How the financial crisis was engineered and who engineered it

reply to post by scwizard



star nd flag
glad someone has started a thread concentrating on the parties involved that set the stage for this take down of the markets

greedy traders were pawns
the people were the marks
and the system had con men at the top this is not an accident

it is a criminal conspiracy designed to con you off money

using two things TRUST AND REPUTATION

My own opinion, is that this whole mess started before 2000; when America stopped being the worlds biggest lender nation and sunk into one of the world's largest debtor nation. Some say it started with Nixon and going off of the gold standard. I am more of the opinion that we hold the world to the dollar by exporting the manufacturing base to foreign countries and then creating the market for the goods.

In the 70's the Dow had remained at 1,000 for over 30 years.

In the eighties, more Hondas starting being built over here than in Japan, because of the growing Yen; and, it was now cheaper for them to manufacture over here. We started accumulating huge deficits with Japan before China. Everyone says that Clinton balanced the budget, but all he did was not spend more than they said they would , leaving trade deficits in tact. Reagon was the one with trickle down and an expanding money supply. The Dow hit 10,000 as we made the transition to a paper economy.

The other trend was in selling t-bills to foreign investors. This created a snowball in which they had to keep selling t-bills and raking in money from foreign sources. There were many in the nineties that saw this coming including Douglas Casey, who wrote, "Crisis Investing in the Nineties."

Essentially, this created a snowball effect. They had to keep the ball rolling which resulted in a boom-bust economy. The crash of 87 was the first. There had been a boom in tangible items due to the inflation in Carter's era. People could buy real estate construction contracts for lets say $5,000 on a $100,000 condo; and, then when the project t was completed, they could sell the contract for twenty thousand due to inflation. After the inflationary period, interest rates dropped precipitously, keeping the boom going. The S&L fiasco ensued, which was blamed on the appraisers. Reagon changed the tax benefits of owning commercial properties and now they cost money to operate. You started seeing things in the early nineties like the Centrust Building in Miami sell for 52,000,000, when it costs 150,000,000 to build.

Next came the dot com boom. The money had to go somewhere. This was a crazy boom where insane profits were raked in on virtual businesses with no equity. You had to be connected to get in on a lot of that venture capital.

As the dot com wisked away, the new frontier was real estate again. Easy money is going to create a boom; and create artificial prices. Add on top of that bad credit loans and the values started to soar. Money was everywhere for what seemed like insanity in some areas of the country. Experienced mortgage people knew exactly what would happen, as there were a fair amount of foreclosures in the "good times"

Now, the snowball has nowhere to go, and the Chines are not buying any more bonds. They have started up the printing presses ands reality is hitting home.

edit to remove what turned out to be a resume--not anyone here's business.


[edit on 1-5-2010 by ogbert]

So where do we go from here? How does this tie in with the IMF and what is happening in Europe?
I normally try to follow this general topic, but have not had time lately, like the last half year, to follow the details.

M

Originally posted by ogbert
Everyone says that Clinton balanced the budget, but all he did was not spend more than they said they would , leaving trade deficits in tact. Reagon was the one with trickle down and an expanding money supply. The Dow hit 10,000 as we made the transition to a paper economy.

Its a well known fact that republicans increase the defecit 2-3 times more than democrats. Its also well known that republicans spend most of "their" budget on the military-industrial complex whereas the democrats spend it on social reform.

Both parties are a con-job but at least the democrats spend much less AND SPEND IT WHERE IT COUNTS! As for ex-president reagan he is well known for two things: 1)spending billions on star-wars program 2)deregulation.

Originally posted by ogbert
Now, the snowball has nowhere to go, and the Chines are not buying any more bonds. They have started up the printing presses ands reality is hitting home.

edit to remove what turned out to be a resume--not anyone here's business.

Why do countries need to borrow funds in the first place? This is something nobody seems able to answer me directly and cohesively, at least not to my satisfaction.

