Goldman Sachs: Traitors And Con Artists

Elaine Meinel Supkis

Goldman Sachs conspires to make themselves richer at the expense of the American economy. I collected a number of articles, most of which were sent by a group of wonderful readers who send me many links. Thank you! Goldman Sachs should be raided by the SEC and the Secret Service. Remember, the Secret Service was set up to go after counterfitters and fraudsters as well as tax cheats! And Goldman Sachs has taken over our entire economic and banking systems and are utterly destroying them and should be arrested and charged with treason. Alas, they have also taken over our election system via 'campaign contributions.'

From CNN:

The glitter is already coming off Goldman Sachs' golden quarter.

Goldman (Charts, Fortune 500) wowed just about everyone when it reported very strong earnings for its fiscal third quarter, a period when rival investment banks did poorly because of the steep downturn in bond markets, from which investment banks try to generate trading profits.

However, Goldman's blow out quarter benefited from large gains in hard-to-value financial instruments, and its trading results in the period were particularly volatile, according to data contained in a Goldman filing of quarterly financial results with the Securities and Exchange Commission.

Goldman Sachs controls our Treasury and quite a few aspects of the banking system and has a huge influence on more than one country's central banks. A Goldman Sachs man took over the banking system of Canada this week, for example. Just last month, Bernanke had a lunch with Paulson, the Goldman Sachs head of the Treasury. This meeting was all about Goldman Sachs screaming at Bernanke, 'There is BLOOD in the streets!' Bernanke, impressed by the tearful wails that the world was coming unglued, assented to a huge interest rate cut via selling securities to itself, thus causing inflation to rise and the dollar to fall against the euro. Paulson's further meetings and phone calls that day are not known yet but before anyone supposedly knew of the big rate cut/inflation creation announcement, Goldman Sachs drove up the stock market from minus 400 pts to above 100 pts in only one hour.

Goldman Sachs has always irritated me because they are the ultimate insider traders. This is why they spend so much bribing politicians as well as gaining access to the very innermost workings of the machinery of the banking and financial systems. They are not geniuses, they are conspirators.

When Goldman Sachs announced they had an amazingly profitable summer, I was astounded. Of course, their blasted stocks shot up in value upon this amazing announcement. How could there be blood in the streets if Goldman Sachs was doing just wonderfully? I was quite puzzled when they announced this so smugly. I decided, to cut to the chase, that they were lying. After all, these criminals lie all the time. They are such habitual liars that even if blood WAS running down Wall Street's gutters and they were standing in in their rubbers and umbrellas, I still won't believe them.

Misleading people about the true value of paper assets is a crime. We call this 'fraud' and people who do this, 'confidence men.' Confidence men take people into their confidence and then lie. Our entire economic system has been taken over by such people. Half of their system is self-delusional and half, plots to conceal and lie. They, themselves, can no longer see the difference and are now in the process of destroying themselves along with us all in the US/EU/UK empire.

I was very serious about suggesting HU of China get the Nobel Economics Prize. He seems to understand the true meaning of capitalism and is using it quite masterfully. In the West, the fondness for using game theory systems is exactly why we are screwing ourselves. Yes, people play these evolutionary-sort of games in the dog eat dog world of economic exploitation but this leaves out the accumulation of raw power whereby there is no 'game' in the sense that everyone is playing on a level field and using strategies.

Raw power means ruthlessly twisting any system to do as one wants no matter what. For example, whatever systems and customs are used to elect leaders and run democracies, they are constantly destroyed by raw power as the military joins with the rich to take over or revolutionaries make frontal, armed assaults on the system or assassins attack candidates, etc. I have played power politics in the past and know how that rather brutal game works. It isn't a mathematical formula. That works only when systems work.

So it is here: the mathematical formulas used in game theory and in expressing economic actions are beginning to fail as we approach those inevitable 'break points' whereby all systems suddenly shatter and a free-for-all ensues or a free fall occurs. I have looked long into the analysis of many such events in the past and so far, have discovered that no one ever agrees on what really happened. Even with the Great Depression, there is total confusion as to why this global recession caused the value of money to rise and prices of all assets and raw materials to fall. Our present head of the Fed wrote very astute papers on this very topic and quite frankly, didn't understand a thing because he looked at it with his microscope rather than a telescope.

