Posts Tagged ‘Goldman Sachs’

The present world economic and political order – A madhouse where the Arsonists are Running the Fire Brigade‏

2 december, 2013

I have written a lot about the present economic and political disorder (including foreign policy), where the common people are the ones paying the price for the gigantic folly by the political class, old media, central and investment banks, hedge funds etc.; who are pushing risk, leverage and debt to ridiculous and dangerous extremes.

This absurd Alice in Wonderland economic and political farce has been going on now for some time. And the Rabbit Hole is getting deeper and deeper because of the actions, and inactions, of the people mentioned above.

When you start analyzing these figures you get utterly horrified of the totals of the open derivatives positions in the US and European markets.

Just as an example: the four big investment banks in USA (Goldman Sachs, JP Morgan Chase, Citibank and Bank Of America) ONLY “covers” 2,27 % of the Total Exposure with ALL their Assets!

To sum up – TOTAL EXPOSURE TO DERIVATES for ONLY these four banks:

207, 375, 086, 000, 000 TRILLION DOLLARS!!!!!!!!!!!

TOTAL ASSETS for these four banks:  4,720,464,000,000 TRILLION DOLLARS

And remember: these figures are now over one year old. Today’s figures are worse.

If you do the math for example for Goldman Sachs, it has a total exposure to derivatives contracts that is more than 364 times greater than their total assets!

To put these GIGANTIC sums into perspective let’s compare with the GDP from USA and all of EU from 2011.

There a lot of different way to calculate GDP and the figures for each year. Add to that exchange fluctuations, conversion rates etc. So the figures below come from the same source (IMF) to make the comparison easier.  And it is their conversion.

GDP USA 2011 – 15,094,025 billion US dollars

GDP EU 2011 –  17,610,826 billion US dollars

Total GDP for EU and USA 2011: 32,704,851 billion US dollars.

Let’s compare these 32,704,851 billion US dollars with TOTAL EXPOSURE TO DERIVATES for  these four above mentioned banks:

207, 375, 086, 000, 000 TRILLION DOLLARS!!!!!!!!!!!

                                        VS

32,704,851 billion US dollars in COMBINED GDP of EU and USA

Anyone see any problem???”

See among others my posts:

After Cyprus there can be NO Trust Anymore

The economic mess and structural problems in EU and US – Part 1

The economic mess and structural problems in EU and USA – Part 2

Why the Euro is doomed – the German households net wealth in not EVEN HALF of that compared to Italians

Citizens! Forgive us for not arresting those truly responsible for this crisis: bankers and politicians

This is why the Euro is doomed

EU a stupid empire on purpose

EU – an unaccountable mess created by an undemocratic treaty – Now also a crony Bankocracy

The scam that is called EU and the Euro is behind the present crisis

Below are some observations from people with very long experience in the investment and economical field. So rather than me writing again I give you these people’s views.

First from John Mauldin in his newsletter from November 30th (you have to be a subscriber). John Mauldin is a renowned long time financial expert who has written extensively and in depth about the world markets and economic situation. He has his own investment companies; he is an advisor to hedge funds, he an author of several books etc.

(Note: Most of the bold are mine and all underlining is mine. And the charts are mine)

Arsonists Running the Fire Brigade

”I led off by forming an analogy to my Thanksgiving Day experience:

I rather think the stock market is acting like we did at dinner. When the alarms go off, we note that we have heard them several times over the past few months, and there has never been a real fire. Sure, we had a credit crisis in August, but the Fed came to the rescue. Yes, the subprime market is nonexistent. And the housing market is in free-fall. But the economy is weathering the various crises quite well. Wasn’t GDP at an almost inexplicably high 4.9% last quarter, when we were in the middle of the credit crisis? And Abu Dhabi injects $7.5 billion in capital into Citigroup, setting the market’s mind at ease. All is well. So party on like it’s 1999.

However, I think when we look out the window from the lofty market heights, we see a few fire trucks starting to gather, and those sirens are telling us that more are on the way. There is smoke coming from the building. Attention must be paid.

I was wrong when I took the (decidedly contrarian) position that we were in for a mild recession. It turned out to be much worse than even I thought it would be, though I had the direction right. Sadly, it usually turns out that I have been overly optimistic.

This year we again brought my now-96-year-old mother to my new, not-quite-finished high-rise apartment to share Thanksgiving with 60 people; only this time we had to contract with a private ambulance, as she is, sadly, bedridden, although mentally still with us. And I couldn’t help pondering, do we now have an economy and a market that must be totally taken care of by an ever-watchful central bank, which can no longer move on its own?

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I am becoming increasingly exercised that the new direction of the US Federal Reserve, which is shaping up as ”extended forward rate guidance” of a zero-interest-rate policy (ZIRP) through 2017, is going to have significant unintended consequences. My London partner, Niels Jensen, reminded me in his November client letter that,

In his masterpiece The General Theory of Employment, Interest and Money, John Maynard Keynes referred to what he called the ”euthanasia of the rentier”. Keynes argued that interest rates should be lowered to the point where it secures full employment (through an increase in investments). At the same time he recognized that such a policy would probably destroy the livelihoods of those who lived off of their investment income, hence the expression. Published in 1936, little did he know that his book referred to the implications of a policy which, three quarters of a century later, would be on everybody’s lips. Welcome to QE.

It is this neo-Keynesian fetish that low interest rates can somehow spur consumer spending and increase employment and should thus be promoted even at the expense of savers and retirees that is at the heart of today’s central banking policies. The counterproductive fact that savers and retirees have less to spend and therefore less propensity to consume seems to be lost in the equation. It is financial repression of the most serious variety, done in the name of the greater good; and it is hurting those who played by the rules, working and saving all their lives, only to see the goal posts moved as the game nears its end.

Central banks around the world have engineered multiple bubbles over the last few decades, only to protest innocence and ask for further regulatory authority and more freedom to perform untested operations on our economic body without benefit of anesthesia. Their justifications are theoretical in nature, derived from limited-variable models that are supposed to somehow predict the behavior of a massively variable economy. The fact that their models have been stunningly wrong for decades seems to not diminish the vigor with which central bankers attempt to micromanage the economy.

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The destruction of future returns of pension funds is evident and will require massive restructuring by both beneficiaries and taxpayers. People who have made retirement plans based on past return assumptions will not be happy. Does anyone truly understand the implications of making the world’s reserve currency a carry-trade currency for an extended period of time? I can see how this is good for bankers and the financial industry, and any intelligent investor will try to take advantage of it; but dear gods, the distortions in the economic landscape are mind-boggling. We can only hope there will be a net benefit, but we have no true way of knowing, and the track records of those in the driver’s seats are decidedly discouraging.”

”but now let’s jump into Code Red. In this section, we deal with the topic of central banking and its failures and ponder the implications of continuing to give the same people ever more authority and responsibility. This is from Chapter 5, called:

Arsonists Running the Fire Brigade

In the old days, central banks raised or lowered interest rates if they wanted to tighten or loosen monetary policy. In a Code Red world everything is more difficult. Policies like ZIRP, QE, LSAPs, and currency wars are immensely more complicated. Knowing how much money to print and when to undo Code Red policies will require wisdom and foresight. Putting such policies into practice is easy, almost like squeezing toothpaste. But unwinding them will be like putting the toothpaste back in the tube.

20131122_buck

Promoting Failure

We’ll admit that we’re having too much fun criticizing central bankers, the Colonel Jessups of the Code Red world. But please don’t just take our word for it when we tell you that they’re clueless. Let’s look at what others have written.

