Are we seeing a 'Controlled Economic Demolition'?

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rowmat's picture
rowmat
Status: Gold Member (Offline)
Joined: Nov 15 2008
Posts: 358
Are we seeing a 'Controlled Economic Demolition'?

After the past two years, especially the last 12 months, I'm beginning to come to the conclusion the final phase of the destruction of the U.S. economy must be nothing less than a deliberate act of 'Controlled Demolition'.

Whether or not Obama is just puppet leader with the 'Men behind the curtains' pulling the strings, or whether the Republicans actually decided not to 'steal' this election and, in conjunction with the Fed and Wall street, adopt a 'scorched economy' policy I don't know, however the latter appears to be the most obvious looking at how this mess is playing out.

The situation is going to surely become far worse than it is now I can't see Obama or the democrats lasting more than one term, unless martial law winds up being implemented before his term is out. Added to this, if one or more of the major auto manufacturers fail next year, and with the first wave of 'boomers' due to retire around 2010 (with what?) the public are going to quickly forget who caused this mess and simply turn to the new admin and ask why things haven't been fixed.

Now I'm reading that they want to take control of private pension funds... is this serious?!!

Now Wall Street Wants Your Pension, Too
http://www.businessweek.com/magazine/content/08_33/b4096000769608.htm

Government To Confiscate 401(k)s and IRAs For Mandatory Savings Tax?
http://www.prisonplanet.com/government-to-confiscate-401ks-and-iras-for-...

"Democrat" 401K Confiscation Proposal is "Republican" Mandatory Savings Plan

http://www.jbs.org/index.php/jbs-news-feed/3957

Dems Target Private Retirement Accounts
http://www.carolinajournal.com/exclusives/dems-target-private-retirement...

More than a year ago the late George Carlin covered this in one of his social commentary rants...

"...And, now, they're coming for your Social Security. They want your f*cking retirement money. They want it back, so they can give it to their criminal friends on Wall Street. And you know something? They'll get it. They'll get it all, sooner or later, because they own this f*cking place..."

It appears he was right on 'the money'

So if we do now indeed have the planned theft of much of the populations retirement savings along with the Governments totally unfunded pension and healthcare liabilites... what then?

The reason I say 'planned theft' is that in light of this ever increasing, taxpayer funded bailout of Wall Street and, if this is indeed true, can it be assumed to be anything less than 'planned theft'?

So let me condense this into a brief scenario...

Imagine, you now have no job, no house, no retirement savings, no social security pension and no health care...

Question:
What will you do?
If you are still breathing by 2012 who will you vote for?
Obama, who precided over the biggest financial and social breakdown in U.S. history?

or...

http://www.abc.net.au/news/stories/2008/11/11/2416949.htm

Before you say don't be ridiculous...

“We live in two Americas. One America, now the minority, functions in a print-based, literate world. It can cope with complexity and has the intellectual tools to separate illusion from truth. The other America, which constitutes the majority, exists in a non-reality-based belief system. This America, dependent on skilfully manipulated images for information, has severed itself from the literate, print-based culture. It cannot differentiate between lies and truth. It is informed by simplistic, childish narratives and clichés...”

http://www.truthdig.com/report/item/20081110_america_the_illiterate/

"I'll be back!... Charley!"

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Re: Are we seeing a 'Controlled Economic Demolition'?

I'm no fan of LaRouche, but this time he might even be right.... 

Federal Reserve: It's finished! LTCM-Type Emergency Bail-Out of Entire Mortgage Market.

April 22 (EIRNS)--Stepping back and reflecting on the pattern
of the past week, it is clear that the Federal Reserve Board of
Governors, in coordination with the Plunge Protection Team, is
attempting to whip together and coordinate a huge bail-out of the
subprime mortgage market, in order to save the entire $16.7 trillion
U.S. mortgage bubble. Such a bailout will end in disaster. Lyndon
LaRouche stated April 22, "The only thing to do is to freeze all the
problem mortgages and to stop the foreclosures, as I've already said.
We have to prevent massive evictions. If what I propose is not done, we
are entering a phase in which what is occurring will blow out the
entire financial system."


There has been an intense two weeks of panicked private and public
meetings. On Monday April 16, a 7 hour meeting was held behind closed
doors, at the Washington, DC headquarters of the Federal Deposit
Insurance Coporation, involving the heads of the FDIC, Fannie Mae,
Freddie Mac, very likely officials from the Fed, as well as leaders of
banks, lending institutions and consumer groups. According to
statements released afterward, those at the meeting "agreed on a goal
of keeping deserving borrowers with high-risk mortgages in their homes."

The next day, April 17, the Federal Reserve Board of Governors released
a joint statement, entitled "Statement on Working with Mortgage
Borrowers," which had been drawn up in coordination with, and signed by
the Federal Reserve; the U.S. Department of Housing and Urban
Development (HUD); the FDIC; the National Credit Union Administration; the Office of the Comptroller of the Currency; and the Office of Thrift Supervision. The statement read in part:

"The federal financial institutions regulatory agencies encourage
financial institutions to work constructively with residential
borrowers who are financially unable to make their contractual payment
obligations on their home loans. Prudent workout arrangements that are
consistent with safe and sound lending practices are generally in the
long-term best interest of both the financial institution and the
borrower.

