In the last post, I warned that times are going to get harder, and I also claimed that the economic crush we're in was started on purpose. I still stick by that claim. I was thinking about this long before the economy totally crashed and the government decided to put a band aid on the so called stimulus checks. Imagine my relief however when I found I wasn't the only one who believed in a conspiracy of sorts. I want to focus in this post on the reasons behind the economic disaster that many of us are feeling right now.I started paying attention to the financial news when my husband's work started slowing down. He is a heavy equipment operator (and a darned good one at that!) who's company works in new home construction. It started slowing down way before the housing mortgage crisis hit. I started watching also, the oil and gas prices, as they were starting to sky rocket about the time my husband's work was slowing. Higher gas prices, as you well remember, meant higher grocery store prices. I had to pay attention, to save what little money I could.
One of the stories I saw back last September had to do with the oil countries in the middle east. From (http://worldnetdaily.com/index.php?fa=PAGE.view&pageId=75856) Worldnet Daily's Jerome Corsi, an editorial about these countries meeting to form a new union, much like the European Union, to where there would be one currency. The council was created in 1981 to promote the development of the member countries, and the monetary union will work in the creation of a central bank to issue the single currency. Five states in the compact have agreed to set 2010 as the target date for the creation of a monetary union and the adoption of common currency where the emergence of an Islamic single currency shows huge step in the worldwide movement to do away with national currencies such as that of the European Central Bank and the euro. You can also read more here.(http://www.financialsense.com/fsu/editorials/2008/1126.html)
As more groups are beginning to think about "unionizing" after the same model of the European Union, there will be no reason to believe the United States will not be a part of a North American Union as well. There have already been plans being discussed about this, and a South American Union. You can read more here. http://www.worldviewtimes.com/article.php/articleid-3663
On to the housing mortgage crisis.
Last year, when I still had my blog on AOL, I wrote about the key players in the whole mortgage crisis. I am not going to go into all of it again, as it's already happened and we're all feeling the effects of the whole mess- which in large part was brought on by democratic leaders such as Christopher Dodd, Barney Frank, Barack Obama and the Clintons.
Fannie Mae and Freddie Mac were run by Clinton cronies who received millions of dollars from the organizations. Democrats were in the pockets of these companies all along and refused to do anything about regulations such as the Bush administration and others were calling for. A repeat of the statement of Barney Frank, back in 2003 where he stated, "‘‘These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis”. Keep in mind that Frank of Massachusetts, is the ranking Democrat on the Financial Services Committee. He adds, ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”
The story in the New York Times, from 11 September 2003, shows that the President (Bush) was on top of this more than five years ago. Instead of working with Bush to provide better oversight on the mortgage lending companies, it was continually OPPOSED by Congressional Democrats. The Democrats came up with plans that allowed people to buy houses they could not afford and this is why there are so many foreclosures. Add the greed of companies who wanted to make a buck (and were afraid of penalties if they denied loans) and you have our current economic situation.
Keep this in mind when Barack Obama (the second biggest recipient of Lehman Brothers and Fannie/Freddie money) keeps telling us that it is failed Republican policies that led to this, and that it is the few Republicans remaining in Congress and the Senate who are working hard against this second round of so called stimulus bills.
Nancy Pelosi is a liar. She and her Democrats bear most of the responsibility for this. Barack Obama is a liar. Barney Frank is a liar. Frank, who's gay lover was an executive with Fannie May, received more than $40,000 in campaign contributions since 1989. They are all saying the same things over and over. They blame it all on the previous administration. They blame it all on Wall Street. On greed.Barack Obama had been in the Senate for just under four years and he has received $395,600 ($98,900/year) from Fannie and Freddie money. Chris Dodd raked in $133,900. Keep in mind too that Dodd is the chairman of the Senate banking committee! Who're the greedy ones? Can anyone say conflict of interest?!
Then there was Countrywide. Countrywide Financial Corp. makes mortgage loans through a huge network of offices, brokers and call centers. A select few privileged customers have gotten their loans a special way: through Countrywide Chief Executive Angelo Mozilo. These borrowers, known among big shots at Countrywide as "friends of Angelo", include two former CEOs of Fannie Mae, the biggest buyer of Countrywide's mortgages. One was James Johnson, a longtime Democratic Party power and an adviser to Sen. Barack Obama's campaign. Another was Franklin Raines, a onetime Clinton administration budget director, who left Fannie Mae amid an accounting scandal in 2004. After flack from some of the public, Johnson stepped down from his appointment of one of those who helped to vet Obama's VP choices. Oh, and Chris Dodd? Dodd had received FOUR mortgage deals from Countrywide, instead of just the two initially reported by Conde Nast (saving him a total of $70,000)! Remember, Dodd waas also on the Obamassiah's list for possible VP. If you can stomach it, you can see and read more here.
Now let's look at the appointees of Obama. Remember the famous Pelosi promise? To get rid of the so called culture of corruption on the side of the republicans? Let's look at the "non corruptible" appointees Obama has picked for high positions in his administration shall we?
