Busted: Bankers and The Global Economy

March 9, 2009

Big Brother Movement Gains Ground

corporate-layoffs-3

Government and Corporate Interests Continue to Erode Citizen Independence

For decades the United States government through Big Business has been involved in monitoring and controlling monetary and labor resources to the detriment of the average citizen and the entrepreneur.

Article on Associated Content by E. Manning

November 9, 2008

American Job Crisis Solution

cash needed, not corporate bailoutsEver since job losses followed by consumer consumption hit the red zone 10 months ago, the American job crisis has worsened. What gets the most attention is still retail sales, the prospect of Big Business and consumer consumption. Every measure of economic growth is measured on that consumption. In that light, there is little hope for quick results beyond drawing unemployment unless you are willing to look for small business opportunities.

Big Business is awash in crisis amid sagging numbers. Instead of focusing on lazy investors with big pocketbooks looking for investments, consider the small businessman rising to the challenge to spark innovation and a stronger economy. Investors should look at investing in themselves for their growth.

Look to spend what hard-earned dollars you have with small business, even on the internet to support the small business that builds your economy and families like yours. Vote your confidence with your wallet. Big Business is or will be sucking down huge volumes dollars in the hopes of bailing out millions of jobs in the next few months, mostly in the auto industry for cars that nobody wants. What will done with all those cars? Hopefully, they will either sell them at fire sale prices for impoverished Americans that need them, but can’t afford them or they will resell them as next year’s model. American automakers can’t afford to be choosy with taxpayer dollars. Big business needs to be giving back in spades for taxpayer bailout money received. Forget the meager interest payments Americans will never see. The American citizens need a real boost, especially among the harder hit elderly and lower to middle income. Americans need solutions, not corporate bailouts for stupid decision-making. ~ E. Manning

September 23, 2008

Global Liquidity Crisis: On the Brink

crisis solution

crisis solution

Turn on the TV, read the paper or peruse the latest internet news. You’ll be told that we’re on the brink of imminent crisis, a lock down of liquidity that must be remedied immediately. The Fifth Avenue Rush is on. The only solution is bipartisan unity in Congress to turn over vast power to the Bush administration and the U.S. Treasury without accountability. The Republican feel-good legislation is in place to save the home of the brave. We can do it if we can do it together. We will save the world for democracy.

The American taxpayer must trust that Henry Paulsen will use $700 billion wisely to snatch up worthless securitized bonds. Sound familiar? In the same way that the Federal Reserve Bank is totally unaccountable and is never subject to audit, the current proposal contains this proviso:

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

Henry Paulson, because of the massive liquidity freeze, is about to receive kingly authority to solve the current liquidity crisis. Even after the nation spends an initial sum of $700 billion, there is no guarantee of success beyond maintaining the current business, investor climate and monetary markets, shaky though they may be. The entire proposal is designed to bailout the collapsing U.S. financial system and save the world so that the current power structure can continue unchanged, further supporting control over the failing system. In the words of the administration, the fate of every American’s retirement and savings hangs in the balance. That makes many Americans nervous, at least for those that have managed to prosper, save and invest.

bailout money grab

bailout money grab

In one more segment of authority, the executive branch of the Bush administration wants to perform another magnanimous service while exempting itself from any chance of responsibility or review for the pending results.

While the media and Congress are fussing about the lack of oversight on the project or who Henry Paulson uses to assist him in the huge money grab, the Federal Reserve Bank and the International Society of Bankers sit quietly by watching the drama like ripe fruit ready for picking. A few have pointed out that the lack of oversight is a grand opportunity for abuse or profitaking.

This current idea proposed is bold and transparent in simplicity. Have the Federal Reserve wave its monetary wand, giving buddies in the former investment banking industry piles of cash for rooting out the bad bonds and making a huge chunk of debt go away as the Federal Reserve apportions more American gold to send quietly to Swiss vaults while clueless Americans aren’t watching. No rush about the physical location of gold. International Bankers will count it anyway as their personal profit and add it to the national debt. Never mind that the Fed is already holding all the nation’s gold. Fort Knox is an illusion.

fort knox gold

fort knox gold

The funding credits will never actually need to leave the Fed. The entire process can be done electronically without a trace. The craft is in the paperwork that the U.S. Treasury will alter, permanently erasing a mountain of fraudulent debt that only the banking community and authorities can see. The scheme is perfect because the scheme is all about semantics anyway.

