Stealing From You and Me As the Public Carries On Its Belief in Fantasies
What ever would possess intelligent professionals such as those running the
finances of major financial institutions to leverage their equity 88 to one
in the case of Citigroup and 134 to one in the case of Bank of America? JP
Morgan's credit exposure to financial derivatives, (financial weapons of mass
destruction) at last glance exceeded 400 to 1! An undergraduate student with
average intelligence would clearly see that such outrageous levels of leverage
would guarantee a bad ending. So what was it that compelled supposedly best
of breed financial officers to act like total nincompoops? Well, if you had
tomorrow's sports pages you might be willing to bet a little more heavily on
the horse races today if you believed you already knew the outcome. When you
view the landscape and try to make sense of how these financial institutions
could possibly have allowed themselves to get to such extreme levels of leverage,
common sense leads one to believe that the only thing that could compel such
reckless behavior was that the parties involved believed they already knew
the outcome of such bets. This goes beyond arrogance; it involves cheating,
rigged markets, and total disregard of unintended consequences. So, if it follows
that no one in their right mind would get this leveraged without knowing the
outcome beforehand, then you should be able to deduce that these bankers and
brokers have been purposely stealing from the rest of us who enter trades under
the assumption of free markets. Their use of off market derivatives have reached
as high as over $1 quadrillion in financial bets that have made a mockery of
price discovery in the traditional markets. Here is a question I haven't seen
asked: Where are all the tax revenues from all of this unfathomable black market
trading? Just 1% of $1 quadrillion is $10 trillion. Shouldn't at least that
much have resulted in someone's tax liability? More corruption. Bernie Madoff
has admittedly participated in a $50 billion Ponzi scheme while he still sits
in the comfort of his home, where is the outrage? What possible explanation
can there be for Madoff to not yet be in jail other than that he can implicate
some very powerful people that have arranged for him to remain in his home?
It is obvious that since our citizens do not seem to care, our Government can
do whatever it pleases.
The secretive TARP plan and the rest of the bailouts are more of the same.
Can anyone say what good any of the trillions being thrown around have done?
The Administrators refuse to tell us where the money has gone. The best case
scenario is that they don't want us to know where the money went because they
feel it would create a panic. I don't believe that line of thought, I believe
rather the top dogs are siphoning the money off the best they can into their
own coiffeurs and will continue to do so as long as the public and our representatives
leave it to the same criminals and "leaders" that got us into this mess to
get us out. Why does anyone believe that the same people doing more of the
same that got us into this highly levered and bankrupt state will now magically
get us out? Treasury Secretary Timmy Geithner had such a worthless response
on his big day to explain his plan to our politicians that even the politicians
responded with. "So basically, you have no plan." It is certainly time
for increased scrutiny of these incompetents (or criminals) and everyone that
reads this should do their part to make sure that happens.
"All tyranny needs to gain a foothold is for people of good conscience
to remain silent." ~ Thomas Jefferson
Write your representative here https://writerep.house.gov/writerep/welcome.shtml.
President Obama may have good intentions but when you look at his team with
many of the same characters from the Bush and Clinton years, all you should
expect is more of the same because the Rubin's and the Geithner's are just
the guys that turned up the greed meter accelerating our economy toward bankruptcy.
Wouldn't it be wiser to give power to some of the individuals that were screaming
from the rooftops that our borrow and spend fake economy was headed toward
this path long ago? Who are these people? Here is a list for starters: Peter
Schiff, Jim Willie, Bob Chapman, Rob Kirby, Bill Fleckenstein, Doug Noland,
Jim Puplava, Jason Hommel, and Puru Saxena.
Former Fed Chairman Paul Volcker who is credited with bringing inflation to
its knees in the early 1980's still claims his biggest error was not capping
the gold price. So here again is more of the same; instead of letting gold,
one of the natural alarms of inflation or an unsound financial system, do its
job; the plan should have been to send false signals to the marketplace that
everything was okay. This is what the Government is doing today except on an
even grander scale. They lie to their citizens and misrepresent facts to achieve
their own end purposes. Nowhere is this more clear than regarding the current
state of Government economic statistics. It is absolutely imperative that Americans
educate themselves on what has caused our current economic problems. There
are many, many writers such as the ones above that have predicted in detail
the current dislocations in our economy. Our third United States President
Thomas Jefferson had many famous quotes that should be considered because time
is short and the damage being inflicted to our economy is accelerating NOT
being reversed. Jefferson said.
