first time ever inventory of the Federal Reserve Bankster Cartel. They found that the FRBC had created $16.1 Trillion of our money between 2009 and 2010, and passed that money to member Banksters, international Bankster associates, and too-big-to-fail Wall Street gamblers; at near zero percent interest. Combined with the the US TARP bailout, and the AiG - Fannie Mae - Freddie Mac bailouts, the total cost of converting Bankster debt to USA Taxpayer debt tops out at over $23.4 Trillion. The Banksters are flush with dollars, but what are they going to invest in? It's said that the Federal Reserve owns somewhere between 70%- 80% of the US Treasury issued debt. The way this happens however is that the Federal Reserve first "lends" (at near 0%) created dollars to member Banksters. Then the Banksters purchase the Treasuries at 3.25% and up depending on the payout period per note. In effect, American Taxpayers get to borrow back their own money while paying the Banksters a hefty, risk free handling fee of at least 3.25%. So, with $16.1 Trillion sloshing around, and not much too invest in, the Banksters really need Obama to borrow $2.4 Trillion, and spend a whole lot more. At some point this ponzi scheme will collapse, but not today. Least ways not until the Banksters can launder that $16.1 Trillion freebi. My guess is that the Banksters would like to turn the $16.1 Trill into 3.25% bonds, and then into land, indentured tax obligations (inter-generational), and investments in debt free third world countries - where the
  • Gary Edwards on 05 Aug 11
     
    "- where the game of new world order begins anew. Jaded, cynical, but very much awake and aware...... ~ge~" Sorry, Diigo truncated the comment but only for the Group "End of the American Dream" post. My bookmark actually has the entire comment. Very strange, and i think it's something that might be reported to Maggie. What i have found out is that if you use the diigo plug-in, your comments will be unexpectedly truncated. I've lost losts of stuff over the years. Then i switched to the Chrome plug-in "Share This". There is no truncation, except in the Group view of a post!!! So, the question for Maggie is, "Why are the Group comments to a bookmark unexpectedly truncated?"
Gary Edwards

Jenkins: Obama vs. the 1980s - WSJ.com - 0 views

online.wsj.com/...3454504576490083559745242.html

Obammunism Banksters financial-collapse reagan-capitalism

shared by Gary Edwards on 06 Aug 11 - No Cached
  • "World Tax Reform: A Progress Report," his 1988 volume showed how country after country was following the U.S. in adopting Reagan-style rate-flattening and tax simplification.
  • Mr. Obama now craves a federal infrastructure bank, apparently still unable to see how growth might emerge except by bureaucrats bossing around tax dollars.
  • Simpson-Bowles Commission—proposed a Reagan-style tax reform
  • Gary Edwards on 06 Aug 11
     
    excerpt:  Instead of a "stimulus" to create jobs by financing useful investments that would have paid a growth dividend in the future, we got a debt-fueled permanent expansion of entitlements and the size of government. In health care, instead of reforms to encourage competent consumers not to treat health care as a free lunch, we got a doubling down on health-care free lunchism. In banking, instead of new incentives to cause creditors to pull in the reins on risk-taking banks, we got a formalization of too big to fail. All economic crises begin differently-this one began in housing-but eventually they morph into the same old crisis of forgetting what works. Think about the last big crisis of faith in American capitalism in the early 1980s. The panic was eventually crystallized in dueling Harvard Business Review articles by George Gilder and Charles Ferguson. Mr. Ferguson, an MIT-based consultant, argued the U.S was dooming itself to vassalage unless Washington brushed aside small, poorly-funded entrepreneurs and concentrated regulatory favors and subsidies on giant firms like IBM, AT&T, Digital Equipment and Kodak. Mr. Gilder championed the then-emerging Silicon Valley paradigm. He quoted technologist Carver Mead: "We depend on the innovations of the citizens of a free economy to keep ahead of the bureaucrats and the people who make a living on control and planning. In the long term, it's the element of surprise that gives us the edge over more controlled economies." Who won hardly needs to be belabored except that it apparently does need to be belabored. Almost everything Mr. Obama understands as pro-growth consists of bets on "bureaucrats and the people who make a living on control and planning."
Paul Merrell

Elizabeth Warren Denounces Travesty of Government "Settlement" With Goldman Sachs - 0 views

www.truth-out.org/...elizabeth-warren-denounces

banksters regulation Goldman Sachs Warren litigation penalties

shared by Paul Merrell on 25 Jan 16 - No Cached
  • Criticism of US government leniency on Wall Street legal transgressions is now being covered widely - even by trade publications such as the National Mortgage Professional Magazine. On January 18, the trade publication ran an article about Sen. Elizabeth Warren (D-Massachusetts) condemning the most recent US government settlement with a "too-big-to-fail" financial firm, in this case Goldman Sachs, for illegal abuse of the mortgage market: Sen. Warren used her Facebook page to denounce the agreement, noting that the settlement sum was “barely a fraction of the billions investors lost” while arguing that Goldman Sachs was not properly penalized for its actions. “That’s not justice – it’s a white flag of surrender,” she wrote. “It’s time to end this farce. These companies think they’re above the law – and too many government officials go along with them. A first step would be to pass the bipartisan Truth in Settlements Act to shine more light on these backroom deals. A second step would be to get government officials who have the backbone to fight back.” Warren’s comments were echoed by the nonprofit U.S. Public Interest Research Group (U.S. PIRG).
  • The publication, which is geared toward professionals in the mortgage industry, also tellingly noted, "In announcing the [$5.1 billion] settlement, Goldman Sachs made no admission of guilt or error, and no executive from the New York-based financial giant will face criminal or civil charges."  As we have noted in this space many times, the seemingly large financial penalties levied on Wall Street firms for illegal activity are not so large, in the context of those firms' budgets: The fines are generally less than the revenue that the firms generated by engaging in the often fraudulent practices in the first place. As The Huffington Post noted in a report on the recent settlement,  About $2.4 billion of the settlement is in the form of a government penalty. The bank has said that it securitized about $125 billion of home loans between 2005 and 2008, of which about $23 billion eventually soured. The penalty represents about 10 percent of investors’ losses. Goldman can deduct the rest of the settlement, about $2.7 billion, from its future tax bills, according to a person familiar with the accord. The bank said the settlement will reduce its fourth-quarter profit by about $1.5 billion. It reports earnings next week.
  • Goldman Sachs is being let off the hook for 90 percent of the investor losses for which it was primarily responsible. Furthermore, as is consistent with past settlements with Wall Street firms by the Department of Justice and other executive agencies, much of the fine is tax-deductible. As BuzzFlash has noted before, this rewards Wall Street financial companies by allowing them to factor in settlements with the government for illegal behavior as nothing more than the cost of doing business. Former Attorney General Eric Holder, who left office last year to resume a six-figure-salary partnership at the DC corporate law firm of Covington & Burling (which defends many of the firms that Holder was responsible for prosecuting as attorney general), infamously stated to a US Senate committee in March of 2013: I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if we do prosecute - if we do bring a criminal charge - it will have a negative impact on the national economy, perhaps even the world economy.  Apparently, under current Attorney General Loretta Lynch, that legal exemption for too-big-to-fail financial firms and their executives has not changed.
Paul Merrell

