Our government is broke, in fact they are beyond…
Treasury Secretary Jack Lew…
broke since the 2008-09 decision was made to cover the derivative debt losses of the criminal banksters. As a result of their financial desperation, the government, on behalf of Wall Street, has become increasingly desperate, aggressive and criminal.
There can be no doubt that most of the aware among us are cognizant of the ongoing government discussions being held about their intentions of requiring every U.S. citizen to put at least a portion of their retirement savings into a government-controlled retirement accounts regardless of whether they have your approval or not.
As I have reported before, Treasury Secretary, Jack Lew, has announced that he is “borrowing” from federal pension funds this summer in order to help the federal government meet its debt obligations. Since the national deficit is $17 trillion dollars and the unfunded federal mandated liabilities will exceed $200 trillion dollars in one year, these victimized federal workers will never see their full retirement. And if you find yourself breathing a sigh of relief because you do not work for the federal government, you have sadly deluded yourself because the government mafia is coming after all forms of retirement accounts, both pension funds and invested retirements (e.g. 401k’s).
Why Would the Feds Start Their Crime Spree With Federal Retirement Accounts?
If the federal government is planning to steal retirements, would they be wise to steal them incrementally, or all at once? Of course, incremental theft is always preferable because it avoids an initial widespread confrontation with the public. And who better for the federal government to steal from than federal employees because who are they going to complain to?
Federal Employees Are Just the First Wave of Victims
Our criminal-in-chief has suggested totally new and extremely onerous taxes to pay for Obamacare (e.g. a 5% tax on all home sales). He also has announced that he is expanding welfare program, including a new national sales tax as well as a national transaction tax.
The Treasury department is even discussing a new wealth tax coming to America. It is already in place in countries like France, Spain, and England. For some in France, the tax will reach 100% of earned income. Blue blood money is presently fleeing these countries.
Let’s say you are a small businessman, who despite Obama’s best efforts to destroy your business, becomes successful and begin to gross over $200,000 dollars per year. Your success will be short lived as you will hand over MOST of your income to the Sheriff of Nottingham (i.e. The Federal Government Mafia).
What Is A Citizen to Do?
First, we need to realize that there are morons among us who think it is somehow our duty to bail out the government and Wall Street. After all, the government and its parent companies, the Wall Street corporations, are too big to fail.
Second, you need to realize that it is YOU that must take action to preserve what little the government lets you keep. It is your money and therefore, your responsibility.
Third, you need to be aware of the fact that the government can never pay down the debt that they have acquired. Could the federal mafia pay down the $17 trillion dollar deficit? Yes, but they would need 2-3 generations of responsible fiscal policies to do so. Could the federal mafia ever meet its $200 trillion dollar unfunded liabilities such as Social Security and Medicare? The short and best answer is, NEVER. Even if by some miracle we could pay off the unfunded liabilities, totalling almost a quarter of a quadrillion debt, there is even a bigger reason why we can NEVER financially recover. America is doomed to absolute economic failure and there is nothing that can be done. When you understand that we can never pay the debt, and the collapse is evitable, then perhaps you will move to protect what you can.
The Final Nail
America, while you slept, your country was stolen from you. Your country was absconded by all the political misfits and corporate criminals that the disenfranchised former Republicans and Democrats have been trying to warn you about over the last several years.
Laws, originating out of New Deal legislation, written in response to the Great Depression, provided some measure of protection for the American financial system from the unsavory forces which led to its initial demise in 1929. In 2008, corporate greed, governmental corruption and a populace who is asleep at the wheel, has succeeded in achieving what historians will someday label the “Greatest Depression of 2009.” I say The Greatest Depression of 2009, because that is when this irreversible action called the bailouts commenced. Most of the loyalists in this country objected to the bailouts strictly on philosophical grounds. Very few of us understood how catastrophic the bail outs would prove to be.
When Congress was intimidated into approving a series of bailouts, America signed her own death warrant. The remainder of this article will explain exactly why there is absolutely no way that America can financially survive. History, will clearly demonstrate that destruction of the late, great American economy was entirely self-inflicted.
What You Don’t Know Can Hurt You
If Americans knew their history, then we would be cognizant of the fact that one of the prime causes of the Great Depression was due to stock investors buying shares on margin (i.e., loans). The passage of the Glass Steagall Act protected Americans from this shady practice by separating commercial banking from this investment practice of stockbrokers. However, with one stroke of his New World Order pen, Bill Clinton’s repeal of the Glass-Steagall act opened the flood gates for the domestic AND foreign infusion of bad credit into both our stock market and banking system. Consequently, both industries stand upon the precipice of collapse in what is quickly becoming the most massive wealth transfer in world history. .
On September 30, 1999 , Fannie Mae and Freddie Mac sought governmental permission to “relax” (i.e., break) the prudent governmental regulations on sound lending practices and begin to make loansto individuals who were not credit worthy. This spelled the death of the mortgage industry as we once knew it.
The Uptick Rule once prevented companies from crashing due to large scale shorting of company stock. Do you remember it was Goldman Sachs that was fined for shorting mortgages just preceding the bursting of the mortgage bubble?
A company’s stock could not be sold short as long as it was in continuous decline. The short sellers had to wait for an uptick in the stock before engaging in shorting. At the urging of Goldman Sachs and Hank Paulson, the Uptick Rule was retired in 2007 and the rest, as they say, is history.
The elimination of the Uptick Rule is like going to a basketball game and not being able to see the scoreboard. Who’s ahead, who’s behind? Nobody knows but “Ladies and Gentlemen, place your bets!” What is your stock portfolio worth? Who knows? Who cares? Somebody wealthy is getting wealthier at your expense and you and your middle class investors are none the wiser. Let me be crystal clear here, the worst parts of today’s financial crisis was orchestrated by Goldman Sachs and Hank Paulson.
The derivative market is the main impetus for the breakdown of the American economy. The rapid increase in the price of fuel during the last several years is a good example of the destructive nature of the derivative market and it is this market which fueled the greatest debt load every visited upon the planet. Most of the price gouging which resulted in unprecedented increases in gas prices, and record oil company profits, was due to speculation in futures and this, again, was led by Goldman Sachs which just happens to be Treasury Secretary’s Henry Paulson’s old company. The derivatives market subsequently collapsed because the rampant speculative nature of futures drove prices, including homes and real estate through the roof. However, the real damage done by the collapse in derivatives is the fact that almost all other forms of financial instruments are tied to this market because they banks pledged their collateral assets to back this market.
A Quick Financial Lesson
In trying to write for the layman, I endeavor to make this as simple as possible. It is not an overstatement to proclaim that if you do not understand the principles discussed in the following paragraphs, you will have little chance in surviving the impending collapse and you will never know what has hit you when the inevitable comes.
Derivatives are not stocks or bonds or anything of tangible value. This is the ultimate money game in which paper derived from other paper, such asfutures and options, has served to bolster the balance sheets on Wall Street. Futures and options are exchange and traded derivatives, but the largest group of derivatives is not even traded on the exchanges. These are called “counterparty derivatives” and consist of such financial entities as mortgagebacked securities (MBS) and credit default swaps. After assimilating this material it will become obvious why the Federal Reserve is purchasing MBS’ to the tune of $40 billion per month, every month. This process began in September 2013. Of course, you should know that the Federal Reserve is just printing the money out of thin air, thus, making your existing cash supply worth a lot less.
It is estimated that total derivative exposure of the financial system is between one quadrillion and one and a half quadrillion. A quadrillion is 1,000 trillion dollars and the derivative market has largely collapsed.