|Home||blog.alor.org||Newtimes Survey||The Cross-Roads||Library|
|OnTarget Archives||The Social Crediter Archives||NewTimes Survey Archives||Brighteon Video Channel||Veritas Books|
24 October 2008 Thought
for the Week:
Preface to 'Bankers and Bastards, by Paul McLean and James Renton, 1992.
POLITICAL AXIOM NO 1: THE BANKS ARE BASTARDS
by James Reed
None of this should surprise us. The historical arrogance that comes from having a monopoly over the creation of credit no doubt produces a pathology which makes these institutions highly immuned to telling the truth.
As with postmodernism, there is no truth in the world of money beyond that of money: money is the alpha and omega and reason for the existence of being itself. The banks are bastards, of course, and philosophically horrendous ones at that.
'The Money Trick from the Institute for Economic Democracy.
WALL STREET AND THE RULE OF LAW
by John Brett:
While our founding people had come from a nation with a thousand or more years experience in the evolution of The Rule of Law, which came to them from the defunct Roman Empire a thousand years before them, that long history was studded with examples of reverting to the Rule of Men whenever a war started. Still happening to this day.
Most Australians only have a vague idea what the Rule of Law means, but if you give them a simple example they will agree that it is important and should be taught in our schools and universities. Which raises the question 'Why isn 't it taught in our schools any more '?
An example that convinces them, because of its partial failure, are the laws about 'Property '. Somebody breaks into your house and steals your jewelry or TV, or steals your car or your money. You notify the police, whose function is to find the missing property and the person who stole it. The accused is then dealt with in the Law Court, where they may be instructed to return the stolen property, and for punishment pay a fine or go to prison.
The 'Rule is that the law applies to everybody, even the Police and the Magistrate, as well as the people who make the laws.
In this field, the Rule of chosen Men reigns supreme. They are unknown, unchallenged, unseen, unimpeachable, unmerciful, unjust and most of all unlawful.
These are the people who create and destroy the world 's money supply, a 'Law unto themselves.
This is why, outside of the 'Law of the Land 2,000 years ago, Christ whipped out the money-makers who were installed in the Temple. At the following midnight (illegal) trial, only false accusations were brought against him and no mention was made of his illegal whipping of the money-makers, days before.
HOW ARE YOU ENJOYING THE ECONOMIC COLLAPSE SO FAR?
by James Reed
The economic writers that I have read believe to a man that all will be well after one year, two years - because today, unlike the 1930s, economists understand monetary policy. Governments will bail out sinking, stinking banks. So much for the Darwinian rule of Free Markets! But a cost of these bailouts is a transfer of 'economic toxins from private firms to the government.
At some point an economic doomsday will arise, as government debts spiral out of comprehension. It is better that the crash happens now while there is still time for social crediters to work on their fellow Australians to help bail out the sinking ship of state - and set it to rights. Left too long, the crash is likely to be so severe as to destroy all the lifeboats.
IT 'S PLANNED THAT WAY!
by Jeremy Lee
The minority who held the first vote back were subject to arm-twisting and head-kicking, and the second attempt was successful. But the meltdown didn 't go away.
Obviously, they had no idea that, in early Australian history, their own party, the ALP, had formed the Commonwealth Bank as a
'peoples bank to prevent the very 'debt bubble now destroying the world 's economies.
If Prime Minister Rudd, Treasurer Swan and, for that matter, members of the Opposition, took note of Australia 's early successes, this country could lead the world out of this mess. The mesmerizing seduction of Hank Paulson, the Federal Reserve in America, the IMF and World Bank etc., would fall to the ground as the worthless dross it really is. Not all industrial nations are swallowing the Paulson/Bush plan.
The article below, by author and economist William Engdahl, merits close attention as an example of the divisions at the top.
Well-thought-out long-term strategy:
In this banker 's view, the ongoing attempt of Italian Prime Minister Silvio Berlusconi and France 's Nicholas Sarkosy to get an EU common 'fund ', with perhaps upwards of $300 billion to rescue troubled banks, would de facto play directly into Paulson and the US establishment 's long-term strategy, by in effect weakening the banks and repaying US-originated Asset Backed Securities held by EU banks.
Old hands at using panic to centralize power:
Now they must do something similar on a global scale to be able to continue to dominate global finance, the heart of the power of the American Century. That process of using panics to centralize their private power created an extremely powerful, concentration of financial and economic power in a few private hands, the same hands which created the influential US foreign policy think-tank, the New York Council on Foreign Relations in 1919 to guide the ascent of the American Century, as Time founder Henry Luce called it in a pivotal 1941 essay.
Henry Paulson 's background:
Paulson 's own background is interesting in that context. Back in the early 1970 's Paulson started his career working for a rather notorious man named John Erlichman, Nixon 's ruthless adviser who created the Plumbers Unit during the Watergate era to silence opponents of the President, and was left by Nixon to 'twist in the wind for it in prison. Paulson seems to have learned from his White House mentor.
