Money. Conclusion.

picturedJune 14, 2013 by Jerry Alatalo

Love, compassion and understanding reveals that suffering can end with very little resources. A sharing world has come.

Consider the economic examples given by Scandinavian countries like Finland, Norway, Sweden and Denmark. These people have high taxes but prevent politicians from lowering them as they experience solidarity, high academic achievement, low poverty, national healthcare and satisfactory living. The people in these countries have the highest standards of living on Earth and would not choose any other system.

The tide has turned as the secrets can no longer be kept away from the people. The economies of each country and the world have suffered manipulating by robber barons. Bankers have taken advantage of their customers with nothing short of thievery. Corporations gain more power with men and women going into the government sector, back into the corporate sector, etc., etc. A few wealthy families benefit while the rest of the population suffers.

One half of the world’s population lives below the poverty level. Many in America hold the belief that America with foreign aid has always been an altruistic nation. It is not total altruism. The money and aid go for the most part to American corporations and a few wealthy families in the recipient country. The supposed original intent of the aid to help the people of the recipient country is a fraud. You will not find any real investigative reporters on any of the major media to report these frauds. Laws have been influenced and sometimes written by the 35,000 corporate lobbyists.

There are a small number of people on the planet who have one goal, maximizing profits, without regard to consequences for the world’s people and environment. There are thankfully business leaders becoming concerned for the health and well-being of people and the environment. We shall see this trend continue. Over a trillion dollars gets spent every year for militaries and preparation for war and killing. There are solutions available to create a better world. Thankfully these solutions are shared by the people of the world through the worldwide web.

World consciousness and awareness are rising. Every person on Earth is facing the same economic crises, environmental degradation and climate chaos. It is a revolutionary time which is resulting in real human transformation. Leaders involved with greed, manipulation and brutality have handed the reins of power to leaders whose tools are love, compassion and peace. We are realizing that current leaders, especially those of the old way of thinking, cannot be trusted to bring about the real changes needed to create the world people want.

It is time to concentrate on positive and possible solutions to these obviously solvable human problems. Disinformation weapons fail with the new technologies of social media, the internet and smart-phones. Five corporations control the major media but these new technologies have overcome that control. Humanity will solve the poor’s problems  through coöperation and help with farming, fishing and water issues – basic survival methods.

There has been enough spending on bombs, missiles, tanks and fighter jets. Time to end the desperate living conditions of our world’s starving and poor. Let us begin by paying corporations to help the poor of the planet to grow their own food. Reject powerlessness and fear and the positive, possible changes we seek for humanity will become inevitable. There are so many solutions.

It is time to take away the power from private central banks in the form of the Federal Reserve of the United States,  the World Bank, International Monetary Fund and the Bank for International Settlements. There will be no more taking advantage of our fellow members of the human family for personal gain and self-aggrandizement. That historical model is over. Humanity has seen enough. The historical rule of ego thankfully is disappearing. The new model of the rule of spirit is now thankfully being created.

Very few people control the money and wealth of the world. The suffering and misery experienced by our human family for hundreds of years has resulted in wealth going into the hands of these few. Now is the time for the reversal of this insidious human system. What we are talking about is basic fairness, justice and concern for our fellow-man. What we are talking about is Jesus’ commandment, “Love one another as I have loved you.”

All of the suffering that humanity has experienced throughout history is finally going to end. War, hunger, poverty, disease, hate, greed, envy and misery are going to be things of the past. Humanity is finally going to break the chains of ego slavery and experience true spiritual freedom. The human race is coming to the realization that we all are one. Imagine and believe in the glorious future that awaits us.

Get active with your actions being in harmony for humanity to win. When the people rise and make the changes necessary humanity will win. Believe a better world is possible and take the actions to make it happen. The human race created the money problems with their unfortunate consequences. The human race can fix these problems. Never doubt your ability to improve the situation in your country as well as your world. Never get discouraged.  As the human race unites as one a better world comes into view.

Future generations of humanity will point back to this time and know that this generation was the one. This generation was the one which took the actions necessary for creating an everlasting heaven on Earth. This generation was the one which understood the spiritual philosophy of seven generations. We are the generation which took the present and future into our own hands and created  paradise on Earth. This generation will forever be known as the one where the awe-inspiring magnificent events took place; the events which changed everything for  humanity forever.

This generation will create the systems which distribute Mother Earth’s abundance to all for the welfare of all. Not one single human being will be left out. There will be no more turning away from those who are struggling for survival. We have created the systems of inequality. Now the systems of equality appear which will forever be understood as the best we could create. Infinite love will be the source of energy used in the Creation of these systems. Humanity will be happy to have created with infinite love and reaching for our highest potential on Earth.

