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Paul Craig Roberts: The Cancer Of Financial Repression (And Why You Can't Do Anything About It)
Submitted by Gordon T.Long via Macro Analytics,
Dr. Paul Craig Roberts is extremely meticulous in examining the central problems facing America and the developed economies today. You may not like nor agree with what he says but there is little double as a former high level Treasury official, academic professor and Wall Street Journal editor, that he knows what he is talking about.
FINANCIAL REPRESSION
"It is going on on several fronts conducted by different people for their own agendas, though they all seem to be mutually supporting.
- FINANCIALIZATION OF THE ECONOMY by the Big Banks. - "What that means is that they are converting the entirety of the economic surplus to paying interest on debt. They are draining the economy of all vitality! There is nothing left for the expansion of consumer demand, business investment and old age pensions. It expropriates the economic surplus that is created beyond the maintenance of the current living standard into interest on debt."
- OFF-SHORING OF MIDDLE CALLS JOBS by Corporations & Wall Street - "What the Corporations and Wall Street have achieved by off-shoring manufacturing jobs and tradable professional job skills such as software engineering & information technology. What they have done by moving these offshore is to recreate the labor market conditions and wage exploitation of the late 19th century."
- MANIPULATION OF THE BULLION MARKETS by the Futures Market Bullion Banks - "There is no free market in the futures markets. These are markets that are manipulated."
COLLUSION BETWEEN PARTICIPANTS
"I think there is a lot of collusion. For example the government colluded with the banking system in financial deregulation. For example they repealed Glass-Steagall. They expressed this absurd claim that financial markets are self regulating."
"They turned the financial system into a gambling casino where the bets are covered by the tax payer and central bank."
The cancer which started in the US Financial System has spread globally. The carriers of the cancer has been the International Banks.
WASHINGTON ANSWERS TO WALL STREET
"Some of the Financial Repression is collusion of government serving the financial interests because Wall Street is a huge supplier of political campaign funds which you are highly dependent on to get re-elected. So you answer to the donors. You don't answer to the public interest. It doesn't give you any money."
"You answer to:
- Wall Street,
- The Military-Security Complex,
- The Agri Business like Monsanto,
- The extractive Industries (Oil, Timber, Mining)
These are the powerful interest groups that use the government to serve their interests."
THERE ARE NO LONGER COUNTERVAILING POWERS IN WASHINGTON
With the destruction of the manufacturing jobs in America through off-shoring, it has reduced the power of the unions and destroyed the Democrats independent source of campaign funds.
"You now have two parties with the same head and reporting to the same masters. There is no longer any countervailing power"
You no longer have the Democrats supporting workers against the Republicans supporting business. Both parties represent them.
"This is the reason you can't do anything about Financial Repression!"
NEO-CONSERVATIVE CONTROL OF FOREIGN POLICY - $6T TRILLION IN WAR DEBT
We have been in 14 years of wars and added $6T of national debt to finance these wars "without adding five cents of investment for the country having taken place."
"We now have the Neo-Conservatives driving the conflict with Russia (which is insane), with China (which is insane). The United States doesn't have the power to try and dominate Russia / China. Especially now that the two countries have a strategic alliance"
"You have much of the world turning away from the United States because of Washington's
- Abuse of the Dollar as the World's Reserve Currency,
- Abuse of the dollar based payment system,
- Imposing unilateral sanctions which are acts of war,
- Threatening people with expulsion from the clearance mechanism and people saying we won't have any part of this,
- The BRIICS establishing their own version of the IMF,
- The Impact of the Spy Scandals and people saying they will build their own internet,
All of this is not only going to effect business it is going to effect American power. It is going to start shriveling!"
"If you have these crazed Neo-Conservatives demanding control of the world, faced with declining power, you don't know what they will do! It is a very, very dangerous situation. I'm surprised it has taken the world so long to realize the threat the US poses to the rest of the world."
"The US Dollar payment system is essentially a system for looting. This, Globalization and Neo-liberal economics are tools of American economic imperialism. Countries are beginning to realize this. The looting of countries by American imperialism has now reached the point where it is turning on itself - Greece for example."
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PCR is right on all counts -you're just too lazy and/or stupid to figure it out.
Mr. Roberts conclusions about ISIS among other things are now being confirmed by MSM each day, for example in this mornings news.com...
http://www.news.com.au/world/middle-east/experts-say-that-certain-parts-...
Without QE and ZIRP the fracking 'miracle' would not have happened and without that surge in production we would not be having this discussion.
Shale oil has helped fend off peak oil for 7 more years but I suspect we are about to slam into the wall.
With oil at 50 bucks shale makes even less sense (even with lots of cheap money available) so as we are seeing the industry is withering.
Meanwhile keep this in mind --- conventional oil production having peaked in 05 will have reduced further since then --- and without the pellmell dash to pump as much shale as possible out of the ground --- peak production of all types of oil is imminent.
