The World's Biggest Ponzi Scheme

“The Day the Earth Stood Still” may be a film-remake from the past grabbing the imagination of viewers by telling a story of an alien space craft landing on Earth, starring a human looking outer space man and his loyal robotic companion, but the fact is the Earth has begun to stand still because of the world’s biggest Ponzi Scheme, which began 30 years ago, and now, has come to an overwhelmingly loud screeching halt.

The nation has fixed their eyes on the economic vampire, Bernie Madoff, who ripped off his richest-of-the-rich investors out of $50 billion, as well as others managing funds of funds and closely similar concoctions. The media has clamped on him the ball and chain label of Number 1 Ponzi Scheme Con Artist. I have to disagree. The Number 1 Ponzi Schemer, the world’s honorary economic predator, goes to President Bush and his 2 heister-shyster racketeer side-kick vampires: Hank “The Paulie” Paulson, and “Bada Bing” Bernanke. The grandmaster Ponzi Schemer award goes to Alan Greenspan, who began the entire plan under Ronald Reagan.

This 30 year in the making, American government-endorsed, and president-presided-over Ponzi Scheme is what has severely damaged our economy, as well as other economies around the world. China has played a big role in the downfall by becoming the world’s assembly line using low paid, unprotected workers. Millions of drone assembly line recuits paid for by multi-national corporate greedsters killing jobs in our country while enriching themselves through low paid, with no-to-minimal benefits exploitable workers. By doing so, these corporate predators have increased the GDP of China, which has funded our debt oriented lifestyles, while, at the same time, kept their currency artificially as low as the dollar so their “stuff” could be readily available and real cheap to the maxed-out, over-spent American consumer.

Greenspan claiming he had no idea that our financial institutions were not capable of policing themselves is like saying that a vampire has no idea that their victims would end up completely drained of their life-sustaining blood after having drunk their dinner. In Japan, such a widespread and devastating failure would find the prominent authority figure responsible for the grand theft swindle taking hold of the honored Samurai sword for their final admission of guilt. Mr. Greenspan, we are still waiting for this very final apology!!

Bush has allowed Bernanke and Paulson to further the government’s Ponzi Scheme role by dumping more burdensome, unsustainable debt onto the shoulders of taxpayers, their children, and children’s children. Bush never took on the blame for the economic meltdown. He has always been compelled to deflect the finger-pointing away from himself and toward Congress, as well as Wall-Street, yet it was HE who put the Ponziites into the SEC, the Congress, and embedding them throughout the government, while encouraging lenders to loan to anyone who was breathing when they were walked in to sign for a home mortgage loan.

“Corporate America has a responsibility to make America a compassionate place”, said Bush. His code word for Ponzi was compassionate. He also said, “Wall-Street got drunk”, and corporate greed, along with market excesses, and the flow of foreign cash were to blame, yet he has yet to identify himself as the bartender for those drunken Wall-Streeters. Bush himself a proponent of greed and excess, and the recipient of his own personal foreign cash bailouts resulting from his failed oil businesses, has embraced the failed Ponzi framework disguised as free market economics. Such trickle-down, laissez-faire, free-market policies were actually the propellant used for this blazing bonfire of the economic “vanitees”.

President Bush and many congressional cons and hacks were recipients of generous campaign contributions from the financial banking industry indebting themselves to the richest of the financially rich allowing their Ponzi Scheme to go unregulated and unsupervised, and without question or transparency, while escorting Bernie Madoff into the arena of fraud with top hat in hand, as one bows gracefully before the Man. Bush’s con-artist advisor was his senior Ponzi promoter—Karl Rove.

Bush began his own presidential phase of the 30-year Ponzi Scheme with his effort to use his position as president to push his government into enticing and encouraging middle class Americans to use their credit worthiness to borrow and buy bigger, heavier, and even, thirstier vehicles, fancier washer and dryer machines, stainless steel stoves, vacations and much, much more pleasing the Ponzi bankers.