Utopia is an ideally perfect place, especially in its social, political and moral aspects. A world created with love as its basis could not be described as anything but heaven. Creating heaven on Earth is the reason we as souls came to the physical realm. Our evolution as immortal souls includes understanding the truth of unconditional love and that awareness being communicated to all. When the awareness is felt by all then creating a love based physical reality begins.

We will know that we decided in favor of love because it was the only choice we could sanely make. All of our actions from that point will start with love. We will have reached the point in physical reality where beyond which it is impossible to go. Thy will be done, on Earth as it is in heaven.

Many have come before this writer and many will come after who have spoken on these things in a more articulate manner. Many of you have come across writings, music, film, speeches, art and other forms of communications that have profoundly moved you. We all are eternally grateful for the men and women who created these works. We simply pray that this effort results in positive consequences for all. Some will find the ideas shared as utopian, pie-in-the-sky or impossible. Perhaps the dream seems difficult but what is difficult about choosing love? Humanity will rise as high as possible. Perhaps this begs the question. What is humanly possible?

This generation will answer the question. Is your life all about you, or is it all about your fellow-man? This generation will answer emphatically and collectively it is all about our fellow-man. All will know that love is the only truth and that everything else is an illusion. We will understand that we are all forever beings and that nothing ever ends. With this level of spiritual understanding all human activity will change. Reality will be lifted to the higher planes of love.

Is this the truth of reality? We shall see. Humanity will find the way. Humanity will create a new world and it will be good.



Money. Part 7.

Finance - Financial injection - Finance
Finance – Financial injection – Finance (Photo credit: @Doug88888)

June 13, 2013 by Jerry Alatalo

People around the world are familiar with the minimum wage. What would happen if there were also a maximum wage? This will strike many as really thinking outside the box. It is just a thought. Why not? It would be interesting to hear what any critics of such a proposal would use as arguments against. What human being could disagree that a maximum wage would result in a literal improvement in the living conditions of every man, woman and child on planet Earth? Since there are monetary systems almost everywhere on Earth how about a maximum wage of $1,000,000 per year? It would seem that any human being could live a fairly decent, comfortable life anywhere on Earth with $1,000,000 per year. Perhaps we could see a one year worldwide trial of a $1,000,000 maximum wage.

Imagine what kind of world we will live in when this maximum wage becomes the agreed upon law of the land everywhere. There will be enough resources to pay for the projects and actions which will end many of the problems faced by humanity. Humanity has finally come to the point in history where there is no other choice but to solve our problems. Every action will result in the easing of our fellow brothers’ and sisters’ agonies and miseries. We will understand charity, compassion and love.

We have seen overwhelming evidence presented through history of the financial and economic devastation brought about by those whose addiction is money and power. We have all seen the banking scandals, Ponzi schemes, fraudulent derivatives, mortgage frauds, insurance scams, murders, sabotage, blackmail etc. right down the line of crimes committed because of the love of money. Now is the time to relegate greed to the history books. The end of greed will be looked back upon by future generations as one of the noblest actions ever taken by civilization. Our children, grandchildren and great-grandchildren will be eternally grateful to us for having created such a wonderful world for them.

The instituting of a maximum wage would go a long way towards eliminating corruption, fraud and deceit. After all, what is the motive behind corruption, fraud and deceit where there are financial transactions? The motive is to gain fraudulently at someone else’s cost. Those who would object to instituting a maximum wage argue that this move would lower incentives for people to create and grow their businesses. They will argue that economic activity would be reduced as the incentives of the owners of business enterprises, actors, professional athletes, doctors, lawyers, hedge fund managers and anyone in the $1,000,000 plus per year income range would be taken away.

Imagine the scenario where there is a $1,000,000 maximum wage. First and foremost, the incentives which result in people using fraud and deceit to gain financially by stealing from others would be almost eliminated. There would be a sharp decrease in financial crimes along with a sharp increase in the negative consequences felt by those who commit them. The historical concept of making a killing would no longer exist. All of the crimes committed so as to make a killing, be they with the pen or the gun, would be sharply reduced.

The world’s economic activity would no longer be based on making as much money as possible with economically devastating, malevolent acts of crime and fraud, but toward benevolent ends. More and more economic activity would be undertaken in goodwill, helping others and solving human problems. The dominant philosophy of “How much can I get?” will transform into the new dominant philosophy of “How much can I give?”

The major positive outcome of instituting a maximum wage is that the incentives would change. The current incentive of profit maximization would be replaced by the incentive to help your fellow-man. Those who would disagree with a $1,000,000 per year maximum wage would have to consider the question: “Is your life all about you, or is it all about others?” This is the very basic spiritual question which all people invariably have to answer. This question goes into the very essence of the meaning of human existence. Here is the choice made between the ego and the Holy Spirit; between love and fear.  There is no other choice.

