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The Government Has It Bass-Ackwards: Failing To Prosecute Criminal Fraud by the Big Banks Is Killing – NOT Saving – the Economy

George Washington's picture




 

U.S. Attorney General Eric Holder said today:

I am concerned that the size of some of these institutions [banks] becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy

As we’ve repeatedly noted, this is wholly untrue.

If the big banks were important to the economy, would so many  prominent economists, financial experts and bankers be calling for them to be broken up?

If the big banks generated prosperity for the economy, would they have to be virtually 100% subsidized to keep them afloat?

If the big banks were helpful for an economic recovery, would they be prolonging our economic instability?

In fact, failing to prosecute criminal fraud has been destabilizing the economy since at least 2007 … and will cause huge crashes in the future.

After all, the main driver of economic growth is a strong rule of law.

Nobel prize winning economist Joseph Stiglitz says that we have to prosecute fraud or else the economy won’t recover:

The legal system is supposed to be the codification of our norms and beliefs, things that we need to make our system work. If the legal system is seen as exploitative, then confidence in our whole system starts eroding. And that’s really the problem that’s going on.

 

***

I think we ought to go do what we did in the S&L [crisis] and actually put many of these guys in prison. Absolutely. These are not just white-collar crimes or little accidents. There were victims. That’s the point. There were victims all over the world.

 

***

 

Economists focus on the whole notion of incentives. People have an incentive sometimes to behave badly, because they can make more money if they can cheat. If our economic system is going to work then we have to make sure that what they gain when they cheat is offset by a system of penalties.

Nobel prize winning economist George Akerlof has demonstrated that failure to punish white collar criminals – and instead bailing them out- creates incentives for more economic crimes and further destruction of the economy in the future.

Indeed, professor of law and economics (and chief S&L prosecutor) William Black notes that we’ve known of this dynamic for “hundreds of years”. And see this, this, this and this.

(Review of the data on accounting fraud confirms that fraud goes up as criminal prosecutions go down.)

The Director of the Securities and Exchange Commission’s enforcement division told Congress:

Recovery from the fallout of the financial crisis requires important efforts on various fronts, and vigorous enforcement is an essential component, as aggressive and even-handed enforcement will meet the public’s fair expectation that those whose violations of the law caused severe loss and hardship will be held accountable. And vigorous law enforcement efforts will help vindicate the principles that are fundamental to the fair and proper functioning of our markets: that no one should have an unjust advantage in our markets; that investors have a right to disclosure that complies with the federal securities laws; and that there is a level playing field for all investors.

Paul Zak (Professor of Economics and Department Chair, as well as the founding Director of the Center for Neuroeconomics Studies at Claremont Graduate University, Professor of Neurology at Loma Linda University Medical Center, and a senior researcher at UCLA) and Stephen Knack (a Lead Economist in the World Bank’s Research Department and Public Sector Governance Department) wrote a paper called Trust and Growth, showing that enforcing the rule of law – i.e. prosecuting white collar fraud – is necessary for a healthy economy.

One of the leading business schools in America – the Wharton School of Business – published an essay by a psychologist on the causes and solutions to the economic crisis. Wharton points out that restoring trust is the key to recovery, and that trust cannot be restored until wrongdoers are held accountable:

According to David M. Sachs, a training and supervision analyst at the Psychoanalytic Center of Philadelphia, the crisis today is not one of confidence, but one of trust. “Abusive financial practices were unchecked by personal moral controls that prohibit individual criminal behavior, as in the case of [Bernard] Madoff, and by complex financial manipulations, as in the case of AIG.” The public, expecting to be protected from such abuse, has suffered a trauma of loss similar to that after 9/11. “Normal expectations of what is safe and dependable were abruptly shattered,” Sachs noted. “As is typical of post-traumatic states, planning for the future could not be based on old assumptions about what is safe and what is dangerous. A radical reversal of how to be gratified occurred.”

 

People now feel more gratified saving money than spending it, Sachs suggested. They have trouble trusting promises from the government because they feel the government has let them down.

 

He framed his argument with a fictional patient named Betty Q. Public, a librarian with two teenage children and a husband, John, who had recently lost his job. “She felt betrayed because she and her husband had invested conservatively and were double-crossed by dishonest, greedy businessmen, and now she distrusted the government that had failed to protect them from corporate dishonesty. Not only that, but she had little trust in things turning around soon enough to enable her and her husband to accomplish their previous goals.

 

“By no means a sophisticated economist, she knew … that some people had become fantastically wealthy by misusing other people’s money — hers included,” Sachs said. “In short, John and Betty had done everything right and were being punished, while the dishonest people were going unpunished.”

 

Helping an individual recover from a traumatic experience provides a useful analogy for understanding how to help the economy recover from its own traumatic experience, Sachs pointed out. The public will need to “hold the perpetrators of the economic disaster responsible and take what actions they can to prevent them from harming the economy again.” In addition, the public will have to see proof that government and business leaders can behave responsibly before they will trust them again, he argued.

