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EDITOR’S COMMENT: One of our readers called in to say that we were acting as though we had someplace to go when we don’t. He meant that in his native country, Chile, when the Banks took over and things became bad for the average citizen they amrched in unison in the streets because they understood that bad things don’t just happen to bad people, they happen to everyone who is a potential target or just collateral damage. He said ultimately he migrated to the United States because that was the only solution to the conditions in his country for him and his family. What concerns him, he says, is that if the U.S. continues down the same path as third world economies and becomes a third world economy itself, where will we go?

How The U.S. Will Become a 3rd World Country (Part 2)

Tyler Durden's picture

Submitted by Tyler Durden

Submitted by Ron Hera of Hera Research

How the U.S. Will Become a 3rd World Country (Part 2) (Part 1 found here)

The United States is quickly coming to resemble a post industrial neo-3rd-world country.  Unemployment, lack of economic opportunity, falling real wages and household incomes, growing poverty and increasing concentration of wealth are major trends in the U.S. today.  Behind these growing problems are monetary inflation created by the Federal Reserve’s monetary policies, federal government deficit spending and the dominant influence of “too big to fail” banks and large corporations in Washington D.C., which has altered the direction of law in the United States.  To make matters worse, the U.S. government faces a historic fiscal crisis.

High unemployment, lack of economic opportunity, low wages, widespread poverty, extreme concentration of wealth, unsustainable government debt, control of the government by international banks and multinational corporations, weak rule of law and counterproductive policies are defining characteristics of 3rd world countries.  Other factors include poor public health, nutrition and education, as well as lack of infrastructure—factors that deteriorate rapidly in a failing economy.

Apparently ineffective regulation and relatively little law enforcement action by the federal government in the wake of the sub-prime mortgage meltdown resulted in widespread speculation that special interests had taken priority over the rule of law.  Critics have also charged that the federal government’s policies threaten to eliminate what remains of the American middle class.

Accelerating Concentration of Wealth

In response to the economic downturn that began in 2007 and the start of the financial crisis in 2008, the U.S. federal government and the Federal Reserve resorted to a radically inflationary policy intended to save banks and to shepherd the U.S. economy through a recession.  Instead, radically inflationary policies greatly increased the concentration of wealth.

Under ordinary circumstances, monetary inflation has the effect of redistributing wealth in favor of those who receive newly created money first.  The value of money is reduced as a function of the number of currency units in the economy but recipients of newly created money can spend it before it loses value.  In a declining economy, however, the wealth redistribution effects of inflation are magnified.

When the Federal Reserve or the federal government supports banks and financial markets through liquidity injections, bailouts, asset purchases, quantitative easing, etc., the lion’s share of financial support, i.e., newly created money, is captured by the largest financial institutions and by the wealthiest 1% of Americans.  Money printing skews the distribution of money over the economy while the value of money, i.e., the purchasing power of wages and savings, is reduced.  The overall effect is a wealth transfer from proverbial Main Street to literal Wall Street.

Looming Fiscal Crisis

U.S. government debt and deficit spending have markedly accelerated over the past decade.  For example, The U.S. Department of Homeland Security (DHS) was created and the U.S. military grew to 3 million active duty and reserve personnel, not including contractors.  Since 2001, the U.S. spent approximately $1 trillion on military expansion while the total cost of the U.S. wars in Afghanistan and Iraq has been estimated to exceed $3.7 trillion.

Although the U.S. federal government remains in denial, the Congressional debt ceiling debate and subsequent U.S. credit rating downgrade on August 5, 2011 were only the tip of the iceberg.  In fact, the United States faces a historic fiscal crisis.

As of 2012, the majority of new federal government debt will stem from interest on existing debt.  Treasury bond issues totaled $2.55 trillion in 2010, roughly 2x the federal budget deficit of $1.3 trillion.  Artificially low U.S. Treasury bond yields, created by the Federal Reserve’s quantitative easing (QE1 and QE2) programs and by its current “Operation Twist,” only slow the rate at which the federal debt balloons.

