Busted: Bankers and The Global Economy

July 11, 2010

Recession: The Ol’ Double Dip?

What is happening in the U.S. economy? The  newborn atmosphere of a slow recovery has plummeted since the start of the year when financial agencies were debating when to announce an interest rate increase. That is no longer the case.

The tax credit for first-time home buyers for up to $8,000 was over in April. Since then, housing transactions have nearly vanished. The mortgage loan interest rate has fallen to historic lows. The economic upturn that authorities claimed earlier this year simply the result of economic stimulus measures by the United States government.

Events are just as somber outside of the United States. From all appearances, a $1 trillion relief package ended the financial crisis that hit Europe. Still there is not a sign of recovery. Germany provided the needed stimulus funds, but is no longer providing capital to keep failed economies that have squandered credit with bankers solvent. Efforts to revive the economy have resulted only in more loss as bankers continue to plunder with their derivative cons. The U.S. has been fearful of making changes for the banking and finance community. Central bankers are still in charge, printing dollars as if there were no tomorrow.

Job are gone in the United States, likely forever. This is the admission of VP Joe Biden a little more than a week ago. States are looking at emergency measures to see what they can do to avoid the bleeding of jobs to other lands and to other peoples. Arizona is due to begin enforcement of a controversial immigration policy that is designed to return employment back to Arizona residents since measures by the federal government have been lackluster to non-existent in many places. The nation is full of illegals, the exact number unknown.

The price of a global economy is likely to be high. Every economy is subject to bring another one down. No one has discovered a way to move out of the doldrums. $787 billion in the U.S. was designed to boost domestic consumption, but the market is still cold. Congress has moved to bolster the economy through The Buy American Act, a ancient law passed in 1933 that requires the suppliers of the government to use American made products. Lawmakers are afraid to close tax loopholes that have remained open for corporations since 1991. As a result, nothing changes.

This has cooled temporary benefits of trade by corporations in the U.S.  known as the trade deficit. Corporations don’t care about this public denuding of wealth. They simply look to their own profits, not a sustainable relationship over time. Politicians outside of the U.S. want to promote free trade, as if the United States has more to offer in this regard. Even during the recession, the States were the primary agent of consumption for the world. Reckless spending, careless law and the rise of the corporate oligarchy has resulted in a new world, with a more level playing field. That is, after all, what globalists have wanted. This means that the big players that the globe depended on for economic sustenance are no longer the powerhouses they once were.

The nation is in an economic quagmire because it has ceded its wealth to corporations, a.k.a. multinationals and central bankers. The common opinion is that nations should not try to survive at the expense of other nations. Even so, the reality is that this has always been the case. The homogenized sameness of global balance supports only those that are in place to take advantage of it. The majority of the world will suffer at the hand those few that won’t. What’s new about that? It’s simply more political pandering that benefits a few.

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February 15, 2009

Rome: Central Banking, Finance See Crisis in Power

banking-goldNew U.S. Treasury Secretary, policy maker for the International Monetary Fund and former Federal Reserve presidential drone Timothy Geithner claims that the world faces the worst economic and financial crisis in decades . In his mind, government, facing growing domestic unease over the millions of jobs being lost, must respond forcefully. Geither has reassured the concerned central bankers and panicked finance ministers at the crisis meeting in Rome that President Barack Obama has ensured that implementing the new stimulus package would be done in a way that respects America’s international obligations.

“We are confronted with a broader and deeper slowdown than has been experienced in decades,” said U.S. Treasury Secretary Timothy Geithner at the G7 Economic Crisis Summit this weekend in Rome. “We will work closely with our colleagues in the G7 and the G20 to build consensus on reforms that match the scope of the problem revealed by this crisis.” Mr. Geithner working to win the hearts of skeptical fellow bankers and finance ministers as they seek to stabilize their own interests and continue to propel globalism and the power of central bankers to new heights. They want a new “Bretton Woods” monetary agreement that promises to change the world and build a New World Order.