From Bloomberg:

But that view could get revised, now that it can be seen in the numbers that a large proportion of its third quarter profits were 'unrealized' - i.e. paper gains, and not hard cash payments from fully closed out trades - and came from financial instruments that Goldman values largely according to its own estimates.

The game theory here is, 'If someone can unilaterally declare the value of assets, they will do this in such a way as to profit themselves.' Whenever anyone tells me something is worth $X, I usually tell them, 'It is worth only what someone will pay and that varies greatly.' Goldman Sachs was whining that they couldn't access 'liquidity' within the same time frame they then claimed they were sitting on a mountain of very valuable paper that people would be willing to pay lots of money for! If this were true, all they had to do was sell some of these papers if they wanted money. If I want money, this is what I have to do: sell either my labor or my stuff.

But they couldn't sell a thing. Since they could only sell at a loss or not at all, this meant their paper was worthless. Their stocks had been falling for over a month. They needed to bring the stock market back up and they needed to make their business look good. So they lied. To Bernanke. To the US people. To the world. The game theory stuff is silly if it doesn't include powerful people cheating quite blatantly and openly and often, violently. The governments of the world should be purged of all Goldman Sachs conspiritors. They have bent the world banking and trade systems all out of whack and they are responsible for the path the empire has taken. To line their own pockets and fill their own wallets, they have set up a system that must collapse, therefore, they are the agents of this collapse. Once Goldman Sachs got their paws on the levers of power, they yanked them in such a way, they would get richer no matter what.

Every sane person knows there are inevitable economic ups and downs. This is due to capitalism being a dynamic system. There is no way anyone can become constantly richer and never lose money. The desire of Goldman Sachs to do exactly that will create a depression. Depressions can last a very long time. This is when all systems get stuck on a steady-state that is around 0%. Look at Japan: that depression is entirely driven by the people at the top wanting to make money no matter what, while running a 0% system. It literally crushes people to death under such a regime. Japan's domestic economy isn't growing, only their export economy and the wealth of the elites running these Japanese export corporations.

Since Japan's depression is considered to be a gold mine by Goldman Sachs, they conspire to keep it going. This is why we never, ever see any calls to bring up the value of the yen.

From Bloomberg:

Citigroup Inc., the biggest U.S. bank, said mortgage delinquencies and consumer lending will deteriorate for the rest of the year after earnings fell 57 percent in the third quarter.

Citigroup had its biggest drop in more than a month in New York trading after Chief Financial Officer Gary Crittenden on a conference call said borrower defaults are ``accelerating.''

There are many economists who think that 'confidence' rather than 'confidence men' run our systems. Since money is created via magic wands waving and numbers appearing, all we need is to think positive. This bizarre idea mixing up cause and effect shows up clearly in the news this year: the men at the top are very confident and want to keep the ball rolling and the ball they are rolling is quite simple. It is debt. The more they put people into debt, the more money they 'create' or better still, 'capture' grows. As the capture more and more FUTURE finances (debt being all about future promises) the more they make via fees. So filled with confidence, these con men have shoved more and more future payments onto more and more payers. Addicted to this easy money, they went nuts and tried to shove it on everything and anything. It didn't matter how flimsy.

They ended up shoving it onto people who couldn't possibly pay in the future. I call these people 'dead beats.' Dead beats trail after con men, hoping to score a hit. They love it when con men go nuts and offers them free money. Since dead beats have no hope or prayer of repaying, they are quite happy to play with the free money and live it up even if they lose everything later. Losing everything is OK with them, the chance to live in a big house and drive a big car even if only for two years is very tempting.

So here we are: the entire banking system now rests upon a basis that expects these irresponsible people to pour future money into accounts held by these bankers. And this is, of course, failing. Never in my life have I seen so many people ask for loans and then default in less than two years. This default climb didn't happen after a grinding recession, it is CAUSING the recession. Statistics show that the defaults on these loans are not connected with the interest rates going up suddenly. They are happening while still under the super-low, sub prime teaser rates!

Goldman Sachs knows all of this. But they have to pretend to be clueless in order to sell their CDOs which are bonds for future payments on housing bought by dead beats who can't even afford teaser rates. And since everyone is lying, the buyers and sellers both lying, this leads to the inevitable collapse in confidence. Ergo: the system isn't based on people thinking confidently, it is based on TRUST. If everyone from top to bottom lies, the system collapses because everyone is cheating each other. This usually happens when the con men take over the banking systems and end rules set up in response to previous collapses.