US Intel Agencies Try to Strong-Arm Trump into War With Russia - 0 views

www.counterpunch.org/...arm-trump-into-war-with-russia

war & peace Russia-demonization Syria pivot-to-Asia U.S.-foreign-policy

shared by Paul Merrell on 12 Jan 17 - No Cached
  • Powerful elites are using the credibility of the US Intelligence agencies to demonize Russia and prepare the country for war. This is the real meaning of the “Russia hacking” story which, as yet, has not produced any hard evidence of Russian complicity. Last week’s 25-page report, that was released by the Director of National Intelligence James Clapper, illustrates to what extent intelligence is being “fixed around the policy”.  Just as the CIA generated false information related to Weapons of Mass Destruction to soften public resistance to war with Iraq, so too, the spurious allegations in the DNI’s politically-motivated report are designed to depict Russia as a growing threat to US national security. The timing of the report has less to do with the election of Donald Trump as President than it does with critical developments in Syria where the Russian military has defeated US-proxies in Syria’s industrial hub, Aleppo, rolling back Washington’s 15-year War of Terror and derailing the imperialist plan to control vital resources and pipeline corridors across the Middle East and Central Asia. Russia has become the main obstacle to Washington achieving its strategic vision of pivoting to Asia and maintaining its dominant role into the next century. The Intelligence Community has been coerced into compromising its credibility to incite fear of Russia and to advance the geopolitical ambitions of deep state powerbrokers.
  • The “Russia hacking” flap shows how far the Intel agencies have veered from their original mandate, which is to impartially gather and analyze information that may be vital to US national security. As we have seen in the last two weeks, the leaders of these organizations feel free to offer opinions on  issues that clearly conflict with those of the new President-elect. Trump has stated repeatedly that he wants to reduce tensions and reset relations with Russia, but that policy is being sabotaged by members of the intelligence community, particularly CIA Director John Brennan who appeared just last week on PBS Newshour with Judy Woodruff. Here’s an excerpt from the interview: “We see that there are still a lot of actions that Russia is undertaking that undermine the principles of democracy in so many countries. What has happened in our recent election is not new. The Russians have engaged in trying to manipulate elections in Europe for a number of years… the Russians tried to interfere in our electoral process recently, and were actively involved in that. And that is something that we can’t countenance.” (“Interview with CIA Director John Brennan”,  PBS Newshour)
  • Brennan, of course, provided no evidence for his claims nor did he mention the hundreds of CIA interventions around the world. But Brennan’s accusations are less important than the fact that his appearance on a nationwide broadcast identifies him as a political advocate for policies that conflict with those of the new president. Do we really want unelected intelligence officials — whose job it is to provide the president with sensitive information related to national security– to assume a partisan role in shaping policy? And why would Brennan –whose is supposed to “serve at the pleasure of the president”– accept an invitation to offer his views on Russia when he knew they would be damaging to the new administration? Powerful people behind the scenes are obviously pushing the heads of these intelligence agencies to stick to their ‘anti-Moscow’ narrative to force Trump to abandon his plan for peaceful relations with Moscow.  Brennan isn’t calling the shots and neither are Clapper or Comey. They’re all merely agents serving the interests of establishment plutocrats whose geopolitical agenda doesn’t jibe with that of the incoming administration. If that wasn’t the case, then why would the Intelligence Community stake its reputation on such thin gruel as this Russian hacking gibberish? It doesn’t make any sense. The people who launched this campaign are either supremely arrogant or extremely desperate. Which is it?
  • ...2 more annotations...
  • What’s really going on here?  Why have the Intelligence agencies savaged their credibility just to convince people that Russia is up to no good? The Russia hacking story has more to do with recent developments in Syria than it does with delegitimizing Donald Trump. Aleppo was a real wake up call for the US foreign policy establishment which is beginning to realize that their plans for the next century have been gravely undermined by Russia’s military involvement in Syria. Aleppo represents the first time that an armed coalition of allied states (Russia, Iran, Syria, Hezbollah) have actively engaged US jihadist-proxies and soundly beat them to a pulp. The stunning triumph in Aleppo has spurred hope among the vassal states that Washington’s bloody military juggernaut can be repelled, rolled back and defeated. And if Washington’s CIA-armed, trained and funded jihadists can be repelled, then the elitist plan to project US power into Central Asia to dominate the world’s most populous and prosperous region, will probably fail. In other words, the outcome in Aleppo has cast doubts on Uncle Sam’s ability to successfully execute its pivot to Asia. That’s why the Intel agencies have been employed to shape public perceptions on Russia.  Their job is to prepare the American people for an escalation of hostilities between the two nuclear-armed superpowers. US powerbrokers are determined to intensify the conflict and reverse facts on the ground. (Recent articles by elites at the Council on Foreign Relations and the Brookings Institute reveal that they are as committed to partitioning Syria as ever.)  Washington wants to  reassert its exceptional role as the uncontested steward of global security and the lone ‘unipolar’ world power.
  • That’s what this whole “hacking” fiasco is about. The big shots who run the country are trying to strong-arm ‘the Donald’ into carrying their water so the depredations can continue and Central Asia can be transformed into a gigantic Washington-dominated corporate free trade zone where the Big Money calls the shots and Capital reigns supreme. That’s their dreamstate, Capitalist Valhalla. They just need Trump to get-with-the-program so the bloodletting can continue apace.
Paul Merrell

