Video: The EU Banking Crisis Contagion is Spreading

Video: FYI - The International Banking Cartel

Cyprus, Not Cyprus Hill Negro

One of the biggest news stories thus far this year was the lead for the top German, Brazilian, Japanese and Canadian Television outlets yesterday. But it wasn’t even mentioned in the coverage offered by CNN, MSNBC, ABC, NBC, or CBS via broadcast transcripts - Thank God for PBS and the News Hour. Not to mention it wasn’t even a consideration for coverage by African American political bloggers or news sites the likes of The Root, Politics 365, The Grio or any other supposedly political news site that is run by African Americans. And no it was not Obama in Israel, or even Keisha Cole and Beyoncé, rather the run on banks and the EU central bank actions toward Cyprus. Yes to get a bailout from the EU central banks, banks are now allowed to take money from all bank depositors – all account holders.

Now I know many will ask, “What does that have to do with me?” A lot and I will attempt to explain, albeit I know it may be difficult for many of us African Americans because we never heard of Cyprus, care or know anything of substance of the Eurozone sovereign debt crisis, but such should be no excuse. See what happened over the weekend was that a group of EZ leaders, the IMF and newly elected President of the small tiny island nation with a GDP the size of Vermont and a population the size of Philly agreed to force all with a bank account to pay for the government’s debt. Banking will never be the same if folk can’t truth the banks and since they saw the could not trust the EZ, IMF, government or the banks they started to pull all of their loot out.

The EU central bank has decided it is ok for big banks to take money out of the accounts of private citizens to pay for the debt of the nation they live in. Yes that right, all under the guise of it being a new tax. Strange since taxes are the result of political legislation and don’t go back in time. But that is what the large global banks are doing and if they can do it there, they can do it here, especially given Obama’s lack of gonads to even prosecute and arrest bankers. Even funnier is the fact that the banks are taking citizen’s money for loans they did not ask for and which the banks knew were bad when they first made them to the government of Cyprus.

Some will naively assert that this is America and it could or would never happen here. Surprise, it already did, last year from on one of Obama’s boys – John Corzine of MF Global. What Corzine did is what we see happening in Cyprus right now – bank account seizure (tax) without due process. Thus if it can be done in Cyprus, it can and will be done in Italy, Ireland, Spain and even the US, since bankers who caused all this nonsense with the assistance of inept politicians will seek to get all their money from the governments they loaned them too to cover for the losses of the zillions of different complex papers they created that were then and still today basically worthless. But yawl don’t hear me though.

What I can say factually that the present Administration, as the last four are for the fat cat bankers and Corporations. Just from IRS statistics we know that Americans who made over $10 million in 2010 paid on average just under 24 percent of their incomes in federal income tax, less than a third what they paid in 1950. The end result of such practices is a nation in which corporate profits are setting records while typical workers continue to make less than they earned a dozen years ago.

You know there was a time in America when corporations paid taxes, no lie. Not anymore even when corporate profits have been growing per annum at a 20 percent rate. In fact, to find a year when corporations were grabbing as great a share of America’s income as they’re grabbing now, you have to go back to 1950. In the 1950s, the average corporation paid about 40 percent in annual taxes. Now, major U.S. corporations actually pay about 12 percent in taxes. Why is this a problem, well in 2011, the Institute for Policy Studies, reported that 25 major U.S. corporations paid their CEOs more than they paid in corporate income taxes.  Then we can take alook at NYC where the number of  residents receiving food stamps has  more than doubled over the past decade under Mayor Bloomberg, according to data released yesterday. Now, 1.8 million receive food stamps, a jump from 800,000 in 2002, and the Independent Budget Office data show. But 99 percent of African Americans believe their President even against fact that the economy is growing. But it is not and if I accept this premise, then for whom is it growing?

First, the cost of the federally funded food-stamp program in places like NYC had increased dramatically to $3.4 billion from $1.28 billion over the past decade. True, naysayers and other average minded individuals reinforced on reciting lessor proofs proffered my weaker minds will say look at the stock market. I in return will say, yes, look at it. But reality notes that the stock market is not a good indicator for overall wealth of Americans since the average American’s wealth, if the happen to own a home is in home equity - real estate values are still down about $5.5 trillion from their peak. So thinking about, one has to ask if the economy is doing so well and growing as Obama describes it, why then are there over 47 million people in the US living on food assistance to survive. It is clear they are not obtaining any of this wealth.

The Administration is a top down machine just like it was when Ronald Reagan started the practice. The US financial system is buttressed upon trillions of dollars of bailouts and loan that result in risky speculation that cause incessantly financial bubble after bubble. Right now, America has a record debt of $16.7 trillion. Maybe this is why as quiet as it is kept, the Obama administration has announced policy that would allow the federal government to control private citizens 401k’s.

