The New Age of 'Elites', 'Robber Barons' and 'Social Darwinists'

by Len Hart, The Existentialist Cowboy

Darwinism is correct. Social Darwinism is utter bunkum. Not surprisingly, the American right-wing despises Darwinism but, inexplicably, embraces Social Darwinism with messianic ferver.

Social Darwinism is at the very root of an impending economic collapse but it won't be the best or brightest who emerge unscathed on the other side! Social Darwinism is the survival of the most ruthless. Real Darwinism is reviled because it disproves the lies the rich tell themselves to help them sleep at night.

The right wing benefits when issues are obscured and when enough dust is kicked up by "intelligent design" to obscure the real issues and various strawmen to boot.

Simply, Social Darwinism does not follow from "Darwinism" and, worse, it attributes to Darwin positions he never took. The term "survival of the fittest" was never used by Darwin. It has been variously attributed, but Hofstadter traces the phrase to 19th Century American robber barons, rail road men making fortunes connecting one coast with another.

Railroad executive Chauncy Depew asserted that the guests of the great dinners and public banquets of New York City represented the survival of the fittest of all who came in search of fortune. They were the ones with superior abilities. Likewise railroad magnate James J. Hill defended the railroad companies by saying their fortunes were determined according to the law of survival of the fittest.

—Hofstadter, Richard; 1959; Social Darwinism in American Thought, Braziller; New York.

These were most certainly the 'robber barons' who wished to be photographed wearing laurel wreaths, pretending to be emperors.

Elsewhere, the term is attributed to Herbert Spencer who inspired a generation of radicalized, latter-day robber barons. Few of them evinced the "...quality of mercy" so immortalized with but a few words by Shakespeare --'The quality of mercy is not strain'd, It droppeth as the gentle rain from heaven". By contrast ...

[Herbert] Spencer said that diseases "are among the penalties Nature has attached to ignorance and imbecility, and should not, therefore, be tampered with." He even faulted private organizations like the National Society for the Prevention of Cruelty to Children because they encouraged legislation.

—Social Darwinism and American Laissez-faire Capitalism

A fallacious corollary to "Social Darwinism" is often phrased this way: the rich are rich because they are better, work harder and are more intelligent. George W. Bush put it more crudely: “The poor are poor because they are lazy!” So --why was Bush Jr not poor?

In the same vein, the conservative economist Joseph A. Schumpeter likened recessions to a "cold douche". One wonders: who is "douched" and how? More importantly: who decides who gets 'douched'? Who decided that New Orleans would be left to its fate and the goons of Blackwater?

Currently, the nation faces economic calamity. However fallaciously, you can be sure that the right wing will not only benefit from the misfortunes of millions, they will try to figure out a way to blame them. It's the right wing way. But it's wrong!

Spencer believed that because society was evolving, government intervention ought to be minimal in social and political life. It didn't matter to Spencer that government is but a function, indeed, a creation of society and responsible to it. Seen in that light, efforts by privilege to blame the poor for their own rapacious and often dishonest or incompetent behaviors are absurd. Nevertheless, American capitalism remains greatly influenced by Spencer. The 'model' is still found in textbooks for Economics 101. It describes an ideal of American capitalism --“rational man” making rational decisions in a free and --presumably --rational market. But, in practice, economic decisions may or may not be rational and the free market exists only hypothetically. The market has been anything but rational.

Because the 'theories' of Spencer and, earlier, Adam Smith, often stress the 'practical', it is forgotten that Spencer and Smith were, themselves, 'theorists'. Every model we make of the world of sense experience is 'theoretical' by definition. The word "theory" is either misunderstood by the right wing or deliberately perverted for the propaganda value.

The word 'theory' is wrongly used as a pejorative. The right wing is inconsistent. 'Theories' from Spencer and, more recently, Milton Friedman or Arthur Laffer are are conveniently ignored or praised while 'theories' from everyone else are 'mere theory'. Last time I checked, 'right wing theories' were still 'theories' though most often and in reality they are simply frauds, lies, scams and 'white collar heists'.

Having waged war on the word "theory", the right wing likes to couple it with another word similarly victimized by right wing propaganda. That word is "conspiracy" --a perfectly good word, in fact, a legal term about which there is a venerable body of case law, thousands of SCOTUS decisions and some 400 years of common law. See: Findlaw or Cornell University Law Library online. Given techniques perfected by Herr Goebbels for Adolph Hitler, the combination of "conspiracy" and "theory" is lethal. The loss of these words to an adult vocabulary cripples the thought process itself, indeed, intellectual endeavor of any sort.

It must be noted that every great scientist was or is a theorist. Einstein was a "theorist". So was Newton, so too Darwin. So, too, Watson and Crick. Too much is made of 'right' and 'wrong'. It is a mistake to conclude, for example, that Einstein 'replaced' Newton. In fact, Einstein rests upon Newton's shoulders. Einstein is Newton from another angle. Einstein may be thought of as the hypothesis that Newton himself refused to make. [See: The Man Who Changed the Universe] Einstein does not refute Newton, he enlarges upon both Newton and Galileo. Galileo's equations describing the acceleration of falling bodies describes the very curvature of space-time.

Einstein has been confirmed no more times than Darwin; Newton is close enough for mundane applications or "government work" and Einstein will one day help us navigate the galaxy. Significantly, neither "theory" has been challenged in court —though both theories may very well be replaced one day by a "theory of everything", a TOE.

Only theories not liked by the right wing wind up in court, an absurd place to settle questions of science in any case. Law courts are inadequate to decide questions better resolved by observation and experiment, not rhetoric or case law. See: Darrow, Darwin & Dayton, the video at the end of this article.

There is a political agenda and a constituency behind the campaign of attacks on Darwinism. This constituency supports Intelligent Design for the same reasons the great rail road robber barons found support in the work of Herbert Spencer. The continued economic superiority of an entire class depends upon the widespread public acceptance of religious and/or ideological views which justify the existence of 'superior status'. Hitler, likewise, found in pseudo-science and mythology much justification for his anti-semitic crusades, his campaign of genocides, his wars of naked aggression.

Theories are often never of a final form —nor should they be! Unlike ideology, real science is self-correcting as new facts emerge from research. Darwin's theories were not only confirmed by Mendel, they accommodated Mendel which, in turn, strengthened Darwin. The science of genetics and the discovery of "mutations" confirm Darwin beyond any reasonable doubt. Every cowboy knows the truth of Darwin if he's never heard of him: "Never kill a slow roach; you just improve the breed!" As succinct a description of natural selection as I've ever heard. Likewise, every farmer who has bred for specific traits knows the truth of Darwin.

Future discoveries, like those of Mendel, may modify our views of Darwin, but will not discount them. Our view of Einstein is already modified but he is confirmed in many ways, notably at Alamogordo, Hiroshima, and Nagasaki. Light, indeed, bends around stars and other 'gravity lenses', time slows at near light speeds, space-time is a four dimensional continuum. More to the point, no one has ever sued because Einstein's theories were odds with a particular dogma or a political agenda. The right wing's disingenuous position is analogous to that of the Pope who forced Galileo to recant. I was critical of Ron Paul because his economic thinking was stuck in the 19th Century. The right wing generally, however, is stuck in the 17th.

It is certain that no future discovery will confirm "intelligent design", meaningless word play beyond any confirmation of any kind! Theories explain "facts" but facts can often confirm good theories as "fact”, just as facts have tended to confirm both Darwin and Einstein. By definition, doggerel is beyond confirmation of any kind. A.J. Ayer defined 'meaning' itself as that property of a 'sentence' that makes it subject to empirical confirmation. The theoretical core of ID is not meaningful and most certainly not of a type that would have been recognized by the philosophers upon whom Western Civilization is based.

Intelligent design is of a religious nature and people have a right to believe it. Treating Intelligent design as science is dishonest. As science, ID raises more questions than it explains. Most obviously: who designed the designer? ID assumes a designer to 'explain' creation but cites 'creation' to prove the existence of a designer. This is the classic circulus en probando fallacy.

