The Road to Financial Serfdom: The Official Disconnect of Main Street from Wall Street and the Financial Mainstream Media.
- 4 Comment
On Thursday with the S&P 500 inching closer to the 1,000 mark it is near impossible to silence the “recession is over” media hype. Of course, this is the same media that missed the biggest economic collapse since the Great Depression but here they are predicting the end of the recession. The problem of course is they do not define the end of the recession clearly. In their mind’s eye, the end of the recession means Wall Street profits and largesse pouring into the banking coffers. What about jobs? What about $14 trillion in lost household net worth? The U.S. Treasury and Federal Reserve are suddenly neo-Keynesians but only when it comes to saving themselves which is convenient. If you think of the stimulus plan for example, it was passed in February and had a price tag of $789 billion. This may seem gigantic but compared to the $13.5 trillion banking and Wall Street bail out it is relatively small.
Yet many people forget how that money was spent or will be spent:
Now the above gives you a general sense of the plan. Much of the money sent to states is already spent. Not much stimulus occurred here because states used the funds to patch up brutal deficits like those being experienced in California. Also, a large portion of the money was in tax cuts. That amount is $282 billion. Much of that money is already factored into the current economy. Yet the stimulus bill was more like a band aid and less of a stimulus plan. The overall idea of a stimulus bill is to create jobs but when you dig into the bill, there really wasn’t much money dedicated to this. However, let us now look at the Wall Street and banking bail out:
*Source:Â Bloomberg
In fact, if we look at only two line items here, the Term Auction Facility and the Currency Swaps program, these two dwarf the 2009 stimulus bill. So why is the stock market rallying yet 26,000,000 people are unemployed or underemployed? Because Wall Street has become a casino and most of the “bail out” funds have gone to the rigged banking system. Keep in mind this is the same banking system that created collateralized debt obligations trying to convert toxic waste mortgages into “solid investments” and sold them off to so-called investors. This is the same industry that hungered for subprime mortgage debt and allowed the real estate industry to give loans to anything and everything. This is the same Wall Street that held the American public financially hostage last September and October. This is the same industry that offered wicked incentives to the real estate industry for finding any loan even if it was fraudulent to put into their mortgage-backed security portfolios.
So on the one hand, we have a stimulus bill of $787 billion that people can feel and then you have $13.5 trillion committed to the banking and Wall Street bail out with already $4+ trillion used. And you wonder why the stock market is up 46.5 percent in four months? The stock market is no longer connected to main street. Take a look at some mainstream media analysis of this:
*Source: Futurnomics
What can be more telling than that CNBC screen capture stating the recession is over and then, right beneath it you see the Bank of America and Merrill Lynch logos? The recession may be over for Wall Street and banks thanks to the $13.5 trillion committed but Main Street is still very much in a recession.
Keep in mind the U.S. Treasury and Federal Reserve have already committed this money and we still have the $3 trillion commercial real estate bubble that will burst and we have covert action like Plan C where they are preemptively getting ready to use taxpayer money to bail out more toxic financial waste.
Why is all this failing so miserably for the public? We have the worst of Keynesian thought mixed in with the worst of free market thinking. In a nut shell, Keynesians believe that in difficult economic times the government should step in to create an environment that will help economic conditions by stimulating work and demand. In war, this works perfectly as it did after World War II and issued in 30 years of prosperity for the U.S. Yet using too much of this during peacetime will create problems like the 1970s stagflation. That is, politicians will use Keynesian mixed-market planning in times of political desperation like when Nixon stated, “I am now a Keynesian” and was re-elected for a second term in a very difficult economic climate. An advisor to Nixon at the time Milton Friedman chastised his action but that is how politicians will operate in desperate times.
After that, the school of free market thought entered and de-regulation was put up on a mantle. This led to economic recovery but also gave us the S&L crisis and was a precursor to our current financial de-regulated mess. Unfortunately, it would seem that we are using the worst of both systems. We are using Keynesian principals to bail out the so-called free market banks. They are using both theories of Hayek and Keynes in completely unjustified ways. We really have no idea how things will end but many Americans are feeling as if they are on path to financial serfdom.