Note that Sachs urges “hold[ing] the perpetrators of the economic disaster responsible.” In other words, just “looking forward” and promising to do things differently isn’t enough.

Robert Shiller – one of the top housing experts in the United States – says that the mortgage fraud is a lot like the fraud which occurred during the Great Depression. As Fortune notes:

Shiller said the danger of foreclosuregate — the scandal in which it has come to light that the biggest banks have routinely mishandled homeownership documents, putting the legality of foreclosures and related sales in doubt — is a replay of the 1930s, when Americans lost faith that institutions such as business and government were dealing fairly.

Indeed, it is beyond dispute that bank fraud was one of the main causes of the Great Depression.

Economist James K. Galbraith wrote in the introduction to his father, John Kenneth Galbraith’s, definitive study of the Great Depression, The Great Crash, 1929:

The main relevance of The Great Crash, 1929 to the great crisis of 2008 is surely here. In both cases, the government knew what it should do. Both times, it declined to do it. In the summer of 1929 a few stern words from on high, a rise in the discount rate, a tough investigation into the pyramid schemes of the day, and the house of cards on Wall Street would have tumbled before its fall destroyed the whole economy.

 

In 2004, the FBI warned publicly of “an epidemic of mortgage fraud.” But the government did nothing, and less than nothing, delivering instead low interest rates, deregulation and clear signals that laws would not be enforced. The signals were not subtle: on one occasion the director of the Office of Thrift Supervision came to a conference with copies of the Federal Register and a chainsaw. There followed every manner of scheme to fleece the unsuspecting ….

 

This was fraud, perpetrated in the first instance by the government on the population, and by the rich on the poor.

 

***

 

The government that permits this to happen is complicit in a vast crime.

Galbraith also says:

There will have to be full-scale investigation and cleaning up of the residue of that, before you can have, I think, a return of confidence in the financial sector. And that’s a process which needs to get underway.

Galbraith recently said that “at the root of the crisis we find the largest financial swindle in world history”, where “counterfeit” mortgages were “laundered” by the banks.

As he has repeatedly noted, the economy will not recover until the perpetrators of the frauds which caused our current economic crisis are held accountable, so that trust can be restored. See this, this and this.

No wonder Galbraith has said economists should move into the background, and “criminologists to the forefront.”

The bottom line is that the government has it exactly backwards.   By failing to prosecute criminal fraud, the government  is destabilizing the economy … and ensuring future crashes.

Postscript:  Unfortunately, the government made it official policy not to prosecute fraud, even though criminal fraud is the main business model adopted by the giant banks.

Indeed, the government has done everything it can to cover up fraud, and has been actively encouraging criminal fraud and attacking those trying to blow the whistle.

 

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Thu, 03/07/2013 - 03:03 | 3307930 snblitz
snblitz's picture

With a nod to notquantumdum

Robert Heinlein:

    Throughout history, poverty is the normal condition of man. Advances
    which permit this norm to be exceeded — here and there, now and then
    — are the work of an extremely small minority, frequently despised,
    often condemned, and almost always opposed by all right-thinking
    people. Whenever this tiny minority is kept from creating, or (as
    sometimes happens) is driven out of a society, the people then slip
    back into abject poverty.

    This is known as “bad luck.”

Thu, 03/07/2013 - 02:17 | 3307881 anonnn
anonnn's picture

 omit

Thu, 03/07/2013 - 01:13 | 3307793 IamtheREALmario
IamtheREALmario's picture

Ya know George ... I listened to the whole damn thing tonight and it put so much of this in the proper perspective...

http://www.bing.com/videos/search?q=myron+fagan+illuminati&mid=91D6FD485383CB8EDB4B91D6FD485383CB8EDB4B&view=detail&FORM=VIRE1

We are coming to the "planned" endgame ... there can be no doubt.

Thu, 03/07/2013 - 01:00 | 3307765 mendigo
mendigo's picture

Problem is we are all too busy trying to "make" money- there's no time to do anything productive.

Thu, 03/07/2013 - 00:44 | 3307727 NoClueSneaker
NoClueSneaker's picture

1MM bounty on the heads of Morgue or GS would do the job.

Fund raisers anywhere ?

Wed, 03/06/2013 - 23:18 | 3307496 Mediocritas
Mediocritas's picture

Using an analogy, what Eric Holder is basically saying is:

"I am concerned that the size of some of these tumors becomes so large that it does become difficult for us to remove them when we are hit with indications that if you do start surgery, if you do bring a scalpel to the tissue, it will have a negative impact on the patient's bank account, perhaps even the whole family's bank account".

OK Eric, don't operate then, let the cancer keep metastasizing, let the tumors keep growing, because letting the patient die is surely a better option than temporarily hospitalizing the patient and costing them some money.

