Black People : Arab journalist writes about the American Economy

Discussion in 'Black People Open Forum' started by Writspirit, Mar 20, 2009.

  1. Writspirit

    Writspirit Well-Known Member MEMBER

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    Death of the American Empire
    Tanya Cariina Hsu

    America is self-destructing & bringing the rest of the world down with it

    Global Research, October 23, 2008

    I believe that banking institutions are more dangerous to our liberties than standing armies. (Thomas Jefferson, US President)

    America is dying. It is self-destructing and bringing the rest of the world down with it.

    Often referred to as a sub-prime mortgage collapse, this obfuscates the real reason. By associating tangible useless failed mortgages, at least something real' can be blamed for the carnage. The problem is, this is myth. The magnitude of this fiscal collapse happened because it was all based on hot air.

    The banking industry renamed insurance betting guarantees as credit default swaps' and risky gambling wagers were called derivatives'. Financial managers and banking executives were selling the ultimate con to the entire world, akin to the snake-oil salesmen from the 18th century but this time in suits and ties. And by October 2009 it was a quadrillion-dollar (that's $1,000 trillion) industry that few could understand.

    Propped up by false hope, America is now falling like a house of cards.

    It all began in the early part of the 20th century. In 1907 J.P. Morgan, a private New York banker, published a rumour that a competing unnamed large bank was about to fail. It was a false charge but customers nonetheless raced to their banks to withdraw their money, in case it was their bank.

    As they pulled out their funds the banks lost their cash deposits and were forced to call in their loans. People now therefore had to pay back their mortgages to fill the banks with income, going bankrupt in the process. The 1907 panic resulted in a crash that prompted the creation of the Federal Reserve, a private banking cartel with the veneer of an independent government organisation. Effectively, it was a coup by elite bankers in order to control the industry.

    When signed into law in 1913, the Federal Reserve would loan and supply the nation's money, but with interest. The more money it was able to print, the more income' for itself it generated. By its very nature the Federal Reserve would forever keep producing debt to stay alive. It was able to print America's monetary supply at will, regulating its value. To control valuation however, inflation had to be kept in check.

    The Federal Reserve then doubled America's money supply within five years, and in 1920 it called in a mass percentage of loans. Over five thousand banks collapsed overnight.

    One year later the Federal Reserve again increased the money supply by 62%, but in 1929 it again called the loans back in, en masse. This time, the crash of 1929 caused over sixteen thousand banks to fail and an 89% plunge on the stock market. The private and well-protected banks within the Federal Reserve system were able to snap up the failed banks at pennies on the dollar.

    The nation fell into the Great Depression and in April 1933 President Roosevelt issued an executive order that confiscated all gold bullion from the public. Those who refused to turn in their gold would be imprisoned for ten years, and by the end of the year the gold standard was abolished. What had been redeemable for gold became paper legal tender', and gold could no longer be exchanged for cash as it had once been.

    Later, in 1971, President Nixon removed the dollar from the gold standard altogether, therefore no longer trading at the internationally fixed price of $35. The US dollar was now worth whatever the US decided it was worth because it was as good as gold'. It had no standard of measure, and became the universal currency.

    Treasury bills (short-term notes) and bonds (long-term notes) replaced gold as value, promissory notes of the US government and paid for by the taxpayer. Additionally, because gold was exempt from currency reporting requirements it could not be traced, unlike the fiduciary (i.e. that based upon trust) monetary systems of the West. That was not in America's best interest.

    After the Great Depression private banks remained afraid to make home loans, so Roosevelt created Fannie Mae. A state supported mortgage bank, it provided federal funding to finance home mortgages for affordable housing. In 1968 President Johnson privatised Fannie Mae, and in 1970, Freddie Mac was created to compete with Fannie Mae. Both of them bought mortgages from banks and other lenders, and sold them onto new investors.

    The post World War II boom had created an America flush with cash and assets. As a military industrial complex, war exponentially profited the US and, unlike any empire in history, it shot to superpower status. But it failed to remember that, historically, whenever empires rose they fell in direct proportion.

    Americans could afford all the modern conveniences, exporting its manufactured goods all over the world. After the Vietnam War, the US went into an economic decline. But people were loath to give up their elevated standard of living despite the loss of jobs, and production was increasingly sent overseas. A sense of delusion and entitlement kept Americans on the treadmill of consumer consumption.

    In 1987 the US stock market plunged by 22% in one day because of high-risk futures trading, called derivatives, and in 1989 the Savings & Loan crisis resulted in President George H.W. Bush using $142 billion in taxpayer funds to rescue half of the S&L's.

    To do so, Freddie Mac was given the task of giving sub-prime (below prime-rate) mortgages to low-income families. In 2000, the ''irrational exuberance'' of the dot-com bubble burst, and 50% of high-tech firms went bankrupt wiping $5 trillion from their over-inflated market values..