In 2009 Congress created the Financial Crisis Inquiry Commission to uncover the causes and consequences of the financial catastrophe that almost brought down the world financial system. They roundly condemned the Federal Reserve:

We conclude this crisis was avoidable. The crisis was the result of human action and inaction…. The prime example is the Federal Reserve’s pivotal failure to stem the flow of toxic mortgages, which it could have done by setting prudent mortgage lending standards. The Federal Reserve was the one entity empowered to do so and it did not…. We conclude widespread failures in financial regulation and supervision proved devastating to the stability of the nation’s financial markets.

Not surprisingly, public confidence in the Fed has plummeted.

Italian Ind production

The Federal Reserve performed disastrously before the Great Financial Crisis, but almost all central banks were asleep at the wheel. The record of central banks around the world leading up to the Great Financial Crisis was an unmitigated disaster. All countries that had housing bubbles and large bank failures failed to spot them beforehand. In the case of England, where almost all major banks went bust (some rather spectacularly!) and required either nationalization or fire sales to foreign banks, the Bank of England never saw the crisis coming. Let’s look at what The Economist has to say about central bank failures:

In 1996 the Bank of England pioneered financial-stability reports (FSRs); over the next decade around 50 central banks and the IMF followed suit. But according to research cited by Howard Davies and David Green in ”Banking on the Future: The Fall and Rise of Central Banking,” published last year, in 2006 virtually all the reports, including Britain’s, assessed financial systems as healthy. In the basic function of identifying emerging threats, ”many central banks have been performing poorly,” they wrote.

According to published reports, the Bank of England only learned about the bankruptcy of one huge bank after another a few days before the actual public announcement. So much for staying on top of the situation. The regulators were captured by the very institutions they were supposed to regulate, with neither the banks of the regulators understanding the serious nature of the problems they were creating with their actions.

20131119_thisismadness

Housing bubbles swelled and burst everywhere: Spain, Ireland, Latvia, Cyprus, and the United Kingdom. Countries that had to recapitalize or nationalize their banks were broadsided by a disaster they did not anticipate, prepare for, or take action to prevent. In the case of Spain, even after the crisis unfolded, the Bank of Spain acted like a pimp for its own banks. It insisted nothing was wrong and proceeded to help its banks sell loads of crap to unsuspecting Spaniards in order to recapitalize the banks. (We apologize for our language, but there is no other word besides crap that properly characterizes selling worthless securities to poor pensioners – well, there are, but they are even less suitable for public consumption).

In fairness, central bankers did save the world after the Lehman Brothers bankruptcy. The money printing that the Federal Reserve oversaw after the failure of Lehman Brothers was entirely appropriate to avoid another Great Depression. But giving them credit for that is like praising an arsonist for putting out the fire he started.

The failure of central banks makes it all the more remarkable that they were given even more responsibility in the wake of crisis. Since 2007 central banks have expanded their remits, either at their own initiative or at governments’ behest. They have exceeded the limits of conventional monetary policy by buying massive amounts of long-dated government bonds, mortgage-backed securities, and other assets. They have also taken on more responsibility for the supervision of banks and the stability of financial systems.

Japan%20Charts%20Abenomics

The Banking Act of 1933, more popularly known as the Glass-Steagall Act, forced a separation of commercial and investment banks by preventing commercial banks from underwriting securities. Investment banks were prohibited from taking deposits. Until it was repealed in 1999, the Glass-Steagall Act worked brilliantly, helping to prevent a major financial crisis. It was replaced by the Graham-Leach-Bliley Act, which ended regulations that prevented the merger of banks, stock brokerage companies, and insurance companies. The American public’s interests were thrown to the wolves of Wall Street, and the Fed and the Clinton administration gave the middle finger to financial stability.

After the Great Financial Crisis, Congress could have simply reinstated Glass-Steagall. The act was only 37 pages long, but it had worked incredibly well. Instead, after an orgy of bank lobbying and Congressional kowtowing to the bankers who had brought the world to the brink of a global depression, Congress passed the Dodd-Frank Act. It is over 2,300 pages long; no one is sure what is in it or what it means; and it has added a dizzyingly complex tangle of regulations and bureaucracy to what should have been a simple, straightforward reform of the financial sector. (The act is so long and complicated that it was nicknamed the ”Lawyers’ and Consultants’ Full Employment Act of 2010.”) You will hardly be reassured to learn that the Federal Reserve’s powers were expanded through Dodd-Frank.

Please note that it was the same banks and investment firms that lobbied to repeal Glass-Steagall in 1999 that so aggressively and successfully lobbied for the Dodd-Frank Act. While there are some features contained in the plan that are good, the basic problems still remain. Industry insiders were able to assure that business as usual could continue. And to judge from their profits, it has done so remarkably well.

Figure 5.4 Major financial legislation: number of pages

Financial legislation

The Fed didn’t need more powers. In the years leading up to the Great Financial Crisis, the Fed already had almost all the tools it needed to prevent the subprime debacle. It simply failed to use them. You could call that lapse nonfeasance, dereliction of duty, going AWOL, or anything other than doing their duty. If you don’t believe you are capable of recognizing a bubble in advance, then all the additional regulations in the world won’t make any difference in preventing a bubble. Dodd-Frank merely gave them more regulations not to enforce. It is the mindset that needs changing, not simply the regulations.

According to the Financial Crisis Inquiry Commission, the Federal Reserve failed to use the tools at its disposal to regulate mortgages or bank holding companies or to prevent the abusive lending practices that contributed to the crisis. The central bank didn’t ”recognize the cataclysmic danger posed by the housing bubble to the financial system and refused to take timely action to constrain its growth,” the report said. It also ”failed to meet its statutory obligation to establish and maintain prudent mortgage lending standards and to protect against predatory lending.”

The most sordid part of the Great Financial Crisis was not the extreme failure by central banks to regulate. The most egregious violation of the public interest came in the form of the massive subsidies and aid the central banks gave to the banking system when the crisis was underway. The great journalist and essayist Walter Bagehot argued in the mid-19th century that during a financial crisis central banks should lend freely but at interest rates high enough to deter borrowers not genuinely in need, and only against good collateral. During the crisis, the Fed and other central banks lent trillions of dollars at zero cost against the shoddiest of collateral. And the Fed went out of its way to provide gifts to Wall Street banks via the back door. For example, when AIG went bust, Timothy Geithner decided that the US taxpayer should pay out credit default swaps to AIG’s counterparties at full price. Goldman Sachs was given a parting gift to $10 billion. Geithner did not even negotiate a haircut. The money went to dozens of banks, many which were not even American. It is no wonder Geithner became well-known as ”Wall Street’s lapdog.”

20131115_SpainGDP

Our good friend Dylan Grice wrote a fascinating piece on what happens when you have too many rules and too little common sense. In a Dutch town called Drachten, local government decided to take out all traffic lights and signs. They hoped people would pay more attention to the road rather than fixate on rules and regulations. They were right. In Drachten there used to be a road death every three years, but there have been none since traffic light removal started in 1999. There have been a few small collisions, but these are almost to be encouraged. A traffic planner explained, ”We want small accidents in order to prevent serious ones in which people get hurt.” Let’s see what Dylan has to say about the lessons for capital markets:

You might be thinking that traffic lights don’t have anything to do with the markets we all work in. But I think they do. Instead of traffic lights and road signs think rating agencies; think Basel risk weights for Core 1 and Core 2 bank capital; think Solvency 2; or think of the ultimate market regulators of our currencies – the central banks – and the Greenspan/Bernanke ”put” which was once imagined to exist. Haven’t these regulators provided the same illusion of safety to financial market participants as traffic safety tools do for drivers? And hasn’t this illusion of safety been even more lethal?

Wouldn’t it be nice if central bankers thought more like Drachten town planners? But central bankers and parliaments prefer extensive rules to a common-sense approach.

