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Elaine, it will be interesting to see what happens in the markets on Monday when Bush unveils his proposals calling for more power for the fed to provide financial market stability, with more rescue packages not only for the banks, but also now for the homeowners........... and yet no mention of reining in the securitization of subprime mortgages and tighter regulation, very strange. I will be watching what the dollar does. It didn't drop when Bernanke called for swapping bonds for the toxic subprime and lowered the fed funds rate 75 basis points two weeks ago. Will there be more worldwide central bank coordination to prop up the dollar? And are we heading for a one world currency or World War III?

Elaine Meinel Supkis

The G7 are doing this in concert. The problem: the other G6 are DESTROYING our economic base. So they want this destructive status quo and most Americans want this destructive status quo but REALITY won't allow this to run much longer. We can't take on infinite debts or run infinite trade deficits forever.


The financiers have been planning this destruction of our industrial base and white collar job outsourcing for a long time. Greenspan talked about no manufacturing in the US to Congress around six years ago. His crony and fellow reserve board member, Alan Blinder, at the same time was projecting the outsourcing of around 50 million jobs in the US, 15 million manufacturing and the rest white collar or about 30%-40% of all current US jobs by 2015.


Greenspan said it didn't matter if we had minimal manufacturing in this country as long as we had a "reliable source of manufactured goods". Blinder, a former vice-chairman of the fed, was calling for drastic interest rate cuts for the last 6 months and recently praised Bernanke for his handling of the financial situation. To me, it appears the standard of living for most of those in the US and that of most of the people on the planet is being orchestrated down as the the elites and bankers around the world attempt to expand the global economy and enrich their own personal wealth.


I think most Americans are now starting to realize what's going on and will not tolerate more of this global wage arbitrage. Unfortunately, they don't seem to understand that our present leaders and the leading presidential candidates are planning on continued massive deficit spending programs which will cause increasing trade deficits and expedite more outsourcing and probably a continuous slide in the dollar. I don't see any state of the art manufacturing plants being built in Detroit, Cleveland, or anywhere in the US for that matter to put our people back to work instead of further into debt. The implication by our leaders is that debt doesn't matter which could lead to WWIII.


Elaine, your posts are amazing.
Thank you, for all your effort and insight.

Crimson Ghost

In case anybody doubts that all Fed governors are Jews here it is right from the horse's mouth.


Crimson Ghost

Members of the Board

Ben S. Bernanke
Donald L. Kohn
Vice Chairman
Kevin M. Warsh

Randall S. Kroszner

Frederic S. Mishkin

Elaine Meinel Supkis

People will do anything to keep a status quo going. This is a harsh lesson for us. Changing any status quo is very dangerous.


I read this interesting tidbit about Obama and Clinton backers: Sen. Obama brings Penny Pritzker in. Ms. Pritzker is currently the good Senator's National Finance Chair. Ms. Pritzker was the captain of the boat when Superior Bank tanked back in '01. How much did that cost the taxpayers? We know that it cost the depositors of Superior at least $50 million that they will never see despite the fact that the Pritzker family is worth somewhere in the neighborhood of $30 Billon of which roughly $2 Billion is Ms. Pritzker's personal wealth.

Sen. Clinton brings in JB Pritzker - Ms. Pritzker's younger brother. Mr. Pritzker is currently a spokesperson for the Clinton campaign.

You all know the Pritzkers whether you know them or not. Hyatt hotels, Marmon Group, TransUnion Credit, etc. If I remember correctly, Thomas Pritzker appeared on stage at a fundraising event with David Marriott and President G.W. Bush a scant four months after the FDIC placed Superior Bank into receivership.

Sen. McCain has Phil Gramm in his camp. In addition to being in the UBS ranks, we've got both him and his wife tied to Enron in at least two different ways, Gramm-Leach-Bliley and...Ok..I can't take anymore...

Here's verification on the Pritzker's:
Features > November 8, 2002
Breaking the Bank
By David Moberg
After federal regulators closed the $2.3 billion Superior Bank in July 2001, investigations revealed that the suburban Chicago thrift was tainted with the hallmarks of a mini-Enron scandal. New legal developments are adding additional twists, including racketeering charges. And yet the bank’s owners, members if one of America’s wealthiest families, ultimately could end up profiting from the bank’s collapse, while many of Superior’s borrowers and depositors suffer financial losses.

Warring Pritzker Clan Splits its Ticket: Obama v. Hillary


Volcker talks about the collapse of Bear Stearns and the role the central bank has played on Charle Rose March 18, 2008.


