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The Giant Banks, Federal Reserve and Treasury Have All Blackmailed America
As I wrote last October:
Congressmen Brad Sherman and Paul Kanjorski and Senator James Inhofe all say that the government warned of martial law if Tarp wasn't passed. And Rahm Emanuel famously said:
Never let a serious crisis go to waste. What I mean by that is it's an opportunity to do things you couldn't do before.
Last year:
- Senator Leahy said "If we learned anything from 9/11, the biggest mistake is to pass anything they ask for just because it's an emergency"
- The New York Times wrote:
"The
rescue is being sold as a must-have emergency measure by an
administration with a controversial record when it comes to asking
Congress for special authority in time of duress."***
Mr.
Paulson has argued that the powers he seeks are necessary to chase away
the wolf howling at the door: a potentially swift shredding of the
American financial system. That would be catastrophic for everyone, he
argues, not only banks, but also ordinary Americans who depend on their
finances to buy homes and cars, and to pay for college.Some are
suspicious of Mr. Paulson’s characterizations, finding in his warnings
and demands for extraordinary powers a parallel with the way the Bush
administration gained authority for the war in Iraq. Then, the White
House suggested that mushroom clouds could accompany Congress’s failure
to act. This time, it is financial Armageddon supposedly on the
doorstep.“This is scare tactics to try to do something that’s in
the private but not the public interest,” said Allan Meltzer, a former
economic adviser to President Reagan, and an expert on monetary policy
at the Carnegie Mellon Tepper School of Business. “It’s terrible.”Not Just Government
But it's not just government . . .
If
the too big to fails say that the world economy will crash and there
will be martial law unless they are bailed out, politicians - most of
whom don't understand finance or economics - will believe them, and
sound the alarm themselves.
As Karl Denninger wrote yesterday:
[S]ounds like "Bail me out or I will crash everything."
Isn't
that analagous to walking into a bank, opening one's coat to reveal an
explosives-laced belt, and saying "gimme all the money or everyone
dies!"
I noted in November:
In
the 1974 comedy Blazing Saddles, Cleavon Little plays the new sheriff
in an old Western town. The sheriff is African-American, and when he
rides into town for the first time, the [racist] townspeople pull out
their guns and are about to shoot him.
But he quickly puts a gun
to his own head, pretends he's scared of his own gun, and says "BACK
OFF OR THE AFRICAN-AMERICAN GUY GETS IT!!!" The townspeople are dumb
and fall for it, suddenly terrified that he'll kill himself. Here's the
scene.
That's what Wall Street is doing with the bailout.
The
fat cats on Wall Street are saying "give us a lot of money, and buy all
of our bad debt for a lot more than its worth, or Wall Street will get
it and we'll go into a depression!"
Are Americans stupid enough to fall for it?
In a recent interview, William K. Black uses the exact same Blazing Saddles sheriff-bank analogy.
Miles Kendig has a different - but parallel - analogy for the giant banks:
In
essence, what we have here folks is a characterization of the banks and
the government that has assumed the risk profile of these banks as some
sort of 1,000 pound men, unable to move without assistance. They have
suckered everyone else into the idea that if anything is done to move
these overweight, unhealthy "persons" to health they will have a heart
attack and kill us all since they sit upon the crossroads of commerce
and have sold most folks the idea that they are the heart of the nation
and indeed the world. Given these "objective" circumstance the
government is not only beholden to the 1,000 pound persons, but is one
of them itself, will do everything to make the rest of us carry them so
as to save them the indignity of actually addressing their morbid
obesity and the cycle of codependency that enables them all to remain
so fat.Any way you look at it, the too big to fails are not needed and they are dragging our economy into a black hole. Like the sheriff in Blazing Saddles or Kendig's 1,000 pound men, they are playing us for fools.
[Yves Smith] shared another analogy with me: a
man with 15lbs. of Semtex strapped to his waist. She says "any surprise
people in the vicinity are very attentive to his desires?"
As Bloomberg notes today:
The vote was another victory for the Fed, which months ago faced one of
the biggest challenges to its power and independence in its 96- year
history as lawmakers responded to public anger over bailouts of Wall
Street firms. The amendment Ensign supported was included in the
financial regulatory bill the Senate approved yesterday.
“The Fed’s
authorities seemed to be under serious threat,” said David Nason, a
former assistant U.S. Treasury secretary who’s now a managing director
at Promontory Financial Group LLC, a Washington-based consulting firm.
Instead, the Fed “appears to have regained its footing and now appears
to be emerging with at least as much authority and likely more.”
***
The
Senate bill contains most of what Fed officials sought. In addition to
preserving their bank-supervisory powers, it maintains a ban on
congressional audits of interest-rate decisions that some lawmakers had
sought to strip away.