From CNN Money:

In a speech to the New York Economic Club Monday night, Federal Reserve Chairman Ben Bernanke said the central bank's rate cut in September has shown signs of success, but cautioned that lenders and investors must bear responsibility for financial decisions that caused the subprime mortgage meltdown.

"Although the Federal Reserve can seek to provide a more stable economic background that will benefit both investors and non-investors, the truth is that it can hardly insulate investors from risk, even if it wished to do so," Bernanke said, adding that "over the past few months...those who made bad investment decisions lost money."

Bernanke is lying, of course. The only success of the rate cuts was to drive up the value of stocks while driving down the value of the dollar. Soon, Americans will be trapped in this country like the Russians under the Soviets because our currency will be so worthless, we couldn't eat or drink anywhere but at home. Our demented government hopes that the dollar will fall so far, the Chinese will cease shipping manufactured goods here. This certainly is one way to empty out store shelves but it also creates inflation. This is the trap we are in: if we make imports more expensive, we get inflation. This is because, the only way we could deal with energy inflation has been to import cheaper labor goods and outsource all our manufacturing jobs!

This is why inflation is now beginning to rage but mostly in the sector of 'must buy' items like food, fuel and medicine. To pay for these, people are not buying manufactured stuff. I do see lots of things on front lawns now with 'for sale' signs on them. I see more and more 'house for auction' signs and New York has been dead last in the collapse of the housing bubble.

Bernanke is also lying when he talks about creating a system that benefits investors (speculators) and non-investors. Always, when he can save speculators by tossing non-investors to the wolves, he does this. As for lenders paying the price: the president of Countrywide, Mozilla the Gorilla has not lost a penny. He has made over $400 million selling off his own stake in the company he is bankrupting! It is all the speculators at the bottom who are being burned, the ones who bought Countrywide stocks from him. Dropping interest rates doesn't fix all these losses. The people who couldn't afford their houses even at teaser rates and the investors who bought Countrywide stocks without knowing that the president was dumping them in order to get maximum profits since he could see the rising defaults before anyone else (there is a significant timelag difference). Everyone listening to Bernanke knows that the rate drop is a bandaid on a gaping wound and stocks will, like they did yesterday, begin a relentless fall, the con men simply needed some 'up market' time so they could dump lousy stocks. Goldman Sachs, for example, was so anxious to sell their stocks off, they openly lied in order to make it look like their company was healthy and strong rather than sitting on a mountain of toxic, dead paper that has little or no present value.

Now they want to shift their funds into speculating in raw material markets. They imagine the Asian powerhouse will continue eternally so the competition for raw materials will continue and they can all earn pennies on the dollars flowing through commodities. This is pure silliness, of course. As we go into an economic negative spiral, the value of all these things will drop, too. So basically, they want to jump from one escalator going down to one that is about to begin going down, too.

The entire concept behind banking from the start is the idea that one can put one's profits or wealth at the disposal of a banker who would then pay one 'interest' while re-investing this money as loans to other people who then pay this 'interest' which the banker shares with the depositor. This has totally collapsed in the last 35 years. People put their money in a bank and it LOSES value. And the people making money are the ones collecting FEES, not interest. And this is entirely the fault of the central bankers and the Treasury. They have tilted the playing field to benefit speculators and not depositors. This was shown clearly by Greenspan and now, Bernanke, deliberately throwing depositors looking for a fair return on their savings, under the wheels of Wall Street.

From Reutoers:

Central banks which signed the Central Bank Gold Agreement sold 475.75 tonnes of gold in the third year of the agreement ending September 26, said a statement released on Wednesday by the Bank for International Settlements on behalf of the signatories.

Also on Wednesday, Germany's Bundesbank told Reuters that it will hold on to the vast bulk of its gold reserves in the next 12 months, selling only enough bullion to mint coins.

In March 2004, 15 European central banks renewed a 1999 pact to limit their sales over a five-year period to 2,500 tonnes -- with annual sales limited to 500 tonnes -- up from 2,000 tonnes in the first agreement.

