Busted: Bankers and The Global Economy

March 29, 2009

Geithner Admits Fed Role in Economic Collapse

geithner charlie roseThe Obama administration wants to add a glimmer of hope to the global fiscal crisis that started with corrupted U.S. corporate policy and banking investment greed. Despite efforts of many to put lipstick on the ongoing economic recession and remove blame from corporate bankers and government, in a recent interview with Charlie Rose, Tim Geithner admitted

“a deepening recession. You’re seeing the recession intensify here and really around the world. You know it started here, but the world is sort of catching up. That’s putting more pressure on business and the financial system as we see it. We start with this deepening recession, intensifying housing crisis, a deep fiscal hole in the financial system that’s in some ways very damaged. Parts of it are working well, parts of it are still very damaged. It’s going to take a lot to work through this. Again, we start with a — just a deep mess. It is our obligation to clean it up and to fix it…”

“I want to be clear. Again, we start with a mess, a deep mess, made worse by the deepening recession. And these things are pitting on themselves. And it’s very important for people to understand, it’s going to take some time to work through this. But what I want people to know is that we’re going to do what’s necessary to get through it. And these things will get traction. They will start to help unfreeze things, and they will help lay the foundation for recovery.”

“They (the Fed) projected that optimism in the future and that created the conditions where people took more risks than they should have, and they, frankly, didn’t pay enough attention to the possibility that when this ended, came apart, that the consequences would be as damaging as they did. Now, I spent almost every day from the first time I walked into the New York Fed about five years ago working with my colleagues on ways to try to make the system stronger so we were going to be better able to withstand the kind of pressures when this came apart, and we did some very important, powerful things, but many of the things didn’t have enough traction, and we share with really all parts of the financial oversight bodies here and around the world a deep responsibility for not having done more and a really deep obligation for trying to fix this quickly and put in place the kind of reforms to prevent this from happening again.”

“Our system was not designed to sustain a shock, a crisis of this magnitude. It’s the tragic failure of financial regulation in this country. It was just not designed to tolerate anything of this magnitude. The critical test of any financial system in some senses is how you deal with stress and shock because you want a system that’s going to be strong and resilient enough to handle almost anything it could face. And this system didn’t meet that test because we had a regulatory framework that was designed, largely, 90 years ago and did not adapt to take account of these huge changes in the structure of our financial system.”

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.

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

October 24, 2008

The Fear of EU Leaders

U.S. quietly key player

U.S. quietly key player

President Nicolas Sarkozy of France, the current placeholder of the rotating EU presidency, is spearheading the planned global summit in New York City. He expects concrete decisions to come out of the economic summit next month, which must address the underlying causes of the crisis rather reciting world crisis effects. “We have all understood that it will not be possible to simply meet and have a discussion. We need to turn it into a decision-making forum.”

Most of the world economies seem keenly interested in creating a new global solution to save the global economy and themselves from much economic pain. EU leaders and some other world leaders have voiced a certain amount of fear regarding the cooperation of the United States, who has remained very much on the back burner of the global summit considering its usual role. The election is undoubtedly playing a role in U.S. hesitation and resistance. 

Even Japan and China have become very interested in global economic solutions. Sarkozy told Chinese President Hu Jintao that he fears the United States, which is wary of excessive regulation, would be content if the summit produced “principles and generalities.” That is the real fear of EU leaders since they seem to be looking for radical global change and protection rather than placation and stop gap measures. ~ E. Manning

Global Financial Overhaul Recommended

October 9, 2008

IMF Global Outlook Darkens; Stabilization Dims

The world economy is now entering a major downturn in the face of the most dangerous shock in mature financial markets since the 1930s,” the IMF said Wednesday in its World Economic Outlook. Several prime economies are on the edge of economic recession simultaneously. Even so world banking leaders insist on the idea of a recovery sometime in 2009. The IMF warns of “considerable downside risks” to that scenario, which assumes U.S. and European governments will succeed in their efforts to stabilize markets.

The problem behind the U.S. recovery is that the latest economic bailout assumes stability in overseas markets and the ability of foreign investors to lavish funding on the U.S. economy. With a global recession looming, this potential is quickly dimming as the U.S. economy faces still more rescue measures in the effort to stabilize the national economy. A global recession puts the entire premise of a quick U.S. success in dire straits. ~ E. Manning

September 20, 2008

U.S. Economy: Stagflation in the Wings

The dark underbelly of arrogant and evil monetary policy been put into place today. The decision isn’t new, but is repeated constantly. This decision will affect you and everything you do from today. The news seems innocent and matter-of-fact on the surface and is reported by the media in that fashion, as if central bankers are doing all of us a favor. The reality is far from innocent or hum-drum. Central bankers are pumping billions of dollars in American greenbacks into monetary systems to “sustain the market.”

In response to financial turmoil and lack of confidence, central banks began injecting huge amounts of cash into the world financial system in an effort to make sure that firms needing monetary resources to stay afloat could actually find some. The British central bank, the U.S. Federal Reserve, the European Central Bank and the Swiss central bank: let call them the International Society of Bankers, have injected around $400 billion into the global financial system so far.

global credit

global credit

The idea behind all of this credit pumping is liquidity. This liquidity is for lending, borrowing and who knows what else. All the liquidity isn’t helping you or me directly most of the time. The liquidity is supporting the market to keep the market from tanking in a rather large way or at least to keep global business from stalling. According to central bankers, this is supposed to be good. What is the down side for all this global credit?

