Schoenberger's blog

11/8 WAS AMERICA’S "DAY OF INFAMY"

FOR RUSSIA, “a foreign unfriendly power,” TO HAVE HACKED EMAIL SEVERS WITHIN OUR BORDERS TO USE AS PROPAGANDA TO GET PUTIN’S CHOICE FOR PRESIDENT ELECTED -- CONSTIUTES A CYBER INVASION OF THE UNITED STATES OF AMERICA.    THE FRAMERS COULD NEVER HAVE ANTICIPATED THIS KIND OF INVASION WHEN LEACHING WAS STILL A FAVORED MEDICAL TREATMENT.  THIS IS WITHOUT PRECEDENT! 

The hacking of a political party’s emails/server and the CIA/server by a foreign nation constitutes an invasion of America, which must be considered a grave foreign intelligence threat to our national security.  https://www.nytimes.com/2017/03/07/world/europe/wikileaks-cia-hacking.html

Three, courageous patriotic women from Gloucester stepped up to the plate to write a pro se writ to appeal to the Supreme Court to protect America from an election gone terribly awry.   the checks built into our Constitution by the Framers, either are no longer viable with one party in total control, or in the case of the Electoral College, have failed,  The Framers intended that the Electors would act to  prevent a dangerous and incompetent person from being selected president.   The framers further intended that, if all else failed, the Supreme Court would serve as the last bastion to protect our Republic.

These Gloucester women then found an attorney in Indianapolis, Mark Small, who added a  motion that asks the Court to appoint a Special Master,  who would serve as the Court’s investigator, with all the powers of the Court, to investigate any evidence to determine whether our Democracy has been hijacked by Putin, Trump, or any collaborators.  Can Congress agree to appoint an independent special prosecutor?  

This is not Starboard vs Port.  We are all in this American boat together.     This appeal is about how the group at the helm now, was set up by Putin’s cyber invasion.  And if the investigation determines that what seems evidentiary is, then the Court will consider arguments for Nullification leading to a revote.  A revote will affirm our Democracy’s most sacred value, a free and fair election.

Americans must get seriously outraged.   The core of our Republic’s Democracy – free and untampered with fair elections - was the brunt of a cyber invasion to corrupt to subvert the anticipated outcome of 11/8.       There is ample evidence the Russian Cyber-attack was aided and comforted by Trump, his top aides - even Comey and FBI “rogues.”  Trump asked for Putin’s help publically, to paraphrase, “hack away.”  https://www.washingtonpost.com/…/12f36250-c3be-11e6-8422-eac61c0ef…

Americans deserve to know the truth.  AMERICAN CITIZENS have the right and need to know the full extent of an American President’s financial ties to an unfriendly foreign nation.  A right to understand the connections from Putin to Trump – the motivation behind the Russian cyber invasion to put Trump in office: so Putin could pull strings on his President?   https://www.nytimes.com/2017/02/14/us/politics/russia-intelligence-communications-trump.html?_r=0

THE AUTHORITARIAN PUTSCH BY TRUMP and PUTIN TO DESTABLIZE OUR DEMOCRACY MUST BE STOPPED. 

The Supreme Court is our best hope to stop the authoritarian path toward Fascism the hijackers, Trump and Putin, have stuck Americans on.   This is our Republic’s MOMENT OF TRUTH -  for all Americans to unite and make it known to the Supreme Court that we can only trust the  eight Justices to independently investigate as the last check standing set up by the Framers.  If the investigation confirms what seems empirically evidentiary from so many Intel leaks from patriotic members of the CIA, the FBI, NSA and all the others – then we must have a revote to affirm America’s free elections are the essence of a successful Democracy for the people.    Learn more:  http://www.the5thestate.net/2017/03/07/why-nullify-why-go-to-the-supreme-court-putins-cyber-invasion/

 

 

 

 

 

 

 

 

America's getting screwed by GOP prejudice!

Reprinted from 5/4/13 at: www.the5thestate.net

So Pat Toomey, tattled on his fellow Senate Republicans by blowing his hollow whistle on why they did not vote for background checks – they did not want to vote for Obama. But then went on to point out that - Obama is divisive. To vote against background checks was a vote against 85% of all Americans, because Americans want background checks.

www.huffingtonpost.com/news/background-checks-poll‎...Cached
Eighty-six percent of Americans support strengthening background checks for guns in some way, according to an ORC/CNN poll released Wednesday. Requ…

www.politifact.com/.../gabby-giffords-says-americans-overwhelmingly-s...‎Cached
Apr 18, 2013 – Polls show that Americans "overwhelmingly" support "expanding background checks." Gabrielle Giffords on Wednesday, April 17th, 2013 in an ...

www.reuters.com/article/.../us-usa-guns-poll-idUSBRE9160LW2013020...‎Cached
Feb 7, 2013 – (Reuters) - More than 90 percent of U.S. voters supported background checks for all gun buyers, while much smaller majorities were for stricter…

Maybe voting against the best interests of most Americans will come back to haunt the GOP racists:

Two More Senators Poisoned By 'No' Vote On Background Checks

www.mediaite.com/.../poll-two-more-senators-poisoned-by-no-vote-on-bac...22 hours ago – As evidence continues to mount that the U.S. Senate's sabotage of the Toomey/Manchin background check bill could come back to haunt to haunt those…

Obama is as divisive as an Orthodox Jew living next door to Hitler who continues to endeavor to befriend the Fuhrer.

So what’s up with another vote against Obama; Toomey’s big news and the big story of the week? Correct me if I am wrong but, is this not the same group, led by the Teaparty, that announced from the first day of Our President’s 1st term in office that they intended to do everything possible to ruin his 1st term by voting against anything he proposed. The GOP new philosophy was stop Obama from being elected to a 2nd term.

All of Obama’s – the President of the United States of America’s - proposals for we the people have been met with negative votes from the GOP, which has become the Party of Prejudice; which is a long way from the party of Lincoln.

American Citizens are paying Teapublicans to get screwed because the GOP-Teaparty will not vote for the best interests of the vast majority of Americans, if for no other reason than they are against a black man (biracial man) sleeping in the White House of their Christian Nation.

Don’t forget the blockade of Congress, termed Congressional Gridlock, is brought to you by the Teapublican Christian American Nation as proclaimed by the rigid zealot pre-Dark Age creationist thinkers who prefer to filibuster rather than vote for the public good. And Teapublicans claim to be Christians who believe in the teachings of Jesus?

So Congress is in gridlock? That’s the way our nonpartisan about truth media describes the continuing Teapublican votes against whatever Obama proposes funding or fixing– like: Head Start for children; school breakfast and lunch programs for impoverished American children living with gnawing hunger every day; food stamps for the poor; medical research; jobs bills to address massive aging infrastructure danger; increasing the minimum wage; eliminating tax laws gone awry which have been responsible for a sea shift in wealth to the wealthiest; increased funding for public education; Obama care for the 47M Americans without any health insurance – it’s a long list. And Toomey explained that Republicans would not vote for background checks because that’s what Obama wanted. Big f—king news! Hurray for Toomey, what a grand gesture, truth telling; but check out how often he has voted in Teapublican lockstep against Obama.

