Thursday, June 18, 2009

The Full Faith and Credit of Barbarians

The Federal Reserve pushed down the interest rate on Treasury Bonds by purchasing $6.5 billion worth on Tuesday. The Federal Reserve is buying huge blocks of US Government debt, there has to be a name for this in con-man slang; double shuffle, bait and switch? (any con-men or bunko cops please feel to enlighten us) They are issuing Federal Reserve Notes backed by the full faith and credit of the United States and using them to buy US bonds because nobody (even China) will buy them at an interest rate we can afford to pay. How much "full faith and credit" does the US really have?

Meanwhile Obama wants to give broad new powers to the Federal Reserve to regulate banks and other companies as it sees fit. Secretary Geithner is facing a skeptical Congress. Republicans broke into their usual chant of "no regulation at anytime, anywhere!" Democrats are skeptical about having the Fed regulate anything since they didn’t use any of the powers they did have to prevent the mess we are in now. Mr. Geithner is well aware of this since his former job was Governor of the New York Fed and it was he who personally who handed out 9 trillion dollars last year to keep the entire financial system from collapsing.

The question is, who are Obama and Geithner working for? The rumor is that giving the Fed new powers will result in new powers for the Congressional Committee that oversees the Fed. But the Bush Crime Family proved that oversight committees aren’t worth the powder to blow them to Iraq. In case anybody hasn’t heard the news, the Federal Reserve is a private banking system controlled by Wall Street bankers. Sounds crazy but it’s true.

Compared to Alan Greenspan, Bernie Madoff was stealing lunch money. There should be wholesale prosecutions. The question is why not? Is Obama afraid of panic or does he lack the power to go after these people. The top 1% own 90% of everything but most of it is paper and it would all go away if the Fed was done away with. The rich whine about paying all the taxes but in reality they are taxing us by their ownership of everything. None of it was acquired by hard work or even shrewd investment but rather by controlling the paper shuffle. They are so unconcerned with the creation of real wealth that they have sold that to China and Japan for more paper. It’s no wonder China and Japan consider us barbarians.

5 comments:

Anonymous said...

FROM MICHAEL H.
I do agree with you on the basic problem being that we have turned our backs on making things and I feel, we spend our time passing fake money around and that only works as long as everyone pretends the money is real. Now the Chinese among others have to admit that our money is fake and they have no choice to admit that our house of cards is collapsing. Just as the Soviet Union proved that their version of Communism didn't work, we have proved that our version of Capitalism doesn't work (pity we are too stupid to see that yet), our version of rugged manly survival of the fittest for the average person and small business and Socialism for the companies that are "Too Big to Fail". So companies that are too big to fail get to pay bonuses. Big bonuses provided by money from people that have no health care, crappy jobs, schools cutting back, no retirement but get to see that while they get to be rugged free market capitalists their tax money goes to people that are free market lovers...as long as they get to use tax money to save their companies from their own greed and mistakes and collect huge paychecks, pay massive bonuses while those greedy workers that provided that tax money have to make sacrifices to save their companies.

As you point out there is no indication that Washington is ready to face up to the changing conditions and will keep trying to patch a failed system yet another time. they will keep trying to patch until they are left sitting in a tornado hit trailer park, the junky trailers and trashy dreams all gone, a bit of rubble and litter scattered about and the "smart guys" sitting there still playing their game trying to pretend that nothing has happened...but then we might see some real change.

CONTINUED ON NEXT COMMENT

Anonymous said...

The problem is that the people with power, the people with money, don't want change, they want to keep this mess going as long as possible, like the person that cut the last tree on Easter Island, a mixture of...if not me, who will get it and the fear, the real fear that real change will change their positions of wealth and power. They view the "pie" is only so big so rather than try to make it bigger, they want as big of piece of that limited pie as they can get. They might be right on the limited size of the pie but they should keep in mind that when the great unwashed get too little of the pie...revolutions happen.

Will we revolt? I don't think so, the left has a touching faith that in the long run things will turn out okay since people should vote to protect their interests (all of them not just guns and abortion) and also vote in the interests of the common good. Touching but as we can see very misplaced.

