How The Fascist Government Will Continue to Screw the Middle Class

Update: The Fed Wants Interest Rates to Stay Low

Update: The Federal Reserve got nervous and considers that the economy is not self sustaining. Therefore the Fed has scrapped the idea of reverse repo and is buying bonds from the treasury through primary dealers like Goldman Sachs. These primary dealers make a handsome profit. And these dealers trade oil and other commodities in an upward fashion, hurting mainstreet with higher costs of living. This, in a world of globalization and decline of wages is a boneheadedly stupid decision. Perhaps this private bank will decide to protect the wage earners through protecting value of the dollar but don't count on it.


As I wrote for Seeking Alpha awhile back, the Federal Reserve private bank wants to sell bonds off their balance sheet in the form of a reverse repo, while also trying to sell the massive amounts of the administration's treasury bonds at the same time. This need to sell bonds could have an adverse affect on stocks. The Fed wants interest rates to stay low to please our creditors. It has the adverse affect of robbing from savers and the elderly. The Fed is in between a rock and a hard place when it comes to interest rates.

Nothing changes the fact that this policy is literally stealing from savers and frugal people, We have had a rape of the American middle class by this banking class that promoted low capital requirements and off balance sheet banking at Basel 2. Bush and Greenspan used this loose money plan to finance the Bush presidency. But the culprits in charge were at Basel. We should have other rules coming out of Basel 3 so stay tuned.

But this theft from savers is the result of banks borrowing from the Fed at 1/2 percent and then buying treasuries to keep the yields down, and profiting off this theft from savers. This is wrong, and while the US cannot really afford more interest, this is a war against savers, and the General In Chief is Ben Bernanke!

The Rip Off of the Middle Class Continues

Update: Much of what I have written below has come true. America is now deep into debt to the banks, and a few privileged banks are gambling at the casino of swaps and bets like no meltdown occurred. But as of October, 2009, this credit crisis is not over, the banks are not out of the woods, and the Fed is buying all the mortgages, lending at low rates so banks make money while depositors are impoverished. I have a bad feeling about the future of this crisis. I don't think that the reflation by the Federal Reserve will work, and it may turn out that all that money given to the banks will have proven to be wasted. As of this month, 90 percent of the alt a liar loans have not reset, and that will, along with higher capital requirements, keep our big banks zombies for years. Geithner and Summers continue to steal for Wall Street, making the Obama presidency a failure, as was the Bush Presidency. More later.


Update: The alt a chart shown below has been modified on a pdf chart which I am adding. Please note that the new chart reflects the refinancing and kicking the alt a can down the road. It show that the resets have been pushed out through 2013! This greatly extends the potential downturn years out and puts the big banks in jeopardy years into the future.


The ponzi housing scheme that ripped us off was created by George Bush and Alan Greenspan to finance the War for Oil in Iraq and make money for the international cockroach bankers. But the screwing of the middle class is continuing.

I have a list of websites that deal with each facet of this issue, but you middle class people better watch out, because you remain under attack. And you are being attacked by the financial sector which controls your government.

Do not be deceived, until further notice the banks are in control. The banks, with the power of the federal reserve behind them, or in front of them, are in control. The 40 percent stake that the government is taking in Citibank is not nationalization like the Savings and Loan crisis, but rather it is fascism. They are putting enough money into this bank to control more than 80 percent. Yet they are only taking a minority stake. This is fascism and the war on the middle class continues.

But then, on top of this, we are going to be issuing a massive amount of government bonds that will come with higher interest rates. In order to offer these interest rates, the government will have to print more money. This will cause a massive inflation. Now we all know that inflation is not the problem now. We have to fight deflation, and certainly it would be irresponsible not to. But the government is a slave to the credit default swaps that surround all the bonds of the banks, of the car companies, and of the insurance companies. If these companies fail the CDS or Credit Default Swaps will put the wealthy class in danger of serious hurt.

Therefore, it is the financial system's mad idea to continue to kill the goose that laid the golden egg, the middle class, while they prop up the bonds. Why are they doing this you say? Well, it is simple. The bonds of the corporations have been layered by credit default swaps. So if you have a corporation that has a billion dollars in bonds, and has 10 billion dollars of cds insurance on those bonds, the default will cost investors 10 billion dollars, not 1 billion dollars.