One more time; Toomey, in a rare moment of candor, a staunch member of the Blockaders of the Public Good revealed that his cohort Tea publicans have steadfastly voted against Obama. Wow, how I admire his admission of GOP collective guilt, because the GOP has screwed the best interests of we the people since the day Obama took office - which has not abated now that he is in his 2nd term.

This empirical evidence of racism is self-evident.

How is it not treason to perversely and persistently subvert the public good of the citizens of the United States from within by blockading Congress – because the President is divisive? Put these anti Americans under oath, and then indict them for lying to the American people and the Press. Ask them if the Sequester is beginning to hurt and why they can’t make some common sense? Then try them for all the lies and fabricated, cover up excuses.

When the public good is under attack the ability of the United States to function effectively is under attack. When the best interests of a huge majority of all Americans is not at the forefront of Congressional concerns you have a divided nation which is clearly not the way to run a country.

When a country is in gridlock due to the infiltration of the religious wrong, who rely on prejudice, ignorance and creationist pre-Dark Age ideas and ideals you have a screwed up Nation. Clearly that is what a Christian Nation means, so now it imperative to return to the wisdom and foresight of our founding fathers who knew from personal experience that it was critical to the survival and future of their foundling country to separate the church from the state.

The President is divisive, because race divides those who are prejudiced from their fellow human beings. The Teapublican, Red State prejudice adversely impacts on all Americans, just as prejudice has always ruined any society that allows it to exist.

This time 85% of all Americans agree on background checks; so maybe, even Republican voters will get this message and get rid of the Teapublicans who don’t have a clue about what it means to represent 99% of American people – we the people who pay them to shaft us.

From: www.the5thestate.net.

Sudden Epiphany: Teapublicans think in tongue

Katie Keiffer, Palin sounding blond Teapublican air head, did not understand a Palin tweet, she explained to the stunned, by her naïve overt ignorance and almost speechless, Martin Bashir at about 4:15 pm Friday on MSNBC. Bashir's other guest could hardly conceal his knowing collegial smirk.

Wow, her wisdom and insight took my breath away as well as Bashir’s. All I know for sure is that she is speaking at CPAC, between the president of the NRA and some other great American intellectual.

To not understand Palin’s tweet of 140 characters is not unusual, I can’t understand anything out of her mouth, and I suspect why. It does not emanate from her head but from her butt. Crude but objective, which means that when Palin speaks she should wipe her mouth with 2 ply to not spread her disease which is best characterized as mental rigor mortis. What do you think?

Katie, says she has had 6 years of experience in commercial real estate on her home page:
Conservative Thought in Minnesota and Around the ... - Katie Kieffer
katiekieffer.com/about/

She has been invited to speak at CPAC, as an up and coming social conservative intellectual who graduated Suma Cum Laude from St. Thomas University in Minnesota. If she told the truth as so many social conservatives do not. She did not say exactly what year she graduated, as so many do, but did claim to have “6 years of commercial real estate experience.“ almost exactly when everything tanked. Something I know from 45 years of experience having raised $100M for real estate private placements, and having written 1 book about why real estate tanked in the mid 80s, and what really happened in 2008 in my new book last year why – and it's not over.

Katie has a recommended stunning reading list which is truly impressive and makes it easy to figure out where she got her sense of economic theories:

Economics in One Lesson - Foundation for Economic Education
fee.org/media/economics-in-one-lesson-abridged-audiobook/
Nov 16, 2012 – Economics in One Lesson by Henry Hazlitt. This primer on economic principles brilliantly analyzes the seen and unseen consequences of ...

This is great stuff about the free market and how regulation is dumb. Certainly something that would make Paul Krugman puke. (LOL at his ignorance?)

Katie is a devotee of Ayn Rand like Paul Ryan, another true intellectual, and loves Ron Paul’s nut job book – “End the Fed” – how unnecessary it is to have a central bank in a global economy. All we need is the “self-correcting totally unfettered free market.” (of course this caused the Great Depression and the deregulation from 2000 caused this one) but Katie has absorbed, uncritically, Hazlitt’s brilliant book from 1946 – 7 years before Congress figured out that the 1956 Bank Holding Co. Act was essential to control the size of banks. Is it fair to judge people by what they read, or don’t?

And she recommends the Treatise on Law by St. Thomas Aquinas, the namesake of her alma mater. St. Thomas is the idiot Saint, who confined Galileo to house arrest for the last 10 years of his life for being the heretic who discovered the Earth revolved around the Sun; which made it forever after difficult, or confusing, to think about god and his favorite son, Jesus, loafing in the sky. Who knows how many Jewish husbands were told god did it? It is my contention that only a Jewish husband would have believed that story

With great thinkers like Katie (I love her Fox hair color) as well as all the rest – I can’t wait to hear how strange Teapublican reality can get. Personally, I look forward to some major epiphanies, don’t you?

But take my sincere advice, and to be perfectly honest - be on your favorite working porta-potty when you listen to her CPAC speach, and all the other great Teapublican Intellectuals who have built a Treasonous Blockade around Congress -better bring some back up rolls.

Quarantine GOP Saboteurs Till They Get Default & Guns Are Worse Than Dumb: It's Treason!

So House Republicans, from all reports, seem to be intent on letting their country go into default while keeping assault weapons is their chief concern. If for no other reason than their creationist driven ignorance of the need for government; which to Tea Party patriots means government supported by the neighbors they hate; along with liberals, progressives, objective members of the press and anyone who needs health insurance that can’t get it, and everyone that does not think as little as they do. The Red States receive more in transfer payments than Blue States, so they only rely on government, but don’t need it or want it?


House and Senate Republicans do accept hefty government paid benefits of all sorts, including an income for obstructing the public good and for supporting assault weapons. Is this peculiar form of insanity not something that should be quarantined? What kind of insanity is it to take a “look see” at what would happen if the United States of America was forced into default by Americans? How is this not a form of Treason! Certainly causing a default would be against the internal security of “the homeland.”


What if GOP thought spread to the 51% of us who are not yet infected. It could be possible then, to absolutely ruin a country that has survived since 1776 that has exhibited more concern for the public good than any country in history in a relatively short time. Think about the potential to vote against women’s suffrage, or outlaw condoms, get rid of Social Security, Medicare and Medicaid; even better - have automatic weapons in every pot, instead of the chickens FDR wanted for Americans devastated by the Great Depression – and then introduce a bill to outlaw the teaching of science and require that all Americans become creationists. What a perfect world without the East Coast Intellectuals, and the West Coast ones, or the ones now in Ohio.


