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University of Missouri of Kansas City instructor and former federal
bank regulator during the Keating Five scandal, William K. Black,
the former Director of the Institute of Fraud Prevention, who
authored the book, "The Best Way to Rob a Bank is to Own One,"
was one of Barack Obama's campaign advisers. Moyers heard Black
speak at the John Jay College for Criminal Justice. During his lecture,
Black said the financial "meltdown" we are experiencing—Obama's
"financial crisis"—was driven by fraud. Black was forced into retire-
ment by the Keating-era bankers who purportedly robbed the banks
they owned.

A year ago, William Black told Bill Moyers that the supposed financial crisis was manufactured by the top banking elites of this country through "calculated dishonesty by the people in charge." Black told Moyers that this fraud—the financial crisis that triggered what has become a $3 trillion bailout (almost $72 trillion in payback costs) to the taxpayers when you throw in the interest owed to the Fed bankers...all of whom share in the culpability of this nonexistent crisis that was fabricated by the Fed to generate the funds the princes of industry and barons of banking and business needed to finance the speedy construction of the societal infrastructure of the third world to accommodate the new industries and businesses that require the human capital of the third world as the new consumers of the 21st century since, as consumers, they have nothing and need everything.

There are two reasons why our industries are making a fast exodus from the United States. First, since the New Deal years when the White House climbed in bed with the social progressive labor unions, all of the labor laws enacted are heavily biased in favor the unions, beginning with the Fair Labor Standards Act of 1938 (Public Law 75-718) which was actually written by Sen. Hugo Black [D-AL] at the behest of John L. Lewis, President of the communist Congress of Industrial Organizations [CIO] in Dec., 1932, six years before it passed. Black, appointed to the high court by FDR in 1937, should have recused himself from vigorously defended the bill when it was challenged in the US Supreme Court.

Social progressive presidents have never had any trouble enacting laws that give socialist unions an edge over those they want to unionize—even when those the unions want to unionize are the employees of the federal government. If you remember, when the labor unions tried to unionize the nation's air traffic controllers, President Ronald Reagan fired every air traffic controller that went out on strike. President Bill Clinton opened the front door the White House and invited big labor to come in and sign up every federal employee. Barack Obama, the illegal in the White House and his anchor wife went a step further, and when Chrysler and General Motors filed bankruptcy, Obama petitioned the federal courts to strip hundreds of thousands of auto industry retirees and nearly-retired employees of benefits due them and force them back into a non-existent job market, then gave the United Auto Workers 65% of the stock of Chrysler and 17.5% of the stock of General Motors. How much union representation do you think the auto workers at Chrysler and GM have now when they are trying to bargain for benefits from the union that is theoretically bargaining on their behalf?

From 1938 until today, using binding arbitration, unions win every dispute with business. Which means, of course, that even if the hourly wage in, say, socialist Poland was precisely the same as in the United States, it would still cost twice as much to make a widget in Wisconsin as it would in Warsaw due to the fringe benefits businesses are required by law to provide to their employees in the United States. Second, factories in the United States pay their workers for 100% capacity, but their work force labors at 68% capacity only because the United States is a replacement market. Everyone has everything they need, and thus, need nothing unless what they possess breaks or becomes obsolete. Since creating more goods than you can sell causes the price of all the goods to drop, industry creates only what they can sell.

Because of the intense cost to manufacture goods in the United States, goods made here cannot compete with the prices or the quality of goods made in third world nations. In other words, because the US is a replacement market, obsolescence is built into the products made here—including what can best be called the "breakdown factor." Have you ever noticed that one or two payments before you car loan is paid off, you have to replace the car, the TV, or the household appliance?

