Expect the Best, but prepare for the Worst

Are banks buying politicians in an effort to keep an unfair privilege?
(See contributions to Jeb Bush and Hillary Clinton)  Too many voters have their heads like ostriches in the sand.

money in 2016Seeing their darling on the left (Hillary) hit the skids and their favorite on the right (Jeb Bush) in sad decline, the reaction of the banking industry reminds me of a cat I once had.
She was placid, until one morning some dogs backed her into a corner. Then she lost it.

You only have to watch some of the Club for Growth negative ads to wonder if they have lost it.  Don’t they realize they are on the wrong side of history. 2016 is the year when the negative ads finally stop working. This 2016 electorate wants positive, STRONG solutions.

Now this cat, she bit and clawed and screeched and pounced and even although we saved her, she was never the same again.  She was irascible, unpredictable and mean. Possibly this had been her basic personality all along.

So the big question is, are the banking elites frightened that their unfair privilege is about to come to an end? Is this becoming a vital factor in Election 2016? Are the statists and now the conservative elites (crony capitalists)  frightened because they can’t buy Trump?  

There is a situation here that the next President will have to face, and it is going to take a very strong man (Trump or Cruz) to bring us through.

Hello! It is finally time to face the facts of this economy. 

No, it is not all doom and gloom, it is a situation that can still be fixed but only if we choose wisely in the next election. 

In a nutshell here is the situation:  In spite of a bottomless pit of FED money creation, the debt is unsustainable; the “created” income inequality is finally being seen and understood by voters and they are resenting the injustice.. Stop gap measures to settle out the protest  like food stamps are only making matters worse.  Past efforts by the banksters to pin the blame elsewhere are no longer working. On Twitter and Facebook we learn that with the crash of 2008, only the immediate danger was handled but ethics and correction and reorganization NEVER WENT IN. All the money printed by the FED to bail out the banks, and to “stimulate the economy” didn’t go to the people; it went right back to the banks. The biggest danger: derivatives  could be the next bubble to pop and make life mighty hard on main street.

inijustrice

We are going to have to wake up and realize that we need a STRONG and good president!. Please read the following:

” As my fellow Heritage colleague Norbert Michel and other scholars have thoroughly documented, the crash of 2008 was caused by government policies and regulatory failure, including easy money policies that flooded the markets with debt. Within a decade, these policies led to preposterous mortgage loans being issued, and massive over-leverage of government, companies, and households.

Now the Fed, the White House, and Congress are recreating the very same conditions for another financial bubble. If it pops, we could replay the same devastating effects as occurred during the first bubble in 1999 and 2000.

It is doing so in four ways:
First, the Dodd-Frank regulations are exacerbating one of the greatest consolidations of the banking industry since the Great Depression. Those indispensable small banks, like the one Jimmy Stewart operated in the movie “It’s a Wonderful Life,” are disappearing from the American landscape.

This is largely because big government policies are slanting the system in favor of big banks. Because of this, we have created a competitive advantage that allows the sharks to swallow the minnows. Meanwhile, the “too big to fail” safety net to Bank of America, Citi, and other titans exacerbates this cost advantage of big banks and thus makes bailouts even more likely in the future.

Second, Fannie Mae and Freddie Mac are engaged in the same low down payment lending mania of 2004-07, and the Obama administration is on a Bush-like homeownership push. Fannie and Freddie are again guaranteeing mortgages with as little as 3 percent down payment. Have we learned nothing at all?

Third, the Fed refused to tighten its stance in September, and, hello, that easy money policy is how we got into the mess in 2000 and then in 2008. Wall Street cheered Janet Yellen’s decision to keep the cheap dollars flowing.

sliding banks

Finally, there is the saturation of debt. When the crisis hit in 2008, the national debt stood at a little under $10 trillion. Now we are over $18 trillion. Government is hopelessly over-leveraged, and the interest rate exposure is enormous. With each one-percentage-point rise in long-term rates, the servicing costs of the debt rises by about $1.8 trillion over ten years.

Fannie and Freddie are again guaranteeing mortgages with as little as 3 percent down payment. Have we learned nothing at all?

