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Is Larry Summers an Economic War Criminal?

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“It will become clear, and may as well be stated at the outset, that this is written by a political opponent of Henry Kissinger. Nonetheless, I have found myself continually amazed at how much hostile and discreditable material I have felt compelled to omit. I am concerned only with those Kissingerian offenses that might or should form the basis of a legal prosecution: for war crimes, for crimes against humanity, and for offenses against common or customary or international law, including conspiracy to commit murder, kidnap, and torture.”

The Case Against Henry Kissinger:
The making of a war criminal

Christopher Hitchens
Harpers, March 2001

Where does Larry Summers get off giving Americans advice on how to fix the continuing housing crisis?  And where does this political opportunist find the unmitigated gall to instruct us not to “finger point” and thereby identify culprits in Washington who helped enable the housing mess?   Like advising the White House to ignore the fact of a collapsing credit market for jumbo and high SATO loans for the past several years?

As a general rule I like to follow the sage advice of Roger Kubarych, formerly of the Fed of New York and then Wall Street, but now working in the public sector, in 2008 during the depths of the crisis. “I have nothing bad to say about anybody,” he quipped during a discussion about how and when the FRBNY senior staff were first apprised on the problems at Bear, Stearns & Co.  Good advice in these dark times.

But former Harvard University head Larry Summers is a special case and one that rises to almost Kissingerian dimensions, to borrow from Christopher Hitchens.  In “Rational Irrationality” in The New Yorker last May, John Cassidy compared Summers to Henry Kissinger, an apt appraisal which begs the question: Is Larry Summers an Economic War Criminal?

Not only did Summers work tirelessly during his years in the Clinton Administration to undermine regulatory and prudential controls in our financial markets, but he joined Fed Chairman Alan Greenspan and his political sponsor, former Treasury Secretary Robert Rubin, and public paragon Arthur Levitt, in smearing CFTC Chairman Brooksley Born so as to make the world safe for OTC derivatives.

“The moratorium was a huge victory for Wall Street,” Robert Stowe England writes in his new book, Black Box Casino.  “And a big win for Rubin, Summers and Greenspan,” though he rightly notes that Levitt later expressed regrets over his actions.  But not Larry Summers, a man for whom ideology has never gotten in the way of the practical necessities at a given moment in time.  He rolls in his own mess, in political terms you understand, and then expects us to believe that it smells so very sweet.  The latest case in point is seen as Summer prescribes solutions to the housing crisis.

In their book Reckless Endangerment, Gretchen Morgenson and Josh Rosner describe in vivid detail how Larry Summers, Robert Zoellick and others bullied critics and won and influenced friends for Fannie Mae, one of the key Washington agencies that helped lead to the subprime debt crisis.  Ed Demarco, now head of the agency that supervises Fannie and Freddie Mac, wrote a report in 1996 suggesting that the housing GSEs be privatized.  But Summers bullied Demarco and other staffers, eventually forcing them to rewrite the entire document.  The cost to the taxpayer of Summers’ intervention regarding the housing agencies is over $150 billion and climbing.  And this number will climb dramatically after the 2012 election.

But perhaps one of the biggest indictments of Summers when it comes to his contribution or lack thereof to economic public policy is also his last, namely the advice to President Obama to do nothing about either the top-four zombie banks or the housing GSEs.  By allowing the GSEs and the cartel they form with the largest four banks – JPMorgan, Wells Fargo, Citigroup and Bank of America – in the secondary market for home loans to deny millions of middle to lower income borrowers the opportunity to refinance, Summers has cost millions of Americans livelihood and security.  I wrote about this issue in “Are the low US home mortgage rates for real?”

Summers deserves the censure of all Americans for his hideously bad advice to President Barack Obama regarding the housing crisis.  First Summers told Obama not to restructure the largest zombie banks, the very same institutions that today deny millions of Americans their contractual right to refinance their mortgages.

Cassidy quotes Summers on Obama’s view of the big banks last year prior to his flight from the White House: “In the same spirit that the president did not want to take ownership of the banks, he has a healthy skepticism about schemes involving large government action and an awareness of the possibilities of unintended consequences.”

Second, Summers told the POTUS that there was no need to address the fact that tens of millions of American households are under water on their mortgages.  As Laurie Goodman of Amherst Securities has noted, there is a cost to doing nothing.  For Summers now to offer us advice on the mess he helped to create is quite outrageous.

“This guy and his crew from Harvard have fought me on this for the last three years when it comes to dealing with the home refinance issue,” notes one banking industry official who has argued for a government response to refinancing. “When we finally get the Obama administration to change their mind on dealing with under water mortgages, Summers pops up pretending to lead the parade.”

Bottom line is that Larry Summers has nothing to say about the housing crisis.  His role in creating the catastrophe and pandering to the worst tendencies on Wall Street should rule him out of any attempt to fashion policy or a coherent history going forward.  And for the media especially, you need to commit Morgenson & Rosner to memory as a lesson in the ways and means of Washington and people like Larry Summers.

