Rob's Blob » Economy

California Refuses to Accept Obama’s Banking Sellout

Robert Coss — Fri, 11 Nov 2011 16:48:27 +0000

California Refuses to Accept Obama’s Banking Sellout

Thursday 10 November 2011

by: Robert Scheer, Truthdig | News Analysis

California Attorney General Kamala Harris says that she refuses to release banks from legal liability for the mortgage crisis. (Photo: Obama For America – California [3])

There is no three-strikes law for crooked bankers, not even a law for a fifth strike, as The New York Times reported in the case of Citigroup, cited last month in a $1 billion fraud case. Unlike the California third-striker I once wrote about whom a district attorney wanted banished forever to state prison for stealing a piece of pizza from the plate of a person dining outdoors, Citigroup executives get off with a fine and by offering a promise not to do it again, and again and again.

As the Times reported when Citigroup agreed to settle SEC charges last month: “Citigroup’s main brokerage subsidiary, its predecessors or its parent company agreed to not violate the very same antifraud statue in July 2010. And in May 2006. Also as far back as March 2005 and April 2000.”

Not that the bankers face prison time, since the Justice Department has refused to act in these cases, and the Securities and Exchange Commission is bringing only civil charges, which the banks find quite tolerable. This time, the fine against Citigroup was $285 million, which may sound like a lot except that the bank raked off as much as $700 million on this particular toxic securities deal. As the Bloomberg news service editorialized, “… there should be only one answer from Jed S. Rakoff, the federal judge in New York assigned to weigh the merits of the agreement: You’ve got to be kidding.”

Not to pick on Citigroup, the too-big-to-fail bank that Clinton administration Treasury Secretary Robert Rubin helped make legal before he was paid off with a $126 million job on Wall Street; that corporation was not the only serial offender. “Citigroup has a lot of company in this regard on Wall Street,” the Times noted, “nearly all of the biggest financial companies—Goldman Sachs, Morgan Stanley, J.P. Morgan Chase and Bank of America among them—have settled fraud cases by promising that they would never again violate an antifraud law, only to have the SEC conclude they did it again a few years later.”

So forget relying on the federal government to hold the Wall Street swindlers accountable. Indeed, the Obama administration has been involved in negotiating a deal with state attorneys general to settle their complaints with the banks for a pittance of compensation for the victims. In return, the states would promise not to institute further legal proceedings against the banks.

The fix was in for what a New York Times editorial on Tuesday headlined “Letting the Banks Off Easy” described as “paltry” mortgage relief, reducing by less than $20 billion the balances of 14.5 million underwater homeowners who are “drowning in some $700 billion of negative equity.” The deal has been stalled by the refusal of California Attorney General Kamala Harris to accept this sellout. Among its other disastrous concessions would be ending further investigation by the states into financial skullduggery connected with the housing meltdown.

In September, Harris, elected in a Democratic sweep of the state’s top offices in 2010, went against the dictates of the Democrat in the White House, stating that she refused to release the banks from legal liability for the mortgage crisis. That is the nub of the pending White House-brokered deal with the banks. As the Times summarized it: “The proposed settlement reportedly would prevent the states from pursuing claims against banks relating to fraud or abuse in the origination of the bubble. It would also prevent states from pursuing claims for foreclosure abuses, like improper denial of loan modifications.”

Traditionally the states provided the essential regulation of mortgage origination, ownership and sales as a transparent process duly recorded and subject to public examination at the county level. But in order to facilitate the gathering of those mortgages into the sort of collateralized debt obligations that the banks could then bet on and trade worldwide, homeownership became a murky matter. Many of the mortgages now in question, including the ones that Citigroup’s “synthetic” derivative was based on, are no longer owned by the banks that originated them. They are instead part of the Mortgage Electronic Registration Systems (MERS) database, owned by a consortium of banks and residing in computers in Reston, Va.

The MERS system is described by the Times as “a land registry system implicated in bubble-era violations of tax, trust and property law.” The Obama-supported settlement would make it very difficult if not impossible to investigate at long last the workings of MERS and other systemic sources of what is now a full-blown international economic crisis. As the Times editorial put it, “In effect, the legal waivers being contemplated would let the banks pay up to sweep wrongdoing under the rug.”

Thankfully, we have a few state attorneys general, most prominently California’s Harris, standing up for the American people, but it is outrageous that a president who avowedly committed to defending the public interest would now be subverting that effort rather than leading it.