Central Banks and GDP growth

Unlike the planners of Drachten, the Federal Reserve and central banks around the world issue extensive sets of regulation, fail to enforce them, encourage everyone to speed, and then when crashes happen they protect as many banks as possible from the consequences of their own actions.

The Federal Reserve is in desperate need of reform. This doesn’t mean that politicians should be deciding interest rates or that banking supervision should be taken away from central banks. But central bankers should be answerable to the public for how they do their jobs. Accountability has been completely missing throughout the entire crisis. Almost all central banks failed to do even the basics of their job. The regulations they created, especially in Europe, made it possible for banks to take massive risk and make huge profits that ultimately had to be bailed out by taxpayers.

They believe the banks and other institutions they were regulating when they showed the models which they created which demonstrated conclusively there was no risk. Everyone, bankers and regulators, believed we were in a new era, for the old rules of common sense didn’t apply. Central bankers didn’t need more rules or regulations. They failed miserably at even carrying out the simple job they had. The regulatory functions of central banks should be treated like those of any other regulatory agency. It is critical that we hold central bankers accountable for their management of the banking system.

Participation%20Rate_0

No Apologies, Only Promotions

One of the most disastrous battles of World War I was the British Gallipoli campaign in Turkey in 1915. It was utterly devastating, leaving more than 50,000 British wounded and almost 100,000 dead. Winston Churchill, first lord of the Admiralty, was one of the architects of the campaign. In the wake of the outcome, he resigned his post to become a soldier in the war. Churchill was a humble man who felt he was at fault. He was honorable. But if Churchill had been a central banker, he would never have had to accept responsibility or resign. He would have kept his job and been given even more far-reaching powers and a big pay raise to boot.

For the past few years, central bankers have been living large. The same people who brought us the Great Financial Crisis are now bringing us a world of Code Red policies and financial repression. The arsonists are running the fire brigade.

Where is the central banker who has apologized for contributing to the crisis or for being asleep at the wheel? Given how disastrous their performance has been, it is extraordinary that the same cast of characters is still running the show. Central bankers are lucky that they still have jobs. As far as we are aware, no central banker was fired for incompetence or mismanagement. Many have retired and are now enjoying generous pensions and highly paid consulting careers advising investment funds as to what their former colleagues might do next.

Labor%20Force

Central bankers have had plenty of time to discuss the financial crisis since 2008, but they have provided only scholarly disquisitions as to what went wrong in the banking crisis, without accepting any responsibility at all. At no time have any central bankers admitted that they might have ignored the warning signs of excessive debt, kept interest rates too low for too long, ignored bubbles in housing markets, failed to regulate banks correctly, or proved themselves even mildly incompetent.

Not only were central bankers not fired, many were promoted instead and given pay raises. Timothy Geithner, who headed the Federal Reserve Bank of New York, not only failed to regulate a host of banks that needed massive government bailouts but was an active apologist for Wall Street banks. For his efforts he was promoted to Secretary of the Treasury under President Obama. In Europe, Spanish central bankers stand out as perhaps the most incompetent ever, having overseen dozens of banks that created the biggest housing bubble in European history and having failed to recognize problems not only before but after they happened. Bankers like Jose Viñals, Jose Caruana, and others were given plum jobs at the IMF and the ECB after being asleep at the wheel in Spain.

Japan debt

Granting extra powers to central banks without a change in the philosophy behind their management is like encouraging an irresponsible teenager. Imagine your teenage son borrowed the family car and crashed it, and instead of punishing him you bought him a new Ferrari to test drive. Conventional monetary policies are like a sturdy old family station wagon, but Code Red policies are like a modified Ferrari 288 GTO capable of hitting 275 miles per hour. Given how spectacularly central banks failed during the Great Financial Crisis, it blows the mind that they’ve been handed the keys to a faster set of wheels.

One last thought. You might get from reading this that we are against rules and regulations. Far from it. We just like very simple, workable rules. Reinstate Glass-Steagall. Limit the ability of banks to create leverage, and require even more capital as they get larger. Banks that are systemically too big to fail are too big, period. Take away the incentive to grow beyond what is prudent for the deposit insurance scheme of a nation to maintain. Allowing bankers to take the profits and then hand taxpayers the losses in a crisis is not good policy, even if it is bolstered by 1,000 pages of regulations written by lawyers and bank lobbyists who then proceed to ”massage” them in order to do what they want to anyway.

But, alas, such hopes may remain dreams deferred until there is yet another crisis and taxpayers are asked to absorb even greater losses (but we can always hope!). So, in the meantime, as prudent investors and managers, we must be aware of the realities we face. The saying in Africa is that it is not the lion you can see that is the danger, instead it is the one hidden in the grass that leaps out at you as you try to escape the one you see. Later we will talk about a few strategies that can help you handle the risks that crouch hidden in the grass.”

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Second this presentation from Grant Williams, investment and financial expert from Singapore, with 28 years of experience of world markets, to get another angle of the same problem. He is now a portfolio and strategy advisor for a hedge fund in Singapore.

“Grant Williams ”pulls no punches” in this all-encompassing presentation as the ”Things That Make You Go Hmmm” author reflects on what is behind us and looks ahead at the ugly reality that we will face when ”the impurities of QE are finally flushed from the system.” Central bankers of today have ”changed everything” he chides, ”in ways that will ultimately end in disaster.” Following extraordinarily easy monetary policies across all of the world’s central banks, Williams explains why ”we are now near the popping point of the 3rd major bubble of the last 15 years,” each bigger than the last. The only way Janet Yellen avoids being at the helm when this ship goes down is to blow an even bigger bubble than Bernanke’s government bond experiment, ”which is highly unlikely.” From how QE works, why many don’t ”feel” wealthy anymore, to the fact that ”the geniuses that gave this thing life, don’t have the guts to kill it,” Williams warns, ominously, ”the bills have come due on the blissful latest 30 years.”

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Returning to a world with which we are familiar is going to require either some real magic on the parts of Draghi, Kuroda, Carney, and soon to be Yellen; or some kind of tornado that sweeps away everything in its path and allows the world to build again from more solid foundations.

20131130_TTMYGH5

Wizened In Oz: ASFA 2013 Presentation. Perth, November 2013

Third, just to remind us that it is the normal, hardworking people that are following the rules that are getting screwed, just take a look at this graph from USA below:

This is why all these welfare systems are going to crash taking the societies with them.

And ALL these SYSTEMS were put in place by politicians KNOWING FULL WELL WHAT THEY VERE DOING and THAT THESE SYSTEM COULDN’T LAST IN THE LONG RUN.

US welfare cliff

http://www.zerohedge.com/news/2013-11-30/other-america-taxpayers-are-fools-working-stupid

“While what little remains of America’s middle class is happy and eager to put in its 9-to-5 each-and-every day, an increasing number of Americans – those record 91.5 million who are no longer part of the labor force – are perfectly happy to benefit from the ever more generous hand outs of the welfare state. Prepare yourself before listening to this… calling on her self-admitted Obamaphone, Texas welfare recipient Lucy, 32, explains why ”taxpayers are the fools”…

”…To all you workers out there preaching morality about those of us who live on welfare… can you really blame us? I get to sit around all day, visit my friends, smoke weed.. and we are still gonna get paid, on time every month…”

She intends to stay on welfare her entire life, if possible, just like her parents (and expects her kids to do the same). As we vociferously concluded previously, the tragedy of America’s welfare state is that work is punished.”

As quantitied, and explained by Alexander, ”the single mom is better off earnings gross income of $29,000 with $57,327 in net income & benefits than to earn gross income of $69,000 with net income and benefits of $57,045.

