 |
|
|
|||
 |
|||
|
|
|||
|
|
|||
|
|
|
||
|
|
|||
|
|
|
||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
 |
|||
|
|
|||
|
|||
|
|
|||
|
|||
|
|
|||
|
The Destructive World of “Troubled Assets”: Paulson shoots another arrow into the heart of the Economy
- Text size
Andrew Hughes
Global Research
December 6, 2008
The announcement in the last few days of a deal reached between the U.S. Treasury and the moribund insurance giant, A.I.G. provides a very lucid insight in to the nefarious and destructive world of the Troubled Asset Relief Program, otherwise known as T.A.R.P..Not only have A.I.G. received $152 billion to date and subsequently reported a third quarter loss of $25 billion, now they are to be cleared of their obligation on $53 billion worth of toxic credit default swaps. U.S. taxpayers are now on the hook for $205 billion courtesy of an institution which played in the Wall St. casino that passes for a “Financial Sector” and lost. Under the “Free market” system, so expounded upon by Government and Wall St. alike, A.I.G should be in chapter 11. Bailing out A.I.G and other failing institutions does absolutely nothing to address the fundamental issues at hand.
- A d v e r t i s e m e n t
The economy is in crisis because unemployment and overarching debt levels pushed thousands of families in to the untenable situation where they did not earn enough to cover their debts. This burst the real estate bubble inflated by Alan Greenspan, crashed real estate prices, consumer spending and manufacturing. What we are seeing now is the inevitable result of lack of Financial regulation, lax monetary policy and a symbiosis between Government and the Financial industry. The mortgages taken out by buyers had been bundled into complex financial instruments; Mortgage backed securities. The latter along with Credit default swaps and derivatives set the stage for a global financial meltdown. The Glass-Steagal act of 1933 had been conceived to prevent the Banking sector from indulging in high risk investments to protect the depositors of these institutions. This was repealed at the end of the Clinton Administration through the Gramm-Leach-Bliley Act of 1999 which opened the gates to financial destruction. With the stroke of a pen, the financial services sector was given the power to literally bring down an economy
The most urgent matter for Treasury to address is the toxic derivatives market. The notional amount of outstanding derivatives, as noted by the Bank of International settlements, comes close to $512 trillion. This represents a figure that is impossible to settle and is the real Armageddon which Banks are preparing for by hoarding the cash that they have received through the T.A.R.P..Unless this time bomb is defused by bringing the undeclared positions on the table, the duration and gravity of this crisis can only increase. As the underlying assets of these instruments crumble the Banks’ exposure to counterparty risk increases and will lead to the inevitable collapse of even more banks and reduce the availability of investment credit even more. The underlying assets include interest rates, mortgages, foreign exchange rates, credit ratings on companies and even creditworthiness of entire countries. This is the level of insanity that has passed for “Leveraged Investment”
With over $3 trillion of taxpayer money injected in to Banks, insurance companies, commercial paper, Fannie and Freddie what has come back to benefit the dying economy ? A reduction in lending, increased interest rates on credit card payments and further losses for these same institutions. No big surprise as the real economy has never stopped it’s nosedive. Does the Treasury really not realise that there is no point in investing in companies that have no chance of redemption ? By handing over Americans’ hard earned tax dollars and indebting future generations, the Treasury has been engaging in the biggest transfer of wealth in Human history. The U.S. is now the biggest debtor on the planet and the rest of the world has noticed. China, Japan and the Oil kingdoms that buy U.S. debt are losing faith and it’s only a matter of time until they turn off the tap.
-
- Social bookmarks
- Email this article
-
- Print this page
- Share on Twitter
December 6th, 2008 at 12:29 pm
1. The US government has the power to issue debt free money, as Lincoln did during the Civil War.
2. Congress is empowered to regulate the money and credit by the Constitution.
3. Ceding to private banks the power to regulate credit is unwise and probably unconstitutional
Therefore, keeping private banks alive is not necessary and counterproductive.
The current financial crisis is a grat opportunity to break free of the banksters. http://webofdebt.com
December 6th, 2008 at 1:11 pm
The biggest arrow is yet to come to the economy, the collapse of the Health Care system is just about to fall.
December 6th, 2008 at 1:48 pm
Good. I have never been so happy in my life as I am right now. Watching the people driving around with their sorry little f---in’ pathetic poor me faces gives me pleasure. I’ve seen people at the stores piss and moan about how their retirement has been stolen and they can’t make their bills. Poor pieces of animal s---.