The U.S. federal government’s fast growing debt is $14.94 trillion, approximately 100% of GDP.  Additionally, future liabilities total $66.6 trillion based on generally accepted accounting principles (GAAP accounting) and using official data from the Medicare and Social Security annual reports and from the audited financial report of the federal government.

1.    Medicare: $24.8 trillion
2.    Social Security: $21.4 trillion
3.    Federal debt: $10.2 trillion* (not including intra-governmental obligations)
4.    State, local government obligations: $5.2 trillion
5.    Military retirement/disability benefits: $3.6 trillion
6.    Federal employee retirement benefits: $2 trillion

The eventual insolvency of the U.S. federal government cannot be averted through any combination of taxes, budget cuts or realistic GDP growth.  Inflationary policies, i.e., increasing deficit spending by the federal government and debt monetization by the Federal Reserve, would devalue the U.S. dollar and potentially trigger a hyperinflationary collapse of the currency.  To stave off the inevitable, interim measures might include tax increases, exchange controls, nationalization of pension funds or other measures similar to those taken in 3rd world countries.

Dominant Corporate Influence

In a 2009 radio interview on Elmhurst, Illinois’ WJJG 1530 AM, Senator Dick Durbin (D-Ill.) explained that “…the banks—hard to believe in a time when we’re facing a banking crisis that many of the banks created—are still the most powerful lobby on Capitol Hill.  And they frankly own the place.”  Senator Durbin was unequivocal in saying that the federal government of the United States is controlled by banks.  Simon Johnson, former chief economist of the International Monetary Fund (IMF), had reached the same conclusion one month earlier in his widely read article The Quiet Coup.  Johnson explained that the finance industry had effectively captured the U.S. government, a state of affairs typical of 3rd world countries.

Corporate influence over the political process, as well as over the tax and regulatory policies of the United States, is at an all time high.  The federal government is the largest single customer in the U.S. economy and, through taxation or regulation, the government can grant or deny market access to private companies and can either prevent or mandate the consumption of their products and services.  As a result, virtually every large corporation in the United States seeks to win the government’s business and to steer government tax policies and regulations in their favor.  Naturally, politicians who accede to the wishes of particular corporations are given campaign funds to ensure their reelection.  In the past decade, the amount of money spent on lobbying has more than doubled and there are currently 24 lobbyists for every 1 member of Congress.

The interdependence of elected officials and the largest U.S. corporations reached a new high with the 2008 bank bailouts.  The influence of private corporations and de facto industrial cartels (comprising the largest corporations in each major industry) over tax and regulatory policies creates significant economic distortions that ultimately compromise the sustainability and the stability of the economy.  Ideally, the government would be an impartial referee, rather than an active business partner that overwhelmingly favors large businesses over small businesses, despite the fact that small businesses account for the vast majority of American jobs.

Impact on the Rule of Law

Corruption, cronyism and weak rule of law are typical of 3rd world countries.  The United States exhibits a clear corporate influence over elections and legislation and, arguably, relatively little law enforcement action where large, legally well-equipped corporations are concerned.  Reports of so-called crony capitalism have appeared in the U.S. news media, but the term “corruption” has been avoided, along with discussion of fundamental reforms.

A cursory examination of legal developments over roughly the past decade evidences a pattern in which U.S. federal law systematically favors the largest financial institutions, as well as a paradigm in which financial institutions heavily influence both the regulations that putatively govern their activities and the laws that apply to consumers of their products and services.  The financial crisis that began in 2008 and the subsequent response of the federal government appear to follow logically from prior legislative events:

