Are You Ready for the Next Crisis?

by Paul Craig Roberts
Published: Oct. 26, 2009 – Infowars

Evidence that the US is a failed state is piling up faster than I can record it.

One conclusive hallmark of a failed state is that the crooks are inside the government, using government to protect and to advance their private interests.

Another conclusive hallmark is rising income inequality as the insiders manipulate economic policy for their enrichment at the expense of everyone else.

Income inequality in the US is now the most extreme of all countries.  The 2008 OECD report, “Income Distribution and Poverty in OECD Countries,” [ PDF]concludes that the US is the country with the highest inequality and poverty rate across the OECD and that since 2000 nowhere has there been such a stark rise in income inequality as in the US.

The OECD finds that in the US the distribution of wealth is even more unequal than the distribution of income.

On October 21, 2009, Business Week reported that a new report from the United Nations Development Program concluded that the US ranked third among states with the worst income inequality.  As number one and number two, Hong Kong and Singapore, are both essentially city states, not countries, the US actually has the shame of being the country with the most inequality in the distribution of income.

The stark increase in US income inequality in the 21st century coincides with the offshoring of US jobs, which enriched executives with “performance bonuses” while impoverishing the middle class, and with the rapid rise of unregulated OTC derivatives, which enriched Wall Street and the financial sector at the expense of everyone else.

Millions of Americans have lost their homes and half of their retirement savings while being loaded up with government debt to bail out the banksters who created the derivative crisis.

Frontline’s October 21 broadcast, “The Warning,” documents how Federal Reserve Chairman Alan Greenspan, Treasury Secretary Robert Rubin, Deputy Treasury Secretary Larry Summers, and Securities and Exchange Commission Chairman Arthur Levitt blocked Brooksley Born, head of the Commodity Futures Trading Commission, from performing her statutory duties and regulating OTC derivatives.

After the worst crisis in US financial history struck, just as Brooksley Born said it would, a disgraced Alan Greenspan was summoned out of retirement to explain to Congress his unequivocal assurances that no regulation of derivatives was necessary.  Greenspan had even told Congress that regulation of derivatives would be harmful.  A pathetic Greenspan had to admit that the free market ideology on which he had relied turned out to have a flaw.

Greenspan may have bet our country on his free market ideology, but does anyone believe that Rubin and Summers were doing anything other than protecting the enormous fraud-based profits that derivatives were bringing Wall Street?  As Brooksley Born stressed, OTC derivatives are a “dark market.” There is no transparency. Regulators have no information on them and neither do purchasers.

Even after Long Term Capital Management blew up in 1998 and had to be bailed out, Greenspan, Rubin, and Summers stuck to their guns. Greenspan, Rubin and Summers, and a roped-in gullible Arthur Levitt who now regrets that he was the banksters’ dupe, succeeded in manipulating a totally ignorant Congress into blocking the CFTC from doing its mandated job. Brooksley Born, prevented by the public’s elected representatives from protecting the public, resigned.  Wall Street money simply shoved facts and honest regulators aside, guaranteeing government inaction and the financial crisis that hit in 2008 and continues to plague our economy today.

The financial insiders running the Treasury, White House, and Federal Reserve shifted to taxpayers the cost of the catastrophe that they had created.  When the crisis hit, Henry Paulson, appointed by President Bush as Rubin’s replacement as the Goldman Sachs representative running the US Treasury, hyped fear to obtain from “our” representatives in Congress with no questions asked hundreds of billions of taxpayers’ dollars (TARP money)  to bail out Goldman Sachs and the other malefactors of unregulated derivatives.

When Goldman Sachs recently announced that it was paying massive six- and seven-figure bonuses to every employee, public outrage erupted.  In defense of banksters, saved with the public’s money, paying themselves bonuses in excess of most people’s life-time earnings, Lord Griffiths, Vice Chairman of Goldman Sachs International, said that the public must learn to “tolerate the inequality as a way to achieve greater prosperity for all.”[Public must learn to ‘tolerate the inequality’ of bonuses, says Goldman Sachs vice-chairman]

In other words, “Let them eat cake.”

According to the UN report cited above, Great Britain has the 7th most unequal income distribution in the world. After the Goldman Sachs bonuses, the British will move up in distinction, perhaps rivalling Israel for the fourth spot in the hierarchy.

Despite the total insanity of unregulated derivatives, the high level of public anger, and Greenspan’s confession to Congress, still nothing has been done to regulate derivatives.

One of Rubin’s Assistant Treasury Secretaries, Gary Gensler, has replaced Brooksley Born as head of the CFTC.  Larry Summers is the head of President Obama’s National Economic Council.  Former Federal Reserve official Timothy Geithner, a Paulson protege, runs the Obama Treasury.  A Goldman Sachs vice president, Adam Storch, has been appointed the chief operating officer of the Securities and Exchange Commission.

The Banksters are still in charge.

Is there another country in which in full public view so few so blatantly use government for the enrichment of private interests, with a coterie of “free market” economists available to justify plunder on the grounds that “the market knows best”?

A narco-state is bad enough.  The US surpasses this horror with its financo-state.

As Brooksley Born says, if nothing is done, “it’ll happen again.”

But nothing can be done.  The crooks have the government.

[PCR Note:  The OECD report shows that despite the Reagan tax rate reduction, the rate of increase in US income inequality declined during the Reagan years.  During the mid-1990s the Gini coefficient (the measure of income inequality) actually fell.  Beginning in 2000 with the New Economy (essentially financial fraud and offshoring of US jobs), the Gini coefficient shot up sharply.]