People are free to believe fallacies, but they must not be free to impose them upon other people —especially at tax payer expense! A fact, for example, is the equation describing the acceleration of falling objects; examples of theory are both the Newtonian and the Einsteinian view of "gravitation" —seen differently by both. The entire science of genetics confirms Darwin who, interestingly, did not have the benefit of Mendel's research when he wrote Origin of the Species and the The Descent of Man. It was Mendel's research that described the very mechanism by which Darwin’s “traits” are passed on to succeeding generations. Accurate predictions are, in themselves, evidence in support of theories. [See: Evolution in Action, Julian Huxley]

Critics of Darwin have said that no one has yet produced an entirely new specie by selection. But they have indeed done just that! Consider wheat! Wheat does not grow in the wild. Related to ancient grasses, wheat is clearly the result of an ancient application of "artificial selection." Had wheat evolved naturally, it would be found growing wild like prairie grass. But it didn't and isn't.

Social Darwinism has harmed mankind. It rationalizes and justifies the perpetual and deliberate impoverishment of large segments of our society. The GOP will support this as a matter of policy so long as someone like Ronald Reagan can, nevertheless, make them "feel good about themselves". It is bad enough that this callous disregard for human life is fallaciously and insidiously associated with Darwin. That it is also a bald-face lie, a misstatement of Darwin, is unconscionable. We have thus reduced the philosophical basis for the American right wing to a single line from one of the world's great writers, Charles Dickens, whose character, Scrooge, epitomizes the American right wing

"Are there no workhouses? Are there no prisons...then let them die and decrease the surplus population."

—Scrooge, A Christmas Carol

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Living Standards Declining in America

by Len Hart, The Existentialist Cowboy

The US used to boast the highest standard of living in the world. Those days are long past. Today --the US is among the most inequitable nations on earth where also is  found those nations enduring the very worst standards of living. The US --once number one --is not even in the top ten.

According the ranking, the country with the best living conditions is the Scandinavian country of Norway. Helped by a relatively small population of only five million people, combined with an abundance of energy resources such as oil and natural gas, the people of Norway also live in one of the most democratic countries in the world. Further contributing to Norway holding the top ranking in the report has been the ability of the socialist government to continue to provide the generous social benefits the government provides due in large part from its massive sovereign wealth fund, which is the second largest in the world at approximately 330 billion dollars.

--The richest country in the world does not have the highest living standards

About the current crisis begun in the Bush years --some have said that the stiumli were/are 'too small'. The real problem is that the wrong people got the 'stimuli'. Those getting stimuli were the very banksters who created this mess to begin with! Much of the 'stimuli' wound up in offshore tax havens where may be found much US 'wealth'! Much (if not all) of the 'stimuli' never stimulated anything but the greed. Is there any evidence that the 'stimuli' created a single job? Were any industries in any way 'stimulated'? Were any 'stimuli' given those who might have used the money to get out of poverty, buy a home or get an education?

'Trickle down' stimuli did not work because 'trickle down theory' is bullshit!

Wealth nor 'stimuli' trickle down! Wealth did not trickle down for Ronald Reagan, whose tax cuts began the current trend, and wealth has not trickled-down nor stimulated a recovery. Alas! Nothing is learned from the lessons of history. The lesson to be learned from the Ronald Reagan debacle, the sad effects of which we still live with, is that 'stimuli' are mere windfalls for elites and, in fact, began the trend in which the wealthy got richer and the those just getting by fell off the bottom rung.

Now --this is not a hit job on Obama. The current situation is the result of trends begun with the ascension of Ronald Reagan to the White House. It was Reagan's tax cut, benefiting only the upper quintile, which resulted in the long term trend in which just one percent of the total US population now owns more than some 95 percent of the rest of us combined. Only coincidence theorists believe that it is only coincidental that those nation's having the highest living standards are, likewise, those nations boasting the more egalitarian societies.

But nothing will change in America, however, until attitudes are changed. Tragically, attitudes change slowly. A significant change may require a major depression, perhaps a generation or two before the reality of it all seeps in.

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The Inevitable Collapse of the Dollar

by Len Hart, The Existentialist Cowboy

Americans live beyond their means, Asia finances it and China props up the buck so that the US can buy Chinese made stuff at Wal-Mart. Eventually the Asians/Europeans will stop financing the USA, China will pull the plug on the buck and the bubble will burst.

The CIA's World Fact Book lists the US at the very bottom of a list with the world's largest negative Current Account Balance. China, which pegs the Yuan to the dollar, is at the top with the world's largest positive Current Account Balance.

If the GOP had been correct, US exports should have risen! The 'balance of trade deficit' i.e, the NEGATIVE Current Account Balance would have been reduced! If the GOP had been correct, the US could have paid off huge amounts of national debt run up in incompetent and dishonest GOP regimes. The US might have survived decades of conservative budgets which forced the US to borrow from other countries. But --not surprisingly --things have not worked out as the GOP would have you believe.

Many economists, myself included, believe that China’s asset-buying spree helped inflate the housing bubble, setting the stage for the global financial crisis. But China’s insistence on keeping the yuan/dollar rate fixed, even when the dollar declines, may be doing even more harm now.

Although there has been a lot of doomsaying about the falling dollar, that decline is actually both natural and desirable. America needs a weaker dollar to help reduce its trade deficit, and it’s getting that weaker dollar as nervous investors, who flocked into the presumed safety of U.S. debt at the peak of the crisis, have started putting their money to work elsewhere. But China has been keeping its currency pegged to the dollar — which means that a country with a huge trade surplus and a rapidly recovering economy, a country whose currency should be rising in value, is in effect engineering a large devaluation instead. --Palin vs Krugman On The Dollar -- Who Is Right?

It was hoped that by taking the dollar off the gold standard, US products would enjoy greater sales abroad. But like 'trickle down theory', it just has not worked out as planned. The CIA's World Fact Book proves it.

The enormous scale of foreign borrowing and money creation necessary to finance Washington’s wars are sending the dollar to historic lows. The dollar has even experienced large declines relative to currencies of third world countries such as Botswana and Brazil. The decline in the dollar’s value reduces the purchasing power of Americans’ already declining incomes.

Despite the lowest level of housing starts in 64 years, the US housing market is flooded with unsold homes, and financial institutions have a huge and rising inventory of foreclosed homes not yet on the market.

Industrial production has collapsed to the level of 1999, wiping out a decade of growth in industrial output.

--Paul Craig Roberts, The US as Failed State

If the US is a 'failed state', it is because it has been impoverished by at least two trends: 1) the transfer of US wealth upward to just one percent of the US population which now owns more than 95 percent of the rest of the nation combined; 2) the decline of the U.S. dollar, a trend begun when Richard Nixon eschewed the Bretton-Woods agreement.

Reducing the chances that we will weather this crisis are US wars of aggression which benefit only the defense contractors. Wars, in fact, reduce the GDP, destroy jobs, reduce productivity, and increase the trade deficit! If wars are so 'bad' for the economy, then how are they sold so easily? Why are they 'sold' at all? The quick response: they are sold with focus group tested bullshit!

There's a 'living' in killing, we are told! It's a lie -- snake oil for idiots and rank and file GOP. That wars are good for the economy is just a bald-faced lie cooked up by the defense lobby for whom killing IS a living but only for the shrinking one percent who benefit: the Military/Industrial complex.
Fact is war is most often disastrous for the economy.

In fact, most models show that military spending diverts resources from productive uses, such as consumption and investment, and ultimately slows economic growth and reduces employment. In this way, military spending is comparable in most models to any other form of government spending, such as spending on public goods or improving the environment.