  1. 1999 Gramm–Leach–Bliley Act (GLB).  The Act repealed key provisions of the Banking Act of 1933, commonly known as the Glass–Steagall Act.  In the aftermath of the Great Depression, the Glass–Steagall Act prevented depository institutions from engaging in high risk financial speculation.
  2. 2000 The Commodity Futures Modernization Act (CFMA).  The Act deregulated over-the-counter (OTC) derivatives, such as credit default swaps, referred to by Warren Buffett as “financial weapons of mass destruction.”  OTC derivatives were at the heart of the financial crisis that began in 2008 and are the root cause of the “too big to fail” doctrine.  The Act preempted state gaming laws that had prevented banks from speculating in OTC derivatives with no connection to underlying assets.
  3. 2001 USA PATRIOT Act.  The financial provisions of the Act allow banks to collect additional financial information about account holders, for example, linking business accounts to the personal financial records of business owners, thus weakening both financial privacy and the corporate veil.  The Act enhances the ability of creditors to collect and allows federal authorities to monitor financial transactions and to obtain financial records without a subpoena.
  4. 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA).  The Act, which was sponsored by banks and credit card companies, effectively eliminated the concept of a “fresh start” by allowing banks and credit card companies to engage in collections activities, in effect, forever.  As a result, small business owners who end in bankruptcy are less likely to ever start another business.  The Act places banks in front of bankruptcy courts, creates liabilities for bankruptcy attorneys and contains many widely criticized, anti-consumer provisions.
  5. 2008 Emergency Economic Stabilization Act.  The Act, commonly referred to as a “bank bailout,” authorized the United States Secretary of the Treasury to spend $700 billion to purchase distressed assets, especially mortgage-backed securities (MBS).  Instead, the funds were given to foreign and domestic banks to offset their risky MBS, OTC derivatives and other losses.  The bank bailout set a precedent of socializing losses but keeping gains private.  The Act effectively bound the fate of the U.S. Treasury to that of the largest U.S. financial institutions.
  6. 2010 Citizens United v. Federal Election Commission.  The Supreme Court of the United States held that corporate funding of independent political broadcasts in candidate elections cannot be limited under the First Amendment, overruling prior case law and guaranteeing the ability of corporations to influence elections without meaningful restrictions.  The Court’s decision gave carte blanche to corporations to influence elections, legitimized the interdependence of elected officials and large corporations and created a precedent under which the rights of corporations supersede those of citizens.
  7. 2010 The Dodd–Frank Wall Street Reform and Consumer Protection Act.  The Act failed to restore critical provisions of the Glass–Steagall Act, significantly regulate OTC derivatives, break up “too big to fail” banks, prevent another financial crisis and prevent further bailouts.  The Act created a Consumer Financial Protection Bureau, but did not repeal any provision of BAPCPA or restore the financial privacy of U.S. citizens removed by the USA PATRIOT Act.  The Act failed to provide adequate funding to the government’s watchdogs, the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the Federal Bureau of Investigation (FBI), potentially hobbling enforcement.  The Act has also been criticized for the burden it places on smaller competitors in the financial sector, which could ultimately result in an increased concentration of financial power in “too big to fail” banks.

Critics have alleged that, underlying the sub-prime mortgage meltdown that triggered the financial crisis in 2008 was rampant fraud.  Fraud has been alleged at virtually every level from the assessment of property values and credit risk; to the loans themselves and to their securitization as MBS assets; to the ratings of MBS assets as AAA; to hedging or betting against MBS assets in the OTC derivatives market (perhaps including financial firms allegedly betting against MBS assets that they themselves created and sold to clients as AAA assets).  After the crisis, a seeming pattern of fraud continued apparently unabated in the robo-signing foreclosure scandal where documents submitted to courts were falsified.  Despite an avalanche of alleged crimes under existing federal law, no firm or individual of any significance in the financial crisis has yet been prosecuted.

President Barack Obama said in October 2011 that the mortgage finance practices leading to the economic meltdown were “immoral, inappropriate and reckless … but not necessarily illegal.”  Since fraud is, in fact, illegal, critics claim that the U.S. federal government has simply failed to enforce the law.  Adding fuel to the fire, the Solyndra loan scandal could be construed to suggest corruption at high levels and the MF Global debacle could be construed as indicative of weak regulation and law enforcement and even of questionable market integrity.