We know that Bill Richardson had to step down from his appointment by Obama for questionable business practices. We also know that Tom Daschle, Obama's pick for Secretary of Health and Human Services had to step down for income taxes he never paid. What happened before though, with Obama's pick for Treasury Secretary, Timothy F. Geithner also had some past income tax issues, (failed to pay income taxes for five years) but he was approved by the senate committee anyway. Gaither, before he became our Nation's Treasury head, was charged with overseeing and regulating as head of the New York region of the Federal Reserve Bank, then became the ninth president and chief executive officer of the Federal Reserve Bank. The Federal Reserve Bank of New York presides over Wall Street-based financial institutions. In the current financial crisis, the Federal Reserve has played a major role in responding to the bank and investment firm collapses. According to Worldnet Daily and other sources, Gaither was in charge during the following economic failures:
March 2008: Investment bank Bear Stearns collapses from losses in subprime mortgage obligations and derivatives transactions; J.P. Morgan Chase buys Bear Stearns in a deal arranged by the Federal Reserve for the dramatically reduced value of $2 a share, with the Federal Reserve guaranteeing J.P. Morgan against $30 billion in Bear Stearns asset losses.
September 2008: Wall Street investment bank Lehman Brothers closes doors in bankruptcy after the U.S. Treasury and Federal Reserve refuse to arrange a merger plan, a bailout or a guarantee program to save the Wall Street giant.
September 2008: The Bank of America buys Wall Street investment bank Merrill Lynch in a $50 billion deal that saves Merrill Lynch from having to declare bankruptcy.
September 2008: The Federal Reserve extends to insurance giant American International Group, or AIG, an $85 billion loan that saves it from going bankrupt from derivatives loses in a massive $441 billion exposure to credit default swaps.
November 2008: Citibank received $45 billion through the Troubled Asset Relief Program, or TARP, plus Treasury Department, Federal Reserve and FDIC guarantees on $306 billion in troubled assets held by the bank.
January 2009: Morgan Stanley takes over Citibank's Smith Barney investment unit as Citibank unravels the "financial supermarket" conglomerate accumulated when Sandy Weill combined Travelers Insurance, investment bank Smith Barney and Citibank to form Citigroup in the 1990s.
After all this, Obama and CO. were smooth enough to show Gaither as a money genius and enough people who were in the position to deny his appointment, for some reason voted for his appointment anyway. I'm sure many people are wondering how this could be? Well, for starters, the man has his connections. He worked for Kissinger and Associates for three years in Washington, D.C. http://en.wikipedia.org/wiki/Kissinger_AssociatesFrom 1998-2001, he served as under secretary of the treasury for international affairs under Clinton administration treasury secretaries Robert Rubin and Lawrence Summers.He has previous ties to Obama, when at the Ford Foundation in the early 1980s, Geithner oversaw small finance programs in Indonesia, where he reportedly met in person with Obama's mother. Ann Dunham spent part of her career working in Indonesian small finance after she received her Ph.D. in anthropology. He is a member of Council of Foreign Relations (more on this in my next post) a world wide elite group consisting of Banking and Investment CEO's, Politicians, News media and journalists and other elites such as Purpose Driven ear tickler- Rick Warren.
Then there was the darling of the first stimuli plan- Henry Paulson, who works so well with both Republicans and Democrats. He worked with Goldman Sachs for more than two decades before rising to his present government position. When he came to work for the government, he readily and willingly took a huge pay cut.
He earned some $800 million during his years with Goldman Sachs. With this kind of income, was it just his willingness to "give back" to the people, to work as a pencil pushing fed bureaucrat? Or, could he still be working through the government to help out his former elitist buddies at the expense of U.S. taxpayers?
By the end of last month, Paulson and Fed Chairman Ben Bernanke steered loans and guarantees of more than $7.4 trillion to the financial elite that was responsible for creating the economic crisis. $200 billion in loans to financial institutions, $29 billion in loans to J.P. Morgan Chase, $300 billion housing bill, $200 billion for the U.S. Treasury to assume Fannie Mae and Freddie Mac's debt, $85 billion to AIG and $70 billion injected into the financial system, $50 billion pledged to support Money Market funds, $150 billion made available to U.S. banks and $330 billion made available to foreign banks, $1.3 trillion in purchase debt from companies, $1.4 trillion in FDIC guarantees of interbank loans, $20 billion loaned to Citigroup with the Treasury Department assuming responsibility for 90 percent of Citigroup's $306 billion in debt, and over $500 billion in loans for mortgage-backed assets and $200 billion in loans for consumer-backed assets. This is just some of it, and now with this new pork and spend/payback bill the house and senate and Obama are pushing for, how long do you think this country can survive financially? Where is the money going to come from? If they print it- we'll have inflation like you've never seen. If they borrow it from say, China or other countries we already owe, what happens when these countries call for it back? If they put a massive tax burden on corporations and other large businesses, it will kill the economy by massive lay offs and closures. I don't know about you- but I'll never be able to give enough in taxes to pay for it, and neither will my children or grand kids.
One more, and that's it for this post. I'm sorry this one again is too long already!
Barack Obama's White House chief of staff, Rahm Emanuel, (yet another ex Clintonite- so much for the promise of Change Obama promised his disciples) told business leaders assembled by the Wall Street Journal in November that the economic crisis facing the country is "an opportunity to do things you could not do before." He later added, "You never want a serious crisis to go to waste." Is that not an interesting statement!?
What kind of opportunity may Emmanuel and others be thinking about? We'll look at that in the next post. For now, if you haven't already commented on my first part, please leave hints on how you are saving money and making ends meet. We can all help each other through this.