Remember that the stock and trade in finance today is the dollar. It is the toy that bankers use to get business done globally and the tool used to manipulate (both good and bad) global markets. As a result, the effect of the dollar on the global economy is likely to be very different from the effect on the U.S. national economy.

As an economist I could talk about M3, job statistics, the national debt or use any number of magical numbers and percentages. I could try to impress you with enormous intellect and knowledge while talking over your head. Sufficient is the fact that record numbers of jobs have gone by the wayside this year and even more jobs are being pumped out the U.S. economy by multinational corporations to promote their immediate bottom line. Sufficient is the fact that the mortgage meltdown is summarily destroying the banking, mortgage and finance system. The causes of the meltdown were designed to bolster and send the industry to new heights of profitability. Sufficient is the fact that the federal government has opted to cover, guaranteeing practically every business failure and misjudgment with credit that they don’t have from the central bankers themselves. That is reality.

A key reality is being ignored that has been previously discussed. U.S. politicians have put the gloss on the reality of our national recession by calling it a slowdown. U.S. politicians and most economists put the gloss on the reality of our national inflation rate by minimizing it with false figures and deceptive tactics. U.S. politicians and most economists don’t want to recognize what this nation has staring us in the face as a result of continual bloodletting of the dollar around the world.

That evil is stagflation. Ben Bernanke has tried to prove that we aren’t going through a 1970’s style economic situation, as if we should be looking at the 1970’s as some kind of measuring stick for today’s economic blight. He is missing the point that the building blocks of the economy are not only different, but that many of the pressures driving the forces behind the economy, now a global economy, is also very different. Comparing apples and oranges is useful only if you can agree that they are fruit, but the sameness ends there. Need I say more? The texture, flavor, nutritional value and uses are similar but different. The same is true today. The only truth that remains the same is the central bankers are behind the economy to profit themselves. All the measuring sticks have altered, corrupted or adjusted to a fine promotional edge. Economics has become something other than science: a marketing scheme. Central bankers are working their global magic and deception on a global basis without apology and most of the world is thanking them for it.

Stagflation is an economic situation in which inflation and economic stagnation occur simultaneously and remain unchecked for a period of time. This is a combination of policy by central bankers that allow excessive growth of the money supply and an economic shock such as a excessive regulation, huge job losses, declining wages and unchecked inflationary prices. We have all of these in place and in force right now.

Continually dumping more greenbacks on the global market may have short-term global and corporate benefits. The central bankers also benefit by increasing the debt base, charging more interest for various and sundry economies and swapping cash for gold held in their vaults as collateral. The short-term effect of acute dollar liquidity on the U.S. economy is very different on all terms.

As the fires of inflation are stoked and as the national economy continues its descent into the economic abyss, the mire of stagflation only worsens, creating a national and ultimately a global dilemma if left unchecked or unmitigated. All of this affects you in very real terms. You are living part of that dilemma today.

Continued government guarantees and nationalization of business across the board makes government larger and creates a larger drain on the American taxpayer as well. In essence, you are paying to sustain the global economy, while the central bankers collect the cream at the top. You are the human capital from which all profits are milked with little reward. The problem behind all of this in a declining economy is that a declining economy cannot fund all of the bells and whistles required by endless debt creation. Ultimately, the situtation is not sustainable.

The nation is running into a wall of debt that must be addressed through some new invention of government and finance in order to keep the scheme going. That is where the nation is at today as we pay collectively through the nose for the privilege of being part of the stock and trade of global finance. The central bankers and the U.S. government have already joined forces in a quasi-governmental scheme for economic power and control as the economy is slowly drained. The men and women that we have elected have brought this to bear. That is why this election is probably more important that any other. Make the right choice.

Stagflation may not be avoidable, but it isn’t too late to save what is left of the people in this nation. We are “human capital,” worth far more than banker grist. ~ E. Manning

Originally published 9/18/08 on TNTalk!

September 18, 2008

Central Bankers foster U.S. Stagflation Today

Market Note: Here is the real news today. 

financial crisis

financial crisis

Central bankers are pumping billions of dollars in American greenbacks into monetary systems to “sustain the market.” Who asked the blighters? What central bankers are doing is fueling the fires of inflation which makes the repercussions of bailout fever more difficult. Yet, nobody asks the question why. Central bankers, under the pretense of helping the market are profiteering and “making themselves useful.” The reality is that they are stoking the fire of U.S. inflation and inflation globally, while taking gold in exchange into their larder to count among themselves as they gloat. The winner of this “market sustenance” is the central banker or the body of International Bankers. Curiously, this is not fostered by the Federal Reserve system directly. However, the central bankers are all in on the same scheme: corporate profits. They do this by bleeding the system and holding the gold while creating more fiat money to lower the value of currency, in this case the staple of the global economy, the dollar which is managed by the Federal Reserve. The end result will be higher prices, devalued currency and more finanical pressure, not less. Don’t be fooled. Markets and panic will heat up whether they do so today or tomorrow. What does this mean for the United States? STAGFLATION. Central bankers are sacrificing the U.S. economy.  5AM CST ~ E. Manning

Read this post penned earlier this morning. Global Economic 911 in Progress

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