I hand it to you people who stay in the fight you are worthey opponents but in the back of your minds you know how this all ends and you have your neighbors, family and co-workers for your destruction. Or you can join us and enjoy the fruits of the NWO. Take care of yourself.
December 6th, 2008 at 2:23 pm
Anybody ever realize that a central bank and a progressive income tax comes straight from Karl Marx and his communist books. Our whole history has been revised. We fought the communists for 40+ years and for what? They are the other side of the same coin.
-History may be revised… Even as it is being written-
December 6th, 2008 at 2:57 pm
Grid Lock DC – and Throw All of them Out.
As long as Americans tarry, and listen to their Financial Slave Masters,
the situation all across America will only get worse and worse.
The workers in that Chicago Factory have the right plan, they have
Grid-Locked that Company that shut down without paying them, and
they are not leaving unti they get some Justice for their Hard Earned Money !
December 6th, 2008 at 5:09 pm
Gov’t is issuing debt-free money–it’s called welfare–that for 40 years is partly what got us here.
December 6th, 2008 at 5:22 pm
Yeah im with #3 No Balls in America.
f--- you all, you’re just a bunch of pathetic moaning sheep that expect a free ride on the coat tails of real humans.
LOVE….what a pathetic concept.
HAPPINESS….is for soft cocks.
and TRUTH…who needs it when nobody wants to hear it anyways.
I just want to be part of the winning majority so I can relax and get on with being a complete and utter c--- to everyone.
Hey #3 lets go and blow some s--- up. I was also thinking we could kill your family. Surely there must be some dropkicks in that bunch. Your mum must be to old to be useful. And your dad has probably sucked a cock or two. Weve gotta kill all gays cause god hates em(and they talk funny)
(a bit like those pommies).
December 6th, 2008 at 8:01 pm
Q: If you truly believe that there were no planes on 9/11, then you are not only trying to hurt the 9/11 truth movement, you are trying to hurt the revolution
A: If you truly believe that there WERE planes on 911….then there will never be any movement or any revolution. They have already won. I believe in nothing EXCEPT verifiable evidence which consists ONLY of verifiable wreckage. Nothing more…nothing less. This is not a religion. We are not in church. Witnesses have NEVER been used to verify a single plane crash in world history. Only wreckage verifies a plane crash. Not one single piece of verifiable wreckage has ever been found of any of the 4 planes at any of the 4 locations from 911. You have been lied to. ps….I am not part of YOUR movement or “revolution”. Never have been…never will be. I only look at verifiable evidence from plane wreckage.
Q: “the revolution are not wasting their time with 9/11 truth. They are making documented changes, exposing the globalist criminals with hard facts”
A: Great. Where are these hard facts regarding wreckage that would verify a single piece from any of the 4 planes at any of the 4 locations? Have you ever asked that from these globalists? You say that by asking questions about 911 is a waste of time…then what are you doing here typing? These so called globalists have yet to get you to ask anything about the verifiable facts of there not being any planes on 911. Your revolution will start at a great disadvantage.
Q: “We need to understand what is at stake here if we continue to waste our time with 9/11 nonsense”
A: Hypocrisy is the only word I have to use. You are at a 911 website wasting time, talking about others wasting their time, about not wasting time???? One of the other aspects of the NWO is for them to be able to determine what is to even be discussed or focused on. Who anointed you as the creator of what is to be deemed fruitful and non-wasteful? You sound EXACTLY like someone straight from the NWO?
You left out the most important part of what NO PLANES on 911 means. It means that the US controlled, complicit, and liable media LIED to you on 911 and have been covering for these criminals ever since. GE, the company that owns NBC news, has made 100’s of Billions of dollars because of increased war and “security” spending directly from the events of 911. The events of 911 were that 4 planes crashed into 4 locations. As of yet….there has never been a single piece of verifiable wreckage from any of the 4 planes at any of the 4 locations on 911. IT WAS A LIE. The media themselves protect and defend the very people that you are trying to have a revolution against. The US people put a tremendous amount of trust, faith, and belief into their media. That is what NO PLANES on 911 shatters. It is similar to still trusting your pedophile priest after he has molested thousands. At some point you must come to grips with what the media did on 911, how you were lied to, how you were deceived, how you were incredibly and easily manipulated into believing….simply because they told you it happened. That is why there has never been any need to verify any plane wreckage….because the media told you it happened. By exposing the media first…..your “revolution” against these globalists or NWO will be much easier. Trusting without evidence will never again be acceptable. (The only reason that WMD’s were exposed is because someone kept asking…”show me the verifiable evidence”?!! Do the same for any of the 4 planes at any of the 4 locations….to date there has been nothing.)
