IT’S NOT A “FISCAL CLIFF” … IT’S THE DESCENT INTO LAWLESSNESS ( Part 1) NOTE: My “COMMENTS” will be within the text of this article
Posted On: December 26th, 2012
The “fiscal cliff” is a myth.
Instead, what we are facing is a descent into lawlessness.
In many situations, austerity programs are imposed on countries that were previously under dictatorial regimes, leading to criticism that populations are forced to repay the debts of their oppressors.
Indeed, the IMF has already performed a complete audit of the whole US financial system, something which they have only previously done to broke third world nations.
Economist Marc Faber calls the U.S. a “failed state“. Indeed, we no longer have a free market economy … we have fascism, communist style socialism, kleptocracy, oligarchy or banana republic style corruption.
Let’s look at some specific examples of our descent into lawlessness.
Lawless Looting and Redistribution of Wealth
That is exactly what has happened.
The big banks went bust, and so did the debtors. But the government chose to save the big banks instead of the little guy, thus allowing the banks to continue to try to wring every penny of debt out of debtors.
Treasury Secretary Paulson shoved bailouts down Congress’ throat by threatening martial law if the bailouts weren’t passed. And the bailouts are now perpetual.
COMMENT: The old ” who was asleep at the switch ” versus ” bait and switch “. NOTE : The US is our crystal ball here in Canada.
Gov’t de – regulated such long time legislation as the Glass – Steagall Act, the rest is history. What Gov’t should hve done was called a time out, and drafted what you call “a plan”. However,the Banksters had a ” now or never ” threat. If Gov’t had done its job, it would never have let it get to this point. This begs the question who is more at fault..or was this a joint venture politically engineered ?
“Lawless looting” can mean (2) things….(i) illegal.. or (ii) “no INTENT for any law to regulate the bailout dispensation”
Bailout money is being used to subsidize companies run by horrible business men, allowing the bankers to receive fat bonuses, to redecorate their offices, and to buy gold toilets and prostitutes.
A lot of the bailout money is going to the failing companies’ shareholders .
Indeed, a leading progressive economist says that the true purpose of the bank rescue plans is “a massive redistribution of wealth to the bank shareholders and their top executives”.
The Treasury Department encouraged banks to use the bailout money to buy their competitors, and pushed through an amendment to the tax laws which rewards mergers in the banking industry (this has caused a lot of companies to bite off more than they can chew, destabilizing the acquiring companies)
And as the New York Times notes, “Tens of billions of [bailout] dollars have merely passed through A.I.G. to its derivatives trading partners”.
One has to keep in mind such concepts as fractional reserve banking, on top of the historical swindles of Private Central Banks. In a quick summary, this Ponzi scheme was due to collapse if nothing else than the National Debts which any Elementary School Student could do the math and realize that not only could it NOT be paid off…it was never meant to be paid off. It is used as a hair trigger to create a crisis.
Simply put, the Gov’t handed billions to the banksters ..much like one opens the vaults and state “take as much as you wish….and do with it as you please“…..they had no laws to limit the aformentioned.
Another lens to view this through is a fiscal Holomodor. The Banksters aim was to indebt the people…via cheap credit via loans with fiat money that never existed, then the classic “double dip ” via getting their fiat money redeemed with REAL money, and royally f*ck over the General Public who they wanted to drive far DOWN from a middle class ranking. It’s just a Communist TWO STEP…..no guns like the Bolshevik Revolution….at least one could see that coming…but a major rug pull by the Communist allies..the Elite. Again the Elite and the Communists are simply (2) sides of the same coin.
This is an ages old strategy….to take control of the money supply(through cheating and manipulation), and confiscate peoples property ( through cheating and manipulation), and the holistic lowest common denominator is acheived. You see, we have been groomed into being primal animals with all sort of divide and conquer self -indulgences ie sex wealth power, consumerism…weakened us morally and spiritually, then the final phase is set in motion….collapse of society …then revolution aka primal level anarchy and chaos …. then martial law in perpetuity = Communist State.
In other words, through a little game-playing by the Fed, taxpayer money is going straight into the pockets of investors in AIG’s credit default swaps and is not even really stabilizing AIG.
Moreover, a large percentage of the bailouts went to foreign banks (and see this). And so did a huge portion of the money from quantitative easing. Indeed, the Fed bailed out Gaddafi’s Bank of Libya, hedge fund billionaires, and big companies, but turned its back on the little guy.
A study of 124 banking crises by the International Monetary Fund found that propping up banks which are only pretending to be solvent often leads to austerity:
Existing empirical research has shown that providing assistance to banks and their borrowers can be counterproductive, resulting in increased losses to banks, which often abuse forbearance to take unproductive risks at government expense. The typical result of forbearance is a deeper hole in the net worth of banks, crippling tax burdens to finance bank bailouts, and even more severe credit supply contraction and economic decline than would have occurred in the absence of forbearance.
Cross-country analysis to date also shows that accommodative policy measures (such as substantial liquidity support, explicit government guarantee on financial institutions’ liabilities and forbearance from prudential regulations) tend to be fiscally costly and that these particular policies do not necessarily accelerate the speed of economic recovery.
COMMENT: The ponzi scheme noted in the last “COMMENT” is described in more detail… One good analogy was that the Banks went to the “casino” with fiat money they created out of thin air…LOST, now have bullied the Gov’t into bailing them out with REAL MONEY by passing the hat amongst the taxpayers to pay for the gambling losses..the old ” TOO BIG TO FAIL ” ….but who decides the WINNERS and the LOSERS ?
I think most of the general public, if given the opportunity, would tell the Banks to go F*CK themselves and put them in JAIL for a LOOOOONNNNGGG TIME, but since our so called ” elected representatives” decide ,we know who they REALLY work for. However, again, the key is that the imaginary money = imaginary losses…….but replaced with REAL Gov’t(aka taxpayer) backed $$$$.
All too often, central banks privilege stability over cost in the heat of the containment phase: if so, they may too liberally extend loans to an illiquid bank which is almost certain to prove insolvent anyway. Also, closure of a nonviable bank is often delayed for too long, even when there are clear signs of insolvency (Lindgren, 2003). Since bank closures face many obstacles, there is a tendency to rely instead on blanket government guarantees which, if the government’s fiscal and political position makes them credible, can work albeit at the cost of placing the burden on the budget, typically squeezing future provision of needed public services.
In other words, the “stimulus” to the banks blows up the budget, “squeezing” public services through austerity.
Numerous top economists say that the bank bailouts are the largest robbery and redistribution of wealth in history.
Why was this illegal? Well, the top white collar fraud expert in the country says that the Bush and Obama administrations broke the law by failing to break up insolvent banks … instead of propping them up by bailing them out.
And the Special Inspector General of the Tarp bailout program said that the Treasury Secretary lied to Congress regarding some fundamental aspects of Tarp – like pretending that the banks were healthy, when they were totally insolvent. The Secretary also falsely told Congress that the bailouts would be used to dispose of toxic assets … but then used the money for something else entirely. Making false statements to a federal official is illegal, pursuant to 18 United States Code Section 1001.
So breaking the rules to bail out the big, insolvent banks, is destroying our prosperity.
It’s not “Illegal’ unless someone takes charge and prosecutes…..the “Tail wags the Dog”.
Suggestion : Take , at minimum, the 100 most crooked Politicians (redundant) and 100 most crooked Bankers (redundant) and give them 20 year minimum sentences your would be amazed at the message sent and the impact. A bit harsh ? No not really, they are beyond indifferent, they have declared war on us in as cowardly a way as possible. PS : I’d love to sit on THAT jury….
( To Be Continued )
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