February 13, 2009

This isn’t meant as a news blast because we all know it’s true that our country/world is controlled by major corporations buying the power of government through campaign contributions and other, less obvious ways. Dwight Eisenhower warned us against “The Military Industrial Complex”. Ralph Nader, love him or hate him, started telling us decades ago and yet we all know, beyond normal knowing, that their control has grown exponentially over the last 40 years. This control of our lives and destiny has increased only because we’re asleep and we allow it.

A number of years ago I found an erroneous charge on one of my credit cards. I turned the card over and found the customer service telephone number and called. I was thanked for calling and told that the incident had to be reported by letter and that telephone reporting of these incidents was illegal. My cynical mind knew immediately that the law had been created by members of congress who had been bought by the credit card industry.

One might assume that the Food and Drug Administration (FDA) would, by law, have to be notified if a food processing plant were to discover salmonella in its food production chain. That assumption would be false and worse, the FDA does not have the authority to ask for the results of tests performed by independent labs at the behest of the corporation. This latest scandal involving the Peanut Corporation of America brings into clear focus how our government agencies are controlled by corporations through their power over congress. Even after it had been proved that many people had been poisoned, some fatally, the FDA had to invoke a bioterrorism statute to be able to get the test records from the company.

The current bailout of the banks and brokers who have been bilking the world for decades is being managed by the same people who caused the problem. I’m told that I’m wrong by friends in the business but I know that the money that went to AIG and others has been used to pay the lost bets made by Goldman Sachs et al. These bets, opaquely referred to as credit default swaps, were actually bets on the failure of mortgages bundled together to create a security. Combine that with no regulation of hedge funds and the increase of allowable leverage from 12:1 to 40:1 which occurred during the last 7 or so years and you have a recipe for financial disaster. So here you have these manufactured securities containing mortgages that cannot be repaid by the mortgagee because they were sold to people without any proof of income. They were pushed by unscrupulous brokers who were paid commissions for foisting impossible mortgages onto the uneducated. The hedge fund managers and major brokerages were selling these bundled securities to investors and then buying credit default swaps to guarantee the securities against failure. Then the credit default swaps began to be traded as yet another manufactured kind of security and, to make the craziness even crazier, you didn’t have to own the security to be able to purchase a swap. Thousands of these swaps were purchased against each security.

As the securities failed and the swaps couldn’t be paid because the assumption had been that they would never have to pay because failure was so unlikely the sellers of the swaps became insolvent and Humpty Dumpty fell off the wall.

I assume there are inaccuracies in what I’ve just said because all the details are hidden so deeply. My Truth is that we are all being robbed by these people somehow and I’m going to keep talking about it because it’s all I can do.

“All that is necessary for the triumph of evil is for good men to do nothing.” Edmund Burke

Posted February 23, 2009

1 Comment

Please do not ever stop telling “Your Truth” Phil.
You see it all so well and you say it so well also. How helpless we feel but the freedom of speech is so powerful. Thanks, Betsy

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