It would seem that if the USA treasury could issue money DIRECTLY rather than issue treasury bonds, the USA government would be able to control the money supply without the UNCONSTITUTIONAL Federal Reserve getting involved. You do know that the FED is a religious, "non-profit" and "semi-private" central banking corporation registered in the state of Delaware???

Originally posted by morefiber

So where do we go from here? How does this tie in with the IMF and what is happening in Europe?
I normally try to follow this general topic, but have not had time lately, like the last half year, to follow the details.

M

set up a peoples bank called hiway infrastructure. treasury bonds are made up in the name of the new bank (the people are the callateral of all treasury bonds) and give them to the new bank instead of the old ones
and the new bank can create money out of thin air and loan it out to the people at a very small interest rate

as the money is paid back the interest is ontop of the treasury bonds

when enough interest is acumulated deliver the treasury bonds back and loan out the interest money you collected untill you have enough money to back a new highway infrastructure project

instead of paying interest to forign banks on the treasury bonds created from you as colateral

you loan yourself money at lower rates and the interest pays for a better city without forign debt

XPLodER

Originally posted by morefiber

So where do we go from here? How does this tie in with the IMF and what is happening in Europe?
I normally try to follow this general topic, but have not had time lately, like the last half year, to follow the details.

M

Let me explain!

Besides the FED and ECB shareholders robbing people of their hard earned income, multi-national corporations have been allowed to export jobs and capital to developing countries so they can maximise THEIR profits with ultra-cheap labor.

That means people living in developed countries have FEWER jobs to seek in this shrinking economy, which correlates to employers cutting wages and laying off excess personel, in the hope they will survive the crisis.

Its a boomerang effect. People making less will spend less thus perpetuating the downward spiral. In the meantime all these under-developed countries will soon rise and challenge the status-quo of the EU-American hegemony, THUS ENABLING the NWO to take effect! A one world government and currency cannot be established unless all the countries are more-or-less equally poor.

It's Grown up Monopoly.

'Bout it. Nothing more. What shines the eye may be tarnished.

It's only money, and for all I know, you won the Mint in your Basement.

Originally posted by scwizard
The main stream media has pointed fingers every which way at a great number of people, however there are three men who have somehow managed to stay out of the eye of the main stream media, despite undertaking actions that lead directly to the financial crises. These three men in no particular order are:
*Harold McGraw III

Checking out his page I noticed he's the chairman of the "Business Roundtable". According to wiki:

On the Business Round table
McGraw was chairman of the group's International Trade & Investment Task Force from October 2003 through 2006. In that post, he led the task force's efforts to work with CEO groups in other countries and to support free trade agreements.

The group makes up more than a third of the total value of the U.S. stock market, 60 percent of total corporate philanthropic donations in the country and almost half of all private research and development funding in the U.S.

The group was formed in 1972 through the merger of three existing organizations: the March Group, consisting of chief executive officers who met informally to consider public policy issues; the Construction Users Anti-Inflation Roundtable, a group devoted to containing construction costs; and the Labor Law Study Committee, largely made up of labor relations executives of major companies.[5]

It "strongly supported passage of the" No Child Left Behind Act of 2002, "and is now actively working with states on implementation." It has issued press releases, submitted editorials, given congressional testimony and distributed position ads.[6]

The Business Roundtable is mentioned by G. William Domhoff in Who Rules America? Domhoff argues that the Business Roundtable supports the network of corporate control and influence over the economy, politics, and media. en.wikipedia.org...

It just so happens... that I thought I had that book but instead it's "Who's Running the Nation?", by Kathlyn Gay. Her book is focused on the corporatist interests behind the scenes, but it doesn't mention the Roundtable.

In any case, some prominent members of the roundtable include:

American Express Company
Ameriprise Financial
AT&T Inc.
Bank of America
Bechtel Group, Inc.
Boeing Company, The
Chevron Corporation
Citigroup, Inc.
Dow Chemical Company, The
DuPont
Exxon Mobil Corporation
General Electric Company
General Motors Company
Goldman Sachs Group, The
IBM Corporation
JPMorgan Chase & Co.
MassMutual Financial Group
MasterCard Incorporated
McGraw-Hill Companies, The
Microsoft Corporation
Morgan Stanley
Merck & Co.
Nasdaq Stock Market, The
Pfizer Inc.
Shell Oil Company
Wal-Mart Stores, Inc.
www.businessroundtable.org...