Plainly stated, it is the cost of borrowing money itself that has bankrupted Cyprus, Ireland, Spain and Italy. As it stands, the same shackles of debt are on the hands and feet of the US government and if history is any indication from a policy purview, the people will be the ones to pay for it. But this won’t happen, Obama and Bernanke are so stuck on “quantitative easing” even when they know and data points out that it is just making money out of thin air via a few zeroes added via a computer monitor. The problem with today’s QE is that it has put money into the pockets of the big fat Wall Street bankers but not into the pockets of consumers. What we need is to obviate all public debt and let the corporations and banks keep theirs and let them deal with the problems they created as a fiat. I mean default on the public debt has worked in Iceland, Argentina, Ecuador, and Russia, among other countries.

 But this all makes too much sense and we African Americans don’t care if it hasn’t anything to do with a singer, rapper or anything on television. I know, I asked all of my classes if they were aware of what had occurred in Cyprus: one asked, “you mean Cyprus Hill?” I responded “naw Negro, Cyprus not Cyprus Hill.” Cyprus may be just the start. As of now banks are closed until Thursday. We will have to see if a run starts again and if it spreads to other European nations, if so, it could be the end of the Eurozone and the start of the demise of the US economy. Two years ago we exported 40 percent of our goods and services, this year its down to 21 percent.

Global Financial Meltdown In 2 To 3 Weeks says IMF Advisor

The One World Corporation

As I listen to the inside the beltway bickering of sound bites from “taxes on private jets” to “cut, cap and balance,” I cannot grasp that no one has simplified this discussion regarding debt and deficits. The way it is presented, many act as if debt and deficit are the same things when they are not, while just forgetting to explain that the real issue is our sovereign debt crisis as a nation and not liquidity. This means that the US economic woes are a function of structural problems we have while operating in a global economy.

For example, around the globe, the real problem is not the governments (albeit they play a major role) but rather the banks and the possibility they may run out of money. In Ireland for example, it is more likely that banks will run out of loot before the government. Here at home, Bank of America recently made a bond issuance of $2.5 billion in new bonds. Why, because they are short on loot, running out of money and because the bank's stock just fell to fresh multi-year lows.

Both banks and governments are responding to the global debt crisis by adding more debt on top of debt. Adding debt to more debt is a pyramid scheme, a Ponzi scheme for to keep the pyramid intact, more loot is needed to keep those on top and under them making money. All kidding aside, looking a Greece for example, the fact is that Greece will never be able to pay back the debt it owes bond holders and the global markets.

It is not hard to see, but when you have a basically dumb-downed and ignorant electorate, the obvious gets lost in this age where talk and opinion takes the place of news and information. Or else it would be front and center that in the last year, the US dollar has fallen 12% in value which has led to making China the top seller of US treasury bonds worldwide. This means that the US government is an insolvent nation financially. We have accumulated a trillion dollar deficit three years in a row and a double dip in the housing market. Add to this the rising cost of oil and gas due to manipulation by speculators, mainly by the Goldman Sachs Commodity Index, and then it is easy to see what the outcome will be – a global economy run by a single corporate institution in the form of one world bank.

Ireland, which total debt is 100 percent of GDP, is insolvent. Greece, Italy, Spain, France and the US are all approaching the same boat. Why because the IMF, World Bank, Federal Reserve, Bank for International Settlements in Basle, Switzerland (a private bank owned and controlled by the worlds' central banks which were themselves private corporations) and similar agencies only work to see banks get paid, not that governments or democracy survive and prosper. If the US is to survive, it must function on a national credit system, which would lead to a sovereign nation state based on a system of our currency – the dollar. This would result in a non-inflationary credit system run by the state. But banks don’t want that, as Andrew Jackson and Lincoln found out centuries earlier.

If this does not occur, then we will continue, as a nation to involve ourselves in wars, for that will be the only way to make money. We will be in Pakistan, which will put us in conflict with China (which may involve India and Russia) and even in our own hemisphere in South America.
What is saddening is that most Americans do not have a clue, especially African Americans who often cannot see the trees for the forest through our own doing. History shows us that when the US economy goes awry, we feel it first and hardest. For we have limited if any knowledge of the collateralized debt obligations, complex financial papers/instruments, or the sophisticated computerized risk models that got us as a nation in this predicament. But we can spend, and buy and not save although property depreciations due to the foreclosure crisis will wipe out a significant amount of our wealth as a community and may cost us alone upwards of $190 billion dollars. After all everybody know we are the most vulnerable, especially loan companies, except for us.

Folk, America is broke. We the people are broke. The only thing I see on the horizon is debt on top of debt. But like all pyramid schemes, ours will fall or be found out too and our republic as we know it will be no longer and instead, a part of a new entity – the one world corporation.