Robert Scheer [5]

[8]

Too Big to Jail

[9]

Robert Scheer | Truthdig | Op-Ed

News

Source URL: http://www.truth-out.org/california-refuses-accept-obamas-banking-sellout/1320935116

Links:
[1] http://www.truth-out.org/print/8849
[2] http://www.truth-out.org/printmail/8849
[3] http://www.flickr.com/photos/ofacalifornia/5092416584/
[4] http://www.truth-out.org/printmail
[5] http://www.truth-out.org/content/robert-scheer
[6] http://org2.democracyinaction.org/o/6694/p/salsa/web/common/public/signup?signup_page_KEY=2160
[7] https://members.truth-out.org/donate
[8] http://www.truth-out.org/?q=california-budget-talks-too-close-comfort/1305145392
[9] http://www.truth-out.org/?q=too-big-jail/1320414516

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“OWS – Bank Transfer Day is Nov. 5th! MoveYourMoneyProject on Democracy Now — “

Robert Coss — Thu, 10 Nov 2011 18:57:28 +0000

TimeToFlush has shared a video with you on YouTube:

5 banks have 97% of derivatives market

OWS – Bank Transfer Day is Nov. 5th! MoveYourMoneyProject on Democracy Now –

Help get rid of ‘Too Big to Fail’ lobbying and derivatives lobbying — Move Your Money Project, started in 2009 by economist Rob Johnson (featured in video), filmmaker Eugene Jarecki, and Arianna Huffington, on switching to a small community bank or local credit union. Note, MoveYourMoney.info referenced in video is now/same thing as MoveYourMoneyProject.org. Above video’s original air date 1/4/10.Banks to leave/boycott:
Citigroup, JP Morgan Chase, Bank of America, Wells Fargo and, to the extent that it’s asset mangement, Morgan Stanley and Goldman Sachs.

“Join a small community bank or credit union!” and support Bank Transfer Day Nov. 5th!…

Also… To everyone: Please keep up with the OWS movement at my online daily newspaper, ‘Occupy Wall Street News and Videos’ (a collection of news stories from sites around the world, as well as from Twitter, Facebook, and ‘Editor’s Notes’ with links to more info … more

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Move Your Money Day a Success; Over $50 Million Withdrawn From Big Banks

Robert Coss — Thu, 10 Nov 2011 13:56:04 +0000

clipped from www.alternet.org

Move Your Money Day a Success; Over $50 Million Withdrawn From Big Banks

Around the country, in groups and individually, Americans voted with their dollars this week to move away from the banks that caused the economic crisis.

November 8, 2011 |

Around the country this past Saturday, November 5, people fed up with the power and influence of the big banks (not to mention their bailouts and bad customer service) moved their money to credit unions or to small, local banks.

He continued, “I understand it wasn’t so painless for others. There were reports coming out of LA that a downtown Bank of America was charging a $10 account closing fee,” as well as last month’s arrests of protesters attempting to remove their money from banks. “But incidents like that, while obnoxious, actually give me hope. They show that, whatever the short-term impact of Bank Transfer Day, the symbolic act of refusing to subsidize foreclosures and financial malpractice is powerful enough to make major banks uneasy.”

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4 Simple Steps for Taking Your Money Out of the Vampire Banks

Robert Coss — Mon, 31 Oct 2011 15:24:26 +0000

clipped from www.alternet.org

Bank Transfer Day (Nov. 5) is just around the corner. Time to assert your economic citizenship and end the dysfunctional relationship with your blood-sucking bank.

October 30, 2011 |

Can’t pitch a tent at Zuccotti Park? Not to worry. There’s something meaningful you can do to stand up to vampire banks that bleed the economy — and your wallet. The feeling of satisfaction amply rewards the inconvenience.

I know. I decided to break up with my bank this week. The whole thing was an arranged marriage from the start. HSBC and I were joined because it gobbled up Marine Midland, the bank I actually signed up for in the late 90s. The truth is that my bank was taking advantage of my trust and abusing my loyalty. So I said sayonara.

Does my bank care? From a financial perspective, not really. (Although if enough municipalities, states and big pension funds move their money, that could start to hurt.) But breakups are bad for PR, and the symbolic action against the menace of Too Big to Fail is good for citizen morale.

Bank Transfer Day is the brainchild of Kristen Christian, a 27-year-old Los Angeles art-gallery owner who picked Nov. 5 as a hat tip to British folk hero Guy Fawkes. In 1605, Fawkes attempted to blow up the House of Lords and was captured and executed, but not before impressing King James with his “Roman resolution.” (When asked what he was doing with so much gunpowder, Fawkes memorably replied: “to blow you Scotch beggars back to your native mountains.”) If the 28,000 likes on the Bank Transfer Day Facebook page is any indication, Christian’s idea has sparked a wave of populist enthusiasm. We’re in a season of inspiration, and it feels good to stand up and be counted. By something other than your vampire bank’s actuary. Let’s get started.

1. Facing Reality

If your institution’s name is Bank of America, Wells Fargo, Citibank, or Chase, you may skip this step. Your bank is a Too Big to Fail behemoth that helped tank economy and used your tax dollars as a life preserver. It’s time to sail on.

Otherwise, do a little research. My own bank, HSBC, is a bit lower down in the list, but according to systemically dangerous institution” (SDI). In other words, a Too Big to Fail poster child.

HSBC is guilty of several crimes against humanity, including star billing in the subprime crisis and a penchant for fighting regulation that would make the banking industry safer.

