Household Bailout Stimulus
Snapshots Of The Devivatives Crash UprampPART ONE
29 September 2008 Millions of angry citizens shouted and screamed into Congressional staffer phones and emails. 228 of the House's Anti-Constitutional Criminals -- Republinazis and Demofascists -- splashed their lily-livered cowardice on the no-vote to use $700 BILLION of the citizens' money to bail out financial corporation criminals.
The Dow Jones plummeted 777 points -- a one-day all-time record -- amounting to a value loss of $1.2 TRILLION to investors. The plunge demonstrated the depth of fabrication masking the over-valued bear market.
The amazement that angry citizens still had any public-opinion power over the Anti-Constitutional Criminals of the US House was epidemic everywhere Americans gathered. The shock and surprise lasted into the wee hours of Tuesday.
As usual, the 3-branch fascist despotism masquerading as our national govt has ordinary Americans looking at our big problems only from the govt's and the predator elitists' point of view.
We the sovereign people need to turn that around -- right now. We need to start seeing things from the ordinary people's point of view. Our survival in the very probable, near-future, derivatives crash and its consequent world-wide depression is at stake.
Thanks to the greed of the financial division of predator elitism, the global derivatives market is a monster of $677 TRILLION OUTSTANDING, jumping up and down on a annual gross world product of a mere $65 TRILLION. (Both totals are as of the end of 2007, according to the current quarterly report of the BIS -- Bank of International Settlements in Switzerland -- which is the top of the global central banking heap. See especially, "A dangerous bubble of derivitatives trading", Times of India, 29 September 2008.)
That is, 967 units of $700 BILLION each will fit inside the total of outstanding derivatives, the overwhelming majority of which are a house of obscene-profit cards already falling.
It is self-evident that the high risk derivatives market is crashing. Bear Stearns, Lehman Bros, and Merrill Lynch didn't slide away accidently. The US subprime mortgage derivatives and even-worse toxicities are laced through packages of other more-common and more-traditional derivatives sold all over the world. All such packages are now "toxic paper". Whoever holds those packages loses on the face value. And, because of the CYA complexities built into some toxic paper, it is even impossible to know the value of many of those packages.
It seems ridiculous to think or imply that a mere $700 BILLION put into the hands of the wrong people -- US-based criminal financial corporations and the unconstitutional, mega-felonious Federal Reserve -- will prevent the derivatives crash.
A $700 BILLION bailout for US-based criminal financial institutions won't save anything worth saving. We can't stop the corporate losses undoubtedly sweeping us into a world-wide depression. But we might be able to save what's worth saving -- ordinary families, ordinary people, and their ordinary homes.
30 September 2008
Charging back, the repudiated, castigated, and castrated national political leadership hollered everywhere that not letting them have their way would freeze credit, collapse international markets, and end the American national economy. Fear sells. More fear sells anything.
However, the list of their fear facets is surprisingly short and thin.
You've got your need for speed. Leadership needs this bailout done immediately so that the country does not go into some really bad financial stuff before the wonderful people in leadership can persuade the public to do the bailout anyway.
The word, 'depression', is never used. The notion that a leadership breast-fed bailout is inevitable reverbs all over the place.
The longer we delay the $700 BILLION bailout, they say, the more bank failures will happen. We've got to get this bailout back on track -- immediately. It's really important to save criminal banking operations. We've got to help banks rid themselves of toxic paper -- immediately. We've got to unfreeze credit so that businesses can conduct normal ops -- immediately.
Wow. They really got that credit freeze up and running in a hurry, didn't they? It's leadership flashing the old "just saying a thing makes it so", double-whammy, fiction parading fiction.
Playing the social engeneering card, leadership and their brother elites warn that no rescue means job losses, personal financial security gone, no new school clothes next year, and really losing out to the Joneses.
Listen up, people. You're locked into a carefully crafted social engineering that the superrich have spent a lot of money on. You think those corporate payrolls come cheap? Don't go getting all uppity on us now. Where's your appreciation, your loyalty, your patriotism? Now, you just do what we say, and everything will be OK.
Here's what's on tap for the Wednesday Strategy. We'll get everything together for an evening vote in the August Leadership's Very Own Senate. Watch out. The big dawgs are gonna tell you like it is. The scruffy little lap-yappers over there at the House need some guidance.
