America Has Not Gone ‘Soft’, It Has Been LOOTED!

America Has Not Gone ‘Soft’, It Has Been LOOTED!

While political pundits are spouting off about how the pResident shouldn’t be blaming America, many folks are missing the point (including Chairman Zero). America hasn’t gotten soft; it’s been looted by the very same banking cartel, special interests, and crony capitalists that have been steering the economy for decades by bribing the political class and turning America into a nanny state. Now the economy has been completely decimated and those very same forces are trying to keep the bubbles they have created from popping because they went too far and they are about to lose all their money.

From FedUpUSA.org:

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Nomi Prins On Alex Jones, 4.21.2011: The Fed Is Reducing Our Value As A Nation

Nomi Prins On Alex Jones, 4.21.2011: The Fed Is Reducing Our Value As A Nation

Alex Jones interviews former Goldman Sachs managing director Nomi Prins about the pillaging of the average American by the Federal Reserve and the big banks that has occurred in the effort to prop up the big banks. They cover S&P’s warning about America’s debt, the Obama administration trying to stop the warning from being issued, and what is coming down the road for us. (See Nomi’s bio below.)

I call it financial homicide by the banks, and Geithner is sortof the accomplice because he, under him, the Treasury Dept. increased the Treasury debt by $4 trillion dollars. So for him to come around and say, ‘oh, by the way, if you, Congress, don’t increase the debt cap by, whatever amount, whether it’s a penny or a trillion, it doesn’t matter, the idea is that if we don’t incur more debt, our debt will become less worthy, which is just a.) not logical, and b.) how Geithner has operated thru the bailouts and since he’s been Treasury Secretary, which is to continue to deny that much of the debt problem, most of the debt problem, arguably all of the debt problem, has happened because of this imparting of debt to bailout Wall Street, to subsidize the financial system, to go back and forth between the Fed who buys the debt, the Treasury increases the debt, the Fed buys the debt, and has this sorta back and forth ball going between them which only decreases our value as a nation. Our entire book, our balance sheet as a nation, and the Fed will continue to do this. We know that when June comes along, the Fed is going to go from QE 2 to QE whatever, they might call it something else; they will find ways to continue to throw this ball back and forth.

Nomi Prins, Former Goldman Sachs Managing Director: Bankster Collusion and Bailouts

Alex welcomes back to the show author and journalist Nomi Prins, who will talk about the economy, the seismic debt increase and Treasury Secretary and former Federal Reserve honcho Tim Geithner. Before becoming a journalist, Nomi worked on Wall Street as a managing director at Goldman Sachs, and running the international analytics group at Bear Stearns in London. Her latest book is It Takes a Pillage: Behind the Bonuses, Bailouts, and Backroom Deals from Washington to Wall Street.

(H/T NWOTaser)

It Takes a Pillage: An Epic Tale of Power, Deceit, and Untold TrillionsEconomic Conditions Books)

Obama Stands His Ground With Republicans On ‘Financial Reform’

Obama Stands His Ground With Republicans On ‘Financial Reform’

Does anyone find it odd that Bambi ‘holds’ his ground with the republicans but chokes with the Somali Pirates and bows to just about everybody else?

Mr. Kuttner obviously has not read Dodd’s 1400 page masterpiece enough to know that it allows for bailouts in perpetuity (pg 1379).  I haven’t even gotten all the way through the book on financial reform and I already know that creating a new government agency with a $500 BILLION DOLLAR YEARLY budget to keep track of every single financial transaction known to mankind, invest money, and then report on the firms they have invested in probably isn’t the best idea.  This could be one of the reasons why Barry isn’t budging when it comes to ‘financial reform’.  I’m sure there are more progressive ideas tucked inside this bill.

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SHOCK: TARP Is Not Delivering

SHOCK: TARP Is Not Delivering


Excuse me while I heave into the bucket that is now stationed next to my desk.  Neil Barofsky, the inspector general for TARP, in his latest report, states that a TARP program for small business lending (March 2009) has not yet been implemented.  Whiskey Tango Foxtrot Award to the Treasury and TurboTax Timmie anyone?

TARP ain’t getting the job done? I would be laughing my a** off if this situation wasn’t so tragically disastrous to the entire nation and our childrens’ futures.

The next question would be: Who are the stupid Americans?  The Elites or the Tea Party Patriots that were against ALL of these programs because we knew it wasn’t going to help average Americans keep their jobs, homes, savings…

Report: TARP benefits have fallen far short

The $700 billion bailout program for the financial industry has so far done little to boost bank lending, aid small businesses or reduce home foreclosures, a top government watchdog said in a report.

