Tuesday, May 11, 2010
Some Are Austere, Others Are Favored
"From such beginnings of governments, what could be expected, but a continual system of war and extortion?"
- Thomas Paine
Last Thursday's market crash was a predictable result for the zombie economy. The truth is, the crash has been waiting for a long time to happen. Signs of the collapse have been ever-present and popping up on all sides. Clearer than ever has been the sinking in of reality- Wall Street criminals in Brooks Brothers suits have stolen trillions of dollars to keep their charade going. The politicians, law enforcement, the media; everyone is part of a massive con to bilk money from Americans people into the coffers of the large financial institutions. Many had pensively awaited and some have wished for Thursday's panic. It was evident as 2009 rolled into 2010, the bailout money was used up, and promises were getting weaker and weaker. And then in February, Goldman Sachs announced it would not redeem auction rate securities for cash (it was these in '08 that contributed to the devastating crash and subsequent bailout; a.k.a. toxic asset). Investors, upon buying the bonds, had understood it differently. But after the failure of treasury auctions, which are completely prejudiced, even with a "watchdog," primary "indirect" buyers, like China, have significant concerns about the future worth of U.S. Government T-bills. The treasuries that are left over are forced to be bought by U.S. banks. This is a bad trend considering the shoddy shape of the U.S. banks and likely to result in a cascading debt spiral of catastrophic proportions.
The vice continues to tighten around Americans and they really do not understand how or why. Without a doubt, credit default swaps and auction rate securities are difficult to understand. Those confusing financial instruments are supposed to be preplexing so a "money manager" can use the "Wall Street Casino" to fractionally and fraudulently transform your investment into thousands and millions. It does not matter how confusing they wish to make it; debt is debt. There are a few simple ways to be unencumbered by the debt but the international bankers cannot turn back at this point. Watch CNBC's Rick Santelli ask Rep. Paul Kanjorski if its nature of being complicated is an excuse not to explain economics.
The austerity measures will not be the same for everybody in the world. Culturally, people are different. Bankers and governments have to find an acceptable level of suffering by which to extract the money and keep control of society when violence is likely to arise. The International Monetary Fund (IMF) forced Greece to accept "public sector pay cuts, higher taxes on alcohol and cigarettes, and tighter retirement rules." France, however, has rejected austerity measures, saying they will cut spending for three years. Why can they do that when they are also in the European Union and use the Euro as currency? Probably for the same reason the Federal Reserve was allowed to bailout the European Union. In the quest for the New World Order, countries and constitutions do not matter. Corporations and royalty with the funds to back up their totalitarian dream do matter and they think they will arbitrarily decide who lives, who lives well, and who dies.
"I don't think it's bribery; it's extortion. Bribery, you know, is when the person that's giving the money does it voluntarily. What it is in Washington is extortion because they ask for all the money."
- Senator John McCain
Where will America fit in in the IMF's "World Austerity Plan?" The word 'austerity' has not even been bandied around in U.S. circles as possible "policy." The IMF, World Bank, and others have been satisfied thus far to rely on U.S. politicians, who have been very hospitable to banking interests, to retrieve Americans' cash. No one except the Federal Reserve and some other Executive Branch officials know exactly what austerity measures make up the conclusion of the IMF's 2008 audit of the United States. Regardless, they know- and considering the size of America, its debt, and its ever-growing police state, the consequences do not look promising. Last month, Ben Bernanke warned that American would have to "accept higher taxes or changes in cherished entitlements like Medicare and Social Security." Wait, didn't the government just take over the health care industry? Why will we have to accept cuts there? Whatever logic is applied, the fact remains, as Dick Durbin said, "Frankly, banks own the place."
If the first few months of 2010 are a prelude of what to expect, most cuts will occur on the state level. In exchange for future state bailouts, cuts in state and city governments will be commonplace. Recently, the New York state legislature voted to furlough workers for one day per week without pay. For each worker, that amounts to about $267 per week. That is a pretty large dent in someone's salary when food prices, gas, and other needed commodity prices are set to soar as a result of trillion dollar bailouts for countries all over the world. In Illinois, a fiery debate is raging about the budget. Democrats have proposed a budget that would short change "troubled" pension programs and give the governor broad new powers over spending . Since Illinois already owes pensions $3.7 billion and can't come up with the money, lawmakers are hoping to wait it out until people are willing to pay more taxes. Good luck with that.
In these first days of American austerity, no sector is getting hit like the public schools. Despite providing the brainwashing to get Americans to accept socialist totalitarian measures, the Federal Reserve banksters have put the public schools first on approaching the chopping block. From the big cities to the rural areas, public schools are being forced to downsize or close their doors. Class sizes will have to get bigger. In Chicago, the city public school system will have to replace 80 principals, due mostly to them being fired. Meanwhile, Chicago Public Schools CEO Ron Huberman was able to recently purchase a $898,000 home on Chicago's North Side. The National Pulse surmises that, through the prejudiced, blood-thirsty prism of the New World Order, things are not so bad after all.
Posted by J.S. Liberty at 9:48 AM