 

 

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Sun, 04/29/2012 - 12:34 | 2383656 Lost Wages
Lost Wages's picture

Tie a brick to his ankle and throw him in the sewer.

Thu, 10/27/2011 - 11:41 | 1817381 Mediocritas
Mediocritas's picture

When Summers is in prison for life I'll say we're starting to turn the corner towards better times. Meanwhile, back in we're still screwed ville.

Tue, 10/25/2011 - 16:03 | 1809691 Miles Kendig
Miles Kendig's picture

Larry Summers, a leading subversive form Obama's term in office.

18 USC 2381, 2382, 2383, 2384 are applicable to Larry Summers for his actions devoted to undermining the financial security of the United States.  With enhancements for engaging in such activities during a time of war.

Range 13 at the ADX in Florence CO was made for the financial terrorist Larry Summers and his co-conspirators.  That is IF placing them under the authority of enemy combatant statutes and holding them for trial my military tribunal at Gitmo is ruled out.

Tue, 10/25/2011 - 14:46 | 1809377 Lord Koos
Lord Koos's picture

I don't know if he's a criminal but he's certainly an asshole.

Tue, 10/25/2011 - 14:33 | 1809330 Insiderman
Insiderman's picture

Summers suffers from self-attribution disorder, a form of overconfidence bias, in which he takes credit for successful policies and attributes poor outcomes to bad luck or somebody else's fault.  It's the only way he can justify continuing to get paid.

Tue, 10/25/2011 - 14:29 | 1809311 Shylockracy
Shylockracy's picture

Mishpuka Meritocracy Inc.

Tue, 10/25/2011 - 14:17 | 1809255 geno-econ
geno-econ's picture

I once met Summers at a conference I organized. What you see is what he is---deshevled, shirt hanging off his belt, impudent , elitist, smart,  opinionated, prickly, snearing---all the attributes of an American idol,and he knows it.

Tue, 10/25/2011 - 14:03 | 1809192 LivermoreJim
LivermoreJim's picture

Short answer: no.

Long answer: of course not.  Stop the blame and prepare for the zombie hordes, already on Wall Street and coming to a neighborhood near you.

 

Tue, 10/25/2011 - 14:17 | 1809257 weinerdog43
weinerdog43's picture

You had a 50/50 chance of getting this right and you fluffed it. 

Of course I would add Bob Rubin, Alan Greedscam, Bill Clinton, both Shrubs, Hank Paulson, Timmy Geithner and the Bernank to the list.

Tue, 10/25/2011 - 13:54 | 1809135 kaiserhoff
kaiserhoff's picture

Hear, hear.  Let the trials begin.

Tue, 10/25/2011 - 13:29 | 1809029 steelhead23
steelhead23's picture

Unintended consequences.  Let me tell you about unintended consequences.  When Obama strongly signaled to Wall Street that he "didn't want to run a bank," he effectively surrendered to them.  When he said it, jokingly, he was funneling billions to them - and the Fed was lending them trillions more.  That is when the "new bonus army" arrived.  That is, the army of banksters helping themselves to bonus cash (thanks to the U.S. Treasury and the Fed) in accordance with their fictitious profits and their compensation formulae.  I simply cannot help but wonder - did Larry get a cut?  Chris - this was a fun piece - I love how you never shirk from saying what must not be said.  Good on ya.

Tue, 10/25/2011 - 13:25 | 1809009 Sequitur
Sequitur's picture

Larry Summers = dick.

Oh, and Summers, if you're reading this, fuck you. If you didn't hear me the first, time, you're a dick, and I'd be happy to scream it in your face.

Tue, 10/25/2011 - 13:08 | 1808933 Problem Is
Problem Is's picture

Yes.

The Economic Three Stooges
Fat Larry Summers (Moe)... Timmay (Larry), The Bernank (Curly), the most beloved of the Stooges...

And Robert "What Me Worry About Insider Trading at Citi" Rubin (Ted Healy), who brought the Stooges to the public... Look that one up Stooge fans...

Oh, and Christna Romer is Shemp... Have you seen her haircut??

Tue, 10/25/2011 - 13:07 | 1808930 williambanzai7
williambanzai7's picture

Is fatso on the loose again?

Tue, 10/25/2011 - 12:53 | 1808824 Lazane
Lazane's picture

 summers the rat knows how to flee a sinking ship of state, a rat in the lifeboat of rats 

Tue, 10/25/2011 - 12:49 | 1808799 Fred123
Fred123's picture

Sounds like Summers is a perfect fit for the 0bama administration.

Tue, 10/25/2011 - 12:48 | 1808789 RoadKill
RoadKill's picture

A bit extreme from my POV. I was at HBS when he was there. Heard him speak a few times. He's not dumb, just locked I'n the same Kensian mind set 90% of economists are.