This paper shows the projections of the impact of an increase in annual military spending equal to 1 percent of GDP (approximately the actual increase in spending compared with the pre-war budget) of the Global Insight macroeconomic model (see Appendix). The Global Insight model was selected for this analysis because it is a commonly used and widely respected model.1 Other models will show somewhat different projections, but it is unlikely that the direction of the long-term impact on any of the key variables will be different. In fact, because of the structure of the Global Insights model, it likely understates the negative impact of military spending relative to other models.

--The Economic Impact of the Iraq War and Higher Military Spending;

At the link (a PDF file) look for Table 1 which shows the key differences in projections, at five year intervals, between the baseline model and the simulation assuming higher levels of defense spending.

The decline in GDP projected for the twentieth year in the high military spending scenario is $42.1 billion. This corresponds to a projected loss of 668,100 jobs. Inflation is projected to be 0.7 percentage points higher in the high military spending scenario, with the interest rate on the 10-year Treasury note 1.1 percentage points higher than in the baseline scenario. The higher interest rate is associated with a reduction in industrial production of 1.8 percent compared with the baseline scenario. Car and truck sales are projected to be 731,400 in the high military spending scenario compared to the baseline scenario. Residential investment is projected to be 3.5 percent lower, which corresponds to 38,500 fewer housing starts and a reduction of 286,500 in the number of existing homes sold.

--The Economic Impact of the Iraq War and Higher Military Spending>

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Michael Moore: How 'Banksters' Bleed America

by Len Hart, The Existentialist Cowboy

I have stats that prove just one percent of the US population owns more than 95 percent of the rest of us combined. We are supposed to believe that's just an accident! It was, in fact, a deliberate transfer of wealth to those who benefit from US largesse to the US wealthy, members of the Military/Industrial complex, and, as Michael Moore dramatically demonstrates --a gang of 'banksters' who may have manufactured the recent 'financial crisis'!

Certainly --at the end of this 'crisis', only the 'banksters' will have benefited. Some already have! Everyone else wil be poorer if not poverty stricken. Bluntly --I am not all that excited about the restoration of the 'economic health' of the parasites who have leached upon the labors of those who create real wealth: workers!

It was written recently that Wall Street types were 'mocking' us, 'us' being the people of the US. Well, of course, Wall St mocks us. They're alright! They made out like the bandits they are in fact. Write this down: 1) Rich folk, bankers and elites LOVE recessions; they start them by 'taking their profits' i.e, dumping their holdings and depressing markets. 2) They short sell all the way down. 3) Then, they pick up the bargains when you are forced to sell or have already declared bankrupcy.

The banksters can do this because they control the markets.

Michael Moore 'Shakesdown' the Robber Barons

Clearly, the REAL cause of the economic collapse is the precipitous decline of US productivity over a period of some 30 years. The tell-tale symptom of this decline has been the fall of the dollar since Richard Nixon abandoned the 'gold standard' for the obvious reason that a run on the buck would have emptied Ft. Knox. Given a few ups and downs, the dollar has declined along with purchasing power, wages and living standards since that time.

The truth of my assertions can be found in the CIA's own 'World Fact Book' which lists China at the top of the list with the World's LARGEST POSITIVE 'current account balance'; the US is on bottom with the world's largest NEGATIVE current account balance, formerly known as the 'balance of trade' deficit! The difference between China's positive account and the US's negative account is largely the monies you might have made had not the GOP betrayed the American middle and lowers classes even as it enriched an increasingly tiny, ruling elite!

But it’s not a simple case of flourishing banks versus ailing workers: banks that are actually in the business of lending, as opposed to trading, are still in trouble. Most notably, Citigroup and Bank of America, which silenced talk of nationalization earlier this year by claiming that they had returned to profitability, are now — you guessed it — back to reporting losses.

Ask the people at Goldman, and they’ll tell you that it’s nobody’s business but their own how much they earn. But as one critic recently put it: “There is no financial institution that exists today that is not the direct or indirect beneficiary of trillions of dollars of taxpayer support for the financial system.” Indeed: Goldman has made a lot of money in its trading operations, but it was only able to stay in that game thanks to policies that put vast amounts of public money at risk, from the bailout of A.I.G. to the guarantees extended to many of Goldman’s bonds.

So who was this thundering bank critic? None other than Lawrence Summers, the Obama administration’s chief economist — and one of the architects of the administration’s bank policy, which up until now has been to go easy on financial institutions and hope that they mend themselves.

Why the change in tone? Administration officials are furious at the way the financial industry, just months after receiving a gigantic taxpayer bailout, is lobbying fiercely against serious reform. But you have to wonder what they expected to happen. They followed a softly, softly policy, providing aid with few strings, back when all of Wall Street was on the ropes; this left them with very little leverage over firms like Goldman that are now, once again, making a lot of money.

--Paul Krugman, The Banks are no Alright

The US is now a COW to be milked by 'banksters' at home and the Chinese ruling elite abroad. It was the treacherous, if not treasonous, activities of Bush, Nixon, Reagan and, most recently, Bush JR, who brought the world's great superpower to its knees!

It was Bush Jr who laid the groundwork for Nixon's famous trip China back in the seventies. Today, China props up a worthless dollar so that it can continue to sell US consumers --sheeple --products that were once produced by US industries, US businesses who employed a prosperous US working class that, bluntly, no longer exists. Name a single heavy industry in which the US leads the world (excluding military hardware). Secondly, the US dollar is worthless were it not propped up by China who is just trying to save their own asses by doing so.

Kudos to both Democracy Now and Michael Moore. Beginning with the 1989 classic Roger & Me, the Academy Award-winning director Michael Moore says his films come back to a central core concern: the economic system we have is unfair, unjust and undemocratic.

With his new film, Capitalism: A Love Story, Moore tackles the financial system and the interchanging circles of Washington politicians and corporate managers that run it. Moore says 'I thought I'd cut to the chase and propose we deal with this economic system and restructure it in a way that benefits people and not the wealthiest one percent.'

I agree! A 'recovery' in which wealth merely resumes its flow upward to just one percent of the population is just a band-aid on the pulmonary artery. If the flow upward is not stopped, the ultimate collapse of the US economy will make the Great Depression look like a Baptist picnic.

Also see:

• A Spiritual Mind Movie
• How the US Became a Vassal State of China
  
• Terrorism is Worse Under GOP Regimes
  
• The US Army Document That Proves the US is the World's Number One Sponsor of World Terrorism
• Dissecting the Scrambled Brains of the GOP
  
• Why the CIA is the World's Number One Terrorist Organization
  [w/LINKS]
• Why the CIA is the World's Number One Terrorist Organization [PDF]
• How the GOP Pays Off its 'Base' of Elites
  

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Hooray! The Surge is Working…Again

Nobody ever went broke underestimating the intelligence of the American public.

-H. L. Mencken

The previously discredited CNBC ace shill Jim 'Mad Money' Cramer has now become the point man for the regenerated Wall Street hydra, launching into a sleazy Rovian war with a real life economist who actually got it right in predicting the collapse Nouriel Roubini. Roubini, a man who was from the outset mocked, scorned and derisively labeled ‘Dr. Doom’ by the same type of four-flushing assholes who brought us Deep Capture has been declared public enemy number one and must be taken out with extreme prejudice for the big con to succeed. The oafish court jester of looter capitalism is now back with a vengeance as he according to this piece by Frank Rich of the damned liberal New York Times states in his recent piece Awake and Sing!:

“I am pronouncing the depression over!” declared CNBC’s irrepressible Jim Cramer on April 2. The next day the unemployment rate, already at the highest level in 25 years, jumped yet again, but Cramer wasn’t thinking about the 663,000 jobs that disappeared in March. He was thinking about the market. Mad money. Fast money. Big money. The Dow, after all, has rallied in the weeks since Timothy Geithner announced his bank bailout 2.0. Par-tay! On Wednesday, Cramer rang the opening bell at the New York Stock Exchange, in celebration of the 1,000th broadcast of his nightly stock-tip jamboree.