In theory, selective enforcement of the law risks the creation of two sets of laws: one for big banks and corporations, and for their executives, i.e., those with connections in Washington D.C. or on Wall Street, and one for everyone else.  Among other things, failure to enforce the law could create an environment in which crime pays, but, for ordinary citizens, hard work, prudent financial decision making, saving and investing for the long term do not.

SEE ENTIRE ARTICLE AT how-us-will-become-3rd-world-country-part-2

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29 Responses

  1. Looming Fiscal Crisis??
    what part is looming?
    the part where the writer is searching for food?

  2. Iceland is bucking being drawn into the EU. 70% of the people refuse. They are both enlightened and united against the TBTF bankers. The model there is working, because they took the big banks out of power.

    A new Latin American block has been established, and the U. S. was not allowed to attend or attempt to influence those who attended. The big global brainwashing job the plutocrats have been engaged in is falling apart at the seams.

    China and Russia are engaged in diplomatic relations, scorning the corporate rulers of the U.S. and offering support to countries the big military industrial complex threatens through regime change tactics. We have fallen to new lows in world popularity because we allowed these evil oligarchs to take control of our government, overrule law, stealthily dispatch our personal freedoms and liberty, and without being elected, present their own interests as being those of the U.S. citizens. Their interests couldn’t be further from ours, since we don’t want to control the world through economic terrorism. We must put a stop to their meddling in international affairs before they plunge us into world war.

    The power to yank back control lies with us, the citizens of this once great country. We’ve had it all along, but we are slow to power it up. We only need to mount a total boycott of these corporations to cut off their main source of power–OUR MONEY–and throw all the people in the government out on their collective ass. Yes, we will have to get organized. Yes, we will have to think differently about how we should behave as consumers. We need to get back to the bare minimum government, and we need an alignment of our interests with government.

  3. Has anyone seen this? http://www.scribd.com/doc/74420941/Virginia-Circuit-Court-Order-nullifying-a-first-mortgage-Deed-of-Trust

    I heard that the property involved was worth over a million. Can anyone confirm this? Maybe the courts will stop failing us and prevent the final stages of the huge transfer of wealth from citizens to investment banks and their cronies.

  4. Michael W. Hudson with Max Keiser

  5. “Greedy Bastards”: A Review of Dylan Ratigan’s views on the Financial Crisis
    By William K. Black
    Benzinga Columnist
    November 20, 2011 11:31 PM

    Dylan Ratigan, MSNBC’s financial expert, has written a book about how markets have become perverse. It is an interesting example of how strange “competition” has become. One oddity presented itself on the cover of the package in which the book arrived. The cover proclaimed “Simon & Schuster: A CBS Company.” The author works for NBC. Only in America!

    I was concerned by the title (“Greedy Bastards”). I think that greed is unlikely to have changed greatly over the last quarter century in which the U.S. has suffered three recurrent, intensifying financial crises. I don’t call people bastards, even the self-made ones, because my mother reacted poorly to Speaker Wright referring to me as the “red-headed SOB.” Ratigan’s view on these points turns out to be similar to mine. He argues that the issue is not greed, but perverse incentives. When CEOs have incentives adverse to the public and their customers they tend to act on those incentives and harm the public and their customers.

    This observation is one of those obvious but essential points so often overlooked. A CEOs’ principal function is creating, monitoring, and adjusting the corporation’s incentive structures. There is a massive business literature on this function and CEOs uniformly believe that incentive structures for officers and employees are critical in shaping their behavior.

    There is only one (disingenuous) exception to this rule – when officers and employees act criminally because the CEO has created perverse incentive structures. Suddenly, the CEO is shocked that his officers and employees acted criminally in response to the CEO’s incentive structures that encourage criminal conduct. Ratigan focuses on precisely this exception.