We had a case on Japan. After we discussed solutions in class to their crisis (as if it was 1995 not 2005), we went and heard him speak. His solution was the same as mine. Print, print, print and let people know you are going to print till you drive real interest rates to -10% thus forcing them to spend. Of course I wouldn't have run a federal deficit at the same time and I would have used all the $ I was printing to let every bad investment fall to 0 rather then zombifying for 10 years.

The difference is that I realize this works for a country, but is really problematic for the entire world to do at once.

F it. I'm not I'n the game of solving crises, just profiting from them. It's much harder to figure out what idiots will do rather then intelligent people

Tue, 10/25/2011 - 13:26 | 1809015 JR
JR's picture

Smart is what we need, but working for the people of America and not for the cartel.

Changes in America are coming soon!  When the Federal Reserve System (“system” meaning central bank) decides it has to go back to the housing market and actually pay to lift it, that is the signal of how serious this Keynesian-contrived economic crisis is, why Occupy Wall Street is growing all around the world.

As for calling Larry and the other rulers “smart,” with their -10% interest rates that’re fueling the Keynesian meltdown of America, I don’t think so.

I mean they’ve just voted in Tunisia, Larry.

Tue, 10/25/2011 - 14:35 | 1809333 Simon Endean
Simon Endean's picture

"Smart is what we need, but working for the people of America and not for the cartel."

Why would any smart individual ever work for the people over the cartel? The people demand all sorts of stuff and don't pay much, if anything.  The cartel only asks that you make them money, and they reward you handsomely.  Do well enough by them, and you'll have the golden escape ticket when everything goes South, too.  Even if you don't get out, you'll die having lived much, much, much better than the rabble.

The smart individuals will always side with the cartel - that's where the profits are to be made.  Human nature and all that...

Tue, 10/25/2011 - 15:15 | 1809482 JR
JR's picture

Yes, until the heads roll.

The lack of freedom quickly extends to bondage. Current economic bondage reminds me of Paris just before the Revolution when a peasant wasn’t even allowed to own a pigeon or wear the external trappings reserved only for the noble classes...

A passage in Rose Wilder Lane’s The Discovery of Freedom credits that one man with the courage to begin the revolution against the British Empire :

“One man began that war. And who knows his name? 

“He was a farmer, asleep in his bed, when someone pounded on his door and shouted in the night, ‘The troops are coming!’

“What could he do against the King’s troops?  One man.  If he had been the King, that would have been different.  Then he could have done great things. Then he could have set everything to rights, he could have made everyone good and prosperous and happy, he could have changed the course of history.  But he was not a King, not a Royal Governor, not a rich man, not even prosperous, not important at all, not even known outside the neighborhood.  What could he do?  What was the use of trying to do anything? One man, even a few men, cannot stand against the King’s troops.  He had a wife and children to think of; what would become of them, if he acted like a fool?

“Most men had better sense; most men knew they could do nothing and they stayed in bed that night in Lexington.  But one man got up. He put on his clothes and took his gun and went out to meet the King’s troops.  He was one man who did not consent to a control which he knew did not exist.

“The fight on the road to Lexington did not defeat the British troops. What that man did was to fire a shot heard around the world, and still heard. One finger on one trigger began the war for the revolution…”

Lane’s point: It’s still continuing, one man’s fight against tyranny.  Mohamed Bouazizi... Tunisia... Egypt... The Arab Spring...

Tue, 10/25/2011 - 12:39 | 1808730 Shizzmoney
Shizzmoney's picture

I still find it hard to believe a "progressive" president hired a guy who once, while President at Harvard, basically called women inheritently dumb when it comes to math and science. 

Apparently, Larry doesn't know that alot of accountants+engineers today are Asian women.

Also, how anyone who ISN'T an elitest dickbag who pays this guy $50K for speeches amazes me.

If Larry Summers were to die tomorrow, I'd probably fist pump in celebration because of what his "advice" did to the economy.  Fuck this dude.

Tue, 10/25/2011 - 20:16 | 1810512 4horse
4horse's picture

misogyny {other than as a diversionary maneuver, utilized to all-the-more ensure domestic tranquility} may perhaps just have to be considered somewhere below 1stPlace  --even Honorable Mention-- given the extensive and many Award-winning accomplishments which truly if however peculiarly distinguish the vast pecuniary reach, into such deep pockets, anywhere/everywhere, beyond even a Harvard purse, of this particularly slippery tentacle of The Octopus which is Larry Summers . . . crimson coeds reduced to pussy or another mensa-trophy aside____

all hail. The V.

which may be veritas, other than in any Summers'Eve region where EdenAlumna are sooner a shared-sacrifice if not sloppy2nd before Venality

