Busted: Bankers and The Global Economy

August 7, 2010

Dollar Deflation & the Grave Economy

Dark economic clouds are gathering over the United States as a second stage of national distraction arrives. Now that the BP disaster is over with, a new topic of angst is needed. Right on cue, the Federal Reserve and Ben Bernanke are considering the economic pains of their patient while looking after their own corporate bottom line and the continued enrichment of international bankers.

Bernanke warned in a speech eight years ago that “sustained deflation can be highly destructive to a modern economy” by leading  to a slow death from a rising real burden of debt. “Sufficient injections of money will ultimately always reverse a deflation,” claimed Bernanke.

New banking assessment by big commercial banking interests (Barclays, RBS, et al.) outside the U.S. show that the dollar is in a corner. Wedged tighter in that corner is the United States, which is now wholly dependent on the banking debt that continues to strip the nation. Uncle Ben and his international banking buddies are facing deflationary pressures as economic pressures fueled by rampant unemployment. Their perfect answer will be to start up the printing presses and to flood the international market with still more dollars, which I must admit will only fuel the fire of deflation.

One answer is to create another crisis with competing currencies. The Euro is a perfect candidate for more distraction, while international bankers continue to drain European and Asians nations of their wealth wherever possible. The Wall Street expansion into Europe and Asia has created still more opportunities to distract from dollar reality. Believe it or not, there are still more precious resources to drain. Multinational corporations are now in the cross hairs.

President Obama doesn’t really enter the equation. Perhaps he will once again arise to take “full responsibility” as he did in the BP debacle. No matter. The Washington lawmakers that create brilliant policy don’t matter, except to approve the imaginary creation of still more greenbacks, ringing their hands in political pretense as they hold out their hands for kickbacks and such. All of these cronies are mere cosmetic agents as international bankers continue the next phase of their rape and pillage policy. Bernanke is preparing to start with massive quantitative easing.

The warfare manual for international bankers says to print more dollars. They haven’t hit their 5 trillion dollar target yet. That is their goal. To completely denude the resources and capital of nations so that they can create their own nation that officially rules over all nations. They have the nations and banking community. They now seek the sustenance of the corporate oligarchy. Wall Street is simply a vehicle to bring this about. They seek ultimate power while pretending to be obsequious and eager to please. The idea is to bring the current system to its knees. Even though we have been conned by phoney money, they hold almost all of the real resources of value. We think the debt is real and have traded all manner of resources and labor for it.

Meanwhile, economic contraction is in the wings for the United States. The leading indicator per the Economic Cycle Research Institute is falling faster than since World War II. CPB Netherlands shows real issues with world trade. There is plenty more behind the scenes that shows a truly grave problem for thinking inside the box. Prepare for the unthinkable.

November 23, 2009

New World Authority: The Fed’s Automatic Bailout Bill

Congress intends to grant the Federal Reserve even more powers to control the economy of the United States with HR 3996. This gives the Fed complete power on top of  dollar creation worldwide, excess credit, and low interests rates to cause financial bubbles and control corporate financial power. This power allows for full-scale abuse and manipulation of the system while profiting from transactions and time spent a/k/a administrative expenses. This gives authority of global banking system to run the economy of the United States at their own comfort. The bill secures automatic bailouts for the banks and powerful corporations through the power of the Federal Reserve, which is part of a global consortium of bankers (what I call the International Society of Central Bankers).

“Upon the written approval of the Board of Governors of the Federal Reserve System… and the Board of Directors of the Corporation … and with the written consent of the Secretary of the Treasury, the Corporation may extend credit to or guarantee obligations of solvent insured depository institutions or other solvent companies that are predominantly engaged in activities that are financial in nature, if necessary to prevent financial instability during times of severe economic distress. There shall be available to the Corporation to carry out this section amounts in the Treasury not otherwise appropriated, including for the payment of reasonable administrative expenses.” (pages 43-44/253)

HR 3996 gives power to the Federal Reserve to force companies to obey financial orders from the Federal Reserve, making them an authority of power in their own right. (The nation has already been moving in this direction.) The Fed has the power to take over companies that Fed deems a threat to their own “safety and soundness” or to the “financial stability of the United States.”

Section 1105 gives the Federal Reserve the power to force financial holding companies into bankruptcy: “an involuntary case may be commenced by the Board of Governors of the Federal Reserve System against an identified financial holding company.” (page 38/253)

Section 1701 gives the Federal Reserve the power “in unusual and exigent circumstances” to authorize immediate bailouts and assistance to any “individual, partnership, or corporation.” (page 253/253) Section 1701 enables the Federal Reserve the authority to bypass Congress when the next fiscal crisis occurs.

You can now see the danger that the Federal Reserve and global bankers pose to the national security and the solvency of all Americans if HR 3996 passes.