How 'Free Markets' Defame 'Democracy' | Consortiumnews - 0 views

consortiumnews.com/...-free-markets-defame-democracy

war & peace U.S.-foreign-policy U.S.-front-groups NED Freedom-House CIA BIden

shared by Paul Merrell on 13 Mar 15 - No Cached
  • Venezuela seems to be following Ukraine on the neocon hit list for “regime change” as Washington punishes Caracas for acting against a perceived coup threat. But a broader problem is how the U.S. conflates “free markets” with “democracy,” giving “democracy” a bad name, writes Robert Parry.
  • The one common thread in modern U.S. foreign policy is an insistence on “free market” solutions to the world’s problems. That is, unless you’re lucky enough to live in a First World ally of the United States or your country is too big to bully.So, if you’re in France or Canada or – for that matter – China, you can have generous health and educational services and build a modern infrastructure. But if you’re a Third World country or otherwise vulnerable – like, say, Ukraine or Venezuela – Official Washington insists that you shred your social safety net and give free reign to private investors.
  • If you’re good and accept this “free market” domination, you become, by the U.S. definition, a “democracy” – even if doing so goes against the wishes of most of your citizens. In other words, it doesn’t matter what most voters want; they must accept the “magic of the market” to be deemed a “democracy.”Thus, in today’s U.S. parlance, “democracy” has come to mean almost the opposite of what it classically meant. Rather than rule by a majority of the people, you have rule by “the market,” which usually translates into rule by local oligarchs, rich foreigners and global banks.Governments that don’t follow these rules – by instead shaping their societies to address the needs of average citizens – are deemed “not free,” thus making them targets of U.S.-funded “non-governmental organizations,” which train activists, pay journalists and coordinate business groups to organize an opposition to get rid of these “un-democratic” governments.
  • ...6 more annotations...
  • If a leader seeks to defend his or her nation’s sovereignty by such means as requiring these NGOs to register as “foreign agents,” the offending government is accused of violating “human rights” and becomes a candidate for more aggressive “regime change.”Currently, one of the big U.S. complaints against Russia is that it requires foreign-funded NGOs that seek to influence policy decisions to register as “foreign agents.” The New York Times and other Western publications have cited this 2012 law as proof that Russia has become a dictatorship, while ignoring the fact that the Russians modeled their legislation after a U.S. law known as the “Foreign Agent Registration Act.”So, it’s okay for the U.S. to label people who are paid by foreign entities to influence U.S. policies as “foreign agents” – and to imprison people who fail to register – but not for Russia to do the same. A number of these NGOs in Russia and elsewhere also are not “independent” entities but instead are financed by the U.S.-funded National Endowment for Democracy (NED) and the U.S. Agency for International Development.
  • There is even a circular element to this U.S. complaint. Leading the denunciation of Russia and other governments that restrain these U.S.-financed NGOs is Freedom House, which marks down countries on its “freedom index” when they balk at letting in this back-door U.S. influence. However, over the past three decades, Freedom House has become essentially a subsidiary of NED, a bought-and-paid-for NGO itself.
  • That takeover began in earnest in 1983 when CIA Director William Casey was focused on creating a funding mechanism to support Freedom House and other outside groups that would engage in propaganda and political action that the CIA had historically organized and financed covertly. Casey helped shape the plan for a congressionally funded entity that would serve as a conduit for this U.S. government money.But Casey recognized the need to hide the CIA’s strings. “Obviously we here [at CIA] should not get out front in the development of such an organization, nor should we appear to be a sponsor or advocate,” Casey said in one undated letter to then-White House counselor Edwin Meese III – as Casey urged creation of a “National Endowment.” [See Consortiumnews.com’s “CIA’s Hidden Hand in ‘Democracy’ Groups.”]Casey’s planning led to the 1983 creation of NED, which was put under the control of neoconservative Carl Gershman, who remains in charge to this day. Gershman’s NED now distributes more than $100 million a year, which included financing scores of activists, journalists and other groups inside Ukraine before last year’s coup and now pays for dozens of projects in Venezuela, the new emerging target for “regime change.”
  • But NED’s cash is only a part of how the U.S. government manipulates events in vulnerable countries. In Ukraine, prior to the February 2014 coup, neocon Assistant Secretary of State Victoria Nuland reminded Ukrainian business leaders that the United States had invested $5 billion in their “European aspirations.”Nuland then handpicked who would be the new leadership, telling U.S. Ambassador Geoffrey Pyatt that “Yats is the guy,” referring to “free market” politician Arseniy Yatsenyuk, who not surprisingly emerged as the new prime minister after a violent coup ousted elected President Viktor Yanukovych on Feb. 22, 2014.The coup also started a civil war that has claimed more than 6,000 lives, mostly ethnic Russians in eastern Ukraine who had supported Yanukovych and were targeted for a ruthless “anti-terrorist operation” spearheaded by neo-Nazi and other far-right militias dispatched by the U.S.-backed regime in Kiev. But Nuland blames everything on Russia’s President Vladimir Putin. [See Consortiumnews.com’s “Nuland’s Mastery of Ukraine Propaganda.”]On top of Ukraine’s horrific death toll, the country’s economy has largely collapsed, but Nuland, Yatsenyuk and other free-marketeers have devised a solution, in line with the wishes of the Washington-based International Monetary Fund: Austerity for the average Ukrainian.
  • Before the Senate Foreign Relations Committee on Tuesday, Nuland hailed “reforms” to turn Ukraine into a “free-market state,” including decisions “to reduce and cap pension benefits, increase work requirements and phase in a higher retirement age; … [and] cutting wasteful gas subsidies.”In other words, these “reforms” are designed to make the hard lives of average Ukrainians even harder – by slashing pensions, removing work protections, forcing people to work into their old age and making them pay more for heat during the winter.‘Sharing’ the Wealth In exchange for those “reforms,” the IMF approved $17.5 billion in aid that will be handled by Ukraine’s Finance Minister Natalie Jaresko, who until last December was a former U.S. diplomat responsible for a U.S. taxpayer-financed $150 million investment fund for Ukraine that was drained of money as she engaged in lucrative insider deals – deals that she has fought to keep secret. Now, Ms. Jaresko and her cronies will get a chance to be the caretakers of more than 100 times more money. [See Consortiumnews.com’s “Ukraine’s Finance Minister’s American ‘Values.’”]
  • Other prominent Americans have been circling around Ukraine’s “democratic” opportunities. For instance, Vice President Joe Biden’s son Hunter was named to the board of directors of Burisma Holdings, Ukraine’s largest private gas firm, a shadowy Cyprus-based company linked to Privat Bank.Privat Bank is controlled by the thuggish billionaire oligarch Ihor Kolomoysky, who was appointed by the Kiev regime to be governor of Dnipropetrovsk Oblast, a south-central province of Ukraine. In this tribute to “democracy,” the U.S.-backed Ukrainian authorities gave an oligarch his own province to rule. Kolomoysky also has helped finance paramilitary forces killing ethnic Russians in eastern Ukraine.Burisma has been lining up well-connected American lobbyists, too, some with ties to Secretary of State John Kerry, including Kerry’s former Senate chief of staff David Leiter, according to lobbying disclosures.As Time magazine reported, “Leiter’s involvement in the firm rounds out a power-packed team of politically-connected Americans that also includes a second new board member, Devon Archer, a Democratic bundler and former adviser to John Kerry’s 2004 presidential campaign. Both Archer and Hunter Biden have worked as business partners with Kerry’s son-in-law, Christopher Heinz, the founding partner of Rosemont Capital, a private-equity company.” [See Consortiumnews.com’s “The Whys Behind the Ukraine Crisis.”]
Paul Merrell

