�One bank to rule them all;
One bank to bind them . . .�
These are dark times. While you were sleeping the
cockroaches were busy about their work, rummaging through the US Constitution,
and putting the finishing touches on a scheme to assert absolute power over the
nation�s financial markets and the country�s economic future.
Industry representative Henry Paulson has submitted
legislation to Congress that will finally end the pretense that Bush controls
anything more than reading the lines from a 4-foot by 6-foot teleprompter
situated just inches from his lifeless pupils. Paulson is in charge now, and
the coronation is set for sometime early next week. He rose to power in a
stealthily executed Banksters� Coup in which he, and his coterie of dodgy
friends, declared martial law on the US economy while elevating himself to
�All Hail Caesar!� The days of the republic are over.
Section 8 of the proposed legislation says it all: �Decisions
by the Secretary pursuant to the authority of this Act are non-reviewable and
committed to agency discretion, and may not be reviewed by any court of law or
any administrative agency.�
Right, �non-reviewable� supremacy.
Congress, of course, is more than eager to abdicate whatever
little authority they have left. They�re infinitely grateful for their purely
ceremonial role, the equivalent of Caligula�s horse, albeit, with considerably
less dignity. Has even one senator spoken out against this madness, which -- according
to informal Internet polls -- is resoundingly rejected by the voters? Does it
concern the members of Congress at all, that the present financial crisis was
brought on by the proliferation and sale of trillions of dollars of
mortgage-banked garbage, which was fraudulently represented as Triple A rated
bonds by the very same people who now claim to need unprecedented and
dictatorial powers to fix the problem? Or are they more worried that the steady
torrent of contributions which flows from Wall Street to congressional campaign
coffers will be inconveniently disrupted if they fail to ratify this latest
assault on democratic governance? The House of Representatives is one big
steaming dung heap that should be leveled and turned into an amusement park
instead of a taxpayer-funded knocking shop. What a pathetic collection of
cowards and scumbags.
Bloomberg News: �The Bush administration sought unchecked
power from Congress to buy $700 billion in bad mortgage investments from
financial companies in what would be an unprecedented government intrusion into
the markets. Through his plan, Treasury Secretary Henry Paulson aims to avert a
credit freeze that would bring the financial system and the world�s largest
economy to a standstill. The bill would prevent courts from reviewing actions
taken under its authority.�
�He�s asking for a huge amount of power,�� said Nouriel
Roubini an economist at New York University. �He�s saying, �Trust me, I�m going
to do it right if you give me absolute control.� This is not a monarchy.�
The banksters own this country; always have, only now they�ve
decided to strip away the curtain and reveal the ghoulish visage of the
puppet-master. It ain�t pretty.
Paulson decided that the financial markets needed an
emergency trillion dollar face-lift just weeks before his former business
partners at Goldman-Sachs were dragged off to the chopping block. Was that the
reason? Everyone on Wall Street knew that the bulls-eye had already been ripped
from Lehman�s bloody back and was about to be fastened on Goldman�s. Now, it
looks like they will escape their day of reckoning due to Paulson�s eleventh-hour
reprieve. Nice touch, eh?
From the proposed legislation: LEGISLATIVE PROPOSAL FOR
TO PURCHASE MORTGAGE-RELATED ASSETS
�(3) designating financial institutions as financial agents
of the Government, and they shall perform all such reasonable duties related to
this Act as financial agents of the Government as may be required of them.�
Market Ticker�s Karl Denninger summed this up best: �This is
the de facto nationalization of the entire banking, insurance and related
financial system. .That�s right - every bank and other financial institution in
the United States has just become a de facto organ of the United States
Government, if Hank Paulson thinks they should be, and he may order them to do
virtually anything that he claims is in furtherance of this act . . . The bill
gives Paulson the ability to nationalize unlimited amount of private debt and
force you and your children to pay for it.�
Denninger again: �The claim is that this is intended to �promote
confidence and stability� in the financial markets.
�It will do no such thing. It will instead strike terror
into the hearts of investors worldwide who hold any sort of paper, whether it
be preferred stock, common stock or debt, in any financial entity that happens
to be domiciled in the United States, never mind the potential impact on
Treasury yields and the United States� sovereign credit rating.
