Cheney says "No one was smart enough to figure it out", page 4

reply to post by interestedalways

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Ok heres the thing

After the manure hit the Air Movement Device.....
The public found out how these companies were allowed to operate.
Governemts surely must have known what was inevitable, even
I can see that and I'm a Dumb-Ass.

After all, it is the government that makes the rules by which
everybody follows, is it not.

reply to post by interestedalways

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Not to defend Cheney, but this sounds like a quote out of context, perhaps: nobody was smart enough to figure out how to fix the economy.

Originally posted by Lazyninja
reply to post by interestedalways

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Not to defend Cheney, but this sounds like a quote out of context, perhaps: nobody was smart enough to figure out how to fix the economy.

We have oversight committees in the House and the Senate who's JOBS are to know and police this stuff. They fired the guy that ran Fannie Mae because he was cooking the books (he's now an Obama economic advisor). Fannie Mae was a huge contibutor to Barney Frank's campaign. Barney Frank ran the committee that should have known it was happening.

Then, Bush comes out with this genius idea to write $700 billion in blank checks with little or no oversight or accountability. Good Lord.

The problem is/was that the money was too good to pass up and they just hoped it would just all work out.

reply to post by Lazyninja

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If you read Cheney's quotes, he says "no one saw it coming", like
it just happened out of the blue. No warning. Big surprise.

reply to post by Alxandro

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Except the numerous amounts of economic experts that did try to warn them about what was about to happen. Not to mention Ron Paul in the congress before he attempted to run for president and even while he was running for president. It doesn't take a genius to see a bubble in the economy. Obviously what happens when you start handing out credit to people who can't afford it......and your telling me you didn't see this coming? Seriously? Oh and don't forget the fact were printing money with absolutely no real way of paying it back putting our government further into debt and making the value of the dollar worth less therefore making costs of everything go up. Any deflation that occurs in the market over a short period of time is not really a deflation but more of a hoax to make it appear as if there is so the people will spend spend spend. Anything to keep the wall street stocks up. Our government has evaded the limitations restrained on them by our U.S. Constitution so many times its absurd and we the people are honestly to blame for putting up with it. I for one can't wait for the day a revolution occurs because I will be on the front lines to take back this country and return it to who it really belongs to, the people.

reply to post by fnIrish

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Actually, I think that there is something more to it. Since this is a conspiracy website, I'll just go ahead and go there.

Washington DC is not really run by the politicians. It's run by bureaucrats. Sure the politicians are the bosses on paper, but they are more or less figureheads. They come and go. The people who do not come and go are the career bureaucrats. They pass the info up to the politicians that they want to hear, and then they pass the real stuff down to their staffs. There have been many books written on this sort of thing.

It's like a big corporation, the CEO does not "run" the company, the people who work for him do. The CEO is a figurehead, he puts a face on the company. Sure he has input into the basic direction of the company, but without his managers carrying out his orders, he can do nothing.

So what does all this have to do with the current situation? Well, the one thing that does controll the bureaucrats is the budget. They can't do anything without money. The budget is limited by politics and revenue. Most of the revenue comes from taxes (corporate and individual).

Let's say that you are a bureaucrat and you would really like to expand the roll of government. You would be limited in what you do by the amount of money in the budget. It is hard to increase the budget by a large amount because of the difficulty in raising taxes. There is a limit to how much money can be generated by taxes of any kind. Econ 101 stuff.

So the Federal Budget is around 2.5 trillion dollars and it would be hard to get much more than that. Still harder to sustain that level of spending for long.

So what if the bureaucrats recognized that the US economy is a much larger source of money? Right now the US GDP is around 14 trillion dollars and something like 40 trillion flows through US banks per year. That is a much larger pool of cash and the potential is virtually unlimited. What if the bureaucrats decided to tap into the economics of the US?

How would that be done? How could you get the politicians to go along with it? How would you sell it to the public?

Well, first of all in order to control the entire US economy, some changes would have to be made to our economic structure. We are (or were) a Capitalist society with a liase-fare economy. Individuals and corporations own the means of production through stock shares.

In order for the government to control the economy, the government would have to take ownership of a large portion of the means of production. This would essentially change the country into a Socialist state. How would that happen?

There would have to be some sort of event, or series of events, that prompted individuals and corporations to dispose of their stock shares.

Something like a large stock market crash (downturn). Something that would cause stocks to become worthless, or too risky to hold onto. This would prompt many people to sell their shares, even at a loss.

A stock market crash by itself would not be enough howerver. To make people and corporations. Something that makes investors very nervous is a large amount of volatility, large swings up and down. An unpredictable stock market is kind of like owning an unpredictable pitbull. People with stocks may hold them during a downturn, but if there is a sudden unexplained jump upwards, many investors will sell on the upside. This rollercoaster ride is exactly what we are seeing in the stockmarket.

Still, that would not be enough to seize control of the economy. What is needed is some economic tsunami that will have people begging for the government to step in. After all who could blame the government for coming to the rescue?

What if there was a banking meltdown, right in the middle of the stock market crash? Almost all of the money supply in the US flows through banks. What if there was a sudden credit crisis and corporations couldn't get loans, while their stocks were crashing? That could cause a panic. Corporations desperate to save money would start laying off workers, selling assets, selling stocks. An entity with money could walk in and buy everything cheap.

This is exactly the scenario that we are seeing. The Federal Reserve Bank, loaned "someone" 2 trillion dollars back in July. They won't disclose who that someone was, but suddenly the US Govt. is awash in cash to the tune of 2 trillion dollars. The 2 trillion dollars serves two purposes, it puts cash in the hands of Washington that they can use to buy, and it dries up the money supply available to banks.

So, this created the "credit crisis" for the banks. If the banks can't get money to loan, then they cannot make loans to the corporations who need it. The corporations can't get money and so they panic, and start laying off people, cutting back, etc. Later the corporations start begging for Washington to help them.

Now in steps Washington with a fist full of Federal Reserve cash. They are able to "bailout" some of the banks, in return for a controlling interest in those banks. So, they go right for the biggest banks, knowing that the banks will use the cash to buy smaller banks, but now Washington conrols the big bank, so they gain control of the smaller banks too.

Next, Washington buys some of the larger investment companies and insurance companies. They get to pick and choose which ones they want, since everyone is hurting and hoping that they get bought. So, with a controlling interest in the major investment organizations in the country, the government gains controll over most major stock holdings.

Then, the corporations who are most vulnerable start asking for a similar buyout, errr, I mean bailout. Yeah, it's a bailout not a buyout, sure sure.

So, the government is only too happy to step in and bailout these major corporations, for a price, a controlling interest in the corporation.

There you have it, almost overnight the US Government gains a controlling interest in the majority of the US Economy and we go from a Capitalist society to a Socialist one.

Then the pols, go on television and say that, "Nobody saw this coming. What could we do? We had to act. Etc. Etc."

The truth is that it was all planned. The dominos were all very carefully lined up. Then when it was ready, all they needed was a little push. The push came, when the government borrowed 2 tril.

reply to post by Alxandro

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Originally posted by Alxandro
Well I'm sure no one is happy about the economic crisis but he may have a point.
Not one economic expert, anywhere, saw this coming.

Peter Schiff saw it coming but only got snickered and laughed at.

reply to post by Alxandro

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I'm no economist but I saw this coming for years. And there were numerous economist who warned--and sometimes screamed--that this was going to happen. It was, in fact, obvious.

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