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The largest transfer of wealth from the public to private sector is about to begin. The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac to private investors -- vulture funds. These homes, which are now the property of the U.S. government, the U.S. taxpayer, U.S. citizens collectively, are going to be sold to private investor conglomerates at extraordinarily large discounts to real value. You and I will not be allowed to participate. These investors will come from the private-equity and hedge-fund community, Goldman Sachs and its derivatives, as well as foreign sovereign wealth funds that can bring a billion dollars or more to each transaction. In the process, these investors will instantaneously become the largest improved real estate owners and landlords in the world. The U.S. taxpayer will get pennies on the dollar for these homes and then be allowed to rent them back at market rates.
...Many of us who spent the 90s in Russia became aware over time that the aim of the United States was to create a rump state that would allow economic interests to strip assets at will. The population in this scheme was to be good for consuming foreign goods produced abroad with Russia’s own cheaply sold raw materials. The aim was a castrated state, anarchy, a vast, confused territory of captive consumers, cheap labor and unguarded oil and aluminum.
Some of us who came home after seeing this began to realize that the same process is underway in the United States: the erosion of the tax base, the gradual appropriation of the tools of government by economic interests, a massive, disorganized population useless to everybody except as shoppers. That is their revolution: smashing states everywhere and creating a scattered global nation of villas and tax shelters, as inaccessible as Olympus, forbidding entry even to mighty dictators.
If you have followed the events of the subprime mortgage fiasco from day one until now... You could almost believe that this was just a long scheme coming to a close.
...QE has Keynesianism in its roots. All economists know the solution to unemployment is lower real wages. A central part of Keynes’ theory was the notion of money illusion. Keynes believed that workers would not accept nominal decreases in wages but that they could be fooled via inflation, a belief that only an elitist could have. If the cost of living goes up and wages stay the same, then real wages go down and presumably employment goes up (or down less than it otherwise would).
Inflation, the critical tool in the Keynesian paradigm, has been used regularly. Since the formation of the Federal Reserve, the purchasing power of the dollar has fallen almost 96%....
Could Bernanke Spark a Run on the Dollar?
By Mike WhitneyJanuary 27, 2010
Treasury yields are “blinking red”, but the Fed keeps acting like nothing’s wrong....
The reason we should care is because the yield curve is signaling one of two things; inflation or default. What it is NOT signaling is a robust recovery.Remember, the Fed’s main job is “price stability” which means keeping a lid on inflation....
...granted, QE2 has boosted stock prices, but the extra liquidity has also inflated commodities prices (making it harder on consumers) and wreaked havoc in emerging markets forcing trading partners to control capital flows or raise rates to tamp down inflation. But QE2′s greatest shortcoming is that is really doesn’t create jobs as advertised....
Here’s how the Wall Street journal’s Kelly Evans summed it up:”…the limits of monetary policy are becoming clearer. History suggests any further easing probably would do too much for the stock market and asset prices, and too little for jobs.The only real fix is to lower the cost of U.S. workers relative to foreign rivals and machines, or else raise their bang for the buck. The latter, while clearly preferable, requires education and training that won’t turn things around overnight.” (“The Fed’s Magic Show Appears to Be Over”, Wall Street Journal)
In other words, the Fed is planning to give every working man and woman in the US a big pay-cut so they can go nose-to-nose with foreign labor.
You can see how this blends seamlessly with Obama’s State of the Union Speech where he focused on “competition” as his central theme. More importantly, Obama reiterated his pledge to double exports in the next 5 years. The only way that can be achieved is by destroying the dollar....
...from an op-ed by Judy Shelton that explains what’s going on:
he government will continue to run a large budget deficit, which must be financed by issuing more government debt. The debt is monetized when the Federal Reserve purchases it from the public. The effect is to increase the money supply. Inflationary monetary policy goes hand-in-hand with a falling dollar in foreign-exchange markets.” (“The Wrong Way to Double Exports”, Judy Shelton, Wall Street Journal)So, while working people and pensioners see their savings sliced in half to accommodate the globalist dream of an evenly-depressed world labor market; the investor class will get regular injections of Fed liquidity via QE2 to keep stocks “bubbly” and profits high.