Here are some other articles that explain what we are up against:
THE DECLINE OF THE WORLD’S MAJOR OIL FIELDS
http://www.csmonitor.com/Environment/Energy-Voices/2013/0412/The-decline-of-the-world-s-major-oil-fields
Why the Oil Industry is Running Into Major Trouble
http://www.nakedcapitalism.com/2014/06/joe-costello-oil-industry-running-major-trouble.html
FORMER BP GEOLOGIST: PEAK OIL IS HERE AND IT WILL ‘BREAK ECONOMIES’
http://www.theguardian.com/environment/earth-insight/2013/dec/23/british-petroleum-geologist-peak-oil-break-economy-recession
THE TRUTH BEHIND SAUDI ARABIA’S SPARE CAPACITY
http://www.forbes.com/sites/greatspeculations/2011/03/04/the-truth-behind-saudi-arabias-spare-capacity/
Oil and gas company debt soars to danger levels to cover shortfall in cash
http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/11024845/Oil-and-gas-company-debt-soars-to-danger-levels-to-cover-shortfall-in-cash.html
If you are of a religious bent -- best you make peace with your maker. Alternatively I'd go with wine, women and song --- as much as possible in the little time that remains
I'm fine with $50 oil shutting down fracking. It destorys the earth. I don't care what it does for employment or the economy.
When total oil production peaks you won't have to worry about the earth being destroyed. You will be more worried about what you are going to be eating for your next meal.
Boone Pickens stated on an cnBS interview a couple of months ago that without shale we would have collapsed by now.
Be careful what you wish for my friend.
It's interesting to me that you think "religious" people don't enjoy wine, sex, and song. Wake up old-timer.
Roberts is no friend of free markets. I get the impression he's a liberal Christian.
I get the impression you're blind,deaf & stupid
Hey, I was gonna say that. No fair!
I want to bring something to everyones attention that isn't exactly on topic to this article, but isn't entirely off topic either.
As everyone knows, the predators-that-be have taken endless steps for the past three or four decades to convince every individual to get deep, deeper, deepest in debt. Recently the mantra has been to jack debt to totally insane levels via people to:
#1: borrow for college.
#2: take out long term car loans.
#3: play the stock market on margin.
#4: borrow against any equity they have.
#5: borrow while interest rates are so low.
Now, think about what happens when virtually everyone has gotten as deep in debt as they possibly can on historically low interest rates.
We already know being deep in debt greatly reduces economic activity, because so much of current income must be directed towards making debt payments. This puts almost everyone up against their financial limits every month. Almost nobody has any "slack" or funds to deal with unfortunate situations.
-----
NOW...
What happens when the predators-that-be create a situation that zooms interest rates into the stratosphere?
Partial answer: huge numbers of people literally cannot pay all their bills. The banksters and vultures will swoop in, take their assets, impose enormous penalties and/or interest rates that assure destitution for the rest of their lives, and who knows what else.
The predators-that-be have created a situation where almost nobody will be in any position to resist their onslaught. Which is, I believe, one of their reasons for doing things the way they've been doing them.
You are living in the twilight zone my dear.
What do you think a used car will be worth to the vultures when the economy collapses under the weight of massive subprime lending?
Give your head a shake.
The central bankers know that what they are doing is suicide. You need to look deeper.
Why commit suicide? Maybe they know we are already dead and they are trying to keep us on life support a few more years
Sure, the vultures won't much care for used cars, but people own more than used cars. Also, the banksters are not committing suicide, they are trashing most everyone else to their benefit, since they will repossess whatever they wish, and have everyone else in huge debt for the rest of their lives.
These problems do not harm the predators-that-be and banksters... they're not the ones in debt.
And yes, there are deeper levels, some of which are what they gain by putting everyone else in so much debt they have no financial flexibility to defend themselves, either financially or physically.
Ann. repossession of assets is not possible without someoneone (law enforcement) or some thing (government/courts) to do the dirty work. As for real estate, how many homeless people will it take to start a bonafide civil unrest scenereo? Is it not possible that the banks simpy collapse under the weight of insolvency? Mooreover, what happens to property tax revenue on those foreclosed properties? Government as the enforcement arm of contracts may find itself unable to maintain the system while at the same time dealing with massive civil unrest.
I have said it before on this site. The USA is headed straight for another bloody horrible civil war. When the free shit crowd gets cut off, the police State will go into full frontal retard mode. Normal commerce is going to fall off the edge of a cliff which means excises collected from those activities goes off the same cliff with it. Unemployment rockets past 50%. Parroll taxes go off the same cliff. Governments in debt and starved for revenue facing massive civil unrest and a humanitarian crisis. The banks assetts are taxable property to the State so watch for those taxes to go through the roof as the government fights for control of siezed property for past due taxes. Meanwhile, tax revolt becomes unavoidable adding more fuel to the fire. The effects of martial law accelerate corporate failure. Would these corps themselves become enemies of the government as the only means to survival? Or would they choose sides based on which side of the public trough they were feeding from? I have a feeling we are not going to have to wait long to find out.
In previous history, the predators-that-be was more rigid - they tried to pretend they had moderately consistent rules (laws) and moderately consistent enforcement.
Today, all pretense is gone. And so, as worse, worser and worsest events occur, the modern crop of predators-that-be will feel utterly unconstrained by law, rules, scruples, fairness, convention or anything else to get what they want.