If I were a Conspiracy – The French Connection

One thing that ticks me off is the notion of conspiracy theory. Frankly, I do not know what this means. When it is used, it is often in an attempt to vilify another’s radically different use of observation and reason to formulate a tenable answer to some conundrum. In simple terms, a conspiracy is a secret plan or agreement to carry out an illegal or harmful act which is usually grounded in some form of political motivation.


Now, I would ask if any remember reading the Book “The French Connection” by Robin Moore but doing such would only date me. I read the book in the mid 70s, around the time I was in Junior High School and found it fascinating. Based on a true story, eventually it would become a movie about the criminal underworld of the drug trade. It was such a god read. And in this age of internationalism and global economics, it doesn’t seem improbably that a man can be tricked and set up based on personal habits alone.

This week in Manhattan, the Chief of the International Monetary Fund (IMF) Dominique Strauss-Kahn on charges of attempted Rape. Now if you listen to my blog talk radio show, you are aware that I reference the World Bank, IMF and the Federal Reserve Banks frequently; as well as to specific individuals and policy positions. Now as a scientist, I like to produce all possible reasons for an outcome and this entire fiasco holds up red flags.

See Strauss-Kahn aint the typical international big banking mogul rich mutha fuca, no he is the Socialist Party of France leading Presidential candidate. He by many estimates had a great chance to replace Mr. Sarkozy and placing his party back on top of French Politics. But this may be over. It was well known by reading the French dailies like Le’ Figaro or Les echos, it was obvious that he was aware of his hurdles. Less than three weeks ago, Dominique Strauss-Kahn met with two journalists from the daily Libération.

He indicated that the biggest issues he would confront in attempting to become president were “women, money and being Jewish.” Regarding women he said, "Yes I like women, so what?" he asked. "For years, there's been talk of photos of a giant orgy, but I've never seen them come out." He also seemingly prophetically proffered a hypothetical situation of something that could destroy his efforts: "A woman raped in a parking lot who is promised half a million Euros to make up her story."

Now I am not saying that he is guilty or innocent, but the timing, the methods and the circumstances are extremely convenient and coincidental. Not to mention there are a host of folks who would benefit from his being incontinently occupied in the US criminal justice system.

Sarkozy: If you follow French politics or even read an online version of their major papers, it was no secret that the current President was in the market for collecting any information or dirt that could be used to discredit Strauss-Kahn. And given the well sustained notion that he loved the ladies, his affair with an IMF economist (Piroska Nagy) and alleged assault on writer Tristane Banon, fabricating an assault based on past events could be easily accomplished, especially with the resources and connection one gets as President of France. Not to mention no telling what he discussed with President Obama when President Sarkozy and his wife, Carla Bruni-Sarkozy, were having that cozy dinner in the White House last year. It should also be remembered that it was president Obama who helped France assume a more prominent role in NATO’s military command structure.

China, Brazil or Turkey: When we think of the IMF, what is known is that traditionally, the head, just as Mr. Strauss-Kahn is a European. The number two is most always and American. With the increasing wealth and might of once developing nations like China and Brazil, the pressure has been growing for the next leader to be from one of these emerging market economies. And as with Sarkozy, with the resources and connections as the above have economically, anything is possible. Lipsky, the American in the number two spot has indicated that he planned to leave the IMF before the year is out meaning, both the top two positions may be open. We must recall that it was earlier this year when the IMF via the number 2 man John Lipsky said that China, Brazil and other fast-growing nations were “growing too fast.” Brazil and some other nations in return raised taxes on foreign investors attempting to slow inflows of investment money and ward off inflationary pressures. This position was reiterated last week by IMF Western Hemisphere Department deputy director Miguel Savastano. No doubt anyone of these nations would love to see Mr. Strauss-Kahn out of the way.

JP Morgan: Now JP Morgan is a metaphor for US banking interest and can stand to represent Goldman Sachs or Merrill Lynch as well. As I noted prior, the number two is an American and the current Yankee in this position if former JP Morgan banker and US Treasury executive John Lipsky. Like I said, Lipsky said he was leaving, but if he doesn’t he may move up front and have his fingers on the bailouts established by Strauss-Khan for Greece, Ireland and Portugal. Many in America thought that Strauss-Khan showed too much favoritism to Greece. Maybe some big bankers on Wall Street hoped that the arrest of Strauss-Kahn would derail the current austerity approaches the IMF has implemented across Europe. We know where the American banking Industry and Wall Street stand – neither has ever said anything complimentary of the IMF’s bailout, especially related to Greece. Just last week The Wall Street Journal reported that a new $86.1 billion bailout from the European Union and the IMF would be given to the Greek to continue assisting in the nations efforts to restructure its debts.

