Busted: Bankers and The Global Economy

November 15, 2008

Video: Money is Debt, Debt is Money

Filed under: banking, government, money — Tags: , , , — digitaleconomy @ 9:00 am

Zeitgeist: Addendum

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September 28, 2008

Liquidity Crisis is Accounting Semantics

In dealing with the bailout the reader needs discernment that is provided on this website. Remember that the ultimate solution for global banking per the global central bankers is the integration of Basel II rules. Basel II rules don’t prohibit the kind of banking profitaking or abusive policies that we have seen in the United States over the last decade or more. Basel II, the creation of global bankers is little more than a charade, pretending to be a solution for little or nothing. Basel II merely restricts the surface exposure of the tricks that accountants play with the direction of their superiors.

The bottom line is that the liquidity crisis in America is in large due to semantics in accounting, combined with the fear of bankers. When payback has come home to roost, bankers have become very protective of themselves. The result is clear to see. These accounting tricks that are used by bankers and big business to bolster the bottom line while accentuating power and growth has become the established tour de force of the industry that they don’t want to give up. If you haven’t deduced the truth from reading this blog over the last year, know the truth now. The crisis that we have in largely based in fear because of rampant abuse of the system. Bankers know what awaits them because of what they have done along with the sponsorship of the U.S. government. Turning a blind eye to improper banking and accounting standards because those standards “enriched” the nation has finally completed the cycle. Regulations weren’t the problem. The will to enforce regulations along with acceptable standards was and still is the Achilles Heel of the system.  

What everyone in the U.S. economy has forgotten about is the glory of small business creativity and empowerment that the United States as a nation used to enjoy. Instead, the U.S. has turned to fascist corporate policy and close scrutiny on personal freedom as the safe way to live and profit. Increasing control, now available through computers, the internet and global tracking technologies is becoming the established way of policing the nation. A meaningful grass roots recovery will be difficult to impossible until this changes. Ultimately, this is what is needed to restore any level of quick recovery to the nation. Politicians must give up some of the control that they are determined to enjoy. ~ E. Manning

September 11, 2008

The Con Game of Securitization and Wealth

crisis through securitization

crisis through securitization

According to Federal Reserve’s Vice Chairman Donald Kohn, “One reason for the loosening of standards was the expectation that house prices would continue to rise and even more certainly that they could not fall in all regions at the same time, supporting diversification through securitization.”

This small sentence combined with a summary of all the accumulated evidence maintained by the Federal Reserve shows the propensity for a lack of regard for economic concerns over the immediate concerns of profit.

“Rising prices would enable lenders to recoup their funds even if the borrower was unable to service the loan, mostly because the borrower would be able to obtain extra cash through refinancing. Expectations of house price appreciation facilitated and interacted with the increasing complexity of mortgage securities, including multiple securitizations of the same loan, which made it virtually impossible for ultimate lenders to monitor the creditworthiness of borrowers. This was a task they had outsourced to credit rating agencies. The absence of investor caution and due diligence was especially noticeable for the highest-rated tranches of securitized debt.”

securitized vomit

securitized vomit

Who started the securitization of loans to begin with? Give the government geniuses at Fannie Mae and Freddie Mac credit for the wunderkind of shaky banking ‘o so many years ago. That is why authorities in banking and in government are quite mum about the evil and deception of securitized bonds. What is worse, they have no intent to change a thing.

The Federal Reserve is still brainstorming new ways to “ameliorate systemic risk. That said, a host of difficult judgments are inherent in how we establish such a system.” That is the trillion dollar question. In the words of Donald Kohn; “How we can structure these requirements and other aspects of regulation to damp, rather than reinforce, the natural procyclical tendencies of the financial system?”

economic usury

economic usury

If the U.S. economy were equated to an automobile engine, we would be running on half the cylinders. The Federal Reserve and other surrogate economists don’t have a clue and are now discussing “solutions” among themselves. Global bankers long for a solution to the trillion dollar question and they want to continue doing the same old things as long as it makes them money for the short-term. The idea is not what is good for any economy, but what is good for quick profits for themselves. That is what banking around the world has come to represent: corporate profit behind the scenes and personal profit while that is possible. Never forget that the Federal Reserve and global central bankers are corporations bent on making a profit, part of a “franchise” of banks that loosely report to Swiss and Roman bankers. They live off of the world; therefore economies are simply tools for wealth. That is the danger nations, governments and peoples face.

Don’t fool yourself. Global bankers are running the world to your peril. However, the sophisticated United States government and others are all for making a profit while they can, oblivious to the danger or convinced that they will live forever while central banking pumps them dry. ~ E. Manning

September 21, 2007

Fed Speech Admits Failures and Humility

Filed under: banking, federal reserve, government, money — Tags: , , , , , — digitaleconomy @ 11:10 am

“Among the lessons… from the failed monetarist experiment are that central banking is an applied science and that our imperfect understanding of how economies and markets function implies that a good dose of humility is required…”
~ Vice Chairman Donald L. Kohn

Success and Failure of Monetary Policy since the 1950s

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