Tag Archives: bailout

Counting the Cost – Money for nothing

Tarek El Diwany and Jem Bendell have done a great job in this Al Jazeera interview program explaining the dysfunctional features that are built into the corrupt global system of money and banking. They also cover Islamic banking and mutual credit clearing. This is a “must watch” video.—t.h.g.

Lie more about LIBOR—Giethner’s claims “not credible”

Here’s a video from Yahoo! Screen featuring an interview with Neil Barofsky, former Special Inspector General in charge of the TARP bailout and author of a new book, Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street.

In this interview, Barofsky says that Treasury Secretary Tim Geithner’s claims about his LIBOR whistle-blowing are “not credible,” and that the entire regulatory process has become “captured to the interests of the banks.”

Barofsky says that LIBOR was built into the bailout plan, so the fraud means the taxpayers are being repaid less than they should be, and added “I hope we see people in handcuffs.”

Watch it here.

Occupy World Street, Ross Jackson’s Anthem for the movement

Ross Jackson is more than a thought leader and visionary; here he is performing a song he wrote for the Occupy Movement. I think it is both inspiring and entertaining, an excellent companion to his recent book by the same name. You can learn more about the Occupy World Street agenda at the website,  http://occupyworldstreet.org/.

Banks too big to fail; bankers too powerful to jail.

According to the Associated Press, federal negotiators are close to concluding a deal with major banks that would essentially forgive them of crimes committed in connection with the mortgage crisis. You can read the story here, and a critique of the proposed settlement here: Obama Is on the Brink of a Settlement With the Big Banks—and Progressives Are Furious.

What’s the “Occupy” movement all about?—Part 2

Here is an article I came across that provides some further insights about the current mood of the people and the Occupy movement.—t.h.g.

The Re-Greening of Our Hearts (Part 1)

By Jack Adam Weber – Guest Writer for Wake Up World. 14th October 2011

Here we are in the thick of Occupy Wall Street, with the movement and its message spreading worldwide, loud and clear: No more collusion by government and Big Business. No more tax cuts for the already rich and dirty. No more destruction of our planet for the bad habit of bullying-billionaire-ism, an epidemic disease attacking the weak of heart and low morale.

In the first weeks of the ongoing Fukushima disaster I read too many editorials describing the choice between a nuclear or more sustainable future as hinging on the monetary cost to multinational companies, government, and taxpayers. Does it also make you squirm in your skin to hear our world fixated on economic gain at any cost, with the real possibility of environmental collapse as well as species and human extinction from toxic waste streams given secondary concern? Do you care more about remaining “competitive” in the international marketplace above the survival and health of your children and family?

I have reached my limit of political puppet talk to distract attention from and justify the destruction of life on Earth. I could give a crap about the International Marketplace, whatever it is. Come to think of it, I think we should downsize the mythic International Marketplace by 90% (I’d still like to have curry powder to cook with) and replace it with hundreds of regional festivals where we all camp out and envision a new, locally-based future. Camp Headquarters will be biking distance from your home!

We need a new paradigm for living and doing business on Earth, not just an adjustment of the current system. We need a modus operandi that is eco-centric not solely human-centric. This orientation forms the crux of Deep Ecology, which perceives nature as sacred, not primarily a commodity for human progress and development. By granting Nature a right to live and thrive, we grant the same to humanity. We can no longer pretend as though nature is forever indispensable [sic.] and able to re-grow itself no matter the pace at which we use it up. Or that some fantastic messianic miracle of technology is going to save us and regenerate what we have denigrated. Even if there were such a technology, what kind of world would remain in the aftermath?

More…

The monumental Fed Rip-off

We now have the results of the first-ever audit of the Federal Reserve. What it reveals is astounding and outrageous.

Senator Bernie calls it “socialism for the rich,” but it’s not merely “socialism for the rich,” it’s wholesale looting of our common wealth by the people who run the world. This blows sky high all arguments in favor of an “independent” central bank. Independence in this case means allowing an unelected self-serving elite to take what they want free from any effective oversight or control by the people or the people’s representatives.

The list of institutions that received the most money from the $16 trillion Federal Reserve bailout can be found on page 131 of the GAO Audit and are as follows..

Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)

An excellent article on this story, from which the above list was obtained, can be found on Countercurrents.org.–t.h.g.

At last, central banking and legal tender are once again subject to real political debate and public scrutiny.

In what seems to me to have been an unlikely turn of events, Congressman Ron Paul of Texas has been appointed to chair the House Subcommittee for Monetary Policy in the new Congress. In one sense this seems like very good news, on the other hand, it raises some serious questions about the oligarchy’s ultimate game plan.