Democrats have enabled this insanity as well. They could have filibustered the lack of renewing the assault weapon ban, by filibustering Bush tax cuts in exchange for the assault ban. Democrats could use the filibuster like the GOP, and block all the dumb stuff the GOP wants. Then we could have real gridlock, in lieu of virtual. And they could start impeachments against some of the great Republican Saboteurs like: Cantor, Boehner and one of my personal favorites, Darrell Issa from Cleveland Heights, where he is still regarded as a car thief and con man by former high school classmates, I live next door in Shaker Heights, and have been informed of this by some former classmates I know. Like Issa, Democrats could start Congressional investigations about everything (nothing) and lie about the import of the need to investigate mistakes or terrorist “cluster f—ks.” Guys like Issa need guns to protect themselves from those of us who care about each other – or from their friends who are armed to the teeth?


The airwaves, the Ethernet, the tube and newspapers and news magazines still in print are ablaze with gun debates. How is it possible to debate the self-evident truth that assault weapons, which are military weapons designed to kill as many people as possible efficiently in a short burst of time do not belong in the hands of the public? Next Wayne the Great will extol the virtues of napalm, hand grenades, hand held missile launchers, and especially nerve gas to protect yourself from an aberrant government just in case King George is reincarnated. The brain dead genius calling for the celebration of Gun Day, told Rev Al that “citizens have a right to own any weapons our military has to be able to protect and defend themselves.” So paranoia is the rule, and the fact checkers are out like zombies on the prowl.
Political capital is a big question. Can a member of the House or the Senate vote for a sensible ban or bill “for the people” without spending “political capital?” Can a member of the GOP survive without the NRA or the Tea Party? America did OK before these lobbyists petitioned all their lackeys to only do their bidding, notwithstanding their income, pension and health benefits is paid for by “we the people.”


Chuck Todd is brilliant in dissecting all the political considerations and consequences of Congressional voting – but like so many in the 4th Estate, does not spend as much as 1% of the time on how wrong it is to not ban military weapons. Both sides are interviewed, because it is more important to be non-partisan about the truth than take a stand for truth and aggravate the liars or the ones who care nothing about the public good – only about their own good and who butters their election bread.


So the pastime is to parse the be Jesus out of banning guns, and are their votes for gun control, and interview people who sympathize with what a tough vote it would be for someone in a rural district to vote for gun control. And at the same time accept the treason of the GOP who would jeopardize America’s internal security in so many ways by forcing the country into default.


Does a ban on military weapons or a vote to fund a budget to pay for stuff already committed to pay for have a chance to pass? Would a vote to ban this kind of ingrained ignorance have a chance in Congress? The real question is does anything that makes sense have a chance with the current group of GOP treasonous saboteurs – obstructing and subverting the public good of their country into the ground of discontent. When people get off a plane or boat with a critically dangerous disease they are quarantined. And treasonous saboteurs are jailed. Assuming treason is not on the table yet – why not institutionalize the GOP until they get a better grip on reality and humanity?

Institutionalize them on their own dime.


Originally appeared at: www.the5thestate.net


 

Smell Treason? Saboteurs Block Public Good

Treason in Congress is to obstruct and subvert the public good which puts the future of America at risk.  Allegiance to Grover continues, but so does the fear and hate for government, while the haters take more from the Federal Budget than progressives.  All of our attention is to be vigilant for threats against the security of the U.S. from without, when the real threat is from within.

Classic treason has been characterized by spies aiding and abetting our enemy.  This is what our founding fathers feared as revolutionaries who were afraid of Tory spies that wanted to obstruct and prevent the revolution against King George.  The American Revolution was to extricate the colonies from being oppressed, but because the Tories wanted to remain English citizens there were acts of treason which jeopardized the future of the new nation.  The Constitution takes into account the experiences of our founding fathers derived from Tories and problems with foreign enemies; as well as Man’s history of wars to take over land ad nauseum.  Therefore, the traditional view of treason is what has controlled how treason has been regarded from the earliest days of conquerors and religious leaders like Popes, and all who sought power and glory at the expense of the people who supported them.  Treason is betrayal.

However, with the advent of the “New Republicans,” the substance of what may jeopardize America’s security should be redefined to accommodate the contemporary realities of: the so-called, Fiscal Cliff; assault weapons; corporate personhood; overturning The Affordable Care Act; deregulated, unfettered sociopathic greed; pledging allegiance to Grover Norquist; attacking Social Security, Medicare, and Medicaid; and essentially adopting a campaign of disdain and lies in a campaign to defeat a sitting president – respect for the flag and the oval office is essential to maintaining a Democratic Republic.  Political overt and intentional lies are not protected under the 1st Amendment. Lying to win a presidential election is a form of betrayal, because it is against the best interests of the citizens.  We know lying is wrong, but it does not count unless you are sworn in as a witness to Congress, and then a lie becomes perjury, which is illegal.  But if one is not sworn in then it is merely - to disregard the facts.

The attacks against the fabric of our culture, which must include the middle class, are too numerous to discuss here. Our public discourse has not focused on the real threat to our future which is why I wrote a book about all the significant issues and culprits which combined to create the 2nd worst economy since 1776 and this vast chasm of financial inequality.  So I refer you to How We Got Swindled By Wall Street Godfathers, Greed & Financial Darwinism ~ The 30-Year War Against the American Dream  if you want to be objectively informed about the root cause of how and why these elements morphed into the new order of America. Trust me our security is under attack when a majority of our country’s citizens welfare is not taken into account by so large a group of politicians.

The enemy of our security has become the Americans who have massed their prejudice and self- interest to make war against the public good by obstructing the ability of the United States Government to function in order to protect the public good.

E pluribus unum Latin for “Out of many, one…

Out of many is how we became one, and today the many no longer count.

It is infinitely irrational and wrong to hold the common good of the American people and the Federal Government hostage to the Saboteurs’ ethic of – no new taxes.  The hostage is the worn out body of the public good.  And this act of treasonous sabotage epitomizes…the 30-year war against the American Dream!  Refusing to raise taxes on incomes of $400,000, on the wealthiest Americans, is empirical, prima facie evidence of the existence of born-again Social Darwinism metastasized into Financial Darwinism.  Financial Darwinism means – survival of the richest; and these are the ones who pay for an army of mercenary lobbyists to fight 24-7 against any increase in tax or any regulation that could put sociopathic greed into a cage.
The continuing war against Obama and the middle class is not just evidenced by the insane and un American pledge of allegiance to Norquist of no new taxes, but also by the refusal to finally recognize the systemic danger of weapons of war in the hands of crazy people who have a paranoid fear of the U.S. government, so they hoard military weapons for personal protection against the government of the United States of America.  And this week, the week before Christmas, in the spirit of the season, the leader of the NRA has given us a Christmas message which is exactly what Jesus would want: Put armed guards in every school, NRA leader Wayne LaPierre says

This is the paranoid gunnies answer to protect kids from assault weapons; what else but more guns.  Brilliant, the way to stop mass murders of children in elementary school is to arm the teachers and declare elementary schools as military zones.  So the game Red Rover could be Run For Cover while their teacher guns down invaders. How nuts is this?  Next Republicans will hire Clint Eastwood to guard the schools and tell all who would dare to enter – “make my day.”