Central banks and the International Monetary Fund (IMF) collectively hold 30,374 tonnes of gold in their reserves, but have been gradually reducing their holdings.

It is amazing to see the price of gold jump from $250 an ounce to nearly $800 an ounce while the central banks conduct increasing sales. If they didn't do this, the price of gold would be over $1000 an ounce by now. Throughout the weak gold prices of the previous 20 years, the central bankers boasted that gold was worthless and useless as an investment and everyone should trust fiat paper money instead. To prove this, they kept the price of gold down by feeding just enough gold into the system to keep it static. Now, it is out of control because world inflation is out of control. Suspicious people are no longer holding fiat currencies.

I noticed this summer, the G7 dwarves decided to drive down the value of gold drastically. So they had the irresponsible International Monetary Fund declare that gold was worthless and even the Swiss decided to sell off ALL their gold in a mad demonstration that gold was worthless. So here we are: I suspect this was all aimed at one country and only one---RUSSIA. Russia is a major gold and energy producer. If gold climbs in value, Russia's FOREX and Sovereign Wealth Funds climb and Russia dominates Europe more and more. Instead of petting the Russian bear and giving it a jar of honey, the Europeans have been barking at the Russian bear and throwing missiles at it. So they are playing economic warfare.

This is why charts, graphs and magic number formulas are so useless. One should heed diplomatic dispaches and figure out what violent or sneaky imperial or international games are being played. Decoupling gold from wealth runs alongside the desire to decouple war and oil from inflation. I read so many professional commentaries that desperately use various game-based systems to prove there is no connection between gold and wealth and oil and war and inflation. For example, China's inflation is due to the rising cost of energy. And they buy from the same people who are right next to our oil wars in the Middle East. Turkey is about to go to war with the Kurds right in the middle of yet another oil field. The threat of this has already added another $5 to to price of oil and this causes inflation in China and the US and nothing seems to be stopping any of this since the US has decided to use extreme violence when it comes to diplmacy in the Middle East.

The economists want to decouple these things from the effects they cause because it enables them to keep on playing with their beloved formulas which are obviously falling apart under the hammer blows of history. Just for example, Europe's long climb out of the perpetual post-Roman Empire depression was based mostly on the invention of the cannon and then mounting it on ships and then going out and blasting their way across global trade, quite violently. It was a material conquest based entirely on military power. These imperial power plays collapse when the world's largest naval power goes bankrupt as we are going bankrupt.

Therefore, the chief chart, the main graph, the most important formula isn't all those piddling little things but the one that tracks imperial naval power, tax revenues and debt levels. The minute a naval empire starts running in the red, it is inevitable they will collapse within a 100 year time frame. We are now at year 35 of our total collapse. The Chinese are willing to wait another 35 years for the end result. I fear the US might push this time frame forwards via WWIII. This is because all naval powers hammered by bad debts and a collapsing economy usually lash out and try to lunge at all rivals and trade partners in the hopes of fending off financial collapse.

From Coin Inflation:

On September 13th, the U.S. Mint announced they were suspending Gold Eagle coin sales due to the recent rise in the gold price. And just recently, the Buffalo Gold coin series suffered a similar fate and its product page states, "Due to the increasing market value of gold, the American Buffalo Gold Proof One Ounce Coin is temporarily unavailable while pricing for this option can be adjusted; therefore, no orders can be taken at this time."

Exactly how long does a price adjustment take?

It's unlikely they ran out of gold, but it's not impossible. They're going to have a difficult time obtaining it from the open market at some point. More people are realizing every day that the U.S. dollar is becoming worth less and less (or just plain worthless) and are scrambling to purchase gold and silver. Anyone who quotes government inflation statistics as a sign "inflation is contained" is completely out of touch with reality. I mean 2% inflation, are you flipping kidding me? There has to be a point where U.S. media outlets stop reporting these numbers.

I went off to the Fed web page that sells these coins. Note the price! $899 an ounce. They get a nice overhead cut, don't they? 10% profit. I wonder where this gold comes from. In the 1960's, the US sold off 3/4ths of the gold in Fort Knox. We know that Europe is madly selling off its gold reserves. Is our Fed buying this gold and then turning it into coins? Or is this only excess gold from mining here in the US?

