Health, Myths, Fraud and the Crisis

Archive for the ‘The Great Theft’ Category

Brandstifter (Arsonist) Asmussen

 Some will view the appointment of Joerg Asmussen as successor of J. Stark at the ECB as  a blatant mistake, since  in 2006 he assured the German banks that there wont be any unneccessary audits, in other words they should make their balance sheets as non-transparent as possible

“Auch im Koalitionsvertrag schlägt sich die
Bedeutung von ABS nieder;……

Seitens des BMF wird im Umsetzungspro-
zess der Basel II-Regeln für ABS vor allem
auch darauf geachtet werden, dass den Ins-
tituten keine unnötigen Prüf- und Doku-
mentationspflichten entstehen werden….”
 … the Ministry of Finance  will make sure that with the  implementation of the Basel II rules no  unnecessary audits or documentation from the banking institutions will be required …

but I want to point out here that Asmussen is literally a guarantor for another doubling of the gold price …

The original text of the German M of F

Defining Being “Rich” in America

From the AmpedStatus Report:

The graph below, based on data from the Tax Policy Center, shows how much income is earned by a household at any given percentile in income distribution:

The highest bracket for annual income is $50 million or more. Only 74 Americans are in this elite group. The average income within this category was $91.2 million [39] in 2008. As astonishing as that is, in 2009 they averaged $518.8 million [39] each, or about $10 million per week. This means, in the depths of the recession, the richest 74 Americans increased their income by more than 5 times within this one year.

William Domhoff, sociology professor and author of Who Rules America?:

“Unlike those in the lower half of the top 1%, those in the top half and, particularly, top 0.1%, can often borrow for almost nothing, keep profits and production overseas, hold personal assets in tax havens, ride out down markets and economies, and influence legislation in the US. They have access to the very best in accounting firms, tax and other attorneys, numerous consultants, private wealth managers, a network of other wealthy and powerful friends, lucrative business opportunities, and many other benefits. Folks in the top 0.1% come from many backgrounds but it’s infrequent to meet one whose wealth wasn’t acquired through direct or indirect participation in the financial and banking industries…. Most of the serious economic damage the US is struggling with today was done by the top 0.1% and they benefited greatly from it…. For example, in Q1 of 2011, America’s top corporations reported 31% profit growth and a 31% reduction in taxes, the latter due to profit outsourcing to low tax rate countries…. The year 2010 was a record year for compensation on Wall Street, while corporate CEO compensation rose by over 30%.…

In 2010 a dozen major companies, including GE, Verizon, Boeing, Wells Fargo, and Fed Ex paid US tax rates between -0.7% and -9.2%. Production, employment, profits, and taxes have all been outsourced….

I could go on and on, but the bottom line is this: A highly complex and largely discrete set of laws and exemptions from laws has been put in place by those in the uppermost reaches of

the US financial system. It allows them to protect and increase their wealth and significantly affect the US political and legislative processes.

They have real power and real wealth. Ordinary citizens in the bottom 99.9% are largely not aware of these systems, do not understand how they work, are unlikely to participate in them,

and have little likelihood of entering the top 0.5%, much less the top 0.1%….

… the American dream of striking it rich is merely a well-marketed fantasy that keeps the bottom 99.5% hoping for better and prevents social and political instability. The

odds of getting into that top 0.5% are very slim and the door is kept firmly shut by those within it.”

“To get into the top economic 0.01% (one-hundredth of one percent) of the population, you have to have a household income of over $27 million [52] per year.

If you look at some of the central players who caused this economic crisis, you will see that they are among this Economic Elite group.”

Which of course somehow fits to this picture:

Which reminds me of Karl Marx:

At some point capitalism will destroy itself, because you can’t keep shifting income from labor to capital without not having excess-capacity and a lack of aggregate demand.

Michael Hudson: The Stark Choice for Europe .. a must read …

German Logo of the ECB.

Image via Wikipedia

Michael Hudson is a research professor of economics at the University of Missouri, Kansas City and a research associate at the Levy Economics Institute of Bard College.  What Prof. Hudson describes in his essay are partially my thoughts and opinions of a parasitic banking system that slowly absorbs and destroys all the savings that would otherwise be available for productive investments.

The US debt problems are imo not much better than the situation in Greece. If all unfunded liabilities are included the US debt situation is probably worse since almost all 50 states have passed the point of no return. They will never ever be able to get there debt problems under control without a ” debt restructuring” the modern term for partial default.  The US economy is turning down again, unemployment is understated by at least 5%. Among the African-American segment of the population, the not-seasonally adjusted U-3 unemployment rate for May 2011, including both sexes of the age group 16-19 year olds, is 40.6%.  A ticking time bomb that only an Afro-American president can halt, temporarily imo.

The FED ( still ) prints the world’s reserve currency. Once this outrageous privilege is lost, US “debt restructuring” is  inevitable.

Here is the article published on John Mauldin’s Outside the Box with some excerpts as a teaser:

“This prompted EU Fisheries Commissioner Maria Damanaki “to ‘speak openly’ about the dilemma facing her country,” warning: “The scenario of Greece’s exit from the Euro is now on the table, as are ways to do this. Either we agree with our creditors on a programme of tough sacrifices and results … or we return to the drachma. Everything else is of secondary importance.”