48,000 were gunned down, shot dead, killed, inside the U.S. during the past 4 years. It is likely this carnage will be repeated.  Assault weapons make it easy to achieve such high causalities.  So considering all the deaths and the wounded who remain crippled and maimed, why all the debate?

Perhaps our President will just invoke executive privilege and run the country for the people.  He could start by creating a large mausoleum for all the gunnies, at the same time put all the unindicted Wall Street Bankers in there, add the Tea Party as a warning to the rest of Congress that does not protect the public good or rationally care about the common good – and finish by cramming in all the tax laws that confer special privileges on the already privileged.

There is no reason this needs to be so complicated, but obstruction takes many forms and cannot be dealt with unless there is a resolve to stop talking to obstructionists who jeopardize/sabotage the security of the future of America and indict them for treason.

The security of our country is on the line.  Saboteurs are trying to kill the middle class, and starve the Government for funds, and curtail entitlements (social nets to protect society from what happens when people fell abused and left out – the French Revolution, the Soviet Revolution and all the others that did not result in democracies.

When a Republic becomes less than Democratic all bets are off on the future.

Treasonous Sabotage: The Fiscal Cliff - To Hold Entitlements Hostage

Treason is a violation of allegiance towards one’s sovereign or country.  Sabotage is any underhanded activity to obstruct normal functioning; an underhanded effort to defeat or do harm to an endeavor.  (Refer to the American Heritage Dictionary.)

So it is logical to conclude, in my less than humble opinion, that the public good of the United States of America and the ability of its government to properly function has been and is being obstructed, in an underhanded way, by a large band of Saboteurs who call themselves Tea Party Republicans, who pledged allegiance (along with the rest of the Republicans) to their leader - Saboteur Norquist. And this underhanded activity has not only created a phony cliff, but worse, the 2nd worst economy since 1776 and financial inequality of historic proportions which has resulted in  tragedy for so many of their fellow Americans.

Thomas Jefferson said the role of government is to protect the public. But for too many years, a radicalized group of Republicans, funded and motivated by sociopathically greedy narcissists, like the koch Bros, has done everything possible to obstruct anything for the public good.

And most of the media has neglected to focus on objectively reporting the truth, because it has been giving both sides equal time which has confused the public and provided a non-partisan platform to parse the partisan nature of Washington Politics. When an objective and accurate analysis of the truth clearly reveals the treasonous substance of what has been termed – partisan politics.  It is self-evident that both sides are not equally responsible for obstructionism. It is crystal clear that one side is clearly for protecting the public, and the partisan blockade is the radicalized Republican Party, voting in lockstep against the public good, and refusing to raise taxes on the top 2%.  Therefore, it is obvious the Republican Party is only concerned about protecting the rich, and has little concern for the other 98%, especially the Americans who desperately need help.

Yesterday, MoveOn.Org sponsored Move On Fiscal Showdown in cities around America.  The purpose was to:  “let our representatives in Congress know we [those of us who understand the need for government to protect the public good] won’t tolerate any cuts to Medicare, Medicaid and Social Security.”  And this mythological Fiscal cliff has been created by the Saboteurs who would let America go into default to honor their pledge to their leader to never increase taxes, even for individuals who make more the $500,000 or $1,000,000 plus annually. However, now they might agree to go up from 35% to 37% if “entitlements” (things we pay for like Medicare and Social Security) are cut to reduce the debt.

So it is apparent that the Saboteurs have held America hostage by obstructing Congress to create a Fiscal Cliff.  And the cliff is all about not raising taxes with a disregard for what their obstructionism has done or will do.  Certainly there is no real discussion about cutting totally superfluous military bases in Europe, Japan and Korea established more than ½ a century ago in the shadows of WWII and the Korean “police action,” when only the U.S. had the wherewithal to protect these geographical areas.

Where is the concern for protecting the lives of American citizens, and properly spending government funds (when the private sector is hoarding profits offshore) to grow our economy in lieu of maintaining an over sized military industrial complex?  What about stopping all the wasteful spending primarily concerned with the financial welfare of the military industrial complex at the expense of our growing deficit and continuing financial tragedy for so many.

I agreed to host one of the Cleveland events; however it made more sense to join another group, only blocks away, supported by the Cleveland offices of the AFL-CIO.  People who had been ravaged by this depression and the lack of health insurance got up in public to speak, in a small park across from the Federal Building; to tell tragic stories, stories about being disenfranchised from being able to participate in the middle class – stories about how The 30-Year War Against the American Dream (refer to, How We Got Swindled by Wall Street Godfathers, Greed & Financial Darwinism ~ The 30-Year War Against the American Dream) had displaced them from lives they had worked hard to achieve.  And Right to Work Laws are spreading, like the Social Darwinism of men like Andrew Carnegie, who called in the National Guard, in 1892, to quash a strike by workers at his steel plant in Pittsburgh, workers who wanted to form a union because they needed a higher wage level to subsist on as well as better working conditions to live longer.

One Cleveland TV station covered the Fiscal Showdown, and ran a few of the very personal stories on the evening news.  But there were no throngs of outraged people, and no one from the Federal Building ventured outside in the lousy weather to hear or witness their outcry of anguish for help and consideration.  And around our country yesterday there were similar stories from a multitude of Americans who have been abused by the obstructionists – stories about how they have flirted with death or had friends who died because of the inability get or afford health care, stories of financial inequality and despair in the shadows of a society that some believe has 47% of their fellow Americans hoping for stuff.

It is vital to realize the Saboteurs have government paid health insurance, while they relentlessly fight to never increase taxes on the wealthiest Americans, (still talk about getting rid of Obama care),  and simultaneously fight to cut Medicare, Medicaid and Social Security.

So-called entitlements are held hostage just in case the zealots have a change of heart – which is their new strategy to maybe agree to a 1% tax increase if they can cut “entitlements.” Especially, Medicare, because the Saboteurs hate anyone having health insurance from the government except for their fellow Saboteurs.

From 4 decades of experience arranging group health insurance and negotiating renewal bids, I know (along with numerous others who have been similarly engaged in the group health business) how to fix Medicare.  Why has no one said anything?  Because the fix is certainly not to raise the age of entry, which is worse than dumb.   To raise the eligibility age would only make it more costly to provide coverage for older insureds; everyone experiences more health problems as bodies wear out over time. This is merely common sense.

