Hedge Funds Win, Puerto Rico Loses

The Corporatist Obama signed into Law the Puerto Rico Control Board legislation.  He always looks out for the welfare of his primary constituency...Wall Street & the Financial Sector.

Hey, Hedge Funds, here's a prime rule of genuine Capitalism:  if you make a good investment, you profit; if you make a bad investment, one that doesn't turn out well, you lose.  You claim to be capitalists, so live accordingly.  Here's a rule from common sense:  a loan that can't be repaid, won't be.

Of course, the Vulture Funds know all that.  That's why they practice and love State Capitalism and Crony Capitalism.  That allows them to get public infrastructure and other public resources privatized.  That allows them to raise fees and rob the public even more.  It also allows them to get "austerity" implemented, so pensions, health care benefits, and public services get cut (especially services to the poor)... so their bad investment losses get covered by State actions.  In a real sense, the Vultures get "Bailed-In"... with the crucial help of their political Cronies, and at the expense of the People.

All the above is one way that Neoliberalism operates.

Not only my opinion.  Be Well

The Political-Financial Complex

Ike was right when he warned us about the danger of acquisition of power by the Military-Industrial Complex.  Steve Keen, an Australian Economics Professor, is right when he warns us about the Political-Financial Complex...a term coined by him.

A perfect example of the Political-Financial Complex is as follows.  Not too long ago, a lobbyist for CitiBank essentially authored a Rider to a Legislative Bill in the U.S. Congress.  This was not just any old Bill the Rider was attached to---it was the Omnibus Spending Bill for the U.S. Gov't...if I recall correctly, it was a $1.1 trillion Bill.  The CitiBank Rider basically rolled back some protections that were in the Dodd-Frank law.  Dodd-Frank was nothing to write home about, but it did give some protection from out-of-control elements in the Financial Sector.

Mega Banks are major contributors to both Dems & Repubs in the U.S...at the same time; in other words, the Banks contribute to both Party candidates in the same election.  The reason for that could be innocent, but somehow I doubt it.  Then, too, we have estimates from a few different sources stating that in the 2016 national election cycle here, about $10 billion dollars will be spent by all major candidates.  That's not only a reflection of how debased the dollar has become; it's also an abomination.  It would be interesting to know how much of that total is/will be coming from Mega Banks.  At the end of 2014, five of the largest banks here had total assets of about seven trillion dollars.  Those banks are:  J.P. Morgan Chase, Bank of America, Wells Fargo, Citigroup (CitiBank), & U.S. Bancorp (U.S. Bank).  They could easily fund a very significant percentage of 2016 election expenditures.  [There are probably a dozen ways around rules limiting political contributions...if any of those rules still exist.]  I think it's very naive to believe that politicians are not influenced by major campaign contributions.  As someone (can't recall who) once stated,  "The Big Banks don't influence elections... they own them.".  Perhaps that's an exaggeration, but not by much.

According to CNBC, the banks listed above account for 45% of the banking industry.  Think: Sherman AntiTrust Act, Clayton AntiTrust Act, and Federal Trade Commission Acts.  Think: monopoly.  Think: common sense.  Since 2008, the "Too-Big-to-Fail" Mega Banks have grown by 37%.  So much for the politicians "protecting" us.  Those banks need to be broken up...ASAP.  Either that, or make banks public utilities. North Dakota has just such a public bank; it outperforms Wall Street while being heavily regulated.

All of this is not only a U.S. problem...it's a worldwide problem.  Those at the seats of public and private Power collude to convert publicly owned infrastructure into privately owned assets controlled by Mega Corporations.  "Austerity" is imposed on countries in order to save not their economies, but instead, to save the out-of-control Financial Sectors in those countries.  Banks weren't meant to be financial parasites engaged in speculating on bizarre, highly risky derivatives and other no-job-creating ventures.  They once served a legitimate, almost modest function:  servicing home, auto, and business loans.  The Mega Banks have become giant casinos... to the detriment of the Lower and Middle Classes around the world. Unfortunately, politicians everywhere aid and abet them.

Boycott Mega Banks.  They create almost zero new jobs.
Lobby to have them broken up.
Following the successful example in N. Dakota, lobby to have banks converted to public utilities. 

Not only my opinion.  Be Well

The Coup in Greece & Why it's Important to You

The new government in Greece was blackmailed by Oligarchs.  The Greek Gov't did not close the banks; it was the European Central Bank that did so.  Imagine if, for example, the Fed Reserve here closed all banks in the USA.  They would be re-opened only if our Gov't agreed to receiving a large loan AND the following:  raising taxes on everyone; cutting SS (which is paid for by every individual over the span of his/her working life); and selling off public infrastructure to mega corporations.  What do you think would happen?  I think our Gov't would cave in to the demands.