Furthermore, HSBC is currently making mind-blowing profits (they doubled in 2010). Yet it has recently sent letters informing me of jacked up fees on ATM usage and line of credit accounts. Why? Could it be that HSBC is colluding with Bank of America, which recently announced open season on customers with its new debit card fee? Something sure smells rotten.

I therefore proclaim HSBC unworthy of our relationship. If you’re not sure about your bank, there’s a handy tool available to help you make an assessment. In partnership with the Move Your Money campaign kicked off in ’09 by Arianna Huffington, economist Rob Johnson, and filmmaker Eugene Jarecki, Chris Whalen’s firm Institutional Risk Analytics offers a proprietary system that grades banks using FDIC data. Simply enter your zip code and you will find a list of high quality banks in your area. If your bank is not on that list, take a long, hard look. Small doesn’t necessarily mean better, which is why Whalen’s tool only lists banks which are financially sound and FDIC insured, no matter what the size.

And consider the financial advantages of escaping the clutches of monster megabanks. Smaller banks and credit unions usually give you better deals on credit cards, for example, because their business models have not relied on penalty fees and the shady practices that go along with them. They also often superior rates on loans and other services.

2. Finding a New Dance Partner

Whalen’s tool will also help you find a new institution. When I typed in my zip code, a constellation of banks and credit unions popped up on a New York City map. My next steps were to make a list of the things that are important to me (easy walking distance, free checking, low ATM fees, etc) and start shopping.

There were a couple of credit unions in my hood, but not really close enough to be convenient. Even in this era of electronic and online banking, I prefer a bank I can walk to in a jiffy. Some of the small banks nearby required minimum balances on checking accounts, which spells fees, so I crossed them off the list. After comparing offerings online, the bank that seemed to fit my requirements was Amalgamated Bank, with two branches within 10 blocks.

Other than its extremely ugly name, Amalgamated is known as America’s only union-owned commercial bank, started in 1923 by the Amalgamated Clothing Workers of America to serve working people. Labor unions, despite their flaws, remain a key force against plutocracy. So Amalgamated certainly beats HSBC in terms of social value. It also has free checking, lower out-of-network ATM fees ($1) and no minimum balance required on either checking or savings accounts.

You may fear a lack of ATMs with smaller banks, but Amalgamated, like many, is part of a huge, surcharge-free network called AllPoint, with machines at Target, CVS, Walgreens, and other common retail outlets. There are over 4,000 Allpoint ATMs in New York and New Jersey, and there’s a web tool and mobile app that allows me to search for nearby machines wherever I am. With the ridiculous $2.50 charged by HSBC on out-of-network ATMs, I’m actually a lot less likely to incur fees with Amalgamated. The deli right across the street from my apartment has an AllPoint ATM. Yippee!

Bonus: Amalgamated is actually the bank used by the Occupy Wall Street movement, and advertises signs supporting the protesters at locations near Zuccotti Park. This cheered me as I headed to the not-so-fancy main branch on 7th Avenue in Manhattan. To my surprise, no one at Amalgamated had ever heard of the Move Your Money campaign. The young manager who helped me stared blankly as I told her all about it and peppered her with questions. An older manager quickly appeared explaining that the young woman was a manager-in-training who likely did not have Protest 101 as part of her curriculum. The more experienced manager had not heard of the campaign either, but she was vaguely aware that some folks were upset about “uh, which bank was it with those debit fees?” Okay. A little cluelessness and a surprising lack of PR acumen. But there were pro-labor signs on the wall and I got lots of spiffy brochures on services like free checking — which includes actual rebates on debit card use rather than fees. Sold!

3. Planning Your Exit

You’ll want to keep your current checking account open for a little while in order for any outstanding checks to clear and to allow time for a new account to be set up. But you can go ahead and close down your savings account. It took me exactly ten minutes to do that at HSBC and put a stop on the automatic monthly transfer from my checking to my savings account. You can get your money in cash or just transfer everything over to your checking account.

I had a fantasy of going all 99 percent on the folks at HSBC, but the only people at my branch were two friendly women behind the counter and a couple of tellers. When asked why I was closing my savings account, I politely mentioned the new fees and noted the rather low (practically non-existent) interest rates. They just smiled and assisted me. It was that simple.

The next step was to open a checking and savings account at Amalgamated. If you do automatic bill paying, you will have to switch those systems over, and that’s a bit of a hassle. Banks know this, which is why they encourage customers to use them. If you have allowed any businesses to directly debit your account, contact those businesses and provide them with your new bank’s information. You’ll also want to ask your employer to reroute your paycheck if you use direct deposit. Your new bank will provide you with an authorization form. Then you can order your new checks and debit/ATM cards, which will typically arrive within 1-2 weeks. You should also consider ordering a new credit card and getting rid of your old one.

4. The Final Good-bye

Once direct deposits are going into your new account and you’ve made sure that there are no outstanding checks or automatic debits that need to clear, go ahead and close your old checking account. But make sure you follow your bank’s produces for doing this or you could end up with fees for having an empty of inactive account.