Knowing that at a certain juncture the pyramid of trillions of dollars of dubious sub-prime and other high risk home mortgage-based securities would come falling down, they apparently determined to spread the so-called 'toxic waste ABS securities as globally as possible, in order to seduce the big global banks of the world, most especially of the EU, into their honey trap. They had help.
In recent testimony under oath by Eric Dinallo, the Superintendent of the New York Insurance Department at the AIG Bailout Oversight Hearing, into the AIG rescue by Paulson, Dinallo testified that funding cutbacks in recent years directed by the Bush-Cheney Administration had reduced the responsible department that should regulate or watch over the $80 trillions in Asset Backed Securities (ABS), which included the toxic sub-prime and Alt-A mortgage securities and much more.
The Bush Administration took the staff from more than one hundred people down to one---yes that was not a typo. One as in 'uno. Was that just ideological budget cutting fervor, or was it deliberate? Was former Goldman Sachs man, the man who convinced the President to hire Paulson, Bush 's former Director of the Office of Management and Budget (OMB), Joshua Bolten, now the President 's Chief of Staff, responsible for insuring there was no effective government oversight on the exploding securitization of mortgage assets?
These are perhaps some questions which the good Congressmen ought to be asking people like Henry Paulson and Josh Bolten, and not such red herring questions as how large Richard Fuld 's bonus pay at Lehman was. Are Mr Bolten 's fingerprints on the corpse here? And why is no one questioning the role of Paulson as CEO of Goldman Sachs, then the most aggressive promoter of exotic and other Asset Backed Securitization products on Wall Street?
It now would appear that the Paulson strategy was to use a crisis 'a crisis that was pre-programmed and predictable as far back as 2003 when Josh Bolten became head of OMB 'when it exploded, to panic the more conservative European Union governments into rushing to the rescue of US toxic waste assets. Were that to have happened, it would in the process destroy what was left of sound EU banking and financial institutions, bringing the world one step closer to a global money market controlled by Paulson 's cronies 'US-style Crony Capitalism. Crony Capitalism is certainly appropriate here.
Paulson 's predecessor at both Goldman Sachs and at Treasury, Robert Rubin, liked to accuse the Asian bankers of Thailand, Indonesia and other lands hit with the speculative attacks of US-financed hedge funds in 1997 of 'crony capitalism, leaving the impression the crisis was home grown in Asia and not the result of a deliberate executed attack by US-financed financial institutions to eliminate the Asia Tiger model among other goals, and turn Asia into the funder of US debt. Interesting to note is that Rubin is now a Director of Citigroup, obviously one of Paulson 's crony bank 'survivors, and the bank which to date has had to write off the largest sum in toxic waste securitized assets.
If the allegation of pre-planned panic, a la the Panic of 1907 is accurate, and it is a big if, then the plan worked 'up to a point. That point came over the weekend of October 3, coincidentally the national unification holiday of Germany.
Germany breaks with US model:
However, behind the dramatic headline number, as Weber pointed out in a September 29 letter to Finance Minister Peer Steinbr 'ck that has been made public, not only did the private German banks have to come up with 60% of that figure, the state with 40%. But also, given the careful manner in which the Government in co-operation with the Bundesbank and BaFin, structured the rescue credit agreement, the maximum possible loss, in a worst case scenario, to the state would be limited to '5.7 billion, not '30 billion as many believed.
It 's still real money but not the blank check for $700 billion that a US Congress under duress and a few days of falling stock market prices agreed to give Paulson. The swift action by Finance Minister Steinbr 'ck to fire the head of HRE, in stark contrast to Wall Street where the same criminal fraudsters remain at their desks reaping huge bonuses, indicates as well a different approach.
But that does not cut to the heart of the issue. The situation of HRE arose as noted previously, from excesses in a wholly-owned daughter bank of HRE subsidiary DEPFA in Ireland, an EU country known for its liberal loose regulation and low tax regime.
A British policy shift:
Under such an approach, costs to UK taxpayers once the crisis abates and business returns to more normal conditions, the Government can sell the state shares back to a healthy bank at perhaps a nice profit to the Treasury. The Brown Government has apparently realized that the blanket guarantees it gave to Northern Rock and Bradford & Bingley merely opened the floodgates of government costs without changing the problem.
The new nationalization policy is a dramatic contrast to the Paulson ideological 'free market approach of buying the worthless bonds held by the select banks Paulson chooses to save, rather than recapitalize those banks to allow them to continue to function.
The battle lines drawn:
So long as the world 's largest financial credit rating agencies 'Moody 's and Standard & Poors 'are untouched by the scandals and Congressional hearings, the reorganized US financial power of Goldman Sachs, Citigroup and JP Morgan Chase could potentially regroup and advance their global agenda over the coming several years, walking over the ashes of a bankrupt American economy made bankrupt by their follies.