July 19, 2009

Economic Depression: American Resentment Flickers Against Corporate Wealth

money green with envyThe recession and the rising gulf between the haves and have nots; investment bankers versus newly impoverished and unemployed Americans is changing viewpoints. At one time, any company reporting record profits was certain to earn applause for this was seen as the American way. Americans were firmly invested in what they believed was the trickle-down theory of economics. The scam that investment bankers have pulled on the world with their highly staked leveraging games has changed much of this sentiment. Now that institutions that formerly made up the investment banking capital of the world are recovering with the intent of paying back taxpayer-backed Federal Reserve bailout money, Americans are leering at the possibilities that nothing has been learned from the crisis of financial literacy that prevails itself upon the world.

Writer David Segal has introduced the idea that class resentment is to blame as investment bankers continue to rake in the speculation-based financial dough based on the same numbers games that brought the nation to the edge of financial oblivion. The reality runs much deeper. In the eyes of Americans, the reality isn’t about making money, but how money is earned. Americans feel that they are being scammed because the nation operates by multiple sets of rules depending on how much money and influence you can peddle. Even members of Congress like Charles Schumer have demonstrated that they believe Americans are simply brutes to be used by the system to bolster corporate along with government wealth and influence.

Now that the likes JP Morgan Chase and Goldman Sachs are reporting fantastic encouraging numbers after having enjoyed bailout at the expense of Americans and the system at large, Americans see that the victory is very hollow. Recent financial victories in American are without benefit to anyone that doesn’t directly play the insider financial games on Wall Street. Multinational corporations continue to rule the roost behind the scenes, taking more out of America than they put in. Profit without personal responsibility is king. Most of America continues to be in great pain and America already knows that recent financial victory on Wall Street is a result of the same deluded thinking and policy that still threatens to destroy the financial system. It is not a system based on honesty and real numbers, but simply a gambling game of manipulation and opportunity.

The fact is that the Federal Government likes the control and authority that it wields in the banking community as a result of the bailout. The same can be said for the money that government has invested in the corporate structure. Uncle Sam holds the cards as the government maintains a front row seat at AIG. This is the only means that government now has to rein in the continued greed and avarice of Wall Street and corporate investors. The system hasn’t been reinvented as promised nor have sufficient reforms taken place to insure the safety of financial system on any level. We are still living in the last century. Nothing has changed. That is why government is so quiet about what is a hollow victory on Wall Street. ~ E. Manning

June 17, 2009

Federal Reserve Discovers Deviancy

affordable bankingAbout 16 years ago, Senator Daniel Patrick Moynihan offered a striking view of the degradation of standards in society. He observed that deviancy was measured as increases in crime, broken homes, and mental illness. These reached levels never seen by earlier generations in the U.S. As a means of coping with the onslaught, society often sought to define the problem away. The definition of customary behavior was expanded. Actions once considered deviant from acceptable standards became, almost immaculately, within bounds. In the case of the authority by the Federal Reserve, deviancy has been all but ignored.

After opening up with a classic comparison of standards in society, Kevin Warsh has other observations about the Federal Reserve that would lead one to wonder if central bankers are really lost, but couching this misdirection as a new philosophy of public exploration of purpose and policy. No such luck fellow Americans and globalists.

fed_warsh_kevinWarsh asks: “Will deviancy be defined down with the understanding that a rare crisis is the price for dynamic, robust economic growth?” The Federal Reserve is exploring new philosophy of social and monetary control, but is still thinking within the same old box of capitalism and economic growth via Wall Street and bankers instead of the real economy where the mainstream actually live and grow their lives.

Even Warsh recognizes that over the last few decades that America has not lived in a golden age. He says that periodic, cyclical weakness occur. There were lessons to be learned. Did we learn lessons at any point along the way? Now Kevin Warsh is asking bankers and economic pundits what they want in a new ‘touchy-feely’ approach of philosophy to the recent banking crisis. That’s right…this was a banking crisis, not just another recession. If bankers had not become economic and social deviants, the U.S. and the world would not be in this recession.

Still, Warsh is asking his friends and banking associates whether they choose stability or performance. What do you think bankers will say? The Fed is not really talking change, just more of the same boilerplate economic policies, unchanged for decades and augmented with more control measures and power for central bankers. The Fed doesn’t seek to reform anything, but has plenty to say that supports the status quo. The U.S. and the Fed, through the brotherhood of central bankers, has misused a position of trust. Now the Fed is printing vast sums of money (credit) that will ultimately tumble the dollar and create a larger crisis. ~ E. Manning

June 14, 2009

Recovery: New Technology and Financial Literacy With a Glimmer of Hope

There are signs that the rapid decline in economic activity of the past few quarters is slowing. Per the observation by the Federal Reserve, stabilization or improvement will begin from very low levels compared with those the levels of previous recoveries. This recovery is likely to be painfully slow and “the economy unusually vulnerable to new shocks. The news remains bad in two areas of direct importance to American families: Unemployment continues to rise and housing prices continue to decline.”

“Government-provided liquidity and guarantees remain as necessary supports in many areas. Because the collapse of these same markets set off the present crisis and the serious recession that has followed, the case for far-reaching reform appears a strong one.”