____especially when so many other Blue-Ribbon Paneling and Prize-Won Angling must be thought at least listed above venereal:

ie. latvia
     like how he and harvard dons did, and did, and did spread disease of their free markets, Balticked

though, speaking of riga --speaking of pussy! and poverty being such an aphrodisiac-- soon upon-the-higheels of larry's demons was even deeper full-market-penetration of his rigged riga achieved in turning it into their own little whorehouse
http://news.ulookubook.com/British-Stags-Ruining-Riga-Reputation-8867269274.html

eg. russia
      Some of the main actors with Harvard's Russia project have yet to face a reckoning, but this may change if a current investigation by the U.S. government results in prosecutions .  .  .  [yeh] .  .  . The H.I.I.D. story is a familiar one in the ongoing saga of U.S. foreign policy disasters created by those said to be our "best and brightest." .  .  .  as the Soviet state fell apart, Harvard Professor Jeffrey Sachs and other Western economists.  .  .   One was Lawrence Summers, himself a former Harvard economics professor. . . had longstanding ties to the principals of Harvard's project in Russia and its later project in Ukraine .  .  . Andrei Shleifer, a Russian-born emigre and already a tenured professor of economics at Harvard in his early 30s, became director of H.I.I.D.'s Russia project [and] was also a protege of Summers . . .  althouth it is important to realize that he was just a  puppet, low level criminal . . . in the biggest looting of the century:  (Harry R. Lewis Larry Summers, Robert Rubin Will The Harvard Shadow Elite Bankrupt The University And The Country)

etc. like on to the rest of asia
       in the spring of 1997, before the onset of the Asian financial crisis, Japan and Taiwan had offered to put up $100 billion to help their fellow Asians . . . {Back then, Summers, Geithner and their boss, Robert Rubin, objected to Asia having a bailout fund.} The idea was killed by then-Treasury Secretary Robert Rubin and Deputy Secretary Summers, both of whom saw the idea as a threat to the monopoly of the IMF over international financial crises.

. . . We all know what happened subsequently. Instead of forestalling global economic instability, the Treasury/IMF proposals helped make further instability inevitable

http://www.creditwritedowns.com/2009/05/pesek-asia-is-de-coupling.html

 

ergo . . . what's a mere presidency. or its 1country
             So, given how much the economy was front and center, it has meant that Obama has literally bet his Presidency on the counsel of Tim Geithner and Larry Summers much as George Bush bet his on Dick Cheney and Donald Rumsfeld.
http://www.creditwritedowns.com/2010/09/the-sustainability-of-global-recovery.html

 

etc.  not least a little and ongoing self-aggrandizement
  ie.  citi
  eg. g/s
       Last month, it was revealed that Summers, whom President Obama appointed to essentially run the economy from his perch in the National Economic Council, earned nearly $8 million in 2008 from Wall Street banks, some of which, like Goldman Sachs and Citigroup, were now receiving tens of billions of taxpayer funds from the same Larry Summers. It turns out now that those two banks have continued paying into Summers-related businesses

http://www.alternet.org/story/140327/

 

ps. never to escape oversight, his favorite predicate, the perhaps earliest prototype of his envisioned worldwide monetizing:
      After the memo became public in February 1992 , Brazil's then-Secretary of the Environment Jose Lutzenburger wrote back to Summers: "Your reasoning is perfectly logical but totally insane... Your thoughts [provide] a concrete example of the unbelievable alienation, reductionist thinking, social ruthlessness and the arrogant ignorance of many conventional 'economists' concerning the nature of the world we live in... If the World Bank keeps you as vice president it will lose all credibility. To me it would confirm what I often said... the best thing that could happen would be for the Bank to disappear." Sadly, Mr. Lutzenburger was fired shortly after writing this letter.

       Mr. Summers, on the other hand, was appointed the U.S. Treasury Secretary on July 2nd, 1999, and served through the remainder of the Clinton Admistration. Afterwards, he was named president of Harvard University.

yes. given such a glorious review, genius! a must read: http://www.askbutwhy.com/2009/11/getting-to-know-larry-summers.html

so.
ergo
ie.
eg.
etc.
and
et al
psst.  compared to Ivy, then, losing/moving a few billion is mere mission creep
http://www.boston.com/news/local/massachusetts/articles/2009/11/29/harvard_ignored_warnings_about_investments/

         nevermind kidding a few curved calc&alchemy naifs-at-his-knee about their anatomy-as-destiny, and, perhaps sitting-on-a-fortune, just so little future in their astrophysicity  ous  ness  tresse

windowdressing. to The Big Picture. because when it comes to completely accomplishing his mission, Creep, this creme-de-le-creep continues up ivorytowers, down sewers and throughout bussinesses' bowels like Operation Kudzu. seedy. yet not-at-all sneaky, in his inexplicable reach? near-everywhere, succeeding.

 

just kidding. sorta. comi-tragically. where the joke's on us. and murderous

 

 

 

 

 

 

    

Tue, 10/25/2011 - 21:43 | 1810768 JR
JR's picture

Good stuff, 4horse.

