Busted: Bankers and The Global Economy

September 27, 2008

U.S. Sovereignty Lost to Federal Reserve

a corporate nation

United States now a multinational corporate nation

For a long time the U.S. Securities and Exchange Commission has been committed to deregulation and a proponent of voluntary regulation. The head of the SEC, Christopher Cox admits that voluntary regulation has been a major contributor to the market and economic collapse. By his admission, the government regulatory oversight program was fundamentally flawed from the beginning.

The reality is that the SEC is out of a job because investment banks in the strict sense no longer exist. The SEC will still have primary responsibility for regulating securities brokers and dealers. However, the interesting prospect is that all future oversight will be turned over to the quasi-governmental Federal Reserve under Ben Bernanke. All the government players have agreed that government regulatory failures brought on the economic collapse.

A grand attempt to extort the nation has been made by Henry Paulson as he claims that the United States must rush into a solution that has been evolving for the last twenty years. His reputation is on the line. The reputation of the Bush administration is on the line if they still have one. The reality behind the immediate panic of the crisis rests firmly on the loss of jobs in America as bad mortgage securities continue to implode on nation. Trust across the board has been diminished and lost. The crisis of confidence reigns supreme.

The Federal Reserve continues to attempt to suck up more and more control and power. And why not? They hold the purse strings and ultimately the support required to run the nation. The United States has lost its sovereignty to what is effectively a multinational corporation courtesy of the mindless politicians that citizens elected to man the helm of the United States. They have lost the will to manage money, turning the nation into a den of slavery. The United States is effectively a corporation that belongs to International Bankers, a fascist state of sorts.

corporate slaves

corporate slaves

The Federal Reserve cannot be audited even though there have been some moves by Congress to make the attempt. The Fed has resisted responsibility for national accountability, instead using economic theory and global banking governance to bolster its position and control over the dollar. The world is now effectively run by an International Banking Cartel that on this website is referred to as the International Society of Bankers. ~ E. Manning

For more information on this topic including the hierarchy of the global banking system, review this website.

 

Advertisements

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 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

August 31, 2008

Muslims Prepare for Global Banking Power

Dubai Bank plans to become a major global Islamic lender over the next five years through acquisitions and has set up a $5 billion financing program to assist in the expansion of its authority. This is similar Noor Islamic Bank, which seeks to be the largest Islamic bank within 5 years.

The ruler of Dubai currently holds 40 percent shareholder interest in Dubai Bank. There are negotiations for joint ventures with certain countries targeting the business world to ensure Middle East control of business resources.

Demand for investments and financial services that comply with Islamic law are all the rage among Muslim authorities. Islamic banking includes a ban on the receipt of interest, a concept that is growing among the world’s 1.3 billion Muslims as they seek more ethical ways to invest personal resources.

With the continued influx of global cash, American greenbacks and business savvy, Muslims are prepared to launch a new era of banking and business success with the intent to spread that influence around the globe. The ambitions of family-ruled Dubai have soared during the last few years, benefiting from the profits of oil revenue. Dubai plans to build two of the world’s 10 largest financial institutions by 2015, Dubai official Omar bin Sulaiman told Reuters last year.

The role of central bankers in the scenario, if any, is currently not spelled out in clear writing. Islamic banking could be a rival to central bankers in the near future, since Islamic banking does not agree with the premise of the International Society of Bankers. Any compromises and affiliations could prove to be very interesting as the digital economy of power continues to build. Will the coalition that results clip the wings of liberty as implicated by the image in this article? That reality is likely.~ E. Manning

August 24, 2008

To Know Inflation is to Love Inflation

A recent survey of top economists shows that many are growing more concerned about inflation and slightly less worried about mortgage and credit market problems. Economists love to worry, based on the terms of their limited value in the system altogether. They love to measure, calculate and count beans, but somehow are most always wrong. Someone else is always more right depending on the politics. The devil, you see, is in the presentation.

The financial crisis that has pounded the United States, coupled with higher inflation than the Fed cares for, is taking a larger toll on the U.S. economy than planned and poses a major challenge to the Fed’s ability to restore order. The Fed has a planned inflation rate, which is essentially the fee they charge, along with copious interest charges, to support the International Society of Bankers, the bevy of global central banks. The more money they generate, the more they can send to Rome and Switzerland to horde more gold and precious metals.