At the same time, Geithner has admitted his lack of original thinking. He revealed to G7 ministers that he wants to “get it right” before launching the U.S. stimulus and bailout program so that he would not need to shift strategy midstream, while requesting their thoughts on U.S. strategy. Geithner is apparently still thinking inside the box of Wall Street training to the chagrin of his globalist friends. In fact, few of them are thinking outside of any box beyond their own self-interest.

obama-and-monetary-genius

Fearing a resurgence of protectionism and an obstacle to globalism, crisis talks ended in Rome Saturday with a unified pledge to do all that can be done to combat recession without distorting the myth of global free trade.

The media has proclaimed that Treasury Secretary Timothy Geithner came to the Rome this weekend to prove to Group of Seven colleagues that he was up to the job of fixing the U.S. financial system. The only item that he proved was that he is one of them, a brotherhood of bankers in lockstep meeting where control of the banking economy firmly rests: the halls of Rome and the Vatican.

Deutsche Bank Securities chief economist stated: “It’s not big enough. There are few details. The administration is trying to buy time and they don’t get the fact that we need to get something yesterday.” The underground criticism is that the Federal Reserve and the U.S. Government are not playing into the hands of globalists and Roman-based central bankers fast enough. In the meantime, Geithner is speaking out of two sides of his mouth. ~ E. Manning

February 3, 2009

EU Complains about US Protectionism

made-in-usaAt a time when global job loss in 2009 is expected to top 51 million, the European Union is complaining about the protectionist policy exhibited in the recent stimulus plan heralded by President Obama. U.S. economic output has further contracted by 3.8% in the last quarter of 2008. President Obama has announced a new task force to look after ‘middle-class American families’, to be headed by Vice President Joe Biden. This task force is designed to work on creating well-paid jobs for middle-class working families in America. In line with that thinking, the current stimulus legislation contains a clause seeks to ensure that only U.S. iron, steel or manufactured goods are used in projects.

The reality remains that most of the stimulus money in the current plan is designed to support the government and state safety net for government activities, benefits and the disadvantaged over actual economic business stimulus. Still globalist politicians consider that the precedent set in the stimulus bill is policy that encourages nothing less than more protectionistic policies in future at a time when the global economy is in tailspin.

Many would reason that at times like this, any domestic government should encourage the consumption of home produced goods. Globalist leaning politicians and lobbyists don’t color their world in such a way.

The EU is threatening to file a complaint with World Trade Organization about the protectionist policy and are considering other retalitory moves against the U.S. The reality is that the brain trust at the EU realizes that their options are quite limited as far as dealing with the new trade direction that the U.S. seems to be taking, but see their only option as taking it up with the watchdog WTO. Many foreign trade partners are fearful of President Obama dismantling the NAFTA agreement which gives them preferential treatment in trading while continuing to put the economy of the United States at a disadvantage during a time of record economic heartbreak in the U.S. For decades, the United States has quietly supported a global expansionist policy. Now the support is in question during dark economic times. Where the Obama administration really stands regarding ‘free trade’ is in question as concern and fear rises among foreign powers and authority. ~ E. Manning

For those wondering about the health of the U.S. economy, the Federal Reserve has extended the date of all expiring liquidity programs through October 30, 2009 in an effort to improve the ailing economy. They will have the privilege of extending the programs again when October comes around barring better ideas.

July 2, 2008

Welcome to the “Slow-Motion” Recession

“It’s a slow-motion recession,” said Ethan Harris, chief United States economist for Lehman Brothers. “In a normal recession, things kind of collapse and get so weak that you have nowhere to go but up. But we’re not getting the classic two or three negative quarters. Instead, we’re expecting two years of sub-par growth. Growth that’s not enough to generate jobs. It’s kind of a chronic rather than an acute pain.” Harris should have some idea as his company is a major player as part of the problem as an investment banker. Yep, things have “kind of collapsed.” Conditions are making honest men out of economists. Pervasive weakness is a more accurate concept.

The European Union bankers have a more apocalyptic take on what to expect here (more…)

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