From the Chicago Tribune:

Despite potential tax and investment problems, more investors have been borrowing from their 401(k) plans or taking hardship withdrawals in recent months, some retirement plan providers say.

Many in the field expect more borrowing in 2008, as consumers struggle with tighter credit and potentially higher mortgage payments.

When I was young, I decided the baby boom retirement would be pure hell. And so it is. We are not preparing for the future and this is concurrent with our collective refusal to face reality today. Congress just voted record spending not just on our stupid oil war in Iraq but for all our military. And our tax revenues are now falling as corporate profits either flee to Elizabethean pirate coves or are reduced as the economy retracts. And the spendthrift generation isn't saving much of anything, our gross debts have ballooned lately. We are no longer net savers and no wonder. Savers have been sacrificed in order to stop the blood that is running through Wall Street.

Thanks to inflation, we are now seeing people hollowing out their retirement funds. Many boomers expect to sell their homes for a profit when they retire but this is silly. When everyone is selling their homes so they can move to Florida, the value of homes of baby boomers will decline in value! So expecting this is fantastical. And our government should be encouraging savings, savings, savings. Not spending. And this means, being honest about inflation and then forcing banks to pay a realistic interest on savings. Whenever this happens, we have a contraction since rewarding savers for their risks makes no profits for banks. They want to LEND, not attract savers. And savers can't save if they are lured into loans.

I just got a letter from Sunoco. I use a card to fill my diesel work truck. They want me to have $1,400 and even included a very real check with this letter. As usual, I read the fine print. It is at a 22.74% rate! Wow! Wish my savings got that kind of return. And if you have credit problems of any sort, they can raise it to 31.74% without warning! Usurious rates coupled with Bernanke dropping interest rates into the cellar. The differential between this rate and Bernanke's funny money land is astonishing. These stupid loans from Sonoco is around 19% higher than the Fed rates. So they figure, even if someone can't pay this off for years and years, if they default after 4 years, Sonoco still makes some money. Credit cards are taking off as desperate debtors juggle more and more debts. I remember when 21% interest was if one had defaulted on loans or was in financial trouble, not as an opening rate! Also, I am furious that Sonoco has sent me a real check in the mail. Anyone could activate it by various means. This sort of reckless finances is part of our corrupt system.

They were obviously bottom fishing and hoping the sight of a check would lure me into signing it and then getting caught in this impossible financial trap. In other words, they are con men. Why is Sonoco, an oil company, needing to do this?

This is because they have oodles of money, tons of money burning a hole in their pockets. They can't bank it, that earns no real interest. So they want me to give them money for their money that they first got from me when I pump their fuel into my truck!

From the Telegraph:

What the candidates all have in common is inflation, the ever-higher penalty they pay for chaining their destinies through currency pegs and dirty floats to the dollar and the euro, the currencies of two enfeebled blocs – one a fat roué at the end of his credit, the other a stooped old gentleman with a stick.

The global M3 money supply is growing at 10.6pc as stimulus from America, Europe – and Japan, through the carry trade – leaks out to the vibrant parts of the world economy.

Money is expanding at 18pc in Saudi Arabia, 19pc in China, 24pc in India, 36pc in the United Arab Emirates, 41pc in Russia and 69pc in Venezuela.

The red ink in the US, EU and UK are flooding the world. And I am glad the British reporter here connects all this to Japan's .5% interest carry trade business. Even as I am offered loans at 23-32%, Japan is offering corporate America loans at 1%. This differential is tremendous and is a sign of impending bankruptcy. This lending cycle is inflating all things as money pours into the system via magic. The magicians at the center of this are not in China, they are in Japan. And since Japan is a closed economic system, this means they DEFLATE while they INFLATE the rest of the world's monetary and asset values. I was one of the very, very few people writing about economics to talk about this monetary black hole. At Brad Setser's web site, I was told in no uncertain terms to shut up about Japan and start my own news service because he was sick and tired of me talking about the yen when he wanted to discuss only the yuan.

From the Telegraph:

Kuwait became the first Gulf state to ditch its dollar peg. Others are hanging on, but inflation has reached 10pc in the United Arab Emirates and 11.8pc in the gas-rich neighbour of Qatar.

They have balked at cutting interest rates in lockstep with the Fed. So have the Saudis. This makes pegs untenable over time. Matt Vogel, of Barclays Capital, says a riyal "carry trade" has already begun in Saudi Arabia. Speculative flows are surging into the kingdom.

