Oct 3, 2008

A Fascist Coup

Fascism arrived in an unprecedented coup, and the shameless Paulson is already hard at it completely taking over the US financial system.

The hubris shown by Paulson is breathtaking. The "Office of Financial Stability" will be headed by none other than former Goldman Sachs CEO Ed Forst.

Paulson's plan is to buy "up to 250 billion" in 'toxic assets' from his cronies on wall street and then sell them at auction, not to individuals, but to "any financial institution that meets the Treasury's conditions."

Lehman, Sachs and any of the 'troubled' institutions that have their billions invested in mortgage-backed securities will start auctioning off these "properties" through the government to the state-chartered banks - competition to those who now run the show - thereby eventually eliminating their competition.

Sachs et al will be getting a twofer. Not only will they be getting "free" money from the treasury, but will also leave the smaller banks and investment firms holding the toxic waste. When those companies go out of business, Sachs and Lehman Bros. can snatch the assets back up, either for free, when the government seizes the assets at some later date, or at ridiculously low prices.

It is one big Ponzi scheme and the Congress just opened the door wide and totally sold the entire financial system to criminals.

If you thought that the 'Emergency Economic Stabilization Act of 2008' was going to stabilize the economy ,think again.

The Treasury could add three- and seven-year notes, as its borrowing advisory committee has proposed. It also could reopen existing notes and bonds, or even hold a series of one-time medium- and long-term debt sales.

``Under normal circumstances, the Treasury's financing decisions are guided by its desire to be regular and predictable,'' said Louis Crandall, chief economist at Wrightson ICAP in New Jersey.

``However, there is certainly nothing `regular' about this rescue package, so that approach is not relevant,'' he said.

You can already tell that Paulson and his cronies, in trying to cover up the largest economic blunder in history, are throwing all caution to the wind. This seems to be the norm in financial crises. The people are willing to take things slow and weather the storm while the financial gurus are jumping out of windows.

It is already clear that the medicine is worse than the cure and the bill was only passed today. Paulson will tinker and fiddle while Rome burns. With virtually no accountability and an unlimited supply of cash, any mistake he may make will be compounded by many more as he tries to fix the unintended consequences that arise from his tinkerings.

What he cannot possibly admit, and this is the grand irony, is that the fiat system he seeks to control and bend to his will cannot be mended. There is only one, inevitable outcome - bankruptcy. Because he cannot and will not admit this, and every one of the big asset-management companies he seeks to hire will be, by definition, advocates of this fiat-currency-based system, there will be no one to tap him on the shoulder, telling him what he seeks to accomplish is impossible. And were there somebody to do so, they would be dismissed faster than you can say "toxic asset."

We are quite near the end of the current dollar's existence and we should take care to have a say in the currency system that arises from the ashes. The people who brought you this mess will most definitely be advocating that the dollar be scrapped in favor of the Amero, yet another fiat currency. Lipstick on a pig, as it were.

When the system collapses, sound money is going to be the only way we can preserve freedom. But, we don't necessarily have to wait for the collapse to start using sound money. As the economy is wrecked and the hyperinflation starts showing effects, the only recourse is to get out of any dollar-denominated assets and hoard things that can be used as money. Gold and silver are the most obvious choices but there are plenty of valuable barter items including salt.

However it turns out, it's clear that there are a very small number of blameless politicians. None of those who voted for or advocated for the bailout should utter a word when remedies are proposed. And if they do, they should be ridiculed and shunned.

1 comment:

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