In fact, you could consider inflation a good thing. Why? Everyone, all the way to the top, suffers a loss of buying power because of the slippery slope of inflation. Inflation forces creativity upon the business world and the land of government. Still, nobody is more creative than central bankers, as they invent more ways to snatch the lifeblood of your labor. The theft of inflation is real. Inflation is a planned part of international banking prowess. Bankers may be riding a wave of wealth, but they don’t get to enjoy it. They store and horde their wealth with only the thought of building more to horde more. It’s a sickness that never ends. If you like revenge, bankers have it coming, whether in this world or the world to come.

August 23, 2008

Economic Gale Force Winds Blow in the States

Another Friday passed with the closing of The Columbian Bank and Trust of Topeka, Kansas. Ben Bernanke is speaking in an amazing feat of poetry, comparing the economic storm in the United States to gale force winds that have not subsided. This is an almost startling admission from a man so conservative in his explanations. Bernanke is feeling confident about his strength and position.

The appearance of the economy has weathered well so far without truly significant collateral damage for the public to see. Bernanke admits to being challenged with the “softening in economic activity and rising unemployment.” He readily admits that commodities boom is partly responsible for the dramatic rise in inflation instead of simply blaming inflation on energy futures.

The Fed is weathering the gale force storm by hanging tough and hoping for stability. Even “the experts” admit that the inflation outlook is uncertain, but will be a major concern through next year. If the Fed could find a way to control commodity prices, they would probably think they had it made. Bernanke hasn’t devised a way to harness the commodities market yet. Undoubtedly, that is in the works soon.

The Fed continues to work with other central bankers to provide plenty of liquidity for needy banking institutions that are still fearful of interbank lending. Banks continue to use Fed auctions liberally, with demand in excess of supply.

Bernanke admits the need to somehow strengthen the financial system beyond the sustenance that has already been provided. Suddenly, Bernanke is speaking about thorny issues “raised by the existence of financial institutions that may be perceived as ‘too big to fail’ and the moral hazard issues that may arise when governments intervene in a financial crisis.” In other words, Bernanke is expecting some large financial failures. Whether he is alluding to Fannie Mae and Freddie Mac or holding banks like Citi isn’t being admitted. He is sounding warning by his comments as the gale force winds blow. He also defended the need to cover for Bear Stearns almost six months ago. He apparently expects to do so again.

Bernanke has also admitted that the Fed is involved in finding a way to protect bankers from their own financial politics through automation and standards rather than avoiding the risk altogether. In other words, the Fed is seeking to minimize risk by continuing to engage in what has been discovered to be risky banking conduct. Hey, it’s good for business.

Bernanke even discusses covering pools of securitized bonds while seeking more power from Congress to settle a crisis without government intervention. That is good for the Fed’s business as well as the corporate oligarchy takes ever more responsibility for monetary policy and legal oversight from the hands of government. That is the idea in the eyes of the Fed.

Bernanke believes that the more power that the Fed has, the less risk that there is to the system. He is convinced that by having more regulatory power to monitor individual institutions, he can eliminate moral hazard and promote financial resistance, perhaps by increasing capital requirements for banking. He wants to conduct “stress tests” to monitor liquidity, risk exposure and adverse circumstances. He wants to build a new financial regulatory empire operated by corporate global banking. Who is watching the Federal Reserve while all this wonderment is going on? Not a soul is watching the Fed. The Fed monitors itself and as far as the government and Congress are concerned, is “above reproach.”

The reality is that politicians have become thoroughly dependent on the International Society of Bankers. Fear should be firmed rooted in the hearts of politicians. World bankers have the nation of sheep by the private parts and are leading it down the primrose path of banking for sheering.

~ E. Manning

August 22, 2008

The National Deficit Time Bomb

national security time bomb

national security time bomb

Discussion of the U.S. national debt is reasonably prominent on this website and is core to what is often discussed. Recently, Warren Buffet, famed trader extraordinaire has taken some of the spotlight to warn about the excesses and pitfalls of the U.S. national debt that continues to build unabated.

