"Deficit Scare" Terrifies Markets? They've Got To Study Economics (Or Politicians) Blackrock Unveiled & Ghost Towns Springing Up All Over

Stephen Herron over at Drinking Liberally has his eye on the "deficit scare" ball if anyone does. And it begins to look like a pretty . . . good . . . ruse. But for whom? Or what? You decide.

Markets screeched in horror at the mere mention of conservative ideas like tax cuts, a GOP "free market" and glibertarian favorite stump speech talking point that should be laid to rest permanently:

For the past several months, we've been told by various Serious People that European governments were being punished by markets for being too lavish on social spending, despite bond rates being at record lows (other than in peripheral countries subject to more specific attacks) - or would be punished if they didn't "reform" and lower taxes. The same has been promoted in the US, via the Catfood Commission and the whole noise machine against deficits and stimulus packages . . . . Well, the US government did just what the Serious People wanted, with a nice fat tax cut for the rich, and bond rates jumped - i.e., markets actually literally hated the measures, selling off US bonds violently.

Bwahahaha! RIP conservative tax cut kool-aid.

Considering al Qaeda's stated goals of destroying America economically . . . . This kind of puts the conservative ideology of never-ending tax cuts firmly in the arsenal of a terrorist's financial Weapons of Mass Destruction (right up there with Credit Derivatives and Credit Default swaps) and those that support them . . . . Well? In the words of an American idiot, "if you aren't with us, yer against us."

Simply irresistible? That adorable historian Neil Garfield at Living Lies (and why is he so adorable? Just take a look at his marvelous public service blog.) gives us just about all the information we can stand to provide painful insight into what's really been going on with the Fed and the institutions which decided the public was so stoooooopid that they could do just about anything they wanted to (and never be outed) and not be punished if, mercy, they were. Brace yerselves. (Emphasis marks added - Ed.)

Blackrock and Fed Conflict of Interest

It occurs to me, reading the comments, that there is a general lack of knowledge as to the identity of the Federal Reserve. I thought people knew, but it is obvious that most people don’t know — including the media and the politicians and pundits. In a nutshell the Federal Reserve System IS a series of privately owned banks controlled by Wall Street — but regulated to a small degree by the Federal Government. It was created as a compromise between government (Roosevelt, Taft and Wilson Administrations) and JP Morgan (the person) and his first lieutenant, Strong, to exercise the same powers that Biddle used 100 years before when the Second Bank of the United States was used as a political player. Now there would be SOME restrictions, like the President naming the Chairman of the Federal Reserve System.

It is not a conspiracy theory from people needing medication. The Federal Reserve System is the lender of last resort and it IS owned and controlled (2/3) by private banks and individuals. The remaining directors are appointed by the President of the United States. But once they are in, they cannot easily be removed. The idea was and is a good one but typically for Wall Street they used it as a backstop for the bubble leading up to the 1929 crash, at which time Strong, the first Fed Chairman, had been dead two years with no successor appointed. While Teddy Roosevelt went a long way toward busting up the large “trusts” it was FDR that completed the job and decentralized banking for decades, preventing Wall Street from controlling our political affairs until the 1980′s. After getting a 50+ year rest from large banks sucking our lifeblood out, and unparalleled prosperity for most of the country, they managed to re-sell the idea that big was better and repealed, one by one, the various restrictions that had kept banks in check. It is time, historically speaking, to let the pendulum swing the other way and get another 50+ year rest from these guys.

And filling in a few more interstices, we learn the following startling facts (although not to everyone, of course):

BlackRock

“The Federal Retirement Thrift Investment Board currently contracts BlackRock Institutional Trust Company, N.A. (BlackRock) to manage the F, C, S, and I Fund assets.