How to simply fix Medicare: GROUP HEALTH INSURANCE 101:

  • LOWER ENTRY AGE TO 55
  • ADD YOUNGER, HEALTHIER INSUREDS TO GROUP (POOL)
  • LOWERS AVERAGE POOL AGE
  • IMPROVES POOLED CLAIMS EXPERIENCE: SPREADS RISK
  • LOWERS ADMINISTRATION COSTS, FEWER CLAIMS PER CAPITA
  • LESS ADVERSE SELECTION (TO INSURE HIGHER RISKS)
  • RETAIN SAME PREMIUM LEVEL FOR OLDER GROUP, ADJUST FOR 55 TO 65 IN ACCORDANCE WITH AFFORDABLE CARE ACT
  • NO CHANGE IN BENEFITS
  • IMPROVED BOTTOM LINE – FOR GOVERNMENT
  • IMPROVED LONG-TERM FINANCIAL STABILITY = FIXED!

Private health carriers are against making Medicare solvent  along with their mercenary armies of lobbyists.  Congress, assisted by the media and the American people who vote for Saboteurs, has enabled Saboteurs to obstruct something as realistic as Group Health 101; which simply would establish long-term stability for Medicare.  Therefore, it is self-evident the Saboteurs have no interest in the protecting the Public Good.

Is it possible to indict the Saboteurs for treason, I wonder…?

Originally appeared at: www.the5thestate.net

Financial Russian Roulette: Lethal Fantasy Investing

Derivative markets are a great arena of financial masturbation relying on algorithms and sociopathic greed to have created upwards of $1.2 Quadrillion Derivatives to bet on.

Synthetic portfolios of unmitigated and deregulated risk allow mathematicians to contrive a virtual world of vectors to play with.  Players stand on the sidelines throwing real money into a black hole to bet on the success or failure of Swaps going in one direction or another; or going in opposite directions from each other, either simultaneously or not. 

Market makers have created Financial Russian Roulette Tables they call markets; while regulators stand silently by watching their friends and formers colleagues make mega millions from trading fantasy investments that are too complex to explain.  It is difficult to explain something that is not real, like a Zombie or like a god.

And this entire game is based on faith, faith in what PT Barnum observed so many years ago – “a sucker is born every minute.”

PT Barnum - There is no proof that Phineas Taylor Barnum ever said, "there's a sucker born every minute." He did, however, say that "every crowd has a silver lining," and ...

And there is no proof that Derivative Swaps have a shard of real existence except in the minds of the mathematicians that created them, and in the faith of the players.  There is no proof that Zombies or god exist either, yet that doesn’t stop movie makers or religion makers or hoards of fearful participants. 

Some of the great religion makers at least were trying to control man’s baser instincts by attempting to introduce a way to value individual life at a time when people were commanded to go to war at the burp of a king, and build pyramids or wall off a continent-sized country.

Religion is based on faith, and so are derivative markets - just a different kind.  Derivative markets are based on the faith (or is it the assumption) that players will come to bet based on the hope (or it is assumption) that betting on derivatives will be profitable if they are better than a majority of the other players.  Just like your odds are better if the people you play poker with are not as good as you are.  However, there is one distinction – the market makers are the house, like a casino is the house if you choose to play poker in the controlled environment of a casino.

Unlike a casino with recognized odds and regulated by gaming commissions - market control is a charade. Because market makers and sophisticated investor-gamblers assume risk can be mathematically measured and mitigated by hedging with swaps - which only creates more risk. Market makers only sincere concern is to maintain the velocity of the trades and the unfettered ability to keep the markets (the tables) open at all times. Being open offers the brilliantly “sophisticated” investor–gamblers a comfort level derived from the illusion-promise of being able to sell at any time.  Being able to sell or get out is called liquidity and is misperceived as control by investors because investors can decide to exit.  Liquidity is a back door to saving your ass.  But liquidity depends entirely on buyers to want to buy the hot potatoes at a time when too many want to get out.  (Refer to Lehman Brothers for a spectacular example of what can happen in a much smaller market than $1.2 Quadrillion of derivative/swap risk.)

The people behind the great arena of financial masturbation are god like, and above the law just like mafia godfathers; and like the kings of yore have amassed personal riches beyond the dreams of ordinary kings.  But they are similar in the sense they do this at great risk to their kingdom; which today means – the economy of the country they live in as well as the entire globe.

Derivatives are the most sophisticated game, so have attracted a following of brilliant mathematicians and finance majors only concerned for good paying jobs.  And our colleges and universities have obliged this human need to find a good job by providing courses on Derivatives motivated by matriculation fees.  But have finance professors and their employers considered that Derivatives, under the surface of all things real, are nothing but a ticking financial H-Bomb sized black hole of risk?

The Monte Carlo Method for Pricing Financial Derivatives (downloadable PPT)
Applying the Monte Carlo method to financial derivatives, continued ... Most Monte Carlo Methods are implemented via a computer program rather than solved ...

Doctorate Degree Programs - Complete List - Global Derivatives
Doctorate Degree Programs With a Focus on Quantitative Finance / Derivatives. Profiles: The profiles are all of our own work and are compiled with information ...

Curriculum - UCLA Anderson School of Management
Degrees › Master of Financial Engineering
Limited to Master of Financial Engineering Program students. ... paradigms used in derivatives finance including an introduction to stochastic processes, ...

Capital Markets, Derivatives and Treasury Training - Dcgtraining.com
Derivatives trader, Global bank ... of tailored training services to the banking, financial ... Financial Core Competency and Specialist Skills Programme ...

Robert McDonald - Faculty - Kellogg School of Management
He has taught courses in derivatives, corporate finance, and taxation. Professor McDonald's research interests include corporate finance, taxation, derivatives, ...

Has anyone focused on the Fed Bank Holding Company regulation that makes investments which cannot be explained well enough to be understood unlawful?  

IM-2210-1. Communications with the Public About Collateralized Mortgage Obligations (CMOs) – (a) General Considerations,... (3) Safety Claims - A communication should not overstate the relative safety ... (5) Simplicity Claims - CMOs are complex securities and require full, fair and clear disclosure in order to be understood by the investor. (refer to Chapter 8 in: How We Got Swindled by Wall Street Godfathers, Greed & Financial Darwinism ~ The 30-Year War Against the American Dream.

It is self-evident that Market makers are concerned with fees no matter what the consequences; as it apparent that matriculation fees are also more important than consequences.

So what do we do?

Sociopathic greed is a chronic condition/disease found among some members of the human race.  It has been possible to eradicate some terrible diseases through scientific discoveries leading to totally efficacious vaccines, like Polio and Small Pox.   Public health has also contributed to a healthier society by eliminating open sewers; and the great invention by Uranus Crapper made the toilet more accessible to those who could only afford to rent a toilet for a moment of need.

In the aftermath of the Great Depression, brought about by unfettered, rapacious sociopathic greed,  it was discovered in 1933 that the best way to control the chronic disease of sociopathic greed was to quarantine it -  just like tuberculosis was confined to sanatoriums in 1933 (maybe that’s what should be done with Santorum).   So Congress in a quarantine spirit, and gasping for daylight with millions in bread lines, passed Glass-Steagall in recognition of the fact of the lethal impact of unrepentant narcissistic, even self destructive, greed.  The sociopath’s appetite for green may be akin to horses eating themselves to death by gorging on too much green.  But by 1956 it was recognized there was more to be done so the quarantine was improved with the advent of the 1956 Bank Holding Company Act.

