An Unmentioned Cause Behind America’s Economic Woes

America’s economy is in a bad way. The economic recovery has turned out to be disturbingly weak, and joblessness rates are still actually rising. Investment is down, Americans are depressed and angry, and there are even worries about a double-dip recession.

There has not been much analysis of the causes behind today’s economic stagnation. Most experts talk about how weak recoveries generally follow financial crises. Politically, Republicans blame Democrats, and Democrats are generally too busy trying to fix the problem than to think about what caused it.

Yet there is indeed something that did badly damage the recovery – an event very few nowadays link to America’s economic woes. This event was much like the 2008 financial crisis (indeed, it actually was another financial crisis). It dominated newspaper headlines, threatened to severely weaken several economically mighty countries, and in the end required international intervention to the tune of one trillion dollars.

On the surface, the European sovereign debt crisis – and more specifically, the bankruptcy of Greece – might have little to do with the United States. Greece, after all, is quite far away from America. Yet, as 2008 showed, the fall-out from a financial crisis goes wide and far; if Europe was hurt by America’s financial crisis, it stands to reason that America was hurt by Europe’s financial crisis.

Moreover, both crises had much in common. Panic hit the market and risk spread wildly, from the original contagion to even the safest strongholds. In the United States, banks went bankrupt; in Europe, countries went bankrupt. For both crises, the “fix” cost hundreds of billions of dollars.

There is another, more ominous analogy. The Great Depression, it is commonly held, started with the collapse of the American stock market. What really made it “Great,” however, was a series of bank failures that followed. These started in Austria. If the 2008 financial crisis was Black Tuesday, then the Greek crisis holds a disturbing parallel with the chain of bank failures that started in Europe.

Fortunately, the European Union was able to put a halt to the Greek crisis – unlike what happened during the Great Depression. Due to the lessons learned from that era, unemployment is less than half what it was during the Great Depression’s peak (which is, unfortunately, still quite high).

Nevertheless, the fact that the European debt crisis was halted probably did not it from inflicting the harm it had already done. Much as the 2008 financial crisis raised unemployment to jump to 10%, fall-out from the European financial crisis seems to be keeping it at that number. It is interesting that almost nobody, whether in politics or economics, seems to be publicizing this fact.

--Inoljt, http://mypolitikal.com/

 

 

Part 4: Golden Lily’s Liar Loans and the Subprime Meltdown

In parts one, two, and three a narrative was formed around covert right wing activities stretching from the end of World War 2 up until the start of the War on Terror. In a nutshell, a giant horde of stolen riches known as the ‘Black Eagle Trust’ were used to fund a shadow American empire tucked under the meme of anti-communism.

At the end of the Cold War, a large number of ‘off-balance sheet’ securities were issued by banks such as UBS and Deutsche Bank against this wealth and funneled into the USSR.

In September 1991, George H. W. Bush and Alan Greenspan, both Pilgrims Society members, financed $240 billion in illegal bonds to economically decimate the Soviet Union and bring Soviet oil and gas resources under the control of Western investors, backed by the Black Eagle Trust and supported later by Putin who for the right price purged certain oligarchs.

After the Soviet Union fell, the cabal in possession of these resources made plans to cycle them into the legal economy and cover-up the dirty deeds that they were associated with. The original 10 year Brady bonds, set to mature in September 2001, were destroyed in the attack on the World Trade Center. The firm that held the securities was Cantor Fitzgerald, which suffered catastrophic losses including the death of every employee.

Under a suspension of regular rules by the SEC, the illicit bonds were cleared by the Bank of New York and added to the capital reserves of banks holding ‘Black Eagle’ gold including Chase, Citibank, Credit Suisse, HSBC, Deutsche Bank, and UBS. To obfuscate its trail, the money was quickly shifted into the mortgage market, where the demand for subprime loans would rise by $246 billion.

Loans that require little or no documentation of income soared to $276 billion, or 46 percent, of all subprime mortgages last year from $30 billion in 2001, according to estimates from New York- based analysts at Credit Suisse Group. Homebuyers with those loans defaulted at a 12.6 percent rate in February, compared with 1.5 percent of fully documented prime mortgages, said San Francisco- based First American LoanPerformance, a mortgage consulting group.