Roubini appropriately dismissed the man who acts like a baboon on crystal meth:

But "Cramer is a buffoon", the professor countered, on the sidelines of a conference in Canada on Tuesday night. "He was one of those who called six times in a row for this bear market rally to be a bull market rally and he got it wrong. After all this mess, and after Jon Stewart, he should just shut up because he has no shame."

The latest rally will fail when it becomes clear the economy is not improving and that several banks will be unable to pass the "stress tests" currently being carried out by the federal government, Mr Roubini says.

"Cramer keeps insulting me personally and saying a bunch of lies," he told an Associated Press reporter. "He is not a credible analyst."

Which of course didn't stop the NYT from piling on Roubini in a Wednesday Op-Ed column by that unbiased source of wisdom William D. Cohan (a contributing editor for Fortune Magazine, the rag that featured a fawning hagiography back in the Depression years about Benito Mussolini and his fine corporate fascist system) that in upholding the finest traditons of Judith Miller poo pooed the questioning of the miraculous profits of Goldman Sachs as so much conspiracy theory even though Hank Paulson obviously had at best a conflict of interest in presiding over the TARP plan to socialize the losses of the looters to keep the big casino going. Similar sliming has been done to Nobel Prize winning economist Paul Krugman in the insipid Newsweek cover story of a few weeks back by hack Evan Thomas who openly and brazenly admits his bias: "If you are of the establishment persuasion (and I am), reading Krugman makes you uneasy.". Stenographers for the elite like Thomas are largely responsible for this disaster to begin with in that they failed to perform their constitutional duties in ensuring that a free press would ensure that power be kept in check but he and his ilk are more interested in careerism, sucking up to the establishment and ensuring that they keep get invited to cocktail parties. No wonder that the regular corporate media is getting its ass kicked by the alternative media and the blogs, you just can't trust the bastards on anything anymore.

But I digress...

It is asinine and childish to think that Paulson, the former CEO of Goldman Sachs did not abuse his position as the Bush regime's Treasury Secretary to favorably rig the big bailout for the benefit of his cronies, just look at how the AIG bailout was used to further shore up the big Kahuna of the street and ensure that the revolving door between the temple of avarice and the White House remains fully operational. Seems like the blood sucking jackals at the real center of American political power, Goldman Sachs is sending it's legal army after a Florida based blogger named Mike Morgan for daring to set up a website Info, Comments, Opinions and Facts About Goldman Sachs. The white shoe Wall Street law firm Chadbourne & Parke has been set loose upon poor Mr. Morgan for his daring to question these criminal pigs and their ongoing assault on the American economy - you know it's bad when they don't outsource their wetwork to India but somehow the site which as the delightful url of http://www.goldmansachs666.com/ has really but a bug up the pasty white asses of the house of Paulson and Blankfein.

I would recommend that everyone take the time to not only check out Mr. Morgan's site but to back him in his David versus Goliath stand against the mother of all moneychangers in Goldman Sachs. Let the buffonish tea baggers take to the streets at the behest of the deranged shill Glenn Beck, Dick Armey, uber crackpot Richard Mellon Scaife and the Texas oil Nazi Koch Foundation (see Think Progress for the scoop on who is really sponsoring this phony white populist mayhem) but the real enemy of America sits in the ivory tower at 85 Broad Street in lower Manhattan and it's toxic tentacles extend directly into the highest realms of the new Obama administration. Putting Timothy Geithner and Larry Summers in charge of economic policy along with other dubious appointments (or in the case of real progressives non appointments) are an early indicator that the only change for Obama is going to be chump change. The hedge fund hyenas and derivatives alchemists and their pushers are going to have free reigh while an exponentially growing number of Americans are being rendered jobless, homeless and exiled to tent cities...hell, at least Reagan gave people surplus cheese.

In a remarkable interview on the PBS program Bill Moyers Journal former S & L regulator William K. Black gets right to the heart of things:

BILL MOYERS: Is it possible that these complex instruments were deliberately created so swindlers could exploit them?

WILLIAM K. BLACK: Oh, absolutely. This stuff, the exotic stuff that you're talking about was created out of things like liars' loans, that were known to be extraordinarily bad. And now it was getting triple-A ratings. Now a triple-A rating is supposed to mean there is zero credit risk. So you take something that not only has significant, it has crushing risk. That's why it's toxic. And you create this fiction that it has zero risk. That itself, of course, is a fraudulent exercise. And again, there was nobody looking, during the Bush years. So finally, only a year ago, we started to have a Congressional investigation of some of these rating agencies, and it's scandalous what came out. What we know now is that the rating agencies never looked at a single loan file. When they finally did look, after the markets had completely collapsed, they found, and I'm quoting Fitch, the smallest of the rating agencies, "the results were disconcerting, in that there was the appearance of fraud in nearly every file we examined."

BILL MOYERS: So if your assumption is correct, your evidence is sound, the bank, the lending company, created a fraud. And the ratings agency that is supposed to test the value of these assets knowingly entered into the fraud. Both parties are committing fraud by intention.

WILLIAM K. BLACK: Right, and the investment banker that — we call it pooling — puts together these bad mortgages, these liars' loans, and creates the toxic waste of these derivatives. All of them do that. And then they sell it to the world and the world just thinks because it has a triple-A rating it must actually be safe. Well, instead, there are 60 and 80 percent losses on these things, because of course they, in reality, are toxic waste.

BILL MOYERS: You're describing what Bernie Madoff did to a limited number of people. But you're saying it's systemic, a systemic Ponzi scheme.

WILLIAM K. BLACK: Oh, Bernie was a piker. He doesn't even get into the front ranks of a Ponzi scheme...

BILL MOYERS: But you're saying our system became a Ponzi scheme.

WILLIAM K. BLACK: Our system...

BILL MOYERS: Our financial system...

WILLIAM K. BLACK: Became a Ponzi scheme. Everybody was buying a pig in the poke. But they were buying a pig in the poke with a pretty pink ribbon, and the pink ribbon said, "Triple-A."

In a nutshell the system itself is rotten to the core and Geithner, Bernanke and the rest of Mr. Obama's A Team of the best and the brightest are just more of the same dirty rotten scoundrels who have destroyed the global economy and are now being allowed to finish the job. For Christ's sake, Obama is actually going out on television and pushing refinancing as if most people really qualify anyway for the simple reasons that (a) the banks aren't lending (b) their existing loans are well in excess of the property value in most cases...and (c) you can no longer instantly qualify for a 400,000 loan if you have no job and about a million a month are being jettisoned as the real economy continues the freefall. I mean Jesus Fucking Christ, is this guy a president or a pimp?

Selling the Sizzle: The recent attempts to manage perception in order to reflate the bubble and save the squadrons of corrupt paper dealers is a propaganda masterpiece unseen since the bloodshed and chaos of the Iraq war was flushed down the memory hole courtesy of the great General Petraeus and THE SURGE. What is now going on is every bit as dishonest and even more monstrous in that the large scale thieves who run the system are using their media and pocket politicians to further entrap Americans in the shackles of debt slavery from which they shall never be free as long as the failure of unregulated looter capitalism is not dealt with and the cancer cut out once and for all. Don't believe anything, it's all a big lie of Hitlerian proportions, a public relations stew of deception that Goebbels would be proud of and you just have to love that little bumper sticker slogan Green Shoots.

Do NOT, I repeat do NOT put one nickel into the markets because in the end you will be sorry. I am advising people to take this postponement of the looming collapse as an opportunity to shore up your personal positions. Do not spend a dime you don’t have to spend, take all of your money out of your 401k once it has been reflated and put it into real assets. Pay down debt, start learning about how to garden, hey our grandparents did it didn’t they? Stockpile non-perishable food, buy a Lifestraw (provided you can find one) because they are coming to privatize your water soon, buy guns and ammo and most importantly be suspicious of anything that the assclowns who run the corporate media try to sell you with their propaganda.