The Value of Money January 3, 2003
...The United States now has the dubious distinction of being the world’s largest debtor nation and needs to attract fully 80% of the world’s free capital just to keep the dollar stable. During the 1990s, this was not a problem as strong financial markets led to increased foreign investment and consequently to further dollar denominated investments.
Foreign ownership of U.S. assets amounted to 33% of U.S. GDP in 1990. Today it is valued at over 70% of U.S. GDP. Foreigners own $2 trillion (19% of U.S. GDP) more in U.S. assets that the U.S. holds of theirs. Foreign ownership of the U.S. Treasury market is over 30%, over 23% of the corporate bond market, and 13% of the U.S. equity market. (Statistics courtesy of Bridgewater, Dec 13, 2002.)
The fate of the dollar now boils down to a question of confidence. But not the confidence of its own citizens, but of foreigners....
...In 1991 the US. switched from emphasizing Gross National Product (GNP) as the basic measure of total output, to Gross Domestic Product (GDP)... (Clinton AGAIN??? )
...the production of a foreigner in the US is not counted as part of US GNP. GDP is different from GNP in that it measures output produced on US soil... faculty.wcas.northwestern.edu...
U.S. imports have been more than U.S. exports in all but two of the years since 1965, so the U.S. has persistently run trade deficits....Last time we noted how the U.S. economy has become increasingly international in the past half-century. An increasing proportion of what we consume is produced abroad, and foreigners are among the biggest investors in the U.S. stock, bond, and real estate markets.
Because of the growing internationalization of the U.S. economy. TV newscasters sometimes warn that "foreigners are buying up America," and it's partly true...
In 1990, U.S. GDP > GNP by $37 billion-- there were a lot more foreign-owned businesses in U.S. than U.S.-owned businesses in rest of world. (In recent years, by contrast, GNP has been slightly larger than GDP in the U.S.) Foreign direct investment in the U.S. jumped from $54.5 billion in 1979 to over $400 billion in 1989.
...Per-capita GDP is a reasonable measure of a country's standard of living. In fact, "standard of living" and "per capita GDP" have come to be virtually synonymous... www.oswego.edu...
....Both economic and regulatory factors combined to spur the explosion in large takeovers and, in turn, large LBOs. The three regulatory factors were the Reagan administration's relatively laissez-faire policies on antitrust and securities laws, which allowed mergers the government would have challenged in earlier years; the 1982 Supreme Court decision striking down state antitakeover laws (which were resurrected with great effectiveness in the late eighties); and deregulation of many industries, which prompted restructurings and mergers. The main economic factor was the development of the original-issue high-yield debt instrument. The so-called "junk bond" innovation, pioneered by Michael Milken of Drexel Burnham, provided many hostile bidders and LBO firms with the enormous amounts of capital needed to finance multi-billion-dollar deals.... www.econlib.org...
Today's global food crisis shows "we all blew it, including me when I was president," by treating food crops as commodities instead of as a vital right of the world's poor, Bill Clinton told a U.N. gathering on Thursday. UNITED NATIONS, Oct. 23, 2008
President Bill Clinton, now the UN Special Envoy to Haiti, publicly apologized last month for forcing Haiti to drop tariffs on imported, subsidized US rice during his time in office. The policy wiped out Haitian rice farming and seriously damaged Haiti’s ability to be self-sufficient. www.democracynow.org...
So Where Do Anti-Hoarding Laws Come In?