Karl Denninger posted this quote made by Larry more than a decade ago (in 1991), with the comment that Summers “basically promulgated intentional abuse of workers and the environment as an intentional act while at the World Bank.”  Here’s Larry:

“Dirty' Industries: Just between you and me, shouldn't the World Bank be encouraging MORE migration of the dirty industries to the LDCs [Least Developed Countries]? I can think of three reasons:  1) The measurements of the costs of health impairing pollution depends on the foregone earnings from increased morbidity and mortality. From this point of view a given amount of health impairing pollution should be done in the country with the lowest cost, which will be the country with the lowest wages. I think the economic logic behind dumping a load of toxic waste in the lowest wage country is impeccable and we should face up to that......”

http://market-ticker.org/

Tue, 10/25/2011 - 14:22 | 1809277 weinerdog43
weinerdog43's picture

When Barry hired this asswipe along w/Timmy, and then that a*hole Ram it up your pooper shoot Emmanuel, I figured out the fix was in. 

Barry's a Progressive like Shrub was competent.

Tue, 10/25/2011 - 13:03 | 1808900 Imminent Crucible
Imminent Crucible's picture

Larry Summers is even more despicable than you probably realize:

http://www.salon.com/2010/09/25/larry_summers_top_ten_blunders/

Tue, 10/25/2011 - 12:30 | 1808670 JR
JR's picture

Yes, Larry Summers is an economic war criminal.

Summers has been the mouthpiece for years for the owners of the Federal Reserve banks.  The only reason we don’t have Bob Rubin openly calling the shots instead of Summers is because there are still a few people left in America who don’t realize that Summers is the same thing, a member of the Goldmanite Mafia..

Larry Summers' past revisited ~

"U.S. Taxpayers' Backed IMF Loans Go Into Pockets of Clinton Cronies"

(Special to The Wanderer)

April 15, 2001 --WASHINGTON, D.C. - Expert witnesses at House Banking Committee hearings last week (Sept. 21st-22nd) on Russian money-laundering through U.S. banks provided an eye-popping view of the world of runaway capitalism as practiced today in Moscow and New York, London and Lugano, Berlin and Beirut.

It's a world where billions of U.S. taxpayer dollars are transferred to the International Monetary Fund and then filtered through a small number of well-placed people - only a few dozen, in Russia, New York, Washington, and Boston - who launder the money into private accounts on Wall Street and into the coffers of some of the world's major banks. 

A host of witnesses from government, private investigation and research firms, former CIA and KGB agents and other authorities told the committee, whose ranking members are Republican Jim Leach of Iowa and Democrat John La Falce of New York, that U.S. foreign aid policy in Russia is responsible for bankrupting the nation, facilitating the greatest plunder of the country's natural and artistic wealth since Lenin and creating a ruthless class of gangster billionaires.

Among those testifying was noted Russia expert, journalist, and author Anne Williamson, whose 1998 book “How America Built the Russian Oligarchy” reveals, inter alia, how current Treasury Secretary Larry Summers, chief economist at the World Bank in 1990, passed the Russian "cookie plate to Goldman Sachs," and how Harvard economists created the new Russian kleptocracy.

In 1992, Williamson told the committee, President George Bush initiated the financial plundering of Russia (estimated at $400 billion by now) by sending a corps of financial experts under the direction of Gerald Corrigan of the New York Federal Reserve to Russia to teach the nomenklatura how to play the bond game.

"So lush were the bond market's rewards," she said, "that dubious market participants included the Russian Central Bank itself through an offshore firm known as Fimaco. The involvement of the Harvard Institute of International Development [HIID; the same outfit that brought `crash capitalism' and poverty to Eastern Europe] honchos in the same conflict of interest activities has already been admitted publicly…the object of a Boston grand jury's scrutiny.

"According to the Russian Interior Ministry's Department of Organized Crime, Western employees of Russian banks, Western bankers and consultants, Russian bankers, and anecdotal evidence, other participants include certain employees of the U.S. Treasury, of the multilateral agencies, and policy and program consultants acting through accounts established in their wives' maiden names with non-U.S. reporting brokerages in Moscow. . . "One particularly striking aspect of Bill Clinton's presidency," she continued, "is how aggressively his administration worked to capture the political support of the financial sector, offering heretofore unseen gobs of government favor. (A disproportionate number of firms receiving OPIC guarantees, Export-Import bank lending, and IFC and Russian Enterprise Fund participation were generous contributors to both Clinton campaign coffers and the DNC). . . .

"The aid program . . . was really only an exotic venue through which to pass public funds to select Russians of the Clintons' and HIID's choosing and to Wall Street investment banks the Clintons hoped to entice permanently into their orbit of supporters and contributors. In short, the Russian bond market was the Arkansas Development Finance Authority gone  international.

