Archive for the Kleptocracy Category

On Roiling And Rolling Collapse (March 9, 2015)

Posted in Collapse, Kleptocracy, Nuclear, Society on March 9, 2015 by e-commentary.org

. . .

6          “We as humans need heat measured in calories inside us and heat measured in British Thermal Units outside us to survive.  We have two external skins – our clothes and our shelter – to retain some of the outside heat.  In hot climates, we transfer heat from us back to the environment.”

9          “My food comes from the grocery shelf and heats me from the inside.  My electricity comes from the wall and heats me on the outside.  Bingo.”

. . .

3          “There seems to be this notion that Collapse is a binary concept – it either is or is not here.  On the domestic front, if one looks at Katrina, Ferguson, the failed ‘just-us’ legal system, the health care-less system, a fraudulent financial system, a kleptocracy not a democracy, etc., we have ‘Rolling Collapse’ or ‘Cascading Collapse.’  And the international arena is a string of wars, wars, wars and wars.  And currency wars.  And commodity wars.  And resource wars.  And wars.”

6          “Keep the apocalypticlit in perspective.  We need to keep one foot in each world and both eyes on all the possibilities.  Follow the Golden Rule, move money from a bank to a credit union, don’t touch plastic in any form and do reduce, reuse, recycle and compost.  Hope instead of fear.  Trust instead of terror.  Mudita instead of schadenfreude.  We cannot continue on the path we are on, so we must find a path to the middle way.”

9          “The Golden Rule.  He who has the gold makes the rules.  I am getting the gold.”

. . .

9          “I can get on the Internet, order it in any size or color from anywhere and get it delivered to my front door the next day.  Monogrammed, if I want.  And pay with plastic rather than gold.  Nearly immediate gratification with delayed satisfaction of the bill.  Immediate gratification if I want to drive to the store.  Everything is sweet.”

3          “What happens when the Internet becomes the Inter-mittent-net or the phones don’t connect or the planes don’t fly or the truck doesn’t truck?”

9          “Not in my lifetime.”

3          “The monogram machine breaks?”

9          “Not on my watch.”

. . .

3          “Select your century or be defaulted to the Fifteenth Century.  If you want to slow your descent at the Eighteenth Century, acquire a manual tool to replace every tool motivated by a motor or an engine.  Acquire a treadle sewing machine to replace the electric variety and a bow saw to replace your chain saw.”

9          “I am the Twenty-First Century.”

6          “A hand grinder for coffee beans is percolating up the wish list.”

9          “Except for my autoloaders, all my iron is handheld, manual and wireless.  I’m prepared.”

6          “Music is our escape and our salvation.  An old hand–crank gramophone to listen to Liszt may need to move up the list.”

. . .

6          “You know what they say:  ‘God, grant me the serenity to accept the things I cannot change, the courage to change the things I can, and the wisdom to know the difference.’  I may need to acquire manual do-it-yourself versions of all three virtues to get through the day.”

3          “Try yard sales.  Or estate sales.”

. . .

[See the e-commentary at We Ain’t Ants; We Are Grasshoppers (April 9, 2012) and at Fukushima Daiichied (March 12, 2012).]

Bumper stickers of the week:

Collapse:  Coming to a planet near you?

Give bees a chance

We seek stasis, we get entropy

“A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects.”  Robert A. Heinlein

A half dozen six-word memoirs constitute an “e-poem” titled “Take only pictures; Leave only footprints.”

Many live humans; Few dead dinosaurs.

Disregard the e-con-omists; Regard the physicists.*

Change your attitude; Range the latitudes.

Pay old bills**; Develop new skills.

Consume less junk; Savor more beauty.

So many challenges; So little time.

* And the eco-nomists.

** Craft your own financial game plan.  With hyperinflation on the way, purposefully delaying the payment of bills allows one to pay obligations with significantly devalued dollars.  That is one of the strategies being pursued by the governments.