“We realize that this is a painful topic in a country in which the issue of welfare benefits, and cutting (or not) the spending side of the fiscal cliff, have become the two most sensitive social topics. Alas, none of that changes the matrix of incentives for most Americans who find themselves in a comparable situation: either being on the left side of minimum US wage, and relying on benefits, or move to the right side at far greater personal investment of work, and energy, and… have the same disposable income at the end of the day.”

WELFARE ABUSE: 32 years old Austin, TX welfare recipient says (October 30)

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The economic mess and structural problems in EU and USA – Part 2

23 januari, 2013

This is the second part about USA. Again, It ain’t pretty to say the least!

Where the same absurd Alice in Wonderland economic and political farce is playing out in the USA. And as in Europe it is, as usual, the common people who are paying the price.

And as in Europe, the US crisis is anything but over regardless of what the political elites are trying to tell the people in USA. In USA the role of ECB is played by the FED (the Federal Reserve), which creates money out of “thin air” to support the gigantic and increasing debt. And to keep the stock market going and lower the price of the dollar.

So that the federal US government can spend your tax money like a drunken sailor.

(See my posts:                                      

The US election – Yes we have NO bananas

How Obama loves the poor SOOO MUCH, especially the black, that they have had the largest single drop in income ever

In three graphs – Obama Economics)

All graphs get bigger when you click on them

USA_jobs2

                                                 USA

In USA, Goldman Sachs and the other investment banks, plus the big Hedge Funds, are pushing leverage to ridiculous and dangerous extremes.

If you read the Comptroller of the Currency, Administrator of National Banks, report for the second quarter 2012 “Quarterly Report on Bank Trading and Derivatives Activities”, you get utterly horrified of the totals of the open derivatives positions in the US market.

Four of the largest U.S. banks are walking an extreme tightrope of risk, leverage and debt when it comes to derivatives.  Below you are going to find just how utterly exposed they are.

But first what is leverage?

Most people do not understand “leverage” and what it actually means. If they did, they would not sleep at night knowing what’s going on right now.

To put it simple: leverage means that these banks etc use a leverage of say 1:50 or 1:100 in their speculations. Which means that they only put up 1 of their own dollars for an investment worth 50 or 100 dollar. Their dollars are “worth” 50 or 100 times more than they actually are.

It ALSO means that IF “things” goes wrong way they LOSE 50 or 100 dollars for every dollar they invested in that trade or position. Or much, much more.

And usually when things goes wrong, it goes very fast when it comes to trading with these kind of leverages. So very quickly, these sums get astronomical. In a couple of days they can literally lose ALL their capital and more.

Nov deficit

 This has happened time and time again. Just to mention a few:

–         Lehman Brothers (was the 4th largest inv. bank in the US).

–          Bear Stearns

–          American International Group

–          Northern Rock (a medium-sized British bank)

–          Washington Mutual

–          American Savings and Loan

–          Landsbanki and Glitnir

–          Barings Bank

–          Société Générale

–          JP Morgan Chase & Co

–          Morgan Stanley

–          Long-Term Capital Management L.P. (LTCM)

As I said before, this is JUST A VERY SHORT LIST

Avalanche

This would not per se be a problem if this were a truly free and capitalist market. Because then these banks would go bankrupt and the owners and investors would lose their money. As they are supposed to do if the do bad business or trades.

But as we all know, this is NOT a free and capitalist market.  Our “dear” politicians have “decided” that these banks with all their wild speculations are too important or to big, to be allowed to fail.

 So instead, they have used taxpayer’s money and put whole countries at risk and in extreme debt just to bail out these banks.

And the banks knows that whatever speculations they do, REGARDLESS of how much or bad they speculate, and as you can see below their speculations are horrific, the politicians are going to bail them out with our tax money.

JP Morgan Chase

Total Assets: $1,812,837,000,000 (just over 1.8 trillion dollars)

Total Exposure To Derivatives: $69,238,349,000,000 (more than 69 trillion dollars)

 Citibank

Total Assets: $1,347,841,000,000 (a bit more than 1.3 trillion dollars)

Total Exposure To Derivatives: $52,150,970,000,000 (more than 52 trillion dollars)

Bank Of America

Total Assets: $1,445,093,000,000 (a bit more than 1.4 trillion dollars)

Total Exposure To Derivatives: $44,405,372,000,000 (more than 44 trillion dollars)

Goldman Sachs

Total Assets: $114,693,000,000 (a bit more than 114 billion dollars)

Total Exposure To Derivatives: $41,580,395,000,000 (more than 41 trillion dollars)

To sum up – TOTAL EXPOSURE TO DERIVATES for ONLY these four banks:

 207, 375, 086, 000, 000 TRILLION DOLLARS!!!!!!!!!!!

TOTAL ASSETS for these four banks:  4,720,464,000,000 TRILLION DOLLARS

So they can “cover” 2,27 % of the Total Exposure with ALL their Assets!

So who is going to pay for the “rest”:  202, 654, 622, 000, 000  TRILLION DOLLARS!!!!!!!!!!! if anything goes wrong?

EmployRecNov2012

Well, we know the answer to that doesn’t we. So far, it’s the common people, i.e. the taxpayers, who had to cover for all the banks bad speculations thanks to our dear politicians.

Take another look at those figures for Goldman Sachs.  If you do the math, Goldman Sachs has total exposure to derivatives contracts that is more than 364 times greater than their total assets!

That is utter insanity, but everyone just keeps pretending that the emperor actually has clothes on.

And why are “our” politicians SO EAGER to protect these speculators?

To put these GIGANTIC sums into perspective lets compare with the GDP from USA and all of EU from 2011

There a lot of different way to calculate GDP and the figures for each year. Add to that exchange fluctuations, conversion rates etc. So the figures below comes from the same source (IMF) to make the comparison easier.  And it is their conversion.

GDP USA 2011 – 15,094,025 billion US dollars

GDP EU 2011 –  17,610,826 billion US dollars

Total GDP for EU and USA 2011: 32,704,851 billion US dollars.

Lets compare these 32,704,851 billion US dollars with TOTAL EXPOSURE TO DERIVATES for  these four above mentioned banks:

207, 375, 086, 000, 000 TRILLION DOLLARS!!!!!!!!!!!

VS

32,704,851 billion US dollars in COMBINED GDP of EU and USA

Anyone see any problem???

Problem solved all right. So just move on, nothing to notice here or worry about.

Because according to out “dear” politicians, bankers and political elites from EU and USA there is NO SERIOUS PROBLEM HERE. The problems in USA and EU are more or less solved etc.

So the ones that put as in the mess in the first place, very “reassuringly” tells us: “We take care of it”.

Yeah sure!

mrzSpendaholic2

Let’s move on to another “bright spot” –the federal budget and debt. The figures are based on the 2012/2013 data:

2012 US Tax Revenue: $2,469,000,000,000

2012 Federal budget: $3,796,000,000,000

2012 Budget deficit: $1,327,000,000,000

US Federal Debt as of January 22, 2013: $16,471,084,067,491

Total interest paid on the debt in 2012: $359,796,008,919

Budget INCREASE between 2012 and 2013: $38,500,000,000

mrzWhat is the

To make these gigantic sums understandable here is how these figures would look like for a “normal” family:

Annual family income: $24,690

Annual family expenses: $37,960.  154% of the annual family income.

Annual family shortfall borrowed from friends/neighbors etc: $13,270.  54% of the annual family income.

Total interest the family paid last year: $3,598 (at near 0% interest).  Nearly 15% of the annual family income

Total family debt (mortgage, auto, credit card): $164,471.This is   666% of the annual family income.

