Goldman Sachs - Looting America by Buying the Government

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DrKrbyLuv's picture
DrKrbyLuv
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Goldman Sachs - Looting America by Buying the Government

Culture of Life News - Unlike in the Crash of 1929 and the grinding collapse of credit creation that followed, we see little to no reforms this time around.  Unlike in 1929, the Federal Reserve and the US government are both very reckless and are using all sorts of dangerous tricks to paper over one of the biggest credit collapses in the history of banking. Thanks to these ‘rescues’, we lost the last remnants of our auto industry and are far worse off than before in regards to public finances.  But the gangs who created this credit bubble are doing just great, thanks to the heroic efforts of our besotted government!  And so they are rewarding themselves with even bigger bonuses than ever before.

Goldman Sachs should have been forced into bankruptcy.  Ditto, JP Morgan and the other top 5 derivative swap dealers.  All of them were essentially bankrupted by the collapse of the AIG consortium.  Instead of forcing these massive entities to vanish like all the many destructive ‘Trusts’ that vanished in 1929, instead of outlawing OTC markets and zeroing out the derivative swap markets, the US government took on over $13 trillion in potential future obligations in order to keep AIG, Goldman Sachs, JP Morgan, Citigroup, Bank of America, etc, afloat.

These parasitical operations exist for one reason only, the flood the world with excess credit while giving themselves a cut of the action.   When given a choice between rescuing them and rescuing our auto industries, the answer should have been obvious: throw the piratical bankers overboard to be eaten by the sharks and save our domestic manufacturing base!  Duh!

The reason why our government did the exact opposite is obvious: the gnomes who ran our entire planet’s financial system into a deep pit of darkness own our government via ‘election donation’ bribes while the US auto unions are decimated and weak and the working base has had its balls clipped and is no longer a wolf contending for power but rather, a lap dog that is easily whipped and sent away, tail between its legs. 

Goldman Sachs to make record bonus payout | Business | The Observer

A lack of competition and a surge in revenues from trading foreign currency, bonds and fixed-income products has sent profits at Goldman Sachs soaring, according to insiders at the firm. Staff in London were briefed last week on the banking and securities company’s prospects and told they could look forward to bumper bonuses if, as predicted, it completed its most profitable year ever. Figures next month detailing the firm’s second-quarter earnings are expected to show a further jump in profits. Warren Buffett, who bought $5bn of the company’s shares in January, has already made a $1bn gain on his investment…. Last week, the firm predicted that President Barrack Obama’s government could issue $3.25tn of debt before September, almost four times last year’s sum. Goldman, a prime broker of US government bonds, is expected to make hundreds of millions of dollars in profits from selling and dealing in the bonds.

The US government is issuing $3.5 trillion in debt in order to bail out the entities who are now selling this debt!  And the very same characters who destroyed our economy are now seeing record profits selling the debts we are taking on, and thus, rewarding themselves!  First off: why use these gnomes to sell our debts? Indeed, the question really is, why are we selling debts, in the first place? Why is our entire culture predicated on creating increasing debts and then selling these to outsiders via private investment houses that use this flow of funds in order to increase credit creation?

The blatant refusal to even try to understand what happened this last cycle of bubble/collapse is at the heart of the matter.  People in power don’t want to listen to people like me.  ’You are crazy’, they hiss as they rush off to another international symposium surrounded by armed troops and military goons.  The same Bilderbergers who are filled with joy to see Iran’s people resist government domination are the exact same clowns who will shoot anyone who approaches their many secret and public gatherings where they pick and choose what to do next.

It is painfully obvious now, they have goals which clash with the desire to survive for the masses.  And the one thing these elites fear most is, the public rising up in physical fury and taking to the streets like in Iran and literally fighting for recognition and cleaning up of government corruption.  The Goldman Sachs corruption system is obvious: GS owns our government.  This is why our government saved GS, gave GS tons of wealth in the form of fees and percentages, and now GS is doing just great while all other sectors in our economy that impact us all very heavily, are in steep decline.