Neil Barofsky, the special inspector general over the Troubled Asset Relief Program (TARP), said in a report that while the bailout has helped stabilize the financial system, many of the program’s original goals have not been met.

“Lending continues to decrease, month after month, and the TARP program designed specifically to address small-business lending — announced in March 2009 — has still not been implemented by Treasury,” Barofsky wrote in the report. “The TARP foreclosure prevention program has only permanently modified a small fraction of eligible mortgages, and unemployment is the highest it has been in a generation.” (Editor’s note: AYFKM?)

The Obama administration is urging Congress to pass an additional fiscal stimulus measure, or “jobs bill,” early this year to help bolster the economy. Lawmakers are anxious about the economy weighed down from 10 percent unemployment and ongoing weakness in the housing market.

This is a perfect representation of why Americans are mired in the indecision about whether the elites are doing this on purpose, or if they are just plain stupider than 75% of the country.  I’m voting for the former, and looking for outsiders to run against the District of Criminals’ squatters.  Besides, if they are stupider than average Americans, why are they in office?  Once again, Too Stupid or Too Dangerous?

Still Thinking There Is A Difference Between Dems and Pubs? Big Labor Takes Over The NY Fed

We all know that there is a group of shadow chess players in the background pulling all the strings.  These people are above the game because they wrote the game, and the only rule we have to follow when it comes to what is happening in our country and world is to “follow the money”.  The following is only shocking for a split micro-second when you remember that robber-barons from both sides of the aisle set up the Federal Reserve System.

Labor Leader Named Head of New York Fed

The Federal Reserve chose a labor leader to succeed a former Goldman Sachs executive as the chairman of the Federal Reserve Board of New York’s private-sector board of directors.

Denis Hughes, president of the New York state branch of the AFL-CIO, had been serving as acting chairman of the New York Fed board since May, when Stephen Friedman stepped down from the position.

Mr. Friedman, a former Goldman Sachs Group Inc. chairman and adviser to President George W. Bush, had faced questions about his purchases of Goldman stock while serving on the New York Fed’s board.

The Fed decision formalizes Mr. Hughes’s role as chairman through the end of 2009. The Fed board in Washington will announce in November or December who will serve as chairman in 2010. Columbia University President Lee Bollinger was named deputy chairman, a position that Mr. Hughes previously held. Mr. Bollinger has been a New York Fed director since January 2007.

The main job for chairmen of regional Fed bank boards is to choose the regional banks’ presidents, who play a role in the Fed’s interest-rate decisions. But the New York Fed already hired a new president, Bill Dudley, in January. The board also provides input to the Fed on the regional economy.

Did you catch that? “The main job for the chairmen of regional Fed bank boards is to choose the regional banks’ president…”  The New York Fed controls the other 11 Federal Reserve banks in the system and controls who runs them.  Everything is coming out of New York, and now the big unions are stepping up to the biggest trough of all – the direct pipeline to your pocketbook.

Can anybody explain to me how a labor leader and a university president know anything about economic policy?  One could at least think that the president of Columbia University would know that the Federal Reserve System is UNCONSTITUTIONAL!

The takeover of our country by people only interested in hoarding money, resources, and power continues.

Will You Be Joining Me In Washington, DC on 9.12.09?

Larry Flynt On Wall Street Banks And A National Strike

Do not be put off by the messenger; listen to the message:

Common Sense 2009

The American government — which we once called our government — has been taken over by Wall Street, the mega-corporations and the super-rich. They are the ones who decide our fate. It is this group of powerful elites, the people President Franklin D. Roosevelt called “economic royalists,” who choose our elected officials — indeed, our very form of government. Both Democrats and Republicans dance to the tune of their corporate masters. In America, corporations do not control the government. In America, corporations are the government.

This was never more obvious than with the Wall Street bailout, whereby the very corporations that caused the collapse of our economy were rewarded with taxpayer dollars. So arrogant, so smug were they that, without a moment’s hesitation, they took our money — yours and mine — to pay their executives multimillion-dollar bonuses, something they continue doing to this very day. They have no shame. They don’t care what you and I think about them. Henry Kissinger refers to us as “useless eaters.”

But, you say, we have elected a candidate of change. To which I respond: Do these words of President Obama sound like change?

“A culture of irresponsibility took root, from Wall Street to Washington to Main Street.”
There it is. Right there. We are Main Street. We must, according to our president, share the blame. He went on to say: “And a regulatory regime basically crafted in the wake of a 20th-century economic crisis — the Great Depression — was overwhelmed by the speed, scope and sophistication of a 21st-century global economy.”