The right revolt? I don't think so. Plenty of lone nuts driven by Fox News and the nuts on right wing radio and the gun nuts that are sure that Obama will come to their house in person to pick up their guns. But will the right go out in mass and revolt? I don't think so. Look at the "Tea Baggers", people on Social Security complaining about government waste and spending... Nuts, flakes and I guess a few self hating fruits. I think a right wing in the streets revolution would not happen for a few reasons. First of all they are the followers, for all their talk of the "Loyalist" tradition going back to our revolution, they would have been on the side of the Crown for crying out loud! Second, the military will most likely remain loyal to the person in the White House, the military get the orders to clear the streets and the valiant and brave Right will go home, NASCAR hat in hand, saying..."Yessir Boss". Third, their leaders have no real guts. Think back to Vietnam. Look at them, Rush could not quite recall why he wasn't in Vietnam. National Review would run articles about how important Vietnam was and how bad the draft dodgers were and the people that spoke against the war...how un-American! How many of Bill B's kids fought, got Air Medals for missions, or Combat Infantryman's badges or were in Vietnam or even in uniform, military uniform at that time. With his influence they could have served in other ways but they didn't. Vietnam was important but not so important for most Conservatives to risk their lives or their kid's lives.

Anonymous said...

One other problem is the cynical use of certain issues by both sides to have the great unwashed ignore the real problems. Birth Control, Abortion, Immigration and Guns. I got my own views on all of them. To me it is simple, More real birth control means less abortions, abortions should be very rare but obtainable but we need to really work to make that happen, the pixie dust approach of "Just Say NO" isn't going to work, hasn't worked yet so I don't think it will start working anytime soon. Immigration. I think that our present system is also a cynical system that hurts legal workers, the undocumented drive down pay and working conditions for the documented. Just recently a company doing repair work on airliners for major airlines has been complaining about at lack of qualified workers as they lay off Americans and bring in foreign "scientific technicians" that by some strange chance work for half what they were paying Americans. One element of that is that some of the new workers have bought their licenses and don't read or speak English. So how do they read the manuals and how do the supervisors and inspectors communicate with them? Heck, I know we can't deport all of them but unless the laws have real teeth to make it expensive to hire undocumented workers the problem will keep going on.

I have no problem with documented workers and I also feel that as a start we should tend to have policies toward immigration that reflect some of the policies that other countries have. If an American can't get a visa to work in that country...then a citizen of that country is going to have problems. That of course cannot be the only factor in our immigration policy.

The best used one...Guns! I've got guns, a mess of guns are in this country and it isn't a worry to me. Yes, there is a problem with nuts getting guns, but transferring a gun isn't as easy to do it legal as one reads. However if more effort is made to enforce the laws and to nail people to the wall that do violate the laws some of the casual passing might stop. On the other hand there has to be some reason in the laws. I go out and by a gun on sale, since the price it right. I do the checks and pass them and pay the fees. I see another rifle I want the same week or day...I have to pay the same fees and pass the same checks. What a waste! Maybe you should have to take a driver's test for each ticket you get, you must be doing something wrong to get a ticket soo...get a ticket...have to pay the fees and take the tests again to prove you should have a license. Makes almost as much sense to me. How am I going to suddenly go "bad" in 24 hours? Add to that I have a permit to carry. That according to the law could be used not require a background check but it doesn't work that way. Really enforce the firearm laws that should be enforced, quit making the laws look stupid when the don't really need to look so stupid and quit demonizing firearm ownership: demonize the people that misuse them like we demonize smokers, drunk drivers and drug users (another topic, for a war that is doomed to fail by fighting the wrong war!)...or not to your taste.

Maybe we should be proactive? Smoking causes medical problems so...take them away. Drinking can lead to problems so step in early, like when a person steps out of the bar or out of the store with a six pack? Bad driving, miss a stop sign or speed, take the car and the license away since all of those things could be taken as a sign that they will do something wrong sooner or later.

Anonymous said...

CONTINUED FROM ABOVE
Yeah, I know they do a lot of harm. But I worked as a pilot, some think not the safest job in the world. But in my 57 years I have had one friend shot (he lived). None die in drunk driving accidents, a few die in plane accidents, none passenger carrying, one in freight and a few in general aviation and two skiing and that was in one year! Shut down skiing? People die from it, people kill, seems each year we read about a few idiots either on skis or on a snowboard doing something stupid and killing someone else...but no outcry to really change skiing. Look at the real costs of a ski resort or a golf course. A lot of things cause a lot of harm and we actually endorse and encourage some of them, so let's ignore those things and find something to divide us.

Heck, I live near Portland Oregon and I figure I got a better chance of being hit by a bike rider than any other accident.

But the fact remains that those issues are not the real reasons we are in our current mess and "solving" those will not solve or really help our current problems but they do some very valuable things for both parties: they get people excited so they work on campaigns and contribute and they get people to ignore the real problems and the real issues.

Great Blog!
Michael H

THANKS FOR THE COMMENT, prairie2

Anonymous said...

It looks like the masters of the universe have outsmarted themselves. Water, water everywhere and not a drop to drink.