Busted: Bankers and The Global Economy

November 11, 2008

Britain: New Global Order and Finance

the only thing to fear is fear itself

the only thing to fear is fear itself

History seems to be in the making. The British Prime Minister is on the forefront of digital and economic globalization that sees the current turmoil in the world economy offers a chance to build a “new global order” based on cooperation and opportunity.

Mr. Brown summarized his approach as internationalist, interventionist and progressive, an approach he believes should make the world confident for the future, making 2008 a year to be remembered not for the financial crash, but for the way in which the world “endured it and prevailed”.

pm-and-lord-mayor-banquetOnce again, the British are on the forefront of promoting a new empire of global unity as an enduring power of ideals that promotes a global society that rises to meet challenges as they arise. The Prime Minister sees financial stability as an international duty of peace and unity. He wants to use U.N. peacekeepers to enforce the peace through the reduction of weapons, both nuclear and otherwise.

He speaks of getting behind the United States to bring about a new change of global mission even though at this time, neither George Bush or Barack Obama are now speaking about this mission. Barack Obama has dropped hints. Could something be going on behind the scenes that isn’t public knowledge? This prospect seems likely.

Prime Minister Brown gives high meaning to what he sees as the new Bretton Woods accord, involving the creation of a new monetary age and a new age of international cooperation. He is promoting getting rid of old orthodoxies in exchange for building on a new global solution of prosperity through the World Bank and new measures to sustain growth. This effort seems to built around the charismatic conviction of Gordon Brown and Barack Obama. You should be paying attention. For those that are concerned with Biblical prophecy, this is a very interesting item to take note of. ~ E. Manning

November 7, 2008

Obama Promises Change: Fed Wants Control

conflict-of-power Obama FedWith the election of the new 44th U.S. President of the United States, the mandate of U.S. politics has been clarified. The hope of much of the American populace has been ignited. The Federal Reserve and the global consortium of central bankers aren’t nearly so excited, showing a typical understated and conservative resistance to change that doesn’t put them in the driver’s seat.

Apparently Kevin Warsh, Governor of the Federal Reserve believes that the world should look upon the financial hell of the last year with a hint of reminisce. “This challenge of creating a new financial architecture is hardly unique to the United States. The difficult choices made by policymakers and market participants around the globe will have real implications for future growth prospects.” That is in fact what many world leaders are intently interested in at the projected global financial summit that is planned at U.N. headquarters in New York City. The wild promotion of the financial summit is driven by the desire to change the current financial architecture.

Warsh spews plenty of bankerspeak which essentially boils down to this summary: the new financial architecture must be properly understood, in full recognition of current business relationships and restrained accordingly. Not so coincidentally, this recommendation would keep the control firmly among the International Society of Bankers, the loosely amalgamated brotherhood of central bankers headquartered in Switzerland and Rome.

Warsh correctly blames the current financial crisis on inadequate market discipline, excessive reliance on credit ratings coupled with poor credit and liquidity risk-management practices by many financial firms. However, until recently, the Federal Reserve has been unwilling to promote any changes, instead promoting the vaguely governmental mantra of financial literacy.

Warsh recognizes the global economic challenge, but does not admire the “implementation of well-intended housing policies.” Instead, the central banking consortium clearly sees the new financial architecture solely in business terms that will fuel economic growth, a clear promotion of continued Republican financial policy that has been gradually adopted over the last several decades. In essense, the advance of Republican power, policies and laissez-faire trickle-down economics has bolstered the role of not only the Federal Reserve, but the global power of central bankers through the power and prestige of the dollar, now firmly under their control.

The new Obama administration has more to fight than mere Republican policies. They must come squarely to terms with global bankers that currently hold the keys to their financial success. With the current fiscal situation of this nation regarding the fiat money of the dollar, the bankers have politicians largely where they want them. Arguably, John F. Kennedy lost his life as a result of opposing the global central banking community. They still hold the same power of life and death in the world today, only more so. ~ E. Manning

October 15, 2008

Bernanke Pessimistic About U.S. Political Plans

Ben Bernanke is no longer being vague about his opinions. Bernanke indicated that the U.S. economy is certain to worsen. He suggested the possibility of further interest-rate cuts to lower rates while criticizing economic-rescue plans of both major presidential candidates.

At a question and answer session after his speech, Bernanke reflected on the handling of the Great Depression, saying that Franklin Roosevelt’s fiscal stimulus failed to end the economic troubles after Roosevelt took office. Stimulus spending suggested by Democratic presidential nominee Barack Obama and tax cuts proposed by Republican candidate John McCain are unlikely to end the crisis. Bernanke noted that World War II began to pull the nation from depression because it mobilized the nation.

Monetary policy including capitalizing banks has limits in his eyes. Bernanke is now promoting new regulations to avoid a repeat of problems that the nation is currently enduring. That undoubtedly means new powers for the Fed. ~ E. Manning

September 7, 2008

Freddie & Fannie: The American Dream

For years, Freddie Mac and Fannie Mae have bragged that they are in the “American Dream Business.” If that is the case, the American Dream has just gone bust. In many respects, it is the beginning of the end although the U.S. Treasury wants to paint the idea of a new beginning.

The process ends a 70-year experiment that began as an attempt to get a struggling nation back on its feet after World War II, ending in arguably the largest nationalization in global history. Fannie Mae and Freddie Mac have been forever tainted by the mortgage meltdown and securitized loans.

Essentially, the mortgage twins are a colossal fraud full of failed policy decisions and misplaced trust. Banks loan the “creditworthy” money for mortgages. Fannie and Fannie bought the loans as-is and packaged them into bundles to create bonds that external investors could purchase. All the while, the government and taxpayers are on the hook for the entire spectacle as the entire scheme for profits unraveled with the introduction of the mortgage meltdown.