Using an analogy, that a person is to a nation as a cell is to a human body, then Eric Holder is, quite obviously, a metastatic cancer cell. Unfortunately, the human immune system doesn't appear to be functioning properly and the cancer is spreading.

Wed, 03/06/2013 - 23:18 | 3307507 Westcoastliberal
Westcoastliberal's picture

Great analogy! And I do mean "anal".

Wed, 03/06/2013 - 23:13 | 3307493 Westcoastliberal
Westcoastliberal's picture

"The government that permits this to happen is complicit in a vast crime."

That pretty much sums it up, doesn't it?  Started with Reagan & then the PNAC boys took over in 2000.  We've been screwed ever since.  I think this is all coming to a head, how 'bout you?

Wed, 03/06/2013 - 23:12 | 3307486 honestann
honestann's picture

The predators-that-be want to destroy the economy.  That is part of their plan, to remove resources from the population that might be applied to self-defense against the predators (most of "the rich").  The predators-that-be are implementing "full spectrum dominance"... on their own citizens (eh, I mean slaves).

Wed, 03/06/2013 - 23:03 | 3307454 Neo1
Neo1's picture

Use federal reserve notes and incur an Irrecusable obligation.

Wed, 03/06/2013 - 21:56 | 3307215 Vendetta
Vendetta's picture

Holder is wating for all the big money power to extract all the wealth they can suck out of the US and then after the big money power has made their escape to China or similar location, they'll burn the economy to the ground.  We'll be begging for a pair of underwear because we don't even make that in the US anymore.

Wed, 03/06/2013 - 21:25 | 3307082 orez65
orez65's picture

Truly unbelievable, the second highest legal official of the US, after the President, stating that he will not prosecute the elite for fraud!

What about for murder? Would that hurt the economy?

We've become a "banana republic with nukes".

Wed, 03/06/2013 - 21:40 | 3307154 Go Tribe
Go Tribe's picture

Failing to prosecute crimes invites vigilantism. Is that what they want?

Wed, 03/06/2013 - 23:28 | 3307530 Stoploss
Stoploss's picture

I respectfully submit the gvernment does not have it ass backwards, as failing to prosecute financial fraud, plays a key role in weakening the gen pop, during the implementation of Marxist Socialism.  Salvador Allende..  This is Obozo's playbook i think.

Start with this.

https://en.wikipedia.org/wiki/Salvador_Allende

Wed, 03/06/2013 - 23:41 | 3307571 notquantumdum
notquantumdum's picture

Marxism socialism, cronyistic fascism, it's all so much the same sometimes isn't it?

Either we really have decently well-regulated “free markets” or we have “state planning”, right? (I mean well-regulated and not more-regulated.)

I view politics as being a circle and not a line, where Anarchy is at one pole, Dictatorship is at the opposite.  And, Liberal and Conservative thinking dominate the other two opposite quadrants of the circle.  Am I crazy?

Wed, 03/06/2013 - 21:46 | 3307174 notquantumdum
notquantumdum's picture

nor, Republic.

Wed, 03/06/2013 - 21:51 | 3307196 notquantumdum
notquantumdum's picture

or, not?

Wed, 03/06/2013 - 21:49 | 3307186 George Washington
George Washington's picture

... "if you can keep it".

We couldn't ...

Wed, 03/06/2013 - 21:54 | 3307210 notquantumdum
notquantumdum's picture

I'd like to think there's still hope, but perhaps that is delusion.

Wed, 03/06/2013 - 20:58 | 3306974 nmewn
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"I am concerned that the size of some of these institutions [banks] becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy"

Could someone please advise Mr.Holder as to what his day job really is and what it entails? Or demand he resign.

Thanks.

Thu, 03/07/2013 - 00:42 | 3307722 mendigo
mendigo's picture

Exactly!
I am pretty sure he just anounced that , hypothetically (since clearly there has Ben no legal action) if he were to attempt to do his job it would be kind of hard and he is afraid he might not succeed.
Are you sure you want to stick with that line a reasoning.
Has my vote as laziest most ignorant bureacrat of like forever - they should engrave that on a bronze plaque to be afixed to tje Lincoln memerial.
What an asshole

Wed, 03/06/2013 - 21:48 | 3307185 Vendetta
Vendetta's picture

He knows what his job is, he refuses to do it.  Armando Falcon, former director of the Office of Federal Housing Enterprise Oversight warned the Senate finance committee (Shelby and some other corrupt fuck) of a potential systemic crisis in the housing markets in 2003 and 2004.  Then Falcon got fired (rumor at the time was Goldmonkey Sucks told the WH to can him) and was replaced by a see-no-evil-hear-no-evil lackey.  The rest, as they say, is history.