Change in family spending this year: an increase of $385

This looks like a very responsible family wouldn’t you say?

And do you think this family would get any loans from the banks?

When you look at it this way, it really seems absurd. Yet it’s true… a slow motion train wreck. That any person with more than one functioning brain cell can see coming miles away.  Except our “dear” politicians. They are in ACTUAL FACT increasing the spending AND the debt.

Foodstamps%20Oct

Here’s another way to look at the debt ceiling I found in a paper. It’s very symptomatic:

Let’s say you come home from work and find there has been a sewer backup in your neighborhood… and your home has sewage all the way up to your ceilings.

What do you think you should do?

Raise the ceilings, or remove the crap?

Well, or “dear” politicians are franticly at an increasing speed trying to raise the ceiling at the same time as the “sewage” is increasing EVEN MORE.

Yeap, there you have politicians in a nutshell.

Why fix the problem that they themselves caused, when the politicians can pretend that they are the giver of all gods and bearer of all gifts to all the people all the time.

And it doesn’t cost anything for anybody. It’s ALL free forever. And they all lived happily ever after.

Sounds like a wonderful fairytale doesn’t it?

On that “cheerful” note, I stop here.

mrzOur children

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Climate change policy has nothing to do with environmental protection

20 november, 2010

“Klimaschutz hat mit Umweltschutz kaum mehr etwas zu tun“

I have from day one written many, many posts in this blog about the intimidation of people and blatant censoring of facts done in the name of ”science” and Global Warming Hysteria. And that the Global Warming Hysteria has nothing to do with saving the Earth or the environment. It has always been a political agenda.

(See for example my post The Big Money & The Global Governance/Government Agenda That Fuels Environmentalism)

I have written extensible (over 120 of posts) about the scam called Cap and Trade, –  the Biggest Heist in History-  where BOTH BUYER AND SELLER BENEFITS FROM CHEATING. And we, as taxpayers and consumers pay the prize. It’s an open invitation to fraud and manipulation.

And recognize it for what it is – A GIANT FINANCIAL SCAM that puts all the burden on the common people and does nothing whatsoever for the environment.

Therefore it is refreshing to se that more and more of the Global warming Hysterics are coming out from behind their masks and are openly admitting their political agenda.

The latest one is Ottmar Edenhofer, a German economist and co-chair of the IPCC Working Group III. He is also the deputy director and chief economist of the Potsdam Institute for Climate Impact Research (PIK) and Professor of the Economics of Climate Change at the Berlin Institute of Technology. He will be co-chairing the Working Group “Mitigation of Climate Change”.

Here are some direct quotes from an article in Neue Zürcher Zeitung November 14:

Grundsätzlich ist es ein grosser Fehler, Klimapolitik abgetrennt von den grossen Themen der Globalisierung zu diskutieren. Der Klimagipfel in Cancún Ende des Monats ist keine Klimakonferenz, sondern eine der grössten Wirtschaftskonferenzen seit dem Zweiten Weltkrieg….. da führt kein Weg daran vorbei, dass ein Grossteil der fossilen Reserven im Boden bleiben muss.

Aber man muss klar sagen: Wir verteilen durch die Klimapolitik de facto das Weltvermögen um. Dass die Besitzer von Kohle und Öl davon nicht begeistert sind, liegt auf der Hand. Man muss sich von der Illusion freimachen, dass internationale Klimapolitik Umweltpolitik ist. Das hat mit Umweltpolitik, mit Problemen wie Waldsterben oder Ozonloch, fast nichts mehr zu tun.“

Aber dann müssen wir sehen, dass erfolgreiche Klimapolitik eben eine andere globale Handels- und Finanzpolitik braucht.“

Und in den Industrieländern wird uns klar, dass für ein Klimaschutzziel von zwei Grad weder rein technische Lösungen noch Lebensstilwandel ausreichen. Die Leute hier in Europa haben die groteske Vorstellung, Einkaufen im Bioladen oder Elektroautos lösten das Problem. Das ist arrogant, denn der ökologische Fussabdruck unseres Lebensstils hat sich in den letzten 30 Jahren vergrössert, trotz Öko-Bewegung.“

Es muss Strafen und Anreize geben: weltweite CO 2 -Zölle und Technologie-Transfer.“

Was wir suchen müssen, ist eine Oase, das ist die kohlenstofffreie Weltwirtschaft. Es geht um den gemeinsamen Aufbruch zu dieser Oase.“

My english translation:

“Basically it’s a big mistake to discuss climate policy separately from the major themes of globalization. The climate summit in Cancun at the end of the month is not a climate conference, but one of the largest economic conferences since the Second World War…. there is no getting around the fact that a large part of the fossil reserves must remain in the soil.”

“But one must say clearly that we redistribute de facto the world’s wealth by climate policy. That the owners of coal and oil will not be enthusiastic about this, is obvious.

One has to free oneself from the illusion that international climate policy is environmental policy. This has nothing to do with environmental policy anymore, with problems such as deforestation or the ozone hole.”

“But then we need to see that a successful climate policy must specify a different global trade and financial policy.”

“And in developed countries, we have realized that for a climate protection target of two degrees neither purely technical solutions nor life style change will be sufficient. The people here in Europe, have the grotesque idea that shopping in the health food stores or in electric cars solved the problem. This is arrogant, because the ecological footprint of our lifestyle has increased in the last 30 years, despite the eco-movement.”

“There must be penalties and incentives: global CO 2-tariffs and technology transfer.”

“What we need to look for is an oasis that is the non-carbon global economy. It’s about the common departure for this oasis.”

The article from NZZ here:

http://www.nzz.ch/nachrichten/schweiz/klimapolitik_verteilt_das_weltvermoegen_neu_1.8373227.html

Klimapolitik verteilt das Weltvermögen neu»

Klimaschutz hat mit Umweltschutz kaum mehr etwas zu tun, sagt der Ökonom Ottmar Edenhofer. Der nächste Weltklimagipfel in Cancún sei eigentlich ein Wirtschaftsgipfel, bei dem es um die Verteilung der Ressourcen gehe. Interview: Bernhard Pötter

NZZ am Sonntag: Herr Edenhofer, beim Klimaschutz fordern alle eine Reduzierung von Emissionen. Sie sprechen jetzt von «gefährlicher Emissionsreduzierung». Was ist das?

Ottmar Edenhofer: Bisher ging Wirtschaftswachstum immer Hand in Hand mit dem Wachstum der Treibhausgasemissionen. Ein Prozent Wachstum heisst ein Prozent mehr Emissionen. Ins historische Gedächtnis der Menschheit hat sich eingebrannt: Wer reich ist, verfeuert dafür Kohle, Öl oder Gas. Und deshalb haben die Schwellenländer Angst vor Emissionsgrenzen.

Beim Klimaschutz sollten aber alle mitmachen, sonst funktioniert er nicht.

Das sagt sich so leicht. Aber vor allem die Industriestaaten haben ein System, das fast ausschliesslich auf fossilen Energien beruht. Es gibt kein historisches Vorbild und keine Weltregion, die ihr Wirtschaftswachstum von den Emissionen abgekoppelt hat. Da können Sie nicht von Indien oder China erwarten, dass die finden, dass das eine tolle Idee ist. Und es kommt noch schlimmer: Wir sind mitten in einer Renaissance der Kohle, weil Öl und Gas teurer geworden sind, Kohle aber nicht. Die Schwellenländer bauen gerade für die nächsten 70 Jahre ihre Städte und Kraftwerke, als ob es dauerhaft keinen hohen CO 2 -Preis gäbe.

Das Neue an Ihrem Vorschlag zu einem Global Deal ist die Betonung, wie wichtig Entwicklungspolitik für die Klimapolitik ist. Bis jetzt denken viele bei Entwicklungshilfe an Almosen.