The Ponzi bankers wanted to squeeze more and more from the shrinking budgets of middle class Americans by convincing them to take equity out of their homes and increase their mortgage debt, while raising their debt burden, but softening their blow with lower rate re-financing packages. The economic Ponzi Parasites delighted in more available credit-driven debt formed into more non-transparent derivative obligations, which were insured against failure through credit default swaps.

Next came the “Go-Shopping” bugle call following the 9-11 tragedy. Polish up your credit cards and do your civic duty. Add to your debt, again, for the sake of the nationalized Ponzi Scheme!!!

All of this increased middle class debt giving the Ponzi Predators more debt to sell, while grabbing more fees, commissions and bonuses for themselves. This process turned into more non-productive wealth increasing the GDP, and fewer non-exportable products sold in order to help lower the trade deficit, which actually added to it.

They used the incomes of middle class consumers to fuel their Ponzi Scheme. All forms of consumer-driven debt was packaged and sold from bank to bank from hedge fund to wealth fund to broker-dealer, everywhere in the world, excessively leveraging their manufactured debt-driven derivative toxic hot potatoes turning one toxic hot potato into 100 of them; and then, taking those 100 toxic potatoes and making thousands more from them to the tune of 1000 trillion hot potatoes spreading worldwide in scope. Today, many have vaporized and all that is left is around $62 trillion.

Much of this exploding debt asset bubble inflated home and commercial real estate values increasing the opportunities to further speculate, which pushed prices artificially upward. What began as mortgage debt selling morphed into a serial re-financing Ponzi Scheme eventually collapsing for most of the investors down the Ponzi Line, except for those close to the top who profited immensely as they tried to stash their bootie into more secure locations.

Just in the last couple weeks, The Ponzi Aristocracy are considering adding more to the smoke and mirror illusion by bailing out hedge fund vampire predators, since they have gone to Bernanke, Paulson, and Bush crying for help. They want the taxpayers to permit the bundling of auto, student and credit card loans to create securitized debt obligations in hopes there would be investors awakening from a deep, deep decade’s long sleep willing to buy these non-transparent loans, many of which might actually go into default, as a way to add more debt to America’s balance sheet. This Fed Window is called TALF, which means Term Asset-backed Securities Loan Facility.

These hedge funds want to borrow $200 billion from the Fed’s TALF window at virtually a zero interest rate to sell pools of credit card receivables, auto loans, and student loans. Their drooling desire is to find suckers who might be brainwashed into buying them up. I wonder if there are any Rip Van Winkle-types, now waking up, who are looking for investments?

As America falls further into its economic abyss, the Ponzi Aristocracy want to further their riches, while the United States enters, what maybe viewed as, bankruptcy, in 2008-09. The projected cost of the bailout is $8 trillion. Fannie and Freddie Mac are guaranteed $5-6 trillion. In 2007, the public debt, what the U.S. owes foreigners for funding our economy—the two wars, etc.- amounts to $10.6 trillion. Yet, our GDP, all that the U.S. brings in to the Treasury and the nation’s net worth comes to $13.8 trillion.

Our debt is, at least, $23 trillion, but our GDP is $13 trillion. America’s private debt is considered a bit more than 100% of the GDP. Our debts exceed our revenues. So, what we are left with is our current government willing to create more Ponzi Scheme debt, but not invest a penny into the real economy—the economy that produces things, hard goods, that are created, crafted, and sold worldwide. This is what is called the industrial and manufacturing economy, and not the financial-debt-paper asset-class economy that has miserably failed us.

This Ponzi Scheme was known, supported, facilitated, promoted, and advanced by those given permission inside the government and from those contributing to it. This was all a massive predatory vampire-like scheme to suck the personal assets out of working America in order to enrich the richest of people; and now, once it has collapsed around them, they want to be bailed out!!! This has been nothing more than the biggest economic heist ever planned or schemed.

Two real burning questions to ask about the world’s biggest Ponzi Scheme are: where is the outrage, and, where are the indictments?