Oh, no -- we're not going to start from scratch to do some silly household bailout stimulus. We're gonna super-tweak what the House bombed with and show you how its done.
We just need to add some little things so that the few votes that we were short over there come winging home, putting exactly what we want in the old law books.
These aren't your little baby half-step tweaks. These are big honkin' 18-wheeler tweaks. They're gonna make Senators salvinate all the way to the trough. We're gonna slap on an already-passed Senate bill that helps develop renewable energy -- you know, maybe in the next hundred years. That bill also shields lots of the right people from the Alternative Minimum Tax. And best of all, it extends a number of inconsequential tax cuts for families, as well as stupendous tax cuts for all the right people in business.
These tax incentives are wonderful stuff. Of course, the lap-yappers over at the House might have some trouble understanding, but, by Gawd, we'll show 'em how its done here in the Senate. They'll just have to keep up.
'Course, the two really big biggees were flown in special by party Poo-Bahs and Diebold Selection candidates McCain and Obama. Singing in unison in the Well, they demanded that all the Senators should vote that the FDIC protection cap on the superrich's bank deposits go up from $100,000 to $250,000 per account.
And then, in two-part harmony, the Bobbsey Twins demanded that accounting rules be liberalized for corporations holding toxic paper so that numbers can be massaged immediately, showing that global frauds are really not so bad afterall. Sure, 65 Reps and Senators demanded last week that SEC suspend the accounting rules indefinitely, so the Senators are used to thinking in those terms. And, sure, the SEC has already "clarified" the accounting rules' instructions, watering them down to way outside the letter and spirit of the law, but this is different. This is the big-dawg, by Gawd, Senate.
Why more rewards for the superrich, you ask? Dude. The taller FDIC cap means that the superrich can take all those piddling little $100,000 accounts, combine them into many $250,000 accounts, and get new loans based on the new equity. Never use your own money -- for anything. And when the superrich have the new loans, ordinary people from coast to coast will have the wonderful trickle-down.
Let's see. That old saw still works, doesn't it? Oh, yeah. There it is. The guy on Fox News just said it -- "trickle-down".
Now, the FDIC cap and accounting rules set-aside aren't the only growth items we've got working for Progress over here in the Senate. We'll also ratchet up the votes with provisions to suspend capital gains and reduce corporate income tax. Those are perennial vote-getters.
Demofascist Marcy Kaptur (OH) wants to set up an emergency financial crimes office. Haw-haw. Talk about your auto-marginalized bullshit. As if Justice would ever prosecute criminal acts perpetrated by the superrich and their bankers. That's rich. But it'll get us votes that the lap-yappers didn't get.
Check us out Wednesday night. We'll get this $700 BILLION baby passed and fire up the House for Thursday action.
Getting it? The Senatorial tweaks -- and the votes of a few bought-out, sold-out fascist-thug Senators who routinely chop away chunks of the Constitution -- reflect how much public opinion really means in this country.
01 October 2008
Richard C. Cook is a retired US govt analyst. Late of NASA, he blew the whistle on the 1986 Challenger disaster.
Today, The Market Oracle, a web site in the UK, published Cook's amazingly well-informed and commonsensical, "Bailout Bill Marks the End of America as We Know It?" (It follows that a piece that informative of the US economic direction would not, could not, be published in the US. The Bush-Cheney nazis would never allow it, and would severely punish any American mainstream publication with any connection to it.)
Cook writes, in his intro paragraph -- before unpacking the progression of facts, related truth statements, and sound arguments which end in credit being the last economic engine of the American economy, and that engine being doomed in recession ebbing into depression --
"The Senate took up the [bailout] bill in order to pressure House members who voted against it to change their positions when it returns to a vote on the House floor on Friday. This procedure may be unconstitutional, because revenue bills must originate in the House, but there is no time or political will for anyone to mount a challenge on constitutional grounds. ..."
Senate Origination Of
Bill For Raising Revenue
Constitution, Article 1 (Legislative Branch), Section 7, Paragraph 1: "All bills for raising revenue shall originate in the house of representatives ....".
On Wednesday evening the Senate voted 75-24 to originate and approve the raising of $700 BILLION for the derivatives toxic paper bailout of banks and other financial institutions. The vote was unconstitutional. Every Senator who voted in favor is in violation of his or her oath to uphold the Constitution -- and we can hold every one of them responsible for knowing it. Every Senator who voted for this unconstitutional legislation is a Constitutional Criminal.
