Volatility

April 1, 2010

The Joke’s On…..

 

So I took a break for a few days, and came back today, on April Fools’, to check out a joke newspaper’s headlines for the day. They actually didn’t look all that different from the normal headlines.
 
“Uncle Sam’s Citi exit partly vindicates Bailout” 
 
“Hedge Fund Managers’ Pay Roared Back Last Year”
 
“Risk Is Clear In Drilling; Payoff Isn’t”
 
“Pfizer Chief Says Growth Is Imminent” (I don’t doubt “growth” in extortion is expected; but that’s not what the NYT wants you to read from that.)
 
“Deadlock Is Ending On Labor Board” (Here the blurb contains the punchline: “The National Labor Relations Board will soon have three Democrats and one Republican, and businesses are bracing for a wave of pro-union rulings.”) 
 
But here’s my favorite joke piece, though the headline’s flatly descriptive enough: “Fed Ends Its Purchasing of Mortgage Securities”.
 

The Federal Reserve’s single largest intervention to prop up the American economy, its $1.25 trillion program to buy mortgage-backed securities, came to a long-anticipated end on Wednesday.
The program has been credited with holding mortgage interest rates at near-record lows and slowing the nationwide decline in home prices that threatened to send the economy into an extended slump.

 
In other words, as a key part of history’s greatest robbery, it helped prevent to restoration of economic reality, so that when reality inevitably does impose itself, the result will be experienced by most people as far more disastrous.
 
The government sentenced the people to this fate in order that the banks could steal yet further trillions. It’s part of the official establishment of Bailout Nation, Bailout America.
 
The academic prostitutes are out shilling:
 

Demand for mortgage bonds had been frozen since the federal takeover of Fannie Mae and Freddie Mac, the giant mortgage-finance companies, in September 2008. “We were in a deflationary spiral, causing mortgages to go underwater, more foreclosures and a further decline in housing prices,” said Susan M. Wachter, professor of real estate and finance at the Wharton School of the University of Pennsylvania. “The potential maelstrom of destruction was out there, bringing down not only the housing market but the overall economy. That’s what was stopped.”

She called the Fed’s mortgage purchases “the single most important move to stabilize the economy and to prevent a debacle.”

 
(That’s a joke in itself, that we now have such a thing as a “FIRE sector professor”.  Of course all such quotes have to be read in Orwellian code. “The maelstrom of destruction, currently decimating the jobs of the real economy and sending it into the Second Great Depression, had to be segregated from the housing market in order to enable further FIRE sector looting. That’s what we accomplished. It was the single most important move to temporarily stabilize the financial (as opposed to real) indicators and prevent a debacle for Wall Street. Thus we’ve been trying and so far succeeding in shifting the entire bankster-created debacle from Wall Street onto the people. We’ll now attempt to make the people of America sustain the entire maelstrom of destruction, while the banksters and government criminals abscond with the loot. Hopefully they’ll still need a few whores and take me along.”)
 
The Fed is leading this propaganda offensive:
 

“Financial markets have improved considerably over the last year, and I am hopeful that mortgages will remain highly affordable even after our purchases cease,” Janet L. Yellen, the president of the Federal Reserve Bank of San Francisco, said in a speech on March 23. “Any significant run-up in mortgage rates would create risks for a housing recovery.”

Ms. Yellen is President Obama’s choice to be the next vice chairwoman of the Fed, after Donald L. Kohn retires in June, but she has not been formally nominated.

 
What’s left out of this quote from “Obama’s choice”, i.e. from Obama himself? As with everything else these criminals say, it has zero to do with the real economy, with economic, energy, or resource fundamentals, with anything which has anything at all to do with the lives of actual Americans or of actual people anywhere.
 
That’s because to a sociopath like Obama, and to a gangster like anyone at the fed, real people simply don’t exist other than as a cash cow to be milked and then bloodlet and then skinned and then roasted.
 
The whole MBS conveyor is simply the ongoing main vehicle of the Bailout:
 

A major factor in that recovery was the government’s announcement last December that it would guarantee debts owed by and securities issued by Fannie and Freddie, according to David Crowe, chief economist at the National Association of Home Builders.

While the future of the two mortgage-finance entities remains uncertain, the government backing has been particularly reassuring for foreign investors, including the Chinese and Japanese central banks, that hold securities based on mortgages originated in the United States, Mr. Crowe said.

 
It’s been particularly reassuring for the attempt to prop up the insolvent debt zombie of America as a whole, as well as its insolvent zombie banks.
 