The Board invests the assets of the F, C, S, and I Funds in commingled trust funds managed by BlackRock. These trust funds are comprised of investments by tax-exempt institutions like the TSP, such as pension plans and endowments. Investing collectively in this way can be advantageous because it reduces trading costs. The securities held in these commingled funds are held in trust and they are not assets of BlackRock, nor can they be used to meet the financial obligations of BlackRock.”

https://www.tsp.gov/investmentfunds/fundsoverview/fundManagement.shtml

Thrifts Savings Plan (TSP)

“SUBCHAPTER III—THRIFT SAVINGS PLAN”

“5 U.S.C. § 8438 Investment of Thrift Savings Fund”

“5 U.S.C. § 8440a Justices and judges”

“5 U.S.C. § 8440b Bankruptcy judges and magistrate judges”

http://www.law.cornell.edu/uscode/5/usc_sup_01_5_10_III_20_G_30_84_40_III.html

Pacific Investment Management Co. (PIMCO)

Serves as a Financial Investment Advisor to the TSP

And we all know (or would know if it was said more loudly and clearly) that the FED has a conflict of interest because, Hey they (w)rit(e) regulations for TILA.

I'm still chuckling at the misuse of the word "comprise." Other than that? Not that amusing. (Please don't forget to read the comments are they are also eye opening.) Want to read more of Neil's reporting and find out what you can do to stop this nonsense? I know I do. One quote should suffice to pique your interest: "Banks and drug cartels have paralyzed lawmaking." (Emphasis marks added - Ed.)

Why Are Most Federal and State Regulatory Agencies Sitting On Their Hands?

FOR THREE YEARS WE HAVE BEEN TRACKING THOUSANDS OF COMPLAINTS SENT TO THE FEDERAL RESERVE, OFFICE OF THE CONTROLLER OF THE CURRENCY, OFFICE OF THRIFT SUPERVISION, FDIC, AND STATE BANKING AND BUSINESS REGULATORS RELATING TO SPECIFIC MATTERS THAT ARE IN THEIR CHARTER FOR WHICH THEY ARE EMPOWERED AND FUNDED TO INVESTIGATE AND CAUSE DISCIPLINE TO OCCUR WITH RESPECT TO ANY INSTITUTION WITHIN ITS SCOPE OF AUTHORITY THAT COMMITS VIOLATIONS. THE RESULT? NOT ONE LETTER OR ACTION OTHER THAN AN ACKNOWLEDGMENT OF RECEIPT. This is why I am leading the charge to pepper the licensing agencies with legitimate complaints of abuses and violations that led to problems for borrowers, homeowners and even lenders. These agencies were created with one prime directive: protect the public. Instead, many of them send letters like the experience reported below. But many agencies are starting to respond. There are notaries whose licensees have been revoked, mortgage brokers whose licenses have been revoked and so on. What should happen is that bank charters should be revoked and lenders masquerading as banks should be prosecuted just like people who practice law without a license. I also think that the mega and regional banks who were the puppeteers behind this mortgage mess should be subjected to an order to cease and desist from (a) doing any business within a state where they pretend to be lender but were in fact acting as unlicensed mortgage brokers or unlicensed securities brokers (b) AND TO CEASE AND DESIST, in accordance with existing state law, from either prosecuting or defending any action for failure to register properly as a foreign corporation doing business in the state. Use your Qualified Written request and Your Debt Validation Letter as templates to create the complaint letter. In most cases, the agency has a form that you can fill out and then attach the letter. My suggestion is that in each case you send a copy of your complaint to the appropriate agencies. They are not hard to find and many of them are listed on this blog under “People, places” etc. And just a heads up — I have received UNCONFIRMED reports, that scam artists are picking up revoked or expired licenses and even bank charters and taking “deposits” or fees from people who are either in trouble or just gullible thinking they are dealing with a new bank. I’m reporting before confirmation because it makes sense in this environment and if anyone is about to do a deal with a bank or or other company, make sure they are actually a licensed operation and that their address is in the official records of the state.

GHOST TOWNS CREATED BY WALL STREET — A GROWING MENACE

Starting in 2008 I began a series of interviews off the record with local and state officials in over a dozen states. They don’t want the locations disclosed because it would be open invitation for things to get worse if that is possible. The net result is that even in our own country the number of ghost towns with brand new construction is astonishing. My estimate is that in Arizona alone the number of communities where the houses are more than 90% vacant is growing rapidly with dire consequences. My estimate is that there are at least 15,000 homes that fall into this category, many of them stripped beyond repair, some of them used as gang headquarters, and serving as the basis for the creation of a shadow society where no person would dare tread — including police.

Thank you, Neil! Suzan _______________