This is nonsense.

The reason Wall Street was able to game the system the way it did — knowing that they would become rich at the expense of the American people (oh, yes, they most certainly knew that) — was because the financial elite had bribed our legislators to roll back the protections enacted after the Stock Market Crash of 1929.

Congress gutted the Glass-Steagall Act, which separated commercial lending banks from investment banks, and passed the Commodity Futures Modernization Act, which allowed for self-regulation with no oversight. The Securities and Exchange Commission subsequently revised its rules to allow for even less oversight — and we’ve all seen how well that worked out. To date, no serious legislation has been offered by the Obama administration to correct these problems.

Instead, Obama wants to increase the oversight power of the Federal Reserve. Never mind that it already had significant oversight power before our most recent economic meltdown, yet failed to take action. Never mind that the Fed is not a government agency but a cartel of private bankers that cannot be held accountable by Washington. Whatever the Fed does with these supposed new oversight powers will be behind closed doors.

Obama’s failure to act sends one message loud and clear: He cannot stand up to the powerful Wall Street interests that supplied the bulk of his campaign money for the 2008 election. Nor, for that matter, can Congress, for much the same reason.

Consider what multibillionaire banker David Rockefeller wrote in his 2002 memoirs:

“Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as ‘internationalists’ and of conspiring with others around the world to build a more integrated global political and economic structure — one world, if you will. If that’s the charge, I stand guilty, and I am proud of it.”Read Rockefeller’s words again. He actually admits to working against the “best interests of the United States.”

Need more? Here’s what Rockefeller said in 1994 at a U.N. dinner: “We are on the verge of a global transformation. All we need is the right major crisis, and the nations will accept the New World Order.” They’re gaming us. Our country has been stolen from us.

I’m calling for a national strike, one designed to close the country down for a day. The intent? Real campaign-finance reform and strong restrictions on lobbying. Because nothing will change until we take corporate money out of politics. Nothing will improve until our politicians are once again answerable to their constituents, not the rich and powerful.

Let’s set a date. No one goes to work. No one buys anything. And if that isn’t effective — if the politicians ignore us — we do it again. And again. And again.

The real war is not between the left and the right. It is between the average American and the ruling class. If we come together on this single issue, everything else will resolve itself. It’s time we took back our government from those who would make us their slaves.

Read the rest here.

Tell Chris Dodd His Services Are No Longer Required

Just one more reason to send Chris Dodd home permanently and to vote against him in his upcoming election because of sheer stupidity, pandering to the banking crowd, his sweetheart mortgage deal, and lest we forget, punishing Americans with good credit ratings (pay attention at 2:33), but let’s go back a few years.

Congress’s Afterthought, Wall Street’s Trillion Dollars

Fed’s Bailout Authority Sat Unused Since 1991

On the day before Thanksgiving in 1991, the U.S. Senate voted to vastly expand the emergency powers of the Federal Reserve.

Almost no one noticed. (emphasis added)

The critical language was contained in a single, somewhat inscrutable sentence, and the only public explanation was offered during a final debate that began with a reminder that senators had airplanes to catch. Yet, in removing a long-standing prohibition on loans that supported financial speculation, the provision effectively allowed the Fed for the first time to lend money to Wall Street during a crisis.

That authority, which sat unused for more than 16 years, now provides the legal basis for the Fed’s unprecedented efforts to rescue the financial system.

Since March 2008, the central bank’s board of governors has invoked its emergency powers at least 19 times: to contain the wreckage of Bear Stearns and ease the fall of American International Group, to preserve Goldman Sachs and Morgan Stanley, to limit losses at Bank of America and Citigroup, to lend more than $1 trillion.

The repeated use of the once-dusty law has surprised and alarmed a wide range of people, including economists and members of Congress. It has even raised worries among presidents of the regional banks that make up the Federal Reserve system.

Many critics are concerned that an institution not accountable to voters is risking vast amounts of public money and choosing which companies get help. Others are concerned that the Fed’s new role will interfere with its basic responsibility for regulating economic growth.

Enter H.R. 1207, the Federal Reserve Transparency Act of 2009. Is this bill likely to pass? Probably not considering the NY Banks that we just bailed out ARE THE FEDERAL RESERVE!

There is also a question about the roots of the crisis: Did investment banks take greater risks in the past two decades because they knew the Fed could rescue them?

The 1991 legislation, authored by Sen. Christopher J. Dodd (D-Conn.), was requested by Goldman Sachs and other Wall Street firms in the wake of the 1987 market crisis, and it would save some of them a generation later.