For decades, the perception of these bonds has been the same as the safety of the U.S. government bonds. The mortgage twins were established with the complete backing of the federal government. What could be safer? Whether such a guarantee ever actually existed is the subject of much financial debate now. The “government-sponsored enterprises”, now failed is the result of twelve months of slow painful devaluation in the mortgage market combined with the idea of government guarantees that couldn’t solve the problem of worthless securitized bonds and suffering confidence.

mad lady liberty

mad lady liberty

The disingeniunity of the government and the mortgage twins was so large and the undercapitalization so pronounced, that investors bailed out in large quantities. That reality is also a reflection of the deceptive state of mind of the U.S. federal government. The federal government is no longer based in any kind of true reality where policy or money is concerned. They have lost their way and their collective minds, hopelessly addicted to wishful thinking and the addiction to monetary power without the ability to back it.

The Feds were limited as to how much they could borrow to cover the mortgage twins. Now that Fannie and Freddie are nationalized, the federal government vainly hopes that full confidence will be restored so that investors can be coaxed back into the fold of business. The burden on the U.S. taxpayer is huge and the moral hazard brought about by carelessness is no smaller.

How can anyone trust an agency or body of people so corrupt or hopelessly addicted to wishful thinking. Politicians and bureaucrats are addicted to notions that have permanently altered and depressed the perception of the American Dream of owning a home.

will lawmakers wake up?

will lawmakers wake up?

Barack Obama mentioned that the bailout must somehow protect taxpayers. Republicans have made no such statement to date. Still, the truth is that taxpayer protection as a result of government oversight and abuse of regulation shows the moral and financial bankruptcy of the federal government is the worst way. They are incapable of any measure of trust or faith.

To make matter worse for Republicans, they have touted smaller government and lower taxes while promoting and acting out the opposite. The takeover of the mortgage twins implies that anything the current government order says is implicitely flawed, a mere placation of the public. John McCain and Sarah Palin are tied into that reality directly by the Bush Administration and Republican policy.

The Congress is not free from blame either and Democrats are guilty by implication as well. The struggle for power and the adoption of ideas that clearly don’t work are rarely corrected. Instead, the steamroller of Congressional law makes constant adjustments in failed policies that will somehow become miraculously repaired if lawmakers just care enough and spend more money that the nation doesn’t have from international bankers and foreign sovereign nations.

The bottom line is that American taxpayers have been greatly wounded and no placation offered by the current administration or long-term politicians have the respect of true patriots. We see the lies, the seduction and the abandonment. Government and lady liberty has become hopelessly addicted to vain thinking where money and endless promises are concerned. The nation is a laughingstock of pathetic liars, made worse by bumbling incompetence and mismanagement. The American people are muddied by corruption and slavery through ineffective and misguided leadership. ~ E. Manning

June 17, 2008

Boosting the Economy Best for the Dollar

Some folks get it and others don’t. We might have a keeper in Barack Obama. The Democratic presidential candidate said today that the best way to lift the sagging dollar is to improve economic fundamentals, rather than manipulating the currency.

He acknowledged that the devalued dollar is a symptom of underlying problems rather than a cause by itself. “I’m not somebody who thinks that we should spend a lot of time manipulating our monetary or fiscal policy simply to strengthen the dollar. What I want to do, though, is strengthen the economic fundamentals in such a way that the dollar, of its own accord, ends up being strong.”

That is the kind of “nuts and bolts” thinking needed. You have to look after yourself. The country could use more of that instead of focusing on the entire globe.

John McCain is proposing strengthening the dollar by reining in government spending and pushing free trade agreements to bolster investor confidence. This sounds like the same road that the United States is on now: a road to oblivion. Life is more than the idea of investor confidence without real economic promotion or change.

The economy is about the whole country, not a few investors.

June 10, 2008

What are the Feds Doing with Stimulus Money?

President Bush signed the Economic Stimulus Act of 2008 back on February 13, calling his stimulus idea a “booster shot” for the American economy. At the signing ceremony, Bush stated, “The bill I’m signing today is large enough to have an impact, amounting to more than $152 billion this year, or about 1 percent of the GDP (gross domestic product).”

At that time, the government mandated that checks be issued to qualified citizens through May. The process has dragged on through June. Some Americans have not received their promised stimulus payments through the Internal Revenue Service.

Barack Obama is circling the country in a two-week campaign. He is proposing that lawmakers should inject another $50 billion immediately into the sluggish U.S. economy. Mr. Obama noted the largest monthly increase in the unemployment rate in over 20 years. He intends to use his position in the Senate to generate a movement for “another round of fiscal stimulus, an immediate $50 billion to help those who’ve been hit hardest by this economic downturn.”

Mr. Obama supports the expansion and extension of unemployment benefits, as well as a second round of tax rebate checks. “Relief can’t wait until the next president takes office.”

Federal unemployment benefits for people out of work are usually limited to 26 weeks. A movement of Democrats wants to add another 13 weeks plus an additional 13 weeks in states with unemployment of 6% or more. President Bush has previously been against extending unemployment benefits, preferring to bail out imprudent banks and mortgagers.

On June 6, the Treasury Department reported that it has sent out nearly 67 million in stimulus payments worth approximately $57 billion. Now the important question comes to mind. The stimulus package was advertised as a $152 billion stimulus. Where is the remaining $95 billion stipulated by the first stimulus plan?

Now, we are talking about a new stimulus plan as if the first stimulus plan is complete. Where did the money go? What is Washington up to? Is the stimulus a straw dog of sorts? Has economic stimulus become mere hype?

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