Obama, tagged as the pope of hope by one blogger is just another errand boy for the big banks. Pope of dopes is more like it , it took Clinton and Bush years to cheapen the presidency but Obama has done it in record time, sliming around with the likes of Jay Leno on the electronic crackpipe, taking pot shots at cripples, escalating the war in Afghanistan, reneging on boatloads of campaign promises and in the absolute nadir shilling for the banks in imploring people to refinance their overvalued McMansions and other cheaply constructed shitboxes.

The Obamanoids eat it up too, they are legion and tripping over themselves in falling in line to shill for the most despicable of the Obama administration policies, like the failure to order the Justice Department to arrest Karl Rove for flouting subpoenas, continuing the illegal wiretapping, escalating the war in Afghanistan and most odiously as all choosing to back the banksters in the gutting of the American economy. Sure, there are the little feely good cosmetic changes like stem cell research and relaxing restrictions on Cuba (both by the way make economic sense and if there is one thing to commend Obama on it is the lack of ideology exhibited early on, which in a way is also damnable in that it only supports the status quo) and that ridiculous ‘pirates’ thing which is about as phony as Reagan’s defeat of that industrialized military juggernaut Grenada.

One thing is for certain though, no matter how well that Surge II works it is only going to make the inevitable collapse that much worse when it does come. And those vicious shitheads who worship the unholy trinity of Limbaugh, Palin and Joe the Plumber will only become meaner and more better positioned to take advantage when it becomes apparent that the only change that has occured is a new coat of paint on the whorehouse that is American capitalism.

---

The 'Cowboy' on Facebook

Media Conglomerates, Mergers, Concentration of Ownership, Global Issues, Updated: January 02, 2009

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Usurious Bastards

by Ed Encho

The history of the last century shows, as we shall see later, that the advice given to governments by bankers, like the advice they gave to industrialists, was consistently good for bankers, but was often disastrous for governments, businessmen, and the people generally.

-Carroll Quigley

As the conventional wisdom goes, the stock market is predicated on trust and as a crusty old uncle of mine once said to a young and impressionable teenager with zero knowledge of the way that the world really worked: “trust me is just another two letter word that means the same as fuck you.” Old Uncle Harvey’s words of wisdom came home to roost on this Monday morning in America when the finance oligarchs were able to use their inside juice to pull off the grandest and most audacious heist yet in this season of sleazy swindles. Obama Treasury Secretary and Wall Street fixer Timothy Geithner delivered the bacon for the bankers, gave the crack ho stock market a wonderful and intoxicating fix that sent the Dow screaming up by nearly 7 percent in a matter of hours and locked in the losses for the great grandchildren of every poor schmuck with the misfortune to be living through this period of plunder and wealth consolidation.

In phase two of the ongoing SPLURGE (any similarity to the con-game called the surge that allowed us to become winners in Iraq is fully intentioned), on Tuesday night, our very own national Teflon coated bullshit salesman, President Barack Obama, the banker’s gofer and shill for the new generation began to sell it to the saps and a marvelous job he is doing. This man my friends is no new Roosevelt, he is the devil in disguise and he (as many progressives had warned) is in the bag for the establishment. What we really have is a by proxy continuation of the Clinton administration, of course Hillary was to have been the one but in the waning days of the ruinous Bush-Cheney neocon war on America it was just too tough to pimp another dynasty so the crooks who run the system found another pitchman.

I cannot possibly articulate the sense of disgust and betrayal that I am experiencing as I write this, it is very difficult to restrain my gag reflex and keep from vomiting on my keyboard because once again the scum wins again and Americans have been played for chumps. Nobel Prize winning economist Paul Krugman(another Nobel Prize winner Joseph Stiglitz decried its "perverse incentives”) and columnist for the damned liberal New York Times put it best in his Monday column Financial Policy Despair:

Over the weekend The Times and other newspapers reported leaked details about the Obama administration’s bank rescue plan, which is to be officially released this week. If the reports are correct, Tim Geithner, the Treasury secretary, has persuaded President Obama to recycle Bush administration policy — specifically, the “cash for trash” plan proposed, then abandoned, six months ago by then-Treasury Secretary Henry Paulson.

This is more than disappointing. In fact, it fills me with a sense of despair.

But the Geithner scheme would offer a one-way bet: if asset values go up, the investors profit, but if they go down, the investors can walk away from their debt. So this isn’t really about letting markets work. It’s just an indirect, disguised way to subsidize purchases of bad assets.

The likely cost to taxpayers aside, there’s something strange going on here. By my count, this is the third time Obama administration officials have floated a scheme that is essentially a rehash of the Paulson plan, each time adding a new set of bells and whistles and claiming that they’re doing something completely different. This is starting to look obsessive.

But the real problem with this plan is that it won’t work. Yes, troubled assets may be somewhat undervalued. But the fact is that financial executives literally bet their banks on the belief that there was no housing bubble, and the related belief that unprecedented levels of household debt were no problem. They lost that bet. And no amount of financial hocus-pocus — for that is what the Geithner plan amounts to — will change that fact.

You might say, why not try the plan and see what happens? One answer is that time is wasting: every month that we fail to come to grips with the economic crisis another 600,000 jobs are lost.

Even more important, however, is the way Mr. Obama is squandering his credibility. If this plan fails — as it almost surely will — it’s unlikely that he’ll be able to persuade Congress to come up with more funds to do what he should have done in the first place.

This isn’t likely to win Krugman any friends in the Obama White House, especially with a sleazy little political gangster like Rahm Emanuel who I predict will eventually make even the Great Satan Karl Rove look like an amateur running the show and protecting the interests of his investment banker buddies. While Barack Obama may be the friendly Fozzie Bear face of this latest hostile takeover of the White House the real example of how things are really done is in this incredible NYT piece from back in January:

Early this month, Barack Obama was meeting with the House speaker, Nancy Pelosi, and other lawmakers when Rahm Emanuel, his chief of staff, began nervously cracking a knuckle.

Mr. Obama then turned to complain to Mr. Emanuel about his noisy habit.
At which point, Mr. Emanuel held the offending knuckle up to Mr. Obama’s left ear and, like an annoying little brother, snapped off a few special cracks.

The venomous cobra that is Emanuel is of course Mr. Obama’s minder and handler, note that he was the first announced member of the new administration, the first of a reoccupation of Washington by Clintonistas. The promised change, at least to this point has been strictly cosmetic, the wars still continue, more troops are headed to Afghanistan, the graveyard of empires past, Gitmo is still open, the new administration is engaging in Clintonian language manipulation regarding ‘torture’ that invokes memories of “it depends on what the meaning of is is”, the military is getting ready to be sent to the Mexican border and there has been no serious discussion of reigning in the run amok police state and the Stasi style high tech domestic spying operations. Yep, change has come to America alright, just like “the check’s in the mail”, “this won’t hurt a bit”, “I love you” and “I promise not to come in your mouth”…and it was all wrapped up in a big bundle of stinking dogshit with a $ sign on it and parked on the doorsteps of Americans and set afire by the Geithner-Bernanke-Paulson triad with the unarguable message that you are either cops or little people. Webster Tarpley had a good one that I heard that saving the banks is like trying to save one of Count Dracula's victims by giving the blood transfusion to the victim through the vampire when the real remedy is to just pull him off and drive a stake through his heart.

Now that it has become apparent that Obama is just more of the same and like Bush has his own legions of cultlike devotees and apologists we can all just take Bobby Knight's advice that if rape is intevitable relax and enjoy it because really what choice do we really have? Before it even really started the revolution has been hijacked, progressives are still getting the shaft, the Employee Free Choice Act is going to be dead on arrival, there is NO antiwar movement if the media refuses to acknowledge that there is a fucking war and even the Ron Paul movement libertarians have been marginalized by the old fool's proclivity to ghettoize himself and keep showing up at Nazi bund meetings like CPAC and regularly appearing on FOX.