***
The outcome
puts Fed Chairman Ben S. Bernanke in a stronger position to withdraw
record monetary stimulus as the economy recovers ...
And Tyler Durden provides details of how the Fed blackmailed Congress into expanding the Fed's powers:
A
reader provides us with the following letter he received from Senator
Mikulski in response to dissatisfaction expressed about Bernanke's
reconfirmation. The response from the Senator demonstrates [that the
Fed is pressuring] gullible and incompetent senators ... to pass law
after law that is only in the Fed's, and thus Wall Street's interests,
as the alternative would always be a "market nose dive" ....Thank
you for getting in touch with me about Ben Bernanke's nomination to
chair the Federal Reserve. It's great to hear from you.***
I
was advised that rejecting his nomination would cause markets to nose
dive, which would hurt retirees and families saving for their future. I
am not enthusiastic in my support. But I think Mr. Bernanke understands the job that he still has to do.***
Sincerely,
Barbara A. Mikulski
United States SenatorAnd for the counterpoint, here is an example of a Senator who does not fall for the Fed's racket:
Dear Friend:
Thank
you for contacting me. I appreciate hearing your thoughts about
President Obama's decision to nominate Ben Bernanke for another
four-year term as Chairman of the Federal Reserve (the Fed). I voted
against approving Mr. Bernanke, who was nevertheless confirmed by the
Senate by a vote of 70-30.***
While I have heard
the concerns of many that the failure to confirm Mr. Bernanke would
have damaged the financial markets and jeopardized our economy
recovery, I do not believe that anyone, including Mr. Bernanke, is too
big to be replaced. We
should not hold our economy hostage to the Wall Street threat that
total economic collapse is the sure result of not doing everything they
want.Thanks again for contacting me. Please do not hesitate to do so again about this or any other issue that may concern you.
Sincerely,
Tom Harkin
United States Senator
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Submitted by George Washington on 05/22/2010 12:52 -0500Not true George... the Banks bought and paid for an outcome... The Banks / Financial / Lobbists own the Whores that we all voted into office...
CAREER PROFILE (SINCE 1989)
Top Industries
John McCain
Sector
Total
PACs
Indivs
Construction
$6,138,332
$178,569
$5,959,763
Finance, Insurance & Real Estate
$33,674,662
$766,772
$32,907,890
Lawyers & Lobbyists
$13,290,215
$331,908
$12,958,307
Misc Business
$18,835,293
$548,493
$18,286,800
Labor
$200,950
$176,950
$24,000
Ideological/Single-Issue
$11,404,685
$945,287
$10,459,398
Other
$42,418,662
$8,400
$42,410,262
McSame is in their pockets for $155,000,000.00 Plus Dollars... Dud is only in their pockets for $48,000,000.00 plus dollars…
Please see who owns the Whore you Voted into office from Your State here… http://www.opensecrets.org/index.php
Sen. Chris Dodd is retiring at the end of the 111th Congress
Career Fundraising 1989 - 2010
Total Receipts: $48,528,008
(or $2.3 million a year not including his pay check, which is only $100k(ish) a year... so we the people pay him $100k and his master(s) pay him 23 times that amount ($2.3 Million), annually... but Lobbying is Legal, but bribery isn’t? Why can’t I lobby my way out of a speeding ticket? O yeah! I can by supporting the Judge (for re-election), but not the Police Officer... so the further up the ladder you go the more the Bribery is ok, just not for the common folks... it’s to, too difficult for us to get our head around, we ain’t that smart to be able to understand such complex issues.)
1989 - 2010
Total Spent: $48,570,877
Debts: $335,361
Last Report: Wednesday, March 31, 2010
http://www.opensecrets.org/politicians/summary.php?cid=N00000581&cycle=Career
Top 5 Contributors, 1989 – 2010 Contributor *Total* “Individuals” (PACs)
Citigroup Inc *$427,694* “$381,694” ($46,000)
United Technologies *$387,900* “$352,700” ($35,200)
Bear Stearns *$347,350* “$337,350” ($10,000)
ActBlue *$303,150* “$303,150” ($0)
American International Group *$285,238* “$242,618” ($42,620)
&........