Surprisingly, no McDonald's. But yeah, this McGraw guy knows all the right people.

I found a page has lots of details about the BR, and heavily cites the "Who Rules America?" book. The page lists its founding members as:

Lloyd C. Blankfein, Goldman Sachs
——-James Dimon, JPMorgan Chase & Co.
——-James P. Gorman, Morgan Stanley
——-Vikram S. Pandit, Citigroup, Inc.
——-Brian T. Moynihan, Bank of America
——-Brendan McDonagh, HSBC
——-Robert W. Selander, MasterCard Incorporated
——-Kenneth I. Chenault, American Express Company
——-Rupert Murdoch, News Corporation
——-Glenn A. Britt, Time Warner Cable Inc.
——-Philippe Dauman, Viacom, Inc.
——-Jeffrey R. Immelt, General Electric Company
——-Brian L. Roberts, Comcast Corporation
——-Steven A. Ballmer, Microsoft Corporation
——-John T. Chambers, Cisco Systems, Inc.
——-Randall L. Stephenson, AT&T Inc.
——-Ivan G. Seidenberg, Verizon Communications
——-David G. DeWalt, McAfee, Inc.
——-Steven R. Loranger, ITT Corporation
——-Paul T. Hanrahan, AES Corporation, The
——-Riley P. Bechtel, Bechtel Group, Inc.
——-W. James McNerney , Boeing Company, The
——-Rex W. Tillerson, Exxon Mobil Corporation
——-Marvin E. Odum, Shell Oil Company
——-John S. Watson, Chevron Corporation
——-James J. Mulva, ConocoPhillips
——-John B. Hess, Hess Corporation
——-James E. Rogers Duke Energy Corporation
——-J. Larry Nichols, Devon Energy Corporation
——-Ronald A. Williams, Aetna Inc.
——-David Cordani, CIGNA
——-Jeffrey B. Kindler , Pfizer Inc.
——-Angela F. Braly, WellPoint, Inc.
——-John C. Lechleiter, Eli Lilly and Company
——-Edward B. Rust, Jr., State Farm
——-Andrew N. Liveris, Dow Chemical
——-James W. Owens, Caterpillar Inc.
——-Ellen J. Kullman, DuPont
——-Edward E. Whitacre Jr., General Motors Company
——-Michael T. Duke, Wal-Mart Stores, Inc.
ampedstatus.com...

This paragraph has all the juice (see site for all the embedded links):

Also being addressed in Obama’s upcoming meeting with the Roundtable are issues concerning financial reform. Almost every aspect of financial reform has been D.O.A. thanks to Roundtable lobbyists representing the interests of Goldman Sachs, JP Morgan, Morgan Stanley, Citigroup, Bank of America, HSBC, Master Card and American Express. They even pushed to make sure Ben Bernanke was reconfirmed as the head of the Federal Reserve and they have also guided Obama into focusing on deficit reduction, now that their member companies are healthy again and making record profits after receiving trillions in government subsidies. The Roundtable played a pivotal role in the appointment of Hank Paulson, formerly the CEO of Roundtable member Goldman Sachs, who replaced Roundtable member John Snow as US Treasury Secretary. The Roundtable also strongly lobbied on behalf of current Treasury Secretary Tim Geithner and White House National Economic Council Director Larry Summers. Although there has been recent talk of Geithner being replaced at the Treasury, the lead choice to replace him is Jamie Dimon, Roundtable member and CEO of JP Morgan Chase.

[edit on 1-5-2010 by IgnoranceIsntBlisss]

reply to post by XPLodER


When any government has to issue treasury bonds, that tells me that the government has NO CONTROL of issuing money. This is really a no-brainer and I am suprised many people don't get it.