December 6th, 2008 at 8:26 pm
If there were no planes on 9/11, then I guess all those people stranded at airports on 9/11 weren’t real either. My God, the conspiracy is bigger than I thought. Are airports real?
December 6th, 2008 at 8:44 pm
Who is John Galt?
http://www.tacticalwarfighterg.....ystems.php
December 6th, 2008 at 9:02 pm
The time to choose torture and death, or the microchipped life, is coming very soon. Wild animals don’t have such a bad way of life in comparison to ours.
December 6th, 2008 at 10:15 pm
LET’S SEE….
DO YOU REALLY THINK “paulson” IS LOOKING OUT FOR OUR BEST INTEREST?
HOW MUCH IS HE GETTING PAID?
I’M SURE HE MAKES MORE IN A WEEK THAT THE REST OF US “TRUE AMERICANS” MAKE IN AN ENTIRE YEAR.
WHAT COMES AROUND GOES AROUND…..
December 6th, 2008 at 10:18 pm
“paulson”
YOU’RE TIME IS LIMITED….
AND YOU WILL BE HELD ACCOUNTABLE FOR YOUR ACTIONS.
MAY GOD HAVE MERCY ON YOU.
December 7th, 2008 at 12:39 am
Endless bitching on blogs does nothing to stop the problems. What are any of the bloggers here DOING about these issues other than complain?
December 7th, 2008 at 2:09 am
#9 what the f--- are you trying to say? You are only exposing yourself as a sheep, mindlessly believing what the mass media has told you. If simply asking for verifiable evidence is so crazy, then slavery is freedom, black is white, etc.
Try just thinking for about 2 minutes, I guarantee it will change your life.
December 7th, 2008 at 5:57 am
Dude… We’d all be better off as wild animals; At least then, things will be NATURAL, & MONEY would not be a THREAT to all life on EARTH
December 7th, 2008 at 7:33 am
Time to store food. The so-called crash was only the detonator going off, with the derivatives unwinding shortly.
This one will take things to zero.
The Punch & Judy show you habitually think of as a government is going down.
The real masters have no use for unprofitable useless eaters in such large numbers.
It’s going to get interesting!
December 7th, 2008 at 10:48 am
I love the 1984esque doublespeak. An asset is an asset, a “troubled asset” is a liability. It’s like the Federal Reserves reserve requirements. Banks have to keep a percentage of their assets with the Fed. But now since all banks are broke, they let them keep ‘borrowed assets’ as reserves. A ‘borrowed asset’ is a debt, not an asset! I’m not even scared anymore because we are really winning. Millions of people visit these sites, millions of people watched Loose Change, Fabled Enemies, etc. And most important MILLIONS OF PEOPLE OWN GUNS!!!!
December 7th, 2008 at 1:48 pm
Let’s just face it folks. What’s going to be is going to be. America was built on a foundation of Native annihilation, murder, rape, cultural destruction, greed, slavery, racism, class, cultural and gender prejudice and exploitation, deception, wars……. how long did we think the party was going to last before all this came back around to smack us in the face? Yeah, the so-called founding fathers wrote a great constitution, but it was mostly empty words and esoteric idealism aimed mostly at the priviledged white males of that time. Many of the drafters of that same constitution were themselves owners of slaves and Indian killers. America has always been a nation steeped in hypocricy and now it’s time to pay the piper.
December 7th, 2008 at 4:20 pm
paulson is a sick man.
December 7th, 2008 at 4:50 pm
I dont know if anyone has mentioned this but God TV ch.365 on directv is playing Riddles in Stone a program about the secret societies, occult symbols, etc in our nation. They also are talking about alot of the same stuff Alex Jones speaks of. People are waking up in droves! If you know any religous types that might not lesten to Alex yet, these programs may be just what they need to see.