These ideas of anti-hoarding legislation may have stemmed from two areas of confusion:
First is from Executive Orders in place dating back to 1939 which Clinton has grouped together under one order, EO #12919 released on June 6, 1994. The following EOs all fall under EO#12919:
10995--Federal seizure of all communications media in the US;
10997--Federal seizure of all electric power, fuels, minerals, public and private;
10998--Federal seizure of all food supplies and resources, public and private and all farms and equipment;
10999--Federal seizure of all means of transportation, including cars, trucks, or vehicles of any kind and total control over all highways, seaports and water ways;
11000--Federal seizure of American people for work forces under federal supervision, including the splitting up of families if the government so desires;
11001--Federal seizure of all health, education and welfare facilities, both public and private;
11002--Empowers the Postmaster General to register every single person in the US
11003--Federal seizure of all airports and aircraft;
11004--Federal seizure of all housing and finances and authority to establish forced relocation. Authority to designate areas to be abandoned as "unsafe," establish new locations for populations, relocate communities, build new housing with public funds;
11005--Seizure of all railroads, inland waterways and storage facilities, both public and private;
11051--Provides FEMA complete authorization to put above orders into effect in times of increased international tension of economic or financial crisis (FEMA will be in control incase of "National Emergency").
These EOs are not aimed at anti-hoarding but rather at seizure or confiscation of items... www.millennium-ark.net...
Even though many homeowners are put into trial Making Home Affordable Programs, thousands of homeowners complain that a few months after making reduced monthly mortgage payments their banks avoid permanent loan modifications. By now, it's no secret that home loan servicers are making money on foreclosures rather than approving home loan modifications. www.suite101.com...
“To ensure that the mortgage servicer pushes default instead of workout, the servicer is paid double (50 basis points versus 25 basis points) by the MBS to service a loan in default. Why do you think your servicer tells you that you must be in default before it will consider a mortgage modification, a practice known as invited default?
“Simply put,” says Parker, “the government bailout of AIG has actually encouraged foreclosures because the taxpayers continue to fill AIG’s coffers with enough cash to pay out insurance on defaulted home loans.”
...CDS premium revenue is not restricted to those who might have actual losses or real assets to protect. You can bet as much as you want and create as many CDS as you want....
The economic disparity between industrial farms and those that retain locally owned and controlled farms may be due in part, to the degree in which money stays in the community. Locally owned and controlled farms tend to buy their supplies and services locally, thus supporting a variety of local businesses. This phenomenon is known as the economic “multiplier” effect, estimated at approximately seven dollars per dollar earned by the locally owned farm. PEW REPORT
...Ignorance about the law’s broad reach (and how it will be construed by the courts) has thwarted opposition to the bill, which will likely pass Congress. For example, a newspaper claims the bill “doesn’t regulate home gardens.” The newspaper probably assumed that was true because the bill, like most federal laws, only purports to reach activities that affect “interstate commerce.” To an uninformed layperson or journalist, that “sounds as if it might not reach local and mom-and-pop operators at all.” ...
But lawyers familiar with our capricious legal system know better. The Supreme Court ruled in Wickard v. Filburn (1942) that even home gardens (in that case, a farmer’s growing wheat for his own consumption) are subject to federal laws that regulate interstate commerce. Economists and scholars have criticized this decision, but it continues to be cited and followed in Supreme Court rulings, such as those applying federal anti-drug laws to consumption of even home-grown medical marijuana. Indeed, many court decisions allow Congress to define as “interstate commerce” even non-commercial conduct that doesn’t cross state lines.
... As a lawyer, I am skeptical of this claim. (I co-represented the prevailing defendant in the last successful constitutional challenge to federal regulation under the interstate commerce clause, United States v. Morrison (2000) — one of only two cases since the 1930s where the Supreme Court limited, rather than rubberstamped, regulation in the name of “interstate commerce”). And it appears that that the proposed law CAN apply to that tomato plant in your backyard (or Michelle Obama’s garden), since Congress’s power under the Commerce Clause is almost unlimited in the eyes of the courts... www.openmarket.org...