Happy New Year, jerry

Republicans Killing the U.S. Auto Industry

Children of Christmas please sit down and listen to this extraordinary tale of a once lively and proud political people who are now beginning to fade into a dark and distant past. They have been renamed by the survivors of a great nation. The Regressive Party, as they are known today, were once known as Republicans-conservative Republicans. A most fatal blow came to them when some powerful Regressives: Senators Ensign, Coburn, Shelby, and DeMint, to just name a few, circulated a self-incriminating communiqué amongst themselves stating they were voting against the auto industry's request for a bridge loan. This was their DeMinted method to inflict revenge against the Democrats, and unions for supporting Democrats, who are generally behind union workers.

The very people who created the now United States of a Socialist America (USSA) through their kleptocratic,  greed-based formula, which was built upon their recipe of political favors and revolving door politics, while throwing government regulation, accountability, transparency and any degree of responsibility to middle America out of the mixing bowl as the economy of America went crashing upon the Wall (Street). (By the way, the term, "Side Street" to further describe the adjoining Main Street, but not quite on it, was first used here on this blogspot, and is now being used by those appearing on the public airwaves!!! You heard it first on Eye on Washington.)

The gall of such Regressive political mobsters, who, no doubt, took their "driving" lessons from another wiseguy-Rod "the Hose" Blagojevich, the drowning, yet King of Hairdo, a place very few go for fear they may never return looking the same as when they entered, and  governor of Illinois. Rod, you need to whack that do!

What is left to say about America's top three's executive industrial thieves, who were paid in the tens of millions of dollars per year, along with big bonuses, opulent expense accounts,  huge perks, and other luxurious  compensation packages filling their Christmas stockings year after year after year. The Regressives had nothing to say about this over the last 30 years, but hated the idea of working union members earning a good salary in order to float the economy. The auto industry has been 4% of our GDP. The financial industry was around 23% of our GDP, but now is virtually zero.

We have now learned it's working Americans who pay the way for the nation, and not the top-tier rich. If this were so, then why aren't they carrying the economy during this credit freeze? Then why are they selling off their diamonds, extravagant second and third homes, and cars and yachts? It is because without a financially stable, secure and well paid working middle class America, there is NO economy!! It disappears. And, without an industrial and manufacturing economy, which is able to export products made by highly skilled, and educated workers, there is NO economy. If all there is is a financial, and service economy, there still is NO economy that is sustainable, viable, and exportable. It is not the CEO of G.M, Mr. Wagoner, and his uber-rich kleptocrats who keep the economy moving, but the workers in the plant who do so.

A bridge loan of some sort needs to be presented to the CEOs, along with hard-hitting contingencies. For example, downsizing the number of car models and makes, sending big SUVs to the bone yard, ending the cash delivery system which has enriched the CEOs and top-tier executives, and replacement of the CEOs, who made the decisions that killed their companies; and not to forget an EV-1-like affordable replacement; or, the government should consider "nationalizing" G.M., and Chrysler, since they want some economic gravy poured over their burnt-up industrial offerings. Take them over, restructure, and merge the two companies into one quality-driven and lean operation, and then, offer a lifetime warranty on specific models, such as the Aveo, Malibu, Vibe, and Caliper for new car buyers. By doing so, America might be able to begin taking market share away from the foreign car companies, which would, in turn, lower the trade deficit. Once this was done, then sell the new and revamped Car Corporation of America to the highest bidder, with a guarantee that the UAW would maintain a 49 or 50% ownership stake in the company in exchange for a leaner contract, which would be negotiated and in place for a 5-6 year period of time. It seems like it could work, except for the Regressive Party's insurgency power plays.

But, many of us know that the Regressive Party wants a steep and prolonged recession so their Bankstanista pals can buy up the remaining hard assets once the economic meltdown cools off and what remains standing can be bought up on the cheap. The Regressive's dirty little fingers have been kept warm by the Bankstanista's own hedge and private equity fund groups that offer safe protection from those finger whacking poor, down-trodden, and economically damaged constituents, who just might send them walking on the next election day.

So what might the Regressives do? They could dump the entire auto industry bail-out/bridge loan plan into the lap of Mr. Accident-Pants, their exiting boy party leader--President "Two Shoe-Duck and Cover-What's His Beef" Bush. It is now he, that will lead the nation closer to the socialistic state that the free-market, neo-liberal, freedom-fry fighting Regressive foot soldiers despised in the open, but embraced behind their office doors.