I found that the whole process was actually pretty painless. Rep. Brad Miller (D-NC) has introduced a bill to ban nasty practices like exit fees to make ending your dysfunctional bank relationship even easier.

Having taken the plunge, I invite you to join me. The water feels good. And even better, no sharks.

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How Wall Street Occupies Washington

Robert Coss — Sun, 16 Oct 2011 21:47:11 +0000

http://www.truth-out.org/print/7574

The Other Occupation: How Wall Street Occupies Washington

Sunday 16 October 2011

by: Zaid Jilani, ThinkProgress [3] | News Analysis

The US Capitol Building, Washington DC. (Photo: drewsaunders [4])

As ThinkProgress has previously noted [5], the 99 Percent Movement has been set off thanks to long-standing economic inequities and and a recession caused primarily by Wall Street’s misdeeds.

Wall Street did not engage in reckless financial behavior — which plunged 64 million people worldwide into extreme poverty [6] — in a vacuum.

In order to engage in these practices that brought the world’s economy to its knees, Wall Street had to make sure that the federal government based in Washington, DC would both de-regulate the financial industry (and provide lax oversight) and that Congress and the Federal Reserve would bail out banks with few strings attached if they were in danger of failing.

The way the financial industry and big banks won this kid glove treatment from the federal government is by occupying Washington — flooding it with campaign contributions, lobbyists, and its own staffers and executives to occupy key positions of power. ThinkProgress has assembled a rundown of three ways Wall Street has occupied Washington:

1. Wall Street Occupies Washington With Massive Campaign Contributions: On Nov. 12, 1999 President Bill Clinton signed into law [7] the repeal of the Glass-Steagall Act of 1933, a Depression-era law that created a firewall between commercial and investment banking. Repealing this law was one of the top legislative goals of the financial industry. In the 1998 election cycle, commercial banks spent $18 million [8] on congressional campaign contributions, with 65 percent going to Republicans and 35 percent going to Democrats. Securities and investment firms donated over $40 million [9]. The mega-bank Citibank spent $1,954,191 [10] during that cycle, and it was soon able to merge with Travelers Group as a result of the repeal of banking regulations. Between 2008 and 2010, when new financial regulations were being written following the financial crisis, the finance, insurance, and real estate industries spent $317 million [11] in federal campaign contributions, with $73 million of that coming from Political Action Committees (PACs). The hold of campaign contributions is starkly bipartisan. As Sen. Jim Webb (D-VA) explained to Real Clear Politics in an interview last year, he couldn’t get a vote on a windfall profits tax on bonuses at bailed out banks due to campaign contributors. “I couldn’t even get a vote,” Webb explained. “And it wasn’t because of the Republicans. I mean they obviously weren’t going to vote for it. But I got so much froth from Democrats saying that any vote like that was going to screw up fundraising [12].”

2. Wall Street Occupies Washington With Its Lobbyists: One way to control what Washington lawmakers do is to give them access to exclusive funding streams that allow them to finance their campaigns. But yet another is to control the stream of information. From the deregulatory period of 1998 to 2009, the financial sector spent $3.3 billion [13] on lobbyists. In 2007, the financial industry employed 2,996 separate lobbyists, five for every member of Congress. During the debate over financial reform last year, the industry flooded the nation’s capital with its own lobbyists. On just one issue — regulating derivatives — financial industry lobbyists outnumbered consumer group lobbyists and other pro-reform advocates by 11 to 1 [14]. In fact, by 2010, the industry had hired a whopping 1,600 [15] former federal employees as lobbyists. Included among these lobbyists were high-ranking [16] former public leaders like former Democratic House Majority Leader Dick Gephardt (MO) and Kenneth Duberstein, Ronald Reagan’s chief of staff. Much of this lobbying is done through elite K Street firms [17] that specialize in hiring government insiders. Yet there are also bank-funded front groups [18] like the Chamber of Commerce that deploy lobbyists on behalf of the big banks.

3. Wall Street Literally Occupies Washington By Placing Its Staff In Government Positions: Shortly after Clinton signed into law the repeal of the firewall between commercial and investment banking, his Treasury Secretary andGoldman Sachs alumni Robert Rubin [19] left the government to work for newly-formed Citigroup — whose merger was only possible thanks to the policies Rubin championed and enacted. His compensation at Citigroup topped $15 million [20], not including stock options. Goldman’s alumni are found across the government, including bailout architect and former Treasury Secretary Hank Paulson [21], Paulson’s bailout chief Neil Kashkari [22], and Commodity Futures Trading Commission chairman Gary Gensler [23]. The revolving door, of course, works both ways. Obama budget director Peter Orszag joined Citigroup [24] shortly after leaving the government. This is just a small sampling of Wall Street’s staffers who found their way into government.

These three facets of lobbying do not include how these financial interests fan their funding out among nonprofits and think tanks, and how they fund media campaigns and public relations efforts within the parameters of the geographic territory of the District of Columbia. The amount of money spent on these tasks is likely formidable but is difficult to track.