So, they think they can do a little stimulus for the middle class and all will be hunky dory. But I say that will not be the outcome. I believe that the middle class will lower spending for years and years and years.

So, I guess I need to list the ways we are going to being screwed as a middle class by the financial system:

1. Bonds of major companies will be protected because the CDS insurance cannot fail without hurting other governments, banks, and the rich.

2. Banks and insurance companies will get massive infusion of money from taxpayers but the bonds won't be allowed to fail. It is better to kill the middle class than to allow the rich to lose their investments (and the foreign banks who bought the toxic investments). For an update I refer you to my blog for an insight into what Basel 3 is up to.

3. Inflation will go crazy and interest rates will go through the roof, but only if we beat deflation. But this beating deflation will come with a huge inflationary tax upon the middle class once this is over.

4. The credit rating of the United States could be lowered because of all the money we are giving to protect the rich and their CDS exposure. This will cause higher interest rates for the middle class. The rich don't need to borrow.

5. I have a debate with another hubber here on hubpages about whether the conspiracy by the banks extends to a refusal to lend. I don't have an answer at this point. I believe that the government conspired to inflate housing prices. I do not yet have enough proof that they are doing anything but protecting their capital. But clearly, the banks are controlling the government and are fleecing the taxpayers. It is sickening what they are doing and the middle class will pay dearly.

6. The guy who buys a house in this environment could have one of two very bad things happen. First, his house could continue to go down in value and the deflation could kill his house value. Or second, he may need to sell later when interest rates are sky high. It will put the value that he invested into the house in jeopardy to sell into sky high rates.

7. Even the 30 year mortgage could go away, leaving home buyers with a mortgage in instant financial trouble.


My Comment About the Rape of the Middle Class at Seeking Alpha:

I am responding to a smartly written article about how the US trade deficit is widening, just the opposite of what is wanted by Summers and Geithner, President Obama's two stooges of economic advice. I wrote:

"The plan, led by Larry the moron Summers, was to forget about the middle class here, and just export our way out of this recession. He is a fool. He cannot see that we can't export enough and our consumer is king. If the consumer is dead we have no king and the world is screwed."

Now I hope I am wrong. I don't think that I am. Unless there are changes to the American way of life, specifically help for the consumer in the form of asset deflation, I don't think that we can export our way out of our financial difficulties.

Update: We are worried about the dollar and the possible precipitous fall of the dollar that will result in the need for a weak economy to have imposed upon it sky high interest rates. This will ruin many who are trying to make money on the carry trade. Even this 1994 prediction by a billionaire capitalist, Sir James Goldsmith, is proof that GATT and global capitalism is pitting corporations against the society and the common man, where the economy grows while unemployment and society is destroyed. Charlie Rose has a female foil, Laura Tyson, who, as we see today, is just totally wrong. Don't listen to the happy talk of this female pumper of this system. She is a LIAR.

If you think that Laura is wrong, just do what I did and email her here at her current location:


tyson@haas.berkeley.edu






This is Why I Hate Everything Tim Geithner Stands For

CIT group, not to be confused with Citibank, who went bankrupt on Nov 1, 2009, is a key lender to small business in the US. Geithner, fascist pig that he is, gave 2.3 billion to this company, and the government and you taxpayers will lose every penny of that money. Indeed, the bondholders will only take a 30 percent hit, you know, like Goldman Sachs. But did Geithner put US taxpayer interest at the head of the line in front of Goldman Sachs? Hell no he didn't.

I wish that down the road this man reaps what he sows. I hope he dies penniless. No one deserves it more, unless you count Henry Paulson, who shorted the very real estate bonds that he sold while at Goldman Sachs, without bothering to disclose this fact to pensions fundsa and investors. When will this country come to her senses? These thieves deeds reach up to heaven while the US citizen sleeps! Think I am angry today? You bet.

Here is the lesson of this theft. I am not the only one thoroughly disgusted that the taxpayer is getting ripped off. If you can get away with not paying taxes it would be patriotic at this point.

Meanwhile the casino plays on and that is and will be a rip off of the consumer and small investor which ever way it plays out!

