Socio-Economics History Blog

Socio-Economics & History Commentary

Bankrupt Banking System Bailouts & Stimulus, You Can’t Borrow Your Way Out of Debt

  • This is an excellent article. Can any bankrupt borrow his way out of his bankruptcy? Obviously not. Yet the American government and the FedRes is advocating just that. The agenda is not to revive the economy. It is really to destroy America and push for the North American Union and One World Government. Americans will never surrender all their constitutional rights to a World Government. The sole super power in the world is a threat to the Illuminati globalists’ plan for a World government. So, America has to be destroyed and remolded for their purposes.
     
  • James Quinn writes :
      
    Time is running out. The public relations campaign being conducted by the Obama administration, Federal Reserve and nation’s largest banks is beginning to fail. The lies, half-truths, and cover-up regarding the solvency of the largest banks in the U.S. will be revealed as reality interrupts their master plan. The politicians and government bureaucrats know that 80% of the population don’t understand or care about economic issues. The plan is insidious, systematic and deceptively simple:
      
    Part 1 of the plan was for the Federal Reserve to print billions of dollars and lend this money to the insolvent banks in return for worthless toxic assets as collateral. They have not revealed which banks received the money or the “assets” that have been hidden on the Federal Reserve balance sheet.
     
    Part 2 of the plan was to reduce short term interest to 0% so that the insolvent banks could borrow money from the Fed for free and then lend it out at 6% or higher to consumers and businesses. Therefore, risk averse senior citizens like my mother are receiving 0.5% on their money market funds, while the horribly run insolvent banks are being propped up and enriched by the Fed. With billions in TARP funds, the FASB no longer requiring mark to market accounting, and free money from the Fed, the large banks reported fake profits in the 1st Quarter of 2009.
     
    Part 3 of the plan was the fake stress test conducted by Tim Geithner, his Treasury Department, and the Federal Reserve. The entire stress test was a publicity stunt conducted to provide a false sense of confidence in the largest banks so they could fool investors into pouring billions of new capital into their bankrupt banks. The assumptions used in the stress test were stress free. Unemployment is already higher than the worst case scenario. The stress test time frame ended in 2010. The next wave of mortgage resets and foreclosures will hit in 2011 and 2012. William Black, former bank regulator and author of the book
    The Best Way to Rob a Bank Is to Own One, concluded:
     
     “There were no real examinations. Banks continue to overstate asset quality. The bankers pressured Congress, which extorted the Financial Accounting Standards Board, which gutted the accounting rules on loss recognition. Because there were no real examinations, there were no real stress tests.”
      
    Even the Congressionally-appointed panel overseeing the Troubled Asset Relief Program concluded:  “unanswered questions about the details of the tests, make it impossible to replicate the tests to determine how robust they are or to vary the assumptions to see whether different projections might yield very different results.”
     
    Part 4 of the plan had billions in TARP funds going to the likes of GMAC, Capital One and American Express so they would lend it out to over-indebted consumers and jump start the economy. The $787 billion porkulus plan has dumped wads of dollar bills into the laps of government bureaucrats and unions throughout the country with hopes that something productive might happen. Senator Coburn of Oklahoma issued a report last week regarding stimulus spending. Millions of dollars are going toward bicycle lockers, bike paths, walking trails and skate parks. One town in North Carolina is using stimulus funds to hire an administrator whose job will be to procure more stimulus funds.
       ……
    I’ve laid out the master plan of our “leaders”. The only problem is the are about to get in the way of a good yarn. …. disturbing truth for the largest banks in the U.S. The government supported banks have only written off $1.3 trillion thus far. Based on the realistic estimates from Nouriel Roubini and T2 Partners, there is only $2.3 trillion more write-offs to go for our glorious banking behemoths. The 19 stress tested banks were able to convince foolish investors to drop another $75 billion of capital onto their balance sheets after the stress test fraud publicity campaign.  This $75 billion only comes up 30 times short of covering $2.3 trillion in future losses. As Mr. Roubini recently reported we need a little of Joseph Schumpter’s creative destruction.
     
    “Once again, the question will be how the near-insolvent banks can be kept afloat, to avoid systemic risk. But the question we really should be asking is: why keep insolvent banks afloat? We believe there is no convincing answer; we should instead find ways to manage the systemic risk of bank failures. Why did creditors not prevent the banks taking excessive risks before the crisis hit? For the very same reason creditors are getting a free pass now: they expected to be bailed out. For capitalism to move forward, it is time for a little orderly creative destruction.”
     
    The Obama administration has chosen to go with a plan centered around creative accounting, creative financing, and a creative public relations campaign versus the system correcting creative destruction. This is a plan of imminent destruction of our economic system.
      