    Anyone who has had the misfortune to listen to compulsory business ethics training by his or her employer will have learned that the key is the “tone at the top” set by the CEO. True, but that always ends the discussion. No employee is going to be trained by his employer as to what to do when the tone at the top set by the CEO is pro-fraud.

    As Ratigan demonstrates, our most elite financial CEOs typically created and maintained grotesquely perverse incentive structures that encouraged their officers and employees as well as “independent” professionals to act criminally in a manner that harmed customers, the public, and shareholders – but made the controlling officers wealthy. Is there any CEO of a lender incapable of understanding that the loan officers and brokers’ compensation depends on volume and yield – not quality – the result will be catastrophic?

    Is there any CEO of a lender incapable of understanding that if the loan brokers’ fees depend as well on the reported debt-to-income and loan-to-value ratios and the broker is permitted to make liar’s loans the result will be that the brokers will engage in endemic, severe inflation of the borrowers’ incomes and their homes’ appraised values? Is there any reader that doubts that the CEOs intended to produce precisely what their perverse incentives were certain to produce? A CEO cannot send a memo to 50,000 loan brokers instructing them to inflate appraisals and use liar’s loans to inflate the borrowers incomes’ but he can, and does, send the same message through his compensation system. None of these perverse incentives produces an unexpected result.

    Ratigan gets right two of the three essentials to understand why we suffer recurrent, intensifying financial crises. First, cheating has become the dominant strategy in finance. Second, cheating is dominant because finance CEOs create such intensely perverse incentives that fraud becomes endemic. The Business Roundtable (the largest100 U.S. corporations), had to react to the Enron era frauds. It chose as its spokesperson a CEO who embodied the best of American big business. This was the response he gave to Business Week when their reporter asked why so many top corporations engaged in accounting control fraud:

    “Don’t just say: “If you hit this revenue number, your bonus is going to be this.” It sets up an incentive that’s overwhelming. You wave enough money in front of people, and good people will do bad things.”

    How did the CEO know about the “overwhelming” effect of creating incentives so perverse that they would routinely cause “good people [to] do bad things”? He knew because he directed and administered such a perverse compensation system. An SEC complaint would soon identify that compensation system as driving accounting control fraud at his firm. His name was Franklin Raines, CEO of Fannie Mae.

    Ratigan can add to the effectiveness of his explanation by adding a description of the third essential driving our perverse incentives. Accounting control fraud, as criminologists, economists, and (competent) financial regulators recognize is a “sure thing”. See George Akerlof and Paul Romer, “Looting: the Economic Underworld of Bankruptcy for Profit” (1993). It produces guaranteed, record (albeit fictional) short-term reported profits if one follows the fraud “recipe” for a lender, which produces guaranteed, extreme compensation for the controlling officers, and causes catastrophic losses. It is a trifecta of guaranteed results that causes CEOs to adopt the perverse incentives they know will cause their officers and employees to follow the fraud recipe. It is the three “de’s” – deregulation, desupervision, and de facto decriminalization that allow the CEOs to put these perverse incentives in place with impunity and produce the criminogenic environments that drive our recurrent, intensifying financial crises.

  6. So now we have Dylan Ratigan promting get money out of politics———–

    well,

    didn’t the traitor W. Wilson President of the USA say this 100 years ago—-

    ““A great industrial nation is controlled by it’s system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world–no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men.” — President Woodrow Wilson

  7. It’s to take charge.

    Get out of debt, somehow, someway.

    Figure it out.

    IF you can BK 7, do it. there is no moral obligation to these fuks.

    Otherwise, just get out of debt, and do not use their credit again, ever.

    And nay freedom be on you. May freedom be on you to create, and exchange your product with others, and may you enjoy the fruits of your labor.

    Oh, what freedom it is………….no car payments, no house payments, no credit card payments,,,,,,,,,,,,,living life as you go………….

  8. credit————promises to pay——–iou”s———modern money on Wall St—–securitization of anything with a cash flow————–

    thank you very much——-keep us in debt—-and you don’t even know who bought the debt since it is global.