There are reforms that can be enacted to combat this Wall Street infiltration of Washington. Ranging from public financing of federal campaigns [25] to new disclosure laws [26] to placing restrictions [27] on lobbying from federal public officials, these reforms would blunt the impact of big money on federal policymaking. Yet only vigilance from the American public can get such reforms enacted.

Occupy Wall Street protesters are occupying public space based on one ordinance – the First Amendment. Support the right of Occupy Wall Street protesters to peacably assemble by signing this petition, [28] which will then be sent to mayors, police chiefs and major media across the country.

Originally published on ThinkProgress

[2]

Source URL: http://www.truth-out.org/other-occupation-how-wall-street-occupies-washington/1318774400

Links:

[1] http://www.truth-out.org/print/7574

[2] http://www.truth-out.org/printmail/7574

[3] http://thinkprogress.org/special/2011/10/12/341801/the-other-occupation-how-wall-street-occupies-washington/

[4] http://www.flickr.com/photos/drewbsaunders/2152873896/

[5] http://thinkprogress.org/economy/2011/09/18/321844/why-people-protest-wall-street/

[6] http://www.ausaid.gov.au/makediff/gec.cfm

[7] http://mortgageblues.us/news/398

[8] http://www.opensecrets.org/industries/contrib.php?ind=F03&cycle=1998

[9] http://www.opensecrets.org/industries/contrib.php?ind=F07&cycle=1998

[10] http://www.opensecrets.org/orgs/totals.php?id=D000000071&cycle=2012

[11] http://www.opensecrets.org/industries/totals.php?cycle=2012&ind=F

[12] http://www.realclearpolitics.com/articles/2010/11/08/jim_webb_why_reagan_dems_still_matter_107875.html

[13] http://www.wallstreetwatch.org/reports/sold_out.pdf

[14] http://www.citizen.org/pressroom/pressroomredirect.cfm?ID=3134

[15] http://money.cnn.com/2010/06/03/news/economy/Wall_Street_lobbyists/index.htm

[16] http://www.washingtonpost.com/wp-dyn/content/article/2010/04/28/AR2010042805753.html

[17] http://www.iwatchnews.org/2010/06/08/2657/top-10-lobby-firms-take-financial-reform-bank

[18] http://thinkprogress.org/economy/2010/04/24/93244/stealth-chamber-banks/

[19] http://financialedge.investopedia.com/financial-edge/0709/Goldman-Sachs-Unusual-Earnings-For-An-Unusual-Company.aspx#axzz1aaVE0aKv

[20] http://www.nytimes.com/2000/03/07/business/rubin-s-pay-is-15-million-says-citigroup-proxy-filing.html

[21] http://www.bearishnews.com/post/524

[22] http://blogs.wsj.com/deals/2008/10/06/meet-neel-kashkari-the-man-with-the-700-billion-wallet/

[23] http://www.nytimes.com/2010/03/11/business/11cftc.html?pagewanted=all

[24] http://money.cnn.com/2010/12/09/news/companies/citi_orszag/index.htm

[25] http://www.commoncause.org/site/pp.asp?c=dkLNK1MQIwG&b=4773857

[26] http://www.opencongress.org/bill/111-h5175/show

[27] http://trueslant.com/allisonkilkenny/2009/07/06/banning-lobbying-could-save-american-democracy/

[28] https://salsa.wiredforchange.com/o/6503/images/RA_SignHere_button.jpg

[29] http://www.truth-out.org/printmail

[30] http://www.truth-out.org/content/zaid-jilani

[31] http://org2.democracyinaction.org/o/6694/p/salsa/web/common/public/signup?signup_page_KEY=2160

[32] https://members.truth-out.org/donate

[33] http://www.truth-out.org/?q=content/activists-hold-wall-street-accountable-economic-crisis

[34] http://www.truth-out.org/?q=delicate-moment-occupy-wall-street-movement/1318336894

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Financial Wealth in America – get the picture?

Robert Coss — Thu, 13 Oct 2011 15:46:19 +0000

clipped from www.alternet.org

10% own 70% Net Wealth———–110,000,000 own 15%
10% own 70% Financial Wealth—110.000.000 own 7%
10% take 45% Individual Income—70.000,000 take 13%
10% own Congress

10% own White House

CORPORATE ARISTOCRACY COURTESY CONSERVATIVE REPUBLICANS

Give them 8 more years of Total Control and burn baby burn in streets of America
Equality in a true Democracy has Wealth distribution 30-60-10
America has 80-20-0

Aristocratic Dictatorship strangles the Middle Class

They are choking us now.

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Economic Bad Times Just Beginning

Robert Coss — Sun, 09 Oct 2011 16:25:31 +0000

Economic Bad Times Just Beginning By Chuck Baldwin September 29, 2011

This column is archived at http://chuckbaldwinlive.com/home/?p@19

A couple of weeks ago, I was honored to attend a private gathering of influential conservative leaders just outside Washington, D.C. While many differences of opinion were expressed on a variety of subjects, there was one subject on which every single attendee was unequivocally united: the US economy is soon going to tank! As one man said, In a couple of years, these could be the good old days. Another thing the august assembly was agreed on was that the only Presidential candidate in the two major parties who would actually have the guts to do what needs to be done is Congressman Ron Paul. And the national press corps (including FOX News) is doing everything in its power to make sure that the American people do not hear much of what Dr. Paul has to say for that very reason.