Why Aren't Big Bankers in Jail? - FAIR: Fairness & Accuracy In Reporting - 0 views

fair.org/...why-arent-big-bankers-in-jail

financial-collapse criminal-immunity too-big-to-jail too-big-to-fail banksters

shared by Paul Merrell on 05 Jan 14 - No Cached
  • The man in charge of a bank that engaged in massive mortgage fraud chatted with a corporate media host (CNBC Squawk on the Street, 7/12/13) about the fact that virtually none of those who enriched themselves while eviscerating the life savings of many blameless people, derailing the US economy along the way, have faced criminal prosecution
  • Granted, Cramer is no one's idea of a serious interrogator of the financial system (FAIR Blog, 3/13/09). But much journalism on the question of criminal prosecution of industry leaders amounts to similar apologia. While there have been substantive inquiries into the wrongdoing of investment banks and auditors, those calling for jail time are often dismissed as irrational, driven by "blood lust" (Washington Post, 9/12/13), "anger" (Chicago Tribune, 11/30/13) or "vengeance" (Washington Post, 11/18/13).
  • We're told such calls come from the margins: That no "financial industry types" have been jailed is "a recurring theme among Occupy Wall Street protesters and some Democratic politicians" (Christian Science Monitor, 10/11/11) or "the Occupy Wall Street crowd" (New York Times, 3/1/13). People who believe bankers should go to jail are deflecting blame—from the people: "The real scandal," explained the Washington Post's Charles Lane ("Banks Aren't the Bad Guys," 11/18/13), was "Americans' shared, erroneous belief in ever-rising housing prices and corresponding mania to profit from them." And maybe they need to move on: "This all happened a really long time ago. What-ever happened to the statute of limitations?" the Washington Post (11/19/13) asked itself in a recent Q&A.
  • ...2 more annotations...
  • What the soft-headed among us don't recognize, evidently, is that "blowing up your company isn't necessarily a crime," as the Christian Science Monitor (10/11/11) put it. "America doesn't criminalize bad business decisions," wrote the Washington Post (9/12/13). Or, from Businessweek (5/12/11): "In the American legal system, people who merely act badly or unwisely do not do time." But some have no trouble pointing to actual crimes in the crisis. "Issuing a mortgage that is known to be based on false information and then selling it in the secondary market is fraud and punishable by time in jail," economist Dean Baker (Beat the Press, 9/13/13) noted, citing the Financial Crisis Inquiry Commission. "Packaging loans into mortgage backed securities that an investment bank has good reason to believe are based on false information is also fraud and punishable by time in jail." Former federal bailout inspector Neil Barofsky agrees we're not talking about a perhaps lamentable but inactionable "culture." Asked by NPR (7/26/13) about the no-actual-crime "narrative," Barofsky answered: "No. I think that there was a tremendous amount of fraud."
  • Certainly the problem extends beyond the actions of a few bigwigs. But people who say jailing industry executives should be the sole response exist only in pundits' minds. William Black, who advocates prison for industry executives (Moyers & Company, 9/17/13), pointed to structural reasons for a lack of prosecutions, including regulatory agencies' abandonment of key functions since the 1980s' Savings & Loan scandal. "When the regulators ceased making criminal referrals—which had nothing to with an end of crime, obviously; it just had to do with a refusal to be involved in the prosecutorial effort anymore—they doomed us to a disaster where we would not succeed." Others say revolving-door relationships between banks and their government watchdogs contribute to settlements that are too generous to serve as deterrents (LittleSis, 10/23/13). Even the historic $13 billion JP Morgan settlement winds up being less than meets the eye, as much of the fine is tax-deductible, $4 billion of it is part of an earlier settlement and much of the rest will take the form of mortgage relief that will help the bank in the long run (Salon, 11/20/13).
  • Paul Merrell on 05 Jan 14
     