    Who bought your debt to earn 10% interest from the Federal Reserve System of banks?

    Why it could be some drug lord in Mexico? It could be the king of of some stupid country that you don’t care about? That’s where your money goes when you borrow on credit. Yah, that’s where your exchange money for working a job at McDonalds for flipping burgers and you borrow 2000 dollars on your credit card to buy some TV, and your payments go to some Japan, or China rich dude. It’s all global to provide lower payments and some other such hidden bull crap.

    Jokes on you. Go ahead and use your credit card. Go ahead and take out a loan from one of these big banks.

  9. “A great industrial nation is controlled by it’s system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world–no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men.” — President Woodrow Wilson

    ——————-

    duhhhhhhhhhhhhh

    don’t use credit————–to stop them———-

  10. “Some people think the Federal Reserve Banks are the United States government’s institutions.
    They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers” — Congressional Record 12595-12603 — Louis T. McFadden, Chairman of the Committee on Banking and Currency (12 years) June 10, 1932

  11. “The Federal Reserve banks are one of the most corrupt institutions the world has ever seen.
    There is not a man within the sound of my voice who does not know that this nation is run by the
    International bankers — Congressman Louis T. McFadden (Rep. Pa)

  12. “The difference between the bond and the bill is that the bond lets the money broker collect twice the amount of the bond and an additional 20%. ”

    —————

    Do you get that above statement?

    Who is the money broker?

    That would be the complicated system created by the Federal Reserves System of BANKS,,,,,,,,created in 1913……….

    They are just money brokers………….when in fact the US Government should be,,,,,,,,,,,,or any other Government…………..but they, the money brokers want it all under their control, thus the IMF, the World bank……………

    and

    ” but one fattens the usurer and the other helps the People”

    ——————-

    WHY???????????

    ————-

    It is in control of people world wide…………freedom…………..you ain’t got with the Federal reserve or any central bank…………they are all connected,,,,,,,,,,thus it is called a system and TBTF. Who calls it TBTF? Not the people. Only the corrupted representatives of the people.

    Do not borrow from big global banks. that is what you can do if you want your freedom. Get out of debt somehow, someway, and do not borrow money from these corrupt institutions………

  13. @all

    It still all boils down to the basic, the real stuff as written in the Constitution———–

    http://www.usconstitution.net/xconst_A1Sec8.html

    To borrow money on the credit of the United States;

    To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

    —————————————–

    As Tyler states in above article:

    “Behind these growing problems are monetary inflation created by the Federal Reserve’s monetary policies, federal government deficit spending and the dominant influence of “too big to fail” banks and large corporations in Washington D.C., which has altered the direction of law in the United States.”

    ——–

    Federal Reserve’s MONETARY policies…………..

    excuse me. What does that have to do with the US GOVERNMENT?

    Well, I’ll tell you, it started in 1913 when the Federal reserve took over Congress.

    It’s too funny because everybody in the world relates problems and money and debt in world countries, and mortgage debt and deriavitives, and other such nonsense………….

    when they are talking about the Federal reserve System of Banks…………

    jesus christ already.

    Give back the power of money back to the governments———–instead of the banks……………read the link above I posted and read it.

    It’s so simple but yet all the blah blah blah. It’s all made complexed because the Federal Reserve wants it made complicated so nobody really understands. And guess what, the paid hacks in Government want the same, why? They are paid hacks.

    Oh my god. Why do we need a two party system? So they can become paid hacks………….all paid by the banks and thus the Federal Reserve System of banks. Do Credit unions pay these hacks in Congress? Do local banks pay these hacks?

    Oh my God.