Marital Musings (December 22, 2014)

Posted in Civil Rights/Civil Liberties, Constitution, Courts, Economics, Gold Standard, Kleptocracy, Movie Reference, Radio, Russia, Silver Standard, Society, Sports, Supreme Court on December 28, 2014 by e-commentary.org

. . .

H1        “So she said we had to set aside some time for a conversation.  I knew it would get bad.”

H2        “You don’t get to say anything.”

H1        “Except when spoken to.  So she said she had to confess that she was thinking about someone else while we were in medias res.  And she said that she was now happy to have gotten if off her chest.  I said that was fine.  She could be thinking about Mr. Magoo if it will get us through the night.  From my perspective, if I can handle the kitchen remodel, junior can get braces.  But it ended up not being fine.  I should have been upset.  She was upset that I was not upset.  I was beginning to get sort of upset that she was upset that I was not upset.”

H2        “Nothing about Gina Lollobrigida.”

H1        “She would have exercised the proviso ‘til death do us part’ and parted with me.”

. . .

H2        “She asked if I noticed that she had put on weight.  I had not noticed, so I told her that I had not noticed.  I am thinking that I get 100 points for candor and honesty and being a great guy and for being a little oblivious.  Maybe an MVP award and a hall pass.”

H1        “And she was upset that you were not upset.  And it was Katie bar the door with Katie showing you the door.”

H2        “I didn’t get a pass.  I told her that once she made the cut and was on the team, things like that did not really matter.”

H1        “And she parsed every phrase.”

H2        “‘Made the cut’ and ‘on the team’ are two separate concepts.  Saying that it is like two wrestlers who make weight and then each go off and have bacon cheeseburgers did not assuage her anxiety.”

. . .

H1        “We conversed with a counselor who opined about psychological affairs versus physical affairs and provided few insights to address our financial affairs.”

H2        “Do you think he was safe?”

H1        “She is sure that we only talk about sex.”

H2        “Safe by a mile.  Replay is clear.”

. . .

[See the latest sophistry from the Supreme Court that vitiates the Fourth Amendment.  http://www.supremecourt.gov/opinions/14pdf/13-604_ec8f.pdf.  An illegal stop is an illegal stop and not a legal stop.]

[See the commentary at “Henrietta And Henry O, Two Young Lovers: The Contemporary Gift Of The Magi (December 27, 2010).”]

Bumper stickers of the week:

“Honey, would you rather I were making love to him using your name, or making love to you using his name?”  Annie Savoy, Bull Durham (1988)

Russian Exceptionalism > or = or < American Nationalism

The COMEX is instituting trading collars for the sale of gold and silver.  And the answer to Will Shortz’ “Sunday Puzzle” seeking the correct anagram for “Comex” is . . . “Fraud.”

In Memoriam (May 26, 2014)

Posted in Banks and Banking System, Book Reference, Bureaucracy, Hypocrisy, Kleptocracy, Military, War on May 26, 2014 by e-commentary.org

. . .

A          “Fly the flag, fight to allow others to burn theirs, and campaign to prevent unwilling and unwitting lads and lasses from fighting for the entertainment and economic advancement of those in power.”

B          “And read the most insightful work on the underlying reasons that those in power take the powerless to war in the poem War Is A Racket by someone who understood war.  General Smedley Darlington Butler was a United States Marine Corps major general which by the way was the highest rank authorized at that time.  At the time of his death, he was the most decorated Marine in United States history.”

A          “Decorated is a curious description.  He knew his stuff.  Take the book to the beach.  Take it to head.  Take it to heart.”

B          “Take it to the class room.  And put it on required reading list next fall in the schools.”

A          “What about All Quiet On The Western Front?”

B          “Put them both on the list.  Remarque remarked on the absurdity and futility of the killing enterprise, whereas Butler served up the explanation front and center.  Follow the money.”

. . .

B          “They would not need to neglect as many veterans if they did not create and break so many of them.”

. . .