Source: http://www.infowars.com/are-you-ready-for-the-next-crisis/

 

Related:

UN Calls For Bank Of The World, New Global Currency

Obama to raise 10-year deficit to $9 trillion…

Banks paid billions in bonuses amid crisis…

US: Bernanke: “I Don’t Know” Which Foreign Banks Were Given Half a Trillion…

Cost Of Bailout Hits A Whopping $24 Trillion Dollars…

VIDEO – The US National Debt Road Trip

Ron Paul: Obama’s ‘goal’ is economic collapse…

The IMF Catapults From Shunned Agency to Global Central Bank

Bilderbergers want Global Currency Now

USA Sick and Ready to Collapse for Three Reasons (With Video)

Documentary – Monopoly Men, Federal Reserve Fraud, 1999 (47 min.)

Documentary – The Money Masters – How International Bankers Gained Control of America (210 min.)

Documentary – Preparing Americans for Hyperinflation

The End of Money and the Future of Civilization

The Rich Have Stolen The Economy


23 Comments on “Are You Ready for the Next Crisis?”

  1. Lynn D. says:

    A message to America from God Almighty:

    “You have sown much, and bring in little; You eat, but do not have enough; You drink, but you are not filled with drink; You clothe yourselves, but no one is warm; And he who earns wages, earns wages to put into a bag with holes.” Haggai 1:6

    “Behold, I will make you small among the nations; You shall be greatly despised. The pride of your heart has deceived you, You who dwell in the clefts of the rock, (re: Mt. Rushmore), Whose habitation is high; You who say in your heart, ‘Who will bring me down to the ground?’ Though you ascend as high as an eagle, And though you set your nest among the stars, from there I will bring you down,” says the Lord. Obadiah 1:2-4

    “Behold, I am against you,” says the Lord of hosts; “I will lift your skirts over your face, I will show the nations your nakedness, And the kingdoms your shame. I will cast abominable filth upon you, Make you vile, And make you a spectacle. Nahum 3:5-6

    “Because you have plundered many nations, All the remnant of the people will plunder you.” Habbakkuk 2:8

    “All your strongholds are fig trees with ripened figs: If they are shaken, they fall right into the mouth of the eater. Surely, your people in your midst are women! (effeminate, cowardly, men) The gates (borders) of your land are wide open for your enemies; Fire shall devour the bars of your gates.” Nahum 3:12-13

    “The Lord has given a command concerning you: “Your name shall be perpetuated no longer. Out of the house of your gods (false “christian” churches, both catholic & protestant), I will cut off the carved image and the molded image (false men’s teachings and traditions). I will dig your grave, (America/Babylon) For you are vile.” Nahum 1:14

    “For it is the land of carved images (materialism and false churchianity), And they are insane with their idols.” Jeremiah 50:38

    “O you who dwell by many waters, Abundant in treasures, Your end has come, The measure of your covetousness.” Jeremiah 51:13

    “Hell from beneath is excited about you, To meet you at your coming; It stirs up the dead for you, All the chief ones of the earth; It has raised up from their thrones all the kings of the nations. They shall speak and say to you: ‘Have you also become as weak as we? Have you become like us?’ Your pomp is brought down to Sheol (hades) and the sound of your stringed instruments; The maggot is spread under you, And worms cover you.” Isaiah 14:9-11

    “Sit in silence, and go into darkness, O daughter of the Chaldeans; For you shall no longer be called ‘The Lady of Kingdoms.’ ” Isaiah 47:5

    “The great day of the Lord is near; It is near and hastens quickly.” Zephaniah 1:14

  2. Lynn D. says:

    A message from God to the “Fed”, the NWO elite Rothchilds’ and Co. and all their greedy bankster puppets, media stooges, Hollywood mind-control mannequins and political bloodsuckers:

    “For My eyes are on all their ways; they are not hidden from My face, nor is their iniquity hidden from My eyes.” Jeremiah 16:17

    “Shall I count pure those with the WICKED SCALES, and with the bag of DECEITFUL WEIGHTS? For her RICH MEN are full of violence, her inhabitants have spoken LIES, and their tongue is deceitful in their mouth.” Micah 6:11-12

    “Woe to you who put far off the day of doom…..” Amos 6:3

    “Come now, you RICH, weep and howl for your miseries that are coming upon you! Your riches are CORRUPT and your (spiritual) garments are moth-eaten. Your gold and silver are corroded,(blood money from wars and theft) and their corrosion will be a witness against you and will eat your flesh like fire. You have heaped up treasure in the LAST DAYS. Indeed the wages of the LABORERS who mowed your fields (the world’s wage earners), which you KEPT BACK by fraud (illegal taxes, phony wars, usary, etc..), cry out; and the cries of the reapers have reached the ears of the Lord of Sabaoth. You have lived on earth in PLEASURE AND LUXURY; you have fattened your hearts as in a day of slaughter. You have condemned and murdered the just; He does not resist you.” James 5:1-6

  3. […] Are You Ready for the Next Crisis? […]

  4. […] Are You Ready for the Next Crisis? […]

  5. […] Are You Ready for the Next Crisis? […]

  6. […] Are You Ready for the Next Crisis? […]

  7. […] Are You Ready for the Next Crisis? […]

  8. […] Are You Ready for the Next Crisis? […]

  9. […] Are You Ready for the Next Crisis? […]

  10. […] Are You Ready for the Next Crisis? […]


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s