Das wird sich sofort ändern, wenn global Emissionsrechte verteilt werden. Wenn das pro Kopf der Bevölkerung geschieht, dann ist Afrika der grosse Gewinner, und es fliesst viel Geld dorthin. Das hat für die Entwicklungspolitik enorme Konsequenzen. Und es wird sich auch die Frage stellen, wie diese Länder mit so viel Geld überhaupt sinnvoll umgehen können.

Das klingt alles nicht mehr nach der Klimapolitik, die wir kennen.

Grundsätzlich ist es ein grosser Fehler, Klimapolitik abgetrennt von den grossen Themen der Globalisierung zu diskutieren. Der Klimagipfel in Cancún Ende des Monats ist keine Klimakonferenz, sondern eine der grössten Wirtschaftskonferenzen seit dem Zweiten Weltkrieg. Warum? Weil wir noch 11 000 Gigatonnen Kohlenstoff in den Kohlereserven unter unseren Füssen haben – und wir dürfen nur noch 400 Gigatonnen in der Atmosphäre ablagern, wenn wir das 2-Grad-Ziel halten wollen. 11 000 zu 400 – da führt kein Weg daran vorbei, dass ein Grossteil der fossilen Reserven im Boden bleiben muss.

De facto ist das eine Enteignung der Länder mit den Bodenschätzen. Das führt zu einer ganz anderen Entwicklung als der, die bisher mit Entwicklungspolitik angestossen wurde.

Zunächst mal haben wir Industrieländer die Atmosphäre der Weltgemeinschaft quasi enteignet. Aber man muss klar sagen: Wir verteilen durch die Klimapolitik de facto das Weltvermögen um. Dass die Besitzer von Kohle und Öl davon nicht begeistert sind, liegt auf der Hand. Man muss sich von der Illusion freimachen, dass internationale Klimapolitik Umweltpolitik ist. Das hat mit Umweltpolitik, mit Problemen wie Waldsterben oder Ozonloch, fast nichts mehr zu tun.

Trotzdem leidet die Umwelt unter dem Klimawandel – vor allem im Süden.

Es wird auch viel bei der Anpassung zu tun sein. Aber das geht eben weit über klassische Entwicklungspolitik hinaus: Wir werden in Afrika mit dem Klimawandel einen Rückgang der landwirtschaftlichen Erträge sehen. Aber damit kann man umgehen, wenn die Effizienz der Produktion gesteigert wird – und vor allem, wenn der afrikanische Agrarhandel in die Weltwirtschaft eingebettet wird. Aber dann müssen wir sehen, dass erfolgreiche Klimapolitik eben eine andere globale Handels- und Finanzpolitik braucht.

Das grosse Missverständnis vom Uno-Gipfel in Rio 1992 wiederholt sich in der Klimapolitik: Die Industriestaaten reden von Umwelt, die Entwicklungsländer von Entwicklung.

Es ist noch komplizierter. In den achtziger Jahren waren unsere lokalen Umweltprobleme für die Entwicklungsländer ein Luxusproblem. Wer schon satt ist und Auto fährt, der kann sich über sauren Regen aufregen. Für China ging es hingegen darum, wie man 600 Millionen Chinesinnen und Chinesen in die Mittelschicht bekommt. Ob da ein Kohlekraftwerk steht oder in den Kohleminen die Sozialstandards niedrig sind, das war erst einmal nachrangig – wie bei uns im 19. Jahrhundert.

Aber die Welt ist kleiner geworden.

Jetzt kommt etwas Neues: Es geht nicht mehr nur um unseren Luxus, unsere Umwelt. Den Entwicklungsländern wird klar, dass die Ursachen im Norden liegen und die Folgen im Süden. Und in den Industrieländern wird uns klar, dass für ein Klimaschutzziel von zwei Grad weder rein technische Lösungen noch Lebensstilwandel ausreichen. Die Leute hier in Europa haben die groteske Vorstellung, Einkaufen im Bioladen oder Elektroautos lösten das Problem. Das ist arrogant, denn der ökologische Fussabdruck unseres Lebensstils hat sich in den letzten 30 Jahren vergrössert, trotz Öko-Bewegung.

Sie sagen, für die erfolgreiche Klimapolitik sei ein hohes Mass an internationaler Kooperation nötig. Gerade die sieht man aber nicht.

Ich teile die Skepsis. Aber haben wir eine Alternative? Derzeit gibt es drei Ideen, wie man die schwierige Kooperation umgehen kann: Man verlegt sich auf unsichere Experimente wie das Geo-Engineering, man konzentriert sich auf den Ausbau von sauberer und sicherer Energie, oder man vertraut auf regionale und lokale Lösungen. Es gibt allerdings keinen Hinweis darauf, dass eine dieser Ideen das Problem löst. Wir müssen die Kooperation also wollen, so wie man auch für die Regelung der Finanzmärkte zusammenarbeiten muss.

Aber anders als bei der Finanzkrise hat in der Klimapolitik ein Land Vorteile, wenn es nicht mitmacht.

Die Finanzkrise war eine Notoperation – angesichts von Gefahr verhalten wir uns kooperativer. So etwas wird es beim Klima nicht geben, denn es bleibt immer fraglich, ob ein konkretes Ereignis wie eine Überschwemmung ein Klima-Phänomen ist. Aber es gibt immer die Gefahr, dass individuelle Rationalität zur kollektiven Dummheit führt. Deshalb kann man das Klimaproblem nicht allein lösen, sondern muss es vernetzen mit anderen Problemen. Es muss Strafen und Anreize geben: weltweite CO 2 -Zölle und Technologie-Transfer.

In Ihrem neuen Buch ist viel von Ethik die Rede. Spielt sie bei den Klimaverhandlungen eine Rolle?

Ethik spielt immer eine Rolle, wenn es um Macht geht. China und Lateinamerika betonen zum Beispiel immer die historische Verantwortung der Industriestaaten für den Klimawandel. Diese Verantwortung ist nicht zu leugnen, aber es ist auch ein strategisches Argument der Länder. Ich würde eine Verantwortung für die Zeit seit 1995 akzeptieren, weil wir seither wissen, was den Treibhauseffekt verursacht. Die Verantwortung bis zur industriellen Revolution auszudehnen, ist ethisch nicht gerechtfertigt.

Kann man die Ethik nutzen, um den Stillstand zu beenden?

Das Buch enthält eine Parabel: Eine Gruppe Wanderer, die Weltgemeinschaft, ist in der Wüste unterwegs. Die Industriestaaten trinken das Wasser zur Hälfte aus und sagen dann grosszügig: «Jetzt teilen wir den Rest!» Da sagen die anderen: «So geht es nicht, ihr habt das Wasser ja schon zur Hälfte geleert. Wir reden jetzt mal über eure historische Verantwortung.» Wir meinen: Wenn wir nur um den Wasservorrat streiten, weil wir uns auf die ethischen Prinzipien nicht einigen können, werden wir verdursten. Was wir suchen müssen, ist eine Oase, das ist die kohlenstofffreie Weltwirtschaft. Es geht um den gemeinsamen Aufbruch zu dieser Oase.

Copyright © Neue Zürcher Zeitung AG

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The Big Money & The Global Governance/Government Agenda That Fuels Environmentalism

12 oktober, 2010

I have written many, many posts in this blog about the intimidation of people and blatant censoring of facts done in the name of ”science” and Global Warming Hysteria. And that the Global Waming Hysteria has nothing to do with saving the Earth or the environment. It has always been a political agenda.