    Fairness & Accuracy in Reporting weighs in on mainstream media's reluctance to call for banksters to be issued horizontal striped suits, noting that the excuses used ignore that there are real victims and that real crimes were comitted. 
Gary Edwards

Who Gave Warren Buffett The Authority To Discuss Billionaire Guilt? - 1 views

www.businessinsider.com/scuss-billionaire-guilt-2011-8

Banksters Buffett-phony

shared by Gary Edwards on 16 Aug 11 - No Cached
  • Stop coddling the super-rich he says.
    • Gary Edwards
      Gary Edwards on 16 Aug 11
       
      Disclosure here:  I actually met Buffett back in the 70's while workign at the Millyard Restaurant in Manchester NH.  Buffett purchased the old Amoskeag Mills "Berkshire Hathaway" shirt manufacturing building just across the Merrimack River.  Nice guy, very friendly, polite and considerate.  Of course, that was years before he made it big investing in the worldwide, McDonald's led USA franchise explosion of the late 80"s.  For sure he made a great call predicting that President Reagan would succeed in ending the Cold War, collapsing the walls, and unleashing the capitalist forces of both free and merchantilist trade.  And that the USA Franchise system was extremely well prepared to launch worldwide as soon as the barriers fell.  He made billions off this call.  Knowing Paul Volker does pay off.
  • Gary Edwards on 16 Aug 11
     
    What is it with billionaires these days? Buffett suggesting we need to tax him more? Stop coddling the super-rich he says.  In other words, he's saying "I've done such a fine job with my money, now I want to give more to a government that hasn't."  Mr. Buffett, has someone changed your suppositions? It seems counter intuitive to your "invest in great management" philosophy.  Shouldn't you really be telling the government to cut costs? Just like you demanded of your Netjets, Clayton Homes, and Helzberg Diamond Shops executives.
Gary Edwards

The Great Deceiver - The Federal Reserve - 0 views

www.thedailybell.com/...-Deceiver--The-Federal-Reserve

Paul-Craig-Roberts Federal-Reserve-Bankster-Cartel

shared by Gary Edwards on 13 May 14 - No Cached
  • From November 2013 through January 2014 Belgium with a GDP of $480 billion purchased $141.2 billion of US Treasury bonds. Somehow Belgium came up with enough money to allocate during a 3-month period 29 percent of its annual GDP to the purchase of US Treasury bonds. Certainly Belgium did not have a budget surplus of $141.2 billion. Was Belgium running a trade surplus during a 3-month period equal to 29 percent of Belgium GDP? No, Belgium's trade and current accounts are in deficit. Did Belgium's central bank print $141.2 billion worth of euros in order to make the purchase? No, Belgium is a member of the euro system, and its central bank cannot increase the money supply. So where did the $141.2 billion come from?
  • There is only one source. The money came from the US Federal Reserve, and the purchase was laundered through Belgium in order to hide the fact that actual Federal Reserve bond purchases during November 2013 through January 2014 were $112 billion per month. In other words, during those 3 months there was a sharp rise in bond purchases by the Fed. The Fed's actual bond purchases for those three months are $27 billion per month above the original $85 billion monthly purchase and $47 billion above the official $65 billion monthly purchase at that time. (In March 2014, official QE was tapered to $55 billion per month and to $45 billion for May.) Why did the Federal Reserve have to purchase so many bonds above the announced amounts and why did the Fed have to launder and hide the purchase? Some country or countries, unknown at this time, for reasons we do not know dumped $104 billion in Treasuries in one week.
  • What are the reasons for this deception by the Federal Reserve?
  • ...6 more annotations...
  • The Fed realized that its policy of Quantitative Easing initiated in order to support the balance sheets of "banks too big to fail" and to lower the Treasury's borrowing cost was putting pressure on the US dollar's value. Tapering was a way of reassuring holders of dollars and dollar-denominated financial instruments that the Fed was going to reduce and eventually end the printing of new dollars with which to support financial markets. The image of foreign governments bailing out of Treasuries could unsettle the markets that the Fed was attempting to soothe by tapering.
  • Its wars and hundreds of overseas military bases could not be financed.
  • Washington's power ultimately rests on the dollar as world reserve currency. This privilege, attained at Bretton Woods following World War 2, allows the US to pay its bills by issuing debt. The world currency role also gives the US the power to cut countries out of the international payments system and to impose sanctions.
  • As impelled as the Fed is to protect the large banks that sit on the board of directors of the NY Fed, the Fed has to protect the dollar. That the Fed believed that it could not buy the bonds outright but needed to disguise its purchase by laundering it through Belgium suggests that the Fed is concerned that the world is losing confidence in the dollar. If the world loses confidence in the dollar, the cost of living in the US would rise sharply as the dollar drops in value. Economic hardship and poverty would worsen. Political instability would rise. If the dollar lost substantial value, the dollar would lose its reserve currency status. Washington would not be able to issue new debt or new dollars in order to pay its bills.
  • A hundred billion dollar sale of US Treasuries is a big sale. If the seller was a big holder of Treasuries, the sale could signal the bond market that a big holder might be selling Treasuries in large chunks. The Fed would want to keep the fact and identity of such a seller secret in order to avoid a stampede out of Treasuries. Such a stampede would raise interest rates, collapse US financial markets, and raise the cost of financing the US debt. To avoid the rise in interest rates, the Fed would have to accept the risk to the dollar of purchasing all the bonds. This would be a no-win situation for the Fed, because a large increase in QE would unsettle the market for US dollars.
  • The withdrawal from unsustainable empire would begin. The rest of the world would see this as the silver lining in the collapse of the international monetary system brought on by the hubris and arrogance of Washington.
  • Gary Edwards on 13 May 14
     
    Incredible.  Since 2009, the Fed has been pumping $85 Billion per month into the Wall Street hedge funds of it's member banks.  Economist Paul Craig Roberts noticed some funny business the past few months regarding the Fed's numbers.  It turns out that while the Fed has been trying to convince the world that they are tapering off on their $85 Billion per month debt printing spree, the truth is just the opposite.  They have increased the debt spree to $112 Billion per month; with the help of a secret money laundering operation involving Belgium! Incredible!
Paul Merrell

