America, while you slept, your country was stolen from you. Your country was absconded by all the political misfits and corporate criminals that the disenfranchised former Republicans and Democrats have been trying to warn you about during the last several years.
Laws, originating out of New Deal legislation, written in response to the Great Depression, provided some measure of prrotection for the American financial system from the unsavory forces which led to its initial demise in 1929. In 2008, corporate greed, governmental corruption and a populace who is asleep at the wheel, has succeeded in achieving what historians will someday label the “Greatest Depression of 2009.” History will also show that the destruction of the late, great American economy was entirely self-inflicted.
If Americans knew their history, then we would be cognizant of the fact that one of the prime causes of the Great Depression was due to stock investors buying shares on margin (i.e., loans). Glass Steagall Act protected Americans from this shady practice by separating commercial banking from this investment practice of stockbrokers. However, with one stroke of his New World Order pen, Bill Clinton’s repeal of the Glass-Steagall act opened the flood gates for the domestic AND foreign infusion of bad credit into both our stock market and banking system. Consequently, both industries stand upon the precipice of collapse in what is quickly becoming the most massive wealth transfer in world history. .
On September 30, 1999 , Fannie Mae and Freddie Mac sought governmental permission to “relax” (i.e., break) the prudent governmental regulations on sound lending practices and begin to make loans to individuals who were not credit worthy. This spelled the death of the mortgage industry as we once knew it.
The Uptick Rule once prevented companies from crashing due to large scale shorting of company stock. A company’s stock could not be sold short as long as it was in continuous decline. Short sellers had to wait for an uptick in the stock before engaging in shorting. The Uptick Rule was retired in 2007 and the rest, as they say, is history. The elimination of the Uptick Rule is like going to a basketball game and not being able to see the scoreboard. Who’s ahead, who’s behind? Nobody knows but “Ladies and Gentlemen, place your bets!” What is your stock portfolio worth? Who knows? Who cares? Somebody wealthy is getting wealthier at your expense and you and your middle class investors are none the wiser.
The rapid increase in the price of fuel during the last year is a good example of the destructive nature of the derivative market. Most of the price gouging which resulted in unprecedented increases in gas prices, and record oil company profits, was due to speculation in futures especially by Goldman Sachs which just happens to be Treasury Secretary’s Henry Paulson’s old company. Today the derivatives market is collapsing. Derivatives are not stocks or bonds or anything of tangible value. This is the ultimate money game in which paper derived from other paper, such as futures and options, has served to bolster the balance sheets on Wall Street. Futures and options are exchange traded derivatives, but the largest group of derivatives is not even traded on the exchanges. These are called “counterparty derivatives” and consist of such financial entities as mortgage backed securities and credit default swaps. It is estimated that total derivative exposure of the financial system is between one quadrillion and one and a half quadrillion. A quadrillion is 1,000 trillion dollars and it has largely collapsed. The entire Gross Domestic Product (GDP) of all the world’s countries in 2007 was approximately 60 trillion dollars. GDP is an economic terms for everything that is produced for sale. The American middle class is being asked to bear the burden of the entire derivatives market which totals over 16 times the net value of the entire planet. Seven hundred billion dollars will prove to be what historians call “Bail Out Number One” because it does not come close to covering the shortfall. Where do you think the bail out money will go? Ask yourself why so many corporate heads are building homes overseas? Why did George Bush build a 100,000 acre ranch in Paraguay? Why is NORTHCOM, a combat organization, engaging in urban riot control training this month? Are we to believe that all of these factors are unrelated? It is looking more and more like the bail out is actually doing what the name implies. Are we being asked to fund the getaway gifts for those that have stolen so much from the American people?
If we let Congress approve the bailout, this will mark the beginning of an American feudal economic system in which you and I are the serfs!
Earlier this week, America spoke with one voice: “NO BAILOUT FOR THE CROOKS.” “Let Rome burn” was the prevailing feeling. We cheered as the House of Representatives voted down the attempt at further fleecing the American middle class. If the middle class is going down, then so should the Wall Street crooks who put “Mainstreet America” in this predicament. Despite this victory for the people, most Americans were disappointed that the crooks and the corrupt politicians, who put America in this dilemma, were not going to prison.
The no-bail-out-victory of the people was indeed short lived. Today, the House, once again will vote on new bail out which could be labeled “Meet the new boss, the same as the old boss” in which our corporate masters are determined to have their way with the assets of American people.
Today, as we once again rise with one collective voice (202-224-3121), we need to demand that our privately owned central bank, The Federal Reserve, be nationalized. Who do you think is receiving much of the proposed bail-out? The owners of our money have lost much of their collective assets and now they want you to pay for their greed and corruption as many of them prepare to exit stage left.
If we are to experience a depression, let it begin now but lets make sure that we invite everyone to this party, especially those who caused this calamity. Before we write America's eulogy, let’s make sure that we install a system that can rebuild our great nation and not just keep handing our corporate masters a blank check while we wallow in poverty. We need to eliminate the Federal Reserve System by nationalizing it and giving control of our money system back to Congress where it is constitutionally mandated to provide legal oversight.
Today, when you call your congressional offices, remind them that if we can nationalize Freddie and Fannie, we can certainly do the same to protect what little we have left by doing the same to the Federal Reserve. This bail out is ultimately for and by the forces associated with the Federal Reserve. And we may only be witnessing the tip of the iceberg. The bail out is only the first step in the economic madness. When the Bank of Settlement begins to assess the relative value of our soon-to-be devalued currency, I cannot even begin to predict the horror that will follow.
America, there is price for our collective ignorance and it is called enslavement.
Our moms were wrong, what you do not know can and will hurt you!