Wed, 03/06/2013 - 22:44 | 3307386 nmewn
nmewn's picture

You sir, have an excellent memory. Armando Falcon told them exactly what was going to happen and it did. He took the slings & arrows of incompetent congresscritters and told them the truth.

Wherever he is now, he did all he could do...they didn't want to hear it...socio-economics at its finest, all it requires is sticking the fingers in both ears while yelling LALALALALALALA...lol.

Wed, 03/06/2013 - 23:17 | 3307504 Westcoastliberal
Westcoastliberal's picture

Brooksley Born saw this crap coming with the LTCM blowout and look what they did to her?  Brutally railroaded up the ass.  Thanks Mr. Greenspan!

Wed, 03/06/2013 - 20:55 | 3306961 HowardBeale
HowardBeale's picture

One reaches the point where the only thing one wants to hear is the sound of gunfire in the service of ridding the nation of elite criminals. That is the sweet sound of justice. This will end badly for all, and with a bullet, noose, or chainsaw for some...

Wed, 03/06/2013 - 21:07 | 3307008 notquantumdum
notquantumdum's picture

Fraud is as old as human nature.  People in the US have just become accustomed to a brief period of time in history when -- for apparently the first time ever -- people set up a government which greatly limited its scope and power.  We went from a King with relatively unlimited power to a system where a scant portion of the economy was consumed by “governance.”

We have forgotten that history.  Our own history.

Now the governments in the US are approaching a level where 40% of the spending in the economy comes from government.

More spending equals more power for the politicians, I think.

I think that equals more corruption regardless of who’s in charge.

I think it is all about approaching the ideal of “rule of law” -- even if it can never be reached -- instead of approaching “rule of man.,” as our founders warned us.

 

 

Wed, 03/06/2013 - 20:55 | 3306958 El Hosel
El Hosel's picture

Somebody splain to me why we never hear about any Banker Vigilantes? All the crazy wacked out shit that happens every day and nobody   dares to mess with one of these top dog bankers?

Wed, 03/06/2013 - 21:51 | 3307197 Vendetta
Vendetta's picture

good question.  We'll have to see when some billionaire gets his financial clock cleaned by 'accident' by the bankers and maybe something good will start happening along the vigilante road.

Wed, 03/06/2013 - 20:31 | 3306868 Radical Marijuana
Radical Marijuana's picture

I REPEAT below what I already posted when this story about Holder's statement was first highlighted on Zero Hedge today.

I will preface that with my view that the series of articles I have read from George Washington are also Bass-Ackwards, when it comes to theories regarding what the implied "solutions" to these kinds of problems ought to be. In my view, George Washington deliberately stays on a more superficial level, in order that what he writes will be understood and agreed with by more readers. On the contrary, what I state below is what I believe is the deeper truth about the overall REAL SITUATION, which more radical truth I know will be understood and agreed with by far fewer readers.

The creation of too big to fail, and too big to jail, banksters is actually only a tiny tip of the iceberg. What has actually happened is the almost total triumph of the psychotic notions about "national security" spreading from the murder systems into the money systems.

People refuse to face the fundamental facts, that human civilization is operated by the application of the methods and principles of organized crime, and it must be. Both empirically, as well as theoretically, it is impossible for the real world to be governed in any other ways than through the application of the methods of organized crime.

Governments evolved from the War Kings that were the best at organized murder, in the forms of militarism. That is what made states be states, since only those War Kings that were the best at deceits and destruction survived. Those well-established systems of organized crime were taken over by the best organized covert gangs of criminals, the international bankers.

The biggest banks are the Fraud Kings. (The King of Kings of Fraud is currently the BIS, the Bank of International Settlements, but that whole system is attempting to evolve into a more consolidated hegemony, based on triumphant financial frauds, backed by an emerging global government system, i.e., the international bankers are becoming transnational bankers.)

The public debates about these things are all based on BULLSHIT, and so, the public solutions proposed are all BULLSHIT. The reasons are that the vast majority of people do not understand, and do not want to understand, the fundamental fact that money is backed by murder, and must be. Therefore, "democracy" and "governments" are all necessarily BULLSHIT, because they pretend to operate through various old-fashioned religions, and other ideologies, which are based on deliberately ignoring that warfare is the oldest and best developed social science, whose successes were based on deceits. That the real social systems were built on those foundations are the reasons WHY the biggest banks ARE the biggest organized crime gangs, which have already taken control over governments, to legalize their crimes, such as legalizing counterfeiting "money" out of nothing, as debts.

Merely breaking up the too big banks would be a waste of time.

The foundations of the system are the problem, namely, the PRIVATIZED, LEGALIZED COUNTERFEITING OF THE MONEY SUPPLY!

That system was able to succeed by the covert privatization of the murder systems, whereby the methods of organized crime were employed to effectively take control of the political processes that were selecting the public governments, to end up being directed by puppets working for the banksters. Besides bribery and intimidation, the most important historical events were when politicians that could not be bribed or intimidated were discredited or destroyed through dirty tricks.