Additionally, the vote was a felony against our laws. All American citizens have the right to be governed by law that is passed in accord with the Constitution. The Senate's unconstitutional vote Wednesday evening is a felony conspiracy in violation of federal statute 18 USC 241.
18 USC 241: "If two or more persons conspire to injure, oppress, threaten, or intimidate any person in any State, Territory, Commonwealth, Possession, or District in the free exercise or enjoyment of any right or privilege secured to him by the Constitution or laws of the United States, or because of his having so exercised the same ... They shall be fined under this title or imprisoned not more than ten years, or both ...".
The ten-year sentence makes violation of this statute a felony. Felony forfeits all immunities -- legislative, executive, and judicial. Every Senator who voted aye on Wednesday evening can be arrested anywhere he/she is found -- in the Senate or anywhere else -- jailed, criminally prosecuted, convicted, fined, and imprisoned for up to ten years.
Constitution, Article 1 (Legislative Branch), Section 6, Paragraph 1: "... They shall in all cases, except treason, felony and breach of the peace, be privileged from arrest during their attendance ...".
Every one of those Senators is a co-conspirator in this felony conspiracy to force American citizens to live under law not passed in accord with the Constitution.
If our Constitution and rule of law were intact and functional, the felony conspiracy would be criminally prosecuted. Seventy-five US Senators, including the two Constitutional Criminals who are standing for election to the presidency next month, are felons-in-waiting, whose only proper place is in federal prison.
Of course, the 3-branch fascist despotism masquerading as our national govt has trashed the Constitution and our rule of law. They and all their superrich cronies are above the law. They've done those things in plain sight of all Americans. And they've gotten away with it. Not a single one of those Unamerican Anti-Constitutionalists has been arrested and criminally prosecuted. The American people are just too ignorant of their Republic's principles and history to be distracted from their sex, lies, and video tape.
So a bunch of guys died in WW2 fighting fascists. So what? Somebody get me another brewski.
Those of us who want our Constitutional Republic-Democracy back are in a pressure cooker. The 3-branch fascist despotism and the predator elites have taken away all the safety valves for change -- including elections. Some small committee of the superrich will say who will win the Diebold Selection of Presidential Usurper for 2008. Will it be Constitutional Criminal Obama or Constitutional Criminal McCain?
The fascist thugs of the 3-branch despotism and the other predator fascists continue to crank up the heat on this pressure cooker. It's the formula for pressure-cooker blowup. And the first ones to die will be the fascists' only real problem -- those of us inside the pressure-cooker. Dead men wreak no justice.
The fascist thugs of the 3-branch despotism know their Americans. Most just don't give a damn what the govt does. Most Americans are so ignorant of our Constitution and laws that they are fascists themselves, completely free of any beliefs that might put them in the pressure-cooker.
Bail out a bunch of fraud-perpetrating financial corporation crooks? No problem. Just let us get back to our rap music, raves, and crack cocaine.
When the nazis of the 3-branch fascist despotism crash the national economy into the three-pot-pie of the North American Union and its Canadian-US-Mexican "Amero" -- and open up the Halliburton concentration camps for American political criminals -- American fascists everywhere will be astounded.
Now the revenue bill, unconstitutionally originated in the Senate, goes off to the House of Representatives, where another pack of Constitutional Criminals will unconstitutionally vote on the unconstitutionally origianted bill. Every one of those "aye" House voters will become co-conspirators in the felony conspiracy directed at forcing American citizens to live under law not passed in accord with the Constitution. And, somewhere down the road, we'll put all of them in federal prison, too.
Most Americans protesting the passage of the bailout bill are too ignorant to know that it is purely unconstitutional. However, they do know that it is devoid of any direct help to ordinary American households. Protesters hit the House with sufficient threats of dis-election to cause the no-vote last Monday. There is a slight chance that the same millions of protesters can push the same buttons for the House's probable Friday night vote.
However, the reality of Diebold Selection at the polls also means that those Republinazi and Demofascist House reps who are in trouble in their home districts will be given promises of Diebold Selection in return for bailout-passing votes.
The bailout goes into the law books, I think, anti-law regime that it is.