    The country has lost jobs in every month since December 2007. The number of unemployed has doubled over this time to approaching 15 million people. While 7 million people have lost their jobs in the private sector, government has increased their hiring by 600,000, from 21 million to 21.6 million. We can all be thankful there are 600,000 more bureaucrats increasing the efficiency of our government.  Despite happy talk by CNBC pundits, investment managers, and government officials another 2 million people will lose their jobs this year. The unemployment rate will approach 11% by the end of 2009. Last week the “business correspondents” at CNBC proclaimed that the reduction in continuing unemployment claims was another green shoot. If they had just scratched the surface like Barry Ritholtz, they would have found the truth.
     
    “The ‘exhaustion rate’ for jobless benefits reveals that people are not leaving the pool of continuing unemployment claims because they are getting new jobs; Rather, they are leaving because they have exhausted their benefits. They are now unemployed AND broke.”
      
    The continuing deterioration in employment, the tsunami of Alt-A mortgage resets coming in 2010 and 2011, home prices declining another 10% to 15%, doubling in oil prices since January, billions in credit card write-offs in the pipeline and the progressing collapse of the commercial real estate market will throw cold water on the Obama master plan to save the banks and the economy. The sooner this occurs, the better. Their solution of trying to borrow and spend our way out of debt was flawed and asinine from the start. If Americans are ready to accept the inevitable pain of deleveraging today, we can take back the country from the banking crime syndicate and the politicians that are in their back pocket.
      ….
    As a country we face an extremely difficult challenge. The deceptive scheme instituted by the government bureaucrats, dishonest bankers, corrupt politicians  and the Federal Reserve has convinced millions to believe their deceit. The foundations of their scheme are built upon a blizzard of lies. The only way to confront lies is with the truth. They are counting on some givens. Doug Casey describes a large portion of the U.S. population as Boobus Americanus. These are the functionally illiterate who have been pushed through our government run public school system. They don’t know the name of our Vice President. They can’t add, subtract or write a sentence. They will believe anything they are told by Obama. There are also the ultra-liberals who will believe anything their Messiah utters. Lastly, the large banks, Treasury, and Federal Reserve will do anything to maintain their wealth and power. This coalition of greed, sloth, and avarice presents a daunting challenge.
       …..
    The largest banks in the United States have balance sheets populated by trillions in toxic worthless assets. The lifeblood of any bank is deposits. If a bank is denied its deposits, it will collapse. There are 8,000 other banks and 8,000 credit unions in the country. Thousands of these institutions never made a bad loan. If you have money on deposit with one of these mega-banks withdraw the money and deposit it into a small local bank or credit union. You will have the same FDIC insurance and won’t sacrifice any income, since these mega-banks are paying less than 0.5% on your deposits, while charging you 8% for car loans and 20% on credit card balances.
     
    These banks continue to write-off billions in bad credit card and mortgage debt, quarter after quarter. These banks make billions in late fees and interest income by charging 20% to people who pay their debts over time. If the good credits take their business elsewhere, the mega-banks will be left with only bad credits. Most people have 5 to 10 credit cards. Stop using your mega-bank credit card and use a credit card issued by a local bank or credit union. With mortgage rates near generational lows many people have an opportunity to refinance. If this opportunity arises, choose a local bank or credit union. If you decide to buy a car, don’t buy a General Motors or Chrysler vehicle. The government controls these entities. Don’t finance your car through GMAC. By denying the government beast its revenue stream, it will slowly die.
     
    The average individual tax refund for 2008 was $2,700. This was effectively a $200 billion interest free loan to the U.S. government. If every working American walked into their place of employment on Monday morning and increased their W-4 exemptions by 2, we would deny the politicians in Washington of billions for a year. This is a legal way of starving the beast. The corrupt political machinery in Washington DC is dependent upon Americans to spend money. Our spending accounts for 70% of the U.S. economy. Surprisingly, American citizens have more control over the situation than we know. The mega-banks and our government are rotting from the inside like a diseased Oak tree. A gale force wind provided by the prudent Americans can topple the diseased tree.
        …..
    The current fiscal course of the country is unsustainable. We can choose to let the country drift toward a corporate fascist run government which will collapse under the weight of debt, corruption and mismanagement or we can make a stand today with our own money.  If enough Americans choose to put the horribly run mega-banks out of business it can be done. There would be absolutely nothing that Obama or Bernanke could do stop it from happening. It is time to do the right thing. Do you know what’s worth fighting for?

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June 25, 2009 Posted by | Economics | , , , | 2 Comments

Whistleblower Who Linked “Taliban” Leader To US Intelligence Is Assassinated.