The global financial crisis, like the massive pyroclastic clouds flowing through the streets of New York on 9/11, has served as a smokescreen for the criminal syndicate which inherited Golden Lily’s loot to get away...

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Illustrating Inequality in the United States

(Note: I strongly encourage you to click the image links on this post when reading; they're essential to understanding what I'm saying.)

Inequality constitutes a rising problem in United States. Ever since the 1970s, it has been steadily increasing; today, income inequality is at its highest since the Great Depression. The fact that America is currently mired in the worst economic crisis since that period may not be a coincidence.

This site has found fifteen striking charts of inequality. Some are better at conveying the problem than others. Nevertheless, overall it does a decent job at presenting the magnitude of American inequality. Pictures like the one below are especially effective:

Link to Image of Distribution of U.S. Wealth, 2007

The causes of this growing inequality remain complex. Experts attribute numerous causes. Some point to the decline of manufacturing and blue-collar industry since the ’70s – which probably plays a part. Liberals blame conservative tax-cuts which helped the rich disproportionately.

Whatever the reason, it remains undeniable that the well-off have benefited most from the economic growth over the past few decades. Another graph illustrates this point:

Link to Image of Differential Pay Increases in the U.S.

What is most striking about this chart is the degree to which CEO pay increases, almost without regard to how well the companies under their management do. The stories of massive Wall-Street bonuses to CEOs responsible for bankrupting their banks have become infamous; the practice continues.

At some point something will have to be done to curb this trend. Taxes on the rich will almost certainly be raised, although it would be better to do this after the recession. Even the analysts on Fox News acknowledged this on their Sunday discussion forum. The estate tax – which falls on the inheritances the rich give to their children – is going back to its level before President George W. Bush cut it. The New Yorker and other sources are proposing a “millionaire’s tax,” something for which broad public support probably exists.

All in all, increasing inequality remains a threat to the overall wellbeing of a country. As a matter of fairness, income inequality goes hand-in-hand with opportunity inequality – leading to rigid social stratification. This sets the ground for social unrest, as the rich increasingly feel disconnected from the poor, and vice versa. In the worst case, things may end in revolutionary violence.

Of course, the United States is nothing near that situation now. Best keep it that way.

--Inoljt, http://mypolitikal.com/

 

Illustrating Inequality in the United States

(Note: I strongly encourage you to click the image links on this post when reading; they're essential to understanding what I'm saying.)

Inequality constitutes a rising problem in United States. Ever since the 1970s, it has been steadily increasing; today, income inequality is at its highest since the Great Depression. The fact that America is currently mired in the worst economic crisis since that period may not be a coincidence.

This site has found fifteen striking charts of inequality. Some are better at conveying the problem than others. Nevertheless, overall it does a decent job at presenting the magnitude of American inequality. Pictures like the one below are especially effective:

Link to Image of Distribution of U.S. Wealth, 2007

The causes of this growing inequality remain complex. Experts attribute numerous causes. Some point to the decline of manufacturing and blue-collar industry since the ’70s – which probably plays a part. Liberals blame conservative tax-cuts which helped the rich disproportionately.

Whatever the reason, it remains undeniable that the well-off have benefited most from the economic growth over the past few decades. Another graph illustrates this point:

Link to Image of Differential Pay Increases in the U.S.

What is most striking about this chart is the degree to which CEO pay increases, almost without regard to how well the companies under their management do. The stories of massive Wall-Street bonuses to CEOs responsible for bankrupting their banks have become infamous; the practice continues.

At some point something will have to be done to curb this trend. Taxes on the rich will almost certainly be raised, although it would be better to do this after the recession. Even the analysts on Fox News acknowledged this on their Sunday discussion forum. The estate tax – which falls on the inheritances the rich give to their children – is going back to its level before President George W. Bush cut it. The New Yorker and other sources are proposing a “millionaire’s tax,” something for which broad public support probably exists.