Never has such a bailout been proposed with such secrecy. Even the federal bailouts during the Great Depression and during the Savings and Loan collapse of the 80s never suspended judicial review. Enter an emboldened U.S. Congress led by a Democrat majority that seeks oversight and taxpayer protections. Congress claims to be keenly interested in recouping any possibility of future income derived from currently worthless securitized bonds as the Bush Administration claims. Yet, the American taxpayer will never see a penny from these worthless pieces of paper.

homeowner bailout

homeowner bailout

Democrats want to be certain that going forward, any institutions that benefit from financial insurance also bear the cost of that insurance. Congress is also interested in bailing out beleaguered homeowners that face losing their homes. On “The View,” Whoopi Goldberg and Bill Clinton agreed that enraged Americans need the same bailout consideration that Wall Street and the financial system is getting. Unlike Congress, Whoopi and Bill weren’t talking about new bankruptcy laws that Barney Frank thinks will do the trick. Americans want cold hard cash that they can retire on, like the bankers that robbed the nation.

While all of these opportunities can be justified and even supported, the possibility of pork barrel spending is likely to escalate as Senators and Representatives see the opportunity to bolster their interests. That is the part and parcel of shameless American politics in this age.

credit addiction

credit addiction

Meanwhile, a desperate executive administration and U.S. Treasury Secretary are prepared to do most anything to get legislation through Congress. Reputations are now on the line.

Paulson and President Bush have argued that the alternative is that credit markets will remain frozen. Businesses will fail because they can’t get the loans they need to operate. The economy will grind to a halt because consumers that account for two-thirds of U.S. economic activity, won’t be able to get the credit they need to keep spending. Just think, it all started with broadening the profits of bankers by using compound interest instead of simple interest. We’ve come a long way baby.

national security

national security

Unbridled credit is the insanity that this nation has been built on in the last four decades. Unbridled credit is what has enabled this nation to rise prices without raising wages. Unbridled credit is what has allowed the American consumer to sell himself into slavery to financial interests. Unbridled credit is what has built the power that politicians and business have come to depend on. Unbridled credit is why even Big Business seeks cheap Federal Reserve funding. The Federal Reserve and the International Bankers hold the key to that credit through the auspices of the federal government. The spectacle is all about power and the fear of change. This is the nation’s new national security issue. ~ E. Manning

September 14, 2008

Wall Street: Strength or Poor Collateral?

economic checkmate?

economic checkmate?

With each succeeding bailout through nationalization, the U.S. government grows larger. Innovation rarely happens within government, so nationalization is rarely a good prospect for a growing and dynamic economy. The U.S. economy is clearly in a decline. More bailouts only prolong the pain and do little to spur the nation forward as it languishes and flounders. Bailouts appear to be a prop, but in reality further weakens the economy in a downward spiral.

More and more businesses want government money to move their business projects forward, especially for public works and energy projects. Arguably, either business is so bad that business doesn’t want to take risks or business has become lazy in risk department, unwilling to set aside funds for projects that might be considered in the public interest. Big Business is coming into the habit of standing by for government loans at “public expense.” Even the Big Three auto manufacturers are looking for handouts or cheap loans from the Federal Reserve.

All weekend, bankers of prominent standing have been visiting the Federal Reserve Bank of New York in round robin style, while the U.S. Treasury pounds away in the hope of negotiating an agreeable deal for Lehman. The prospect of saving the majors of Wall Street and preventing economic collapse around the globe as investments are compromised is what is at stake.

Investment bankers have been able to borrow from the Federal Reserve since the collapse of Bear Stearns. Based on certain rules, the Federal Reserve has allowed investment bankers to borrow operating capital for the short-term to sustain business. Investment banks have supposedly stopped borrowing from the Federal Reserve since April of 2008.

On the surface, this lack of borrowing is indicative of an improvement in health. However, if the quality of the collateral held is so poor that the Federal Reserve will not accept the collateral for a short-term loan, this is indicative of far greater failure than is being publicly admitted. Could this be why bankers are being called to the Fed in the hope of sequestering a bailout deal and leave running the other direction?

Bankers are naturally eager to survive and unwilling to soak up any more failed collateral. If the government doesn’t come up with an enticing enough proposal to persuade a private bailout, the collapse of Lehman is likely to lead to global losses and more financial dominoes. Henry Paulson has been reluctant to promote more bailout fever, perhaps fearful of more weakness and more bailouts on his shoulders.

Clearly, the U.S. government is incapable of bailing all business out, nor should it be expected to. Business holds a certain amount of risk that can be largely anticipated to a certain point. Bankers have been heavily impacted from the financial derivitives that were expected to create endless wealth. Smaller commercial bankers in the United States have been largely protected from these risks and continue to make poor decisions because they can. International bankers and bank holding companies cannot afford to eat more huge losses while borrowing heavily from foreign nations for more financial sustenance. If there is no profit in a deal, they won’t be making one.

The U.S. and perhaps the global economy is at a crossroads this week. We are going to find out whether Uncle Sam can find a way to entice bankers into a private bailout. Perhaps reality is so bad that the deal is virtually untouchable. Has “tough love” finally come home?
~ E. Manning

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