Following the creation of the bond market and "voucher privatization" under the Russian ruling class, Williamson explained, "there ensued a years-long highly criminal and oftentimes murderous scramble for hands-on control of the enterprises. Directors stashed profits abroad, withheld employees' wages, and after cash famine set in, used those wages, confiscated profits and state subsidies to `buy' the workers' shares from them. The really good stuff – oil companies, metals plants, telecoms - was distributed essentially to seven people, `the oligarchs,' on insider auctions whose results were agreed beforehand."

Supporting Cast (see story for testimony) U.S. Treasury Secretary Larry Summers; Fritz Ermath, former CIA chief Russian analyst and National Security Council official;  Richard Palmer, former CIA station chief in Europe and founder of the Washington-based Cachet International, which specializes in international organized crime;  Arnaud de Borchgrave, noted author and director of the Center for Strategic and International Studies; and Yuri Shvets, former KGB agent.

Telling the Financial Truth

It was Williamson's testimony, however, which gave the larger story of how the Russian money-laundering caper and the Clinton administration's complicity is part of a bigger financial picture that goes back to the creation of the Federal Reserve…

Once the state slipped off the `golden handcuffs' of budgetary discipline through the establishment of the Federal Reserve, it gained the ability to create unlimited debt, thereby claiming for itself what before had been the purview of tyrants - the ability to debase the currency.

"It is the slow leaching of value from the U.S. dollar, not the far lesser sums raised by direct taxation, which has enabled the political class to purchase votes for its re-election. The degradation of American society since 1971 is often remarked upon.

"Any pyramid scheme remains viable only so long as its base continues to expand and it is that fact which has driven U.S. foreign policy for much of the past century. Since politicians and investment bankers both have an interest in promoting deficits and in forcing taxpayers to redeem government debt, they were quick to come to terms with new markets and natural resources from abroad. Taxpayer-subsidized globalism then is not a new phenomenon, but it has reached an apogee of sorts under the guiding hand of the current Clinton administration. . . .

"The 1930s were the last era in which the international political and financial elite sought advantage through control of the global economy. What economists call `hot money' raced from one nation to the next throughout that era, leaving a trail of competitive currency devaluations in its wake. Six decades ago, as nation after nation was humbled by and strangled with the manipulations of the financial world's insiders, history saw fit to serve up Adolf Hitler.

"A world war and a score of years later, the allies established the IMF as a prophylactic money bag to prevent destabilizing trade imbalances and therefore, they thought, a repetition of the preceding decade's nightmare. Yet over half a century later, the IMF, the World Bank, and their similarly U.S.-controlled spawn - the IFC, the six regional development banks, and the EBRD - have become 800-pound gorillas of economic distortion and, over time, of pillage which unchecked will guarantee extensive international conflict and broadly based anti-Americanism. . . .

"The ascendancy of Treasury in foreign policy at the State Department's expense is the result of a neo-mercantilist foreign policy in which enterprise is to be subject to direction from the presidential administration it is to serve. By expanding mandates and accelerating the use of a host of international agencies in which the U.S. is dominant - the IMF, the World Bank, the EBRD, the regional development banks, the IFC - and combining their efforts with those of the Commerce Department, the Export-Import Bank, OPIC, and USAID-financed Enterprise Funds, the Clintons succeeded in constructing an international patronage machine in which the American executive stands supreme. . . .

"Taking the IMF's behavior in Russia as a guide . .. we can expect a rapid escalation of taxpayers' liabilities in the service of failed policies. . . .

"The `new paradigm' economy concocted by the Harvard-connected Clinton administration appointees in the U.S. Treasury, was designed to extend the federal government's meddling hand worldwide through its control of the multilateral and bilateral public lenders. . . . The overall scheme works as follows: 

"Sell assistance programs on an alleged `free market' and `humanitarian' basis by awarding government grants to those academics who can be relied upon to supply the intellectual camouflage politicians and journalists then repeat ad nauseam to a distracted public, move the IMF and the World Bank to target, induce target to raise taxes, fine tune target's government banking operations, encourage borrowing and debt creation through the target's government and national banks, allowing IMF funding to pay yields if necessary; induce target to privatize national property while building a flimsy, artificial `infrastructure' for an equities market good enough to attract high risk foreign investors. Once the target nation's government flounders, step back and watch speculators assert discipline through a run on the target's currency. The subsequent devaluation delivers, in turn, a flood of cheap imports to American manufacturers and producers.

"The finishing touch on the swindle is to confiscate more money from G-7 citizens (the lion's share from Americans) to pay for what is said to be an `essential' IMF bailout; thereby allowing Uncle Sam's IMF minions to entrench themselves more deeply in the target's government. Taxes are raised, the population struggles beneath indebtedness, government funding demands, and the inevitable domestic inflation a devaluation delivers… 

"U.S. taxpayers get hit coming (foreign aid) and going (bailouts) and innocent foreigners' property is finagled away either from, or on account of, inattentive and corrupt leaderships. The big winners are the world's increasingly corrupt and cozy governing class, international bureaucracies, and global banks… 

 http://www.apfn.org/APFN/taxpayer.htm

Tue, 10/25/2011 - 13:11 | 1808944 Problem Is
Problem Is's picture

JR... Why don't you ask Tyler to guest post if you are going to take up 22 inches of column space in the comments...

