Tuesday, 20 October 2009

America's oligarchs gorge again

In this post I referred to an article by Matt Taibbi in Rolling Stone which described Goldman Sachs as “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money”.

The scale and depth of their effrontery is so great that one is left with the impression that they don't care what anyone thinks anymore. And maybe they’re right. Maybe they are beyond control.

Think of it this way. At the height of the crisis a little over a year ago GS was essentially broke. The $15 billion in derivative contracts that they had insured with AIG were in effect worthless because AIG didn’t have any money. As we all know, the government, in the person of ex-GS CEO Hank Paulson, rescued AIG, which then immediately paid off GS in full. No 20 cents in the dollar shit for Goldman. In addition, with the government guarantee in place GS could now borrow more than 20 times their asset base at a rate of about 1% from the Feds’ printing machine.

Nice position to be in, especially when two of your main rivals (Lehman’s and Bear Sterns) had been allowed go bust (by the same people who rescued GS). And even more especially when TARP-related and other distressed assets were now available at a fraction of their original prices. Any fool could make hay in such circumstances, and whatever GS are, they’re not fools. The money started rolling in once again.

The fact that virtually all of the new multi-billion dollar profits come from trading (i.e. gambling), adding no value at all to the real economy is bad enough. But GS now plans to distribute billions in bonuses while the real American economy languishes in recession, businesses starved of cash and unemployment at record levels.

Throughout this crisis, before and since, the SEC and the Feds generally, were at best criminally negligent, at worst in on the scam. It’s a moot point whether the real story of what happened will ever emerge. But you would expect one thing at least to emerge from this whole sorry mess. That the Augean Stables of the SEC would be thoroughly cleaned out and that the new controllers there would be powerful, heavyweight and independent.
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But what do we get? The appointment of a twenty-nine year-old nobody from GS as its enforcement division's first chief operating officer! All we know about Adam Storch is that he previously worked in Goldman's business intelligence unit. Oh wait! We also know that seven years ago he was sorting mail at Deloitte’s Buffalo office. Yes, that's the new fox in the hen-house. This appointment is so grotesque that to me at least it says that GS realises that it is simply unaccountable and doesn’t care what anyone thinks. It will continue to loot until there’s nothing left.
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And there may be little or nothing left of the American economy in due course. Real unemployment heads towards 20% as manufacturing is outsourced to cheaper locations, while low-priced foreigners are brought in to boost profits and further reduce the share accruing to America’s middle and lower classes. Meanwhile the dollar continues its precipitous decline against what would before have been considered basket-case currencies, driving the national debt still further into the stratosphere.

In Europe this would lead to riots and peasants with torches heading for the castle. But the MSM in the US, almost all owned by mega multinational corporations, sing from the same song sheet in supporting globalisation and mass immigration. The politicians have been bought and paid for, so it’s hard to see where a solution will come from.

Meanwhile, as airline pilots subsist on $40,000 a year and food stamps, the people who caused the mess can resume raking in their multi-million dollar bonuses. And GS need have no worries. They form the nucleus of the Obama economic regime just as they did under Bush. The original heist was the brainchild of GS alumni Robert Rubin and Larry Summers, while the bankrupting of their main competitors and the disbursal of billions in taxpayers funds was arranged by GS alumnus Hank Paulson. Tim Geithner owes everything he has to Summers and Rubin and is seen as a ventriloquist’s dummy in their hands.

The vice-like grip of GS is even worse under the current administration. I began to research it but found so many that I gave up. Try it yourself! Obama has been bought more solidly than Bush.

Scary stuff.

Where will it all end?

29 comments:

Anonymous said...

Where will it all end indeed? One thing for sure, the end of America as we've known it.

Anonymous said...

Now wonder they are always coming up with new ways to disarm the public. What really brings down tyrannical regimes is nothing more simple than the army refuses to shoot the people any more.

When the food riots start in 2012 as gerald celente says, will the power elite be able to hide behind the army braying about the "rule of law" or will they get what they deserve?

Anonymous said...

You are right, of course; which at the same time makes Communism sound good.

kulak said...

Where will it all end?

Lesson: Before naming a bank after yourself, change your name to Douglass.

Seriously, this isn't entirely fair to Goldman.