I have written extensible (over 120 of posts) about the scam called Cap and Trade, –  the Biggest Heist in History-  where BOTH BUYER AND SELLER BENEFITS FROM CHEATING. And we, as taxpayers and consumers pay the prize. It’s an open invitation to fraud and manipulation.

And recognize it for what it is – A GIANT FINANCIAL SCAM that puts all the burden on the common people and does nothing whatsoever for the environment.

The European model is a carnival of corruption, profiteering, speculation and multi-billion-dollar fraud. It’s done nothing to improve the environment while handing undeserved profits to big business and driving up the cost of energy to consumers.

What they are really advocating is huge price increases in the cost of energy, meaning the cost of everything.

That’s it. That’s their plan.

Anything else they say is a lie.

This is a scam to enrich the corrupt.

As always – Follow the money.

Here are some good videos on the big company, organisations and political money behind the Global Warming Hysteria.

Part 1- The Big Money & The Global Governance Agenda That Fuels Environmentalism

Part 2- The Big Business of Scaring America to Death

Part 3- Green Gold: BP, GE & the World’s First Carbon Billionaires

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Why, Mr President, are you deliberately destroying the American way and committing economic harakiri?

21 augusti, 2010

As I wrote in my post Climate Gate – All the manipulations and lies revealed 367:

“President Obama, one of the men behind the Biggest Heist in American History – Cap and Trade, and who at ALL COSTS want to ram through the cap and trade bill, has now put in place an administrative system that allows him, at will, to totally bypass Congress

After the EPA, Health care bill and now the financial bill, they can sneak it trough in big chunks through administrative orders. Not the whole cap and trade bill at once, but in two, tree maybe four steps.

America, your whole system has been hijacked, and you have done nothing, so far, to stop it. What the Obama administration has done during the last one and half year makes a mockery of your constitution and the principle of separation of power.”

These are the “representatives” that rammed through the Obama Care, the financial bill, etc., against the will of the people. They don’t care about the constitution, and they don’t know the difference between the declaration of Independence and the Constitution; and they don’t care that they don’t know.

The people in congress who voted for these bills, this is EXACTLY WHAT THEY WANTED AND INTENDED with these bills. But to get it through Congress they gladly and wilfully lied through their teeth and ears, they even gladly put their lies in writing.

Why? Because they are ramming through their political agenda which they have been waiting and planning so long for to be able do.

As I have been saying all along, it has always been a political agenda – anti human, anti freedom, anti development and anti capitalism. And this Global Warming Hysteria is part of that agenda. It has nothing to do with science, facts or saving the environment or the Earth.

All of this, as always, paid by us, the common people, in the form of taxes, high energy costs and reducing our living standard back to the Stone Age.

And these guys spends billions and TRILLIONS of $ of our tax money.

While they at the same time preach austerity, frugality and sacrifice from us, the taxpayers.

This blatant hypocrisy is so mind numbing that it would be laughable if it weren’t for the fact that these people have the power to force us to obey them.

They are a truly parasitic class in the sense that Karl Marx wrote about it.

How ironic that today most of this parasitic class is leftists and so called “liberals”.

In fact, it is the PERFECT scam and heist – the more they can get you to feel guilty, the more money they earn. And the more control they get over society.

In short, it is very troubling to see a country on a path of economic and political self destruction. But if the present trend continues you are, to put it simple: toast.

Just one small example – the increase in federal taxes and regulations (EPA, Healthcare etc.), the cost of running a business has increased so much during the last year that it has become in many ways uninteresting. On top of that, the huge tax increases that is coming January first next year.

Not to speak about all the uncertainties what is going to happen in the near future.

As more and more people are discovering this and becoming aware of this the biggest heist in American history (see the letter below), President Obama, and his administration, is not doing so well. His approval index is at bottom. As is all the other indicators (see below).

It’s time for the people of America to take their country back. Otherwise the consequences for you as a country are going to be devastating. Especially for the common people. .

Meanwhile, we STILL await Mr. Obama’s explanation why if his ”historic” health care law is so great for America, it’s not good enough for him and his family.

 

          

   

http://www.investors.com/NewsAndAnalysis/Article/544329/201008191822/An-Open-Letter-To-President-Obama.aspx

An Open Letter To President Obama

By JEFFREY S. HOWARD

Posted 08/19/2010 06:22 PM ET

In today’s dangerous world, we need a president with experience, leadership and courage. Unfortunately, you have shown us little of those traits.

Your childhood and younger years denied you the opportunity to grow up as an American man, and that is no fault of your own. Unfortunately, your lack of empathy for and experience of a traditional American upbringing has left you out of touch with those of us who grew up learning the traditions and work ethic of our predecessors.

You have never accepted the honor of military service, or held and survived in any sort of entry-level working position. You are bereft of many of the basic building blocks of a true American personality and worldview.

You have never experienced the icy hand of fear caressing your gut during a firefight when your very survival from second to second depends on your luck, wits, fellow troopers and the grace of God. You have never sweated out a payroll when your receivables are late.

You’ve missed the rewarding feeling of flogging a loaded truck all night to deliver a load 500 miles away at 7 a.m. You never shoveled cow manure for less than minimum wage to earn enough for a rattletrap car. You missed out on greasing dump trucks on the night shift, and never had the opportunity to start out cleaning restrooms and sweeping floors in a factory.

Your education was in the law, and you ignored any opportunity to absorb the lessons of history or the theories of economics. You have never experienced the law of the jungle in the private sector.

While you play golf and basketball and surround yourself with ”the swells” enjoying concerts in the People’s House, those of us in the general public dine on Spam and Costco burgers. I can’t put my wife on a 747 and send her to Spain so she can be ready to spend 10 days on Martha’s Vineyard when she gets back. She works seven days a week and so do I — spreading four full- and part-time jobs between us to make ends meet.

(My explanation: ”Let them eat cake” is the traditional translation of the French phrase ”Qu’ils mangent de la brioche”, supposedly said by a French princess upon learning that the peasants had no bread. As brioche is a luxury bread enriched with eggs and butter, it would reflect the princess’s obliviousness to the nature of a famine.)

I watch in pain while my business venture slides into oblivion and my small IRA erodes as your economic policies push the nation into a double-dip recession. This economy is locking up again, and you cannot blame former President Bush. The great construction jobs I created are ending while you pour trillions in borrowed money into the public sector to buy votes. I blame you personally for appointing the ship of fools you have as Cabinet officials and advisers.

You are repeating the gross mistakes of Japan in the ’90s and the Roosevelt administration in the ’30s — both of which failed and lengthened severe economic problems for a decade or more. You are intentionally smothering our private sector with regulations, taxes and mandates at the same time you squander the wages and futures of our children and grandkids.

I deplore your continued efforts to divide the greatest nation of immigrants in the world along race and class lines. Pandering to various groups and attempting to set them against other Americans is demagoguery at its worst. I sincerely hope such actions end up damaging you in the end and not our country.

You will leave office with a big pension, Secret Service protection and gold-plated health care for life. I may well end up with 40 years of hard work down the drain, living in a mobile home in the backwoods.

I do not resent you for your good fortune — you worked hard to become president and won the election fair and square. I do, however, despise your policies and the damage they are visiting on our nation, its economy and our future. I have dedicated my remaining years to fighting you and your policies and protecting our children’s futures.

I may well end up destroyed financially from the results of your misguided and dangerous actions — but you will never break me psychologically or crush my spirit. I am a Marine, I have a wonderful wife and family, and last but not least, I live in the greatest nation in the world. I shall work to my last breath to keep it that way, and you, sir, shall fail to destroy that dream.

• Howard, a Marine Corps veteran, University of Washington graduate and heavy-equipment supervisor for two decades, is now a developer with projects in Washington and Oregon.