The oligarchy has it's shit together, this is their homefield, they own the refs and there is no replay booth. Welcome to chumpland, when a show like HBO's Real Time With Bill Maher features Keith Olbermann as a guest and they both mock the very real detention camps by conflating their existence with the weeping, at the edge of sanity fascist basket case Glenn Beck it's a done deal that the agents have seized control of all phones and the only way out of the matrix will be in a body bag.

Despite the rear guard cover that the corporate media is giving to the ongoing looting spree by laying poison bait for maxed-out marks and rubes to get back into the casino and start spending their money at usurious interest rates by rapacious banks that are fast approaching the same sort of deal that you can score at pay day lenders there are those who really get it, too bad that their observations are drowned out by Dancing With the Stars, American Idol and the rest of the standard bread and circuses that placate the masses of asses. Some very excellent work has been done for those with an inclination for the truth by alternative media types and dissenting with the official state line experts who have been consistently right about this catastrophic clusterfuck from the outset.
The gold standard in calling out the great robbery and financier's coup d'etat has to go to Matt Taibbi whose piece in the new issue of Rolling Stone magazine entitled The Big Takeover is a must read. I excerpt a few pieces of this long but brilliant expose:

It's over — we're officially, royally fucked. No empire can survive being rendered a permanent laughingstock, which is what happened as of a few weeks ago, when the buffoons who have been running things in this country finally went one step too far. It happened when Treasury Secretary Timothy Geithner was forced to admit that he was once again going to have to stuff billions of taxpayer dollars into a dying insurance giant called AIG, itself a profound symbol of our national decline — a corporation that got rich insuring the concrete and steel of American industry in the country's heyday, only to destroy itself chasing phantom fortunes at the Wall Street card tables, like a dissolute nobleman gambling away the family estate in the waning days of the British Empire.

And

People are pissed off about this financial crisis, and about this bailout, but they're not pissed off enough. The reality is that the worldwide economic meltdown and the bailout that followed were together a kind of revolution, a coup d'état. They cemented and formalized a political trend that has been snowballing for decades: the gradual takeover of the government by a small class of connected insiders, who used money to control elections, buy influence and systematically weaken financial regulations.
The crisis was the coup de grâce: Given virtually free rein over the economy, these same insiders first wrecked the financial world, then cunningly granted themselves nearly unlimited emergency powers to clean up their own mess. And so the gambling-addict leaders of companies like AIG end up not penniless and in jail, but with an Alien-style death grip on the Treasury and the Federal Reserve — "our partners in the government," as Liddy put it with a shockingly casual matter-of-factness after the most recent bailout.
The mistake most people make in looking at the financial crisis is thinking of it in terms of money, a habit that might lead you to look at the unfolding mess as a huge bonus-killing downer for the Wall Street class. But if you look at it in purely Machiavellian terms, what you see is a colossal power grab that threatens to turn the federal government into a kind of giant Enron — a huge, impenetrable black box filled with self-dealing insiders whose scheme is the securing of individual profits at the expense of an ocean of unwitting involuntary shareholders, previously known as taxpayers.

And

There are plenty of people who have noticed, in recent years, that when they lost their homes to foreclosure or were forced into bankruptcy because of crippling credit-card debt, no one in the government was there to rescue them. But when Goldman Sachs — a company whose average employee still made more than $350,000 last year, even in the midst of a depression — was suddenly faced with the possibility of losing money on the unregulated insurance deals it bought for its insane housing bets, the government was there in an instant to patch the hole. That's the essence of the bailout: rich bankers bailing out rich bankers, using the taxpayers' credit card. 

The people who have spent their lives cloistered in this Wall Street community aren't much for sharing information with the great unwashed. Because all of this shit is complicated, because most of us mortals don't know what the hell LIBOR is or how a REIT works or how to use the word "zero coupon bond" in a sentence without sounding stupid — well, then, the people who do speak this idiotic language cannot under any circumstances be bothered to explain it to us and instead spend a lot of time rolling their eyes and asking us to trust them.

That roll of the eyes is a key part of the psychology of Paulsonism. The state is now being asked not just to call off its regulators or give tax breaks or funnel a few contracts to connected companies; it is intervening directly in the economy, for the sole purpose of preserving the influence of the megafirms. In essence, Paulson used the bailout to transform the government into a giant bureaucracy of entitled assholedom, one that would socialize "toxic" risks but keep both the profits and the management of the bailed-out firms in private hands. Moreover, this whole process would be done in secret, away from the prying eyes of NASCAR dads, broke-ass liberals who read translations of French novels, subprime mortgage holders and other such financial losers.

In addition to Taibbi's magnum opus on the greedy pigs who have destroyed the economy I would also recommend Thomas Georghegan's treatise on the legalization of usury in the latest Harper's entitled Infinite Debt: How Unlimited Interest Rates Destroyed the Economy, the same April issue has Daniel Brook's article on the payday lending industry Usury Country, a piece in Washington Monthly by James K. Galbraith that calls bullshit on the 'the worst is over' folderol being foisted upon us by the high-rollers, the looters and the banksters where he speaks the forbidden heresy of No Return to Normal:

The most likely scenario, should the Geithner plan go through, is a combination of looting, fraud, and a renewed speculation in volatile commodity markets such as oil. Ultimately the losses fall on the public anyway, since deposits are largely insured. There is no chance that the banks will simply resume normal long-term lending. To whom would they lend? For what? Against what collateral? And if banks are recapitalized without changing their management, why should we expect them to change the behavior that caused the insolvency in the first place? 

The oddest thing about the Geithner program is its failure to act as though the financial crisis is a true crisis—an integrated, long-term economic threat—rather than merely a couple of related but temporary problems, one in banking and the other in jobs. In banking, the dominant metaphor is of plumbing: there is a blockage to be cleared. Take a plunger to the toxic assets, it is said, and credit conditions will return to normal. This, then, will make the recession essentially normal, validating the stimulus package. Solve these two problems, and the crisis will end. That’s the thinking.

But the plumbing metaphor is misleading. Credit is not a flow. It is not something that can be forced downstream by clearing a pipe. Credit is a contract. It requires a borrower as well as a lender, a customer as well as a bank. And the borrower must meet two conditions. One is creditworthiness, meaning a secure income and, usually, a house with equity in it. Asset prices therefore matter. With a chronic oversupply of houses, prices fall, collateral disappears, and even if borrowers are willing they can’t qualify for loans.

The other requirement is a willingness to borrow, motivated by what Keynes called the "animal spirits" of entrepreneurial enthusiasm. In a slump, such optimism is scarce. Even if people have collateral, they want the security of cash. And it is precisely because they want cash that they will not deplete their reserves by plunking down a payment on a new car.

The aforementioned pieces by Taibbi, Geoghegan and Brooks all merited appearances on Amy Goodman's Democracy Now the past three days but perhaps the greatest statement of all was made by former Reagan administration Assistant Treasury Secretary Paul Craig Roberts who in his latest column, Is the Bailout Plan Breeding a Bigger Crisis? is coming very close to actually endorsing - GASP - Socialism! Roberts mentions that ugly little story that flew below the radar that our number one creditor China is starting to make noises about dumping the dollar as the world reserve currency:

Rome eventually understood that its imperial frontiers exceeded its resources and pulled back. This realization has yet to dawn on Washington.

More budget savings could come from a different approach to the financial crisis. The entire question of bailing out private financial institutions needs rethinking. The probability is that the bailouts are not over. The commercial real estate defaults are yet to present themselves.

Would it be cheaper for government to buy the shares of the banks and AIG at the current low prices than to pour trillions of taxpayers’ dollars into them in an effort to drive up private share prices with public money? The Bush/Paulson bailout plan of approximately $800 billion has been followed a few months later by the Obama/Geithner stimulus-bailout plan of another approximately $800 billion. Together it adds to $1.6 trillion in new Treasury debt, much of which might have to be monetized.
Could this massive debt issue be avoided if the government took over the banks and netted out the losses between the constituent parts? A staid socialized financial sector run by civil servants is preferable to the gambling casino of greed-driven, innovative, unregulated capitalism operated by banksters who have caused crisis throughout the world.