Quarantining unbridled greed worked for decades until the sociopaths got their way and got Congress to deregulate greed and remove their quarantine.  Deregulation of Wall Street Banks released the ravages of their ugly disease once again.  So now we have a plethora of gamblers playing Financial Russian Roulette - and so far this has not been properly recognized or addressed – even in the aftermath of the 2nd worst economy since 1776.

Your worst nightmare: the coming financial plague

Four years after a financial crisis nearly ruined the U.S. economy, “experts”  acknowledge there are $600 Trillion to “$1.2 Quadrillion” Derivatives still in the market.

These  Derivatives are a ticking hydrogen bomb of unimaginable financial risk.  And while the Fed worries about financial instability in Europe – Congress should ban derivatives here!

Derivatives : The $600 Trillion Time Bomb That's Set to Explode (October 12, 2011)

This has been in part caused by the markets play on derivatives, mortgage backed securities and many more shady dealings. Now what we …

Big Risk: $1.2 Quadrillion Derivatives Market Dwarfs World GDP (June 9, 2010)

But traders rule the roost — and as much as risk managers and … Yet according to one of the world’s leading derivatives experts, Paul Wilmott, …

Top Derivatives Expert Estimates Size of the Global Derivatives Market at $1,200 Trillion Dollars … 20 Times Larger than the Global Economy (May 18, 2012)

The numbers are Credit Default Swaps, not the whole derivative market. Endo. Definitely a much higher number than $1.2 Quadrillion…

What if just $700 trillion of “structured investments,” got out of control, there would be far more worldwide tragedy than what we fear from Al-Qaida.

Structured investments are defined under SEC Rule 434 as: “Securities whose cash flow characteristics depend upon one or more indices or that have embedded forwards or options or securities where an investor’s investment return and the issuer’s payment obligations are contingent on, or highly sensitive to, changes in the value of underlying assets, indices, interest rates of cash flows.”

No wonder structured investments are hard to control – nobody really understands them, or is willing to explain their fundamental lack of substance. But that has not stopped JP Morgan’s Jamie Dimon, MF Global’s Jon Corzine, or Lehman’s Dick Fuld. Lloyd Blankfein. And it won’t stop the Street from making markets in and trading geometrically leveraged derivatives that do not have any foundational value.  For the inside scoop have a heart to heart with  the untouchable – Blankfein, the latest Goldman Godfather from a long line of distinguished Goldman government infiltrators including: Henry Paulsen, Robert Ruben, John Thain, Stephen Friedman, Wm. Dudley, Gary Gensler – and Michael Pease, Barney Frank’s chief of staff.

Jefferson, in a letter to Albert Gallatin, Treasury Secretary in 1802, said:  “I believe that banking institutions are more dangerous to our liberties than standing armies.

When JP Morgan’s “synthetic portfolio” of derivatives used to hedge JPs investments – meaning they were designed to reduce risk – according to Jamie Dimon, lost “$2 billion” – the CEO of JP, who is also on the board of the New York Federal Reserve, told David Gregory, at the beginning of June, on Meet the Press that he could not explain the synthetic derivatives.  By the end of June the announced loss was up to $9 Billion, does anyone know the real ceiling?

No one can logically explain that the foundational value of Swaps is anything but virtual!  Has this been disclosed?

So why is this accepted when SEC regulations require proper, adequate and full disclosure of significant information?

As of June 2012, there were 1,847 pages of federal bank holding company regulations. One regulation stipulates it is “unlawful to securitize and sell any complex security that cannot be explained well enough to be understood.”  So why has this not been enforced?  Is it because hedging reduces exposure to risk and derivatives are the tools of financial risk managers?  Or is it because the Fed’s policy is to not enforce?  And Justice recently announced Goldman did nothing illegal and will not prosecute.

Is it true, the more often a lie is repeated the closer the lie is to being accepted as truth?

Alan Greenspan was the greatest 21st century promoter of financial innovation, i.e. derivatives:

“By far the most significant event in finance during the past decade had been the extraordinary development and expansion of financial derivatives. These instruments enhance the ability to differentiate risk and allocate it to those investors most able and willing to take it – a process that has undoubtedly improved national productivity growth and standards of living.’’ –- Alan Greenspan, Chairman, Board of Governors of the US Federal Reserve System, April 2005.

Unfortunately, we are living in a financial environment that no longer pays much attention to the economic distinction between financial investment and real investment (which creates capital formation).  Why?  Because financial investment leverage – which only produces fees and net worth for Wall Street Godfathers — is the most powerful way to maximize profits for Wall Street Banks.  And derivatives are the purest form of financial leverage ever dreamed up – outside of a pure Ponzi scheme.

The Republican economic plan, the economic plan of the “job creators,” is to have less Wall Street regulation, restore “supply side economics, and allow the free markets, based on the fallacious notion that markets are rational, to correct whatever in the market needs correcting.  “Let Detroit go bankrupt, and let all the houses underwater go into foreclosure.”  (Mitt Romney)

Free is a sacred word in America, so it is important to always equate freedom with whatever outrage the job creators deem necessary to continue the ability to add to their already enormous piles of wealth. Freedom is a Wall Street ruse to maintain the return to the robber baron economic theories of Social Darwinism. For the past 22 years I have called this return – Financial Darwinism.  My new book is about how Social Darwinism has metastasized into Financial Darwinism and why this is the root cause of what Paul Krugman and Arthur Laffer call a depression. And why 20% of kids in America are hungry!

The return of laissez faire, maximize profits (no matter what) from the robber baron era of Social Darwinism is the root cause of our current depression and vast chasm of economic inequality, and the underlying problem behind so much of what is wrong with our political arena, financial world and socio-economic concerns.

Yet Nobel Prize economists, like Greenspan, from the Chicago School, at the end of the 70s and beginning of the 80s, led the charge against Glass-Steagall and the 1956 Bank Holding Company Act to get rid of regulations that for decades had effectively controlled the sociopathic greed that had caused the Great Depression.  The Chicago School economists became leading advocates of supply-side Economics, which held that reducing taxes and barriers to any economic activity would create more jobs and a stronger economy.  Today the Chicago School has denounced supply-side economics as well as the deregulation that allowed sociopathic greed out of the carefully constructed cage provided by Glass-Steagall and the 1956 Bank Holding Company Act.

The supply-side arguments that were promoted by Romney and Ryan, represent Republican contemporary thought; and are contrary to the empirical realities clearly manifested by our current depression.  Supply side is a large part of the cause of this depression.  However, our Fourth Estate either does not fully understand this or is not courageous enough to rebut those Republicans who continue to argue that the world is still flat.