Bumper stickers of the week:

Dissent is patriotic

Butler and Eisenhower said it all

Punt, Pass And Kick: The End Is Far (February 24, 2014)

Posted in Bail In, Bailout/Bribe, Banks and Banking System, Gold Standard, Kleptocracy, Money on February 24, 2014 by e-commentary.org

. . .

C2        “An unsustainable system is sustaining itself.  Somehow.  Yet, in the end, an unsustainable system is unsustainable.”

C1        “Everyone is engaged in a grand ‘punt, pass and kick’ game to punt his or her personal or professional responsibility, pass the buck, and kick the 55 gallon rusty drum down the pot-holed road and over a structurally unsound bridge, yet the system is stumbling and bumbling along.  They continue to build ‘bridges to nowhere’ and allow existing ‘bridges to somewhere’ to decline and decay.”

C2        “To build a sustainable bridge, we must do something as simple and foresighted as using stainless steel rebar to support the structure so that it does not rust and rot from within.”

C1        “When the 55 gallon oil drum is empty, it will be much heavier and harder to kick down the road.  We may not make the bridge.  Will time expire on the ‘punt, pass and kick’ game without a possibility of overtime.”

C2        “We may get ‘sudden death’ overtime, although we may be deceased.  We cannot argue with success.”

C1        “As long as you succeed.”

C2        “Some folks will argue with failure, but it may be too late.”

. . .

C1        “We cannot peer behind drawn curtains or peak behind closed doors.  At best, we may observe some developments while trying to assemble a puzzle with only a few random pieces operating in the dark with one hand tied behind our back.”

C2        “On a good day.  We interpolate and extrapolate with little information and confront an active effort by a variety of folks to mislead and deceive.  A conspiracy requires too much cooperation, but a confluence of powerful interests responding to the same incentives and acting in concert to acquire lucre and power can cause mischief.”

C1        “What is today’s exchange rate between lucre and power?  A desperate cabal trying to stave off a large creditor or interest could loot the Treasury.  When there was some chatter about the United States not returning all the gold in the Federal Reserve vaults to Germany because the gold had been sold, little was said.  Big players do not air their tainted laundry in public.  What if the gold is not there?”

C2        “You could craft a movie around a discovery that all the gold in Fort Knox will not buy a twenty-five cent cup of coffee.”

C1        “Gold has mesmerized men through the ages, although it does not taste particularly tasty.”

C2        “Even with golden mustard.  And it does not wear well.”

C1        “If ‘He who has the gold makes the rules,’ what if there is no gold?” 

. . .

C1        “The Big Jolt may come when ordinary folks are spooked by something, rational or irrational, and try to withdraw their deposits from financial institutions.  When it first senses a possible problem, the Federal Reserve will send a directive in seconds to all financial institutions limiting withdrawals to a small sum and then, if that does not work, allowing financial institutions to print script of some kind on site to give to depositors seeking to withdraw their funds.” 

C2        “That script may not be acceptable.  At that point, the script would be backed by the half faith and hollow credit of the United States.”

C1        “An old banker reflecting on the start of the Great Slide looked out the window at depositors who demanded their money and felt an overwhelming sense of terror.  Their terrified look triggered his terrified look.”

C2        “Their terrified look may trigger more than a terrified look.”

C1        “Look out.”

. . .

C2        “A ‘Bail In’ is likely to trigger the same reaction unless it is done very slowly with little publicity so that no one notices.”

. . .

C1         “Something may be done or may happen to jeopardize the dollar’s position as the world’s reserve currency.  That will have a bad ending.  Try to explain what has happened and will happen to the ordinary citizen.”

. . .

C1        “I am convinced that the clearest lesson in American history is the absolute conviction that no one in the banking and financial industry who loots and robs the public will ever be convicted let alone even indicted for a crime.”

C2        “We might as well enshrine it in a constitutional amendment – the Kleptocracy Amendment.”