Perhaps the Federal Reserve should be socialized as well. The notion of an independent, privately-owned Federal Reserve system was never more than a ruse to get a national bank into place. Once the central bank is part of the state-owned banking system, the government can create money without having to accumulate a massive public debt that saddles taxpayers’ and future budgets with hundreds of billions of dollars in annual interest payments.

Roberts has been ahead of the curve since his early realization that the Republican party had been taken over by drooling brownshirts in the early years of the Bush-Cheney nightmare and he consistently serves as a reminder of that bygone era when some conservatives actually had principles, ideas and a respect for intellectualism way back back before Joe the Plumber became the man.
The DOW was up 174 today, it's morning in America again, time to pull yerself up by those good ole star-spangled bootstraps, go shopping... but if you look around you will notice that gas prices are creeping up again too since speculation is back in vogue, it could crack 8000 tomorrow when Barack Obama goes to give a progress report (grovel) to his banker bosses.
But that's not important, hey, didja hear the one about the Michigan dude who just got 90 days for being caught with his dick in a car wash vacuum cleaner?

Move Along, Nothing to See Here...
_________________________________________________________________________________

Inviting the Sheep for Another Shearing

By Ed Encho

What do you get for pretending the danger's not real.
Meek and obedient you follow the leader
Down well trodden corridors into the valley of steel.
What a surprise!
A look of terminal shock in your eyes.
Now things are really what they seem.
No, this is no bad dream.

-Pink Floyd (sheep)

In the ongoing madness of an America in terminal decline, the great Surge II is now underway. This one has nothing to do with mass brainwashing that all is ell in Iraq and that we are indeed winning thanks to our shining medal festooned superstar quarterback otherwise known as General God (aka David Petraeus) to divert the flocks attention away from a doomed imperialist crusade. Nope, this one hits closer to home, it started last Monday with a sly piece of internal propaganda from Citigroup’s CEO Vikram Pandit having its best quarter since 2007 which triggered a sucker rally in the Wall Street casinos that dictate to the inhabitants of chumpland. The pocket media once again did their job, selling this latest call for the sheep to come and be sheared with all the effectiveness that they pimped the murderous lies of George W. Bush, Karl Rove and Dick Cheney. Things – ARE getting better you see, the gloom-gloomers, the glass is half-empty pessimists, the neurotic nervous nellies and the naysaying Eyores are all wrong, it’s a disease, in their heads, the economy is rocketing its way back to robustitude. The most incredible example of just how thoroughly corrupt that the corporatist media has become is the pernicious cover story of the latest edition of Newsweek magazine that has a picture of good ole Uncle Sam saying that he wants YOU to START SPENDING!... YOU need to INVEST in America – before it’s too late.

The Newsweek story, by Daniel Gross which inside is even more insidious in that it beats the reader over the head with STOP SAVING NOW! – in all caps and taking up the better part of page 27, page 26 is a picture of a squirrel (a cartoon representation of those greedy pigs who dare to save their own money rather than gamble in the Wall Street casinos who holding onto a backload of acorns has caused the branch of the tree to CRAK! Jesus fucking Christ, this is propaganda at its finest, even a cynic like me is astounded by the dastardly nature of this banker swill in one of the nation’s premier ‘news’ magazines.

A more sophisticated version of Mad Money Cramer, Gross goes on to say:

The hum of ambient noise in midtown Manhattan is several decibels lower than it was a year ago. Fewer black Town Cars idle outside the investment-bank offices on Park Avenue. The aisles of the flagship Saks Fifth Avenue are so quiet you'd think you were in a library. The restaurants and shops at Rockefeller Center are open as usual, but they seem oddly depopulated. Where are all the tourists and office workers, the hordes of junior analysts lining up in Starbucks?

Something less tangible is also absent: the spirit of caffeinated, heedless risk taking. For a generation, risk has been the adrenaline of the nation's economy, the substance that made us all—from the denizens of midtown Manhattan to the residents of Manhattan, Kans.—run a little faster and stay up a little later. Now, with the economy in its 16th month of recession and the markets scythed in half, it seems we've all either switched to decaf or simply lost the taste for risk.

And

As consumers hibernate and investors hoard cash, the economy is withering. This new age of thrift is understandable. But for a recovery to take hold, Americans will need to start taking risks again.

And

Saving cash and building up reserves is a necessary first step to recovery. But eventually the mountain of cash has to be put to work. Last week's sharp market rally was certainly a sign—however fleeting it may turn out to be—that investors are putting money to work again. Retail sales in February provided another hint that purse strings may be loosening. But there's much more work to be done. Ironically, post-bubble periods are frequently great times to start new ventures. The best time to start a dotcom wasn't in 1999 when the IPO market was raging, it was in 2002, when the price of everything associated with the business—office space, programming talent—had plummeted. When Allied Corp. in the late 1980s didn't want to pursue the development of consumer products based on global-positioning-satellite technology, Gary Burrell left, raised $4 million and formed Garmin, which today employs about 7,000 people.

Great solution, just trust Wall Street with that money, think long term, be patriotic even if the malefactors of great wealth do not and are more than happy to wallow in international troughs and then come back to shit on America. Gross, a highly-paid, high profile stooge is just playing his part in the ongoing relaunch project to save Wall Street looters and protect their plunder. We have seen this story already, Americans with dollar signs in their eyes and cash register bells going off in their heads like some bizarre real life Uncle Scrooge cartoon, duped into thinking that they can actually become rich and powerful themselves just like The Donald line up to be fleeced by the flim-flam men with the political juice and insider knowledge as they seek to cash out one more time. Perhaps a final time before the country impoldes inward upon itself. All aided and abetted by the media, the Wall Street cadre occupying Barack Obama's White House, guys like Lawrence Summers and the conniving little twit Tim Geithner whose announcement as the new treasury secretary was greeted by a 6.5 % spike in the DOW, the crack-ho economy got a mainline spike into the arm and knew that the paper pusher inside the administration would ensure them that the game would go on and on. In the end of course, all has been enabled by the bewildered herd of sheeple themselves, brainwashed from birth into the bastardized capitalist system that is already drooling over being able to suck the blood from their grandchildren on account of their greed, stupidity and folly.

As a counter to the mainstream drivel that Gross and Newsweek are peddling as pearls of infinite wisdom I counter with an excerpt from a piece from his month’s Harpers. Infinite Debt by Thomas Georghegan discusses the ruinous and usurious effects of the debt based economy and its victims The same ones that Gross and his fellow pocket media hacks are now trying to swindle out of whatever little they may now have in their piggy banks having been badly burned by the existing system that has beggared them and cast them out of jobs and homes in addition to destroying their pensions and 401k retirement plans. From the Harper's piece (which I will be addressing at length in my coming post Usurious Bastards):

What is history, really, but a turf war between manufacturing, labor and the banks? In the United States, we shrank manufacturing. We got rid of labor. Now it’s just the banks.

Which is why the middle class is shrinking. Basically, we’re all waiters now; we’re bowing and scraping and working for the banks. Look closely at any American, and it’s even odds that he or she, directly or indirectly, is somehow employed by the “financial services sector,” which covers insurance and real estate and financial instruments of any kind. As brokers, lawyers, loan collectors, loan consolidators, secretaries at big investment firms, chauffeurs of private limousines, or even the high-tech types who exist solely to service banks — all of us, millions of us, are part of it, living off it in some way, as three generations ago we lived off manufacturers.

