Banker Bailout

Europeans are irked, miffed and rankled at Tiny Tim Geithner's stern warnings against the eventuality of a Euro-Crash.

"I found it peculiar that even though the Americans have significantly worse fundamental data than the euro zone that they tell us what we should do and when we make a suggestion ... that they say no straight away,"

They say they don't need his lectures, and they're probably right.  They seem to be doing a hell of a job on their own, although they will gladly accept our money to keep the scheme afloat awhile longer.

The latest round of American financial assistance came Thursday with a promise by the Federal Reserve to swap as many dollars for euros as European bankers need.

Make no mistake.  This is a Banker Bailout, at US Taxpayer Expense

We The Taxpayer will pay for this by paying more for everything as the value of the dollar continues to erode:

But over the long term, consumers could feel the impact of central bankers flooding the financial system with cash, according to John Ryding, chief economist at RDQ Economics.

If Greece and other unstable economies collapse, Goldman Sachs and their international partners in crime would suffer catastrophic losses, and we can't have that!  So you and I watch our savings continue to be eaten away by these rats and cockroaches, while prices climb, all so Tiny Tim can send Europe all the dollars it needs.

They are propping up a rotting edifice.  The foundation has been eroded by rent-seeking rats and moral relativists.  The walls are shot through and the roof is sagging, threatening to fall in at any moment.

Collapse is inevitable.  Maybe all at once, or maybe piece by piece.  A credible argument can be made that it has already started.  Does anyone in their right mind really think Greece, Greece! can pay all that money back? Really?

The Economist explains The Cost of Break-Up.  Experts conclude that more borrowing is the only answer.

It is a bad sign when the only remedy the wizards can come up with is more of what got you in trouble in the first place.

Bloomberg - End The Fed's Dual Mandate

Wall Street Wilding

Illustration by Ian Michael Rousey & Chris Nosenzo

Read it and Seethe

What will it take for Americans to finally get the message that much of Wall Street, in its current form, is a corrupt enterprise in need of a top-to-bottom overhaul, a task that the year-old Dodd-Frank law, for all its verbosity, barely attempts? (Cohan - Ending the Moral Rot on Wall Street)

There have been numerous lawsuits and investigations following the Panic of '08... 

Each examination revealed layer upon layer of behavior that should make us seethe with anger. These include the decision to manufacture and sell mortgage-backed securities that were stuffed with loans of questionable value, plus the worthless AAA ratings placed on them by ratings services paid by Wall Street to do so.  (Cohan - Ending the Moral Rot on Wall Street)

He goes on to list the multi-million dollar fines happily paid by these immoral disciples of Moloch.  Get it? A $500 million fine is chump change, merely a cost of doing business.  The Titans of Wall Street destroyed the world economy with their toxic debt bombs, governments brought low, people left destitute, yet the instigators of this financial destruction are happily earning record profits and getting reelected instead of rotting in jail or hanging from a lamppost.

Three Crises:  Financial, Political, Legitimacy of the Elites

Stratfor founder George Friedman has written an excellent analysis entitled, Global Economic Downturn: A Crisis of Political Economy.  In it he explains how the financial elites' unabashed immorality and naked greed caused the financial crisis, which in turn sparked a political crisis that is now becoming a legitimacy crisis.  The aura of invincibility and omniscience has evaporated; the masses realize that the venal elites don't know what the hell they are doing.

A sense emerged that the financial elite was either stupid or dishonest or both. (Stratfor)

In this excellent article he lays out how this international crisis started (the US carpet bombed the world with toxic debt), how it hastened the decline of the already teetering welfare states, and where he sees it all going.

It is vital to understand that this is not an ideological challenge. Left-wingers opposing globalization and right-wingers opposing immigration are engaged in the same process — challenging the legitimacy of the elites.

This, then, is the third crisis that can emerge: that the elites become delegitimized and all that there is to replace them is a deeply divided and hostile force, united in hostility to the elites but without any coherent ideology of its own. In the United States this would lead to paralysis. In Europe it would lead to a devolution to the nation-state. In China it would lead to regional fragmentation and conflict. (Stratfor)

He concludes, Like Victor Davis Hanson, that this is a crisis of legitimacy. The elites have blown it; we don’t trust them anymore.

When There is no Downside...

In the past, all of this would culminate in the masses hanging the bankers and the elites from lampposts and looting and burning their property.