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Climate Gate – All the manipulations and lies revealed 362

7 maj, 2010

90% of the European cap and trade is a fraud according to Europol.

Europol, the European criminal intelligence agency, announced that Emissions Trading System fraud had resulted in about 5 billion euros in lost revenues.

Europol said:

“In announcing the raids, the agency said that as much as 90% of Europe‘s carbon trades were the result of fraudulent activity.

”Carbon markets are highly susceptible to fraud, given their complexity and the fact that it’s not always clear what is being traded,” says Oscar Reyes of Carbon Trade Watch.”

This is the he system that Crime Ink wants to force on us, that puts all the burden on the common people and does nothing whatsoever for the environment.

This is a scam to enrich the corrupt.

THEN-PRESIDENTIAL CANIDATE BARACK OBAMA:

“Under my plan of a cap-and-trade system, electricity rates would necessarily skyrocket.”

See also my previous post: Climate Gate – All the manipulations and lies revealed 361

Europol announcement:

http://www.europol.europa.eu/index.asp?page=news&news=pr091209.htm

http://euobserver.com/22/29996

http://www.investors.com/NewsAndAnalysis/Article.aspx?id=532610

Europe‘s Carbon Mafia, And Ours

Posted 05/06/2010 07:18 PM ET

Corruption: The carbon trading system being pushed here has spawned crime and fraud across the pond. Cap-and-trade is not about saving the planet. It’s about money and power, and absolute power corrupting absolutely.

All across Europe authorities have been conducting raids, rounding up individuals involved in a new version of Climate-gate. This time the data aren’t corrupted. Europe‘s Emissions Trading System is. The system is so sick, it’s turned out to be a scam built upon a scam.

Twenty-five people have been arrested in raids by British and German authorities as part of a pan-European crackdown on carbon credit VAT tax fraud.

U.K. officials announced raids on 81 offices and homes, nabbing 13 people in England and eight in Scotland. The operation involved 450 investigators from Her Majesty’s Revenue and Customs office.

German authorities raided 230 locations, including the headquarters of Deutsche Bank in Frankfurt and the offices of RWE, one of the largest energy firms in Europe. The German operation involved 1,000 investigators targeting 50 companies and 150 suspects.

The amount of money involved in carbon trading is huge and the temptations vast. While our Congress demagogues about banks and their ”complex financial instruments,” they are simple compared to cap-and-trade, which as we have noted involves essentially the buying and selling of air. Throw in an oppressive value-added tax and you have a recipe for corruption and fraud.

Last December, Europol, the European criminal intelligence agency, announced that Emissions Trading System fraud had resulted in about 5 billion euros in lost revenues as Europe’s carbon traders schemed to avoid paying Europe’s VAT and pocket the difference. In announcing the raids, the agency said that as much as 90% of Europe‘s carbon trades were the result of fraudulent activity.

”Carbon markets are highly susceptible to fraud, given their complexity and the fact that it’s not always clear what is being traded,” says Oscar Reyes of Carbon Trade Watch.

Climate change has been found to be a fraud. Now the system to fight it has been. Yet it’s that system the administration and others want to establish here through cap-and-trade legislation such as Waxman-Markey and Kerry-Boxer.

As we also have noted, the mechanism for such phantom carbon trading here has already been established in the form of the Chicago Climate Exchange. The Joyce Foundation in 2000 and 2001 provided the seed money to start CCX when Barack Obama sat on its board.

CCX founder Richard Sandor estimates the climate trading market could be ”a $10 trillion dollar market.” It is an invitation to fraud that would make Europe‘s ETS scandal seem like petty theft.

In 2000, according to Joyce Foundation records, $347,600 was allocated to Northwestern University‘s Kellogg Graduate School of Management, where Sandor was a research professor, ”to design a Midwestern pilot program for the voluntary trading of carbon dioxide and other emissions that cause climate change.”

Now President Obama would make such carbon trading mandatory, limit total emissions and make carbon as valuable a commodity as booze during Prohibition.

The Joyce Foundation’s two grants totaled just over $1 million. CCX has proved very lucrative for Sandor, whose 8 million shares in the exchange has grown to more than $260 million even before a national cap-and-trade system like Europe‘s is established.

Al Gore, who recently increased his carbon footprint by spending $8.9 million on an oceanview villa near Santa Barbara, Calif., sitting on 1.5 acres with a swimming pool, spa, fountains, five bedrooms, nine bathrooms and no fewer than six fireplaces, is co-founder of Generation Investment Management LLP, the fifth largest shareholder in CCX.

The largest shareholder is, uh, Goldman Sachs. Other CCX founders include former Goldman Sachs partner David Blood, as well as Mark Ferguson and Peter Harris, also of Goldman Sachs. Presumably they know a lot about playing shell games with other people’s money.

What has happened in Europe is going to happen here and may already have begun. We, too, can save the earth for fun and profit.

Läs även andra bloggares åsikter om <a href=”http://bloggar.se/om/milj%F6” rel=”tag”>miljö</a>, <a href=” http://bloggar.se/om/yttrandefrihet” rel=”tag”>yttrandefrihet</a>, <a href=”http://bloggar.se/om/fri-+och+r%E4ttigheter” rel=”tag”>fri- och rättigheter</a>, Läs även andra bloggares åsikter om <a href=” http://bloggar.se/om/USA” rel=”tag”>USA</a>

New post at the Daily Bayonet

7 maj, 2010

The Biggest Heist in American History – Cap and Trade 2

Läs även andra bloggares åsikter om <a href=”http://bloggar.se/om/milj%F6” rel=”tag”>miljö</a>, <a href=” http://bloggar.se/om/yttrandefrihet” rel=”tag”>yttrandefrihet</a>, <a href=”http://bloggar.se/om/fri-+och+r%E4ttigheter” rel=”tag”>fri- och rättigheter</a>, Läs även andra bloggares åsikter om <a href=” http://bloggar.se/om/USA” rel=”tag”>USA</a>

Climate Gate – All the manipulations and lies revealed 361

2 maj, 2010

I have written extensible (over 100 of posts) about the scam called cap and trade, where BOTH BUYER AND SELLER BENEFITS FROM CHEATING. And we, as taxpayers and consumers pay the prise. It’s an open invitation to fraud and manipulation.

And recognize it for what it is – A GIANT FINANCIAL SCAM that puts all the burden on the common people and does nothing whatsoever for the environment.

The European model is a carnival of corruption, profiteering, speculation and multi-billion-dollar fraud. It’s done nothing to improve the environment while handing undeserved profits to big business and driving up the cost of energy to consumers.

Well here is the latest episode of “The Sopranos”, where Glenn Beck gives a very good overview of the people and politicians pushing the Cap and trade and the Chicago Climate Exchange (CCX), and their HUGE financial gains from this.

And these guys spends billions of $ of our tax money.

What they are really advocating is huge price increases in the cost of energy, meaning the cost of everything.

That’s it. That’s their plan.

Anything else they say is a lie.

This is a scam to enrich the corrupt.

THEN-PRESIDENTIAL CANIDATE BARACK OBAMA:

“Under my plan of a cap-and-trade system, electricity rates would necessarily skyrocket.”

Läs även andra bloggares åsikter om <a href=”http://bloggar.se/om/milj%F6” rel=”tag”>miljö</a>, <a href=” http://bloggar.se/om/yttrandefrihet” rel=”tag”>yttrandefrihet</a>, <a href=”http://bloggar.se/om/fri-+och+r%E4ttigheter” rel=”tag”>fri- och rättigheter</a>, Läs även andra bloggares åsikter om <a href=” http://bloggar.se/om/USA” rel=”tag”>USA</a>


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