Dear Elaine,

Did you read about UBS reducing the value of ARS securities in clients accounts by 5% on Friday? Ordinary investors considered these to be liquid and safe, but instead UBS froze them for a period of time and then marked them to market, thereby making them poorer overnight. This has gotten little press. To me, this is very serious. In the olden days, this is how a run-on-the-bank started. I find the whole thing fucking outrageous. None of these investment banks come clean on their level 3 but haircut their clients if necessary. This could be why Paulson was talking about FDIC insurance this week. This whole thing makes me sick. Burn down the house. Burn it.

Spitting fire over here,


Elaine Meinel Supkis

No, I didn't notice it but very lightly in the stream of news.

About all the candidates: anyone who was anti war or non-corporate was winnowed out by the media long, long ago. I lamented this during the entire process. This was entirely the fault of the media. A shameful, shameful thing indeed.

Elaine Meinel Supkis

I just located the UBS story that appeared only a few hours ago.

As I keep saying, real investors are being sheered like sheep. The processors and handlers still keep their loot. If I have any advice for investors: SUE THEIR ASSES OFF! Sue the managers who got record bonuses.

Those bonuses are YOUR MONEY.


I choose to simplify it for myself ( for obvious reasons ) Obama is from Chicago-- Stinks of the Vatican. Clinton, New York--that explains itself.Either way with commodity prices, we are headed for a 'Green Revolution' which is a disguise for Social Communism. No Candidate running can hold office unless he or she is 'blackmailable'. Sorry to break your hearts. Maybe Jesse Ventura will run?


Mmmm, seems like these guys have hired Mugabe as full time consultant on how to devalue currency and get spectacular gains in the stock market.

Market Watcher

Well-done essay. Quite accurate description of the situation in my opinion.

In an earlier post I mentioned that fixing the situation requires interest rates above the real rate of inflation, which is about 10% at this time, and import tariffs. These two necessities are just about politically impossible. Truly I am a mouse talking about belling the cat.

There is a third requirement, which I believe is completely impossible although vitally important. There has to be some sort of net worth, that is, wealth, tax. The income tax as it is currently structured taxes wages and salary income, essentially, only. This means that the truly wealthy are not taxed on their wealth at all but only on whatever current income they decide to draw from their wealth to pay day-to-day expenses and to gratify personal whimsy (while everyone else gets the hammer). Most of this wealth is controlled by trusts and corporations controlled by wealthy individuals. These trusts and corporations own stock or other legal and financial structures domiciled in what you describe as "pirate havens". The result, as Warren Buffett has pointed out, is that the truly wealthy are not taxed on their wealth while us poor schmucks most certainly are.


Elaine, another great article with lots of 'tie ins' that help folks understand how the 'chicken shit' system is designed to rob and plunder the working stiffs who really pay all the bills anyway.

Now I have a couple of questions for all the bleeding heart liberals, hard core conservatives, multiculturalists, and anti-Christians....Knock, Knock. Who's there?
How will we ever get all the non native, non Americans, anti-Western folks who live in America to join those who understand and value our history to assist us in the overthrow of a regime 'they' think benefits them?

'They' will be used against us at the voting booth and in wage suppression and ultimately by the coming police state as our oppressors. Native, Euro-Americans may become the 'new' Jews right here in Amerika.


I have been saying exactly the same thing, Market Watcher.

Elaine Meinel Supkis

All people of all cultures can drink the wine of democracy and enlightenment if this is possible and desirable. But if the wine is poisoned, they can't.

Liberalism of the classic sort is a hard-won thing. Even as our Founding Fathers struggled with the concept, some of the greatest revolutionary liberals were also SLAVE OWNERS. This clashed greatly with the rhetoric.

Democracy weakened and died in ancient Greece, the land of the greatest thinkers and creators for thousands of years! This died because of SLAVERY. Democracy in Rome died for the same reason.

Today, we are endangered by our own slaves. But not because the slaves are evil, but because SLAVERY is evil. The desire for cheap labor in cruel lands has undercut the working classes own lives. The illegal aliens flooded this country and provided convenient cheap slave-like labor in the last 10 years, for example.

If these semi-slaves are 'bad' for America, it is NOT THEIR FAULT. It is the fault of their exploiters who are now bitterly complaining that they can't find good, cheap labor. Even as inflation batters us.


Elaine....your last comment is very insightful. Labor is a commodity. Labor is bought and sold in the market place just like any other commodity. "Illegals" sell their labor cheaper. Like any commodity in the market place the "illegals" labor competes with the "legals". Inflation cheapens our labor even more. Though some are treated better by their owners (paid a higher wage) it is because their labor brings a higher price in the market place. Sadly, however, they are still "wage slaves".


a mutual fund manager I know of, had this to say:


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