"Many residential borrowers may face significant payment increases when
their adjustable rate mortgage (ARM) loans reset in the coming months.
These borrowers may not have sufficient financial capacity to service a
higher debt load, especially if they were qualified based on a low
introductory payment....

"The [supervisory] agencies will continue to examine and supervise
financial institutions according to existing standards. The agencies
will not penalize financial institutions that pursue reasonable workout
arrangements with borrowers who have encountered financial problems.
Further, existing supervisory guidance and applicable accounting
standards do not require institutions to immediately foreclose on the
collateral underlying a loan when the borrower exhibits repayment
difficulties. Institutions should identify and report credit risk,
maintain an adequate allowance for loan losses, and recognize credit
losses in a timely manner." (emphasis added)

The highlighted sentence will be remembered from the 1989-92 period,
when in 1991, the Federal Reserve and other regulatory agencies issued
a directive to bank examiners that urged "leniency" and "wide
discretion" in deciding what a bad loan is. An emergency meeting was
held Nov. 7, 1991 in Baltimore, Maryland to emphasize that point. At
that moment, Citibank, America's largest bank, and other banks, had
their books full of bad loans, and were hanging by a thread. The Fed
feared a strict interpretation would push Citibank et al over the edge.

- Bringing in the Wall of Money Bailout -

On April 17, 2007, in accordance with the Federal Reserve's and other
supervisory agencies' statement of the same day, "Statement on Working
with Mortgage Borrowers," a wall of money policy was launched. Daniel
H. Mudd, the chief executive officer of Fannie Mae, testified before
the House Financial Services Committee, that Fannie Mae was altering
its lending standards so that it "could help the subprime market
through this turmoil," adding, "We are concerned about a liquidity
crunch in the subprime segment." Mudd announced that Fannie Mae, the
giant secondary housing market agency, was starting a new program,
"Operation Home Stay," that would funnel funds into the subprime
market. While he did not give a dollar funding figure, press reports
have placed the funding level at between $5 and $20 billion.

On April 18, Freddie Mac, the other giant secondary housing market
agency, announced that it will commit $20 billion to buy fixed-rate and
adjustable rate mortgage (ARM) products, in an effort to provide
mortgage-lending
institutions with more "choices" to offer subprime lenders. Also on
April 18, the Seattle-based Washington Mutual, one of the nation's
largest mortgage lenders, announced a $2 billion program to help
subprime borrowers. As well, on April 18-19, Citigroup Inc. and Bank of
America Corp., announced that they would provide $1 billion in mortgage
refinancing to the nonprofit, Boston-based Neighborhood Assistance
Corporation of America to help those with subprime loans.

Thus, in a 96 hour period, the Federal Reserve and Plunge Protection
Team had organized Fannie Mae, Freddie Mac, and the large money center
banks to commit to a wall of money: thus far, between $28 and $43
billion in bail-out funding. This sum is between seven and ten times
the size of the bail-out that the Fed organized in September, 1998, to
save the LTCM hedge fund. The overriding interest of the Federal
Reserve and the City of London and New York financier oligarchy, has
nothing to do with the individual home-owner. They are trying to save
their bankrupted system. It is evident to all that the full rupture of
the $1.2 trillion market in subprime mortgages would be the trigger to
bring down the multi-trillion U.S. housing bubble, and with it, the
systemic breakdown of the world financial system.

On April 20, LaRouche stated even hundreds of billions of dollars of
bail-outs would not be sufficient, it doesn't take account of the real
scope of the problem. Now is the time to freeze troubled mortgages, and
keep people in their homes.

castlewp's picture
castlewp
Status: Gold Member (Offline)
Joined: Oct 7 2008
Posts: 304
Re: Are we seeing a 'Controlled Economic Demolition'?

TPTB obviously didn't want anyone to rat them out.  Take a look 

 

Maenad's picture
Maenad
Status: Bronze Member (Offline)
Joined: Oct 18 2008
Posts: 43
Re: Are we seeing a 'Controlled Economic Demolition'?
rowmat wrote:

Before you say don't be ridiculous...

“We live in two Americas. One America, now the minority, functions in a print-based, literate world. It can cope with complexity and has the intellectual tools to separate illusion from truth. The other America, which constitutes the majority, exists in a non-reality-based belief system. This America, dependent on skilfully manipulated images for information, has severed itself from the literate, print-based culture. It cannot differentiate between lies and truth. It is informed by simplistic, childish narratives and clichés...”

http://www.truthdig.com/report/item/20081110_america_the_illiterate/

"I'll be back!... Charley!"

That quote reminds me of a book I had to read for an advanced class in social sciences: The Culture of Narcissism. American Life in an Age of Diminishing Expectations by Christopher Lasch. It's a classic, surprisingly easy to read and diligently argued. Any point made that I had a question about would then be answered within the next couple of pages. 

The expectations he writes about are not life expectations as I had expected. They are the expectations that Americans have of each other. I personally found the effect on school students as Lasch describes it to be profoundly enlightening even though he was writing at the end of the 1970s. He was already warning that the culture was becoming pathological back then, so he's probably been spinning in his grave for the entire length of the Bush Administration!  I doubt even he could have imagined the culture reaching such extremes.

Maenad

 

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