The Gulf region has $3,500bn under management in reserves and wealth funds. It has the firepower to shoot wolves, but does it make any sense to do so? Buying dollars leads to even more inflation. In any case, Qatar has already slashed the dollar share of its $50bn investment fund from 99pc to 40pc. The game is up.

Further east, Vietnam is throwing in the towel as inflation hits 9pc. It said it will no longer hold down the dong by massive purchases of US bonds. Singapore, Taiwan, and Korea have begun to change tack, slowing dollar accumulation before inflation gets out of control. "There is evidence that foreign-exchange intervention strategies are changing across the region," said Goldman Sachs.

Goldman Sachs notices that the inflation launched by Paulson twisting Bernanke's arms is now causing many government banks in Asia to cease buying our lousy bonds and that this is 'changing...strategies'? HAHAHA. No kidding! Of course, this is changing, rapidly! Everyone smells blood flowing down Wall Street and are now taking measures to protect themselves. The need to fuel speculation here is causing it to rise rapidly across the planet. This is because anyone trying to save the old fashioned way is hammered by inflation. If we got 22% interest on savings, there would be a savings glut here, not a dearth. And traditionally, the government tried to encourage and protect savings precisely so people would not do wild speculation, this was considered TULIP BULB BAD. We know, not from professors writing formulas based on game theory, that this is BAD, we know this from HISTORY.

From Bloomberg:

Hong Kong's most expensive stock market in three years looks cheap to investors at Templeton Asset Management Ltd. and Baring Asset Management Inc.

The Hang Seng Index, dominated by Chinese companies, traded at 19.2 times earnings last week, the highest since March 2004, after the benchmark rallied 41 percent since mid-August. That doesn't faze Templeton's Mark Mobius and Baring's Hayes Miller, who together oversee almost $100 billion, because stocks in Shanghai are three times as expensive. Based on cash flow, Hong Kong is the cheapest among the 20 biggest markets, data compiled by Bloomberg show.

Everyone rushes off to Asia to collect loot. They hope that all the systems there will flourish via the Japanese financial black hole but this is stupid. There is NO WAY Japan can continue this much longer. If they succeed in keeping out raging inflation caused by themselves for much longer, there won't be many Japanese left with a roof over their heads or children. Already, their birth rate is in full collapse and the number of children are well below the rate of replacement. And this is getting worse, not better. Just as Russia's population collapsed when they went into a depression. The whole reason we had a baby boom here was the flow of money after the WWII victory. During the Great Depression, the rate of birth fell. So Japan's long depression is literally killing the Japanese people.

Japan's foreign trade markets soared in the last 15 years. But their stock market did much worse than all of Asia. And the rush for profits in Chinese stocks are going to end badly when either Hu or Paulson strangle the trade between China and the US. Hong Kong is the last frontier. There aren't too many other stock markets to dump money into and make huge profits. Everyone needs to make more than 10% profits to keep up with real inflation.

From the Telegraph:

Reserves of $1,430bn are no help. They are the problem. As Nomura's chairman, Junichi Ujiie, told me in Tokyo: "We're all trying to get money into China any way we can because we know the renminbi has to rise. It's a one way bet. It's wonderful."

This quote is very signficant. Japan is trying to pour money into China TO KEEP THEIR OWN DEPRESSION GOING. They also want the yuan to rise in value so they can gain more US trade. Japan is now boasting, the huge FOREX reserves of China are 'useless' and they now have an upper hand on China's finances.

I see a dragon rising up and saying, 'So, they thought they conned me when the Bank of Japan had that secret meeting? I'll show them!' I am betting the Dragon will make a countermove now that will upset these stab in the back Japanese plans.

Fromm CNN:

A wide-open presidential race and a willingness by candidates, interest groups, unions and corporations to buy TV time will lead to historic spending for political and issue-advocacy advertising in the 2008 election cycle, an analysis shows.

The cost to try to influence the 2008 election could exceed $3 billion, according to TNS Media Intelligence/Campaign Media Analysis Group, CNN's consultant on political television advertising.

This is nearly twice as much than what was spent in 2004 when political and issue-advocacy television advertising rang in at $1.7 billion. In 2006, $2.3 billion was spent on political and issue-advocacy TV commercials.