But how it has changed. The Regressives now fly the flag of Ronald Reagan and Herbert Hoover high in the cloudy sky as they begin to retreat in their waning days of power only to dream of amber waves of grain and colorful majesty, while sleeping in their styes, hoping to return, once again, for a victorious win sometime within the next decade, or two. By then, most will be gone only to reminisce over their glory days when money could be created out of thin air and life in the Hamptons was grand.

Merry Christmas to all and to all a good night!

Thanks for reading this blogspot, which has over 200 pages of opinion written over the past year. We appreciate your time and interest, and hope you continue to return. Thank you all. Jerry and Carl.

A Low Budget Christmas List

Jerry says,

I love the Christmas Story movie. Festival Express DVD concert train trip film is terrific fun! It is a favorite. Homemade CD compilations, homemade cards, chutneys, salsas, and jams, aluminum lined coffee mugs, firewood for friend's fireplaces, smooth and flat cut stump logs to use as plant stands or in other ways (you can find them wherever a tree trimmer is found), Down slippers (Baffin brand found in the Sahalie.com catalog), winter ear bands, neck gaters are nice, books (Jim Harrison books --fiction), Naomi Klein's book, Disaster Capitalism), coffee shop gift cards, "Mr. T In Your Pocket" adult gag toy (Google Mr. T. in Your Pocket), quality gallon jugs of pure apple juice, and sweet potato maple pie with pecan crust originally found in Gourmet Magazine (November, 1980s) some 10 plus years ago. For younger kids, the tool belt found in The Duluth Trading Company catalogue. It is really cool!!!! New CD's "Edele 19", and Ryan Adams, "Cardinology" Older CD's, Van Morrison's "Days Like This". If you want to splurge, check out those electric mattress pad covers. I have one, and love it. If you keep your home very cool in the winter, this makes the bed so toasty warm. Also, Duluth Trading Company (duluthtrading.com) has an men's and women's catalogue. Great stuff. The men's MN Trucker's jacket is great. A warm sweater-like shirt, nylon, and very warm and light weight. I have a similar one and wear it always in my very cool house. I just gave a cousin of mine the "Space pen" found at Staples. I use one all the time. They are pressurized ink ball point pens, and will write anywhere, anytime.

The Corporate Multi-National Thieves Destroyed Christmas

As the corporate cannibals hover above the Wal-Marts and other such predators with a greed lusting Christmas twinkle in their eyes, cash strapped American shopaholics make their way through cart littered aisles checking the price tags for the cheapest foreign made items assembled by hungry Asian laborers earning 700 times less than the multi-national corporate cannibal sitting in the CEO’s leather-bound swivel, and vibrating executive’s throne.

This is America. This is today’s Christmas as November brought us another round of layoffs, this time numbering 533,000 newly unemployed. The numbers keep climbing. This time we reached a 15 year high, with the steepest slide in 34 years (non-farm payroll unemployment). When factoring in the unemployed, underemployed, and discouraged workers, the real unemployment rate is 13%. This will like reach, at least, 20% this time next year. According to Robert Reich, in order to keep up with population growth, employment needs to increase by 125,000 jobs per month. Not happening!!! Also, he says that the length of the work week for many has dropped to 33.5 hours. That does not help wages. The Department of Labor reported that this cut back of hours was the worst since 1964. November has been the 11th straight monthly decline of lost jobs. 2008 has been the Year of Jobs Losses. Consumer spending is at a 28 year low. This is the new America brought to us by the corporate cannibals and financial predators of our country.

Instead of the American worker cannibalized by the corporate predators making a stand against their diminished retirement fund, evaporating salaries and wages, underwater mortgages, and destabilizing future, and saying they will not submit to wasting their fragile wages on this Wal-Mart-style Christmas, they fill the parking lot lanes with their SUVs and minivans and proceed with their roboticized consumeristic bad habits as they willingly drown themselves even further into more and more debt pleasing the corporate cannibals as they make Wal-Mart the fattest predatory cat in the retail neighborhood.