We have bankruptcies rising at colossal speed. The 30 year housing bubble has burst with deep consequences. We keep borrowing money every day from our foreign lenders. Unemployment is still rising with the real unemployment rate closer to 17 percent. Keep in mind that even though we are not flying off the edge, companies are not hiring. That is the second part of the equation that is leading to modern serfdom. Sure, companies may not be laying off current employees at the peak levels of this recession but they are not hiring either:
*Source:Â Gallup Poll
As usual, it pays to look at who is doing the hiring instead of clamoring around Wall Street and the mainstream media analysis like middle school girls. As you can see from the above, those letting people go is still high. We went from about 40 percent of those surveyed in February of 2008 saying they were hiring to the current 22 percent. Those letting go was about 11 percent in February of 2008 and now it is near 27 percent. But again, who needs a job when you have trillions funneling into Wall Street. And what good is a tax cut when you are unemployed?
The road to financial serfdom is paved with bad intentions here. The U.S. Treasury and Federal Reserve are operating under the premise of “what is good for Wall Street is good for America.” It is not. When are we going to investigate Wall Street with a strong arm? And don’t you think it would make sense to investigate why things failed before committing $13.5 trillion to the cause? Interesting how they already know how much money they need right? That is why you shouldn’t be surprised when you get reamed with another trillion for commercial real estate, more trillions in bad toxic mortgage debt, and the government running to bail out Wall Street for bad bets.
You cannot be dogmatic in these cases but it is incredible what is happening. Looks like the financial overlords on Wall Street want to make Americans into their financial serfs. Who needs a job when you can watch CNBC all day and watch them drink champagne while they cheer big earnings for banks since trillions has been given to this industry? Hard to lose money with a trillion safety net.
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THE AGENDA ISN'T A FINANCIAL ONE FOLKS.. said:
you need to read this. it is very relevant to what the U.S. government is about ready to do:
this document reads authentic, and I have no doubt about the veracity of it:
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TBRN News
7-18-7Green Zone Follies
BAGHDAD — “Yesterday, one of my good friends from another office was telling me they were going to start issuing armored vests to us office types because of the growing danger from mortars. We are being shelled daily and, like everything else, casualties are way underreported . But more important than the flak vests was a file he had copied out and which he gave to me to smuggle out of the country. As I have said, we have strict censorship here on all incoming and outgoing snail mail, email, phone calls and so on. This report is so serious I am making a précis of it and am even now sending it around to various news outlets, both Stateside and elsewhere. I have my sources and believe me, the CIC people here are so stupid they couldn’t pour piss out of a boot if the directions were on the bottom.
It states that because of “growing popular unrest in the United States, caused by the prolonged war in Iraq .coupled with obvious Congressional inaction,” the U.S. military has drawn up plans for combating domestic U.S. civil insurrections. This is not a theoretical study but a very specific one. Units to be used domestically are listed in detail as are detention centers, etc.
As a result of this, plans are now in train to segregate, retrain and reequip certain anti-insurgent U.S. military units now serving in Iraq and to prepare them for quick transfer back to the United States for use “as needed” The Pentagon command believes that such civil insurrections are not only a possibility but a very real probability in the event that the President and his advisors maintain their present course vis a vis the Iraqi war.
It is interesting to note that “foreign intelligence representatives, now active in the United States” (read Mossad) are to be subject to “arrest, confinement and eventual deportation to their country of origin.”
The report and several attached ones, run to almost 900 pages and cannot be put up in their current form. However, I will list some of the more important data here:
Classification: Top Secret-Noforn as of 1 June 2007
Distribution Restriction: Distribution authorized to the DOD and DOD contractors only to maintain operations security. This determination was made on 1 June 2007. Other requests for this document must be referred to (redacted)
Destruction Notice: Destroy by any method that will prevent disclosure of contents or reconstruction of the document. .
This publication uses the term insurgent to describe those taking part in any activity designed to undermine or to overthrow the established authorities
Counterinsurgency is those military, paramilitary, political, economic, psychological, and civicactions taken by a government to defeat insurgency (JP 1-02). It is an offensive approach involving all elements of national power; it can take place across the range of operations and spectrum of conflict
In dealing with the local populace, the primary aims must be to:
·Protect the population.