Perhaps the maximum wage could be tested for just one year. Perhaps all of the countries on planet Earth would agree to the “One Year for Humanity and Mother Earth” implementation of the maximum wage. Imagine the profound increase and change in spiritual awareness by the human race which would occur. Can anyone debate that such a measure would not result in improvements over our current situation? What would be revealed about those who would object to a one year trial? Could their objection be, “How do you expect me to live on $1,000,000 a year?”

Regulation of financial companies would be strictly enforced with proper punishments, including widespread public media attention given to those who take advantage of others through fraudulent gain. There will be no more monetary fines for illegal financial activities. The man who steals food to feed his family is given more real punishment than those who steal amounts thousands, millions and billions of times larger.

Since 1913 the Federal Reserve banks of the United States and countries around the world with their manipulations of money supplies, markets and economies have caused booms and busts. Long term planning of business leaders is disrupted. The private Federal Reserve bank system is a failure. There have been eighteen recessions since 1913. Now we witness the world depression of 2013. Nothing good comes from private control of money supplies. It is long past time for governments to take control of their monetary systems.

As a result of the latest financial crises of 2008-2013 households in America have taken an eleven trillion-dollar loss. What will it take to get serious action? Do not let too big to fail banks grow any larger, shrink them down to 50 billion dollars in assets over a five-year period, while intensively regulating them during the downsizing. Compensation systems are necessary to end incentives for the “big kill” on large, risky trades and transactions. At present there are tons of money in rewards if things go well but possible destruction of global financial markets, and losses in the trillions of dollars if the bets are lost. As of 2013 no serious re-regulation or Glass-Steagall legislation has been made into law. The Glass-Steagall act worked extremely well for sixty years and should be brought back now.

Austerity measures simply prolong and increase economic crises as less spending starts a vicious downward spiral. Governments should increase spending and reduce taxes on the middle and lower-income classes. Consider no taxes on income up to $50,000. Revenue sharing to states would be a large part of the spending to help states keep employees and provide essential services. Austerity in times of economic crises is negative.

As of 2013 advanced industrialized countries, most notably in Europe, are in depressions. Poor regulation and a hands-off approach to the financial system has facilitated a prolonged recession and some think a depression. This is a situation that not many can remember. It is very serious. This is why the idea of a $1,000,000 maximum wage was a serious proposal. The incomes of the top 1% have pulled away from the 99%; the top .1% has really pulled away to Gatsby-era levels of 1910. Income inequality has risen to 1930’s levels. Part of the problem has been the differing opinions of economists on policy directions.

Many have the erroneous opinion that the government must act like a household about finances. Government, especially during economic crises, must increase its role to intervene in the economy. Income inequality results in political inequality. Reforms in the political system are necessary so that the 99% are  represented as opposed to the top 1% whose situations are very good. How much of the business that the financial sector does is for the enabling of productive, economic growth for the well-being of all as opposed to actions which have to do with personal gain and greed?

Banks have become market makers to take advantage of insider knowledge and tactics to maximize profits. Nobody is against making a profit but the balance between helping the country’s economy and people and helping oneself has gotten way out of kilter. With so many homes under water reducing principals and interest rates could be undertaken to both stimulate the economy and help hard pressed citizens. The old model of serving self is ending. The new accepted point of view of service to others is starting to gain momentum and unstoppable.


Money. Part 6.

Go Away Federal Reserve System!
Go Away Federal Reserve System! (Photo credit: r0b0r0b)

June 12, 2013 by Jerry Alatalo

The internet has played, and will continue to play, an essential role in the sharing of important information by everyone on the planet. Do not allow any regulations proposed by governments to restrict in any way this tool called the internet. Consider why anyone would want to restrict the communicating of ideas. Ideas are exactly what the human race needs at this time to come together and solve our problems. Do not take anything for granted. Do not be scared; fear will do no good at this time. Nothing but a change in consciousness is needed now.

When Jesus said, “What you do to the least among these, you do to me” he was speaking truth. See all the suffering brothers and sisters on the planet now. Grasp the real world situation and take strong, positive action to make the world situation better for all of our brothers and sisters everywhere.

A historical perspective is added through reading the words of New York City Mayor John F. Hylan (1868-1936). John Hylan was Mayor of New York from 1918-1925 and he said in 1922:

“The real menace of our republic is this invisible government which like a giant octopus sprawls its slimy length over city, state and nation. Like the octopus of real life, it operates under cover of a self-created system. At the head of this octopus are the Rockefeller Standard Oil interests and a small group of powerful banking houses generally referred to as international bankers. The little coterie (n. an intimate and often exclusive group of persons with a unifying or common interest or purpose) of powerful international bankers virtually runs the United States government for their own selfish purposes. They practically control both political parties, write political platforms, make catspaws of party leaders, use the leading men of private organizations and resort to every device to place in nomination for high public office only such candidates as will be amenable to the dictates of corrupt big business. These international bankers and Rockefeller-Standard Oil control the majority of newspapers and magazines in this country. They use the columns of these papers to club into submission or drive out of public office officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government.”