The deeper problem is that the vast majority of the people, the Zombie Sheeple, have already been brainwashed to bleat their morality, which is to parrot the biggest bullies' bullshit social stories, in the forms of the various old-fashioned religions, or other ideologies, which are based on false fundamental dichotomies, and which therefore advance impossible ideals, which always backfire badly, and therefore, make the opposite things happen in the real world.

The banksters have evolved to fill the niches in the human ecology and political economy as the top carnivores, who play the roles of the Vicious Wolf People, in relationship to the vast majority, who play the roles of the Zombie Sheeple. What we are seeing in articles like this above are that the runaway triumph of the banksters controlling the government is becoming so utterly blatantly that even the best professional liars that hold public office are being forced to somewhat admit those social facts.

However, we still are nowhere remotely close to better social science with respect to these social facts. The problem is that MONEY IS BACKED BY MURDER. It is IMPOSSIBLE for money to exist in any other way. (Gold or silver backed money, etc., simply displaces that to become the possession of gold or silver being backed by murder.)

What actually exists is a combined money/murder system, where those with the most control over the money got that way by being covertly the best at committing murders (such as the assassination of key politicians, when necessary.) THAT IS WHY we have too big to fail, and too big to jail, banks, which effectively control the government. The government is the public form of organized crime, which has been covertly taken over by the best organized covert criminals, the biggest gangsters, the banksters.

There are NO other genuine solutions than to continue to have to muddle through this madness, since the real world is made by dynamic equilibria of organized systems of lies, operating organized robberies. The deeper problems with respect to the current situation of the biggest banks enjoying effective impunity to violate the law are that they control the laws, because they have also been triumphant in brainwashing the vast majority of the Zombie Sheeple to misunderstand their reality in fundamentally false ways, and therefore, to continue to be led by controlled opposition, to head towards the goals of impossible ideals, which can NEVER be made to become real, and therefore, always backfire, and actually make the opposite things happen in the real world.

Of course, I am well aware of the social situation that, despite what I have stated above being the plainly obvious social facts, the vast majority of Zombie Sheeple do not want to understand those facts, because the small minority of Vicious Wolves have worked hard for many generations to make sure that the Zombie Sheeple do not want to understand.

It is the most interesting dilemma of our times that we have progress in science everywhere, even in the paradoxical manifestation of social sciences, because the oldest and best developed of social sciences was warfare, and the postmodernizing manifestation of that human history was what has created the current situation, where there are Fraud Kings, the biggest banks, have controlled the government to have legalized their crimes so much, for so long, that those Fraud Kings are now the new royalty, which are effectively above the law.

Of course, the Fraud Kings are not actually outside of the systems of natural law. They are still operating within the laws of nature, whereby they became the best at deceits, backed by destruction, so that they were enabled to legalize their lies, and have the entire society organized to back up those legalized lies with legalized violence. That runaway fascist plutocracy juggernaut is now so BIG and so OUT OF CONTROL, that it is becoming more obvious to more people than ever before ...

However, the only public responses, so far, are typically calls by various reactionary revolutionaries to go backwards, to various old-fashioned religious moralities, or other ideologies, which are based on utterly unscientific false fundamental dichotomies, and the related spectrum of impossible ideals. In fact, the only genuine solutions must operate within the realities that there are, and must be, some combined money/murder systems, operating debt controls and death controls, as a necessarily interrelated whole system, which combines our understanding of political economy within human ecology. Such genuine solutions are never more than some continuing evolution of dynamic equilibria of organized systems of lies, operating organized robberies. Better government, applied to the banks, should be that!

Thu, 03/07/2013 - 01:22 | 3307813 Wave-Tech
Wave-Tech's picture

 

Brilliantly Articulated - Despite such concise unequivocal illumination, the problem shall remain perpetually intractable.  I posit this in part based upon another of your closing comments later in this thread where you state:

“Of course, I do not know what will actually happen during that rough ride into the unknown, but nevertheless, we are committed to be on it.” 

Just as no one knows what will actually happen throughout such a course of events, no one has any viable solutions to - or transitory way out of the quandary, which is another obvious and unfortunate truth.

Until we can similarly articulate a full-spectrum solutions-based level of thought, process, consciousness, and self-sustaining governance of an effectual transition that resonates triumphantly with the widespread sensibilities of the masses, all we can do is continue to reveal known truths as you have so brilliantly done here.

The comments you have posted are some of the very best examples in revealing such truths that I have read to date, and I have read reams upon reams of such truths.

Given the sheer enormity of corruption, those who make valiant attempts to layout blueprints for plausible transition protocols and replacement systems of governance gain no traction. 

All too often, those who attempt to do so, are harshly criticized, written off as just another brand of psychopathic tyrant.