Tim Geithner's First Allegiance Is to Big Finance and Corporate Fascism

That is a harsh charge but it is the truth. Geithner is a federal reserve man. linked to the front for International bankers, the Council on Foreign Relations, (CFR).  His allegiance is to big fianance, not to the middle class, and he is determined to rape them until they will no longer be able to breath. Geithner allowed the ponzi housing bubble as president of the New York Fed and did nothing to stop it when he could have stopped the shadow banks starting in late 2003.   

Bottom line, the big banks have massive exposure to CDS insurance, to Alt A and option arm loans, and their bonds could be worth little. Yet the fed is so afraid that the rich and other governments will be hurt by defaults on mortgage, then corporate bonds and then on their speculative CDS phony insurance.

Well, Geithner, if you kill the middle class it won't matter that you save the banks. You will save them for nothing. Save the middle class instead Geithner. The US middle class accounts for world prosperity. Our spending accounts for 70 percent of the US GDP. Without our spending there will be no world recovery. We already know you don't respect us because you didn't pay your taxes moron.

People can see here the Alt A Meltdown Chart. New chart in PDF.

Know this, middle class, it is fascism to raid the treasury of the United States to bail out corporations when that bail out will cause inflationary tax. I don't have a problem with a small bailout of a strategic corporation. I have a big problem with this mass bailout of everyone, especially the financial sector. And the automakers may take a bond hit because they are selling so few cars, although the bailout could put the banks at risk. Still the banks will be protected unless they completely melt down. And even then it is likely that the banks and their counterparties, the hedge funds, will be protected at the expense of the taxpayer.Bond holders in the banks corporate bonds should take a hit but they won't.

You certainly know that we are fighting deflation. But the way to fight deflation is not to put the treasury money down the black holes of these banks, AIG, etc. The way to fight deflation is to understand that the American consumer is 70 percent of the American GDP. Yet this policy of feeding the banks, with a fascistic control by the banks rather than a real temporary nationalization, a dismemberment of the banks, will impoverish the middle class even more. First banks stole through the ponzinomics of Basel 2 and now they want to raid the treasury. See links below for more on Basel 2.

Geithner this is a call to you to quit destroying the middle class. Stimulus should be for jobs, and NOT for banks. Take them over and tear them apart. And do it fast or you will go down in history as the most vile politician since Hitler and Bush 2.

You won't be a murderer, but you will cause death and destruction if your plan doesn't work. Bottom line Geitner, do a real nationalization, not a fascistic submission to the will of the banking system. And do it quickly!

And know this Geithner, if this little scheme of yours fails, we need to take back the coining of the currency and destroy the federal reserve forever. You are just a part of the Basel II, off balance sheet scam against the nations by the international bankers. You don't fool us! Here is a link to an explanation of your evil banking designs at Damn International Bankers which is my description of this great article.

Federal Reserve Feeds Banks, Not the Middle Class. But This Time They Have Gone Too Far!!!

Kucinich on Federal Reserve not being "Federal"

More by this Author


Do You Think the Bank Conspiracy Extends to Banks Not Lending? Other Comments Welcome. 20 comments

bgamall profile image

bgamall 5 years ago from Las Vegas, Nevada Author

I agree with your assessment.


we all get screwed 5 years ago

if we stiop giving are money away to other countries and make all these goverment aided lossiers get f jobs and stop bailing out theses big corprations we would be a more beter off then we are


bgamall profile image

bgamall 5 years ago from Las Vegas, Nevada Author

I rant too buddy. We can rant and we can shun the banksters' products and loans. That is the first step to gaining back the nation's sovereignty.