Civilized society instituted the state, creating a nation of laws not of men. The state would hold everyone to the rule of law and punish the guilty in order to short circuit such violence. Well, the state has failed, the masses are in angry misery and the elites who robbed us and crashed the world economy pay no price whatsoever.

This leads me to rethink the limited liability concept of financial institutions.  It is obvious that the financial titans have no fear of consequences, since it is we the people who suffer their burdens, and that is the root of the problem.

Czar of Chaos

Creating Chaos… and turning chaos into a new order

Many conservatives miss the mark when evaluating this administration’s actions. We want to believe Obama really wants to do the right thing, but is simply misguided from his liberal past.

The truth is he wants to tear down our current system and implement his own. It’s not a matter of degrees of opinion on the future of this country; but instead a fundamental philosophy that desires to tear down the old system, then usher in a new socialist one.

In almost every area of federal oversight we can see Obama working to create problems in order to bring about a public reaction – with a liberal solution waiting in the wings. From banning offshore oil drilling to massive federal borrowing we see this administration sowing the seeds of trouble and chaos.

Meet Cloward and Piven

From the beginnings of the Progressive Movement it was seen to remake America into a “better” society, certain bulwarks had to be removed. Family ties, Christianity, the Constitution, and American culture as a whole had to be razed to the ground before a Socialist America could be constructed. In other words, the system had to be crashed. Then order out of the chaos.

The theory of creating a new order out of chaos was described by two liberal professors out of Columbia University named Cloward and Piven. The thrust of the theory was to overload the governmental system with welfare freeloaders, and out of that tumult a new socialist order could be constructed. Subvert… destroy… and then rebuild.

We can see this at work during the Great Depression. A created financial crisis… national suffering… a New Deal… and soon most Americans were suckling the government teat. According to Alan Simpson, “Social Security is a cow with 310 million tits!”

Speaking of the Great Depression, it was a manufactured crisis. Ben Bernanke admitted as much when speaking of the Federal Reserve of the 1920’s: “We did it… very sorry, won’t do it again”. The same names were at it then as today: the Federal Reserve and Goldman Sachs.

A Senate staffer recently told me a month ago the system was going to financially collapse. All of us around the table were slack-jawed to get this from officialdom.

The collapse of the entitlement state is coming into view. This year Social Security began to borrow to pay current retirees. To balance the federal budget without cutting Social Security or Medicare poses no obvious solution.

We have passed the point of being able to pay off our debts. All that is left is to wait for the collapse and a massive devaluation of the dollar.

I’ve never expected to collect social security and but a fraction of my military retirement. Instead, I’ve invested in hard assets like land, buildings, precious metals, and even base metals (like lead in 7.62 mm diameter).

Problem / Reaction / Solution

A societal manipulation technique by those in power is to first define an end-state solution. Then a problem is created (by a bureaucracy or useful idiots) that alarms the population and leads them to the end-state solution.

We can see this administration is adept at supporting rabble-rousers and troublemakers, from union thugs in Wisconsin to the Muslim Brotherhood. The administration even sent out Jimmy Carter and the DNI to exclaim the “Muslim Brotherhood is secular”. That doesn’t even pass the giggle test.

This President is still a community organizer at heart. I believe he wants to create a climate of financial chaos in order to usher his version of a New Deal II. A climate where the American people will cry out for a new solution. I believe the solutions Obama will offer will shred the Constitution.

Don’t fall for the Hegelian Dialectic, as fellow blogger Rev. Gregori reminds us. Let your fellow citizens know that a crisis usually doesn’t just happen, but is made to happen with a goal in mind. Fight back by supporting conservative causes that stall the “solution” offered by the administration. Write your congress-critter. Slow the beast down. Stall the plan. Frustrate The Man.

The Problem / Reaction / Solution process has a shelf-life. If it is slowed down, and the American people are educated, the whole dialectic falls apart. Those apologists for the “solution” are seen for the destructive individuals they are. They then will have a choice: shrink into the shadows or become oppressive. If they become oppressive, the mask is finally off and even more Americans will be woken up.

Hegelian Dialectic: "If you want to take total control over large populations, first you devise a solution to a problem that does not exist. Once you know that your solution will work, you then cause or allow the problem (or incident), for which you devised your solution, to take place so that you can implement your solution."

A question: Is there a group using Liberals as useful idiots to destroy America, in order to bring in something quite different than Socialism?

- Hugh Farnham

photo chop courtesy of Chicago Ray