Goldman’s Blankfein issues apology as bank prepares to repay $10bn – Telegraph

“We know that we have an explicit contract with our shareholders to be responsible stewards of their capital. . . we regret that we participated in the market euphoria and failed to raise a responsible voice.…”

GS didn’t merely participate in a ‘euphoric’ situation: they were the ones who were pouring the drinks and spiking it with drugs.  They were the criminals who created this euphoric based on false systems.  They are the ones who created, fed and protected the Over The Counter Swap games.  They engineered this ‘euphoria’ and claimed, they got rid of all risk so they didn’t need any capital to run the system.  They conspired with AIG to build up a derivatives market swap meet that ended up exploding in size until it dwarfed all existing wealth on earth, all economic systems are but drops in the bucket compared to this insane derivative swap system that is still over $500 trillion in size!

Drug dealers and bar tenders are not ‘responsible’ people.  They are enablers, pushers and want people to drink too much, take too much drugs and in general, create chaos at night.  Like gambling casino operators who, incidentally, flourished alongside with the rise of the top derivative banking groups, are leeches on the economic system, not creators of wealth.  They are immoral, not moral.  We allow a certain amount of drinking and gambling because humans love doing this and outlawing it simply makes it more criminal.  But encouraging and protecting these immoral operations is pure insanity.

The difference between creation of real wealth and fake wealth is important!  Real wealth always comes directly from Nature and humans interacting with Nature.  Adding human labor to the underlying physical systems such as soil or minerals or crystals, turning these things, turning animals and plants into value-added products is what real wealth really is.  In opposition, there is imaginary wealth.

Imaginary wealth is numbers, paper with writing on it that indicates values attached to economic systems, it is bets placed on systems such as the stock or the derivatives markets.  It is a support system.  When the imaginary paper system that supports the real economic process becomes more powerful than the economic base, it hijacks all systems and we end up going very deeply into debt, protecting the imaginary economic systems rather than the very real parts. And this, in a nutshell, is why the US is rapidly turning into a third world bankrupt rather than being a powerful empire.

They were rescued by GS former president, Hank Paulson, when he was Treasury Secretary.  To save GS and JP Morgan, the government had to bail out AIG.  AIG was so corrupt, even as they were going bankrupt, they spent money on bonuses and fancy vacations even as they were begging for hand outs.  The US has capitalized AIG to the tune of nearly $100 billion and climbing.  This is actually a transfer of taxpayer future earnings to Goldman Sachs and the other top derivative swap players.

The outrage over the bonuses for AIG executors is a ploy to deflect from the true scandal: how AIG enabled the derivatives over the counter swap business.  The payout of the collapse of Lehman never really happened. The US government did more than 80% of the payout.  This payout should have never, ever, ever happened.  The crime was tricking the US public into bailing out AIG so the bettors in that particular casino could collect their deals and run off, leaving the taxpayers to clean up the mess in this casino. 

‘Impossible to Understand’ Swap Burns 290-Person Italian Hamlet – Bloomberg.com

Derivatives have burned towns from Polino to Milan to Erie, Pennsylvania. Jefferson County, Alabama, said it might need to declare bankruptcy because of costs associated with the contracts. Responsibility for the expenses in Italy’s second- biggest city and in Umbria’s smallest village sits with elected officials who agreed to financial instruments they didn’t fully grasp, said Stefano Taurini, a lawyer who specializes in corporate law in Milan….

In Italy, some 600 local authorities had taken out more than 1,000 derivative contracts on about 35.5 billion euros of debt by the end of last year, according to national Treasury data provided to the Italian Senate Finance Commission.

The governments had unrealized losses of 1.93 billion euros on over-the-counter derivative bets placed with Italian banks and local units of foreign banks at the end of 2008, according to data from the Rome-based Bank of Italy, the country’s central bank….

Jefferson County, Alabama’s most populous, last year defaulted on $3.2 billion of debt amassed during the construction of its sewer system. More than $3 billion of that carried floating interest rates and used derivatives to protect against the risks.