  • Who is causing all the problems in Pakistan? What is the war in Pakistan about? The corporate fascist state need to build an oil pipeline across Afghanistan and Pakistan. So they need to secure this territory. The Illuminati rulers can use a fragmented Pakistan to push their ‘terrorism’ agenda to trigger wars…. to destroy countries that are a threat to their One World Government agenda, to trigger nuclear ‘terrorist’ attacks to push for their One World Army agenda. Things are seldom what they seem.
     
  • Steve Watson reports :
      
    A whistleblower who defected from the Pakistani Taliban has been assassinated just days after he claimed that the group was working with US intelligence to destabilize the country.
     
    Qari Zainuddin, a tribal leader of the South Waziristan region in Pakistan was shot dead on Tuesday by a gunman said to be loyal to Pakistani Taliban chief Baitullah Mehsud.
     
    Analysts said that Mr Zainuddin’s murder was a serious blow to the military campaign against the militants, as support of his faction was considered crucial, reports the London Times. “[It] is a warning to other pro government tribal commanders,” said Mahmood Shah, a retired brigadier who had served as top official in the tribal region.
     
    Zainuddin had rejected Mehsud’s Taliban tribe, and shifted his allegiance to the Pakistani government, following a string of suicide bombings targeting mosques and civilians. The Pakistani government also claims that Mehsud was responsible for the 2007 assassination of former Pakistani Prime Minister, Benazir Bhutto.
     
    One of Qari Zainuddin’s aides, who was also injured in the attack that killed the tribal leader, told the media that a lone gunman was able to enter Zainuddin’s office and open fire, before escaping uninjured.
     
    “It was definitely Baitullah’s man who infiltrated our ranks, and he has done his job,” Baz Mohammad told the Associated Press news agency. Zainuddin had recently hit out at Mehsud in an interview with the AP.
     
    “Whatever Baitullah Mehsud and his associates are doing in the name of Islam is not a jihad, and in fact it is rioting and terrorism,” Zainuddin said.
     
    Though the BBC and other mainstream sources highlighted this interview with Zainuddin, they neglected to cover the fact that Zainuddin also reportedly denounced Mehsud as “an American agent”.
      
    Both Iranian and Pakistani media independently covered his remarks, adding that Zainuddin also described Baitullah Mehsud as having strong links with both Indian and Israeli intelligence. In an interview with local media the defector said that Mehsud had established strong links with Israeli intelligence services, which were destabilizing the nuclear armed country, reports the Iranian news service Press TV.
     
    “These people (Mehsud and his men) are working against Islam.” the report quotes Zainuddin as having said. Meanwhile, Pakistan’s largest daily newspaper, The News, carried a report last Sunday that highlighted the remarks:
     
    “In interviews to various media organisations on Thursday, Qari Zainuddin and his deputy Haji Turkistan had alleged that Baitullah was an American and Indian agent, he had killed Benazir Bhutto and that the real Jihad was going on in Afghanistan, not in Pakistan.” the report stated.
     
    “Many diplomats contacted Foreign Office and Interior Ministry officials as well as media persons, seeking answers to their questions. Some Western diplomats were particularly confused over the claim that Baitullah was an American agent and that he had killed Benazir Bhutto. These diplomats were asking a question that if Baitullah was involved in the assassination of Benazir Bhutto, does that mean that the American authorities were also involved in the conspiracy.” the report continued.
     
    Of course, whether you put faith in the Iranian and Pakistani media on these reports, is another question, however, there have been suspicions for some time amongst some Pakistanis that Baitullah Mehsud is on the CIA payroll and is being protected by the intelligence apparatus.
     
    According to retired brigadier and former vice president and founder of the Islamabad Policy Research Institute, Shaukat Qadir, the Pakistani military has requested US help to kill Baitullah Mehsud on several occasions and provided the US with accurate information of his location. Despite this, he claims, Mehsud was never targeted.
     
    Other analysts hold suspicions that Indian and US intelligence are funneling weapons, financial aid and even fighters to the Pakistani Taliban. The history of the Taliban in Afghanistan, as we have previously reported, is replete with connections to western controlled intelligence agencies.
     
    These facts were also recently highlighted by Pakistan President Asif Ali Zardari, who admitted that the CIA and his country’s ISI together created the Taliban. The Taliban’s spread into Pakistan has also been connected to intelligence driven plots to Balkanize the middle East.

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June 25, 2009 Posted by | GeoPolitics | , | Comments Off on Whistleblower Who Linked “Taliban” Leader To US Intelligence Is Assassinated.

1976 Swine Flu Vaccination Propaganda and The Side Effects

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June 25, 2009 Posted by | Medicine & Health | | 20 Comments