Those at the top of the hierarchy in the Euro-Zone, the IMF, Germany (the richest country in Europe), the European Central Bank, various hedge funds, etc. brought about the coup in Greece in order to continue Debt Bubble economies there and throughout the world.  Greece had been mounting what probably is the first democratic challenge in the modern world to the oligarchical, fiat money, central bank, debt bubble, false economic model, and wealth-transfer-to-the-rich SYSTEM.  It will be interesting to see what the Greek Parliament does now.

On Democracy Now tonight, it was pointed out that Goldman Sachs had been involved in a fraudulent way in getting Greece to qualify financially for the Euro-Zone in the first place.  Goldman apparently made a lot of money on the deal.  That was back when, of course, Greece had an entirely different government.  My point is that what's going on doesn't involve only the IMF, the Euro-Zone, the European Central Bank, and Greece.  Other mega banks are also a part of the whole scenario.

So, why should anyone care, especially anyone in the USA?  Here's why---

The situation in Greece is but one example of what's going on around the world relative to Neoliberalism.  Using various institutions (mega banks, other mega corporations, the IMF, the World Bank, the Bank of International Settlements, the WTO, "Free Trade" Agreements, governments, and others) and rampant Edward Bernays style propaganda, Neoliberals are ensuring the continuation of the largest transfer of wealth in history from the poor & middle classes to the super-rich.   Many methods are used, not the least of which is to make certain that everyone everywhere is in massive debt.  [None of this is a "conspiracy"; most all of it is in plain sight.]

Sooner or later, the worldwide Debt Bubble (public & private) will burst.  History shows us that all financial/economic bubbles eventually do so.  I imagine that Oligarchs either have, or are working on, some new system of money and economics.  Once the crash occurs, though, it may take months or more to institute that new system.

Until We the People in every country stop putting faith in deceitful politicians, this all will continue.  That's not pessimism, it's reality.  That means all politicians in all the traditional, major political parties in every country.  They've had their shot for hundreds of years.  In general, they have failed to enable a just and prosperous existence for all of us on a long-term basis.  It continually amazes me that people support these same, old, hack political parties and their dismal records.  They all, and that includes the Democrats in this country, work for the Super-Rich.

Not just my opinion.  Be Well

KUDOS to Greece...Again

The Greeks did it again.  They told the Oligarchs of the IMF, the European Bank (or whatever it's called), and the various other white-collar criminal frauds involved to stick it where the sun doesn't shine.  Kudos!  It's hardly a surprise--- what country would want to be forced into raising taxes, cutting pensions, and selling off their public infrastructure (to mega corporations) during a time of economic disaster?  I can't imagine that any government would want to do those things.

The Corporate Media here reported that Greece may be forced to issue currency that amounts to IOUs; the implication was that such action is foolish, almost unheard of, and would be disastrous.  Are you kidding me?  The Fed Gov't here in the USA does that every single day.  The USA, thanks to the Fed Reserve, is the largest Debtor Nation in the world.  Every single dollar in our wallets is a debt instrument, an IOU.  Our Govt's debt is so large that the principal will never, ever be re-paid... that is to say, the foreign debt portion of it.  All our foreign creditors know that.  They are happy to get just the interest... in perpetuity.  In our system, that's what personal income taxes are for... Gov't services are financed by other means of revenue, such as excise taxes, fees, impounds, duties, asset forfeiture, corporate taxes, and most importantly, more borrowing.

Every developed country that I know of utilizes a fiat monetary system.  The whole thing is a farce in terms of genuine money, but it's the system the world apparently has settled upon.  It depends on good will... nothing else.  I imagine that Greece has just as much good will as most other countries.  Critics might say that defaulting on a debt does not show good will.  I would respond:  that depends on how the debt is structured, the conditions of acquiring it, and whether or not the creditors involved have good will.  History shows that the IMF, for example, plays a Rigged Game... for the benefit of bankers and other mega corporations.  As far as I can see, no government should ever get involved with the IMF.  Ask South American countries about that... see what they have to say.

The Corporate Media here also imply that Greece leaving the European Union (or Euro-Zone, or whatever the Oligarchs are calling it now) would be an unmitigated disaster for the country.  Corporatists and their Media puppets love to promulgate the idea that life without economic zones, without the WTO, and without the Corporatist version of Globalization is virtually impossible.  What a crock of horse crap.  In my 72 years, I've never seen more blatant, Edward Bernays style propaganda.  It's completely disgusting, untrue, and designed to benefit the Corporatist Oligarchy and their sycophants.

The whole idea of Corporatist Globalization, the IMF, the World Bank, and mega banks in general is nothing but a scam and a fraud visited upon the "little people" (which is exactly what Oligarchs refer to the rest of us as).  Most of the common people of the world are awakening to that fact... despite the fact that the Corporate Media are unrelenting in their oligarchical, Bernays style, Corporatist, anti-democratic propaganda.