Whether arising from another Dark Age or avoiding one, we must encourage a plethora of brilliant minds to draft, record, and archive volumes of sustainable solutions for civilized governance under an incorruptible equal rule of common laws.   

Beyond the one you so eloquently outline, without such a volume of plausible archives to draw upon, there will NEVER be any other method of social organization.

Thank you for your tenacity, passion, and relentless pursuit in sharing such disturbing truths.

 

Thu, 03/07/2013 - 04:16 | 3307975 Radical Marijuana
Radical Marijuana's picture

Thanks Wave-Tech!  When I wrote my comment I rather expected it was more likely to be attacked that praised. But then, the hope that a few readers on Zero Hedge MIGHT understand was the reason why I finally bothered to register and post some of my comments, after having been an unregistered reader for a few years before. Like many other people who have posted comments here, I find some solace in there at least being a small group of people on Zero Hedge that appear to understand the basic runaway insanity of a fundamentally fraudulent financial system!

Wed, 03/06/2013 - 23:54 | 3307605 Westcoastliberal
Westcoastliberal's picture

Well said. Now, how can we "legally" get their attention to get across the message enough of us "Sheeple" are on to them, and willing to risk everything, to stop them in their tracks. 
I mean, isn't that really the question here? Unless we want to wind up as slaves or worse?

Wed, 03/06/2013 - 21:20 | 3307068 orez65
orez65's picture

"The foundations of the system are the problem, namely, the PRIVATIZED, LEGALIZED COUNTERFEITING OF THE MONEY SUPPLY!"

I agree 100% with you.

Now, try to explain that to the "walking dead" population of the US.

 

Thu, 03/07/2013 - 04:05 | 3307642 Radical Marijuana
Radical Marijuana's picture

I am glad you agree orez65. IF one thinks about it, it appears to be bloody obvious that allowing private banks to create the money supply out of nothing, as debts, is a terrible thing for the vast majority of people to allow. But nevertheless, THAT is the established system!

I HAVE tried to explain that to the "walking dead" population of Canadians, using their political contribution tax credit provision as the incentive, and I am STILL attempting to do that, after working at that problem for a few decades, including half of that time involved in court cases against the government of Canada regarding the laws controlling the funding of the political processes:

http://www.marijuanaparty.ca/article.php3?id_article=215

After that prolonged process of political experiments and court cases, as well as, incidentally, discussing these issues face to face with tens of thousands of different people, my conclusions are reflected in the statements which I made above.

THE REAL SOCIAL FACTS ARE THE RESULT OF THOUSANDS OF YEARS OF LIES, BACKED BY VIOLENCE.  There are entrenched action patterns in the human population which have resulted in the vast majority of people being slaves, while a few are their slave masters. Those action pattern psychologies are very deeply entrenched, to the point where they seem practically impossible to change.

We are watching the runaway exponential growth of the systems of "money" made out of nothing, as debts. go past its original debt slavery, to become, by its numbers, debt insanity situations. The original triumphs of the best organized gangs of criminals making and maintaining the current financial systems are apparently going too far, and becoming too blatant, such as demonstrated by the Attorney General saying he can not risk the consequences of prosecuting the biggest banks for breaking the law. Even in the worst cases, the recent pattern has been to settle for a token fine, which flagrantly disregards the principles of punitive damages and deterrence, which were were well-developed previously during hundreds of years of jurisprudence.

Today, the biggest American banksters appear to face nearly zero chances of going to jail, while, when they deliberately ignore the laws that they still do not like, (but have not yet been able to lobby to be changed) they can nevertheless keep the lion's share of the profits that they thereby made from knowingly violating those laws.

However, most of the criticisms of that, which will be read and understood by more mainstream people, focus solely on the superficial laws that still exist, and which therefore the banksters openly violated, in order to make keep more profit, with their impunity. Almost none of the criticisms of that runaway situation focus on the historical origin of that system, with the Bank of England, a few Centuries ago, and then the USA's Federal Reserve Board, a Century ago, which both achieved the ultimate form of triumphant organized crime taking control over the government: PRIVATIZED, LEGALIZED, COUNTERFEITING OF THE PUBLIC MONEY SUPPLY!

THAT meant that everything that everyone says about "capitalism" and "free markets" was reduced to nothing more than ridiculous bullshit! The Anglo-American (Zionist) global empire was made and maintained on the basis of the greatest possible legalized lies, backed by legalized violence. That system is now a runaway juggernaut, turning more and more people into road kill. However, there appear to be no practical solutions ... despite almost everything that George Washington wrote above being correct about the consequences of not fixing these political problems! The main reason why there are no practical solutions is that the vast majority of people have already been so brainwashed that they DO NOT WANT TO UNDERSTAND. Obviously, they could understand, IF they wanted to. However, they greatly prefer to not want to, and they have a well-installed set of social habits, action patterns, or pat mental responses, which enable them to continue to not know, and to not want to know, the basic facts about their money system.