Amend the Federal Reserve: We Need a Central Bank that Serves Main Street | Global Rese... - 0 views

www.globalresearch.ca/...5360637

banksters federal-reserve Federal-Reserve-reform

shared by Paul Merrell on 11 Dec 13 - No Cached
  • December 23rd marks the 100th anniversary of the Federal Reserve. Dissatisfaction with its track record has prompted calls to audit the Fed and end the Fed.  At the least, Congress needs to amend the Fed, modifying the Federal Reserve Act to give the central bank the tools necessary to carry out its mandates. The Federal Reserve is the only central bank with a dual mandate. It is charged not only with maintaining low, stable inflation but with promoting maximum sustainable employment. Yet unemployment remains stubbornly high, despite four years of radical tinkering with interest rates and quantitative easing (creating money on the Fed’s books). After pushing interest rates as low as they can go, the Fed has admitted that it has run out of tools. At an IMF conference on November 8, 2013, former Treasury Secretary Larry Summers suggested that since near-zero interest rates were not adequately promoting people to borrow and spend, it might now be necessary to set interest at below zero. This idea was lauded and expanded upon by other ivory-tower inside-the-box thinkers, including Paul Krugman. Negative interest would mean that banks would charge the depositor for holding his deposits rather than paying interest on them. Runs on the banks would no doubt follow, but the pundits have a solution for that: move to a cashless society, in which all money would be electronic. “This would make it impossible to hoard cash outside the bank,” wrote Danny Vinik in Business Insider, “allowing the Fed to cut interest rates to below zero, spurring people to spend more.”
  • Business Week quotes Douglas Holtz-Eakin, a former director of the Congressional Budget Office: “We’ve had four years of extraordinarily loose monetary policy without satisfactory results, and the only thing they come up with is we need more?” Paul Craig Roberts, former Assistant Secretary of the Treasury, calls the idea “harebrained.” He is equally skeptical of quantitative easing, the Fed’s other tool for stimulating the economy. Roberts points to Andrew Huszar’s explosive November 11th Wall Street Journal article titled “Confessions of a Quantitative Easer,” in which Huszar says that QE was always intended to serve Wall Street, not Main Street.  Huszar’s assignment at the Fed was to manage the purchase of $1.25 trillion in mortgages with dollars created on a computer screen. He says he resigned when he realized that the real purpose of the policy was to drive up the prices of the banks’ holdings of debt instruments, to provide the banks with trillions of dollars at zero cost with which to lend and speculate, and to provide the banks with “fat commissions from brokering most of the Fed’s QE transactions.”
  • Bernanke created debt-free money and bought government debt with it, returning the interest to the Treasury. The result was interest-free credit, a good deal for the government. But the problem, says Lounsbury, is that: The helicopters dropped all the money into a hole in the ground (excess reserve accounts) and very little made its way into the economy.  It was essentially a rearrangement of the balance sheets of the creditor nation with little impact on the debtor nation. . . . The fatal flaw of QE is that it delivers money to the accounts of the creditors and does nothing for the accounts of the debtors. Bad debts remain unserviced and the debt crisis continues.
  • ...2 more annotations...
  • Bernanke delivered the money to the creditors because that was all the Federal Reserve Act allowed. If the Fed is to fulfill its mandate, it clearly needs more tools; and that means amending the Act.  Harvard professor Ken Rogoff, who spoke at the November 2013 IMF conference before Larry Summers, suggested several possibilities; and one was to broaden access to the central bank, allowing anyone to have an ATM at the Fed. Rajiv Sethi, Barnard/Columbia Professor of Economics, expanded on this idea in a blog titled “The Payments System and Monetary Transmission.” He suggested making the Federal Reserve the repository for all deposit banking. This would make deposit insurance unnecessary; it would eliminate the need to impose higher capital requirements; and it would allow the Fed to implement monetary policy by targeting debtor rather than creditor balance sheets. Instead of returning its profits to the Treasury, the Fed could do a helicopter drop directly into consumer bank accounts, stimulating demand in the consumer economy. John Lounsbury expanded further on these ideas. He wrote in Econintersect that they would open a pathway for investment banking and depository banking to be separated from each other, analogous to that under Glass-Steagall. Banks would no longer be too big to fail, since they could fail without destroying the general payment system of the economy. Lounsbury said the central bank could operate as a true public bank and repository for all federal banking transactions, and it could operate in the mode of a postal savings system for the general populace.
  • The Federal Reserve Act was drafted by bankers to create a banker’s bank that would serve their interests. It is their own private club, and its legal structure keeps all non-members out.  A century after the Fed’s creation, a sober look at its history leads to the conclusion that it is a privately controlled institution whose corporate owners use it to direct our entire economy for their own ends, without democratic influence or accountability.  Substantial changes are needed to transform the Fed, and these will only come with massive public pressure. Congress has the power to amend the Fed – just as it did in 1934, 1958 and 2010. For the central bank to satisfy its mandate to promote full employment and to become an institution that serves all the people, not just the 1%, the Fed needs fundamental reform.
  • Paul Merrell on 11 Dec 13
     
    In my view, the Fed is beyond salvage. It needs abolition, not a new role. The Constitution grants Congress the power to mint and coin money, not a group of rent-seeking banksters. 
Paul Merrell