Ron Paul is undoubtedly one of the few politicians who understands money and banking, but he has some serious blind spots, and call me cynical, but I think that politics at the federal level has been so thoroughly corrupted that I have little hope that anything that promotes the common good can ever come out of Congress.

Still, I strongly recommend that everyone watch the following C-span interview in which Congressman Paul outlines his agenda. It does not go as far as it needs to, but it is an agenda that I, for the most part, endorse.

According to Brendan Trainor, Rep. Paul in this interview makes the following points. I have highlighted what I consider to be the most urgent and important ones (in red).

  • Ron will start by requesting the information that is now due from the Fed from the watered down version of the “Audit the Fed” bill that was passed by Congress.
  • Ron will submit his more robust version of the Bill to Audit the Fed in Congress again.
  • Ron is aware of the twin dangers of his attack on the FED. Criticism of the FED could result in a reactionary attempt to create an even more centralized monetary system, or else “some of my allies who are critical of the FED” who Ron now public-ally calls “GREENBACKERS”, will push for Congressional issue of fiat money. Both of these outcomes have to be guarded against (by those few of us who understand the debate in the first place.)
  • Ron explicitly defends the proposition that the market should be regulating finance, not the regulators. The Market does a better job of regulation than the government. This counter-intuitive idea does require a limited government involvement (not to discount the anarcho-capitalist alternative) that will require
    an atmosphere of “law and order, NOT regulation“.
  • Market regulation through “law and order” means that banks and financial institutions are subject only to ordinary business law: That is, they are free to operate as they please, but they must fulfill their contracts and must not engage in fraud. If they cannot fulfill their contracts, they are to be shut down, not bailed out. Their assets are to be distributed to their creditors (bankruptcy).
  • The surest way to END THE FED is the peaceful, gradual method of eliminating, not the FED directly, but legal tender laws. Allow people once more to use GOLD CONTRACTS and other means of using alternative currencies and specie in domestic business contracts. Let the fiat paper dollar compete with the people’s choice: constitutional “honest money”.
  • Ron correctly deflects the usual straw man criticisms directed at him by those who favor central planning in monetary policy. ie
  • There were numerous financial panics before the FED was created. Yes, there were. But those panics were the result of “artificial conditions” and in any event were allowed to play themselves out by liquidation of the bad debts and bad contracts without government interventions up to the recession of 1920-21. That was the last recession that was handled without government intervention. It was a sharp recession, where unemployment reached nearly 20%. However, because President Warren G Harding did NOTHING, except cut government spending and taxes, the recession was OVER IN A YEAR.
  • If the FED does not intervene, the Recessions will be worse. The corollary of the first objection. Yes, the recessions may at times be worse, but they will be shorter. The so called “Panics” of the pre Fed era rarely lasted more than a year or two, and then the economy fully recovered. The interventionist policies starting with the Great Depression ( a ten year depression) and this one now only prolong the recessions, and in the end, the underlying causes are NOT addressed, leading to a new “BUSINESS CYCLE”.
  • Attacking the FED will harm the US DOLLAR hegemony. Ron: I want to protect the dollar, but within the context of markets. Markets are ultimately stronger than the central banks attempts to shore up the dollar, and nothing the central banks can do will overcome that fact. The Market, in the end, will out.
  • Fiscal policy (Congress) is more important than Monetary policy (the Fed) Ron: they work hand in glove. The Fed basically enables the Congress to spend exorbitantly by creating fiat money to cover them. We have to end the Wars and Global Empire, and we have to end the limitless welfare state as well. IOW, we do have to address fiscal policy, but at the same time, address its enabler, the FED.

Ron explicitly puts forward the idea that the BUSINESS CYCLE as we have known it can be ended. NOT with more regulation, certainly not with more “Central Planning” (that ultimately leads to Socialism, and we know THAT doesn’t work) , but ended  with the limited government ideal (classical liberalism.)

[A major blind spot is the failure to pinpoint interest/usury as the cause of financial imbalance that leads to the “business cycle.”—t.h.g.]

Definitely a radical agenda, led by a peace loving man. Let us all work to explain his ideas as this year’s economic policy drama unfolds. The attacks from the left and the RINO Republican establishment will be vicious and loud. Those of us who understand the monetary debate are few and our voices have few MSM outlets . Even monetarist libertarians will attack Ron. We must resist them to the best of our abilities, by explaining his policies whenever we can.

Brendan

[Another major blind spot is the size and market dominance of firms like Goldman Sachs, Citicorp, J.P. Morgan Chase, Bank of America, etc. Government needs to set the rules of the game to prevent such megalithic financial firms from emerging and manipulating markets. At the very least the Glass-Steagall law should be reinstituted. It also needs to pass legislation that encourages the development of mutual companies and cooperatives in the financial sector. That would be a complete reversal of the policies of recent decades.] — t.h.g.