These are the same Fannie and Freddie who keep hemorrhaging taxpayer money, intentionally buying MBS from sleazy lenders at far-above-market rates. This is simple embezzlement, simple theft, and simple money-laundering, being committed by what is simply a criminal government, orchestrator of a criminal system.
 
Bailout America is a de jure kleptocracy. Neither the government, nor the political nor media nor academic class, nor the top-down economy in general, any longer even pretend to have any rationale other than to loot the productive activity of society. Since people still work in order to eat and shelter themselves and raise their children, as well as because they labor under the brainwashing of consumerism, once a gangster parasite has successfully planted itself on the people’s backs, it can suck their blood for as long as the sucking’s good. Only two things can put an end to it: When and if the people fight back to kill the parasite; or once the blood has all been sucked.
 
Meanwhile the parasite may reach the point where it becomes so drunk on the blood of its host, and so incapable of even pretending to generate any value whatsoever, that it goes insane in its psychopathy. No longer content to just extract at a constant rate, it must rend and flay, beat the people, burn the crops, salt the land. We’ve been seeing this saturnalia set in with the rush to resume bankster bonuses, the more brazen and obscene the better (that it’s as open and obnoxious as possible is clearly a value to them), and the health racketeering bill. And right in the middle of it, the massive escalation of the already unsustainable, losing imperial war.
 
Between these there can no longer be any doubt whatsoever about this government and the so-called “two” party system which is really as calcified a one-party system as the decrepit stage of the Soviet Union was. There can be no doubt that this is not just a criminal finance sector and a criminal government but that it has gone insane in its orgy of looting. This is a whole globalized finance economy now dancing its Dance of Death.
 
Nor can there be any doubt about the unspeakable vile MSM, the corruption of the universities, the prostitution of “culture”, or the treason of almost all existing political activist leadership. The end result on the extension of the Bailout to the insurance rackets is the final, irrevocable divide. Kucinich’s treason made it literally unanimous among existing politicians. The same treason was almost unanimous among existing “progressive” groups of almost every stripe and alleged focus. We now know they’re all sellouts, all Astroturfs, all corporatized traitors.
 
The defining abyss which slashes its bloody gouge across every arena of our lives is corporate tyranny vs. freedom and humanity itself. The great virtue of the Bailout and its health racket microcosm is the cosmic lucidity with which it has cleared the air and defined the positions. The clarity through which it has rendered the great fault line.
 
The definition of economic Fascism is a command economy based upon private profits and socialized costs. While there can be debate on when exactly America became this fascist country, there can be no debate whatsoever on the fact that the Bailout enshrined it once and for all. That the Fed has today temporarily ended its trillions in MBS buys (though it ostentatiously reserves the right to resume at any time, and with infinite boundaries), even as Fannie and Freddie continue with their infinite guarantees of this worthless paper, doesn’t change anything at all. On the contrary it simply highlights how, as with every other totalitarian system, the tactics are flexible even as the nefarious goal is always one and the same.
 
So we know what America has become, and we know that all existing leadership has declared for crime, for tyranny, for the great enemies of the people, for treason.
 
Meanwhile, the people…this bent-backed peasant with the bloodsucker on its back….all this peasant need do is shrug to rid itself of this parasite. Is the people’s refusal to do so our own Dance of Death? Are we really no longer citizens, no longer human, but just the husks of “consumers”, and soon no longer even able to pretend any longer at being that?
 
Only we can answer that for ourselves. Our actions shall be our testimony before history, before the universe itself……

11 Comments

  1. A damn good rant!

    RE: “Only two things can put an end to it: When and if the people fight back to kill the parasite; or once the blood has all been sucked.”

    and

    “Are we really no longer citizens, no longer human, but just the husks of ‘consumers’, and soon no longer even able to pretend any longer at being that?”

    That’s the question.

    Our ‘leaders’ would rather not have to bother with citizens. Citizens can be so noisy and disruptive to their smooth operations. Especially if they’re paying attention. So we have gerrymandering and revolving doors and obscure details in legislation favoring the ‘favored’.

    And we have joke political parties standing for nothing other than their own self-preservation (perhaps naturally enough since that’s such a fundamental drive) which are experts at keeping the national discussion irrelevant, ineffectual and well on its way to being completely insane.

    And then finally, we have bread and circuses… for a while… till the wealth accumulated over generations is spent along with the freedom of our children.