All in all, increasing inequality remains a threat to the overall wellbeing of a country. As a matter of fairness, income inequality goes hand-in-hand with opportunity inequality – leading to rigid social stratification. This sets the ground for social unrest, as the rich increasingly feel disconnected from the poor, and vice versa. In the worst case, things may end in revolutionary violence.

Of course, the United States is nothing near that situation now. Best keep it that way.

--Inoljt, http://mypolitikal.com/

 

Part 2: From Golden Lily to the War on Terror

In part one, it was revealed how $3 trillion in treasure plundered from Asia by Japan in the WW2 operation 'Golden Lily' was confiscated by the United States and funneled into a covert fund used by the CIA to fight communism.

This ‘Black Eagle Trust’ would bankroll numerous secret actions taken by the U.S. throughout the second half of the twentieth century.

One of the hidden accounts, called the ‘M-Fund’, was used to purchase political influence in Japan. It allowed the country to illegally rebuild their army while the U.S. moved troops to Korea. Richard Nixon repeatedly dipped into the fund as vice president to buy influence in the region. As president in 1971, he sent $35 billion to Japanese Prime Minister Kishi, an indicted war criminal.

In addition to foreign activity, the black accounts were used to fund operations within the United States. Nixon’s Japanese fascist friends, elements of what would become the World Anti-Communist League (WACL), are believed to have participated in the Kennedy assassination. This event was part of the larger war on the American Left known as COINTELPRO. The WACL went on to back Latin American death squads under President Reagan.

However, the greatest achievement of the ‘Black Eagle Trust’ would come under his successor, President George H.W. Bush. He would reach the ultimate goal, destruction of the U.S.S.R.

In 1989 President George H. W. Bush began the multi-billion dollar Project Hammer program using an investment strategy to bring about the economic destruction of the Soviet Union including the theft of the Soviet treasury, the destabilization of the ruble, funding a KGB coup against Gorbachev in August 1991 and the seizure of major energy and munitions industries in the Soviet Union. Those resources would subsequently be turned over to international bankers and corporations…

Project Hammer was staffed with CIA operatives and others associated with the National Security apparatus. Covert channels were already in place as a result of other illegal Bush activities. Thus, it was a given that the project would use secret, illegal funds for unapproved covert operations, and that the American public and Congress would not be informed about the illegal actions perpetrated in foreign countries. The first objective was allegedly to crush Communism, a growing political philosophy and social movement that was initially funded by the usual group of international bankers who now supported their demise. To this end, the "Vulcans" under George H. W. Bush, waged war against the Soviet Union…

During the process of accomplishing the main objective of destroying the Soviet Union, the operatives made massive profits. In September 1991, George H. W. Bush and Alan Greenspan, both Pilgrims Society members, financed $240 billion in illegal bonds to economically decimate the Soviet Union and bring Soviet oil and gas resources under the control of Western investors, backed by the Black Eagle Trust...

Herein lays the rub. With the removal of the world’s greatest purveyor of communism, the mission of the ‘Black Eagle Trust’ was complete. Nevertheless, it would be necessary to cover up its existence. Records of the Brady bonds, borrowed against illicit holdings, remained in the offices of Cantor Fitzgerald in New York City.

From early 2000 to June 2001, several workshops were held between the Naval War College and Cantor Fitzgerald at the top of the North Tower to discuss “globalization’s future and the threats that could derail it” One day before the 10 year bonds reached maturity, the attack on the trade centers struck directly below Cantor, killing all of its employees and destroying all documents.

The final step to bury evidence of the great stolen treasure was to target outsiders who had touched the Black Eagle Trust. The CIA had used money laundering schemes through dictators such as Saddam Hussein and dirty banks like the B.C.C.I. With the advent of the War on Terror, every rogue agent affiliated with the trust could be targeted...

Related Posts

Part 1: Golden Lily: How the CIA Funded a Covert Empire

Part 3: The Collateral Damage of Golden Lily

Part 4: Golden Lily's Liar Loans and the Subprime Meltdown

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