Why does the media not relentlessly focus on the incredible danger of returning to economic theories that caused the economic and social tragedy of the Great Depression and this one?  Why does the media not focus on the macro danger of derivatives that are always on the edge of slipping out of control?  There should be a new war: The War Against Derivatives.
Sadly, even if we get reform, there is no reason to believe the SEC will be any better administering it than we have seen from the past. The Dodd-Frank legislation has created a cottage industry for Wall Street lobbyists to furnish enough comments to clog up the final format for over two years.

Dodd-Frank is supposed to make the implausible transparent.  And the Volker Rule provides the assurance that risk measurement will be tightened and compliance will be strengthened.  If the past is prologue we still will be on a path of macro systemic financial risk – risk which is not manageable.

Dodd-Frank will not be simple, which makes it more difficult to administer, notwithstanding the lack of logic behind continuing to allow Wall Street to contrive structured investments that add nothing to the capital formation process. Derivatives are as far from real investment as you can get.

It does not take more than a year out of college, even if you are fortunate to have landed a job with Goldman Sachs, to know you are assisting in the operation of a rigged casino.  To participate in contriving derivatives, selling them or in assurances of risk management and risk minimization is to be a party to contributory negligence.  There is no way to think it makes sense to have helped create $700 trillion of egregiously leveraged systemic risk. A bubonic sized financial plague.

Derivatives need to be banned.  They caused a financial disaster that lingers some four years later.  If Congress does not act, we will be cursing derivatives again.

This article originally appeared at:  www.the5thestate.net .

The Pinocchio Games

Let the Fantasy Gambling on Virtual Derivatives Continue!

No wonder derivatives are too complex to explain.  You can’t explain god or faith based creationism to people who need empirical evidence.  God, at least, can be a positive force for individual good when people follow the moral precepts God is credited with.

And the god-like sociopathic greedy narcissists who rely on derivatives to amass enormous riches from the fantasy gambling in casinos they own are not unlike faith healers going to the far reaches of this globe speaking in tongue to amaze prospective converts.  Ernest Angley and Lloyd Blankfein are brothers of the same cloth; however, Lloyd’s cloth is an infinitely more sophisticated cut - to appeal to his geometrically more sophisticated followers. The basic difference is that Ernest wears a rat’s ass piece, while Lloyd prefers the blinding shine of his bald pate in the eyes of his mesmerized players/investors.

Financial markets trading in shares of stock are faith based, because no one knows if corporate news is real, or how badly numbers have been arranged – or massaged to produce profits in the short term at the expense of the long term, or obscured in the cracks of consolidated returns or hidden in off balance sheet dummy entities – or stashed off shore in the ever neutral Switzerland, the land of dictator money – from the Third Reich to the Columbian drugs lords.  Everyone talks about the importance of “investor confidence.”  But, at least a stock is a share of a company that does something tangible like making light bulbs, planes, jet engines or computers or software or in Madoff’s hedge fund.

When JP Morgan Chase lost (lost is the operative word) $10 Billion in their “synthetic portfolio of derivatives,” Jamie Dimon, the CEO of Chase and Fed Bank of New York Board Member, explained to David Gregory that he -could not explain a derivative.  Is the derivative market like playing poker without chips and you don’t dare explain the chip is not real – or the SEC might find out the casino is a computer program composed of a complexity of algorithms (financial engineering on high) and unrequited greed. It seems the derivative market is merely malarky based on a vast amount of empirical evidence.

We know Congress does not take lying lightly.  Look how it spent millions to determine if Barry Bonds lied about steroids; and consider how much time has been devoted to Benghazi and will continue to be as a plethora of committees are forming to get to the bottom of why it is difficult to control terrorism.  Now that Republicans suddenly care about facts – when only weeks ago, en masse, they disregarded lots of facts by trying to lie their way into the White House  – or decades ago, cover up lies to keep it, in the case of Nixon.

Let’s get the market makers under oath, and then find out what they don’t understand.  They understand the 5th (not this one).

To date, there are no committees forming to investigate the Pinocchio Games although the casinos, ie, the markets trading derivatives contain $600 Trillion to $1.2 Quadrillion of the unexplained stuff.  No one wants to investigate the Wall Street Godfathers or the CEOs who want to moderate entitlements and food stamps to bring down the deficit – when their greed can bring down the house. (And just might!)  It is well known that Justice has not attempted to charge or indict one Godfather with fraud – no committee investigation?  Not even, the always concerned for truth, Issa, who is away on the border looking for guns.

At least when someone buys the Brooklyn Bridge the buyer can see it and touch it.  Which is more than can be seen and touched in the Pinocchio Games!

From more than 4 decades in the securities business; from the personal experience of owning an NASD Member Firm Broker Dealer (specializing only in real estate private placements) and on the SEC’s list of Broker Dealers to submit proposed rule changes to – I know why Dodd-Frank will not work and why Derivatives are unlawful.  And I know why all the reasons for allowing derivatives of the Swap variety and continuing markets for Swap liquidity are hollow lies, and so should you.

The primary reason apart from blowing up the world with so much financially leveraged marlaky, is that Derivatives do not provide any real capital formation contrary to all Greenspan’s lies to Congress.  From How We Got Swindled:

Chapter 10:  “Too Complex to Explain” Financial Instruments: Derivatives, CDOs, CMOs, Swaps, and Rancid Tranches – Pools of Worse than Junk Bond Debt

By far the most significant event in finance during the past decade had been the extraordinary development and expansion of financial derivatives.  These instruments enhance the ability to differentiate risk and allocate it to those investors most able and willing to take it – a process that has undoubtedly improved national productivity growth and standards of living.”  Alan Greenspan, Chairman, Board of Governors of the US Federal Reserve System, April 2005, and Genius.  Who was the recipient of lots of outside income as a consultant to Investment Banks and Mega Banks, and leader in the fight against regulations!  Greenspan’s 2005 inscription in granite, like a commandment from God…” www.howwegotswindled.com

Derivatives (Credit Default Swaps are the most lethal) are not a derivative of any known value; unless some shard of value existed prior to slathering on 50 times or whateverrrr leverage.  For example:  if you own a house for $100,000,000 and your down payment is $1,000 – if the house goes down .01% in the price it could be sold for – you have nothing but accelerated losses from all the leverage; but if it goes up .05% you make a killing if you can sell it.  The key is to be able to match sellers to buyers immediately, which is called a market, and being able to sell by giving an order to sell is called liquidity – the ability to get out when you want.

So what will be the outcome of an amount of derivatives approaching infinity?  And why is risk at the level of a worldwide bubonic plague allowed to fester and fulminate infusing our entire globe with an untenable amount of financial risk that will be unlike anything before experienced by man unless it is brought under control and outlawed.  Jesus Christ knows, we can’t drive a car without insurance, or afford flood insurance in a flood plain - so when the total risk exceeds the total world GNP by a multiple of 10 or more, then what.