The Federal Reserve admits the fact that banks are highly leveraged, presumably due to the fractional reserve backlash in this crisis and compounded by creative banking instruments that have brought the system to its’ knees. Many bankers have been highly creative in protecting themselves from public or government scrutiny on an ongoing basis.

The Fed readily admits:

“that a malfunction in the financial industry can immediately and profoundly harm the entire economy…As we have seen to our dismay in the last year, even where such support is forthcoming, the resulting damage inflicted on the real economy by the financial sector can still be extensive, and the potential costs to taxpayers can still be high.”

financial literacyFor some time, the Federal Reserve has heralded the idea of financial literacy as if it were some ‘new technology’. Now the Fed has realized its’ own training regarding the need for a new financial literacy. The Fed now admits “that systemic risk was very much built into our financial system,” spotlighting the too-big-to-fail phenomenon as one of the most problematic systemic risks in the financial system.

Many members of the Fed now admit that we much apply ‘new technology’ to financial literacy and systemic risk in an effort to overcome the greed syndrome that has wracked U.S. and global banking for the last several decades. The problem remains that central bankers, like the Federal Reserve, are now in charge of implementing policy that can pad and perpetuate their own bottom line and purpose for existence since all central bankers are, in reality, a closed brotherhood or society devoted to their own corporate and global power in the financial system as they tap profits from their own system to benefit the global system and the shareholders of the global corporate central banking system. ~ E. Manning

May 28, 2009

Investors Afraid of Bailout Involvement

Filed under: banking, economy, government, money — Tags: , , , , , , , , , , , , , — digitaleconomy @ 10:41 am

toxic debtTo cleanse bank balance sheets of distressed loans, other unwanted assets and “reduce the associated market overhang”, the FDIC and Treasury launched the Legacy Loans Program. Now the plan has stalled and is likely to put be on hold, terminated or modified again as stifled feds puzzle over their dilemma.

The Legacy Loans Program as crafted by the Federal Deposit Insurance Corp is part of a $1 trillion Public Private Investment Program announced back in March. This program was theoretically designed to encourage banks to sell securities and loans weighing down balance sheets to willing investors. Many banks, flush with bailout cash, have gained a feeling of stability with previous government bailout and have become less eager to be involved in the Legacy program.

Prospective buyers and sellers are reluctant to be involved in such an endeavor and have voiced their concerns to the FDIC about participating. The majority are fearful that the federal government will change program rules in the ‘middle of the game’. Investors are also fearful of financial backlash from an overall hostile attitude against Wall Street.

Bailout ideas simply don’t seem to be working in the realm of public opinion and scrutiny. Even investors don’t want to be attached to the crooked banking mess that the bankers have created. ~ E. Manning

legacy-loans

May 12, 2009

Wall Street Giddy with High Times to Come

economic crisisWe live in exciting times. The stock market is up 100 points… or who knows what goodness corporate investors are blessed with today. Wall Street mavens and financial wizards are feeling giddy with delight. They want good times so badly that they are already deluding themselves that the recession is over and that runaway prosperity is in the wings. It’s time to start making money all over again the way “we” used to. After all, nothing has changed beyond massive cast infusions to hold up the system. Multitudes of banks, corporate mongers, financial wizards and wishful investors are convinced that we are about to relive heady good times without an ounce of reform or correction in the system that jack built. They may be right.

bear stearns collapseThe longer reform takes, the less likely reform is to happen, at least if financial and corporate simple simons have their way. It’s time to stop pretending that the Wall Street economy is the same as the real economy that everyone lives in. Wall Street hasn’t met with total and final meltdown because the Wall Street economy has been rescued. They have lived to see another day because of government bailout, presumably at taxpayer expense. Yep, Wall Street seems to be showing signs of life along with the giddiness that goes along with having a future without any reform or consequences. A real party is set to ensue at the expense of all. The real economy that the rest of America lives is another matter altogether.

What is truly important where the economy is concerned is whether real Americans can find work. If Americans can’t find work or create work that they use to survive, the country is in trouble, pure and simple. 539,000 Americans lost their jobs last month after many months of ongoing successive unemployment disaster. Since the recession officially began in December 2007, 5.7 million jobs have been given the write off by government employment statistics. The reality is actually even worse.

Still, there has been plenty of impressive talk about the new world of reform that America will enjoy, but little has been done beyond the talk. Regulatory reform is dying on the government vine of important projects.

Geithner has quipped, “We are being dramatically more aggressive than I believe any serious government has ever been, certainly in generations, in responding to financial crises. So if you look at the scale of action, look at the quality of initiative we’ve taken, I think it dramatically exceeds even the best-managed crises we’ve seen before.” Ple-e-ze. The system continues just as before, but without any reform or any real ideas for reform that hold any substance. The Masters of the Economy can’t seem to wrap their minds around the banking deluge that has brought us to our knees, much less figure out a way to reform it. They just don’t want to rock the boat of monetary largess. Geithner told Congress that fixing the system would be accomplished not by “modest repairs”, but by “new rules of the game.” I agree that what is playing out between government, corporate bankers and central bankers is a game. That much is obvious.

People are watching. Are you? ~ E. Manning

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