It is truly an astonishing thing to try to wrap one's head around the ways that our monetary and taxation systems have become our state religion. The social taboos about money are actually way stronger than the social taboos about sex. However, again, it is consistent that the vast majority of people have barely the slightest awareness of that aspect of their psychology. It is quite astounding to approach an understanding of the ways in which almost everyone is preoccupied with making money, and spending it, BUT, THEY DELIBERATELY DO NOT THINK ABOUT THE SOURCE OF THAT MONEY.

The obvious saying that one should follow the money to understand the motivations for why something happened especially applies to following the money to ITS SOURCE! However, the overwhelming vast majority of people within the Anglo-American world have been so totally brainwashed by Centuries of triumphant dishonesty, backed by violence, that those people are buried way, way too deep in their conditions of mental and physical slavery to be willing to ask themselves those questions about following the money to its source.

Of course, again, it is understandable WHY people do not want to understand money, because, in order to do so, they MUST understand that money is backed by murder. People would prefer to continue to believe in magical words, which they repeat to each other. Parroting the stock phrases is what they prefer to do, and that is what almost always worked best for them, in their own lives, during each short-term increment. However, agreeing with the biggest bullies' bullshit causes the system as a whole to become more totally insane. Each little increment added to the debt slavery drives the system as a whole towards debt insanity.

The USA, and almost all of the rest of the world, is drowning in that debt insanity situation now! Incredibly, the mainstream morons turn to the banksters for solutions to the problems caused by those banksters! However, in theory, the only genuine solutions must come from a more radical understanding of the problem, which is that money is backed by murder.

Of course, one could attempt to resolve that problem with more transcendental poetry, and sling around more magical words, however, in reality, we ARE going to go through a rough ride, since the banksters appear to be able and willing to risk endlessly doubling down on their paths towards starting more genocidal wars, along with democidal martial law, in order to attempt to force their frauds to continue to control the world. ... Of course, I do not know what will actually happen during that rough ride into the unknown, but nevertheless, we are committed to be on it. Furthermore, it clearly was a significant set of sign posts along the way when the American "Department of Justice" started openly justifying not enforcing the law against the biggest banks, for alleged reasons of "national security." ... I REPEAT that, although I agree with almost everything George Washington writes, I believe that the real situation is WAY WORSE!

Thu, 03/07/2013 - 12:45 | 3308987 Ignatius
Ignatius's picture

Very much enjoy your commentary, Radical.

Personal choices are first and foremost the answer to 'what can one do?' and sharing knowledge as you have, of course.

Thu, 03/07/2013 - 20:57 | 3310306 Radical Marijuana
Radical Marijuana's picture

Thanks Ignatius! I like to day dream that E-V-E-N-T-U-A-L-L-Y enough people will wake up to be able to make a difference. (It does not have to everyone, but rather, I would say, a core 5% who understand the real money system, surrounded by 20% who understand enough to support that view.) However, at present, it still looks to me that less than 5% of the people in the Anglo-Anglo American world understand the degree that they are being screwed by the privatized fiat money system, because they fail to understand the basic way that system works, since in their normal lives they can not imagine being able to legally counterfeit money, and continue to get away with doing that, year after year! Decent, honest people seem unable to understand the triumphant financial fraud systems. It is too far away from their common sense to comprehend that "money" is being made out of nothing! They are unprepared to comprehend the astronomical magnitude of the organized crime that has taken control of the government!

Of course, several decades ago, it seemed that less than one in million Americans thought about the Federal Reserve Board, much less understood that. While today, people like Ron Paul have educated millions of Americans to become more aware of that, as one of the roots of their problems. ...

I continue to make the choice to pretend that there may be some possible future in enough people waking up enough to matter ... However, I tend to still regard that as an irrational hope, that I cling to, because I MUST have some hope, rather than none ... since, I too appear to be another of the vast hordes of hopium addicts.

Clearly, the ONLY good solutions require enough people to wake up to understanding their real problems! The path we are on now, of the Zombie Sheeple being set up to be slaughtered, is NOT a good solution! Although I tend to not have much sympathy for the adult Zombie Sheeple, I do care about their innocent lambs, since the younger you are, the worse your future is being defrauded by the banksters' currently established systems.

Wed, 03/06/2013 - 22:53 | 3307383 El Hosel
El Hosel's picture

Lets see? Bankers don't like gold backed money because it is messy hard work coming up with the Gold..... so they create money ( lots of money ) out of thin air to pay armies to make sure they never have to do any messy hard work? Got it, its all about clean fingernails Bitchez, any dope can figure it out if you present it accordingly.