Neither the Democrat nor Republican parties in Washington, D.C., have any intention of addressing the real reasons why the American economy is on the verge of collapse. The only thing the two major parties–and the elites who dominate them–can see is the next election. The lust for power is the one thing that both the Donkeys and the Elephants share in common. And neither party is willing to disappoint their constituents who are feeding at the teat of that fat hog known as Washington, D.C.

Democrats want to extend Washingtons insatiable appetite for deficit spending in order to promote the Welfare State. And Republicans want to extend Washingtons insatiable appetite for deficit spending in order to promote the Warfare State. Conservative or liberal, hawk or dove, Christian or secularist, Democrat of Republican: they all are lining up at the back door of Uncle Sams kitchen begging for a handout!

Except for Ron Paul, no one is giving more than ten-second sound bites of lip service to what is necessary to conquering the real culprits of Americas economic malaise: expunging the fiat money system and returning America to hard money principles, dismantling that cabal of international criminals known as the Federal Reserve, returning Americas foreign policy to its constitutional parameters of non-interventionism, eviscerating those federal programs and entities not prescribed by the US Constitution, getting rid of the income tax, and taking the United States out from under the power and influence of the United Nations. No one else has the guts to even seriously talk about these issues, much less to actually do something about it! And if the powers that be successfully defeat Dr. Pauls candidacy, it wont matter to a tinkers dam who gets elected President in 2012 (that is, unless a constitutionalist third-party candidate miraculously wins the Presidency)! Republican or Democrat, it will be business-as-usual. And that means this house of cards that these corrupt politicians and bankers have been playing with all these years is going to come crashing down. In fact, the signs are ubiquitous that the crash has already begun.

Writing for BlacklistedNews.com, Michael Snyder has recently produced two trenchant reports that show the handwriting on the wall for Americas financial future. Snyder begins this first report saying, Goldman Sachs is doing it again. Goldman is telling the public that everything is going to be just fine, but meanwhile they are advising their top clients to bet on a huge financial collapse. On August 16th, a 54 page report authored by Goldman strategist Alan Brazil was distributed to institutional clients. The general public was not intended to see this report. Fortunately, some folks over at the Wall Street Journal got their hands on a copy and they have filled us in on some of the details.

It turns out that Goldman Sachs secretly believes that an economic collapse is coming.

Snyder concludes his report saying, Sadly, the 54 page report mentioned above is right–we really are facing a global debt meltdown and we really are heading for an economic collapse.

You arent going to hear the truth from the mainstream media or from our politicians because keeping people calm is much more of a priority to them than telling the truth is.

The debt crisis in the United States is unsustainable and the debt crisis in Europe is unsustainable. Right now we are in the calm before the storm, and nobody knows exactly when the storm is going to strike.

But let there be no doubt–it is coming.

The amazing prosperity that we have enjoyed for the last several decades has largely been a debt-fueled illusion. It was a great party while it lasted, but now it is coming to an end and the aftermath of the coming crash is going to be absolutely horrific.

Keep watch and get prepared. We dont know exactly when the collapse is going to happen, but it is definitely on the way and now even Goldman Sachs is admitting that.

See Snyders report at:

http://tinyurl.com/3tcg4ro

And in a second report, Michael Snyder writes, If you think the U.S. economy is bad now, just wait for a few months. Things are about to become absolutely nightmarish. None of the long-term economic trends that are hollowing out our economy have been addressed and more bad economic news seems to come out virtually every single day. Now there is constant talk of the “next recession” in the mainstream media. But did the last recession ever truly end? The number of good jobs continues to decline, more stores are closing, incomes continue to go down, credit card debt and student loan debt are soaring, the housing market resembles a corpse, the number of Americans living in poverty continues to rise and government debt is at unprecedented levels. We are losing blood fast, and almost all of our leaders are either too corrupt or too incompetent to be able to do anything about it. The U.S. economy really and truly is about to go into the toilet, and if something is not done very quickly we are going to experience a complete and total economic disaster in this nation.

Snyder then goes on to highlight 30 signs that the US economy is about to go down the drain. Read his report at:

http://tinyurl.com/3fxqjua

And for those of you who believe that such talk is just Chicken Little déjà vu, you need to know that many economists, politicians, and even federal police agents are personally preparing for a prolonged economic collapse. And if youre not preparing, youre either not paying attention or youre preferring to ignore the warning signs. Neither option is healthy.