December 7th, 2008 at 5:15 pm
Listen to me, what I say about AIG is so true, and guess what has happen? About 1 1/2 years ago,
I was able to search AGI and the money men, and the funds paid to the House & congressmen,& women, Now 5 Months ago you can’t find s---, not even the donation records, or the salaries or working capital, some of this pubic stuff can not be viewed, It went BYE<BYE, Yep. And you look for the money, its gone baby gone,
Okay who wants to join me, I got as much as Alex, ( INFO ) but I want to reach people who are sleeping, WAKE EM UP,
Its not a lost cause
MN MIKE
December 7th, 2008 at 9:35 pm
Henry has been trying as best he can to correct the misjudgments of Mr. Greensapn. He is still trying to figure out what is best for the US an no one will give him credit when it is due. I see poor Henry stressing and praying to do the right thing. He grew up innocent to the ways of thew ord and has worked very hard to get to the point he is today like a regular US citiozen.
He just happened to ned up being the Treasury Secretary and now he is working hard to make things right an people still condemn his action..
Will someone please help him by sending him money…
You can find his address at the US Treasury web site or at the IMF website..
Any amount will help… Please send sparingly.
December 7th, 2008 at 10:03 pm
I just had a major fight with my fiance about this. I’m being told that I devote to much time to all of this that is going on and am brainwashed. This really sucks. People think everything is just peachy and it isn’t. Even my father who does nothing but watch racing says I look into this to much and that this kind of thing has been going on for a long time. He thinks that even if communism takes over our lives wont change at all. This is so damn frustrating. My fiance cant just have a discussion about it. She has to get mad as hell and start with the name calling. I cant believe how ingnorant people are. They think they know things without doing any research and I’m like well how do you know and that’s when they start getting mad. You can put facts right in these peoples face and they come up with some cow pucky that makes no sense. I just cant believe this. I don’t know what to do. I can’t stay with someone who is going to be blind to this.
December 8th, 2008 at 1:11 am
soldierfortruth – Tell her and your father that they are close minded and don’t care about the world we live in or their lives, along with their family & friends lives. Do what it takes to make these people relaize what is going on!!!!
I am with you brother and everyone that is their that desires the end of the NWO!!!!
December 8th, 2008 at 1:27 am
STOP COMPLAINING NOW! DO YOUR PART. GET REAL,READ THE WORD,THE ELECTION IS AT HAND! WE HAVE BEEN WAITING FOR THIS SINCE TIME BEGAN.
December 8th, 2008 at 1:36 am
OBEY GOD.READ THE WORD.REPENT,ACCEPT THE TIMES AT HAND.WATCH AND WAIT,DO NOT BE AFRAID!YOU WILL LIVE IN THE WORLD TO COME,RIGHT HERE,FOR 1000 YEARS.
December 8th, 2008 at 3:33 am
Gun grabbing has begun, and in the most lucrative form!!!! Check it out
http://www.msnbc.msn.com/id/28099745/
December 8th, 2008 at 3:55 am
Most of the trouble that we are going through is the result of what happened 20 years ago through our traitorous and evil Congress and President passing the NAFTA AND GATT LEGISLATION!! Now our good jobs are being shipped overseas and we have been deindustrialized by the new world antichrist lucifer order!! Now we are doomed until we expose these evil monsters and let the American people know of their shakaneries and their luciferic takeover of the whole planet!!
AND THATS WHY IT IS TIME FOR ALL OF US TO CONTINUE TO FIGHT THE FORCES OF EVIL BY WORSHIPPING THE ONLY ONE THAT WILL ULTIMATELY DEFEAT THEM!! And have them weeping and wailing in the bowels of the GREAT LAKE OF FIRE AND BRIMSTONE; AS THEY WILL PAY A GREAT PRICE FOR THE GENOCIDES AND THE DESTRUCTION OF THE WHOLE WORLD.
As their beast chipped antichrist globalist government will enslave billions!! UNTIL THE GREAT GOD OF HEAVEN CALLS TIME AND BRING EVERYBODY THAT HAS EVER BEEN BORN TO HIS GREAT WHITE THRONE JUDGMENT!! And those of us who know Jesus as our Lord and Saviour will be richly rewarded while those of us who rejected Him will be in the great lake of fire and brimstone with the new world order antichrist and his minions and puppets!! As they and lucifer and his fallen angels will be all screaming and yelling together in the greatest agonies imaginable!!
December 8th, 2008 at 9:03 am
meet me in tha middle of new york on new years to celebrate the destruction of it all
December 8th, 2008 at 12:38 pm
Bust a cap in his ass and make soilent green.
December 8th, 2008 at 3:44 pm
it is time to storm Frankenstein’s castle and kill the undead beast……who knows what kind of monsterous creations they’re cooking up in that castle……..burn the castle…burn…burn…burn