“Technological determinists believe that technology drives. If this were so, rising productivity would have made everybody in Europe and the United States wealthy by now, rich enough to be out of debt. But there is a Chicago School inquisition insisting that today’s needless suffering is perfectly natural and even necessary to rescue economies by saving their banks and debt overhead – as if all this is the economic core, not wrapped around the core.

“The upcoming Greek referendum poses this question just as did Iceland’s earlier this spring. As Yves Smith recently commented regarding the ECB’s game of chicken as to whether Greece’s government would accept or reject its hard terms:

This is what debt slavery looks like on a national level. … ”

“Without a common union based on mutual support within a mixed economy – one capable of checking financial aggression – the European Central Bank replaced the military high command. Its bold gamble is whether the Greeks will be as stupid as the Irish, not as smart as the Icelanders.”


Will “God’s worker” end up in court?

I read that Goldman Sachs ( Blankfein : I am doing God’s work ) has received a subpoena from the office of the Manhattan district attorney.

Does this mean that Goldman’s CEO Loyd Blankfein will end up in court? Certainly not, the Obama administration is not called Government Sachs by coincidence. I rather suspect that they will be offered an agreement before any indictments and unlike in the Abacus deal with the SEC GS will have to pay a substantial penalty. This way everybody gets what he wants. The Manhattan district attorney will be promoted, the  Government gets some money in its empty accounts and can claim ” banksters don’t get away with fraud in this country ” and after a while even GS’ reputation will gain  since in the public’s collective mind THEY got punished.

Why is the Federal Reserve forking over $220 million in bailout money to the wives of two Morgan Stanley bigwigs?

If you still have illusions about the elitists in Washington this might help – from Rolling

In August 2009, John Mack, at the time still the CEO of Morgan Stanley, made an interesting life decision. Despite the fact that he was earning the comparatively low salary of just $800,000, and had refused to give himself a bonus in the midst of the financial crisis, Mack decided to buy himself a gorgeous piece of property — a 107-year-old limestone carriage house on the Upper East Side of New York, complete with an indoor 12-car garage, that had just been sold by the prestigious Mellon family for $13.5 million. Either Mack had plenty of cash on hand to close the deal, or he got some help from his wife, Christy, who apparently bought the house with him.  —

It’s hard to imagine a pair of people you would less want to hand a giant welfare check to — yet that’s exactly what the Fed did. Just two months before the Macks bought their fancy carriage house in Manhattan, Christy and her pal Susan launched their investment initiative called Waterfall TALF. Neither seems to have any experience whatsoever in finance, beyond Susan’s penchant for dabbling in thoroughbred racehorses. But with an upfront investment of $15 million, they quickly received $220 million in cash from the Fed, most of which they used to purchase student loans and commercial mortgages. The loans were set up so that Christy and Susan would keep 100 percent of any gains on the deals, while the Fed and the Treasury (read: the taxpayer) would eat 90 percent of the losses. Given out as part of a bailout program ostensibly designed to help ordinary people by kick-starting consumer lending, the deals were a classic heads-I-win, tails-you-lose investment.

More here:

The Real Housewives of Wall Street

Dylan Ratigan – The Great Con Job

and Alan Greenspam was the Con Master :
Dylan Ratigan explains the Con and interviews Bill Fleckenstein and Alan Crayson:
The Great Con

How much longer must poor tax payers bailout rich banksters?

Will Ireland really succumb to the Commission?

In the Irish Bailout negotiations, the European Central Bank and the Commission had vetoed the proposal to force some of the bank losses back onto the bondholders.

On Tuesday Dec 7th the Irish parliament will have to vote on the new budget. If two MPs vote with the opposition,  Ireland might not have a new budget until after the general election in January. It’s a safe assumption that the present government will be ousted in January. I wonder whether the pimps in Brussel in this case have a plan B.

The Irish situation is almost as hopeless as the Greek is. And its easy to understand why Germany was pushing so hard for this “bailout”. German banksters were particularly keen to lose money in the Irish property market.

Mr. Market is betting on the ECB stepping in, otherwise there would not be a market for PIIGS IOUs. Probably Mr. Market is right. However, a closer look at the EU ministers statement suggests Mr. Market should not become too complacent. There might be a hidden landmine in this text:

“For countries considered solvent, on the basis of the debt sustainability analysis conducted by the [European] Commission and the IMF, in liaison with the ECB [European Central Bank], the private sector creditors would be encouraged to maintain their exposure according to international rules and fully in line with the IMF practices. In the unexpected event that a country would appear to be insolvent, the Member State has to negotiate a comprehensive restructuring plan with its private sector creditors, in line with IMF practices with a view to restoring debt sustainability. If debt sustainability can be reached through these measures, the ESM [European Stability Mechanism] may provide liquidity assistance.”

and then :“On this basis, the Eurogroup Ministers will take a unanimous decision on providing assistance.”

In plain English every member can veto the next bailout if a country is declared to be just illiquid!

Hopefully Mr. Market hasn’t noticed yet and the Irish will pass a budget that meets the demands  of the Commission.

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