Gangster Bankers: Too Big to Jail | Politics News | Rolling Stone - 0 views

www.rollingstone.com/...nkers-too-big-to-jail-20130214

HSBC USB Libor too-big-to-jail too-big-to-fail

shared by Paul Merrell on 05 Jan 14 - No Cached
  • The deal was announced quietly, just before the holidays, almost like the government was hoping people were too busy hanging stockings by the fireplace to notice. Flooring politicians, lawyers and investigators all over the world, the U.S. Justice Department granted a total walk to executives of the British-based bank HSBC for the largest drug-and-terrorism money-laundering case ever. Yes, they issued a fine – $1.9 billion, or about five weeks' profit – but they didn't extract so much as one dollar or one day in jail from any individual, despite a decade of stupefying abuses. People may have outrage fatigue about Wall Street, and more stories about billionaire greedheads getting away with more stealing often cease to amaze. But the HSBC case went miles beyond the usual paper-pushing, keypad-punching­ sort-of crime, committed by geeks in ties, normally associated­ with Wall Street. In this case, the bank literally got away with murder – well, aiding and abetting it, anyway.
  • Paul Merrell on 05 Jan 14
     
    One I missed from last February by Rolling Stone's Matt Taibbi. "An arrestable class and an unarrestable class. We always suspected it, now it's admitted. So what do we do?"
Gary Edwards

Obama To Americans: You Don't Deserve To Be Free - Forbes - 1 views

www.forbes.com/...ns-you-dont-deserve-to-be-free

Obammunism Statism Ayn-Rand-Libertarian

shared by Gary Edwards on 02 Jan 14 - No Cached
  • President Obama’s Kansas speech is a remarkable document. In calling for more government controls, more taxation, more collectivism, he has two paragraphs that give the show away. Take a look at them. there is a certain crowd in Washington who, for the last few decades, have said, let’s respond to this economic challenge with the same old tune. “The market will take care of everything,” they tell us. If we just cut more regulations and cut more taxes–especially for the wealthy–our economy will grow stronger. Sure, they say, there will be winners and losers. But if the winners do really well, then jobs and prosperity will eventually trickle down to everybody else. And, they argue, even if prosperity doesn’t trickle down, well, that’s the price of liberty. Now, it’s a simple theory. And we have to admit, it’s one that speaks to our rugged individualism and our healthy skepticism of too much government. That’s in America’s DNA. And that theory fits well on a bumper sticker. (Laughter.) But here’s the problem: It doesn’t work. It has never worked. (Applause.) It didn’t work when it was tried in the decade before the Great Depression. It’s not what led to the incredible postwar booms of the ’50s and ’60s. And it didn’t work when we tried it during the last decade. (Applause.) I mean, understand, it’s not as if we haven’t tried this theory.
  • The typical Republican would never, ever say “the market will take care of everything.” He’d say, “the market will take care of most things, and for the other things, we need the regulatory-welfare state.” They are for individualism–except when they are against it. They are against free markets and individualism not only when they agree with the Left that we must have antitrust laws and the Federal Reserve, but also when they demand immigration controls, government schools, regulatory agencies, Medicare, laws prohibiting abortion, Social Security, “public works” projects, the “social safety net,” laws against insider trading, banking regulation, and the whole system of fiat money.
  • I pick 100 years deliberately, because it was exactly 100 years ago that a gigantic anti-capitalist measure was put into effect: the Federal Reserve System. For 100 years, government, not the free market, has controlled money and banking. How’s that worked out? How’s the value of the dollar held up since 1913? Is it worth one-fiftieth of its value then or only one-one-hundredth? You be the judge. How did the dollar hold up over the 100 years before this government take-over of money and banking? It actually gained slightly in value.
  • ...5 more annotations...
  • Laissez-faire hasn’t existed since the Sherman Antitrust Act of 1890. That was the first of a plethora of government crimes against the free market.
  • Though not in Washington, I’m in that “certain crowd” that has been saying for decades that the market will take care of everything. It’s not really a crowd, it’s a tiny group of radicals–radicals for capitalism, in Ayn Rand’s well-turned phrase. The only thing that the market doesn’t take care of is anti-market acts: acts that initiate physical force. That’s why we need government: to wield retaliatory force to defend individual rights. Radicals for capitalism would, as the Declaration of Independence says, use government only “to secure these rights”–the rights to life, liberty, property, and the pursuit of happiness. (Yes, I added “property” in there–property rights are inseparable from the other three.) That’s the political philosophy on which Obama is trying to hang the blame for the recent financial crisis and every other social ill. But ask yourself, are we few radical capitalists in charge? Have radical capitalists been in charge at any time in the last, oh, say 100 years?
  • Even you, dear reader, are probably wondering how on earth anyone could challenge things like Social Security, government schools, and the FDA. But that’s not the point. The point is: these statist, anti-capitalist programs exist and have existed for about a century. The point is: Obama is pretending that the Progressive PGR -2.02% Era, the New Deal, and the Great Society were repealed, so that he can blame the financial crisis on capitalism. He’s pretending that George Bush was George Washington.
  • What Obama is indeed responsible for is the injustice of robbing some to (allegedly) benefit others. To the extent that cronyism, not the free market, sets income, that is an injustice to be laid at the statists’ door.
  • There is no such problem as “unemployment” under capitalism. Prices fall to clear the market. Twice the work force could be employed if average wages dropped in half. But that’s nominal wages; with a constant money supply, prices would also fall in half–or slightly more than that. This isn’t just theory. America’s workforce has grown steadily decade after decade, yet the standard of living has risen at the same time. I grant you that the rise has slowed as statist intervention has grown. Think of the phenomenal progress between, say 1900 and 1920 as compared to the minor progress from 1993 to 2013. Most of the progress in the last 20 years has come in the freest area of the economy: electronics and computing.
  • Gary Edwards on 02 Jan 14
     
    Harry Binswanger defends laissez-faire capitalism, using Ayn Rand Objectivism.
  • Paul Merrell on 02 Jan 14
     