C1        “Because of our actions and inaction, we are fundamentally in worse economic shape now than we were in September of 2008.  What do you think, three more years or ten more years or could the ‘punt, pass and kick’ game sustain for thirty more years.”

C2        “A riot could become a rebellion and then an insurrection.  Enough people and places are festering and percolating to spark and provide the tinder.”

C1        “The catalyst may not be economic or financial.  A computer virus could go viral or a virus could go viral.”

. . .

[See the “e-ssays” titled Beans and Bullets (April 6, 2009) and Bailouts: Out; Bail Ins: In; Slowly Boilin’ The Frog (April 15, 2013) and those collected under https://e-commentary.org/category/gold-standard/.]

Bumper stickers of the week:

You can argue with failure

Crime pays in America, but only big crime

Something that cannot go on forever will not go on forever

Federal Reserve Note legends on dollars, 1928 and 1934 and 1953 and 2014 and ____:

REDEEMABLE IN GOLD ON DEMAND AT THE UNITED STATES TREASURY, OR IN GOLD OR LAWFUL MONEY AT ANY FEDERAL RESERVE BANK

THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE, AND IS REDEEMABLE IN LAWFUL MONEY AT THE UNITED STATES TREASURY, OR AT ANY FEDERAL RESERVE BANK

THIS NOTE IS A LEGAL TENDER AT ITS FACE FOR ALL DEBTS PUBLIC AND PRIVATE

THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE

THIS NOTE IS . . .

‘Mericanize: Monetize, Mechanize And Militarize (December 30, 2013)

Posted in Economics, Energy, Kleptocracy, Markets, Military, Pogo Plight, Society on December 30, 2013 by e-commentary.org

. . .

C1        “America makes nothing but monetizes everything.”

C2        “And makes things up.” 

C1        “We make up fake money, but we cannot make up fake energy.  We need to energize not monetize.  We need to measure the energy inputs and environmental outputs before we do or make or consume anything.  Money is not the measure and sends the wrong signals.”

C2        “Even by their own terms, money and markets are far too broken to work either efficiently or equitably today.”

C1        “We aid and abet the rich players taking money electronically from the poor and middle class.”

C2        “Everything is an accounting hijink and a legal mirage concocted by the accountants and the lawyers.”

C1        “And the e-con-omists.  Everything is virtual; nothing is real.”

. . .

C1        “Now they are proclaiming that the great American heartland will be saved by the construction of new factories and a renaissance in manufacturing.  However, the typical factory does not actually employ more than two employees who turn on and monitor the machine.”

C2        “And billions are spent to keep those two employees from receiving a slightly higher minimum wage.”

C1        “Economic slaves make unprofitable consumers.”

. . .

C1        “The response in Boston is another display of the militarization of society.  The town was invaded by American storm troopers who dressed and acted like they were invading Fallujah or Kandahar.”

C2        “We lost the race years ago.  The camo armored personnel carrier replaced the black and white Crown Victoria Police Interceptor.  The .308 replaced the .38.  Kevlar® replaced khaki.”

C1        “The old saw says it all:  ‘A YouTube video is worth ten thousand words.’  The vignettes told the most harrowing stories as the militarized police broke into houses and pulled citizens out of their homes.  A few folks were shocked, a few were outraged, and a few were disgusted, yet there was an undertone of acceptance and obeisance.”

C2        “We are lost.  We are neutered and anesthetized.”

. . .

C1        “We are the Etch-A-Sketch® society.  Nothing is real or permanent.”

C2        “We are the Play-Doh® people.  No spine and no substance.  Malleable as clay.  There is no there there.” 

. . .

[See the “e-ssays” titled Minimum Wage and Maximum Earners (July 31, 2006), Racing Backwards; Moving Forward? (July 27, 2009), Occupy America: The “Bonus March/Chicago Police Riot/Kent State” Of 2011? (October 17, 2011) and Men In Pink: Today’s Sensitive New SWAT Togs (August 20, 2012).]