Don't believe any of it, Greece.  You can make it.  Most of the world loves you.  Cowboy up, and continue on.

Not just my opinion.  Be Well

Iceland & Greece Have it Right

Iceland is well on its way to a complete economic recovery.  Greece has just started, but is on the right path.  How are economies saved or returned to a healthy state?  The answer to that has several facets; the solution to the problem must be based on History, Logic, and plain common sense...as follows.

1.  Mega Banks are not the Holy Grail of Economics.  If they run their businesses into the ground by making bad investments, they should be allowed to fail.  Bailing out casino-type banks is a horrible idea... it saves the rich & powerful, not the economy.  The "too big to fail (and jail)" banks here in the USA became 38% larger than they were before the 2008 Crisis.  Most of them took their bailout money AND the trillions of dollars loaned to them at POINT 25 percent interest by the Fed Reserve and used it to:  give huge bonuses to top management; engage in more casino capitalism; loan money back to the Fed Gov't; increase their lobbying efforts in DC; and buy up other banks.  Did they create any jobs?  Almost none.  In general, Financialization does not create jobs or benefit the economy in the long term.

2.  Whether owed by consumers or governments, in a crisis debts either should be written down to amounts that feasibly can be paid back, or totally forgiven.  Selling off public infrastructure to private companies and/or instituting or coercing "austerity" will not benefit the economy or the People.  About 70% of our economy here in America is driven by consumer spending; I'm guessing it's a similar figure in most other developed countries.  For an economy to be saved or to recover, people have to have money to spend.  Saving a bank that can afford to pay a $30 billion civil fine for FRAUD is not going to save the economy.  Such a bank should be left to die, and the top management (where appropriate) should be sent to prison.

3.  Stop drinking the Edward Bernays style Propaganda Kool Aid put out by Gov't elites and the Corporate Media saying that the sky will fall and the world economy will crash if speculative mega banks are not saved.  That's a complete fairy tale... at best, it's ignorance... at worst, it's blatant deceit.  Many economists agree that no such thing would have happened.

4.  Never get involved with the IMF.  It's nothing more than an oligarchical racket.  If you're already involved, never accept their "structural adjustments".  Years ago, several countries in South America learned that lesson the hard way.

5.  Understand that Neoliberals in both the public & private spheres are creating economic structures that are rushing countries into NeoFeudalism.  Very few politicians are opposing them.

6.  In a very real sense, banks should be a public utility.  They should be loaning money to encourage manufacturing on home soil, rather than gambling on derivatives, foreign currencies, and other insider scams that create no jobs.  In terms of the economy, the bane of the last 30-40 years has been Financialization... paper shuffling for the benefit of the Super-Rich.  We need public banks.  Private, casino-capitalism type banks could still exist, but should not be allowed to use depositor funds for speculation OR to get beyond a certain size.  Reinstate Glass-Steagall.

7.  Understand that agreements such as the proposed TPP are a disaster for economies and the People.  They benefit the Oligarchs at the expense of the rest of us.  Don't believe politicians like Obama or McConnell, who both lie about the TPP.  Even our new Secretary of Defense either is ignorant about the TPP or lying about it.  See citizen.org/tpp

8.  Stop being partisan in politics.  Using America as an example, at the highest levels the politicians are almost ALL on the Neoliberal Team... the Team benefitting Oligarchs at our expense.  Consider this:  80% of us are in favor of raising the minimum wage; 90% of us want the Mega Banks broken up; 80% believe our agreements regarding NAFTA and the WTO should be revised or dumped; and, a vast majority (I forget the %) of us want corporate criminals to be sent to prison...which usually does not happen here.  So, what are our so-called "representatives" doing about all that... not much at all.  42% of Americans now are neither Republicans or Democrats; rather, they are Independents.  The strategy of the Oligarchy, which is using hot-button social/cultural issues to Distract-Divide-Conquer us, is beginning to fail.  Many, perhaps most people, are seeing that the economy is the number one issue in this country.  They are fed up to the gills with stagnant wages while the Rich & Powerful have seen a 700% increase in their incomes in the last couple of decades.

9.  Finally, this next statement is obvious, so consider it simply a reminder.  To determine those responsible for any economic or financial crisis---and to get a clue as to how to reverse that crisis---just follow the money.

Not just my opinion.  Be Well

On What Legitimate, Ethical Authority?

What legitimate, ethical authority do the highest levels of our Fed Gov't have to...