Fed Chairman Ben S. Bernanke and other leaders of the central bank have argued that the emergency authority has allowed it to rescue the financial system and that without it, the economy would be in far worse shape. And they argue that they are using the power as Congress intended.

As Congress intended, but isn’t the Fed unconstitutional to begin with?  Were not the Founding Fathers against a central bank system from the very start?

“This provision was designed as a last resort to make sure credit flows when times are tough and credit isn’t being extended,” said Scott Alvarez, the Fed’s general counsel. “That’s exactly what it’s being used for today.”

Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, said that the actions taken by the Fed have been necessary and important but that those actions should have been taken by an agency accountable to voters. He said he was not aware of the Fed’s emergency power until September, and he favored removing much of that authority from the Fed once the crisis has passed.

Barney was not aware because he, like his peers in the House and Senate, DO NOT READ!

“This is a democracy, and there is a problem with too much power going to an entity that is not subject to democratic powers,” Frank said.

I thought the United States was a Republic?

“By necessity, the Fed was the institution everybody looked to because they had the balance sheet and the legal authority to act,” said Phillip L. Swagel, an assistant Treasury secretary in the George W. Bush administration who is to become a professor at Georgetown University’s business school.

See video below as to how their balance sheet is coming out…

But the government’s reliance on the Fed has roused critics.

“There’s no accountability,” said Walker F. Todd, a former economist at the Federal Reserve Bank of Cleveland whose writings raised some of the earliest questions about the 1991 law. “How much power do you want to concentrate in a few people who are not directly accountable to the political process?”

Those criticisms have been heightened by the Fed’s refusal to disclose which firms have benefited from many of the emergency programs, such as the names of the companies that have used the Fed’s “commercial paper funding facility” to issue short-term debt.


The Fed ‘loses’ $9 Trillion:

Rodgin Cohen, a partner at Sullivan & Cromwell, suggested to several of his clients the idea of modifying the 1932 law to allow lending to investment banks, according to people involved in the discussions. Cohen is a legendary figure on Wall Street, building a career as perhaps the preeminent legal adviser on banking mergers, in part through his command of the minutiae of federal regulations.

Dodd, at the time chairman of the securities subcommittee of the Senate Banking, Housing and Urban Affairs Committee, agreed to insert the language into a bill whose primary purpose was to reform the Federal Deposit Insurance Corp., which guarantees commercial bank deposits.

Dodd declined to comment for this story, but at the time, he said the legislation gave the Fed “greater flexibility to respond in instances in which the overall financial system threatens to collapse.”

The Fed has extensive regulatory authority over commercial banks, to keep them from needing its safety net. But after Dodd’s language passed into law, the Fed did not seek new regulatory authority over investment banks, nor did Congress move to provide new authority.

So not only do we have the Community Reinvestment Act being ramped up to give mortgages to people without jobs, but we have a Congress that did not regulate investment banks. (For those of you that have not seen the above linked video – take the time and vote it up.)

Instead, over the next two decades, federal officials would emphasize that investment banks had an incentive to be cautious because they were operating without a safety net.

Has the absence of a safety net has ever stopped any little kid from death-defying acts of insanity, or any capitalist on steriods from trying to make just one more buck because they lack a moral center, or any corrupt politician from making promises they won’t keep to get just one more vote?

I believe everything we are seeing today goes back to current and former congresses that DID NOT FOLLOW THE CONSTITUTION.  I do compare the people who are running our country to crack addicted fiends that are just looking for their next fix of financial kickbacks or votes for re-election.

The Community Reinvestment Act and Dodd’s part in it:

Who Knew?

(Author’s Update Below)

Well, well, well. When Davis, Polk & Wardwell are sitting on your site day in and day out; you just gotta wonder why? I am a patient monster; really, I am, and I think that maybe this proves the point about bloggers being followed because we actually do have our fingers on the pulse of America.

Treasury secretary’s choice for deputy withdraws

WASHINGTON (AP) — The person Treasury Secretary Timothy Geithner wanted as his chief deputy has withdrawn from consideration, dealing a setback to the understaffed agency as it struggles to address the worst financial crisis in decades.

Annette Nazareth, a former senior staffer and commissioner with the Securities and Exchange Commission, made “a personal decision” to withdraw from the process, according to a person familiar with her decision.

<snip>

Nazareth, 53, a partner at the law firm Davis Polk & Wardwell, could not be reached for comment.