Bumper stickers of the week:

Too much information, too little insight

Everything is virtual; nothing is real

Energize don’t marginalize

We need fewer folks chasing fewer flora and far fewer fauna

The cup is one sixteenth full

In the end, the physicists always triumph over the e-con-omists

The Fed at 100 (December 23, 2013)

Posted in Bailout/Bribe, Banks and Banking System, Bernanke, Federal Reserve, Kleptocracy, Stock Market on December 23, 2013 by e-commentary.org

. . .

A          “We celebrate the birthday of our financial savior today and of our spiritual savior on Wednesday.”

B          “Birthday cards and candles are flying off the shelf.” 

A          “Congress passed the Federal Reserve Act on December 23, 1913 a few seconds before heading home for the holidays and a few minutes before President Wilson signed the legislation.  You wonder if they had a clue.”

B          “Most folks don’t have a clue, but what do you do.  Most folks look uncomfortably bewildered if you even allude to the Fed.  Someone who is uncomfortable with a topic does not readily come around.”

A          “They are more comfortable talking about the Football League than about the Federal Reserve.”

B          “The great debate on a national bank was lost a hundred years ago.  We need a great debate today.”

A          “The Fed is really out of control, but the wealthy are getting wealthier, so no one cares.”

B          “Congress provided some policy direction when it required to Fed to consider the level of employment in its calculus.  The Fed’s policies and decisions over the last decade have done nothing to improve employment, yet there is no sanction or penalty in the Congressional legislation.”

A          “The Fed has done more to promote the greatest transfer of wealth to the already wealthy than at any other time or in any other place in history.”

B          “The money is collecting in the Swiss bank accounts of the wealthy.  When and as the money slips from the virtual into the real economy, measured inflation will go up.”

A          “Seems to me that inflation will be exacerbated by a reduction in the supply of goods brought about by a breakdown in production and distribution.”

. . .

A          “The Fed is not the fourth branch of government, it is the first branch.”

B          “The To-Big-To-Fail-Or-Jail Banks are the first branch of government and they own the Fed and the government.”

. . .

A/B       “What will blow out the candles?”

. . .

[See the “e-ssays” collected in the Category “Federal Reserve” at https://e-commentary.org/category/federal-reserve/.]

Bumper stickers of the week:

Now that the banks have privatized the government, the government will never nationalize the banks.

If one person amassed 99.999999999999999999999999 percent of the income and wealth in America, would anyone notice?

Capitalize the gains; socialize the losses.

Kleptocracy, Inc.: Rebranding America (November 18, 2013)

Posted in Awards / Incentives, Bailout/Bribe, Banks and Banking System, Bernanke, Economics, Economics Nobel, Federal Reserve, Kleptocracy, Stock Market on November 18, 2013 by e-commentary.org

. . .

A          “‘Go Kleptocracy, Inc. Go’ doesn’t have the same ring as ‘Go U.S.A. Go.’”

B          “You could replace the stars with dollar signs and the stripes with universal product codes to reflect the monetization of America.  Rally ‘round the ‘Dollar Signs and Bar Codes’ does not alliterate the way rally ‘round the ‘Stars and Stripes’ does.”

A          “And doesn’t sound right, does it.”

B          “To say that everything is a lie and a fraud is an understatement.”

A          “Almost everything is a lie.”

B          “That may be closer to the truth.”

. . .

B          “A kleptocracy is an oligarchy that no longer is even vaguely concerned about even the pretense of evenhandedness or equality.”

A          “That’s it; that’s us.”

. . .

B          “And yet so many commentators point to the Dow that topped 16 Grand for a time today.”

A          “It’s over the top.  The rise is so tightly correlated with the monthly eighty-five billion dollar ($85,000,000,000.00) bribe paid by the Federal Reserve to the Big Banks.”

B          “What if they doubled the bribe to one hundred and seventy billion dollars ($170,000,000,000.00) each month paid to the Big Banks.  Why not.  Everything is a fraud and a lie and a fraud.”