    —————

    As Tyler states above:

    “The United States is quickly coming to resemble a post industrial neo-3rd-world country. Unemployment, lack of economic opportunity, falling real wages and household incomes, growing poverty and increasing concentration of wealth are major trends in the U.S. today. Behind these growing problems are monetary inflation created by the Federal Reserve’s monetary policies, federal government deficit spending and the dominant influence of “too big to fail” banks and large corporations in Washington D.C., which has altered the direction of law in the United States. To make matters worse, the U.S. government faces a historic fiscal crisis.”

    And I highlight———-

    Behind these growing problems are monetary inflation created by the Federal Reserve’s monetary policies.

    and I highlight—————

    To make matters worse, the U.S. government faces a historic fiscal crisis.”

    Dud, that be you Tyler………why does the US Government face a historic fiscal Crisis??????????????

    Because they have to borrow from the Federal Reserve or issue Treasury Notes to other Countries in exchange for money???????????

    Give me a break? why can’t the US Goverment just print money or lend it like the Federal Reserve Does?

    Because as Thomas Edison said 100 years ago :

    “People who will not turn a shovel full of dirt on the project (Muscle Shoals Dam) nor contribute a pound of material, will collect more money from the United States than will the People who supply all the material and do all the work. This is the terrible thing about interest …But here is the point: If the Nation can issue a dollar bond it can issue a dollar bill. The element that makes the bond good makes the bill good also. The difference between the bond and the bill is that the bond lets the money broker collect twice the amount of the bond and an additional 20%. Whereas the currency, the honest sort provided by the Constitution pays nobody but those who contribute in some useful way. It is absurd to say our Country can issue bonds and cannot issue currency. Both are promises to pay, but one fattens the usurer and the other helps the People. If the currency issued by the People were no good, then the bonds would be no good, either. It is a terrible situation when the Government, to insure the National Wealth, must go in debt and submit to ruinous interest charges at the hands of men who control the fictitious value of gold. Interest is the invention of Satan.” — THOMAS A. EDISON

    http://www.jesus-is-savior.com/Evils%20in%20Government/Federal%20Reserve%20Scam/quotes_on_the_federal_reserve.htm

  14. Lanny Breuer= liar, cheat, scoundrel

  15. The United States of America is Now the United States of Amerifraud

    Our enemies are seeing this happen and taking advantage of this.

    Sad but True.
    E.TOLLE’S assessment is sad but true.

    G-d Bless America.
    NEVER AGAIN

  16. @Rabi, oh there’s been a peep and then some. 4700 arrested, but you’d never know it due to the MSM’s ownership. As a matter of fact, the press recently spoke of 10,000 or so protesters in the streets in England, when on the ground accounts put the number at somewhere around 2 million.

    But you’re right, in that it will take people getting out from in front of their monitors and directly in the faces of the cops, the judges, the AGs, and their representatives demanding change – not asking for it – demanding it. And they all need to be voted out next time around. If they’re there, they’re part of the problem.

    What we’re witnessing isn’t even a fraction of what we’ve known and loved about America of old. The courts used to be about equity. And while laymen are dumbfounded at the ways of the courts and understandably so, that should be about accepted procedural processes and Latin-speak, NOT about lack of due process. The very definition of due process says that when a government harms a person without following the exact course of the law, that then is an offense against the very rule of law.

    We must ask ourselves, is what’s happening to all of us lawful or acceptable, under any civilized construct of law? The fact that the debtors have to prove that the creditors don’t have standing goes against centuries of black letter law. The fact that the government, in the form of Freddie, Fannie, and the FDIC, with the backing of every regulatory agency and the administration, is the chief foreclosing agent the world has ever seen, is there anything that is even remotely civil or fair about that?

    It’s time to come to terms with the fact that long before Zucotti Park was occupied, the occupation of the western world was already underway, by financiers who believe they know better how we should live our lives. They’re wrong, and they have to go.

  17. It is interesting that when T/square happened in China America raised a hull-a-ballo about and derided the Chinese rulers. When it happens here as in OWS, not a peep. I guess our human rights, and freedom to protest don’t matter. Our goose is cooked!!!!. Boy,
    are we hosed!!!!