So as of this morning, Annette Nazareth and Dr. Gupta have declined the invitation to serve at the pleasure of the president and Timmie is flying solo at Treasury, and we all know that having the Treasury run by one Turbo Tax dodging corruptocrat is probably counter-productive.

Geithner has been criticized for staffing his department too slowly as it grapples with a banking crisis that has crippled the economy. Uncertainty about Treasury staff also has unnerved financial markets.

Five weeks into his tenure, he has yet to name a single top deputy or assistant secretary. This has left Treasury with too few people authorized to make decisions or represent the department in meetings with stakeholders.

After initially declining to comment, Treasury spokesman Isaac Baker emailed a statement saying 50 political appointees at the department already are hard at work.

“Any rumors of vetting problems or delays in the process are simply not true,” Baker’s statement read.

The department has been meeting with members of the financial services industry as it oversees the government’s $700 billion financial bailout and other parts of President Barack Obama’s financial stabilization plan.

But at a Senate hearing Thursday about failed insurance giant American International Group Inc. — which has received four separate bailouts totaling more than $170 billion — Sen. Chris Dodd said he had asked Treasury for someone to appear, but that no one was available.

“I am not pleased that we don’t have someone here from Treasury to explain what their role in this is,” Dodd said.

Geithner’s choice for undersecretary of international affairs, Caroline Atkinson, also withdrew from consideration, the Wall Street Journal reported Thursday.

Nazareth’s withdrawal may signal what we all knew from the beginning; that the center (Bambi)  IS actually smoke and mirrors, and of course, cannot hold.  It is like watching rats jumping off a burning ship.  I personally love the idea that this “money person” is not going to be anywhere near our government financial system considering she is part of the problem.

Nazareth joined the SEC in 1998 as senior counsel to then-Chairman Arthur Levitt, later directing the Division of Market Regulation. She is credited with creating numerous key policy changes.

She created the voluntary program intended to supervise large investment banks including Goldman Sachs, Morgan Stanley and the now-defunct Bear Stearns and Merrill Lynch. The program was canceled in September as the financial crisis erupted and the remaining investment banks converted themselves into bank holding companies.

Some on Capitol Hill had expressed concern that Nazareth was too closely associated with the weak federal oversight that contributed to the banking collapse. Among her responsibilities at Treasury would have been overseeing the creation of a new regulatory system for large financial institutions.

Geithner told a Senate panel Wednesday that he hoped “to come up for the committee soon with a full slate of very strong people.”

“We’re doing this carefully, as you would expect, and … trying to make sure we have the best talent in the country,” he said.

Geithner’s lack of a senior staff has raised concerns on Wall Street.

“This doesn’t help confidence,” said David Wyss, chief economist at Standard & Poor’s in New York. “Geithner is stuck there all by himself trying to do everything. They don’t have anybody confirmed, and Treasury is a big shop to try to run with one person, especially right now.”

And it appears the rest of the country is catching up to us when we knew that these corruptocrats were not qualified to run the biggest economy in the world.  I’m still for drafting Steve Wynn for president until the economy turns around.  I am sure that a company that has the foresight to have $1.1 BILLION in cash on hand at a time like this, and is cutting spending and reducing salaries instead of laying people off might actually know how to turn this economy around; Timothy?  Not So Much.  (Back to Bambi’s Buddy)

David Jones, head of Denver-based economic consulting firm DMJ Advisors, said that Geithner’s missteps in putting together a financial rescue program and his inability to assemble a team at Treasury were raising concerns about whether the new administration’s economic team is up to the challenges confronting them.

“There is no question that Wall Street is losing patience,” said Jones, who for more than three decades served as a top economist at a major bond trading firm. “If there was ever a time when we need an effective and strong Treasury secretary, it is now.”

Jones said that investors had initially viewed the economic team that Obama was assembling favorably because it included experienced hands such as Summers and Volcker.

“There were high expectations for this team, but at this time of crisis, it doesn’t seem to be functioning effectively,” Jones said.

BBWWWWAAAAAHHHHHHHHHHHHHHH!!!!!!!!!!!!!!!!!!  Ya Think?

I personally am calling for the President and Treasury Secretary to step down and let the grown-ups who have actually done the homework, read their history, and are not trying to turn this country socialist, work their magic on the economy.

A message for Rahm, Hillary and the rest of the Alinsky “never waste a good crisis” crew; we know what you are doing and we are not going to let it happen. Keep pushing, and we will push back.

*****************

Author’s Update:

Message (3-9-09):

Davis, Polk & Wardwell:

As much time as you are spending here, you might want to join in the conversation and enlighten the unwashed masses, yes?


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