A          “The crash will be even more epic.”

. . .

A          “One of the former Federal Reserve officials confessed and apologized for the program known as ‘quantitative easing’ as the ‘greatest backdoor Wall Street bailout of all time’ with little real economic expansion.  Bernanke* is a nice guy who has really done little more than dispense bribes to Big Banks.”

B          “Like Bernanke*, Jellen may be the best this talent-starved kleptocracy can produce.  She will continue the official Federal Reserve policy of dispensing bribes to Big Banks.”

A          “In her testimony, she assured Wall Street and the Big Banks that she will maintain their primacy and hegemony.”

B          “Congress charged the Federal Reserve with considering employment.”

A          “The Fed is mindful of the impact of its bribes on employment on Wall Street.”

. . .

A          “What if he went out like former President Eisenhower and delivered a warning about the perniciousness of the financial industrial complex?”

. . .

A          “The answer is so obvious and so easy.  Preclude any bank from holding more than one hundred billion dollars ($100,000,000,000.00) in assets.”

B          “The Big Banks will never approve that action by the Federal Reserve.”

. . .

A          “The Norwegians do not help when they dispense their trophy to the cheer leaders who put a cheery façade on the fraud.”

B          “And the e-con-omics departments oblige by providing a steady pipeline of obedient sycophants.”

. . .

[See the article titled “Andrew Huszar: Confessions of a Quantitative Easer” at http://online.wsj.com/news/articles/SB10001424052702303763804579183680751473884.].

[See the “e-ssays” titled Greenspan’s Legacy – Apres moi, Le Meltdown (January 30, 2006), The Dow Jones (the Murdoch ?) Hits 14 K In A Hollow Economy (July 23, 2007), A Bleak Day: The Trillion Dollar Tragedy (October 6, 2008), The TARP Is A Trap (January 19, 2009), The Bush Grand Slam (February 14, 2011) and (M)End The Fed (July 11, 2011) concluding with a draft Federal Reserve Enforcement Order that Janet Jellen could issue in her first few weeks on the job.]

Bumper sticker of the week:

In Greed We Trust

September 15, 2008 – The Date That Should Live In Infamy (September 16, 2013)

Posted in Bailout/Bribe, Banks and Banking System, Economics, Federal Reserve, Kleptocracy, Occupy Movement on September 16, 2013 by e-commentary.org

. . .

C          “Five years ago in the morn, Senator McCain, the pundits and the powerful proclaimed that the fundamentals of the economy were sound.”

D          “Didn’t seem that way to me then.  Doesn’t seem that way to me now.”

C          “Didn’t seem that way even to them in the afternoon.  Those running the game realized that the hollow economy could not be propped up with lies and smoke and mirrors.  September 15 is the date that should live in infamy.”

D          “If market forces had been allowed to continue without the TARP and other interventions, the current generation would have endured its excesses rather than heaping them on the younger generations.”

. . .

C          “And two years since the emergence of the Occupy movement.  The folks shared a concern that something is wrong with the economic and political game even if they could not explain the problems or advance the solutions.”

. . .

D          “No one has ever audited the Federal Reserve.”

C          “Some companies claim to have paid back some of the government loans, but who really knows.”

D          “No one has ever been prosecuted except a few unconnected fools and Madoff who made the mistake of purloining from the powerful.”

. . .

C          “The Dow’s new highs are a sign of peril not of promise.  As long as the Federal Reserve keeps fabricating phony funds, the Dow will keep providing phony figures.”

. . .

C          “All the counterparty agreements are essentially insurance policies.  An insurance company is required by law to provide adequate reserves to satisfy possible claims.  Every concerned citizen should have reservations about an insurance scheme with no regulation or even reserves.”

D          “Insurance companies have historically been regulated by states.  The most likely state to regulate the financial industry – New York – has no incentive to regulate and every incentive to allow unregulated criminality.  New York is profiting handsomely from the criminality,”

C          “Laissez faire, they say.  Those in power are too lazy to create a fair economic system.”