I have told readers before of my friend Chuck Coppes phenomenal book, Americas Financial Reckoning Day. Once again, I urge readers to obtain this book. I further follow Chucks recommendation that you seriously consider getting as much as you can of your fiat paper currency converted into hard assets ASAP! The gold and silver markets are being manipulated downward, but these tactics will not last forever. When the crash occurs, hard assets will skyrocket! Thats what virtually every economic forecaster that I have any confidence in is saying. And I believe them!

To obtain Chuck Coppes book or to contact him regarding obtaining precious metals, go to:

http://tinyurl.com/3dvebvw

So readers will know up front, Chuck has felt led to support my work, and I am equally enthusiastic about supporting his work. I personally know Chuck, as he moved his business from his home State of Arizona, and has joined with us here in the Flathead Valley of Montana. (And we need many more businessmen to consider doing the same!)

As an aside, for those of you who are considering joining us here in the Flathead Valley of Montana, here is the email address of George Hudson, who, himself, escaped from California to join us in Montana. George has taken it upon himself to help people with the information and resources they might need to help relocate to the Valley. His email address is: hudnut1940@gmail.com

An old maxim says, Forewarned is forearmed. Ladies and gentlemen, we need to prayerfully and seriously weigh the evidence that is before us and make decisions NOW to prepare ourselves for the days to come. We need to heed the words of Scripture that twice say, A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished. (Prov. 22:3; 27:12 KJV)

I further highly recommend that people who are serious about preparation, relocation, and related matters glean heavily from the works of James Wesley, Rawles and Joel Skousen.

Rawles web site is:

http://www.survivalblog.com/

Skousens web site is:

http://www.joelskousen.com/

After having attended the above-referenced meeting near Washington, D.C., I am more convinced than ever that we did the right thing in relocating to the beautiful Flathead Valley of Montana. I also came away from that meeting with the firm conviction that my friend was right when he said, In a couple of years, these could be the good old days.

P.S. To be sure you have my up-to-date contact information, please refer to this web page:

http://chuckbaldwinlive.com/home/?p51

*If you appreciate this column and want to help me distribute these editorial opinions to an ever-growing audience, donations may now be made by credit card, check, or Money Order. Use this link:

http://chuckbaldwinlive.com/home/?page_id

Chuck Baldwin

NOTE TO THE READER:

Chuck Baldwin is a syndicated columnist, radio broadcaster, author, and pastor dedicated to preserving the historic principles upon which America was founded. He was the 2008 Presidential candidate for the Constitution Party. He and his wife, Connie, have 3 children and 8 grandchildren. See Chuck’s complete bio at:

http://chuckbaldwinlive.com/home/?page_id=6

This email editorial cannot be considered Spam as long as the sender includes contact information and a method of removal.

To subscribe, click on this link and follow the instructions: http://chuckbaldwinlive.com/home/?page_idE0

To unsubscribe, click on this link and follow the instructions: http://chuckbaldwinlive.com/home/?page_idE7

Chuck Baldwin’s commentaries are copyrighted and may be republished, reposted, or emailed providing the person or organization doing so does not charge for subscriptions or advertising and that the column is copied intact and that full credit is given and that Chuck’s web site address is included.

Editors or Publishers of publications charging for subscriptions or advertising who want to run these columns must contact Chuck Baldwin for permission. Radio or television Talk Show Hosts interested in scheduling an interview with Chuck should contact sec@chuckbaldwinlive.com

Readers may also respond to this column via snail mail. The postal address is P.O. Box 10, Kila, MT 59920. When responding, please include your name, city and state. And, unless otherwise requested, all respondents will be added to the Chuck Wagon address list.

Please visit Chuck’s web site at http://chuckbaldwinlive.com

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Who Paved the Roads to Riches in America?

Robert Coss — Fri, 07 Oct 2011 20:49:07 +0000

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Elizabeth Warren on Debt Crisis, Fair Taxation

Elizabeth Warren on the debt crisis and fair taxation. To support her Massachusetts Senate Campaign, visit http://www.ElizabethWarren.com

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“the scariest job chart ever”

Robert Coss — Mon, 06 Dec 2010 02:41:11 +0000

clipped from www.huffingtonpost.com

The Huffington Post | Ryan McCarthy

First Posted: 12- 5-10 12:58 PM | Updated: 12- 5-10 01:04 PM

After Friday’s grim jobs data, which showed that the U.S. added just 39,000 net jobs in November, it’s worth noting again just how severely the recession has impacted the job market.

This disturbing chart — repeatedly referred to as “the scariest job chart ever” by Henry Blodget — from Calculated Risk shows, in percentage terms, how the job market has failed to rebound at the rates seen after previous recessions. “This is by far the worst post-WWII employment recession,” Calculated Risk notes.

With 15 million officially unemployed, the job situation may actually be worse than the headline figures. As HuffPost’s Peter S. Goodman noted, some 17 percent of Americans couldn’t find enough work or had given up looking for work in November. Among black Americans the unemployment rate hit 16 percent, compared to 9.8 percent nationally.

All of which makes it even more troubling that 4 million Americans are set to lose unemployment benefits even if Congress passes an extension to the 99-week limit, as HuffPost’s Shahien Nasiripour reported last week. As millions of Americans lose a crucial source of income, the economy is sure to suffer as a result.