·Establish local political institutions.
·Reinforce local governments.
·Eliminate insurgent capabilities.
·Exploit information from local sources.
An insurgency is organized movement aimed at the overthrow of a constituted government through use of subversion and armed conflict (JP 1-02). It is a protracted politico-military struggle designed to weaken government control and legitimacy while increasing insurgent control. Political power is the central issue in an insurgency.
An insurgent organization normally consists of four elements:
Leadership.
Combatants (main forces, regional forces, local forces).
Cadre (local political leaders that are also called the militants).
Mass base (the bulk of the membership).
A perceived serious potential of dissident American groups rising up against constituted authority has been clearly identified by counter-intelligence agencies.. The stated cause for such an uprising appear to be growing dissatisfaction with the course and conduct of the war in Iraq, the chronic inability of Congress to deal with various pressing issues and the perception of widespread corruption and indifference to public needs.
The support of the people, passive or active then, is the center of gravity. It must be gained in whatever proportion is necessary to sustain the insurgent movement (or, contrariwise, to defeat it). As in any political campaign, all levels of support are relative.
Insurgent movements begin as “fire in the minds of men.” Insurgent leaders commit themselves to building a new world. They construct the organization to carry through this desire. Generally, popular grievances become insurgent causes when interpreted and shaped by the insurgent leadership. The insurgency grows if the cadre that is local insurgent leaders and representatives can establish a link between the insurgent movement and the desire for solutions to grievances sought by the local population
Insurgent leaders will exploit opportunities created by government security force actions. The behavior of security forces is critical. Lack of security force discipline leads to alienation, and security force abuse of the populace is a very effective insurgent recruiting tool. Consequently, specific insurgent tactical actions are often planned to frequently elicit overreaction from security force individuals and units.
Insurgencies are dynamic political movements, resulting from real or perceived grievance or neglect that leads to alienation from an established government.
A successful counterinsurgency will result in the neutralization by the state of the insurgency and its effort to form a counterstate. While many abortive insurgencies are defeated by military and police actions alone, if an insurgency has tapped into serious grievances and has mobilized a significant portion of the population, simply returning to the status quo may not be an option. Reform may be necessary, but reform is a matter for the state, using all of its human and material resources. Security forces are only one such resource. The response must be multifaceted and coordinated, yet states typically charge their security forces with “waging counterinsurgency.” This the security forces cannot do alone.
These imperatives are-
· Facilitate establishment or reestablishment of a ‘legitimate government’.
· Counterinsurgency requires perseverance.
· Foster popular support for the incumbent US government.
· Prepare to perform functions and conduct operations that are outside normal scope of training.
· Coordinate with US governmental departments and agencies, and with vital non-governmental, agencies.
Urban operations.
· Protection of government facilities.
· Protection of infrastructure.
· Protection of commercial enterprises vital to the HN economy.
· Protection of cultural facilities.
· Prevention of looting.
· Military police functions.
· Close interaction with civilians.
· Assistance with reconstruction projects.
· Securing the national borders.
· Training or retraining a national military police and security force.
Establishing and maintaining local government credibility.
· Contributing local government is both tangible and psychological. Local security forces must reinforce and be integrated into the plan at every stage.
· Facilitate and use information and intelligence obtained from local sources to gain access to the insurgent’s economic and social base of support, order of battle, tactics, techniques, and procedures.
Army forces help local pro-government police, paramilitary, and military forces perform counterinsurgency, area security, or local security operations. They advise and assist in finding, dispersing, capturing, and destroying the insurgent force.
US forces may conduct offensive operations to disrupt and destroy insurgent combat formations. These operations prevent the insurgents from attacking government-controlled areas.
There are many organizations and extensive resources available to aid counterinsurgent forces.
Commanders should not overlook the aid these organizations may provide. All forces assigned an AO or function should determine which departments and agencies are assisting in that AO and coordinate actions so that there is no duplication of effort. Such departments,
councils and agencies include-
· National Security Council.