�I predict that if this passes it will precipitate the
mother and father of all financial panics.� (Market Ticker)
Amen. The transformation from a free market to a centralized
Soviet-style economy run by men whose judgment and credibility is already
greatly in doubt does not auger well for the markets or the country. Anyone
with a lick of sense would cash in their chips first thing tomorrow and look
for capital�s Elysium Fields overseas or as far as possible from the circus
sideshow now run by G-Sax ringleader, Colonel Klink.
Paulson�s Chicken Little routine might have soiled a few
senatorial undergarments, but let�s hope the American people are made of
sterner stuff and will reject this charade. The conversation should be shifted
from conceding more authority to hucksters in pinstripes to indictments for
securities fraud. Even the most economically-challenged nation ought to be able
to afford a few sets of leg irons and a couple hundred jail cells. That�s all
it will take. That, and a couple brisk dunks on the waterboard.
Paulson�s plan to revive the banking system by buying up
hundreds of billions of dollars of illiquid mortgage-backed securities (MBS)
and other equally poisonous debt instruments, ignores the fact these complex
bonds have already been �marked to market� in the recent fire sale by Merrill
Lynch. Just weeks ago, Merrill sold $31 billion of these CDOs for roughly 20
cents on the dollar and provided 75 percent of the financing, which means that
the CDOs were really worth approximately 6 cents on the dollar. If this is the
settlement that Paulson has in mind, than the taxpayer will be well served. But
this will not recapitalize the banks� balance sheets or mop up the ocean of red
ink which is flooding the financial system. No, Paulson intends to hand out
lavish treats to his banker buddies, while interest rates soar, pension funds
collapse, the housing market crashes, and the dollar does a last, looping
swan-dive into a pool of molten lava. Thanks, Hank.
Economist and author Henry Liu summarized the current
maneuvering like this: �The Fed is merely trying to inject money to keep prices
not supported by fundamentals from falling. It is a prescription for
hyperinflation. The only way to keep the price of worthless assets high is to
lower the value of money. And that appears to be the Fed�s unspoken strategy.�
Indeed. The Fed and Treasury have decided to backstop the
entire global financial system (foreign banks can access the Fed�s facilities,
too!) with paper money which is rapidly losing its value. Watch the greenback
tumble in currency trading.
Congress is getting steamrolled and the American people are
getting snookered. Consumer confidence -- already at historic lows -- is headed
for the wood-chipper, feet-first. Something has got to give.
One minute everything is hunky-dory; the subprime meltdown
is �contained� and �the fundamentals of our economy are strong.�(Paulson) And,
less than a week later, Congress is forced to surrender their
constitutionally-mandated right to oversee spending in order to forestall
economic Armageddon. Which is it? Or is the real objective just to keep the
country on an emotional teeter-totter long enough for all state-power to be
subsumed by the Wall Street Politburo?
No one knows what will happen next. We are in uncharted
waters. And no one knows what the political landscape will look like after the
dust settles from this outrageous power grab. According to Paulson, things are
so dire that the entire nation will be reduced to smoldering rubble and twisted
iron. But can we trust him this time after his long litany of lies?
Isn�t it about time to send the cockroaches scuttling back
to their hideouts and bring in the cleaning crew to hose the whole place down?
It sounds like a job for Ralph Nader, a man of vision and unshakable integrity.
Give Ralph a badge and let him deploy his Raiders to Wall Street armed with
bullwhips and Tasers. Let them post a guard in every CEOs and CFOs office and
every boardroom on the Street -- and if even one decimal is accidentally moved
to the right or left on the corporate ledger, clap them in leg irons and drag
them off squealing to Guantanamo. That�s how you clean up Wall Street!
Don�t let the prospect of a national crisis trick you into
giving up your freedom, America. The people behind this scam are the same
landsharks and flim-flam men who polluted the global marketplace with their
snake oil and toxic sludge. These are the fraudsters who manufactured the
crisis to begin with. This is just the latest installment of the Shock Doctrine:
engineer a crisis, and then, steal whatever is left behind. Same sh**,
different day. Be resolute. Don�t budge. Our economic foundations may be
crumbling, but our determination is not. This is our country, not Goldman Sachs.�
The people who destroyed America must be held to account. Their time is coming.
Whitney lives in Washington state. He can be reached at email@example.com.