An Honest Answer
Do you ever wonder why only the big boys get bailed out and not ordinary people like you and I? Do you ever wonder why you and I pay for the mistakes of Wall St. and the Wall St. bankers?
I’ll give you the honest answer Washington DC, Tim Geithner and Ben Bernanke won’t. Wall St. and the Wall St. Banks own the Federal Reserve System, period. It is their personal bank where they get as much money as they need to stay afloat and rob us of our wealth. This ponzi scheme is on the verge of a systemic crash, just ask big bad Ben Bernanke, the Federal Reserve Chairman. They have done so much damage to our system yet they have more control then ever. How does this work?
At the pace they are going, they will destroy capitalism, democracy and the dollar’s global reserve currency status. The Fed, for all intense and purposes is dying, on life support. It’s ability to bring life back into the economy is almost non-existent yet they will continue to try and reflate our way out of this mess.
I think it is time we have a new economy and Federal Reserve that is not ruled by Wall St. and the Wall St. Banks.
Those You Can Trust….
Here are a few of the public figures you can trust, the one’s who called for major troubles to develop between the years 2000-2008: economists Gary Shilling, Marc Faber and Nouriel Roubini, the St. Louis Fed president (Greenspan ignored him, just as Bernanke is ignoring the Kansas City Fed president (Thomas Hoenig) today, former Nixon Commerce Secretary and SEC chairman, billionaires Warren Buffett and oilman Richard Rainwater, institutional portfolio managers Jeremy Grantham, Bill Gross and Robert Rodriguez.
And Those You Cannot Trust
We certainly know we cannot trust Washington or Wall St. because they are only looking after themselves.
Here is a list of those who lied to us before the big collapse of the financial system in 2008-2009.
Hank Paulson: In July 2007 before the meltdown he bragged to Fortune that this is “the strongest global economy I’ve seen in my business lifetime.”
Paulson knew what was coming. Remember, he was a Washington Insider.
Ben Bernanke: “I don’t anticipate any serious failures among large internationally active banks.”
Really? And to think we believed him. I believe no one these days!
Billionaire Ken Fisher: “This year will end in the plus column ... so keep buying.”
Main Street got destroyed and lost trillions of dollars on advice like this; however, I am sure Fisher made plenty of money knowing what was coming.
‘Mad Money’ Jim Cramer: “Bye-bye bear market, say hello to the bull.”
We all know Cramer don’t we? Another one who talks his book. Mr. Reliable, what a joke.
Goldman Sachs’ Abby Joseph Cohen: “The fear priced into stocks is likely to abate as recession fears fade.” Soon after these comments, Goldman was essentially bankrupt.
And we are to believe these big institutions still? They make the mistakes and the Feb comes to their rescue.
Congressman Barney Frank: “Freddie Mac and Fannie Mae are fundamentally sound.”
Sure Barney and I bet you think they still are.
Barron’s: “Home prices about to bottom.” Three years later they still haven’t.
Good old Barron’s they sure were spot on.
Worth: “Emerging markets are the global investors’ safe haven.”
There was and is no safe haven when markets are intertwined.
Kiplinger’s: “Stock investors should beat the rush to the banks.” Costly advice.
Who are these people?
Most people get it wrong almost all the time. They lie, exaggerate and speak half truths while knowing major problems exist.
At the end of the day, week, month and year, everyone has an agenda. I believe it is to steal from the American public and destroy their wealth.
What other conclusion can we really come too?
Bernanke Knows The Truth
On Monday, October 4, 2010 the Federal Reserve Chairman delivered a speech at the Annual Meeting of the Rhode Island Public Expenditure Council in Providence, Rhode Island. In his speech, he warned about the state of the government finances and said the situation is dire and "unsustainable".
Looking at some excerpts from the speech, my take away is Ben knows the problems we are facing are at a very critical state and could be very catastrophic.
Here are some excerpts from his speech that I found interesting, yet very alarming:
“One way or the other, fiscal adjustments sufficient to stabilize the federal budget will certainly occur at some point. The only real question is whether these adjustments will take place through a careful and deliberative process that weighs priorities and gives people plenty of time to adjust to changes in government programs or tax policies, or whether the needed fiscal adjustments will be a rapid and painful response to a looming or actual fiscal crisis.”
All I can say is “WOW!” with regards to this statement. Sure sounds to me like he thinks all hell could break loose at anytime. Basically, he is saying our financial system is on the brink of collapse.