Top 5 Industries, 1989 – 2010 Industry *Total* “Individuals” (PACs)
Securities & Investment *$6,221,307* “$5,455,317” ($765,990)
Lawyers/Law Firms *$3,218,475* “$2,761,631” ($456,844)
Insurance *$2,431,646* “$1,395,775” ($1,035,871)
Real Estate *$2,041,073* “$1,719,067” ($322,006)
Commercial Banks *$1,333,463* “$918,044” ($415,419)
The lobby pays more than his pay check... it is the money used to buy ad time in his home state so that he can smile pretty and dance for the dumbass locals who don't know any better... This picture is repeated, over and over again in our Federal Government. These people are bought and paid for whores; they are willing to do whatever is needed to have the ability to raise Cash so that they can stay in office. No matter who gets Voted in, the Lobby will get to them because at some point the other guy running against them will use Lobby monies for Air Time and that means the other guy wins. Everyone is doing it, how can someone not...
Best question? How can a real person, not a Lobby Money Whore... win against a Money Machine? A real person cannot. Money equals the Air Time needed, it equals the Bought and Paid for Dirt on the other guy and it equals pay offs or whatever is needed to keep the scumbag in the race.
Until the lobby monies are stopped… nothing will change.
Your Vote, for whomever does not fund the campaign needs of your elected official.
An income 23 times larger than your pay check will affect how you think and act and dare I say vote.
That's why election reform has to be the number one issue going forward. But there were Congressmen and women who weren't bought and who spoke the truth at the risk of being outspent when they were up for re-election. There are heroes and we have to encourage them. Feingold. Cantwell. Several others.
TARP didn't pass, at first. Remember that. It was stopped by House Republicans and a brave Democrats. Then it was loaded up by the lackeys in the Senate with enough pork to feed Caesar's army. They bought off their opposition in the House.
Like they are going to institute term limits on themselves?
Ha!
Can you say, "fascism"? I knew you could.
Thanks for the stats, JW.
well said, george....the activities of the banksters are just like the october putsch and the burning of the reichstag in germany.....the sociopath banksters are hitler's heirs.....
indeed the cia imported vast hordes of nazis to amerika after ww2 in order establish the 4th reich...
unless these people are put in prison or are killed we will be their slaves....it is a matter of life and death to the american people....the american republic is dead....
barry soetoro is an indonesian citizen these sociopathic frat boys put in power to do their bidding....
www.obamacrimes.com
You make everyone here look bad becuase of the stupid shit you type you fucking idiot!
TARP ='s Bush stupid... Obama was a BlackHat Operator for any number of Federal Agencies, think tanks... top secret think tanks... Obama was vetted prior to those meetings by people who do have a clue, unlike your dumbass.
Maybe thats why you are here? make us all look bad?
Dude, put the Bong down... Obama is a Lobby Whore just like the rest of them... but that is worse than him being from the planet Mars... not that you are smart enough to figure that out on your own.
You seem to be doing a pretty good job of it all on your own, JW. Pot/kettle thingy.
The guy says the President is from Mars... the Planet Mars... Becuase the NSA, CIA and FBI want a commie liberal in the White House... the Maff he is using (sorry for the copy right infringment "Maff", Great name by the buy!) adds up to the same numbers either way... this planet or any other...
What the guy needs is... http://zapatopi.net/afdb/ and / or http://www.stopabductions.com/...
I can see how the my sourced and sited un-popular facts are equal to him and his thoughts on Obama being from Mars... sure. Maybe you need and aluminum foil hat / beannie / helmet as well?
So . . Ben Bernanke is Cleavon Little in Blazing Saddles?
--Damn. Just saw that it was used half way down. It's so apt.
But, I don't think Harkin was standing on principle, at least not the one you might think. He's simply against any manifestation of business. It's his particular left wing shtick.
It was my first thought too when I saw the story. Great analogy but what is happening to U.S. taxpayers is not in the least bit funny.
How many times can you put up with being punched in the stomach?
I can think of more than one Wall Street banker I'd like to see go quail hunting with Dick Cheney.
Barbara A. Mikulski is not that stupid. No. Being stupid, she would not be able to have such a wonderful life becoming a US Senator for-life.
She knows & rightfully thinks that American people are stupid fools who did and will buy her (and her Congressional boddies) BS.
Finally, her WallStreet puppeteers have already instructed her how to vote and what to say.
PS
People, you are pathetic to go for such BS.
As for a Martial Law, there are nobody to enforce it in America. Presently, nothing is enforceable in America. Just nothing.
A Long Hot Summer Coming
"At this point, damage-control means pillorying the perpetrators: bringing them to book and extracting statements of contrition. This is why the psychological impact of financial regulation is almost as critical as its institutional prophylactics. Those who lobby against it risk jeopardising their own long-term interests. Should governments fail to reassert the integrity of public stewardship, suspicions will emerge that, for all the talk of new beginnings, the perps and new regime are cut from common cloth. Both risk being shredded by popular ire or outbid by more dangerous tribunes of indignation."
http://www.ft.com/cms/s/0/4526d52c-6506-11df-b648-00144feab49a.html