Busted: Bankers and The Global Economy

July 26, 2010

Plague of Home Foreclosures in U.S. Continues

The miraculous recovery that has been proffered by the Banking Elite hasn’t happened. Central Bankers and Wall Street profiteers believed that they could continue to operate with wild speculation while reaping the results and encouraging more of the same. The financial wizards have not proved their financial literacy. Their speculative downfall started with bundling speculative instruments tied to U.S. housing debt that never should have happened to begin with. Hundreds of thousands, maybe millions, of Americans bought homes that never really qualified. The hot market was bolstered until the superheated financial bubble burst, leaving a worldwide recession based on what amounts to Wall Street gambling on highly leveraged contracts that have bankrupted the system. The reality is that the problem isn’t with foreclosures themselves, but with the bundled securities and expected profits that are tied to the failing mortgages. No doubt, these securities have been packaged and sold dozens of times even though they are worth nothing now.

More than three years into a U.S. housing crisis that started a worldwide recession, home foreclosures continue to further the devaluation of the U.S. economy. The waves of foreclosures no longer come from sub-prime loans that have defaulted. Foreclosures come from formerly respectable borrowers that have lost their jobs in an impoverished and drained economy that no functions to support a nation of hard-working Americans, but functions only to serve the Banking Elite.

In the first half of 2010, more than 1.6 million U.S. properties are in the midst of foreclosure filings, which include bank repossessions, default notices and auction sale notices. This is an 8 percent increase from the first half of 2009 which puts the United States on target to reach 3 million filings this year. These numbers show the fragile state of housing and real estate investment, which has been decimated. Government programs have been ineffective at stopping the national hemorrhage. Little has changed except that more Americans are living in rentals, with friends and family, in tents or on the streets, depending on their financial fortunes.

The U.S. government and banking profiteers built a house of cards on the idea that the cost of housing would always rise and that the profits would never cease. After massive bailouts, they are still stuck without a financial course to chart and exploit, beyond tapping government bailouts. The Federal Reserve holds trillions in useless notes and obligations in the hope that someday they will be worth more than the paper they are printed on. The economy continues to spiral downward despite limited attempts by big money multinationals to bolster the market.

Corporate multinationals and banking bigshots aren’t here as charities. They demand to make money for shareholders. For decades they have profited from U.S. tax law and from the backs of manufacturing slaves in the third-world. Now they seek to hold the bottom line and to keep their organizations alive. Now they are cannibalizing inept governments to sustain themselves. Stagnation is preferable to loss as the United States becomes the new third-world in their great plan to level the national playing field through globalization. Welcome to the brave new world of globalism, where everyone is equal except for the corporate oligarchy.

It isn’t pretty, but is pretty much as advertised.

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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.

June 10, 2009

Economy: Good Prospects Beyond White Collar Jobs

Voices of reason have long proclaimed that the only key to a decent future is a college education as we trumpet excess, luxury and credit for all. The halls of academia do not suit every temperament, nor can the world operate only through the league of white collar employment and office jobs. Who will take care of the national infrastructure, manufacturing and all those green jobs that the nation has been promised? A sedentary, artery-clogging, boss-centered lifestyle is not a requirement to exist in America. Yet, hundreds of thousands of American youth have been or continue to buy into massive college loans if credit is available. Nearly half of students who start college will drop out before graduating. Our country has been facing major workforce shortages for years, which have been taken up by illegals in many cases. They are the latest attempt by big business and government to create a new subclass of American worker in which to found a new nation.

white-collar-crimeWithout question, the nation has been suffering where jobs are concerned, brought about by nothing less than white collar crime. You can’t really talk about careers since corporates nip millions of so-called careers in the bud every year due to their own self-interest. That reality existed before the recession stripped the nation of what millions of Americans see as their only self-respect: the job.

America has been convinced working a corporate job is the only way to live. The white collar job has been sold as the American stock and trade. The federal government has been very happy with this campaign as corporations and big business are highly complicit with federal law and the collection of taxes. As a result of this nearsighted approach, the American labor force has been selling itself short and has allowed itself to be deluded about the future and personal potential for the future.

We are being told that only by following rules and leadership of big business, the corporate and the academic world, can Americans possibly prosper. Has this proclaimed fact proved to be true? Are you truly being prospered now? Has the nation prospered? Think for yourself. You are your own best friend and are fully capable of supporting yourself if you are willing to think outside the box that the government, big business and corporates have made for you. There is hope. Great personal success can exist outside the cubicle. You are not a slave…at least not per the founding documents of America. ~ E. Manning

January 18, 2009

Economic Panic: Frying Pan to the Fire

As the economy risks spinning out of control and banks continue to run up multi-billion dollar losses, the Obama administration will face tough choices with the $350 billion remaining in the bailout plan. With the bailout of General Motors by converting it to a bank holding company, some boundaries were set where corporate welfare is concerned. This has stopped most of big corporate Main Street from expecting direct government bailouts so far. There are many institutions that still want a piece of the bailout pie. The result is likely to be a shortage of bailout money.