The game is rigged people, and the hit job done on America by the rotten fuckers on Wall Street and their institutionalized system of debt slavery is all that is left, and STILL the banksters on the street and the gangsters in D.C. are doint everything that they can to continue to bleed the silly and naive masses of asses by doing all that is possible to get the debt/consumerism bubble reinflated. In a rare piece of sanity that slipped by the censors and minders of the memory hole a Reuters story, More debt: a curious solution to a credit crisis dared to utter the heresy that:

Indeed, a huge part of the Treasury's economic rescue plan is based on reviving securitization. This is the process by which everything from real estate and auto loans to credit cards and student debt gets repackaged into bonds and is then sold on to investors in a secondary market.

This worked wonders during the boom of the past couple of decades, leading to rapid capital formation that underpinned a huge rise in lending. But when the music stopped, many investors were left looking for an empty chair as these products of financial "innovation" proved ruinously difficult to value.

Given this history, Wray, also a senior fellow at the Levy Economics Institute, said asset-backed bonds are the problem, not the solution. "We need to kill off securitization and go back to banking -- loan officers and underwriting."

Wall Street is a con game, it depends on confidence in order for the moneychangers to book their fees and peddle their bad paper, given the Surge II it’s apparent that the entrenched elitists are determined to wage war against any sort of change that Obama may have in mind. Given the first two months of the administration and while being mindful that it’s still early, despite some initial guarded optimism I am becoming more and more certain that nothing is changing except the management of the whorehouse. I now find myself in agreement more or less with those progressives who were wary of Obama from the onset, with his government packed with recycled Clinton era swine, the usual assortment of Wall Street and Federal Reserve grifters running fiscal policy and his still stinging kick in the balls from the Israel lobby over the Freeman resignation it only looks like more of the same shit but in a different package. Helicopter Ben's announcement that the Fed would now be buying American debt to save their fucking system, the dollar immediately took a shit and with the coming wave of hyperinflationi as a result of this latest idiocy this story should send a cold chill up the spine of all who are onto what has really been going on as America has been gutted: The US is Facing a Weimar Moment. Read it if you dare.

As Orwell once wrote in the literary classic Animal Farm:

“All animals are equal, some are just more equal than others”

Republican ‘free marketers’ are unscrupulous and pathologically greedy, they also delight in the trafficking of human misery for profit. It makes them feel empowered. They are like the S.O.B. sitting at the Monopoly table who is not content in owning Boardwalk and Park Place as well as all of the utilities and railroads but also buys Baltic and Mediterranean and loads them up with houses and hotels then squeals with childlike glee when some poor bastard lands on one of them and is driven into bankruptcy. The game of Monopoly is very relevant to life itself in laissez-faire hell, where the rich are able to accumulate property on a rapidly escalating scale and as wealth rapidly increases the less fortunate are driven into bankruptcy with the winner being the monopolists.

This is Laissez-Faire ‘free market’ Capitalism in its ultimate form, the ‘free market’ is only truly advantageous and 'free' to those who have the most cash and assets and they are gathered at the expense of the poor who eventually are the losers but hey, that’s what it’s all about isn’t it in the Wall Street Journal's perfect world. Now that the rape of the system has nearly been completed how long is it going to take until there is a realization of just how thoroughly the free market fanatics have cannibalized the country in pursuit of profit? And the denial needs to stop immediately, the existing system has already failed and failed miserably.

Capitalism is eating itself. Like a python slowly trying to digest it’s own tail, the economic master plan, the Shock Doctrine has come home now and the sheep are being prepped for yet another shearing, soon they will served up with a side of mint jelly.

It is important to understand that a distinction needs to be made when it comes to capitalism between that which is regulated and the ‘free market’ aka Lassez Faire strain that the road to hell is paved with. The end result of unregulated capitalism is monopoly of the most extreme sort as well as the redistribution of wealth to those at the top of the class system, I wonder why nobody has ever dubbed this as ‘trickle up economics’ which is of course exactly what it is. One of history’s most important and enduring lessons is that hundreds of thousands must toil in the muck in order to allow one rotten, greedy son of a bitch to have his face displayed on a sphinx. The American middle class are the ones who are forced by their Wall Street pharaohs to build the bricks for the monuments to the super wealthy under increasingly hostile conditions in increasingly dangerous work environments with an increasingly smaller amount of straw.

The establishment after all has a vested interest in the existence of a huge and desperate underclass. The accompanying crime and urban rot helps to breed the necessary fear that justifies increased police powers and surveillance so as to keep the interests of the elite safe and sound while they sleep behind the walls of their gated communities each night. We were swindled by the free market pimps and deregulation pushers, all that it all did was create conditions for monopolies and trusts and consumer gouging. Take an honest look at yourself, are you truly better off today than you were yesterday? Or the day before? Or five years ago?

Well understand one thing.....today is as good as you are going to have it for the rest of your life under this existing rotten system.

We Are All Losers: The system itself is designed to make losers of us all except that extreme few with the means to purchase influence and therefore protection.

Under this system we all lose, mainly our losses are incremental.

We lose our lives through an increasing amount of time spent on a job locked in a struggle of diminishing gains to even survive.

We lose our health

We lose time with our children and families, this is the most tragic loss of all in most instances as it perpetuates the cycle of the decline in human relationships and destroys the family. Despite what the establishment propagandists and their phony religious wars with their insipid ‘pro family’ sloganeering it is not the loss of morality in through cultural changes in society that is causing the degradation of the family but the greed of an unfettered and monstrous capitalist system that demands more and more in order to slake its bloodsucking appetite for profits. It is the pursuit of these profits at the expense of our humanity that has laid waste to the family, and our values and every day that we are forced to prostitute ourselves in order for the wealthiest of the greed mongers to further entrench themselves is one more day closer to the day that we will ultimately die in vain for their sins.

And in buying into the legitimacy of this lie of a system we ultimately lose our souls.

In a system that is designed to ultimately make losers out of all but the very few who are able to parlay their inordinate influence into being able to utilize it as a weapon of exclusion I found the following from the late, great Hunter S. Thompson to be words of wisdom, this in reference to the ultimate outsiders The Hells Angels:

There is an important difference between a 'loser' and an 'outlaw' . One is passive and the other is active and the main reasons that the Angels are such good copy is that they are acting out the daydreams of millions of losers who don't wear any defiant insignia and who don't know how to be outlaws."

The Angels don't like being called losers but they have learned to live with it. "Yeah, I guess I am" said one "But you're looking at one loser who's going to make a hell of a scene on the way out"

Let's just hope that there are still some outlaws left out there amongst the sheeple, they are all that we have when it comes down to whatever hope there may be left in an increasingly hopeless and hostile world.

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Right-thinking among righteous anger

by Doug Drenkow

After reading about the dangers of righteous anger in the current economic crisis ...

Bracing for a Backlash Over Wall Street Bailouts

... I asked myself a few questions.

If the economy is to recover, do we need to put the banking and financial system on a new, sound footing? Absolutely. No economy can function without a functioning financial sector.

Since the taxpayers have invested hundreds of billions of dollars in AIG and other financial companies because they are "too big to fail" -- that is, they'd take the rest of us down with them -- doesn't that entitle the taxpayers to some say in how that money is spent? And entitle the taxpayers to some rewards, down the road, for covering the risks? Of course.

And if the companies couldn't survive without the taxpayers' assistance -- like the 80% share of AIG the U.S. Treasury has bought -- shouldn't the shots be called by the U.S. government, not executives giving themselves hundreds of millions of dollars in bonuses for their "performance" (Lord, forgive us our ungodly thoughts)?

Whether you call it "nationalization" or "rationalization" or any other "zation" in the nation, we need to just do what we need to do and 1) not let ideology ("Never nationalize") trump common sense ("We the people are already paying the price, because nobody else could"), and 2) not cut off our nose to spite our face (Don't let our entire financial system collapse just to punish a limited number of individuals).

In the short term, stop the bleeding before it's too late (and enough already with these insane, obscene bonuses!). And in the long term, never again let so much money and power accumulate in so few hands, in any sector of our economy. We're all too important to fail.

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