    After this crisis, Federal Reserve Chairman Alan Greenspan kept interest rates so low they were less than the rate of inflation. Anyone saving his or her income actually lost money, and the savings rate soon fell into negative territory.

    During the 1990s, advertisers went into overdrive, marketing an ever more luxurious lifestyle, all made available with cheap easy credit. Second mortgages became commonplace, and home equity loans were used to pay credit card bills. The more Americans bought, the more they fell into debt.

    But as long as they had a house their false sense of security remained: their home was their equity, it would always go up in value, and they could always remortgage at lower rates if needed. The financial industry also believed that housing prices would forever climb, but should they ever fall the central bank would cut interest rates so that prices would jump back up.. It was, everyone believed, a win-win situation.

    Greenspan's rock-bottom interest rates let anyone afford a home. Minimum wage service workers with aspirations to buy a half million-dollar house were able to secure 100% loans, the mortgage lenders fully aware that they would not be able to keep up the payments.

    So many people received these sub-prime loans that the investment houses and lenders came up with a new scheme: bundle these virtually worthless home loans and sell them as solid US investments to unsuspecting countries who would not know the difference. American lives of excess and consumer spending never suffered, and were being propped up by foreign nations none the wiser.

    It has always been the case that a bank would lend out more than it actually had, because interest payments generated its income. The more the bank loaned, the more interest it collected even with no money in the vault. It was a lucrative industry of giving away money it never had in the first place. Mortgage banks and investment houses even borrowed money on international money markets to fund these 100% plus sub-prime mortgages, and began lending more than ten times their underlying assets.


    Click link below for full article
    http://globalresearch.ca/index.php?context=va&aid=10651
     
  2. anAfrican

    anAfrican Well-Known Member MEMBER

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    finding a silver lining in anything!

    yeah ... "the head is dead, fred" .. now watch the eagle flounder around the planet getting blood all over everything!! and it prolly won't even make a good stewing bird!

    after reading that, i browsed around GlobalResearch.ca and ultimately found this:

    March 20, 2009
    Preparing for Civil Unrest in America
    - by Michel Chossudovsky - 2009-03-18
    Legislation to Establish Internment Camps on US Military Bases


    within this one, is a link to
    America's Fiscal Collapse
    by Michel Chossudovsky
    Global Research, March 2, 2009



    it's gonna get ugly!!

    and gun sales have been up since obama went into office???

    (guess i really gotta get busier with this homeless support program i live/volunteer with: y'all gonna need us real bad!!

    might this be the only growth industry left? possibly a "good" investment?? <grin> "you're just a homeless shelter volunteer; you ain't got no money!! what good is that?!!" being able to survive on nothing in this country might begin to look like a rather better "skill set" when looking over a fella, eh? :wink: :lol:)
     
  3. Clyde C Coger Jr

    Clyde C Coger Jr going above and beyond PREMIUM MEMBER

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  4. anAfrican

    anAfrican Well-Known Member MEMBER

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    it is interesting to note that, according to the originally posted article and the article titled "fiscal collapse" linked in my response, all of the actual resources and assets of this country have already been sold and the bailout is only paying to keep the purely-on-paper shell game going that the financial community has created to maintain an illusion of viability. in other words, "we" (our government) are throwing "our" (taxpayers) dollars down a black hole that is only further lining the pockets of "american citizens" that are busily embezzling the remainder of "our" (nation of america) money.

    (and the other article i linked shows that they recognize that, eventually, the american sheople will wake up and get pissed - there are already concentration/prisoner-of-war/refugee camps emplaced in this country to "deal" with your "complaints"!!)

    this country has already been sold and the new owners are prolly thinking of calling their debts due!!

    in truth, americans; you have NOTHING. you are actually a pauper nation in as bad shape as those "third world" countries that spend their days begging in the streets and staking out garbage heaps as a source of supplies.
     
  5. jamesfrmphilly

    jamesfrmphilly going above and beyond PREMIUM MEMBER

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    :SuN013: arabs can write?
     
  6. smalllady

    smalllady Well-Known Member MEMBER

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    :jawdrop:
     
  7. anAfrican

    anAfrican Well-Known Member MEMBER

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    apparently, they have one other, possibly, useful "ability": they can think, too!!
     
  8. jamesfrmphilly

    jamesfrmphilly going above and beyond PREMIUM MEMBER

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    you have evidence of this "thinking"?
     
  9. roarin1

    roarin1 Banned MEMBER

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    This is EXACTLY what's happened.

    All those westernized economist that beat around the bush in their nightly media sound-bites, are beating around this very bush.
     
  10. roarin1

    roarin1 Banned MEMBER

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    Eh, Bruh JAMES, because arabs are ultimately as caucasoid as their 'western brethren', who better than them (as in looking in a mirror,) to echo their dr. jekyll/mr. hyde 'dark side'?
     
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