The point is that government and politicians have no learning curve. All of the conditions of financial wreckage are reappearing. The presidential candidates should start warning voters that Washington is rebuilding another financial house of cards”

As Published in the Daily Bell – A Heritage Foundation Publication.

COMMENTARY BY

Portrait of Stephen Moore

Stephen Moore, who formerly wrote on the economy and public policy for The Wall Street Journal, is a distinguished visiting fellow for the Project for Economic Growth at The Heritage Foundation.

 Quote for the week

In choosing a president, we really don’t choose a Republican or Democrat, a conservative or liberal. We choose a leader.

Rudy Giuliani 

Corrupt  Banking destroys Capitalism and Prosperity

Is the corrupt system that we have sustainable?

greed

Letting the market adjust in accordance with pricing determined by supply and demand is fair and it is far more efficient than leaving it to politicians.  You don’t believe Grandma? You are in good company for financiers all over teh world would never agree.  And why not? Because they have injected all sorts of unusual  interruptions to the business cycle to give themselves an unfair advantage. Don’t be deceived by these extremes put forward by the Crony Capitalists.(Republican and Democrats alike) for this is actually one group and not two, and the divide is artificial. Liberty Lovers define these politicians as Statists. Statists can also be defined as those who want to keep and protect the (corrupt) status-quo. Goldman Sachs and AIG and cronies (assholes in greed) earning big bonuses in a casino designed by bankers for bankers, are the prime defenders of the status-quo. They want things to stay the same – investment business as usual.

The big question is – has business as usual given us a fair and workable distribution of American wealth and resources. Take a few minutes to examine the true facts and you may find the situation more dire than the propaganda line.

Watch this video: mind blowing facts

Now are you ready to listen up here, and help to educate and spread the word?  If you care, your hat is to make what is really going on real to voters in 2016. This is a critical year. Grandma believes that the world is on a tipping point and the outcome of the next election, will decide our fate. Free and Prosperous again? Maybe, but maybe not?

This is the second in grandma’s series.of educational posts about free market economics. In the first post she used an anecdotal example, introducing Tom and Sally who both work in the canteen in a VA hospital. In that first post it was Sally who was promoted and as she began to earn more money, she put her surplus in a bank owned by Dick. In the first post we also met small business owner Harry who has a furniture factory/shop and it is Dick the banker who financed his enterprise and helped him to take it up to the next level. Harry got his loan for ten thousand dollars from banker Dick and he paid ten percent for the privilege of using the bank’s money. He invested this money in machinery and raw materials and his enterprise prospered.

The fundamental problem is that the money was never Dicks. It was money deposited in his bank by hard worker Sally and many others like her.  The loan Harry got from Dick was for ten years and he was to pay it back in ten years or else Harry would be subject to a penalty. The penalty was that if not paid in ten years, compound interest would accrue.

Harry did well and in the beginning even Sally was rewarded with a good return on her deposited money.. Here we find Dick the banker engaged in a constructive activity.  This is how Capitalism works in the ideal.

Then Dick got greedy!

There is a problem with people who work only with numbers, for it is easy to have a disconnect. Decisions are made and policies put in place that are not for the greatest good. I think most Americans sense that there is something wrong, they just don’t understand how it works. So they cannot use elections to right the wrongs. The answer is to educate them. .

The first corruption occurred when Banker Dick got greedy and decided to charge compound interest from the get-go and to add insult to injury  to make these charges retroactive. Then to make matters even worse  he cut Sally’s interest rate to way lower than 5%.  How was he able to put his hand in the cookie jar an get away with this stealing?

 Politicians propitiating

This is the exact point where an honest government (justice department) should have stepped in to play umpire and to say, “Oh no, hold it right there corrupt bankster, Dick There was an agreement here between you and Harry and an agreement between you and Sally and you are unilaterally changing the rules.

When government (which is force) gives Dick the right to change the terms of his agreements, the system is being corrupted by the force of government and we no longer have true Capitalism. Do you think it right that banks can change the terms of agreements without even asking you? Does that sound just a little bit familiar; just a little bit too close to home? When did banks last change the interest rates on you? It is always all hidden in the small print.