Corruption in American politics is now nearly total. This is disgusting news.

From the NYT:

Much of this money is being put to work at home. “Now countries like China are generating enormous amounts of capital,” says Felix G. Rohatyn, the veteran banker who engineered the financial rescue of New York in the 1970s. “And of course they are going to want a piece of this distribution and the marketing.” China is staging the initial public offerings of state-owned companies on local exchanges as a means of building up Chinese capital markets — the $7.7 billion I.P.O. of China Construction Bank in Shanghai last month is just one example.

This growth represents a triumph of everything Wall Street stands for — the ability of capital to seek returns across borders, the growing integration of the world’s economy and the triumph of market activity in previously closed areas. And to a degree, this is good news for New York’s asset managers, as private-equity firms and hedge funds now can raise capital from fresh sources. Nonetheless, the diffusion of wealth has unleashed angst among New York’s financial elite, who may soon rue the excesses of recent years as a last-gasp blowout.

Um, there is no triumph of open markets. Japan is closed. And the US isn't winning, Japan is winning. The US trade with Japan is all about a growing trade deficit with Japan and Japan colonizing our industrial base here at home, not the US colonizing Japan's industrial base.

Like London, NY wants to be the center of financing forever. London can still preen itself in this regard but this is only due to them being the servants of the oil Arabs who now own half of the Footsie and a great deal of the English banking system. The death of the princess Diana while in the company and under the protection of Muslim wealth is a clue as to where this is all going. The muted response years later to her death/murder are due to the uneasy knowledge that this woman at the very apex of British society had to turn to the Muslims for money and assistance. It is always interesting to see where the British royals go during dynastic disputes. For example, before WWII, the dynastic dispute centered on the USA due to the king marrying an American divorcee.

So it is here: Princess Di was signalling to the British, their shifting dependencies are now in Arab lands, not the USA.

The NYT:

Like automakers and consumer-products companies (Coca-Cola derives 70 percent of it sales outside North America), New York’s leading financial institutions are trying to become global operators less reliant on domestic markets. In the last few years, the N.Y.S.E., the iconic symbol of Wall Street, has gone public, hired an aggressive, worldly C.E.O. (the former Goldman Sachs president John Thain) and merged with Euronext, which owns a derivatives market in London and stock exchanges in Paris, Brussels and Amsterdam. In its most recent quarter, NYSE Euronext derived 44 percent of its revenue and 62 percent of its operating income from outside the United States. Nasdaq, the second-largest New York exchange, was thwarted in its bid to buy the London Stock Exchange, but is taking a stake in OMX, which operates stock exchanges in Nordic countries in partnership with a Dubai investment firm.

Once again, we see Goldman Sachs in a news story about money. The NY stock exchange is now run by Goldman Sachs. They are aggressively moving things so Goldman Sachs gets richer. Asian powers are manipulating and luring Goldman Sachs into doing things that are very bad for the US in order to get rich quick. Note how they cheerfully announce, the operating income of Wall Street will be outside of America and so they can kiss us goodbye as they shove us off the cliff! Note also how Goldman Sachs is trying to buy up other stock exchanges and how they are working 'in partnership; with the sovereign wealth fund nation of the UAE to buy up other exchanges! Note also that Goldman Sachs has taken Wall Street and fused it with a derivatives market! The very place that is collapsing even as it seeks to gain traction, buying and selling promises and playing FOREX markets and who controls that?

Japan! And none of these people give a hoot about Americans surviving. If the Japanese running the schemes in the heart of Tokyo don't give a hoot if their own tribe starves to death, will they be kindly towards us? And this attitude is part of Goldman Sachs: 'Let them eat NO cake!'

Culture of Life News Main Page

Comments

[D. F. Facti]

I can barely stand to read about GS. Let's not forget Robert Rubin, Clinton's wizard at the Treasury.

The Wall Streeters are paying to type, of course. With no meaningful opposition from the majority party in Congress.

Today's Chicago Tribune quotes one Richard Bove of the firm Punk Ziegel & Co. as atating that the anounced $80 billion fund underwritten by three mega banks in the US to buy "troubled" SIV's: "It's a bailout of rich people."

Tell that to Harry and Nancy.