... the Augean Stables of the SEC would be thoroughly cleaned out and that the new controllers there would be powerful, heavyweight and independent.

You're asking for what does not exist. The only people who know the nuts and bolts well enough to counter the critiques of the industry incumbents all know each other and think the same way. Ron Paul's right, but he can't counter the infinite train of caveats and objections -- many of which are real, describing real pains involved in moving away from the system. If he had any charisma he'd be shot; instead he gets nowhere.

Ultimately, most of the financial innovations of today will simply be made illegal.

I'm not so sure unemployment in America is at a record. Not when controlling for race. Just like American school performance isn't so bad at all, controlling for race.

(If you ever wanted to know how to get a level of unemployment worthy of France but without France's safety net and bennies, you now know: Import lots of darkies.)

In Europe this would lead to riots and peasants with torches heading for the castle.

I'm not so sure. As big as the bailout of AIG was, the fed extended dollar swaps to major European banks to the tune of nearly $600 billion dollars because their hedges blew up. Everybody over there (plus Japan) made the same kinds of trades in order to buy (primarily) dollar-denominated non-bank debt instruments, and the crowded trades blew up.

Joe O'Neill said...

I detect a touch of socialist disgust in the tone of the blog.I am a capitalist and proud of it.I was born in the Blitz, lived for the first fifteen years of my life in a council owned pre-fab, I have worked hard ( and am still doing so), I have invested in shares, property and gold, but nothing in my children's education other than to get them up to school leaving age.This obsession that some people have with other people's wealth is ridiculous.If the state was not happy with Goldman Sachs why did they not let them go to the wall , that is the non socialist way,instead they applied a socialist principle of interventionism and then moaned when it worked.If a business is no good then it must GO just like Pan-Am,BSA,Triumph Woolworths Etc and hundreds of other dead beats, but for goodness don't prop them up and then moan because it was sucessful.It now appears from what is beginning to emerge is that the 'so-called' NWO does actually exist but instead of being some airy fairy Jewish conspiracy it is being run by closet communists who are infiltrating all sorts of odd ball organisations from 'Friends of the Earth , Greenpeace, and various anti capitalist groups that protest at G20 meetings.Viva Capitalism Viva ( And Fuck the poor for they will drag us all down)

Anonymous said...

Europe's in more shit than America, recession/depression or no. And here's an interestin gfact: most illegal Mexicans here actually file & pay income taxes to the IRS! Our govt knows this but does nothing. "No taxation without representation"???

SAVANT said...

Joe - maybe old habits die hard, huh? Regarding being a proud capitalist, ok, but are you proud of what's going on in the US at the moment? As I see it it's capitalism for the ordinary people and socialism for the mega wealthy.

The difference between Europe and america is that the former has strong social safety nets. For the moment anyway as they're currently collapsing under the wieght of massive numbers of unproductive turd worlders.

Kulak - I don't disagree with you. My point really is that GS do appear to be at a stage of control where they just dont care what people think. Now THAT is scare/

emmet_cad said...

Many commentators see the real unemployment rate in the US as heading for 20% as those more than a year out of work fall off the ststistics.

kulak said...

One more thing:

The original heist was the brainchild of GS alumni Robert Rubin and Larry Summers, while the bankrupting of their main competitors

That's a little bit of a red herring.

People forget -- or never really knew -- just how big Goldman has become.

Goldman's 2007 bonus pool was big enough to buy one of those (now bankrupt) competitors.

Goldman's brand recognition, in the general public, has never really reflected its size. Which is just the way they like it.

GS do appear to be at a stage of control where they just dont care what people think.

What they'd really like is for the general public to not think of them at all. They are aware of the Saturday Night Live skits, the sticking of the vampire squid metaphor, and don't like them. They've even instructed employees not to be flashy, to not conspicuously consume. But they are also aware that it doesn't really matter. Not unless something revolutionary happens, in which case it won't be just Goldman that goes down.

If forced to pack it in, the Goldman alums will simply migrate to the best game that will give them a seat at the table.

W Baker said...

Savant,

I've talked to many friends over the past year about the obscene bailouts and machinations of Paulson and company. Of course, as you correctly point out, this sort of scandalous looting can only take place - without riots and social unrest - when a nation can print money. The Federal Reserve System - fractional reserve banking in its most developed form - is the engine of this financial mess. (It's also the enabler and funder of our Pollyannish imperial designs and a large portion of the domestic welfare state.)