In summary, all I am saying is that this has the potential to be one of the biggest political gadfly’s ever. The entire world of global finance and French politics were aware of Strauss-Kahn's weakness – his affinity for women. Strauss-Kahn denies the charges. Truth is in France both consensual extramarital sex and having a mistress isn’t big news. But I do know that this is all too easy with the facts thus far which are:

• A Woman who said Mr. Strauss-Kahn sexually assaulted him selected him
  Out of a line up.
• The alleged victim, a 32 year-old African Immigrant was led out of
  Police headquarters with a blanket over her head
• Mr. Strauss-Kahn called to see if he left his cell phone (which he had not)
• Police coached person taking the call and instructed them to falsely
  State that his phone was indeed at the Sofitel.
• All involved were coached by police, workers of the Sofitel
  

Now Im just thinking outloud, with shows like NCSI and criminal Minds on televison, who am I to say a set up, based on a well documented history of behavior by a one Dominique Strauss-kahn could not be accomplished. I mean any maid, if they were in his room, has acess to DNA if he was or was not in the rom at the time. It is just as easy for a woman to swipe hairs off of the sink, floor, or lay in the bed or even take semen from a condom in a garbage can. Now I offered a few folk who may be interested in a frame up of dude, but more importantly, Im saying I find all of this dificult to believe - I have seen the true life shows where one hair with DNA can send a man to jail for life, even if innocent. Again connubial issues aside, this just don’t seem right – I’m just saying.

America: The Best Government Money Can Buy

These gas prices are kicking all of us in the rear end. Many blame the President, others commodity market speculators and still others OPEC. But they all are off from the way I see the issue. The real issue and the culprit is the US dollar. Specifically, its reduced value and purchasing power.

It seems almost intentional, avoiding the declining value of the dollar for the pricing increases we are seeing in everything from oil to food to gas. Politicians seem to just want to exploit the issue by appealing to popular sentiment. The fact is that the US dollar continues to hit record lows against all major foreign currencies especially the yuan, Euro and the Yen. Add to that the recent IMF findings that China’s economy will surpass that of America in 2016, it is more that meets the eye when speaking about the rising cost of gas. Why? Because we are not going through a recovery as the government suggest but rather a debt spending boom based on the home buying explosion of years past.

Truth is US household debt reached a high in June of $8.7 trillion, and with rising unemployment and no economic growth, it is reflected in the reduced value of the dollar. Such impacts negatively US Treasuries especially since now the Japanese government will need to sell its US Treasuries to deal with and pay for cleaning up and rebuilding after the Earthquake. Add to this gumbo China, which has the largest dollar surplus in the world, saw it foreign exchange reserves increased by 197.4 billion U.S. dollars in the first three months of this year to 3.04 trillion U.S. dollars by the end of March.

Now back to oil and gas. In simple terms, the weakness in the US dollar is causing everything to go up. This in an environment in which the rate of new debt growth among families is growing and the overall US manufacturing economy declines. This inherently impacts the dollar since what politicians ignore in their budget and deficit battles is the fact that US trade deficits and the Dollar System are connected.

Historically, in 1944 the Bretton Woods agreement solidified the dollar as the preeminent world reserve currency, defining the dollar in value to be 1/35th of an ounce of gold. In 1971, when President Nixon refused to pay out any of our remaining 280 million ounces of gold, he made the dollar what is today.

Oil is a critical economic and strategic resource and since it is traded in US$, when the US$ weakens, in terms of any other major foreign currency, the countries exporting oil get less. Thus when the dollar goes down in buying power they ask for more US$ for a barrel of oil. This gets even trickier since there is no shortage of oil via production currently. But what they see is our economy, let us say compared to a China which by estimates will expand from $11.2 trillion this year to $19 trillion in 2016, while the U.S. economy will rise from $15.2 trillion to $18.8 trillion. Strange, since it was just a decade ago when the U.S. economy was three times the size of China’s.

All I am trying to say is that the America we once knew with the all powerful dollar bill isn’t the same. The fact is that we have a surplus of oil and that we are not refining gasoline/ In addition, what we are seeing is the impact of a weaker dollar on oil demand in non-dollar economies. Oil producers sell their products in dollars. The dollars they get are used to buy other stuff around the globe. If it cost them more dollars to do so then they have to sell their oil for more dollars.

And as long as the U.S. Dollar is continuously devalued (inflated) by Federal Reserve and U.S. government monetary policies, oil producing nations will lose money if they don’t raise the price.

Yep the problem is our government and our monetary policies. The dollar may never be the same. Yet all the time wall street, big oil companies and politicians are getting richer as the sell all that made America great away to corporations and other nations through our monetary policy. Yep, that’s America; the greatest and best government money can buy.