“But that is not what we agreed to,” wails Harry.  “I am perfectly happy to pay a penalty if I default, but . . . ”  Well if Dick is contributing to election coffers, and has the politicians in his pocket, poor Harry can protest as much as he wants and there will be nobody there listening. Government (especially DOJ) is no longer playing umpire and properly calling the fouls. In short they have quit doing their job. 

A fair transaction is one where both parties agree and both parties benefit and the transaction is transparent. If the bank persuades its buddy, big government to allow it to charge compound interest from the get go, the system has been corrupted and banks (who are in no way producers) are getting an unfair slice of the dice. If the banks persuade big government to also let them have floating rates of interest, fractional banking and variable penalties, this destroys Capitalism and our way of life, our liberty and our prosperity.

So let’s pretend a little longer: Another banker, Banker Dikhead, sees Harry doing well and casts his greedy eye on Harry’s loan.  So he goes to Banker Dick and says “I want to buy that loan from you”.Can he do this? Was there an honest transaction between Harry and Dikhead? Of course not. Both Dick and Dikhead’s confusion is that a loan is a product or a service when what it actually is, is a private agreement between Dick and Harry that ought to be honored. This is a point where justice should be stepping in, but this has not happened for a very long time.

If Justice allows Dick to sell the loan to Investor Dikhead, who in turn sells it to banker Moby Dick who passes it along to Savings and Loan, Dikneck, we get a “dick, thick” market that is filled with sludge, and everything slows down. In a slow, confused economy poverty enters in. We all get poorer and even the super rich will eventually get sucked into the dwindling spiral. Even if some good politician were to bring about a fair exchange for the electorate, it has now become almost impossible because we no longer have clear and clean transactions and government has a corrupted organizing board where even justice has become the tool of the super rich.

To add to all the silliness in the system, let us say that investor Dick Sorrowmaker looks it over and he says “Mmmm, I think we may have a bubble here. (sound familiar?) I shall bet my sorry fortune that this bubble is going to pop!” Of course it is going to pop because it has no intrinsic economic integrity.  Dick Sorrowmaker wins his bet and gets to be one of richest men in the world, profiting from a decline, a burst economic bubble; and it is downright scary that he can get away with it. I mean be objective here. Should any investor be able to profit from a decline?   This is crazy economics.  Investors should profit when they contribute to growing the economy and creating jobs. And what of the unintended consequences? We now have an investor who was able to buy countries and politicians and radically change elections and not always for the better. Is Dick Sorrowmaker a producer? Investors, bankers and politicians, none of them are producers.

They do not make anything.

Oligarchy defines a society or a system that is ruled and dominated by a small minority of the top wealthiest (corrupt) citizens. Oligarchy is a way to enrich the few at the cost of the many. So the free market ceases to function and Capitalism becomes a system in name only.

Those who are at least up to seeing the inequities tend to embrace socialism as the solution. Socialism has one major flaw.  The common denominator in the decline of honest banking has been a lack of banking integrity and the greed of bankers and an inept Justice Department.   Capitalism detractors see this as a flaw in the free market system. Yet what it truly is, is a flaw in government and a corruption of justice.

Sally is well rewarded by an honest bank for her industry and thrift. She uses her surplus to buy a house and her spending as she decorates keeps several other small businesses afloat. She even buys furniture from Harry.

In a free economy Harry gets his loan, buys new machinery and starts to make fancy decks and sun porches. He employs new workers who are paid fairly. Employment goes up. After all Small Business is the largest employer of all. This new market he has newly found is wide open and he can keep his furniture at an even keel and depend on the new products for his profit. He has already learned all the woodworking tricks that will take him successfully into his next venture.  The price for his furniture and for his decks will be determined not by government but by supply and demand.

And so the market grows and the nation gets prosperous.

True Capitalism is governed by self interest, but it is the community’s cumulative transactions (the market) that has the power to transform self interest into the greatest good for the greatest number “as if by an invisible hand”

healthy economy

 Quote for the Week

Anyone who robs Peter to pay Paul can always count on the support of Paul.   George Bernard Shaw

 

lynnblueovalAbout the Author

Lynn Verhoeff (Grandma Thunder) has been writing for twenty years.  She has published two books, “Politics IOU” and “Magic Money” both on Kindle.