1.  launch a pre-emptive war?  [as in the case of the 2003 Iraq invasion by the USA];

2.  tell Iran that it can't have a nuclear program?  [when Israel has ~ 200 nuclear weapons, and the USA is developing or upgrading so-called "tactical" nukes];

3.  impose sanctions on Russia for intervening in a civil war?  [when the highest levels of our Fed Gov't do the same thing on an almost regular basis];

4.  develop (paraphrased) "tools to guide Venezuela in the direction it needs to go"?  [Venezuela is a sovereign nation...it can go in any direction it so desires];

5.  insist (via the IMF and/or World Bank) that any particular country undergo "austerity"?  [when the USA is the largest debtor nation in the world...and there's no visible austerity imposed by our Gov't];

6.  spy on our allies?  [and then condemn other nations for doing the same to us];

7.  act as the world's Police Force?  [without any U.N. authorization];

8.  refuse to return Guantanamo (which essentially was stolen by us) to Cuba?;

9.  refuse to recognize the sovereignty of Native American Indian Nations?  [said sovereignty being guaranteed by numerous Treaties...all of which have been broken by the Feds];

10.  launch weaponized drone strikes into countries (e.g., Pakistan), killing both SUSPECTS and innocent civilians, when the "intelligence" identifying the suspects largely is from cell phone meta-data?  [Pakistan has told our Gov't to cease and desist more than once.]
..................................................................................

The answer to all of the above is...NONE.  There is no legitimate, ethical authority for those actions.  Every patriot (as opposed to nationalist) should point that out... loudly and repeatedly.

Not just my opinion.  Be Well

KUDOS to the New Leader of Greece!

Congratulations, Greece!  Your new leader is a guy who is telling the Neoliberals to go to hell.  Every country, including the USA, needs just such a person.

Via the IMF, and/or central banks, and/or other mega banks, Neoliberals at the highest levels (including the Democrats and Republicans here) through deceptive practices entice countries to take on massive debt.  Then, when the debt is unsustainable, these same mega banks and the IMF coerce countries to undergo austerity or in some cases sell off their public infrastructure to private, mega corporations.  It boils down to this:  Neoliberals save the mega banks, not the economy...Wall Street, not Main Street.  All for Globalization and privatization.  The ultimate Goal is the world as one giant Business...and none of it is a "conspiracy".  For the most part, it's in plain sight.

As David Rockefeller stated publicly in 1991:  "Surely it is preferable to have the world run by unelected elites than by the corrupt politicians of today."... that's pretty plain.  Despite that, Neoliberals often are deceptive.  For example, here in the USA they go by the labels of "Democrat", "Republican", "Liberal", and "Conservative".  They use Edward Bernays style Propaganda to dupe people into accepting things such as N.A.F.T.A., T.A.R.P., T.P.P., and T.A.F.T.A., all of which serve the Oligarchy, not Main Street.

The Neoliberal Congress and Fed Reserve in this country have given us an eighteen trillion dollar debt... and it's still growing.  There is however, no visible austerity here.  Instead, it's just under the facade of "the economy is recovering" Propaganda.  Here's how it's "recovering":
1.  with continued Financialization, which transfers wealth from the Middle Class to the Upper Crust;
2.  with continued sale of bizarre Financial Derivatives, which create no jobs;
3.  with continued debasement of the dollar;
4.  with a massive Trade Deficit;
5.  with continued off-shoring of factories and jobs;
6.  with the creation of lower-paying permanent jobs, temporary jobs, and part-time jobs;
7.  with continued deficit spending;
8.  with an estimated one quadrillion dollars of Financial Derivatives still out in the Market... many bubbles just waiting to burst;
9.  with QE-4 waiting in the wings;
10.  with Gov't promoting another housing bubble;
11.  with someone or some institution (or a combination) manipulating the crude oil market; and,
12.  with rolling back regulations on the mega banks that caused the 2008 Crisis.
This is not what I would call a recovery.

[NOTE:    The 2008 Crisis was not caused by sub-prime mortgages; they were simply the trigger.  The underlying cause was the fact that mega, Neoliberal banks sold trillions of dollars worth of essentially worthless Derivatives.  Many (or perhaps most) of them were credit default swaps which were supposed to "insure" investors against losses... but didn't.  The mega banks knew they couldn't possibly serve that function when they sold them to pension funds, cities, counties, countries, and other investors.  It was a massive fraud.  Under the Corporatist Obama here, almost no one has been held criminally liable.  Plus, things are now set up for the whole scam to happen again... I'm guessing within five years...easily.]

Neoliberals and Neoliberalism must be confronted and resisted.  In order to do that, we must stop drinking the Propaganda Kool Aid.  First Iceland, and now Greece are showing us the way.  Heartiest congratulations to both.  There is no reason whatsoever that Globalization must take the form that is espoused by Neoliberals.  There are other options.

Not just my opinion.  Be Well