"If a nation expects to be ignorant and free, in a state of civilization,
it expects what never was and what never will be.
Hank Paulson and Ben Bernanke went around the country last July to talk to
big institutional investors and asked them to sell their commodity related
investments to create the illusion that inflation would no longer be a problem.
This action severely damaged the ability of an industry to produce what is
badly needed and wanted worldwide, gold and silver. Everything our Government
does is about creating an illusion rather than dealing with reality. These
are real problems and real debts; this isn't a matter of restoring confidence
through lies. Our major problems are we have too much debt, not enough savings,
and we perpetually consume more than we produce which is why we are at the
mercy of foreigners to borrow over $2 billion a day that they are no longer
willing to lend us. Now that foreign lenders are no longer willing to play
this game, the response is to simply print the money which will just put us
in a deeper hole. The time to end this madness has come and it is time to bring
our house in order and stop making things even worse. Our debts are unpayable
and will not benefit from any further stimulating. It will be painful for sure,
but not more painful, because the sooner we put ourselves on the track to recovery
the less overall damage will occur. Our Government statistics have been so
doctored they are virtually meaningless to the point that our unemployment
rate today is less than half of what the same actual unemployment would have
read 30 years ago. Does that make it less bad because we simply don't count
the same actual unemployed to make the reading better? Of course not! A better
question is why they have to change such statistics unless they are simply
trying to lie to the public at large. Since that is clearly what is going on
here, what is it going to take to bring these issues up and throw out these
criminals that are wrecking our nation?
Section 19 of the Coinage Act of 1792 specifically states that any officer
debasing the money shall suffer death. Alan Greenspan wrote the following back
in 1967,
"In the absence of the gold standard, there is no way to protect savings
from confiscation through inflation. There is no safe store of value. If
there were, the government would have to make its holding illegal, as was
done in the case of gold......The financial policy of the welfare state requires
that there be no way for the owners of wealth to protect themselves. This
is the shabby secret of the welfare statists' tirade against gold. Deficit
spending is simply a scheme for the confiscation of wealth. Gold stands in
the way of this insidious process. It stands as the protector of property
rights. If one grasps this, one has no difficulty in understanding the statists'
antagonism toward the gold standard."
Obviously, with this eloquent explanation on how gold protects the property
of the common man it is certain that Greenspan clearly understood BEFORE he
took his job at the Fed that there was no longer anything that kept the privately
owned Fed from confiscating the wealth of the American people. So he knowingly
took a job that he understood beforehand was confiscating the wealth of the
American people and for 20 years this man moved rates for the privately owned
Fed to the advantage of the many banks worldwide that own a stake in the Fed
that subcontracts monetary policy for our country. It would not be hard to
convict this man as he has provided his own evidence. The only thing lacking
is enough intelligent individuals to cause a big enough ruckus to bring this
man to justice, and of course, the bigger task of overcoming his grateful friends
in high places. It is imperative if you are against many of the things this
article mentions to let your representatives know. There is a constant shift
of attitude more and more toward the Government feeling that it is in charge
of us rather than them serving us. Most people either don't know or don't care
so if you see what has been going on speak up loud and clear. As Thomas Jefferson
said,
"I believe that banking institutions are more dangerous to our liberties
than standing armies. If the American people ever allow private banks to
control the issue of their currency, first by inflation, then by deflation,
the banks and corporations that will grow up around will deprive the people
of all property until their children wake up homeless on the continent their
fathers conquered. The issuing power should be taken from the banks and restored
to the people, to whom it properly belongs."
Boy did he call that one! Here is another which is most appropriate to consider
in view of our "bailout plans."
"I predict future happiness for Americans if they can prevent the government
from wasting the labors of the people under the pretense of taking care of
them."