You can read more posts at www.grandmathunder.com

Understanding Election 2016

Did the FBI Director just pull off a dirty-double justice BLUFF? 

justice bias

Thanks to Wikileaks the evidence of unethical Clinton behavior has been mounting.

Here is the short story: Clintons are guilty of working with Quatar and Saudi Arabia to arm ISIS in order to unstabilize Syria. This is an oil grab, and it has nothing whatever to do with democracy or the welfare of the Syrian people. There have been unbelievable atrocities and I predict bad consequences for America. NOTE WELL: The war in Syria like several wars before, WAS NEVER DECLARED BY CONGRESS.

What does Wiki tell us about this game playing out in Syria which illegal war Obama started and Hillary Clinton oversaw as Secretary of State. Somewhere in the middle of all of this and begging for an honest investigation is what appears to be a giant money laundering operation: the Clinton Foundation. Bribe money? Pay-to-Play? Fraud? NOTE: Quatar just gave Bill Clinton a Million Dollars for his birthday. What did SOS Hillary Clinton, give Quatar?

The Clinton Foundation doesn’t seem to be a real charity? Much money raised by the Foundation for Haiti after their disaster, yet none of the money reached the people.

Furthermore thanks to Wikileaks what we now know is:

  • Saudi Arabia was a prime mover in 9/11
  • The Obama/Clinton cabal are complicit in arming ISIS?

Go back to 2012: Apparently Ambassador Stevens didn’t like the shenanigans and had to go. Was the attack on and the failure to protect the ambassador a premeditated and planned event; a setup? (Wikileaks) It is also suspicious that Petraeus was gotten out of the  picture just before Obama’s election in 2012. Petraeus may not have been as compliant and political as Lynch & Comey?

My dear Americans this is not JUSTICE functioning as it should. Don’t understate the level of transgression: The alleged crimes are lying to FBI and the mishandling classified information. But  “Good Justice” would dig deeper. What we have is AN OMITTED INVESTIGATION INTO THE ILLEGAL WAR IN SYRIA.  At the bottom of this we may well find a Sherman Tank.

So the pertinent questions are:

  • WHY IS JUSTICE NOT DOING ITS JOB?
  • WHY IS THE PRESIDENT OFF-HAT REGARDING WARS?
  • WHY IS CONGRESS NOT DOING ITS JOB?
  • WHY IS THE ELECTORATE NOT HOLDING THE BELTWAY ACCOUNTABLE?

Donald Trump is running on a platform of DRAIN THE SWAMP (clean up the Beltway) and Wikileaks has been showing us that both Clinton, Comey and Loretta Lynch are deep in that stinky swamp. As Trump’s message begins to resonate with the electorate, our good friend PoliticalComey strikes.

Comey finds Clinton not guilty of any wrongdoing, finds her as innocent as virgin snow. 

Should Justice be Above Politics? We all know this to be true, so Democrat or Repulbicans how can we make this happen?

This flaw in Justice does not exist as it was designed in the constitution; but as it exists here and now where it is corruptly abused.

Power Corrupts and Absolute Power corrupts absolutely.

Executive, Justice and Legislature

In an ideal world the AG should be an elected office and the Department of Justice would be FULLY ACCOUNTABLE TO THE PEOPLE. 

Americans pay lip service to the idea of a separation of powers between the Executive, Justice and the Legislature, but I don’t think many understand it.

What we have is an Intelligence Department created by a President, reporting directly to the President. This is a collapse of Justice and the Executive.

What we now have is loyalist Power Czars hired and fired by the President; not ratified by the Senate. This is a collapse of Executive and Legislature. 

What we now have is a president bombing a sovereign nation without congressional authorization.  This is a collapse of the Executive and the Legislature. 

What we now have is a Secretary of State playing foot and loose and getting paid by foreign governments. This payola is specifically banned by the Constitution of the U.S.A.

What we have is a presidentail candidate lying to the FBI; no consequences; collusion between the candidate’s husband and the AG. This is a collapse of justice

What we have is an AG threatening to prosecute American citizens for doubting climate-change and for their anti-Islamic rhetoric; an extreme abuse of judicial power.  This is unconstitutional. 