D          “The same old same old.”

C          “The same old same old.”

D          “The same old same old is getting old.”

. . .

[See the “e-ssays” under the Category “TARP” at https://e-commentary.org/category/tarp/ and any of a few dozen “e-ssays” presented in the last nine years on the economy.  See the “e-ssays” under the Category “Occupy Movement” at https://e-commentary.org/category/occupy-movement/.]

Bumper stickers of the week:

A system that cannot go on forever will not go on forever.

“Twenty-five years ago, I worked there during the summers for $7 an hour and now my son works there part-time for $7.75 an hour.”

Globalizing The Bail In (July 8, 2013)

Posted in Banks and Banking System, Kleptocracy on July 8, 2013 by e-commentary.org

. . .

A       “So we won’t force all the taxpayers to bail out the banks, but we will force some taxpayers to bail out the banks they had the misfortune to trust.  Those who put their faith in the bank will be betrayed in a planned and premeditated policy.”

B       “It is all the rage on the global stage now and will create quite a rage when it is actually implemented.”

A       Unless it is implemented slowly as a bank fails there and a bank fails here.  There was no public outrage over the losses at MF Global, yet there are many small investors sitting around a dinette table worrying about how there are going to pay the bills.”

. . .

B       “Will any e-mail surface crafted by a sentient human being who questioned the insanity and absurdity and ultimate futility of the policy.”

A      “An e-mail in some personnel file justifying a firing may surface in a wrongful discharge law suit.  A suit that is doomed if it is before a Republican Federal Judge.”

. . .

[See http://www.guardian.co.uk/business/2013/jun/27/eu-agrees-banks-bail-in-deal.]

[See the “e-ssay” at Bailouts: Out; Bail Ins: In; Slowly Boilin’ The Frog (April 15, 2013).]

Bumper sticker of the week:

“The fact that it led to a complete collapse of the international economic system is what they call an ‘unintended consequence’ in masters of public policy programs.  So it is not our fault.  We are sorry that we cannot say we are sorry.”

Bailouts: Out; Bail Ins: In; Slowly Boilin’ The Frog (April 15, 2013)

Posted in Bankruptcy, Banks and Banking System, Bernanke, Kleptocracy, Law on April 15, 2013 by e-commentary.org

. . .

CD1      “Makes you wonder what we get for today’s tax payment.  The Dodd-Frank legislation states that we the taxpayers will not bail out banks and other connected businesses again for failed derivatives and the like.  So the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve (Fed) admit they cannot do their jobs and force the individual depositor to bail out the banks and other connected businesses.”

CD2      “At least now they claim that they will not take our tax dollars directly but will take our money indirectly.  Banks in America still exist to provide taxpayers with regular opportunities to bail them out.  And to pay huge and undeserved bonuses.  And on occasion to finance an upstart organic neighborhood grocery stand.”

CD1      “While individual states serve as laboratories for social and economic experiments, other countries provide insight into responses to social and economic problems.  The response in Cyprus to the banking crisis that afflicts every country today is revealing.  Instead of the taxpayers bailing out the bank, the banksters took deposits from individual depositors to cover shortfalls.  A ‘bail in’ rather than a ‘bailout’ is the way they brand it.”

CD2      “That has been the official policy in the United States and England since December 10, 2012.  The FDIC may promise to insure deposits up to $250,000, but that promise may be repudiated or supplanted or modified by the FDIC’s new formal and promulgated confiscatory policy.  They title their marching orders ‘Resolving Globally Active, Systemically Important, Financial Institutions.’  The Federal Reserve joined in the task and in effect issued a joint press release stating:  ‘Your Deposits Are No Longer Insured.  Get Your Money Out Of Banks Now.’  Taxpayers cannot say that the government did not properly warn them.”