Clark Crawley  5 years ago

What ignorant old bastard's we have in Washington, all are past any so calle prime of life. When does the revolution start ?????? Get ready cause hell is coming , thanks for the CHANGES YOU ALL WANTED FROM A MONKEY ASS PRESIDENT, BACK ROOM DEALS WITH COMMUNIST CHINA, INDIA, MEXICO which is imploding on itself and drugs. Thanks you greedy bastard BANKSTERS, CORPORATIONS, INVESTERS WHO SELL OUR GOVERNMENT, REGULATIONS, RESTRICTIONS, EPA, AQMD ALL AGAINST US. YOU ALL LOBBY AGAINST AMERICANS AND JOBS, CREATION OF JOBS, AND PROFITABLE CORPORATIONS HERE IN GOOD OLE US OF A . F U K THE GOVERNMENT , ALL OF EM AND WHAT THEY DON'T STAND FOR ANYMORE, SINCE DIP STIK CLINTON AND FREE TRADE TO ALL BUT US !!!!!!!!!!


eliate 6 years ago

Well, the UK is just as bad, the banks here lost a lot of the Middle Class People money on one of the ventures and lost the lot and putting the UK economy into a deep pile of s@*t, people were loosing their jobs left right and center, the price of living went sky rocket and still is. But the no shamed banks turned to the so called government here for help and guess what, they got it, and who did the so called government turn to, The Middle Class People, the people who's money the banks lost in the first place, so they could get themselves out of the ruckus they put themselves into and basically stuff the people they lost the money from, (knowing in there right mind nothing would be said or done about it).

Why hit the Middle Class People, why not hit the ones who put the economy into what it is and let them suffer the consequences, let them feel what it's like to live in today's world and let them feel what the Middle Class People are feeling.

I believe the economy would be a lot better if the Middle Class People ran it.


bgamall profile image

bgamall 6 years ago from Las Vegas, Nevada Author

Thanks Jim, I think this is pretty obvious and it is pretty obvious that the government, ie the president and congress, don't have much power to stop anything the Fed does, no matter how irresponsible it is with taxpayer money. No one can trust Geithner who gave money to the counterparties with an AIG bailout. The Fed lied about it too. Here is a great article about this: http://seekingalpha.com/article/185044-is-it-possi...


Jim Bryan profile image

Jim Bryan 6 years ago from Austin, TX

I gotta give you props for knowing what Fascism is, bgamall. I am greatly dismayed how many people (like troylaplante) don't understand the so-called "Third Economy."

When mentioning Prescott Bush, it is also helpful to mention George Walker (Father-in-Law of Prescott) as a co-conspirator.

Have you ever read about Maj Gen Smedley Butler or the plot to overthrow the government backed by JP Morgan, Chase Bank, Remington Firearms, et al? He was a fascinating fellow and the plot was frighteningly far-reaching. Had he been a different sort of person, we'd might be speaking German.

Virtually all actions taken by the FED are, by definition, proto-fascist.


MikeNV profile image

MikeNV 6 years ago from Henderson, NV

$500 billion credit swap with EU Central banks and hardly anyone said anything about it! What is going on is the Central Banks have realized the way they are doing business is not sustainable. So in their last grasp of air - who knows how much longer they can survive a few years a decade or two? - they are making a run at forclosing on as many assets as possible and transferring deed of ownership within their own group of secret partners.

When the paper economy collapses ownership of all the assets will be in the hands of the bankers. When a new economy is created they will still have control.

Sickening.

People have got to get over the blame the Republicans blame the democrats thinking. Elected officials belong to one party - the "Green" party, and by green you should easily conclude MONEY not ECOLOGY. Party politics have distracted from the issues for the past 100 years. Both are to blame.


bgamall profile image

bgamall 6 years ago from Las Vegas, Nevada Author

I think old fashioned liberals never envisioned Democrats bailing out banks that had so much power, the US government is unable to take them down.

It really is an upside down world. The parties have abandoned the people for big business rule. Thanks for your comments.


Unabashed Liberal profile image

Unabashed Liberal 6 years ago from Chicago

Yeah, I agree. We are already in deep on money we owe China and other places. We need to make sure we take care of ourselves before we go giving away money our grandkids will still be paying when we a long dead and gone!

I opposed the debt before Obama and I oppose it now, no matter how noble the intention of keeping our poor banking CEO's in their fancy houses may be tempting us to send more charity to BOFA and AIG.

Let the banks be run like any other business and no more "companies too big to fail"!


bgamall profile image

bgamall 6 years ago from Las Vegas, Nevada Author

Unabashed, our only recourse is to walk away from crap big bank loans and stop doing business with these banks. If we do we hit these banks for their recklessness. That will cause them to be more careful how they behave in the future. We cannot forget, and we have more information than any folks ever did, about how the banks are scamming us, from the Bank of International Settlements, through the Fed, down to the too big to fail banks.