The social costs of a mass lapse in unemployment benefits could be even more devastating. “Look for homelessness to rise and food lines to get longer as we approach Christmas if the situation can’t be resolved,” Diane Swonk, chief economist at Mesirow Financial, told the AP.

Check out the chart below — and check out Calculated Risk for more information:

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What the Fed’s $600 Billion Plan Really Means

Robert Coss — Sun, 05 Dec 2010 04:38:58 +0000

clipped from finance.yahoo.com

What the Fed’s $600 Billion Plan Really Means

Posted Nov 03, 2010 04:19pm EDT by Daniel Gross in Investing, Banking, Politics

The Federal Reserve Wednesday announced its latest effort to spur economic growth: a plan to purchase up to $600 billion of government bonds through June 2011.

clipped from finance.yahoo.com

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clipped from finance.yahoo.com

Why is the Federal Reserve buying bonds?

It wants to lower interest rates, in the hopes that doing so will loosen the supply of credit and spur more economic activity. The central bank’s main tool for reducing rates is to slash the short-term overnight lending that banks charge to one another, the so-called Federal Funds rate. Bring short-term rates down, and long-term rates tend to follow. In normal times, that’s as far as the Fed usually goes. In the past three years, the Fed has reduced the Fed Funds target rate 10 times, from 5.25 percent to between zero and .25 percent. It’s been at that extremely low level since the fall of 2008.

Once the Fed Funds rate can’t get any lower, what else can the Fed do?

It can buy assets, or engage in what’s known as quantitative easing (QE). Adjusting the Fed Funds directly influences short-term rates. The Fed can also influence long-term rates by purchasing (or selling) long-term debt in the open market. When lots of people — or one big buyer — buy bonds at the same time, it drives prices up and interest rates down. As the nation’s central bank, the Fed can create money and simply announce that it will buy large quantities of bonds.

Hasn’t it done something like that already?

Yes. In its first effort at quantitative easing, the Fed in 2009 and early 2010 bought more than $1 trillion in mortgage-backed securities in an effort to reduce interest rates on home mortgages. Partially in response to the purchases, mortgage rates fell to historically low levels.

So what is it doing now?

This is a smaller effort. The Fed says that, as part of an effort to lower interest rates, it will buy $600 billion of Treasury bonds between now and the end of June 2011, at a rate of about $75 billion per month. (The New York Fed has the details of the purchases here.)

But the market reacted at first by pushing interest rates on the 10-year and 30-year government bonds higher. What gives?

The Fed said it would focus its buying power on bonds that mature in four to six years,
with more than 85 percent of the purchases concentrated in bonds that mature between 2.5 and 10 years from now. Investors were expecting that the Fed might spend more on longer-dated Treasury securities, and sold them once they learned of the Fed’s plans.

Will these purchases alone guarantee that interest rates will fall?

No. Investors love to repeat the mantra: Don’t fight the Fed. But as much firepower as the central bank possesses, the Fed isn’t the only powerful economic force in the world. And interest rates can be impacted by all sorts of factors. If China’s central bank cuts back sharply on its purchases of U.S. government bonds, interest rates will rise. Investors’ attitudes about the pace of growth, or inflation, play an important role in determining market interest rates.

Whom is this good for?

In theory, it should be good news for borrowers of all types, but in particular corporate ones. If mid-term borrowing costs fall across the board, more companies should be able to refinance existing debt at lower levels, or take on new debt at lower cost. In theory, lower rates for big borrowers (i.e. banks) should mean credit will be more plentiful, or available on easier terms to businesses and individuals. And of course, any move the Fed makes to reduce interest rates tends to be a positive for stocks.

Whom is this bad for?

Savers. In this low-interest-rate environment, people who live on fixed incomes have had great difficulty finding safe instruments that deliver significant returns. To the extent this effort succeeds at holding longer-term interest down, it makes that task all the more difficult.

Government bonds are risk-free investments. What are the risks the Fed runs by taking more government bonds onto its balance sheet?

There are a couple of risks. First, low interest rates and the expansion of the Fed’s balance sheet tend to weaken the dollar. But the second — and larger — risk is that it won’t work. Interest rates are already exceedingly low, and it’s unclear how lowering them a bit more will induce companies and individuals to change their behavior significantly. Quantitative easing doesn’t directly address the underlying problem in the economy: that demand is too weak to fuel satisfactory growth. To combat weak demand, fiscal policy – e.g., tax cuts, rebates, a payroll tax holiday, jobs program — is often more effective than monetary policy. But fiscal policy remains paralyzed. Ideally, fiscal and monetary policy should be working in tandem. In the current situation, Bernanke is cranking up the volume while the political system is sitting on its hands. Imagine a two-engine jet trying to fly with only one engine revving.

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“the scariest job chart ever”

What the Fed’s $600 Billion Plan Really Means

What the Fed’s $600 Billion Plan Really Means

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