· Department of Defense.
· Department of State.
· Department of Justice.
· Department of the Treasury.
· Department of Homeland Security.
· Department of Agriculture.
· Department of Commerce.
· Central Intelligence Agency.
· Department of Transportation
Various governmental departments directly administer or support other governmental agencies. Examples of these US agencies are-
· The US Coast Guard (under Department of Homeland Security).
· The Federal Bureau of Investigation (under Department of Justice).
· Immigration Customs Enforcement (under Department of Homeland Security).
· Federal Communications Commission
. The proper application of force is a critical component to any successful counterinsurgency operation. In a counterinsurgency, the center of gravity is public support. In order to defeat an insurgent force, US forces must be able to separate insurgents from the population. At the same time, US forces must conduct themselves in a manner that enables them to maintain popular domestic support. Excessive or indiscriminant use of force is likely to alienate the local populace, thereby increasing support for insurgent forces. Insufficient use of force results in increased risks to US forces and perceived weaknesses that can jeopardize the mission by emboldening insurgents and undermining domestic popular support. Achieving the appropriate balance requires a thorough understanding of the nature and causes of the insurgency, the end state, and the military’s role in a counterinsurgency operation. Nevertheless, US forces always retain the right to use necessary and proportional force for individual and unit self-defense in response to a hostile act or demonstrated hostile intent.
The media, print and broadcast (radio, television and the Internet), play a vital role in societies involved in a counterinsurgency. Members of the media have a significant influence and shaping impact on political direction, national security objectives, and policy and national will. The media is a factor in military operations. It is their right and obligation to report to their respective audiences on the use of military force. They demand logistic support and access to military operations while refusing to be controlled. Their desire for immediate footage and on-the-spot coverage of events, and the increasing contact with units and Soldiers (for example, with embedded reporters) require commanders and public affairs officers to provide guidance to leaders and Soldiers on media relations. However, military planners must provide and enforce ground rules to the media to ensure operations security. Public affairs offices plan for daily briefings and a special briefing after each significant event because the media affect and influence each potential target audience external and internal to the AO. Speaking with the media in a forward-deployed area is an opportunity to explain what our organizations and efforts have accomplished.
Continuous PSYOP are mounted to-
· Counter the effects of insurgent propaganda.
· Relate controls to the security and well-being of the population.
· Portray a favorable governmental image.
.Control measures must-
· Be authorized by national laws and regulations (counterparts should be trained not to improvise unauthorized measures).
· Be tailored to fit the situation (apply the minimum force required to achieve the de-sired result).
· Be supported by effective local intelligence.
· Be instituted in as wide an area as possible to prevent bypass or evasion.
· Be supported by good communications.
· Be enforceable.
· Be lifted as the need diminishes.
· Be compatible, where possible, with local customs and traditions.
· Establish and maintain credibility of local government.
A control program may be developed in five phases:
· Securing and defending the area internally and externally.
· Organizing for law enforcement.
· Executing cordon and search operations.
· Screening and documenting the population (performing a detailed census).
· Performing public administration, to include resource control.
Support to the judiciary may be limited to providing security to the existing courts or may lead to more comprehensive actions to build local, regional, and national courts and the required support apparatus. To avoid overcrowding in police jails, the courts must have an efficient and timely magistrate capability, ideally co-located with police stations and police jails, to review cases for trial.
Cordon and search is a technique used by military and police forces in both urban and rural environments. It is frequently used by counterinsurgency forces conducting a population and resource control mission against small centers of population or subdivisions of a larger community. To be effective, cordon and search operations must have sufficient forces to effectively cordon off and thoroughly search target areas, to include subsurface areas.
PSYOP, civil affairs, and specialist interrogation teams should augment cordon and search orces to increase the effectiveness of operations. Consider the following when conducting cordon and search operations:
Cordon and search operations may be conducted as follows:
Disposition of troops should-
· Facilitate visual contact between posts within the cordon.
· Provide for adequate patrolling and immediate deployment of an effective re-serve force.
Priority should be given to-
· Sealing the administrative center of the community.