What will it take for them to raise up the windows, lean out and yell, "I'm mad as hell and I'm not going to take this anymore.” No doubt, a soup kitchen voucher, might not wake up most.

General Motors corporatists continue to pump out SUVs and even roll out their newest versions which only get 16 miles per gallon!! The cannibals have no shame while sitting before Congress with their hands out for cash advances on corporate rebuilds. These predatory CEOs and top tier executives made billions of dollars over the last several years investing in the non-regulated securitized toxic derivative bubble, while their workers got blamed for receiving too much earned income with their supported benefits, as they drove around in their Bentleys motoring off to their 10-20,000 square foot palatial weekend ocean side estates in the Hamptons or a getaway mountain surround-sound 6,000 square foot townhome in the ski haven of Vail. Yet, they were the very people that destroyed their own companies, and now ask for their workers to give them their income checks back in the form of bailouts. Not the workers. Oh, the sweet smell of Reagan's regressive trickle-down economics keeps bubbling up like a virgin field of that delightful crude oil.

These corporate cannibals bask in their corporate trickle-down bailouts, while their displaced, or laid-off workers who now stand in the long lines of their local unemployment office. This is the 2008 Predatory Christmas. So, go out and shop!

In doing so, the Chinese will enjoy a 10% GDP, while the U.S. sees their GDP at 0.5%. Experts say that the real U.S. GDP is in the negative range. It will fall even more as valuable resources go to bailout the financial sector at a cost estimated to fall in the range of $7.7 TRILLION!!!! This does not buy jobs, wages and health care. This does not help the Wal-Mart shopper who is presently handing their wages over to Da' Man down in their corporate Arkansas headquarters, while he writes those checks to China.

So, call up Santa Claus on your cell phone and order up a new multi-function, high deluxe cell phone, and a giant wall-mounted, digital high-resolution T.V, along with a sweet Nintendo Wii. You can rationalize the Wii by telling yourself that this is a family gift. You and your kids will use it as an exercise device to work off those extra pounds.

Go ahead and rack up your credit card debt to new and spectacular heights with head spinning compounding interest rates, while paying down your interest-only mortgage. Step up your joy! Click those heels together. Toto says, Disney World is calling you! Ignore your state-of-mind. What else is there to do? The Chinese own you, your kids and me, as well as the Japanese, and the Taiwanese, and of course, our good friends in the UK. They hold the greatest amount of U.S. debt, which they will want back, with interest, once they decide to cash it in.

So, get ready to sit down to a wholesome Subway Hoagie Holiday Christmas dinner. You DO remember what that Thanksgiving one cost you; don't you? That killed your monthly budget.

Peter Morici, an economist at the University of Maryland, says that recessions are like stock markets, which correct themselves, and after a time, a down market rebounds without government intervention. This is not the case in 2008. He says that a depression is not self-correcting. I am saying that this market is not self-correcting. The rise in the equities market is based upon nothing—no good news. It is rebounding only because President-elect Obama is making statements that bring on the rallies. This does not make any sense. Another reason why this market is rebounding, and we can suspect with confidence that the Fed and the PPT (Plunge Protection Team) do not want to see the DOW below 8000. This would bring on more sell-offs and a jittery Wall-Street. It is a psychological downward benchmark. Bada Bing Bernanke does not want this. The market should really be under 8000 today, but he and the PPT are likely preventing it by intervening in the market through the buying of equity futures.

Some experts are saying that the bottom of the market will see the S & P hit 700 before it finally begins to level out. Today the S & P is at 909.

Rakesh Saxena of Seekingalpha.com, said that there will be a record number of European corporations on the verge of default due to deepening financial problems, and these are non-investment grade corporations. This has been happening in the U.S. for over a year. This crisis is now reverberating worldwide.

This is not only the new America, but what we are experiencing here may also be the new world. Will this be a Subway Hoagie Holiday Christmas dinner for many others around the world? It could easily fit right in the Christmas stocking for easy delivery. Pull out your hoagie and we will all sit down at the table and  join in together. 

Thanks for reading, Jerry