    Money (and credit creation) are both necessary technologies for any society of size.

    But these technologies are contributing to the problem. In fact, they are a key part of why the problem exists.

    And both technologies are corrupt and broken.

    Capability ENABLES Responsibility!

    http://culturalengineer.blogspot.com/2008/10/capability-enables-responsibility.html

    Comment by Tom Crowl — April 1, 2010 @ 6:42 am

    • Yup, today the party’s over, and the bread and circuses are being taken away. It’s the twilight of the “middle class”.

      So the task at hand is to either organize its response, or at least figure out how to be out of the way when this elephant with a bullet in its brain runs amok.

      Comment by Russ — April 1, 2010 @ 12:15 pm

  2. Very good, but how could you leave out Turbo Tim’s stellar contribution.

    http://disasterporn.blogspot.com/2010/04/keep-repeating-big-lie-tax-dodger.html

    Comment by Edwardo — April 1, 2010 @ 9:55 am

    • That lie is the most vile of all.

      Although by now I hate it even more coming from “liberals” than from established corporatists like Geithner.

      Comment by Russ — April 1, 2010 @ 12:17 pm

  3. Do you feel better or worse after writing this stuff?

    Is it your sense that our political system used to work differently? If so, when?

    Comment by jake chase — April 1, 2010 @ 10:35 am

    • Sure it used to be different. It was never great, but there used to be more forces at play than systematically organized corporate looting, which is now the one and only system force. And now it gets progressively worse.

      Comment by Russ — April 1, 2010 @ 12:20 pm

      • Let’s see: Vanderbilt, Rockefeller, Morgan, the Federal Reserve System, the Lusitania, war profiteering, Foreign lending, the crash, the Depression, another war, more profiteering, two more wars, the Arab energy conspiracy, another depression nobody seemed to notice, the Latin America debt explosion, a farm crisis and since 1980 complete insanity.

        Every criticism you have levied could be made for the past 150 years, and most of them were. Is this time really so different?

        Comment by jake chase — April 1, 2010 @ 3:13 pm

      • It’s a matter of degree, jc… and you can see this if you look at financial “profits” as a share of corporate profits over the last 80 years.

        Comment by jimmy james — April 1, 2010 @ 6:30 pm

  4. Thanks Jimmy. Organized crime has simply escalated. As others have pointed out, the civil rights movement wasn’t primarily about corporate profits, though that was also part of it.

    But today there could be no such movement to reform the system, since corporatism wasn’t its main point. We saw that with, for example, “health care reform”.

    And then there’s the fundamental difference of Peak Oil. In the earlier period fossil fuel supplies, energy and resource consumption in general, were all in the ascendant. To some extent this natural surplus, this “free gift” according to many of the textbooks, was used to co-opt the people, to build the temporary mass middle class. It would never have existed without cheap oil.

    But today that surplus is gone, and the debt tower can’t be built higher. Now the final liquidation has to commence. Now the stark truth for the people is, “You can run, but you can’t hide.” Teabagging, fascism, are possible forms of running, but which won’t save anybody.

    So I figure now that the people can’t be bought off anymore materially, now that they have to face material facts, there will finally be a tremendous social and political explosion. And now that fascism will try to divert this energy to the ends of the same system criminals, we have to try to instead enlist the surge against the crumbling structure.

    It seems worth trying. As for those who just go around the econoblogs nitpicking everything, I have no idea what they’re trying to do, or what they think it accomplishes.

    Comment by Russ — April 2, 2010 @ 2:34 am

  5. Boundary conditions are evident now as per Russ’ comments on the unsustainable debt tower and the ever growing reality of Peak Oil.

    I think the comment Russ made about what is likely to transpire when people can’t be bought off any more is spot on. One must need to be invested in, literally and figuratively, something in order to support it.

    So, by that logic, I would argue that when, for example, the stock market falters badly, and it will, either literally, or indirectly via an attack on its dollar denominated purchasing power, a critical prop that is acting as a break on moving forward with “change you can believe in” will likely be removed. Freedom’s just another word for nothing left to lose.

    Comment by Edwardo — April 2, 2010 @ 10:48 am

  6. I sure hope you’re right about that, Edwardo.

    Sometimes, like earlier this afternoon, I ponder how sheeplike everyone’s been so far and question whether anything can wake them up.

    But then I think of unlikely tipping points which have sometimes brought on the deluge.

    We won’t know until the Great Game is over.

    Comment by Russ — April 2, 2010 @ 3:24 pm


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