The SEC’s mission is to protect the markets to provide stability, and the Fed mission is to regulate the Bank Holding Companies to provide stability as well as to control inflation with monetary policy.  Both have a long history of not intervening when necessary and controlling greed is an exponentially more profound problem than inflation.

One thing for sure – sand bags and mirrors will not stop the waters of a financial H Bomb, nor will an investigation of Benghazi.

Fiscal Myth: The Cliff or Liquidity for "Markets"

Myths permeate our news.  Who can explain with logic and reason why if tax brackets return to the Clinton years and why if “defense” spending is reduced we are then at the edge of a precarious precipitous cliff?  And who can explain with logic and reason the need for markets for liquidity for $600 to $700 trillion derivatives that have no foundational value and are “too complex to explain?

I can.

These are both economic myths which may seem unrelated; however, if the basis for an economic myth is a lie or a ruse to elicit a Pavlovian response to avoid the lack of material substance behind the myth, and when the myth is a decoy, i.e., a Trojan Horse – these economic myths are related.  Especially because they are both a product of the return to Social Darwinism which Obama discussed on April 3, 2012:

Slamming 'social Darwinism,' Obama reignites debt clash with GOP...

Apr 3, 2012 – Barack Obama delivers remarks at the American Society of News Editors Convention ... The president referred to the GOP budget proposal as 'thinly veiled social Darwinism.' ...

Obama Sparks Debate On His Meaning Of 'Social Darwinism'

Apr 5, 2012 – Obama argued that the plan was "thinly veiled social Darwinism." But what .... John Boehner Fiscal Cliff Comments Show Tough...

First to debunk the cliff: 

Boehner’s cliff is Grover Norquist and the Republican pledge of allegiance to Grover well ahead of the best interests of America.  The pledge of allegiance, even for Republicans in Congress, is supposed to be – to the (American) Flag and the United States of America…  So this cliff is for Republicans to jump off of in their lockstep support for Norquist and their refusal to raise taxes for individuals earning in excess of $500,000 or $1,000,000.  And their cold war mentality support for the military industrial complex – because to reduce ‘Defense Spending’ is to stop significant the waste to support the military industrial complex Eisenhower warned JFK about, and to cease and desist paying for huge military installations in Europe and Japan dating back to post WWII needs, or paranoia.

If having higher tax brackets for the 47% is viewed as injurious to our economy because there will be a decrease in consumer spending, then the Republicans have the choice to retain all the lower tax brackets created by Bush, excepting the top bracket which can remain where it was during the Clinton years.  But Republicans will need to vote to lower all the brackets below the top bracket – which is something they have refused to do, in the event this has not been crystal clear.

And where do the fraudulent rating agencies get off by being allowed to lower ratings when they were instrumental in the 2008 crisis, because they furnished fraudulent triple A ratings for fraudulent CMOs and CDOs.

From my new book:  How We Got Swindled by Wall Street Godfathers, Greed & Financial Darwinism ~ The 30-Year War Against the American Dream:

Chapter 7

Appraisers and Raters
Drove the Getaway Cars

Raters became involved with Banks and Wall Street’s innovative “too complex to explain” debt, which was securitized, packaged and sold as bonds.  And they were paid significant fees to rate the risk which was deemed to have been mitigated by the fallacious assurances provided by Credit Default Swaps.  So raters enabled Wall Street and Banks by providing ratings too good to be true.  A rating is like the depth meter on a sailboat in that you always think you know where you are until you hit rocks. I know I have hit rocks…

Investments with phony ratings catered to the Investor Risk Avoidance Syndrome – (which has a well documented history.) Raters, who must have known better, relied on financial engineered, risk measurement tools.  And these esteemed “professional” tools were intentionally designed to mask risk in order to sell blind pools of unmitigated, fallaciously appraised real-estate sub-prime, over leveraged, mortgage debt. It is obvious that raters were paid to bless all the lousy lack of substance with alphabetical grades like AAA or AAb….

So we live in fear of ratings going down, when the world economy still depends on us and our dollar.  The individuals who ran the raters during the lead up to 2008 should be indicted, (maybe for treason).

Next, the Military Industrial Complex which Dwight D. Eisenhower understood as well as anyone in the world, and who was right 50 years ago:

Eisenhower warns of military-industrial complex — History.com

On this day in 1961, Dwight D. Eisenhower ends his presidential term by warning the nation about the increasing power of the military-industrial complex.

Certainly I have nothing to add - except that the new Republicans have regressed to the cold war mentality prior of the pre Iron Curtain Era in the aftermath of WWII.  And this is characterized by the term “neo-con;” which means a group of people who see a communist under every rock along with an enemy of the United States, and believe that if we have enough nukes to blow up the globe 30 times it is not enough.

This leads to the real threat to the future of the United States and the Globe which is the risk of leverage explosion - which means a Hydrogen Bomb sized financial plague of $600 to $700 trillion derivatives.  And the myth that markets to provide liquidity for “investors” to play fantasy investing by trading in derivatives (without any foundational value that cannot be explained) are essential is a ludicrous dangerous distortion of reality.

To make derivative markets transparent for protection is like saying - I understand the complexities and inner workings of a human body best on a nude beach.

Alan Greenspan, the great mathematician and prominent Wall Street consultant summed up the importance of derivatives, from Swindled:

Chapter 10

“Too Complex to Explain” Financial Instruments: Derivatives, CDOs,
CMOs, Swaps, and Rancid Tranches – Pools of Worse than Junk Bond Debt

By far the most significant event in finance during the past decade had been the extraordinary development and expansion of financial derivatives. These instruments enhance the ability to differentiate risk and allocate it to those investors most able and willing to take it – a process that has undoubtedly improved national productivity growth and standards of living.”

-- Alan Greenspan, Chairman, Board of Governors of the US Federal Reserve System, April 2005, and Genius. Who was the recipient of lots of outside income as a consultant to Investment Banks and Mega Banks, and leader in the fight against regulations! Greenspan’s 2005 inscription in granite, like a commandment from God…

How We Got Swindled is about the return to Social Darwinism that has metastasized into Financial Darwinism and how we found ourselves in the 2nd worst economy since 1776.   Financial Darwinism is behind all the newest myths and is the root cause of our current depression, where 20% of kids in America do not have enough to eat, and the vast chasm of financial inequality continues while Republicans have voted in lockstep for Grover, and our media parses how to get the (our) Congress to become “non-partisan,” because too many members of the 4th Estate have become non-partisan about the truth. 

The real cliff is the lack of concern for empirical evidence that we are living in a world that is ruled by fantasy investing so Wall Street Trojan Mega Banks and some Mega Multinational Corps  can continue to generate huge profits at the expense of the capital formation necessary to create jobs in America.

Social Darwinism created the need for unions, and its return has morphed into Financial Darwinism which has renewed the need for unions. It is critical to have a complete discussion of the return to Social Darwinism. Watch for my next article, and get a copy of Swindled to learn what Congress and Wall Street do not want you to know and what the 4th Estate cannot completely understand from the outside looking in.

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