Financial Crisis As Strategy

Pleiades Mailbag

Here's something from the ever-trusty Pleiades mailbag.

...every major US financial panic since at least the Panic of 1835, the titans of Wall Street—most especially until 1929, the House of JP Morgan—have deliberately triggered bank panics behind the scenes in order to consolidate their grip on US banking. The private banks used the panics to control Washington policy including the exact definition of the private ownership of the new Federal Reserve in 1913, and to consolidate their control over industry such as US Steel, Caterpillar, Westinghouse and the like. They are, in short, old hands at such financial warfare to increase their power.

Now they must do something similar on a global scale to be able to continue to dominate global finance, the heart of the power of the American Century.

That process of using panics to centralize their private power created an extremely powerful, concentration of financial and economic power in a few private hands, the same hands which created the influential US foreign policy think-tank, the New York Council on Foreign Relations in 1919 to guide the ascent of the American Century, as Time founder Henry Luce called it in a pivotal 1941 essay.

It’s becoming increasingly obvious that people like Henry Paulson, who by the way was one of the most aggressive practitioners of the ABS revolution on Wall Street before becoming Treasury Secretary, are operating on motives beyond their over-proportional sense of greed. Paulson’s own background is interesting in that context. Back in the early 1970’s Paulson started his career working for a rather notorious man named John Erlichman, Nixon’s ruthless adviser who created the Plumbers’ Unit during the Watergate era to silence opponents of the President, and was left by Nixon to ‘twist in the wind’ for it in prison.

Paulson seems to have learned from his White House mentor. As co-chairman of Goldman Sachs according to a New York Times account, in 1998 he forced out his co-chairman, Jon Corzine ‘in what amounted to a coup’ according to the Times.

Paulson, and his friends at Citigroup and JP Morgan Chase, had a strategy it is becoming clear, as did the Godfather of Asset Backed Securitization and deregulated banking, former Fed Chairman Alan Greenspan, as I have detailed in my earlier series here, Financial Tsunami, Parts I-V.

Knowing that at a certain juncture the pyramid of trillions of dollars of dubious sub-prime and other high risk home mortgage-based securities would come falling down, they apparently determined to spread the so-called ‘toxic waste’ ABS securities as globally as possible, in order to seduce the big global banks of the world, most especially of the EU, into their honey trap.

So yes, the rest goes on to argue that the current panic is part of a greater design in a strategy designed to help American Financial power grow. It might be true; but it also might be that this whole thing is just another house of cards coming down.

Too Much At A Loss
Here's another link sent in from pleiades about how there weren't enough digits on a clock in NYC.

NEW YORK - In a sign of the times, the National Debt Clock in New York City has run out of digits to record the growing figure.

As a short-term fix, the digital dollar sign on the billboard-style clock near Times Square has been switched to a figure - the "1" in US$10 trillion ($16.5 trillion). It's marking the US federal government's current debt at about US$10.2 trillion.

The Durst Organization says it plans to update the sign next year by adding two digits. That will make it capable of tracking debt up to a quadrillion dollars.

That's a lot of dough.

No More Political Discussions At iCompositions

recently, there was a thaw in the iComp stance on politics, wherein they let a free debate on politics take place on 2 threads in the forum; both of which wen upward of 30+ pages of comments. Unfortunately some of the participants were less than ethical and started to drag the debate down into the gutter. As a result the site has gone back to its original 'no political discussions' dogma.

It's quite unfortunate in that the discussions in good parts were interesting. It's sad that the forum canot be a true forum as long as there are hecklers and wowsers and idiots taking it hostage every few comments.

It's never a good day when freedom of speech is thwarted, but if there are idiots who cannot discern that freedom of speech is not freedom to vilify, then it is eminently understandable. Sometimes it is time to abandon principles and do what's right.