Unabashed Liberal profile image

Unabashed Liberal 6 years ago from Chicago

Whatever gave us the idea we were in control of anything? Our elected officials were supposed to be public servants, not to serve themselves off the hard work of the people.

Our major problem is that they divide us and we willingly go along with it. Until we recognize who the real power is, we will willingly and joyfully keep hating each other while the powerful cheer us on.

Unabashed Liberal Jake from Chicago.


bgamall profile image

bgamall 7 years ago from Las Vegas, Nevada Author

Dunn, the government has the power to cause the international banks to take a bond haircut so it doesn't cost the taxpayer so much to bail them out. But they refuse to excert that power. Until they do we have a fascist government where the financial system is in control.


Dunn Eggink profile image

Dunn Eggink 7 years ago from Kingston, New York

Who else would run the government. A movement of the people? Like the American Revolution? If Washington and friends weren't well respected businessmen I doubt we would have had a new republic. I do believe that people can stand up and steer government to some extent, but that government is by nature, the friends and relatives of the leaders of the "private sector". The only real government of the people and by the people is local community networks. The best a president and cabinet can do is try and leave that power in those jurisdictions, but I don't expect the president to do anything like that unless local economies become strong enough to stand up against overgrown invasive corporations.


bgamall profile image

bgamall 7 years ago from Las Vegas, Nevada Author

The classic definition of fascism is control of government by the private sector. True fascism is the corporate control of government.

Ixxy I agree with Prescott Bush and his documented relationship with Hitler. These guys profit off of war. No one should risk their child's life at the hands of the neocons in military operations. They aren't interested in national security, only in empire building. The neocons despise us and we despise their actions.


Dunn Eggink profile image

Dunn Eggink 7 years ago from Kingston, New York

Why do people who focus on the "world government" tend to throw around the word fascist? When you say fascist, do you mean people who are comfortable with weilding power that has been given to them by their fellow club members? What is a fascist. A person in a position of power or influence over the lives of many people who don't seam to have such powers?


lxxy profile image

lxxy 7 years ago from Beneath, Between, Beyond

bgamall,

I'll be looking at your Bush hub when I can. But please remember, this guy's legacy starts with his "great" grandfather during WW II. Mr. Bush Sr., also, has done some very bad things, as much as Junior.

It's called money, they want it, and they'll get it no matter who they have to step on.

That said, your politics are currently undersiege by the same issue: money. Remember, there is no such thing as a Republican or Democrat, for these two parties have conspired to create one; The Republican Democratic National Convention.

Sincerely,

lxxy


lxxy profile image

lxxy 7 years ago from Beneath, Between, Beyond

Great hub! In fact, so good, you're being linked backed.

Here's where: http://hubpages.com/education/wherecorpslie

Y.T.,

lxxy


bgamall profile image

bgamall 7 years ago from Las Vegas, Nevada Author

Hi Troy. Fascistic socialism is where the banks are in control. In socialism, the government is in control. We have had the banks in control for too long. It is time to tear them down and let the middle class prosper. The government must protect the middle class from the bank raids on the treasury. At this point they are refusing to do so.

While the ponzi elements started earlier, the Bush admin brought the system to its evil fruition. Bush was a murderer, and a liar and a man bent on stealing Iraq Oil no matter what the cost. I have a hub about the Bush Legacy. Check it out. Thanks for commenting. 


troylaplante profile image

troylaplante 7 years ago from Selma, NC

Actually, a government ownership stake is more like socialism, not fascism. Fascism is more of absolute government control over private ownership. Either way, we are hosed as tax payers, consumers, and citizens. The housing ponzi scheme, as you put it, was not a G.W. Bush invention. It was a Jimmy Carter invention that was on a bit of a hiatus through Reagan and Bush I. The Clinton administration revived the efforts and they continued through the Bush II era. To blame George W. Bush for that is not accurate or fair. I am no Bush apologist for certain, and I strongly disagree with much of how he ran his administration. However, fairness is appropriate here.

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