· Occupying all critical facilities.
· Detaining personnel in place.
· Preserving and securing all records, files, and other archives.
Key facilities include-
· Administrative buildings.
· Police stations.
· News media facilities.
· Post offices.
· Communications centers.
· Transportation offices and motor pools.
· Prisons and other places of detention.
· Schools.
· Medical facilities.
Search Techniques include-
· Search teams of squad size organized in assault, support, and security elements.
One target is assigned per team.
· Room searches are conducted by two-person teams.
· Room search teams are armed with pistols, assault weapons, and automatic weapons.
· Providing security for search teams screening operations and facilities.
Pre-search coordination includes-
· Between control personnel and screening team leaders.
· Study of layout plans.
· Communications, that is, radio, whistle, and hand signals.
· Disposition of suspects.
· On-site security.
· Guard entrances, exits (to include the roof), halls, corridors, and tunnels.
· Assign contingency tasks for reserve.
· Room searches conducted by two- or three-person teams.
· Immobilize occupants with one team member.
· Search room with other team member.
· Search all occupants. When available, a third team member should be the re-corder.
· Place documents in a numbered envelope and tag the associated individual with a corresponding number.
SCREENING AND DOCUMENTING THE POPULATION
Screening and documentation include following:
· Systematic identification and registration.
· Issuance of individual identification cards containing-
A unique number.
Picture of individual.
Personal identification data.
Fingerprints.
An official stamp (use different colors for each administration region).
Family group census cards, an official copy of which is retained at the local po-lice agency. These must include a picture and appropriate personal data.
Frequent use of mobile and fixed checkpoints for inspection, identification, and reg-istration of documents.
Preventing counterfeiting of identification and registration documents by laminat-ing and embossing.
Programs to inform the population of the need for identification and registration.
Covert surveillance is a collection effort with the responsibility fixed at the intelligence/security division or detective division of the police department. Covert techniques, ranging from application of sophisticated electronics systems to informants, should include-
Informant nets. Reliability of informants should be verified. Protection of identity is a must.
Block control. Dividing a community or populated area into zones where a trusted resident reports on the activities of the population. If the loyalty of block leaders is questionable, an informant net can be established to verify questionable areas.
Units designated for counterinsurgency operations
· 115th MIB, Schofield, HI
· 704th MIB, Fort Made, MD, Collaboration with NSA
· 513st MIB, Fort Gordon, GA in Collaboration with NSA
· Arlington Hall Station, VA
· Aberdeen Proving Ground (Maryland)
· US Army Intelligence and Security Command  INSCOM- Huachuca ( Arizona )
· INTELLIGENCE THREAT and ANALYSIS CENTER ( Center Analysis for threat and Intelligence )
· 501st Military Intelligence Brigade EAC
· 3rd Military Intelligence Battalion Exploitation Area
http://www.tbrnews.org/Archives/a2720.htm#004——–
now, if you have any doubts in your minds what these fuckers have in store for us, I suggest you wake yourself up and smell the TREASON..
July 31st, 2009 at 1:36 am -
Zack S said:
“When are we going to investigate Wall Street with a strong arm?”
We are never going to investigate Wall Street because Wall Street is now the government.
For all practical purposes a slow, silent coup has occured over the past few decades as big money bought the goverment. And since they now own it why would they investigate themselves?
I wonder what will happen if the U.S. public ever figures this out. Not that I am counting on that. Aftter all what’s on TV tonight??
July 31st, 2009 at 3:36 am -
Suds said:
Government for the crooks, run by the crooks.
July 31st, 2009 at 5:46 am -
Gry Dla Dzieci said:
Again very long and concrete article about economical issues of last days. I’m really impressed because to write on such high level with so many hard data you must be great expert in this branch. I guess that this blog is one of the finest I’ve visited last weeks, really the posts are so impressive. Is our economical problems really a road to financial serfdom is something other. I would disagree with such statement. I would say that maybe world will come from this a little different but not too much. There is always something that makes us to do the same mistakes – crisis was inducted by one that was not the first and not the last for sure.
August 4th, 2009 at 3:49 am