If the U.S. doesn’t move quickly to tame the federal government’s debts, the idea is that the nation will enslave coming generations with economic problems that make this bad year in economic finance look very rosy indeed. Warren Buffet and Pete Peterson are fielding the idea that the national deficit matters this election year. It does, but do the politicians and the nation of people realize it?

Tops in the discussion and recent advertising for the documentary movie “I.O.U.S.A.” is the idea that the United States will continue to be enslaved for future generations to debt that we are creating now. Buffet, Peterson and many others are considering not only the huge $10 trillion dollar national debt, but the projected needs for a soon bankrupt Medicare and Social Security system that threaten to swallow up the system that Congress built. When the additional debt is considered, the U.S. is looking at a national deficit of more than $50 trillion. Keep in mind that this is the future and whether these brilliant money mongers say so or not, is not indefinitely sustainable.

This writer, from all my vast experience in corporate finance and economics, says that the United States doesn’t have the time to indulge in fantasy-land thinking. The future of the nation as the United States is actually at stake now and the crossroads of no return is somewhere in the immediate future. A nation of people cannot continually spend more than they make and put off paying for today tomorrow, while sending huge quantities of economic resources overseas. The International Society of Bankers, at some point and time are going to cut off the “worthless, self-destructive” attitudes that Americans insist on bathing their collective lives in, politicians included. This nation is quickly running out of the clout and the economic strength that it needs to continue to garner the interest and affection of global bankers, the holders of all the credit based on the money system that has been developed. The United States is bleeding itself to death as politicians and business continue the carnage for their own empowerment.

“Our situation is a lot worse than advertised, and we need to start making some tough choices if we want our future to be better than our past,” announced former U.S. Comptroller David Walker. Mr. Walker, the bottom line is that the nation doesn’t have a future if politicians and business interests don’t take notice of the impending crisis. They are too busy dealing with their own self-absorbed ideas and plans for profit. In essence, the people that you are listening to in the documentary “I.O.U.S.A.” are the very ones that had a role in bringing this financial crisis about.

Naturally, the knowledgeable know that the national debt has mushroomed like a nuclear cloud since George Bush took office, which has been in the last eight years. Before that, we screamed about the national debt without realizing what would be cast upon us by reckless politicians in the new millennium. Republican “cost-cutting” and “low taxation” are a myth because politicians have become something other than what they represent themselves to be. The definition of party politics has become a definition bordering on meaninglessness for most of the lawmakers that America continues to appoint. Politicians have denuded the U.S. economic and financial landscape for the appearance of power and the personal interests for the short term with the idea that the United States of America is a “forever deal”.

Walker and the movie cite government figures that show the U.S. government owed roughly $53 trillion more than it had at the end of the 2007 fiscal year. According to the documentary promoters $11 trillion of that debt covers the publicly traded government debt, the amount the federal government owes to employee pensions and the cost of environmental cleanup of federal land. The rest of the $53 trillion figure accounts for projected shortfalls in Medicare and Social Security.

Dealing with such luxuries as land cleanup and the future of health care and retirement won’t matter if the nation spends itself into oblivion and poverty. Even pensions, government guarantees and publicly traded debt won’t matter if politicians don’t get a grasp on some of the realities of what they are doing. The finances of the federal government of the United States threaten the nation more than any subprime mortgage crisis. The mortgage and housing crisis is merely a prelude to an economic house of cards.

Dollar devaluation is in the now and in the future in a very real way as the Federal Reserve continues to serve its’ ailing and senile patient, the U.S. economy. The Federal Reserve is one of many leeches that hang on the national economy, draining it of its lifeblood and purpose. This election year may rank as among the most important in this country, but for all the “wrong” reasons and the people of the country don’t fully realize it. Perhaps the movie “I.O.U.S.A.” can have a profound effect if enough citizens take interest and are willing to demand accountability and change. It won’t be easy. Whether the nation will survive depends on the resolve of the people and their determination to force the current attitudinal corruption out of politics. The problem remains that most Americans live in a very self-absorbed world of their own making, refusing to deal with anything other than what immediately affects them. That is the national Achilles heel. This is a national security issue larger than any war could ever be.

Powers come and go. Like Rome that preceded us and every power before and since, nations rise and fall. Our failures are due to our own corruption and selfishness.

~ E. Manning

Older Posts »

Blog at WordPress.com.