Wed, 03/06/2013 - 20:59 | 3306975 Oldwood
Oldwood's picture

And you don't see THEM using science to subdue us, control our very being? Science, technology and the pursuit of effiecency has always been the tool used to take us down. Our old fashioned religious moralities are the thing that has been the glue that held it all together. The State seeks to destroy and dismiss those values as worthless and instead replace them with State Values. Everything is for the "collective" ultimately, regardless of which ideology was in vogue at the moment. We don't need more centrally controlled laws and regulations. We need transparency and accountability. We have so many laws now that no person on earth knows them all. we have to spend huge amounts of money on lawyers now for every specialty imaginable and yet still are just guessing. We need transparency so we can see what we are getting. It used to be if you were duped by a con man, you were embarased. Today no amount of stupidity defers responsibility. Humans have been gaming each others weaknesses since the beginning of time and yet you really think we are going to have some new technologically perfected rule or law that is going to fix it? Whatever happened to buyer beware? Are we not going to bare any responsibilty at all for this mess. Are we going to relegate ourselves to the status of moron, requiring a handler to watch over us to prevent us from being harmed in some way. I know there are crooks out there and I'm not saying they should go unpunished...far from it! Prosecute by all means. But the prevention is education as to the cost of each of our actions...both sides of the deal. To focus only on one will accomplish nothing except to make it only grow worse.

Thu, 03/07/2013 - 00:02 | 3307623 Westcoastliberal
Westcoastliberal's picture

That's what the Nazi's were working toward. The "master" race.  And on the flip side, if you can find the "Control Bunker" shot of the team monitoring the operation to "take out" bin Laden, the brunette in the back of the pack did her doctorate on a "humane" way of quickly reducing the population, resulting in elimination of a couple of Billion Humans.  Really. And she's in a senior position, otherwise she wouldn't be in the room.

Wed, 03/06/2013 - 20:28 | 3306862 TrustWho
TrustWho's picture

AG Erica Holder is a coward or crony criminal.

Wed, 03/06/2013 - 21:53 | 3307202 Vendetta
Vendetta's picture

He's a criminal engaging in a cover-up, waiting out statutes of limitations or something similar.

Wed, 03/06/2013 - 20:43 | 3306910 notquantumdum
notquantumdum's picture

Or, perhaps, he has an ideology which prevents him from seeing that he is the head of the Department of Justice and not the Department of the Economy.

Wed, 03/06/2013 - 20:49 | 3306927 notquantumdum
notquantumdum's picture

If they really wanted to improve and not harm the economy, by the way, I would suggest that the policy changes pursued in the last six years have all been just about exactly the opposite of what would have actually improved the economy.

I challenge everyone to think of even one policy change in the US in the last six years -- which is still in effect now -- which has not made it more expensive to have an employee in the US (in aggregate).  Doesn’t that equal a weaker economy overall -- especially for people at the lower end of the earnings scale?

Wed, 03/06/2013 - 20:34 | 3306877 willwork4food
willwork4food's picture

If his only offense was being a coward  there would not be a problem. The reality, however,  is anything but.

Wed, 03/06/2013 - 20:27 | 3306859 ebworthen
ebworthen's picture

No prosecution of fraud as long as you have enough money and influence.

Jon Corzine free.  LIBOR rigging bankers free.  Bailout bonus bunga-bunga bankers free.

But, talk about guns and gold and restoring the Constitution and they can drone your property and blow you into little bits; no accusation, no lawyer, no trial.

U.S.S.A.! (Comrades!)

Wed, 03/06/2013 - 21:29 | 3307105 rhinoblitzing
rhinoblitzing's picture

Don't forget Wassendorf of Peregrine Financial -(PFG) and what ever happened to the CEO of Refco?

It all comes down to Risk vs Reward...

No Risk = Unlimited Reward ( Rinse Repeat, ad nauseum, 4eva...)

Guaranteed to happen again until someone goes to jail, or gets taken care of the old fashioned way.

Wed, 03/06/2013 - 21:50 | 3307170 ebworthen
ebworthen's picture

"or gets taken care of the old fashioned way"

Brings to mind Evil Knievel breaking the legs of that author that slandered him in his books.

Knew a guy like that back in the day.  His Ex.-Wife's boyfriend was beating her up.  My friend got wind of it from his kids.  No love lost after the divorce but she was the Mother of his children.  He and the Woman's two Brother's tracked the guy down outside a bar and beat the shit out of him (and broke both his arms), and told him to his face if he beat her again he was a dead man.  No cops, no lawyers - problem solved.

Wed, 03/06/2013 - 20:44 | 3306914 Oldwood
Oldwood's picture

Yes, but I feel so much safer knowing that I could get a ticket for not wearing my seat belt. Afterall they are TRYING to take care of me!

Wed, 03/06/2013 - 20:21 | 3306847 Oldwood
Oldwood's picture

From an elite's point of view they must survive in order for us to survive. I mean afterall, who would be able to direct the Animal Farm? Silly goose.

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