The rumor is that the Troubled Asset Relief Program (TARP) will be used to build a “bank” that holds the toxic debt, a repository of toxicity that moves those debts firmly into government hands. The government is hoping beyond hope that at some time in the future, those debts will increase in value once the recession is in hand and the economy has returned to health. (more…)

August 25, 2008

Are You Better Off This Millenium?

Media pundits, in any economic times often present the idea that it doesn’t matter how the economy is doing, but how well you are doing. This is an especially potent question during this election year as Americans prepare to vote their conscience for the next 4 years of public and political policy.

Most people consider the foundation of economic well-being as their job. While this aspect of life puts food into your mouth and determines what kind of car that you buy or the size and beauty of the house you live in, a job is probably not a realistic determination of where you truly stand in the economic world.

Most people consider income as the ultimate measure of economic success. You may have seen your wages remain flat over the years. Does your money go as far as it used to even if you do make more? Wage stagnation has been a national problem for years.

The crumbling housing market is at the root of much of America’s current economic instability. Despite declines in value, most homes at this point and time are still worth more than they were at the turn of the millennium. How has your asset value fared?

What about your net worth? Have you managed to put away money for the future or are you stuck in an endless cycle on the treadmill of debt? How you feel about your life probably hinges in large measure on a combination of all these sentiments. What is the reality?

Inflation is what determines the real value of all these measures and sentiments. Inflation is a silent robber that you don’t always see and yet is responsible for a large measure of any financial issue that comes along, whether accidental or intentional.

Inflation is often understood to mean a rise in the general level of prices of goods and services over time in any given economy. Inflation is much more. Inflation also refers to the increase of the money supply without the increase of monetary value or devaluation of currency.

We’ve grown fond of referring to the inflation as a beautifully small number such as 3%. At this level, inflation seems well-controlled and quite harmless. However, the grand scheming lie is that inflation is a low as it is. While inflation figures are computed monthly and change constantly, monthly figures, often average over time are the figures that are used for public consumption.

You only need to visit a place like inflationdata to begin to understand inflation’s effect on your finances in the grand payment plan of life. We have been taught to understand that common statistics are somehow an average of economic forces for the month, magically balanced for the year at a certain point and time. The reality is very different. Inflation is always portrayed as low and controlled.

The reality is that modern financing is built on monthly estimates to make the appearance of costs appear lower. Take the figure presented for any month as a reduction in your income for that given month. In theory, if the rate could stay the same, you would multiply that rate by 12 (for the number of months in a year) to get your inflation rate for the year. Whatever that yearly inflation rate is the amount of loss in your real spending power. That is the brutal truth.

Business may create new ways to lower costs, for example, by sending work overseas to make less expensive products and thus fueling other economies. When money leaves a regional economy, that money further devalues the currency you are using. Inflation is a fool’s game. Ultimately, whether costs are immediately higher or not, you will come to suspect that your money isn’t going as far, even if you spend conservatively.

Economists and government statisticians are constantly jiggering with how inflation is computed and creating new ways to make inflation appear low or non-existent. The myth of 3% inflation is just that: a myth promoted by the Federal Reserve Bank and global central bankers.

Next time you ask the question as to whether you are better off, you now know the correct answer. As long as bankers run the world using the current standards, including fractional-reserve banking, you cannot be better off unless you beat the real inflation rate. In the workaday world of a 9-to-5 working joe, that is a virtually impossible task. Only creative investors and business entrepreneurs can hope to beat the devaluation of currency after the onslaught of taxes, fees, labor costs and overhead. Even they still lose over time. Devaluing currency is a no-win situation over the long haul. Perhaps now you can appreciate the desperation of investors to beat the system and bankers to devalue your currency to make more money for themselves, while putting a smiley-face on the inflation rate as the value of your money drops.

~ E. Manning

July 3, 2008

February 20, 2008

Time to Pay Attention

Filed under: banking, credit, federal reserve, government, investment, money — Tags: , , , , , , , , , , — digitaleconomy @ 9:54 am

Isn’t it amazing? There are so many recession articles admonishing caution and cutbacks, expelling their legendary wisdom: more than six months after recession and after the recession is already well under way. If you were a patient, you would have died already. It is almost as if everyone was mysteriously asleep at the wheel until the United States screamed “uncle”. Now the writers come bearing their sage advice (more…)

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