    The major problem with Ayn Rand Objectivism is that it's an "ism." The Utopian ideal it is based on has never existed in reality and likely never will; its principles have never been tested. Moreover, I will argue that Binswanger is incorrect in arguing that the anti-capitalist phenomenon in America began with creation of the Federal Reserve; it dates much farther back. The economic basis for the Revolutionary War was largely the Crown-granted monopolies granted to the first great British "companies" (corporations), which had the effect of forcing North American colonists to pay monopoly rents for common goods and kept American ship owners from importing those goods from elsewhere to sell at a lower price. The Founding Fathers were strongly against privately-owned corporations and government-granted monopolies, with only two exceptions, copyrights for literary works and patents for inventions. The Constitution's prohibition against government-granted monopolies is implicit in its allowance for only two narrowly-defined types. The Founding Fathers' writings explicitly discussed the difference between "natural" monopolies and those created by government or anti-competitive conduct. During the early years of the nation corporations were permitted by the States, but only for public purposes, usually for public works such as bridges or roads for which there was a need to amass capital. These early American corporations were usually chartered only for the time required to complete the public work and to recover the invesment and a small profit, e.g., from tolls for using a bridge or road. Many of the early state constitutions explicitly limited the lifetime of corporations. However, such early opposition to corporations gradually eroded; corporate purposes were expanded, corporations were granted perpetual life, and the corporate form of doing business became much more widespread. Here, it is important to recognize that corporations are market artificialities c
Paul Merrell

EXCLUSIVE: HW Bush jabs at Cheney, Rumsfeld in new book | Fox News - 0 views

www.foxnews.com/...at-cheney-rumsfeld-in-new-book

war & peace 9-11 Bush41 Bush43 Cheney Rumsfeld

shared by Paul Merrell on 05 Nov 15 - No Cached
  • As an ex-president, George H.W. Bush has generally maintained a respectful silence regarding later administrations. But now he's speaking out, criticizing some big names, and not in ways you might expect.  As revealed in the new Jon Meacham biography, "Destiny And Power: The American Odyssey Of George Herbert Walker Bush," the 41st president has some harsh words for the actions of his son's administration.  In particular, he objects to how Vice President Dick Cheney and Secretary of Defense Donald Rumsfeld reacted to 9/11. He feels they were too hawkish, taking a harsh, inflexible stance that tarnished America's reputation around the world.  "I don't know, he just became very hard-line and very different from the Dick Cheney I knew and worked with," Bush told Meacham. "The reaction [to 9/11], what to do about the Middle East. Just iron-ass. His seeming knuckling under to the real hard-charging guys who want to fight about everything, use force to get our way in the Middle East ..." 
  • The elder Bush believes Cheney -- who had been his own defense secretary back when he held the White House -- acted too independently of his son. "The big mistake that was made was letting Cheney bring in kind of his own State Department," Bush said, apparently referring to the national security team that the vice president assembled in his office.  The 41st president suggested to Meacham that Cheney may even have been pushed toward a harder line by his conservative wife and daughter, Liz and Lynne. "You know, I've concluded that Lynne Cheney is a lot of the eminence grise here ... tough as nails, driving," Bush is quoted as saying.  Cheney laughs off that last claim, taking full responsibility for his actions. "We smile about it, we laugh about it," Cheney told Fox News. "Same with my daughter, with Liz. It's his view, perhaps, of what happened, but my family was not conspiring to somehow turn me into a tougher, more hardnosed individual. I got there all by myself."  Regarding the former president's "iron-ass" remark, Cheney says he takes that as a compliment. "I took it as a mark of pride," he says. "The attack on 9/11 was worse than Pearl Harbor, in terms of the number people killed, and the amount of damage done. I think a lot of people believed then, and still believe to this day that I was aggressive in defending, in carrying out what I thought were the right policies." 
  • Despite the criticism, Cheney says he still respects his former boss and enjoyed Meacham's book, which draws partly from audio diaries that Bush recorded during his presidency.  "The diary's fascinating, because you can see how he felt at various key moments of his life," Cheney said. "So I'm enjoying the book. I recommend it to my friends. And proud to be a part of it."  The elder Bush is even harder on Rumsfeld, saying, "I don't like what he did, and I think it hurt the President" -- his son, that is. "I've never been that close to him anyway. There's a lack of humility, a lack of seeing what the other guy thinks. He's more kick ass and take names, take numbers. I think he paid a price for that. Rumsfeld was an arrogant fellow ..."  Rumsfeld has declined to comment on the book. 
  • ...1 more annotation...
  • For more on the private thoughts and the presidency of the 41st president, watch Fox News Reporting -- Destiny and Power -- The Private Diaries of George Herbert Walker Bush. The new special airs Friday Nov. 6 at 10 p.m. ET on Fox News.
  • Paul Merrell on 05 Nov 15
     
    Fox published first and all subsequent reports thus far seem to be cribbing quotes from Fox. More critical analysis will probably follow once reporters get their hands on the book. It's scheduled for publication on November 10. Bush 41 or his biographer definitely knows how to sell books. On the phrase he used to describe Lynne Cheney, "eminence grise," see https://en.wikipedia.org/wiki/Eminence_grise  (note that "grise" is the French feminine singular form of "gris", https://en.wiktionary.org/wiki/grise ), meaning "grey." The blaming of his son's principle handlers for his son's failings as a leader makes me wonder why Bush 41 did not tell Bush43 to cool his jets when the latter first got interested in running for public office. Bush 41 had to know that Bush 43 lacked the intelligence to make wise, independent decisions. 
Gary Edwards

The Pesky Neighbor and the Debt Ceiling by Ron Paul - 0 views

lewrockwell.com/paul754.html

Ron-Paul Lew-Rockwell national-debt-Ceiling obammunism financial-collapse banksters

shared by Gary Edwards on 26 Jul 11 - No Cached
  • Gary Edwards on 26 Jul 11
     
    excerpt: The government is using the usual scare tactics to strong-arm the people into going along with more spending. Remember the rhetoric surrounding the big bailout of October 2008? We were told, not that this would be calamitous for the banks, but for the people, who would continue to experience massive job losses and foreclosures. We were told that the economy would sink into a deep recession if this money was not handed out to too-big-to-fail corporate cronies. So, after much hand-wringing, leaders from both parties, against unprecedented public outcry, agreed to shower money on the banks and increase the debt. The banks learned nothing, except that Washington will come to their rescue, no matter what. The people, however, continued to lose their jobs and houses anyway, and here we are, still in a deep recession.
« First ‹ Previous 41 - 60 of 87 Next › Last »
Showing 20▼ items per page