[tutterfrut]

Elaine,

Maybe here some answers on the bullion gold shortage-delay...

New Treasury documents reveal loans, swaps of U.S. gold

"Note the additional description of gold provided in the new reporting format. It says the U.S. Gold Reserve is 261.499 million ounces and, importantly, that the gold is now reported 'including gold deposits and, if appropriate, gold swapped.' [Emphasis added.]
http://gata.org/node/5637

[Elaine Meinel Supkis]

How about gold swiped? It is so hard to track things. And they use so many things for other things, I feel like I am at a three card monty game.

[blues]

Well, I studied this game theory decades ago. Something about finding the "best" strategies. I don't remember the details. I didn't think it could handle anything very complex. They also use all kinds of other mathematical methods. I'm 85% sure this is nuts. On par with those talk shows where they talk a little about biochemistry, and use it to "prove" that you should eat their product. I think the major function of economists is to constantly spin a rosy picture of the stock market.

I really think the amount of science that can reside in economics may be severely limited. I do have some ideas, but I won't go into them tonight (I have a headache).

~I usually tell them, 'It is worth only what someone will pay and that varies greatly.'~ — Elaine

I question this (I always question answers that look easier than they should be). Things that are too obvious are often just wrong.

[Elaine Meinel Supkis]

Blues, did you look at the biker babe at the top of the next story? Heh. I used to dress up funny like that (but with the breasts covered, of course) to bike around NYC with others who liked to mess around with people's minds. I actually ran around in steel armor.

[blues]

I probably don't need steel armor. I'm pretty dense, all by myself. I know all about the 'babe'. I saw her with the Hitler pictures in the New Milford, CT mansion.

[alan]

NOt bad alan

[Canuck]

Nice to see you at 321gold Elaine

[blues]

Sorry about the incoherent post above. Migraine headache makes posting difficult. I was trying to express that the biker babe picture in the "Money Is Flowing AWAY From USA" story looks to be of a genre that I associate with the WW II era. I don't know why I make that association. One time in the 70's I lived in a mansion in Connecticut that a rock & roll band had temporarily rented (far from any neighbors who would complain about the loud practice sessions). Turned out the owner was very much acquainted with the Nazi leaders of WW II, and he had a lot of stuff that looks like your picture. I wonder; why do I associate that kind of picture with the WW II era so strongly?

[Kanni]

Hi,
Want to work from home to make money online? While many people would like to Work From Home and have some type of home based business, they are often worried about quitting their day job and taking the leap of faith to having a home based business.Another way to minimize the risk of a work from home job is to save some money before they quit working at their day job and become someone who works from home.

[DeVaul]

Blues,

The Germans, or rather the Nazis, tried to create their own mythology for their new movement. They took ancient symbols and borrowed images from their Nordic past to help promote the idea of a superior warrior race. That photo is very at home in a Nazi type propaganda display. They expected even their women to be "superior" not just beauty-wise, but physcially and religiously.

The woman depicted is probably an ancient Gaulic warrior. Celtic women often fought as warriors and the Romans wrote about this, claiming they feared the wives of the fallen Celts more so than the the Celtic warrior himself. Like the men, Celtic women were much taller than Romans.

Anyway, the Nazis used images from their Nordic and Celtic past to promote the concept of Aryan (sp?) superiorty. It was all just a bunch of bullshit, but they even had a parade where they dressed up as ancient warriors and Teutonic Knights and even filmed it. It was ridiculous.

[The CAT]

Lets face it, the US has done themselves in with all the corruption and thievery. At one time we were a superpower, today we are bordering 3rd World country status. The politicians and they're backdoor deals have finished us now. They fortuantely are broke, I hope China and India stop issuing loans and dump the dollar, are days of greatness are over and as broke as I may be after this, I'll be happy to see the madness end, along with the USA........

[Elaine Meinel Supkis]

I live in the USA and want the USA to exist. The deformed mess we have today is not the real USA. We hope to regain this some fine day.

[blues]

“White collar conservative flashin down the street, pointing that plastic finger at me, they all assume my kind will drop and die, but I'm gonna wave my freak flag high.” — Jimi Hendrix

Dream on.

[PFO]

Hello Elaine,

All this currency killing smells like an 'Amero' to me.

Kindest regards,
PFO