Friday, October 30, 2009

Government Now In Hands of Wall Street Gangsters

Did you stop to think (yet) that they really believe that US citizens, having succumbed to dumbed-down educational institutions, are pretty easy pickings?

No?

Well, don't read the latest from Professor Paul Craig Roberts who asks "Are You Ready for the Next Crisis?" Roberts is one of the few to say that Geithner works for Goldman Sachs (now) and that the whole economic policy is being run for the well-being of a few very rich people; also that the Fed's only job today is "sheltering" the Big Boys from risk (as a way to take advantage of investors) as they cook up the next bubble stew. On the You Tube video he also lets the cat out of the bag about the upcoming dollar devaluation. (Emphasis marks added - Ed.)

Is that simple enough for most folks yet?

Evidence that the US is a failed state is piling up faster than I can record it.

One conclusive hallmark of a failed state is that the crooks are inside the government, using government to protect and to advance their private interests.

Another conclusive hallmark is rising income inequality as the insiders manipulate economic policy for their enrichment at the expense of everyone else.

Income inequality in the US is now the most extreme of all countries. The 2008 OECD report, “Business Week reported that a new report from the United Nations Development Program concluded that the US ranked third among states with the worst income inequality. As number one and number two, Hong Kong and Singapore, are both essentially city states, not countries, the US actually has the shame of being the country with the most inequality in the distribution of income.

The stark increase in US income inequality in the 21st century coincides with the offshoring of US jobs, which enriched executives with “performance bonuses” while impoverishing the middle class, and with the rapid rise of unregulated OTC derivatives, which enriched Wall Street and the financial sector at the expense of everyone else.

Millions of Americans have lost their homes and half of their retirement savings while being loaded up with government debt to bail out the banksters who created the derivative crisis.

Frontline’s October 21 broadcast, “The Warning,” documents how Federal Reserve Chairman Alan Greenspan, Treasury Secretary Robert Rubin, Deputy Treasury Secretary Larry Summers, and Securities and Exchange Commission Chairman Arthur Levitt blocked Brooksley Born, head of the Commodity Futures Trading Commission, from performing her statutory duties and regulating OTC derivatives.

After the worst crisis in US financial history struck, just as Brooksley Born said it would, a disgraced Alan Greenspan was summoned out of retirement to explain to Congress his unequivocal assurances that no regulation of derivatives was necessary. Greenspan had even told Congress that regulation of derivatives would be harmful. A pathetic Greenspan had to admit that the free market ideology on which he had relied turned out to have a flaw.

Greenspan may have bet our country on his free market ideology, but does anyone believe that Rubin and Summers were doing anything other than protecting the enormous fraud-based profits that derivatives were bringing Wall Street? As Brooksley Born stressed, OTC derivatives are a “dark market.” There is no transparency. Regulators have no information on them and neither do purchasers. Even after Long Term Capital Management blew up in 1998 and had to be bailed out, Greenspan, Rubin, and Summers stuck to their guns.

Greenspan, Rubin and Summers, and a roped-in gullible Arthur Levitt who now regrets that he was the banksters’ dupe, succeeded in manipulating a totally ignorant Congress into blocking the CFTC from doing its mandated job. Brooksley Born, prevented by the public’s elected representatives from protecting the public, resigned.

Wall Street money simply shoved facts and honest regulators aside, guaranteeing government inaction and the financial crisis that hit in 2008 and continues to plague our economy today.

The financial insiders running the Treasury, White House, and Federal Reserve shifted to taxpayers the cost of the catastrophe that they had created. When the crisis hit, Henry Paulson, appointed by President Bush as Rubin’s replacement as the Goldman Sachs representative running the US Treasury, hyped fear to obtain from “our” representatives in Congress with no questions asked hundreds of billions of taxpayers’ dollars (TARP money) to bail out Goldman Sachs and the other malefactors of unregulated derivatives.

When Goldman Sachs recently announced that it was paying massive six and seven figure bonuses to every employee, public outrage erupted. In defense of banksters, saved with the public’s money, paying themselves bonuses in excess of most people’s life-time earnings, Lord Griffiths, Vice Chairman of Goldman Sachs International, said that the public must learn to “tolerate the inequality as a way to achieve greater prosperity for all.” In other words, “Let them eat cake.”

According to the UN report cited above, Great Britain has the 7th most unequal income distribution in the world.

After the Goldman Sachs bonuses, the British will move up in distinction, perhaps rivaling Israel for the fourth spot in the hierarchy.

Despite the total insanity of unregulated derivatives, the high level of public anger, and Greenspan’s confession to Congress, still nothing has been done to regulate derivatives. One of Rubin’s Assistant Treasury Secretaries, Gary Gensler, has replaced Brooksley Born as head of the CFTC. Larry Summers is the head of President Obama’s National Economic Council. Former Federal Reserve official Timothy Geithner, a Paulson protege, runs the Obama Treasury. A Goldman Sachs vice president, Adam Storch, has been appointed the chief operating officer of the Securities and Exchange Commission. The Banksters are still in charge.

Is there another country in which in full public view so few so blatantly use government for the enrichment of private interests, with a coterie of “free market” economists available to justify plunder on the grounds that “the market knows best”? A narco-state is bad enough. The US surpasses this horror with its financo-state.

As Brooksley Born says, if nothing is done “it’ll happen again.”

But nothing can be done. The crooks have the government.

Suzan

P.S. And what is that about a bomb shelter near the Denver airport being readied to house a new D.C. site? Brrr.

Is this 21st Century SciFi? ________________

7 comments:

Beach Bum said...

Heck yeah the criminals are running the show! Any sane society once it had realized it had establishments "to big to fail" would have quickly moved to break them apart into smaller, more manageable and safe pieces.

I'll go out on a limb and say that if the "Tea Baggers" had a reasonable branch along with reasonable Progressives willing to work with them such an alliance would go a long way to challenging the mega-bankers.

But this anti-socialist versus anti-capitalist tug-of-war does nothing but keep the big boys laughing their asses off as personal fortunes continue to get stashed in secretive offshore bank accounts.

rjs said...

im afraid that as long as the slaves have their bread and circuses, they will continue to toil for the wealthy oligarchy...

Suzan said...

BB, I can't agree about the Tea Baggers mainly because of the decades of reeducation it would take before they realized that "keeping the government's hands off of their Social Security" was the socialism that they all desired but totally misunderstood due to their years-long tutelage at the hands of the fraudulent Professors Limpbaugh, Beck-and-Call, O'Lielly, Savagery, etc.

And

"Bread and Circuses," rjs?

REALITY TV's siren call to the foolish and aggressive!

Would that these people had any real education at all. Other than at the inaccurate but "cheap" TV college of easy money grabbing.

Thanks for your comments.

S

rjs said...

the phrase originates in Satire X of the Roman poet Juvenal. In context, the Latin phrase panis et circenses (bread and circuses) is given as the only remaining cares of a Roman populace which has given up its birthright of political involvement.

Suzan said...

Thanks again for the reference. I'm familiar with it from my high school and college Latin classes.

Have you been to Rome?

If not, go!

It will blow you away.

S

rjs said...

i didnt intend a comeback; it just seemed like you missed my reference...

btw, i dont just spit that kinda stuff out naturally, i did a quick lookup in wiki...

Suzan said...

Nah, I didn't miss it.

Heck, I use it all the time!

Thanks again for the reference.

S