So, a good portion of my acquaintances jump on the band wagon that the dollar is going down the tubes, and all of this will come to an end when oil and other commodities are no longer sold in dollars, and our currency is no longer held as THE Reserve unit by central banks.

I agree, but I don't think this is going to happen overnight.

What the elites in this country (and its puppy dog, Britain) know is that the enforcer of the world's reserve currency is the US military machine. Unfortunately, we can blow the globe up several thousands times over. If trade relations get tough, we'll park a aircraft carrier fleet off a country's shores. We'll "protect" and manipulate any oil/natural gas pipeline, give war guarantees (NATO) to countries most Americans haven't even heard of, fly drones over any suspect population, etc. ad nauseum.

What's even scarier is just how sacrosanct the US military machine is within the US white population. Our overlords in Washington and at Boeing, Ratheon, BAE Systems, a large portion of our University research centres, etc., have insured that every military project is spread into each political district in the country. Many counties in the country are almost solely dependent on the Pentagon as the main source of their income. If you couple that with a fierce, quasi-religious-based "support of the troops" - no matter how foolhardy the mission - you've got a force to be reckoned with. (Most families in the US have an immediate family member that was/or is in military and/or are financially connected to it. That's connection.)

Considering that the Pentagon eats half or more of the annual budget of the US, and considering that a great portion of this budget is outrightly dependent on the Federal Reserves system, the GS's and other financial insiders will continue to feed off this massively corrupt system until the population gets tired of genuflexing and throwing its kids to this military monster or another country can raise an equal military machine to check it.

But that's just one perspective from the US hinterlands.....

Anonymous said...

Interesting story in Lew Rockwell about the events that transpired and the lies we were told about staring into the abyss.

http://www.lewrockwell.com/whitney/whitney13.1.html

Anonymous said...

most illegal Mexicans here actually file & pay income taxes to the IRS! Our govt knows this but does nothing. "No taxation without representation"???

No this is an interesting distortion of the facts. Most illegal Mexicans who use somebodies Social Security number also claim 10 exemptions and pay NO INCOME TAX. They pay the FICA payroll tax. Of course they suck more out of the system than their 6.2% contribution pays for. If they actually get a taxpayer ID number and file they are entitled to Earned Income Tax Credit which is up to 3250 a year, more than they likely paid in FICA and income tax combined.

W Baker said...

Savant,

Another thing came to mind after digesting your post re: Adam Storch and the SEC.

The US media has for months laid the Bernie Madoff scandal at the feet of incompetent, and particularly, young SEC regulators. Madoff and Co. were apparent gods to these young kids and, thus, the narrative goes, could be bedazzled and bullshitted. I think Madoff even married off one of his nieces to an SEC investigator.

I suppose they'll have to find a different explanation now.

Anonymous said...

...And here's an interestin gfact: most illegal Mexicans here actually file & pay income taxes to the IRS! Our govt knows this but does nothing. "No taxation without representation"???

They file using their phony or stolen Social Security numbers?

Even if they did file few would make enough to pay income tax-only about half of US households declare enough income to pay net income tax. Illegals(those who work on-the-books)do, however pay the social security payroll tax.

D_O'D said...

Joe O'Neill- I can tell you this. If what we see here is capitalism, give me good old solialism eny time!

SAVANT said...

W Baker, that's great insight in your 1st comment and obviously I agree entirely. It's one of the big paradoxes I face. I self-evidently bitterly oppose the multiculti peecee open-borders "liberals" who are demonising and undermining the white race.

Problem is, the white race in the US is easily jerked around by appeals to patriotism (i.e. bombing other countries) as so amply demonstrated by the Bush regime.

The military and their hangers-on are bleeding the country as much as GS and the other parasites are. The US spends more on 'defense' than the next 17 countries COMBINED!

As you say, that's where tax-payers' money is going. Some times I feel like banging my head against the wall in frustration.

What are ordinary Americans saying in the privacy of their own homes? I really don't know the answer to that.

Anonymous said...

@kulak says "The original heist was the brainchild of GS alumni Robert Rubin and Larry Summers, while the bankrupting of their main competitors" says that this is a red herring.