The resulting law, after it's signed by the Presidential Usurper and Constitutional Criminal Bush, will be anti-law, an unconstitutional anti-law regime. Every action taken under color of that law will be another felony conspiracy in violation of 18 USC 241, denying the people's right to governance by law passed in accord with the Constitution.
When there's no one around to criminally prosecute a felony in the jungle, does the falling tree make any sound?
03 October 2008
Of The $700 Billion Bailout,
263-171, By Felony Conspiracy
In The House of Representatives
No member of the House of Representatives can legitimately vote "aye" on any bill for revenue originated in the Senate. All such bills are absolutely unconstitutional. An "aye" vote on such a bill violates the member's oath to uphold and defend the Constitution against all enemies, foreign and domestic. An "aye" vote also violates 18 USC 241, making the member a co-conspirator in the felony conspiracy to force Americans to live under law not passed in accord with the Constitution.
BAILOUT POST SCRIPT
This is the difference between national American leadership and Unamerican Fascist power-holders.
National American leadership works within the Constitution and under the rule of law for the benefit of the majority of citizens, across the lines of race, economic standing, and social class.
Unamerican fascist power-holders -- who use lies to falsely posture themselves as American leadership, see especially the presidential campaign materials and statements of the twin Senatorial constitutional criminals and felons-in-waiting McCain and Obama -- -- work outside the Constitution and above the rule of law for the benefit of those superrich whites in the highest economic standings and in the highest social classes. They wage class warfare to redistribute wealth from the middle classes and poor to the superrich -- with no conscience of how their actions harm the middle classes -- all the while lying through their fascist teeth about how their actions are the best thing for everybody.
We've had no American leadership since before Reagan. Even then, what little American leadership we had was so overwhelmed by fascists in and out of govt as to be completely ineffective.
GW Bush is the first blatantly fascist power-holder in the presidency. Not only is he a Constitutional Criminal, but he is also a co-conspirator in the felony murders of our soldiers fighting in his unconstitutional and felonious, aggressive war in Iraq. That is, he is clearly guilty of over 4,000 capital crimes -- and still wrecking the Constitution from the office of president.
In comparison, his role as co-conspirator in the felony conspiracy to pass the $700 BILLION bailout of criminal corporations seems a trite and minor crime. However, many Americans emotionally believe, or hold intellectual convictions, that the toxic paper bailout is a rear-guard action to keep the fascist superrich in place until the derivatives marketplace can completely crash.
The subsequent worldwide depression will give Bush and his cronies the excuse they need to activate the secretly and deeply planned North American Union, wipe out the CANUSMEX borders, lose the US Constitution, and make billions of dollars in the conversion from the US Dollar, Canadian Dollar, and Mexican Peso to the Amero. They will undoubtedly improve on the billions of dollars made by the European fascist elites in the conversion from various national currencies to the Euro.
There is no doubt that a derivatives crash capable of causing a world-wide depression is coming. The value that can be known of the outstanding derivatives, $677 TRILLION per the current quarterly report of the Bank of International Settlements, is about ten times the $65 TRILLION value of the current annual world product and 967 times the US $700 BILLION bailout.
Additionally, there are trillions of dollars in globally-held CDSs -- Credit Derivative Swaps, aka, default insurance -- that cannot be accurately valued by anyone. The loose concensus of a total is $54 TRILLION, but nobody really knows. The failure of the Swaps market may very well be the bomb that is already bringing down the whole flimsy house of cards.
While the CDS market is wholly unregulated by any govt anywhere in the world, its pretend-self-regulation -- a thing demanded and pretended at since the 1870s by all laissez-faire corporate fascists as a rationale for keeping govt out of corporate money matters -- is about to run up onto its own contract settlement dates.
The CDS contract settlement dates are going to sort out the bunches of lies that Bush and his crony criminals around the world have been hiding behind for a very long time. They are also going to show with dramatic clarity why the need for speed caused the whole Congressional branch of the US fascist despotism to rifle-shot through a bailout revenue bill unconstitutionally originated in the Senate.
The contract settlement dates are 10 October 2008 for the Lehman Bros CDS contracts (calculated to be valued at $350 billion to $400 billion) and 23 October 2008 for the Washington Mutual CDS contracts.
Those dates are when the "ripple effects" of Lehman and WaMu failures come alive.