And who sold these derivatives? Goldman Sachs! All the top 5 US investment banks as well as a group of 5 European and UK investment banks all sold this garbage to unsuspecting officials all over the planet. Now, the taxpayers must bail out the governments who bought these things created and sold by GS and all the other crooks. So who gets bailed out?

The sellers of these destructive derivatives! As many municipalities, states and even entire countries fall off the economic cliff and are plunged into political and social chaos, the cause of all this is left to grow even stronger and richer, and this, via a global taxpayer-funded central banking rescue operation?

Good grief. We should be taking notes as to how to run a revolt. Study the actions in Iran and see how popular anger can be channeled into resistance. After all, our own rulers have made it very clear, these sorts of rebellions are great and good and should happen! Culture of Life News - Complete Article

strabes's picture
strabes
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Re: Goldman Sachs - Looting America by Buying the Government

Excellent article with an appropriate level of rage stemming from rationally understanding the irrational system.  This is a glimpse of what a real media would be talking about.  Instead we get miss america pageant winners and tall guys with nice teeth and big hair reading talking points from the establishment political parties.  

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jerrydon10
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Re: Goldman Sachs - Looting America by Buying the Government

What a great, right on read. I just want to add a news tidbit that adds more to the article:

"WASHINGTON — Treasury Secretary Timothy Geithner picked a former Goldman Sachs lobbyist as a top aide Tuesday, the same day he announced rules aimed at reducing the role of lobbyists in agency decisions.
 

Mark Patterson will serve as Geithner's chief of staff at Treasury, which oversees the government's $700 billion financial bailout program. Goldman Sachs received $10 billion of that money."

The fox is now running the henhouse.

http://www.usatoday.com/news/washington/2009-01-27-lobbyist_N.htm

cannotaffordit's picture
cannotaffordit
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RE: Looting America, WITH the Government's help

 Probably not many people really care.....but......today I got a phony email from the White House, telling about how they are working so hard with their "Task Force" to help the middle class, and soliciting each of us to give something of our time and talent to try to help them do better by the middle class.  I lost it, and just unloaded on them, telling them in specific words that if they gave a d - - - about the middle class working people they would be doing something to help them instead of focusing all their REAL time, effort and money on bailing out the crooks who got us into this mess in the first place.  

So, IF you happen to get a similar e-mail from the Obummer administration, that was going to bring us so much positive change but instead have just continued and enlarged most of the policies of the previous administration, I hope you will take advantage of the opportunity to tell them what you think too.   Not that it makes much difference, I guess.  We really only have one party in this country anyway, and that's the party of the wealthy/greedy/financial/corporate/congressional elite.

I don't know about you, but I am sick to my stomach with the whole bunch, including the lobbyists, and especially the Fed. Res.

 

(OMG, I hope they're not coming after me for saying that.)

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DavidC
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Re: Goldman Sachs - Looting America by Buying the Government

Ben,

Are you saying that the mail WAS phoney or not? If it was, why your post?

DavidC

cannotaffordit's picture
cannotaffordit
Status: Gold Member (Offline)
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Posts: 273
Re: Goldman Sachs - Looting America by Buying the Government

 Oh no, David.  It was definitely from the White House.  Sorry.  The way I wrote it sounded like the email could have been phony, but it wasn't.  Just another PR scam from WH as far as I'm concerned.  

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DavidC
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Re: Goldman Sachs - Looting America by Buying the Government

Thanks Ben. Well done for unloading!

DavidC

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Headless
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Goldman's latest scheme

"Goldman Sachs rumored to be buying derivatives that only pay off if their offices are truck-bombed by terrorists."

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jerry_lee
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Joined: Sep 24 2008
Posts: 126
Paybacks are.....

We pay our tax

To Goldman Sachs

And that's the facts.

They turn a profit

To the max

To fill their golden

Bonus sacks,

Then build their mansions

On our backs.

With the devil

They've made their pacts.

Do they know the price

That he exacts?

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