  18. For those attorneys who really, really want to help turn around the economy by defending homeowners against banks. You’ll need about $5500 and camp starts on Friday, 12/9 until Monday evening.

    https://www.maxbankruptcybootcamp.com/order/live-bootcamp-sp.php

    Now that’s real help!!! Right Stephanie?

  19. AAAAAAHHH! Chia pets…

    Never saw anyone buy them. Been in this country almost 35 years, heard about them every single year this time of the year. Laughed about the utter uselessness of the thing every time too. It’s like the Enquirer. Never saw anyone buy it either… They keep selling them, though.

    There must be some underground market for that crap. Where people knock on hidden doors in the middle of the night and have to spit some password to get in…

  20. Incredibly depressing, but don’t let the bastards grind you down. Take our houses, jobs and dignity, let us know what else we can do for you.
    🙂

  21. Yes, I saw that about the UN and civil rights. Civil rights these days are something awarded to those people fortunate enough to be installed in government posts, or their masters. If you’ve noticed the eerie similarities between the present day U.S. and the former USSR and want to know exactly what it felt like when it collapsed, which BTW is what’s going on in the U.S., scratch that, in the world as we speak, read Dmitry Orlov’s work. He’s written some really detailed and eye opening stuff, and it all relates.

    Post-Soviet Lessons for a Post-American Century, By Dmitry Orlov

    https://docs.google.com/Doc?id=dtxqwqr_20dc52sm&pli=1

    Maybe we should go ahead and address our congress critters as comrades, just to get the point across. He’s dual, both an American and a Soviet, and experienced the collapse first hand and has some great writings on the subject. Buy some heirloom seeds and stoke the fire, it’s going to be quite the dark ages just ahead.

    As to the austerity measures being touted as the new norm by the elite, Yves Smith has had several cogent writings recently, one by Michael Hudson, the astute economics professor at UMKC (fellow prof to L. Randall Wray and Bill Black btw…. I’ll have whatever they’re drinking!), who states without hesitance that the elite know exactly how far into depression they can push us in order to max out the pain and keep us in line. When the reality is, austerity actually prolongs and deepens the problems due to lessened taxes and reduced commerce, affecting all but the 1%. They apparently just do it because they can. Kind of like foreclosures. And the Beiber. And Kardashian. And Chia pets this time of year…

  22. I agree with E.Tolle ,if theres a new island out there somewhere please let me buy a ticket to it.What are we going to do if we do become a third world nation?Changes like you would not believe are going to happen and none of them good.Our way of life is going down the tubes and fast.Austerity;look up the definition.People are already in the streets and more joining the new norm daily.People are homeless and starving and yet it is still going to be worse.If we don’t do something soon all will be lost!

  23. @E.Toile,

    You need to stay. I believe we need you here…

    Hey, did you see that the UN sent a staunch message to the US about Civil Rights violations in the way OWS has been treated?

    Isn’t that what happens in 3rd world countries? Isn’t that what did Ghadafi and Mubarak in? Repeated civil rights violations, to the point of a …REVOLUTION?

    We’ll get there.

  24. I continue to hold out hope that one day soon, a new continent will be discovered far out in the Pacific Ocean and I’ll be able to buy a ticket on a steamer to start over in the new world with a handful of seeds, an axe, and the same determination that made this once great nation such a cool place to live.

    Of course I might have to commit unthinkable atrocities towards what ever indigenous peoples currently reside there, but hey, that’s progress. It’s their own fault for not devising ICBMs and other WMDs, instead of peace pipes. Foolish heathens.

  25. That kind of article, on the other, I can use for when I’m deposed or I testify or something. Real facts I can throw at the jury: man, were we ever set up!

    I’d like to view our representatives finances since 1999. I bet in the past 12 years, their situation improved considerably. At the expense of our retirement, 401K, 403 and whatever other plan.

    Confiscate, confiscate, confiscate!!!
    Redistribute, redistribute, redistribute!

    We’ll get there.

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