American manufacturers design consumer goods with a short life. To make their factories work at full capacity (what the princes of industry are actually paying for), they need to find enough consumers to buy the 32% of the consumer goods they are not making because there are no customers for them—in the United States. What that means if they are going to sell at 100% of plant capacity, they have to move their factories from this country to the countries where tomorrow's consumers live. And second, they need to create an economic infrastructure where the human capital that has nothing and needs everything lives can buy those goods. And that takes money. Trillions of dollars that the princes of industry and the barons or banking and business don't have. Where do they get it? They tax the working class in the industrial nations and let them finance their own economic demise.

The banking community, who has been planning this move since the late 1980s to early 1990s, needed a scheme that would allow them to make exorbitant profits quickly. This was done, according to Black, by large financial institutions making really bad, high interest loans simply because [a] they got laws enacted that not only allowed it, but actually mandated it, and [b] because bad loans, due to much higher rates of interest, are more profitable. To make it work, the nation's largest banks used their hedge funds to create a money market for really bad, high interest loans. They called them subprime mortgages. Then you get Congress to enact another law that allows Fannie Mae to guarantee the loans so the bankers can't lose. Once the loans are guaranteed, investors are easily convinced the loans are credit worthy, and because they are guaranteed by HUD, they are the safest investment in town since when the subprime borrowers lose their homes, Fannie Mae will pay off the mortgage. The investor wins and the subprime home owner moves back in with their in-laws.

As the housing bubble ballooned, the banks used the inflated values of homes to create illusory money which they leverage to borrow from the Fed. What that did was create record profits for banks and hedge funds. It was the Roaring 20s all over again, but Humpty Dumpty was about to fall off the wall. But, for the moment, the good times were back.

Especially on Wall Street and the offshore hedge funds of the transnational investment bankers. We saw a brief glimpse of it when the stimulus bailout began and the nation's largest investment banks (who were financing the banks in the third world) used the stimulus dollars loaned—sometimes at the point of a political gun—to them by Obama to pay multi-million dollar bonuses to hedge fund salesmen who used short selling to drain the IRAs and 401Ks of every working class stiff in the United States whose sweat equity was placed in retirement accounts to guarantee that when they could no longer work they would have enough money to life comfortably for the rest of their lives.

During the second term of President George W. Bush, the Fed pressured Bush Securities & Exchange Chairman William H. Donaldson. Donaldson was a shill for Wall Street excess. He rescinded the Uptick Rule, and is believed to have also been the author of the "mark-to-market" rule imposed on all commercial banks to manipulate the value of the banks' assets and create the smoke and mirror financial crisis that gave Congress the cover they needed to enact a $3 trillion bailout and force the working class to repay it when it was the investment bankers who needed the money to complete the transfer of wealth from the United States to the third world.

George W. Bush, who actually believed the lying bankers who convinced him there actually was a financial crisis in the United States due entirely to greedy mortgage brokers who sold subprime mortgages to people who should never have been given a mortgage loan. Two pieces of legislation were enacted by Bush to prevent the economy from collapsing. First was the Economic Stimulus Bill of 2008 which Bush signed into law on Feb. 13, 2008. The purpose of this legislation was to put money into the consumer market to spur economic growth. On Oct. 3, 2008 Bush signed the Emergency Economic Stabilization Act of 2008. The purpose of this bill, theoretically, was for the government to purchase $739 billion in defaulted subprime mortgages and surrender them to the Resolution Trust Co., in order to keep the credit market from collapsing. The legislation was passed, but instead of buying the defaulted subprime mortgages and protecting the credit market, Treasury Secretary Henry Paulson used the money for phase one of the auto industry bailout. The reason?

The bankers went through too much trouble to create a financial crisis severe enough to force Congress to give them the money they needed to solve their own financial crisis. On Jan. 7, 2008 when the Democrats achieved their super majority in both Houses, Obama's super financial crisis became a reality. The gang rape of the taxpayers of the United States began in earnest as the banks stole both their retirement nest egg savings and the future earnings not only of the working class, but their children, grandchildren and great-grandchildren for the next five to eight decades.

 

 

Just Say No
Copyright 2009 Jon Christian Ryter.
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