Perhaps after decades of con-job propaganda by instituitions of "higher learning" and mainstream media, people have developed a mental block and cannot see the light of day. If they keep telling you its night outside when its actually day-time, then people will eventually believe it.

Now take into consideration the FED has been in existance since 1913 and ......well..........you get the picture? Not good!

reply to post by Someone336
This thread won't any more replies than the arizona illegal immigration issue because the above topic is more understandable than financial matters that are beyond the normal human scope or understanding or trust. How else would 4-6 billion people be able to become indebted to their masters?

Great topic!

In looking at the financial crisis, we should also look at other factors which played a role. The creation of the Community Reinvestment Act encouraged subprime lending. Credit default swaps grew from $1 trillion to $58 trillion after a the decision not to regulate CDO's in 1999. Freddie Mae allowed the means for banks to easily move assets off their balance sheets, freeing up capital to make more loans. Banks pushed consumers into ARMs even when they should have qualified for fixed rate loans. Banks also were the ones pushing Standard and Poors to give MBOs "AAA" ratings, simply because it was the banks who were paying for the service. Not to mention consumers who took loans they knew they could not repay, and the Investors who trusted the credit agencies without doing their own due dilligence.

I agree that the SEC's relaxing of its net capital rule contributed, but this would've never happened were it not for the EU's acceptance of the Financial Conglomerates Directive.

There were numerous factors which lead to the housing bubble and crisis,
but as the OP referenced the largest blame lays with the Fed for keeping rates low for so long.

Originally posted by scwizard
However this is only a piece of the puzzle. Several questions remained unresolved, such as ... why this crisis was engineered (?)

Answering that question happens to be my forte:

To prevent everybody from gaining access to Life Extension technologies.

"We'll become gods..if you don't like it we'll have warfare"
The Global Meltdown is really about keeping you from becoming a "GOD".
*Neocommunism to prevent the masses from affording Life Extension technologies.

Originally posted by scwizard
However this is only a piece of the puzzle.

Originally posted by scwizard
Alan Greenspan (a harmless academic in my opinion).

Harmless? How can anyone running the Federal Reserve be harmless? The Federal Reserve is at the heart of this entire issue and most of the other woes ofour society and even the world for that matter.

[edit on 1-5-2010 by IgnoranceIsntBlisss]

The financial crisis, it's so much like the story in the wizard of oz. You follow the yellow/gold brick road to the emerald city with those that think they are lacking something, we are off to see the wizard the great and wonderful wizard in the emerald city of oz, once you kill the wicked witch of the west and her army of suits that sing 'oh we owe' they must be in depth to the witch or something. Anyways once you get to the city you find out it's nothing but smoke and mirrors. Then you wish you were home, after all theres no place like home.

Financial crisis is easy to understand, like the stock market crash, greed dressed in facy suits that went to fancy universities giving fancy promises that are only 'smoke and mirrors'. The figurative similarities from that story are pretty weird.

reply to post by XPLodER


XPlodER,

I hear what you are saying, unfortunately I don't hear too many important people, outside a few, that have the balls to even approach this subject. I guess some people have everything to loose and nothing to gain.

Someone mentioned the FED as a religious organization. This is the first time I have heard this angle, sounds interesting.

Does anyone have a tie-in or just relevant info to what is happening in Europe recently?

M

Government should be second to god! The minute corporations or powerful people start influencing it by any means(especially money), it automatically becomes corrupted in that it serves those special interests versus the overall good.

The FED issues money and the US Treasury prints it FOR the FED, therefore: 1) the FED controls money 2)the FED can bribe politicians 3)the FED can cause inflation/deflation/stagnation 3)the FED is second to god and government becomes irrellevant.

The USA government collects money by: 1)putting taxes on people and corporations 2)issues treasury bonds, aka loans. 3)borrow directly from the FED which is rare.

If the USA government ISSUED money ITSELF, people would NOT HAVE to pay any taxes because the government can issue and print all it needs and/or wants.