Tue, 10/25/2011 - 13:40 | 1809072 JR
JR's picture

Thanks for your response, Problem Is; sorry for the length, but the crisis we’re facing seems so overwhelming to me and so lightly considered by many that I can’t resist using something as fundamental as this, particularly when that exact moment comes along to be a witness for the prosecution.

Wed, 10/26/2011 - 01:08 | 1811314 4horse
4horse's picture

.

  no apologia

 

not given the length +summers&associates+ have gone to in their RUIM to the very bottom of the cesspool

 

and never in the face of such a 100yr Enormity

 .

 

 

Storm's just now comin

                                     and perhaps another exact moment too

 

.

 

                                                                                                      thank you jr

Tue, 10/25/2011 - 12:24 | 1808642 dcb
dcb's picture

I have written the financial times a number of times regarding their A-list criteria, saying A must stand for asshole. I have asked if the ritria is to be wrong on logic and policy in the long term, but made a lot of money for your self and others in financie. they include greenspan (the guy who was wrong about everything. To include summers is in fact a crime becuase his derivatives legislation and getting rid of brooksly borne (sp) is in fact one of the causes of the crisi, nad his rescue of the banks instead of maintreet are why we are having such difficulty. I have stated to the editorial staff o the ft that if you didn't predict the financil crisis, or your modles were faulty ( didn't include the liability side of the balance sheet for example) then well you aren't an a- lister.

 

While I think it is the best of the financial news papers, the a-list stuff realy scuks, and is so intllectually dishoneest

 

you can write them your self at

letters.editor@ft.com

 

I think hearing from a lot of people as to what a farce this makes their paper would be a good thing.

Tue, 10/25/2011 - 17:12 | 1810024 earleflorida
earleflorida's picture

ft = rothschild rag

Tue, 10/25/2011 - 12:49 | 1808794 JR
JR's picture

When Larry Summers said in a speech allegedly in the post abyss: “We were at the brink of catastrophe at the beginning of the year, but we have walked some substantial distance back from the abyss,” according to The New Yorker “It sort of depends, of course, on who Summers means as ‘we.’

“If it’s Goldman Sachs, then, yes--broke in October of ’08 and in October of ‘09 the fifth largest bank in the United States, thanks to taxpayer bailout via the Federal Reserve that signaled in ’08 'that it will not let Goldman or Morgan fail.'”

Tue, 10/25/2011 - 14:19 | 1809267 maddogs
maddogs's picture

And we know how Goldman engeneered Greek Debt... speaking of which.. did Greek Bank runs start today?

Tue, 10/25/2011 - 13:58 | 1809140 Widowmaker
Widowmaker's picture

Make no mistake about it, these guys are 100% bank sluts, 100% of the time.  American people be damned.

Let's see, record bonuses - Check.

Consolidated power of banking - Check.

Dramatic increases in systemic risk through consolidation - Check.

Slaughtering the savings of elderly and young alike spanning 2 generations - Check.

Record bonuses for year 2 - Check.

Fraud and failure rewarded, nothing changed but more fraud hidden - Check.

Collapse of a republic to fascism - Check

More fascist financial abortions to give the economy "life." - Check.

Complete unawareness fascism has got control of your entire life through your fucking fraud money and dirty Sam is on fascisms side (TBTF) - Check is in the mail.

Where is Rahm Emmanual after throwing Obama under the bus?  Oh yeah, trying to distance himself from DC so that he can come back and scratch all the itches he created.  You read it here first.

 

Tue, 10/25/2011 - 12:35 | 1808712 dcb
dcb's picture

please excuse my language, but every fuck who got us into this mess Obama put back in charge of getting us out. it is his single biggeest failure a a president and the reason I am not going to vote for him again. Plus if it wasn't them, it would have been another ass with exactly the same ideology from the same pool of idiots. since the are so beholden to the status quo and the revolving door whey have no incentive to fix any thing, and since they were involved in causing the crisis, they have only an incentive to cover up thir mistakes. God forbid Obama should have appointed an outsider that warned of the dangers.

 

I am not a republican, but Obama makes some of the biggest crooks in history look like boyscouts.

Yes they should have crimes against the economy. It's worse here than in a communist country in some ways, these screw ups would have been removed in a communist country (most likely shot in the head for their screw ups. In the unite states they just are kept around. It's a disgrace

 

Anytime I hear about how Bernake saved the systm I want to puke. it's like saying the mugger who shot you called an ambulance and now you hero worship the guy. It's like the bush wmd propaganda. they say it over and over so they can justify keeping him there. these guys are the cause, and they should never been part of the solution, but should be in a labor camp in siberia

Tue, 10/25/2011 - 14:13 | 1809242 Westcoastliberal
Westcoastliberal's picture

In total agreement DCB; I second.