“Projections by the CBO (Congressional Budget Office) and others show future budget deficits and debts rising indefinitely, and at increasing rates.”
“The United States, governments at all levels are grappling not only with the near-term effects of economic weakness, but also with the longer-run pressures that will be generated by the need to provide health care and retirement security to an aging population. There is no way around it--meeting these challenges will require policymakers and the public to make some very difficult decisions and to accept some sacrifices.”
My opinion is that had we let the system cleanse itself back in 2008-2009 rather then bailing out Wall St. we would be on the mend, instead we are on the verge of collapse.
“Although state and local governments face significant fiscal challenges, my primary focus today will be the federal budget situation and its economic implications.”
In my last editorial, State Budgets, Next Major Credit Crisis? Bernanke concurs that state and local governments have major financial troubles.
“The budgetary position of the federal government has deteriorated substantially during the past two fiscal years, with the budget deficit averaging 9-1/2 percent of national income during that time. For comparison, the deficit averaged 2 percent of national income for the fiscal years 2005 to 2007, prior to the onset of the recession and financial crisis.”
So how can he paint a positive picture?
“Economic conditions provide little scope for reducing deficits significantly further over the next year or two; indeed, premature fiscal tightening could put the recovery at risk.”
How we get out of this will be a miracle.
“Our fiscal challenges are especially daunting because they are mostly the product of powerful underlying trends, not short-term or temporary factors. Two of the most important driving forces are the aging of the U.S. population, the pace of which will intensify over the next couple of decades as the baby-boom generation retires, and rapidly rising health-care costs.”
In my opinion, the Obama health care plan only magnifies this problem.
“The same underlying trends affecting federal finances will also put substantial pressures on state and local budgets.”
“It may be scant comfort, but the United States is not alone in facing fiscal challenges. The global recession has dealt a blow to the fiscal positions of most other advanced economies, and, as in the United States, their expenditures for public health care and pensions are expected to rise substantially in the coming decades as their populations age.”
And that is suppose to make us feel better because the crisis is worldwide? Sorry Ben, it doesn’t cut it
“Failing to address our unsustainable fiscal situation exposes our country to serious economic costs and risks.”
Ben, you just figured that out now? Maybe the November elections will shake things up in Washington and we will get some fiscal responsibility.
“An increasingly large cost of servicing a growing national debt means that the adjustments, when they come, could be sharp and disruptive. For example, large tax increases that might be imposed to cover the rising interest on the debt would slow potential growth by reducing incentives to work, save, hire, and invest.”
Sounds to me like rough times ahead for years to come.
"It would be difficult to identify a specific threshold at which federal debt begins to pose more substantial costs and risks to the nation's economy. Perhaps no bright line exists; the costs and risks may grow more or less continuously as the federal debt rises. What we do know, however, is that the threat to our economy is real and growing, which should be sufficient reason for fiscal policymakers to put in place a credible plan for bringing deficits down to sustainable levels over the medium term.”
In my opinion, this should be done now before it is done for us. Simply put, at some point the buying of our debt from foreign countries will stop. Then it is game over!
"Well-designed fiscal rules cannot substitute for the political will to take difficult decisions, but U.S. and international experience suggests that they can be helpful to legislators in certain circumstances. Indeed, installing a fiscal rule could provide an important signal to the public that the Congress is serious about achieving long-term fiscal sustainability, which itself would be good for confidence. A fiscal rule could also focus and institutionalize political support for fiscal responsibility. Given the importance of achieving long-term fiscal stability, further discussion of fiscal rules and frameworks seems well warranted.”
I agree Ben, Congress better become fiscally responsible and get a plan in place before it is too late.
Conclusion:
The November elections might be our last HOPE to help get government policy and politics moving in the right direction or, at least, help restore confidence. In addition, it certainly would not hurt for U.S. lawmakers to consider adopting rules that limit federal spending or debt.
Give me this, and I would say we have the potential to start seeing jobs created and this might in fact, offer all of us, some rays of hope shining back on our great country.
In the end, some form of austerity measures will probably be needed along with a cutting of government entitlement programs.
Here at PSTL, we think from an economic stand point, DEBT ISSUES will remain a big problem for our country and the economy. Since late December 2008, we have been teaching our members in our nightly video updates and daily live webcasts to be vigilant in this continued complex market environment.