We NEED communism at the top and capitalism at the bottom, collectively known as socialism. Its the middle ground between ultra-right and ultra-left politics, aka centrism!

The problem with america and to a lesser extent with europe, is that we have grown so accustomed to fascism we think skewing to the left equates to communism. Absolute BS!!!

reply to post by IgnoranceIsntBlisss


Ignorance,

I think it is simply just a strong desire to "hold on to what we earned" by some people and the old how to boil a frog analogy. It would not be the first time that minor motivations and superstitions by a powerful few reeks havoc for the majority of others.

M

why is it that everytime there is a financial crisis or some sort of economic meltdown there is at least one jew involved one way or another. i think it is time that we start to question the phrase "jews are good with money."

Originally posted by EarthCitizen07

Originally posted by ogbert


Why do countries need to borrow funds in the first place? This is something nobody seems able to answer me directly and cohesively, at least not to my satisfaction.

It would seem that if the USA treasury could issue money DIRECTLY rather than issue treasury bonds, the USA government would be able to control the money supply without the UNCONSTITUTIONAL Federal Reserve getting involved. You do know that the FED is a religious, "non-profit" and "semi-private" central bank.

There are many reasons that I can see for justifying one nation borrowing from another. One is that a certain amount of international trade is healthy for the economies of all nations, and if you have trade between nations, it becomes advantageous at times to borrow or lend from one another. The thing is;

It needs to be something that is balanced between nations over time.

The second is that the domestic economies of any nation should not be sacrificed at the alter of international trade, rather they should be protected in certain ways that the people of each nation feel is important. Certain things maybe should not be traded internationally so much, and instead be produced more locally. How much of the overall economy goes to international trade and how much to domestic production and consumption will vary based on each country.

The last thing that really bugs me is that we need to STOP TRADING EACH OTHER CRAP.

This is what really bothers me, and makes me feel guilty about how I have lived my life, is that we have gone broke by basically buying TONS of CHEAP CRAP from the Chinese, and they know it, and know we knew it.
International trade should be where nations come together to trade things of value, that will go to enriching and improving the lives of each other, and not just the cheapest crap that can be sold.
But I am being idealistic, and to be honest, the thing about trade is that one mans crap is another's gold. So with that spirit, and some tongue in cheek, here are some things that I feel we can come together, and all agree we should pawn off to pay for some of the trillions, we have and will borrow from other nations;

Taiwan and the rest of our remaining little bits of empire in Asia.
The Lohans and most of the cast of shows like The Hills, Girls Next Door, Celeb.
Apprentice, Survivor, etc., etc.,
50% of our prison population to be used as manual labor, or as whatever part of
the body labor the new owners see fit.

Please feel more than welcome to add the the list of things we as Americuns can get rids of.

M

(bbcode)

[edit on Sun May 2 2010 by Jbird]

reply to post by IgnoranceIsntBlisss

Yeah I mention that he's the chairman of the business roundtable in the OP, but I don't go into detail about what the business roundtable is.

That's some good info there. Kind of scary to hear that he is going to have a major say in the financial reform bill :O In light of this, if the bill passes I'm going to go over it with a fine tooth comb.

reply to post by scwizard


@scwizard

Do not forgot the now surreal pile of global derivatives set to unspool
to the unrealistic sum of $1,500 Trillion.

Global Derivatives fiasco yet to unspool

If you find yourself thinking that there is not that much money in the
world, you'd be right...

The mother of all hyperinflation scenarios is being 3 card monty'd
right in front of everyone on the OTC market because it has ZERO
SEC regulation.

It the same old game, with a new loophole.

Back when it was just 1,000 Trillion some one wrote how it was done.

Quadrillion dollar powder keg set to blow

And when it it goes poof you better have be ready to bug out
because the cities will turn into chaos when the trucks stop delivering
anything to anywhere because the currency is worthless.

Franky I am amazed they did not use it to crash the whole system back
in October of 2008, but it appears they are saving this crisis to
use for something else.

Good Luck to you all !