Marcus Cake

It has been a very interesting few weeks. The US system has collapsed. Failed financial firms are trying to convince the government to invest in them. The selling proposition? - “too big to let fail!” Understandably, the US congress are making further enquiries before writing a cheque for US$700 billion dollars. The US already terminally insolvent - even with unprecedented growth it can not repay its debts. Another US$700 billion won’t push it over the edge. It already passed the edge. We have crossed a noticeable threshold - people and journalists are being more direct and forthright about their commentary of exactly what has occurred. The prospect of “opaque channels” punishing them must seem significantly reduced. I have extracted some interesting and more forthright commentary below on recent developments.

Fascist Business System breeds corruption and receivership, The Market Oracle 24th September 2008, Jim Willie

• The United States has transformed itself, the most radical degraded aspects having occurred in the last eight years. Many might object or cringe at repeated mention of the Fascist Business Model implemented by the Clinton Administration, and carried to extreme by the Bush II Administration. It is a harsh departure from Beacon of Freedom. Too bad, fact of life! This merger of state and big business in the midst of a climax, the biggest display of exported financial toxin in modern history, and the disintegration of the financial structure for the nation owning the world reserve currency.
• The final battle is underway, for USGovt bailout of practically the entire US banking and mortgage system. Its ancillary businesses like insurance are next. The Credit Default Swap segment represents nitroglycerine soon to be brought under the crippled USGovt aegis. The mega bailout plan puts Wall Street firms first in line to benefit. The plan in my view is the culmination of arrogant criminality, as its architects and promoters are the primary agents for the banking system collapse itself.
• Congressman Ron Paul made a great quote after lecturing the inept misguided and naïve US Fed Chairman Bernanke on the high risks of price fixing. The bailout constitutes the quintessential price fix. Ron Paul said, Most illiquid bond assets are illiquid because they are not worth anything.The Wall Street fraud kings want the USGovt to pay inflated values for their illiquid worthless assets that clog and obstruct the banking industry.
• The massive rollover and refunding requirements from US Treasury Bonds will put monumental strain on the system, which the monetization US$ printing press cannot alone manage. Unless and until foreign creditors step in, the US financial sector will continue to operate like a crime syndicate, since regulatory bodies and law enforcement officials are all part of the coordinated con game.
• Never think the best thoughts, hope for the best of human dignity, or expect fair play to emerge when forecasting the US financial markets. Their plan seems obviously to gut the system before it fails. Then they blame foreigners. False flag attacks then seal the deal, much like cauterizing a wound with a knife made hot in a bivouac fire.
• The four primary features that have pushed the United States into a certain position in Third World status are these: (1) Globalization with deep Western investment in China (2) Insolvency of four pillars of federal, trade, housing, banking (3) Export of fraud with mortgage bonds, mainly to China, Europe, Russia, England (4) Military aggression and annexation with continuous deceit and propaganda.
• The many points describe a system broken without remedy, inviting default and receivership. Both are in progress behind the curtains, but on foreign soil. As Mohamed El-Erian of PIMCO (formerly Harvard Univ) said recently, The unthinkable is thinkable. Little known to the majority of Americans, foreign disgust grows. Their desire to isolate the United States is growing, in order to protect themselves from financial collapse and further spread of fraud. The German economics experts are saying The World Shouldn’t Have to Bear the Burden for America’s Lapses in Spiegel Online (click here ) in a public article.
• Private brokerage stock accounts can now be borrowed by financial firms, evidence produced in Federal Reserve documents. A gigantic final heist might be in the works, requiring a massive event that provides the cover of confusion like a World Trade Center attack. The Glass-Steagall Act was not repealed without a reason and plan! Its removal enables co-mingling of bank, brokerage, and insurance assets.
• A pattern seems evident among failing Wall Street firms. It seems Wall Street firms without extensive stock brokerage accounts are permitted to fail first, leaving private accounts vulnerable. It seems Wall Street firms with big foreign equity ownership are set to fail last, leaving foreigners outside the loop.
• The Global Energy War has opened a new front in the Global Capital War. Aggressive US actions to secure energy supply have endangered its capital supply. The backlash is not even on the American radar systems, as arrogance prevails. In high commerce and banking circles, the US is being isolated. Many European firms do not return phone calls to US bankers, on orders.
• A solution comes from foreign creditors that does not require Congressional approval or vote, constituting an event to pull the rug from under the Americans. The avenue will be via bank channels. A receivership committee is being formed. More details are a main feature of the October HTL report. The accumulative debt held by US and foreign entities is so grand, that every single day interest of almost $1 billion is owed to them on a daily basis for the USGovt Treasury and Agency mortgage bonds. If the USGovt were to shut down all operations and provision of services, including military, the USGovt might achieve a balanced budget. It could balance its budget from tax revenue against just the interest expense on debt, with no other official function whatsoever. An interesting concept. Maybe that is part of the next Receivership Committee plan.

A private receivership committee may have been formed in international markets. It will operate in “opaque channels”. A private online political network would be essential coordinate timely international activities amongst US creditors. The aspirations of the average American remain the same. They can be sold a “story” by mainstream media that permits further avoidance of debt repayments or justifies activities that acquire international “leverage”. An E-democracy online network and/or a US insolvency online network could be used to inform the US public. Maybe, they will assume responsibility, or maybe they would prefer not to know.