I dont agree. I think it's completely central to the issue. Can't understand his logic here.

romeo said...

The global warming scam passed by Congress. Goldman Sachs is in the middle of it, as usual– a potential trillion dollar sure thing.

And Al Gore who will profit from the cap-and-trade plan through his company, Generation Investment Management,–
Gore is joined by three former Goldman Sachs heads in their carbon offsets business

Anonymous said...

Where will it all end? It depends on whether the American peoiple will wake up. If present trrends continue the US will become more and more like Mexico. It will never be as bad, simply because you'll still have a huge white % of population, more a gentle spiral downwards.

Anonymous said...

Where will it all end? It depends on whether the American peoiple will wake up. If present trrends continue the US will become more and more like Mexico. It will never be as bad, simply because you'll still have a huge white % of population, more a gentle spiral downwards.

hrldspin said...

Where will it all end? It depends on whether the American peoiple will wake up. If present trrends continue the US will become more and more like Mexico. It will never be as bad, simply because you'll still have a huge white % of population, more a gentle spiral downwards.

W Baker said...

I don't think most Americans understand that their country is loosing two, fourth-generation wars, much less have enough introspection to discern that a military this big - in any other country - would be called a coup.

They certainly don't understand monetary policy or the pernicious role of the Federal Reserve.

This country has destroyed a lot of good men (and their gene pools) in its countless wars, and what good stock is left over is diluted with an ever diverse demographic landscape. If they don't intermarry, they're children's children will certainly be pulled down just by constant association.

Sorry to sound to so drab. There are some bright spots out there. Ron Paul did spark some hope the last Presidential campaign. (He, of course, would be "shocked, shocked, shocked" at my racialist remarks, and spout off something about individualism! So just to spare his reputation in this PC world, I have no connections with him!) But his movement has informed a lot of young people about the Fed. and how it funds the empire at home and abroad.

But Paul's numbers don't amount to much more than 5 or 6% of the population. Probably the same amount of curious, intelligent folks who - without Paul - would have figured it out sooner or later.

Gawd, I'm a pessimistic fucker today!!!

Anonymous said...

yes W baker, Ron Paul was really a breath of fresh air. But of course he was ridiculed and marginalized. Can't see him getting anywhere but god knows we need him, or someone like him.

SAVANT said...

See this link: http://www.nytimes.com/2009/10/21/business/21volcker.html?_r=2&hp

Paul Volker, probably the only major figure to come out of the last 20 years shenanigans, is now beeing forced out by the GS Occupying Government

Anonymous said...

You might want to check this one out from Paul Craig Roberts.

http://www.takimag.com/blogs/article/usa--failed_state/

From Bill Anderson another aspect to our police state.

http://www.lewrockwell.com/anderson/anderson267.html

Anonymous said...

I am as disgusted as anyone about the bailouts and I also agree that the Fed is a real problem and has been since the Founding. It could be brought under better control with a more responsible electorate and other miracles but I doubt it can be expurgated.

Still, there is nothing in the world surprising about any group that generates power and wealth and backs it up with a military enterprise. There were times the world was very grateful that we are such a violent and greedy and expansive lot; most of the time we are just hated for the very same reasons. Of late we have regrettably lost sight of the maxim that as might increases, so must restraint.

Is our military overdone? Probably. But that is not where the citizenry needs to get smart. We have a system to work with and we need to get to work to make it function with valor and accountability. Stop pissing on the buildings and piss on the fire. This is not easy in a country swamped in liberal ideology.

What we have now is just more of what we had before but without the virtue and prudence that used to guide both society and government. Soon we may even lose the belief that we have lost anything, and then we are done. Liberalism demands and celebrates these destructions and it must be brought into consciousness for what it is, met and destroyed.

leadpb

hmd14 said...

Paul Craig Roberts is saying pretty much the same thing as Savant in VDare yesterday. Well worth a read.

herbmatt said...

And now they're forcing out the one voice of reason, sanity and integrity. Paul Volker. Truly an Obamanation.

Anonymous said...

"But the MSM in the US, almost all owned by mega multinational corporations..."

Jews Mr Savant, Jews. The American mass-media is owned and controlled by Jews, and no one else.