Monday, December 13, 2010

The Christmas Goose

Last week our President caved in to political pressure. He extended the Bush tax cuts for the wealthiest and bartered for 13 more months of government largesse for the unemployed. Then he went on national TV to whine about it. Later at a press conference, Obama turned the podium over to White House Lewinsky molester, Bill Clinton. Then Obama ran out of the room. Clinton as you might recall, is married to astute cattle futures trader and international spy, Hillary Clinton.

The newly elected Republicans, bent on protecting their elite friends, drew a line in the sand. Obama, the Coward in Chief, nabbed the consolation prize- a few billion more from the taxpayers for his unemployed voters.

Let me score this. Government Cowards 2, American Citizens and Taxpayers 0. 

Now lest ye think I am picking on the current crop of cowards, let me retrace my steps back to Bush II. Bush as you might recall, was the President who lost his veto pen. Among other things, I will forever remember him as the man who failed to enforce immigration statutes, thus allowing the Mexicans to recover land and territory lost long ago. Primarily Texas, New Mexico, Arizona, and Southern California. Bush may be best known as the man who stepped away from the podium and turned the reins of government over to Treasury Secretary, Hank Paulson. Hank as you recall, was the Goldman Sachs CEO who I think history will show- pretty much helped bankrupt the world. I'd like to turn your attention to this chart.

As you can see, as Hank was stealing taxpayer dollars to bail out his cronies at Goldman Sachs and AIG, the FED was busy throwing 4.5 trillion toward it's member banks. The most curious part, is why couldn't the FED simply bail out Congress by supplying the mere pittance that would be TARP? Why indeed? Just a taste here below courtesy of Jonathan Schwarz...more here at his link.

That's the first rule of political catastrophes: if everyone's guilty, no one can be punished.
This was an opportunity to get everyone else on the hook with them: both parties in congress, and both presidential candidates, each of whom would be under enormous pressure not to look "irresponsible." Even better, getting some TARP money from congress would create a huge distraction from the gigantic amounts of non-TARP money the Fed was shoveling out the door.
So all they had to do now was make congress terrified the economy was about to collapse. And to do this, they needed a plausible story.

Perhaps. But it's that AIG thing that bothers me. AIG is an insurer- not a bank. They owed a shit ton of dough in claims to Hank's old employer, Goldman Sachs. The same bastards that originated those shit derivatives, sold them as AAA quality knowing damn well they weren't, and passed the liability onto AIG.  Does the FED have any obligation to bail out an insurer? Would it even want to? The truth is, I don't think so. In fact it may have even been illegal. Is it possible that TARP was simply a cover story to bail out AIG and make it look good by throwing a few bucks at banks as well? I think so. I think AIG was the goal and real purpose of TARP.

Note the international flavor of FED loans at this link. The American Central Bank. How's my ass taste, chumps.

Now, we are left with Ben Bernanke. His job is to continue the cover up of a worldwide banking system that is bankrupt and a stock market made of smoke and mirrors sprinkled with quantitative easing and more debt. I wonder how he sleeps at night.

Government Cowards 4, American Citizens and Taxpayers 0

It's no wonder to me why President Obama sidestepped the financial collapse of our country. They co-opted the poor sap before he even got in the door. He never saw it coming. Carved up like a Christmas goose as my grandma used to say.


DaveP said...

"Is it possible that TARP was simply a cover story to bail out AIG and make it look good by throwing a few bucks at banks as well?"

You're on the right track, but IMO it's reversed: bailing out Goldman Sachs was the goal, and hiding that by throwing a few bucks at insurance giant AIG (which were passed right thru to GS and others to the tune of ~$10B or so) was the cover story.

Keep up the good work!

hac5x3 said...

Yeah, like "they" need real and plausiable excuses to do what they want.