CD1      “The only event that really threatens the banking system is a literal run on the banks.  News broadcasts will have a field day interviewing those in line if they stay in line and the outraged ‘man on the street’ demanding his deposit.  However, by privately stealing funds from the public, there is no single public event to steel public attention and ire.”

CD2      “Failing banks were always taken over by a receiver and the small depositors recompensed by the FDIC.  However, if a bank fails today, the derivatives that doomed and continue to doom the economy are afforded super-priority status.  Ordinary depositors are booted to the back of the line.”

CD1      “Or the ordinary depositor is kicked completely out of the creditor’s queue and given worthless stock in the failed bank.  Four months have passed without an uncompensated failure.  A fortnight will pass and perhaps another four years without incident, but this banking fraud cannot go on forever.” 

. . .

CD1      “The insurance on up to $250,000 in deposits ostensibly provided by the FDIC has exacerbated the ‘moral hazard’ by disconnecting the individual investor from the process.  Individuals do not even make a cursory inquiry into the viability of a financial institution.”

CD2      “Should the depositor be obligated to do so or should the banking system be regulated and monitored by the government.  The answer is that the banks are inadequately regulated and monitored by the government, so by default it is ‘depositor beware.’”

CD1      “If depositors were rational as rationality is defined by economists and in the face of near zero transactions costs, they would transfer their funds to a credit union.  The National Credit Union Association (NCUA) has not joined the ‘bail in’ scheme publicly at this time.”

CD2     “A depositor who is rational as defined by economists realizes that interest rates are near zero and thus the benefit of leaving money in a bank is near zero unless the money is safe.  The potential costs are far more than zero and thus the depositor should transfer the money to a safe location such as a safe located in the basement.”      

. . .

CD1      “They say that if a frog in a pot of water is brought to a slow boil, it will not know or respond to what is happening, but if the frog is thrown in a pot of boiling water, it will jump out.”

CD2      “MF Global is forgotten.  They are slowly turning up the heat without response.”

CD1      “At least the frog reacts.  I’m tired of ‘bailing out’ and now ‘bailing in’ banks and am bailing on banks.”

. . .

[Peruse the government scheme titled “Resolving Globally Active, Systemically Important, Financial Institutions” at http://www.fdic.gov/about/srac/2012/gsifi.pdf and the similar policy in New Zealand at http://www.rbnz.govt.nz/finstab/banking/4430900.html.]

[Reflect on the discussion in http://www.voxy.co.nz/politics/national-planning-cyprus-style-solution-greens/5/150410, http://www.publicbankinginstitute.org/ and http://webofdebt.wordpress.com/2013/04/09/winner-takes-all-the-super-priority-status-of-derivatives/.]

[See the “e-ssays” titled Money “In The Bank” Or “Under The Mattress” (October 8, 2012) and Boycott Big Banks – Vote Your Dollars (November 21, 2011).]

Bumper stickers of the week:

I am not so much concerned with the return ON my money as I am with the return OF my money.  Attributed to a number of wits.

“An efficient path for returning the sound operations of the G-SIFI [Globally Active, Systemically Important Financial Institution] to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company [meaning the individual depositors who were previously assured their deposits are insured] into equity [meaning worthless stock].  In the U.S., the new equity would become capital in one or more newly formed operating entities.”  Page 3 at Paragraph 13 of the publication “Resolving Globally Active, Systemically Important, Financial Institutions.”

Your Deposits Are No Longer Insured.  Federal Deposit Insurance Corporation

Get Your Money Out Of Banks Now.  Federal Reserve

The most condign resolution is to attach the salaries and retirement payments to the employees and retirees of the Fed, the FDIC, the SEC, the OCC, the CFTC, the DoJ, the BoE, the BoA, AIG, GS, S&C, C&B and others to fund any bank shortfalls.  And Congress, the President and the Supreme Court.  Problem resolved. 

“Open Bank Resolution”  “Wikipedia does not have an article with this exact name.”

If banksters were branded terrorists, would there be prosecutions?

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