The power of III

Summum ius summa iniuria--More law, less justice

18 December 2010

WikiLeaks cables: Bank of England Governor Mervyn King plotted banks bailout by four cash-rich nations

Wikileaks strikes again!

The governments, economists, and pundits said of the big crash of '08: "We never saw it coming."

  • “ The notion of a bubble bursting and the whole price level coming down seems to me as far as a national nationwide phenomenon, is really quite unlikely.” Alan Greenspan Fed Reserve Chairman, 2003
  • “ Housing activity will remain healthy for some time to come” David Lereah, NAR’s Chief Economist, 2005
  • “ The idea that we’re going to see a collapse in he housing market seems to me improbable” John Snow, Treasury secretary, 2005
  • “ It’s impossible for prices to go down this year” Garry Watts, Orange County Assoc of Realtors, 2006
  • "At this juncture, the impact on the broader economy and financial markets of the problems in the sub prime market seems likely to be contained” Ben Bernanke, Fed Reserve Chairman, 2007

Bank of England leader Mervyn King had a sophisticated picture months before the crisis in the Autumn of 2008.  Such intimate knowledge is probably (at least) months in evolution.  Intelligence is gathered, reports come in, bureaucrats analyze and advise, and conclusions are drawn.

You decide:  Is it incompetence of our leaders and their so-called "experts", or deliberate concealment?

What happened in the end?  How did they try to solve their insolvency?  Through Keynesian style looting of the people:  Money printing (quantitative easing = devaluation), government guarantees (on our backs -- the backs of the taxpayers), government takeover of private institutions (socialistic maneuver, again money to do so comes from us).  Government cannot do anything better than private industry for two reasons:  gross incompetence (no expertise), and no incentive (private industries are risking their own money, and their investors money, that they have to pay back with interest.  Government has no such pressure, although they will pay lip service to gaining a profit for taxpayers).

TARP was wholesale looting of taxpayers by government and federal reserve to help out cronies in private institutions like Goldman Sachs.  This is the essence of corporatism.  This is the antithesis of true free market capitalism.

What does this all mean for the American, British, and European taxpayer (those not in on the corporatist gravy train)?:

"Why make trillions when we can make...BILLIONS?"

“How I turned one million dollars of real estate into $25 in cash”, - Steve Martin.

“I lost a million dollars in the stock market.  I would have lost more, but that’s all I had” - Groucho Marx.

The same process took place in Europe on a smaller scale.  If the Bank of England Governor knew this much at this time, his Federal Reserve counterpart knew at least as much.

How long til ya declare independence and assert your right to Life, Liberty, and Personal Property?

via Karl Denninger's

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