It is truly amazing how readily the American people are willing to embrace
the socialist solutions being offered about. Apparently no one believes in
the free market allocating scarce capital any more despite the total failures
that are due to moving away from capitalism and free markets. Those that thought
Government through the likes of inept economists such as Alan Greenspan and
Ben Bernanke could determine precisely what the best interest rate and debt
expansion should be can now see that the entire exercise was a complete failure
and fraud. If not for $60 trillion in interest rate swaps on the books of JP
Morgan, interest rates would have soared long ago imploding the system. JP
Morgan also has $100 billion in gold derivatives it has used to keep gold under
wraps from alerting the masses of the wrecked financial system. Massive shorting
in the Comex gold futures over the past few weeks even while the gold price
breaks out to new highs is one of the operations of the money powers. They
attack the gold futures in conjunction with the gold stocks but lose much of
the effect due to the strong results that the companies deliver. During the
latest raid two stocks, in particular, Northgate (NXG) and Golden Star (GSS)
were driven down 17% on Tuesday alone while they recently delivered impressive
results far exceeding expectations.
The quickest way to get back on a recovery path is to end sending billions,
and eventually trillions if this is not stopped, to failed organizations. Guess
what, the world will not come to an end if Citigroup, Bank of America, and
JP Morgan are allowed to fail. It will only end the gravy train for the top
officers that feel they are in a privileged class. Hank Paulson diverted billions
to his Goldman cronies before he stepped down and John Thain made sure $4 billion!
in bonuses were paid early to Merrill henchman in a year when they not only
blew themselves up but brought down the entire US economy in the process. Great
job guys, what would we have done without you? There is nothing but endless
talk in the media over fear of our financial system coming down. The people
should embrace it coming down, the sooner the better, and get rid of these
huge banks that are rotten to the core especially at the top. Bailout money
should go to making sure depositors get all their savings back and the highly
leveraged speculating banks should eat their own losses and disappear. The
people should educate themselves, demand investigations and throw all of these
people in jail that abused the confidence we put in them and impoverished our
entire country. There are plenty of good banks to pick up the slack once these
failures are swept aside. Why not fund banks that were diligent and allow them
to pick up the slack rather than reward those that brought down the financial
system? There is nothing smart about any of these bailout plans and if this
continues it will drag out this hangover for decades rather than years. What
happened to the cleansing process of Capitalism? The current bailout plans
are attempting to fund activities and companies that the private sector has
already refused to extend capital to. Are we going to allow the heavy hands
of Government to move America toward the Communism that brought down Russia?
Don't be surprised if the same banks are left in charge when you wake up one
morning and find out they are trying to stuff a new fiat currency down your
throat and try to give you one of the new ones for three of your old ones that
you have on deposit. The rest of the world already will not stand for this.
Let's just hope Americans won't either.
I will leave you with some more quotes from Jefferson that should not be ignored.
Ignoring them removes any chance that the United States will remain a civilized
place to live.
"It is incumbent on every generation to pay its own debts as it goes. A
principle which if acted on would save one-half the wars of the world."
Another that the US Government should learn quickly:
"Never spend your money before you have earned it."
And:
"To compel a man to furnish funds for the propagation of ideas he disbelieves
and abhors is sinful and tyrannical."
Also:
"The strongest reason for the people to retain the right to keep and bear
arms is, as a last resort, to protect themselves against tyranny in government."
And:
"The tree of liberty must be refreshed from time to time with the blood
of patriots and tyrants."
Perhaps if someone close to President Obama can get him to look at the virtue
in some of these quotes he will model his behavior after Thomas Jefferson rather
than Franklin Roosevelt. After all it was Roosevelt that sped us in the direction
of the welfare state. After he stole from us our most important tool; honest
money, he handed us over to the bankers that have stolen from us and left our
nation in a bankrupt shambles. Better yet someone please put this in the hands
of Rick Santelli. At least he was able to get his message across to President
Obama. Send this article to as many people you care about as you can, you may
well save them a big portion of the money they have in these corrupt banks.
Let's just hope that President Obama can educate himself and not sell us down
the same road. In the end it is the people that must demand it, for if President
Obama were to attempt such a massive feat on his own he would end up like John
F. Kennedy.