By agreeing on a strategy of nationalizing what EU finance ministers deem are 'EU banks too systemically strategic to fail, while guaranteeing bank deposits, the largest EU governments, Germany and the UK, in contrast to the US, have opted for what will in the longer run allow European banking giants to withstand the anticipated financial attacks from the likes of Goldman or Citigroup.
The dramatic selloff of stocks across European bourses and across Asia is in reality a secondary and far less critical issue. According to market reports, the selloff is being driven mainly by US hedge funds desperate to raise cash as they realize the US economy is going into economic depression, that they are exposed and that the Paulson Plan does nothing to address that. A functioning solvent banking and interbank system is far the more strategic issue.
The ABS debacle was 'Made in New York. Nonetheless, its effects have to be isolated and viable EU banks defended in the public interest, not just the interest of Paulson 's banking cronies as in the US. Unregulated offshore vehicles such as hedge funds, unregulated banking, unregulated insurance all went into building the $80 trillion ABS Tsunami as I have called it. Certain more conservative EU hands are not about to buy the remedy being offered by Washington.
The co-ordinated interest rate cut by the ECB and other European central banks while grabbing headlines, in effect do little to address the real problem: banks fear to lend to each other until their solvency is assured. By initiating state partial nationalizations across the EU, and rejecting the Berlusconi/Sarkozy bailout scheme, the governments of the EU, interestingly enough this time led by the German, are laying a more sound foundation to emerge from the crisis. Stay tuned, it 's far from over.
Asian banks, badly burned by Wall Street 's manipulated 1997-98 Asia Crisis,** are apparently very little exposed to the US problem. European banks are exposed in different ways, but none so serious as in the US banking world.
F. William Engdahl is the author of A Century of War: Anglo-American Oil Politics and the New World Order (Pluto Press. The present series is adapted from his new book, now in writing, The Rise and Fall of the American Century: Money and Empire in Our Era. He may be contacted through his website, www.engdahl.oilgeopolitics.net.
** Refer to On Target Archives, Vol.44 No 26 'Defending National Economic Sovereignty and study what Dr. Mahathir did to save his nation from the manipulated financial crisis.
MR. ARROGANT VERSUS MR. ARROGANT
by James Reed
However, as we say from the republican campaign, Mal, like Kev08, is basically a cultural deconstructionist. They are fully committed to an Asian future for Australia and seek to annul our remaining links with the past. This breed of politician only assesses things in terms of economic value.
Outside of economics, nothing exists. But that is a good thing. Now we have no more options. The mainstream parties can be seen even by blind Freddie to be the same. Now we either forge a new path, or we die. What are you going to do?
DR. FREDERICK TOBEN IN TROUBLE WITH 'HOLOCAUST LAW - AGAIN
The Daily Telegraph (UK) 13/10/08 reported:
But that brave lady, Lady Michele Renouf, has proved to be 'the secret force behind a campaign to free Dr. Toben who is facing another jail term in Germany 'for being a Holocaust denier. ' He was to represent himself in court for an extradition hearing to send him to Germany from Britain, where he was in transit enroute to Dubai, but Lady Renouf has stepped in and assembled a legal team to not only get him out of British detention but challenge the validity of European warrants that can see people arrested in one country at the behest of another.
Lady Renouf, briefly married to millionaire financier Sir Frank "The Bank" Renouf, said it was a matter of principal her friend Dr Toben got the best help and the Germans not be allowed to curtail freedom of speech. She said she was not a revisionist and something "bad" did happen to the Jews during the war, but on principal she supported people like Dr Toben and renowned Holocaust denier David Irving for the sake of freedom of expression.
Revisionism, she said, was not an ideology but a historical method. The 61-year-old former model and Miss Newcastle 1968 said people might not like what Dr Toben stood for but it was his and others' right to freely express themselves. "My interest is in making sure we don't have laws that we say we don't accept and yet we allow to come in to the back door," she said yesterday.
Dr Toben's solicitor Kevin Lowry-Mullins said his client was in good cheer and health and was stoic in the face of potentially being extradited and serving up to five years in a German prison.
For the folk who would like to help Dr. Toben with his financial expenses, go online and click on to his website: www.adelaideinstitute.org
THE CHANGING FACES OF FLANNERY
by James Reed
No doubt it is better for our economy to collapse than for the industrialisation of China and India to slow.
BOOKS FOR FURTHER UNDERSTANDING OF SOCIAL CREDIT AND MONEY
"Major Douglas: The Policy of a Philosophy" by John W. Hughes.
SOCIAL DYNAMICS DVDs:
DVDs - NEW RELEASES:
|© Published by the Australian League of Rights, P.O. Box 27 Happy Valley, SA 5159|