Everything you say... should happen. Hell, honest, ethical humans should have exterminated the human predator class decades, centuries, even millennia ago. BUT THEY DIDN'T.
Consider the civil war, for instance. One justification was "freeing slaves", but what ACTUALLY happened was to decree that every biological human is responsible for a newly created fictitious entity subject to unlimited control and association with the federal corporation. By which, everyone alive and to-be-born became a slave (arguably excepting 23 or so humans who never got a birth certificate of signed ANY piece of government paperwork).
But the biggest problem is... human beings may get pissed, but they NEVER GET IT. So whatever happens, the result will be the old shell game again. Rather than throw off the predators who call themselves government, AND declare earth a "government free zone" AND declare "government is a fiction and shall not be taken as something real" AND declare "authority is a fiction and inherently impossible"... humans will simply replace existing predators with new predators, and a few of the existing fictions with new fictions.
And so, nothing fundamental will change.
Yes, we shouldn't need to wait long to see this plays out. In fact, we have been observing how this is playing out for years. These actions are not one-day events, though possibly this time they will be (all out global thermonuclear war). That will be fun. NOT.
No question "something will happen". I just don't think people realize how well the predators-that-be understand human psychology, and how well they know how to control it, guide it, and take advantage of it.
But also, there's the point of my message. Part of their plan is to make sure almost nobody has any financial or logistic wherewithall to fight them OR to protect themselves. Which more-or-less assures the current predators will remain on top.
Destroying the purchasing power of a nation's currency will leave the citizens destitute, unable to pay for basic necessities. Exchange rate for USD against yuan or ruble, whatever would be accepted would leave most people with nothing. Those who have saved and invested wisely may hang on for a few months longer than the rest of us but when the banks refuse to accept USD for our mtg, the homes are going to be left empty. The chaos from this business plan will lead to crime sprees. Finding your home burned to the ground along with your entire city block is what I see. Off to the FEMA camps and one piece of luggage per person. Speaking of FEMA camps, they are operational, fully staffed and complete with coffin liners, large pits, cyclone fences and razor wire pointing inward - you will not be able to leave.
Add to that - a debt to the banks and a few foreign nations - you may see Debt for Nature deals which render the land you live on seized via eminent domain. This is a variation of what has happened in the past. When the BANKERS et al blow up the stock market or the Ponzi scheme to re-enrich themselves - because being the richest people in teh world requires a millions just ot maintain homes and staff, the transfer of wealth will leave millions dead including any collaborators and witnesses to the event. I call it covert war.
"THERE ARE NO LONGER COUNTERVAILING POWERS IN WASHINGTON"
... During the last couple of weeks,
I have become fond of this phrase:
There is nothing but
organized crime, and
controlled opposition.
Just how horrible that situation could become was expressed by a previous comment from GMadscientist, that quoted: "I can hire one half of the working class to kill the other half."
the zone tv ads are so repulsive
and repugnant
mind fucking i may have
to leave to prevent further
brain damage.
p
As far as the Neocons and the war debt, Clinton made the case for war, Bush enacted it and all the Dems VOTED FOR THE IRAQI WAR. Is Obama a Neocon?
USA has not Proven:
- Ability to End Wars
- Strategic superiority in War & in Dominating large Nations
- USA is a poor Example of Military Strength since it has no exit strategy in all conflicts
- It says it is attacked or nearly so, but has no solution after military operations (looks like the permanent war is over resources instead of threat)
- This would be a Replication of China's Strategy in Tibet
Wow, USA imitates China, here is the Proof - what you think US State Department negotiated with China, but was not Corrupted??
What goes around, comes around. Corruption.
Watch the Info Mecial on Pressure Cookers.
- Fraud and Deception
- Claim is that you place beef or chicken wings in the pot and cook for 20 minutes and pour out finished meal without Fat... well that is what the pictures shows
FTC, Where the hell are you!!
FTC, don't you have a mandate on Fraud in Advertising??
FTC, your Job is to Protect the public from Corporate Fraud, RICO, False Claims... there is no way you can cook Beef or Chicken Wings without pouring tons of fat out of the pressure cooker... as described by this commercial
GAO, What the Fuck are you doing??
Oh, USA has to look like Greece? Is that it?
GAO, probably home of Military Cock Suckers, you damn sure don't enforce any laws.
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--- Teeth's US Dream Anthem --
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- It is 1 Minute to Midnight: Neo-Feudal Debt Slavery & nuke war
- Problem is Bankers, Politicians, Lawyers & Judges
- Failure of Self Regulation of Bankers, Politicians, Lawyers & Judges
- US Constitution is Usurped, Gone are Budget Powers, Legislative Powers, War Powers
- Money has taken over the Government, Banking, Universities, Science
- American Dream is over, Corruption is the same in all Countries now
- Old American Dream may serve as basis for new Country someday
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--- Teeth's US Dream Anthem --
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It's not that we can't do anything about it, it's that we won't do anything about it until it's already too late.
Nearly everyone I know is sitting patiently, waiting for their inheritance and spend their days counting the money and assessing their parents health.
Deer missed her Gore Don't long - Editing miens more then ruining a spill Czech her.