Tue, 10/25/2011 - 14:24 | 1809288 weinerdog43
weinerdog43's picture

Totally agree.  Thanks for nuthin' Barry.

Tue, 10/25/2011 - 12:23 | 1808636 4horse
4horse's picture

#OWS and american citizenry need to immediately arrest this cohort from such rubin,summers,inter alia right on down through their collaborationist bankers --known knowns in their names, identities, institutions and criminality-- before they can ever hope to move up into that ruling echelon whose many pnac,aipac,ipecac projects do use all their vicious ilk not just as hired hands but assassins --economic hitmen-- who americans Must Now finally and at last comprehend only serve the further and further crimes of this OneInternationalMaster --and MassMurderer-- which alone proves again and again that it will not stop seeking and achieving its 1Goal: Control. CONTROL. whose tactics, strategies, strongarm, extortion, iniquity, slaughter and insanity can only drive yet again toward WorldWar  .  .  .

unless, First, and absolutely Necessary, its many footsoldiers and mad automata are NOW Named, arraigned, tried and prosecuted in open court for what already constitute worldwide, And Intentional, warcrimes against innumerable humanity

 

 

so many of our lost brothers and sisters

Tue, 10/25/2011 - 12:22 | 1808631 apberusdisvet
apberusdisvet's picture

 

One of my  fondest dreams is to have a video showing Summers squealing in prison as his "deliverance" moment comes from Bubba and the gang.

Tue, 10/25/2011 - 12:12 | 1808587 anony
anony's picture

Why is it that our vigilantes let Larry Summers, among others, continue to breathe?

If it is not clear by now that there is a cabal of well-connected jewish bankers at the pinnacle of the food chain, permitting Summers and others to remain in their airee after multidinous and globally ruinous financial maneuvers, I don't know that it will take to convince the world that shit floats.

 

Tue, 10/25/2011 - 12:27 | 1808656 eatthebanksters
eatthebanksters's picture

Summers has been a walking shitstorm from the beginning.  Bad advice to Clinton resulting in deregulation and the repeal of Glass Steagal...fucked up as president at Harvard University and fucked up again as Barry O's economic advisor.  Time for Summers to go on vacation.

Tue, 10/25/2011 - 12:11 | 1808585 Clowns on Acid
Clowns on Acid's picture

Summers role in the housing / credit crisis is small when compared to Robert Rubin, Sandy Weill, Robert Reich, and enabler in chief Bill Clinton.

Summers et al may have demonized Brooksley Born, but Barney "he made me bite the pillow" Frank and Chris "brown bag" Dodd continually thrawted any attempts at de-leveraging or privatizing Fannie and Freddie.

This is an easy historical book to write.

 

Tue, 10/25/2011 - 17:11 | 1809965 earleflorida
earleflorida's picture

weill [citi/traveler's = citigroup] calls rubin shortly after traveler's deal and subsequent passage of 'gramm-leach-bliley act [modernization act]' ,...

rubin pauses, and responds - you bought the f---kin  gov't

only chuckles on other end

"Believe It Or Not" in 2025 edition

Tue, 10/25/2011 - 13:48 | 1809111 Enkidu
Enkidu's picture

...and Obama took his advice...

Tue, 10/25/2011 - 12:12 | 1808571 Mercury
Mercury's picture

Summers argues for more debt and lower lending standards to boost the US RE market in Sunday's FT: http://www.ft.com/intl/cms/s/2/bb228716-fb51-11e0-8df6-00144feab49a.html#axzz1bWnXuPrk

Pretty much every single sentence in this editorial is false.   What a dangerous buffoon this guy is.

 

Tue, 10/25/2011 - 12:18 | 1808617 AccreditedEYE
AccreditedEYE's picture

It's not being done by accident Merc... these traitors know exactly what they are suggesting.

Tue, 10/25/2011 - 12:06 | 1808569 vegas
vegas's picture

Summers is part of the political elite; immune from criticism and/or judgement. All that matters is that his "intentions" were good. Take Summers, Dodd, Bawny Fwank, Rains, et al and hand them over to the Libyan Rebels for justice. See what happens then. All these asshats made hundreds of millions in the housing scam; nice work if you are connected enough to get it.

Tue, 10/25/2011 - 13:13 | 1808950 Problem Is
Problem Is's picture

Distinguishing characteristic of the US ruling elite and political class under Crony Capitalism...

Always failing upwards...

Tue, 10/25/2011 - 12:06 | 1808562 tamboo
tamboo's picture

virtually every name mentioned is yet another infiltrating nation wrecking bagel muncher.

Jew Watch - Jewish Banking & Financial Manipulations - Or - How to Own Everything Everyone Else Built

 

 

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