What we have is an AG threatening to prosecute ‘right wing extremists’; LOL defined as someone owning a gun, who target practices. This is unconstitutional.

Then there is the subject of voter integrity. Several high court rulings have come down abolishing the demand for Voter ID at the polling booth called by the LEFT you won’t believe it, unconstitutional. Now the LEFT is suing the RIGHT for manning Exit Polls to ENSURE VOTING INTEGRITY; this they call (sic) voter intimidation,  I guess the illegals voting illegally are terified that they will be picked up at the polling booths and deported. This is an altered importance in justice. 

Sadly this is the form of government we now have. The good news is that there is nothing that cannot be fixed BY SIMPLY GETTING BACK IN THE PRINCIPLES OF OUR FOUNDING DOCUMENTS. We would need to make just one small change and this is to have the post of AG be an elected post, government in its all three branches would begin to operate for the greatest good and be accountable to the people; a trickle down effect. 

For the last eight years we have had a President autocratically imposing his view of life, his idea of what is right and wrong on the American Citizen supported by a mandate from a past election that was questionable at best. (With these new autocratic dictatorial powers that he has assumed how long will it be before we are forced to agree that any President has the right to tell us how we have to think, and feel and act; not too far from bringing the inquistion and thought police to the U.S.A. An Executive has no right to establish our moral code, or what is considered RIGHT and WRONG, UNDER LAW. This is why we have elected representatives so that our values filter up through a democratic process to become the law of the land.

And now hear this: As set up by TPP & TPIP (Trans Pacific Partnership)  this egregious Trade Deal fully gives away our right to constitutional justice. This legislation appoints justice tribunals to have the power to override our judges. If TPIP is passed during the lame duck session, finally JUSTICE will be dead in our land.

An unjust society is in no way a safe society. An unjust society is in no way an orderly society and an unjust society is never a prosperous society. To make America Great Again we have to restore constitutional justice.

Power corrupts and absolute power corrupts absolutely. 

Some states have a far better system where the Attorney General is an elected office. Having an Attorney General elected by the people WOULD BRING  back the balance of power.

As people power filters down through the justice department to fix the FBI, CIA, DHS anti-trust laws and on &  on, could this not bring back TRUE justice in America? 
To eliminate strife clean up justice.

Quote for the Week

All the great things are simple, and many can be expressed in a single word: freedom, JUSTICE, honor, duty, mercy, hope
Winston Churchill

Does 2016 give us a Chance?

Dirty Tricks have been used to pass Bad Laws; can we stop this?

We have a sound system given us by the founders. And it works but if things don’t turn around in 2016 we could be losing it.

When we talk of making a law this is the ideal: One transparent source, one subject, one bill, enough time for politicians to read the bill, enough time for the electorate to weigh in on the bill, a simple up/down vote ON THAT ONE SUBJECT and a two thirds majority where applicable.

Could it be simpler? Simple is good.

What the corrupt establishment in Washington hasn’t quite realized is that it is a new day and the American citizen is coming to take his country back. What our elected officials haven’t realized is that the system is slipping when it begins to get complex.

Today we have much complexity and sadly this obfuscates corruption. Congress has been persuaded that they need to rely on experts to write the bills.  According to Hillsdale College we have a fourth branch of government, the bureaucrats that are not elected and it seems they have been taking over the show. LOL experts are using big, complicated legal jargon that even our elected representatives do not understand; is it any wonder they do not read the bills? Yet it is demanded of us that we follow these corrupt and complicated laws. This is legislation without representation. Do you ever wonder how and why we get bad laws?

The Story of Glass-Steagall 

Glass Steagall (1933 -1999) was legislation that curbed income inequality. The biggest challenge we face to day is income inequality.

Glass Steagall was repealed on Bill Clinton’s watch and it has been said that this and the irresponsible deregulation that occurred during the Clinton second term, sewed the seeds for the BIG CRASH of 2008. Robert E. Rubin and Mr. Summers, also culpable for our current economic woes, still maintain strong influence in the Hilary campaign.

TBTF

Glass- Steagall was designed to limit conflicts of interest and the creation of over bloated banks with questionable assets that in 2016 are again getting too-big-to-fail.