"Ripple effects" is the sort of nazi wording favored by corporate fascists, where words can diminish the global avalanche that will sweep us into the Great Depression II.
The avalanche effects springing out of the contract settlement dates will more clearly delineate the magnitude of the crashing credit market (derivatives), crashing equities market (stocks), and crashing currency market (dollar, yen, euro, etc.).
So far, we've just seen a couple tips of the proverbial ice berg. We know that derivatives are bad. Fraudulent subprime mortgages laced into packages with other derivatives have crashed some of the biggest financial institutions to ever exist, in and out of the US. We know that stocks on the NYSE have tanked 1400 points in the first five trading days of October 2008. On Monday and Tuesday, 06 and 07 October, the Dow lost about 883 points. On Tuesday 07 October, about 2800 stocks lost value, while only about 400 gained value. So equities are bad. The sum total of currency market crashing across the two contract settlement dates will tell us approximately how bad the currency market is.
Between litigation from the defrauded, job losses and consequent credit losses, the glut of home foreclosures reducing all home values, and the raw write-offs of bad debt, there is no chance that the financial fascists -- foreign and domestic -- can stay ahead of the worldwide depression curve.
Our fascist power-holders in the Congressional branch of the 3-branch fascist despotism have unconstitutionally given away $700 BILLION of our money -- and wasted a bunch of our time -- to save things that cannot be saved. Further, the bailout action has deprived us of the national discussion of how best to prepare for the coming depression. In doing these things, the Unamerican fascist power-holders have further betrayed country and ordinary people.
The American people have been politically defrauded. Still, we've had warnings deluxe for decades. We've massively ignored those warnings -- arrogant to the end in our belief that we have the best democracy -- that fascism can't happen here.
The fascist elites were not ready for the Great Depression of the 1930s. As a class, they were hurt badly. Just the advent of the FDR administrations -- pro-democratic, anti-fascist -- hurt them badly.
This time, they've had 30-40 years to wreck FDR's New Deal and to computer model what will happen financially as they make their moves. They're obviously convinced that they know how they can come out of the coming worldwide depression with their social, economic, and political power intact. What is happening would not be happening otherwise.
Nothing of significance in financial matters happens by accident to the global fascist elites. They are ethical morons, but they are financial geniuses. Anyone who believes that the derivatives crash is blowback is too naive to be in this world.
Global fascist societies -- the "secret societies" of the pooh-poohed conspiracy theorists -- from the CFR (Council for Foreign Affairs), to the Trilateral Commission, to the Bilderberg Group, have surely spent big money on supercomputer modeling the results of the derivatives crash. As a class, the fascist superrich are obviously ready for this coming worldwide depression. Clearly, they have no fear of the results. Clearly, they are not concerned with the welfare or survival of ordinary people -- except perhaps as corporate zombies.
We've just been unconstitutionally forced into losing another $700 billion for the greater glory and benefit of a few financial criminals.
Welcome to Diebold Selection 2008, where thumb-suckers across the country will go the polls for one constitutional-criminal/felon or the other.
NOTE: CDS contract settlements -- aka, CDS auctions -- are widely ignored by the fascist corporate media. Clearly, Bush and cronies do not want the public to know about this out-of-control, depression-capable factor. CDS settlements have a huge potential for financial violence. The settlements, triggered by various kinds of corporate failures that consequently violate the CDS contracts, are a large part of the current credit crisis. Any financial institutions who are partiies to those contracts might be legally required to settle their monetary obligations in those contracts on the settlement date, or go into failure themselves. Because of the nature of the CDS contracts, corporations frequently do not know what their cash liability might be. Consequently, all corporations with such CDS contracts at failed corporations such as Lehman Bros and Washington Mutual must build and hoard cash -- not lend it -- in case they are required to pay. If CDS settlements causes other corporations to fail, more CDS settlements are triggered in the failed corporations, causing a cascade of ever-growing currency requirements. And because the CDS market is global, the potential for losses in tens of trillions of dollars across many currencies is very high.
For more info, see especially --
"Of October CDS Auctions and Helicopter Ben", by Stephen Hsu.
"Another Reason for Cash Hoarding: Big Credit Default Swaps Market Test Imminent", by Yives Smith.
"Behind the Turmoil", by Elizabeth MacDonald
Last updated Mon 08 Oct 2008, at about 11:55am
© 2008 by Stephen Neitzke