Busted: Bankers and The Global Economy

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

Advertisements

March 11, 2009

U.S. Economy: Prepare for Depression and Inflation

Central Bankers Support More Inflation Now

European Union Rejects Breakneck Fiscal Stimulus

economic-knife

Article on Associated Content by E. Manning

We are living on the edge of an economic knife. The U.S. government is bailing virtually everyone in the financial system out. If this continues, the U.S. can expect hyperinflation that hasn’t been seen since post-war Germany down the road.

January 1, 2009

Fed Fearful of Deflation

creditcrunchBankers, especially central bankers strive to be boring while blending into the background. They simply don’t want the attention or someone looking over their shoulder. Unfortunately for them, their inability to follow reason or right and the resulting tough economic times has cast the spotlight unpleasantly on them.

Central bankers, steadily losing the illusion of control, have hit bottom, now using their “own resources”. For example, the Federal Reserve has been using it’s own balance sheet more and more to battle the economic onslaught since March of 2007. Otherwise, the bottom would have already dropped out of the bottom of the U.S. economy and we would be enjoying a profound depression today. Since the dollar is the stock and trade of global currency, central bankers have taken an active interest is propping the dollar up. What has scared many is the idea that the taxpayer of the United States is somehow responsible for all the debt and all the funny money created from thin air by the Federal Reserve, even though the national debt now outstrips the yearly gross national product of the nation.

Now, the Fed is loaning money at theoretical zero. “The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability.” The Fed has proven the point, manipulating and managing accounting parlor tricks to keep the U.S. economy at the preferred magical 3% inflation rate for more than thirty years.

To make matters worse, Fed economists are uncertain whether the balance-sheet politics will work, although they are hopeful that psychology will. Now the idea of dropping prices and falling employment rates has the Fed buggered once again. They fear that inflation could fall too low or to make matters more clear…deflation of the national currency.

Back in December of 2003, Ben Bernanke wrote about the “Downside Danger.”

The potential harm of very low inflation or deflation depends on the economic environment. Deflation can be particularly dangerous when a financial system is shaky, with household and corporate balance sheets in poor shape and banks undercapitalized and heavily burdened with bad loans. Under such conditions, deflation increases the real burden of debts—that is, it forces borrowers to repay in dollars that are more expensive than the dollars they borrowed—and may exacerbate the financial distress. (Unexpectedly low inflation has a similar effect.) This phenomenon, known as “debt deflation,” factored prominently in the global economic turmoil of the 1930s and may have played an important role in Japan’s recent troubles.

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

February 10, 2008

The Seduction of Convenience

Filed under: banking, credit, government, Islam, money — Tags: , , , , , , , , , , — digitaleconomy @ 10:25 am

Prepaid Banking Cards Sell in Muslim Banking

For years, the Muslim banking community has resisted the standard trappings of the banking industry. The National Bank of Abu Dhabi, one of the leading banks in the United Arab Emirates, has announced the issuance of its Dubai eGovernment Pre-paid card. Now, the Muslim is being offered an alternative to cash and checking as the New World Order of electronic banking and tracking further tightens the noose on the unsuspecting world: all in the name of convenience. The bankers are focusing on “the non-banked” like low-salaried employees, retirees and students.

islamicbankingandfinance.jpgThe typical publicity line is that the banking card “allows cardholders to better budget finances by limiting spending to the amount of funds that have been loaded to the card, ensuring greater convenience, benefits and security for all United Arab Emirates resident and visitors. Do you smell the control while the bankers and government officials rub their hands in glee? How easy will it be to round up tourists in the event of any uprising or government collection program? The government has absolute control of the money with this new card. Beware of the seduction of convenience.

Create a free website or blog at WordPress.com.