Banks would never have needed the bail-outs, while still being banned by Glass Steagall from underwriting securities. Glass Steagall is a simple law and it forces banks to choose between being a simple lender or an underwriter (brokerage). It is a good law and it worked for half a century.  It could work again today. Derivatives (which were banned by the Glass Steagall) are fast creating the next financial crisis. We have a dangerous situation with even more banks that are too big to fail.

Along with this forming bubble, is the unsustainable debt the quality needed most in the next president of 2016 is a clean slate with regards to finances. Even more than that we need a STRONG president to help us handle any fallout that may occur from what is still a condition laid in by Bill Clinton, his economic advisers and the big banks.

The story of the Federal Reserve

Fed stats

The Federal Reserve Act was enacted on December 23rd 1913 to create the Federal Reserve and the Central Banking System.  It was slipped through Congress while most of the delegates were away on holiday!

How effective has the Federal Reserve been in managing our money?  Statistics show they did turn the economy around in 2008, but that the recovery for main stream has been tepid at best. Small business is still struggling and too many people are living paycheck to paycheck. They can’t blow thier horn on having had much success. Of most concern is this is the USA debt that they have created for our children.

At this point in time, the Fed is an established part of the fabric of our system of money but there should be more oversight.  Significant efforts to get a complete audit of the FED have so far failed. There has been no complete audit of this establishment in the over 100 years of its existence.

They have allowed the market to turn into one giant casino and should be audited and held accountable.

ObamaCare

cost of obamacareIt isstill too early to evaluate this expensive Act; so far there have been some good and some bad consequences. We do know though that it is costing the country money. So be it. What we can say with an absolute certainty is that ObamaCare is not a law crafted with legislative integrity.

ObamaCare was passed by democrats; not a single Republican voting for it and there were some legislative shenanigans used to force it through; making it a coercive law.  Is it any wonder that the GOP rage about healthcare is still escalating?

Harry Reid in 2009 was confident he “just” had the 60 votes to get OmbamaCare passed; however according to congressional rules, such a bill could not originate in the Senate as it is a revenue bill. So Reid went ahead and found an old Senate bill HR3590 (a military housing bill) and stripped the bill of its original language, thereby creating ObamaCare. Huh? You get it. That’s right. ObamaCare began with a confused identity.

There were other problems: The house wanted to make some changes to the bill and the house-amended version was scheduled to go back to the Senate for approval.  Unfortunately in the interim Senator Teddy Kennedy had died getting himself replaced by a Republican. Hello! Reid no longer had the votes to get the amended Act approved.

He cut a deal; the House would pass the Senate’s original bill (no changes) and in addition the House would create a new bill that tabled all the desired changes calling it a reconciliation bill. After all who cared about the changes? The bill is so long and complex that nobody was going to read it anyway.

ObamaCare was not created by politicians; it was created by Big Pharma and their lawyers, nothing representative here.  Nothing simple here.

Of course with a Reconciliation Act tagged on, this only further complicated the complex bill.  Note: Such a use of a reconciliation bill is also contrary to congressional rules.

Twice now the Supreme Court has rubber-stamped ObamaCare raising the question, given its blatant illegality, are there any other dirty tricks here in play like blackmail?

None of these above laws could have been passed or been forced on us had there been a true integrity in the legislative process and an ethics body to investigate and make sure our politicians play by the rules.

So now that we know our representatives are not going to do the right thing, our first duty as a citizen is to learn more about the constitution.

2016 is the year when we hold our elected representatives accountable.
2016 should also be teh year when we have the courage to hold our banks accountable, demanding that those who manage our money and our healthcare, do so in the interest of the greater good.

Quote for the Week

“We are making up the rules as we go along.”

Alcee Hastings of the House Rules Committee during the ObamaCare bill process.

About the Author

bluelynnSLynn Verhoeff (Grandma Thunder) has been writing for twenty years.  She has published two books, “Politics IOU” and “Magic Money” both on Kindle.

You can read more posts at www.grandmathunder.com

 

Tags:

Glass Steagall, Federal Reserve Act, ObamaCare, Congressional rules, presidential election, speaker elelction