What has really changed since the days of John Hylan? Fortunately the means of communication, namely the internet, have allowed for a larger dissemination of truth.

It is finally time for humanity to break the chains of the debt-money systems. Something is very wrong when we have all the abundance the Creator and Mother Earth has given us yet we have immense human suffering. When two friends have a few beers they describe what occurred as “we solved all the world’s problems.” Well the time has arrived where we as humanity will solve all the world’s problems. The joint strengths, talents, ingenuity and efforts of the human race are more powerful than all the problems we face. The main ingredient of our success here on Earth is love. With love as the most important consideration when any action needed, the future becomes unlimited.

Texas Congressman Wright Patman (1893-1976) sat on the house committee on banking and currency for 40 years, chairing the committee from 1965-75. In 1941 he said:

“When our federal government, that has the exclusive power to create money, creates that money and then goes into the open market and borrows it and pays interest for the use of its own money, it occurs to me that is going too far. I have never yet had anyone who could, through the use of logic and reason, justify the federal government borrowing the use of its own money… The constitution of the United States does not give the banks the power to create money. The constitution says that Congress shall have the power to create money, but now, under our system, we will sell bonds to commercial banks and obtain credit from those banks. I believe the time will come when people will demand that this be changed. I believe the time will come in this country when they will actually blame you and me and everyone else connected with this Congress for sitting idly by and permitting such an idiotic system to continue. I make that statement after years of study.”

Patman introduced legislation during twenty of his years in Congress to repeal the Federal Reserve act of 1913.

French economist Maurice Allais (1911-2010) said:

“In fact, without any exaggeration, the current mechanism of money creation through credit is certainly the ‘cancer’ that’s irretrievably eroding market economies of private property. In essence, the present creation of money, out of nothing by the banking system, is similar – I do not hesitate to say it in order to make people clearly realize what is at stake here – to the creation of money by counterfeiters, so rightly condemned by law.”

Needed is the end of fractional reserve banking and the beginning of 100% reserve requirements of lenders, along with the end of private central bank monetary control.

1976 Nobel Prize winner for economics Milton Friedman (1912-2006) had something to say about monetary policy:

“The stock of money, prices and output was decidedly more unstable after the establishment of the (Federal) Reserve system than before. The most dramatic period of instability in output was, of course, the period between the two wars, which include the severe (monetary) contractions of 1920-21, 1929-33 and 1937-38. No other 20 year period in American history contains as many as three such severe contractions. The evidence persuades me that at least a third of the price rise during and just after world war one is attributable to the establishment of the Federal Reserve system… And that the severity of each of the major contractions is directly attributable to acts of commission by the Reserve authorities. Any system which gives so much power and so much discretion to a few men, (so) that mistakes-excusable or not-can have such far-reaching effects, is a bad system…”
“… It is a bad system to believers in freedom just because it gives a few men such power without any effective check by the body politic-this is the key political argument against an independent central bank. To paraphrase Clemenceau, money is much too serious a matter to be left to the central bankers.”

Friedman also thought the great depression came about because of the actions of the Federal Reserve. Friedman said:

“The Federal Reserve definitely caused the great depression by contracting the amount of money in circulation by one-third from 1929-33.”

Two thirds of the planet is in debt. Countries that are in debt must seek investment to increase exports for debt repayment. John Perkins, mentioned elsewhere in these writings, was an economic hit man who enticed world leaders whose countries contained valuable resources coveted by transnational corporations to accept large loans from the World Bank and International Monetary Fund for infrastructure projects. This was a form of debt trap for the people of those countries.

Those who stood up for their nation’s independence and ownership of their natural resources many times became victims of assassination or overthrow by coups. This information needs to be understood by people to put an end to the practice and hold those responsible accountable for their crimes.

The leaders who took the loans and the financial elites of the country would get fabulously wealthy while the less fortunate must accept austerity measures to pay back the World Bank and IMF loans. This debt trap scenario practiced by international banks has been going on for too long. The people of each particular country see the plunder of their country’s wealth and suffering lower standards of living in the process. The people of these countries do not want transnational corporations in their land. They, just as all human beings, simply want to live a happy, healthy life. Think about why almost every country on Earth is in debt. It is this historical, wicked, economic game which is coming to an end.

As the economic crises has engulfed almost the entire world there are more calls for a worldwide strategy to bring solutions. How about a worldwide cable television station for the sharing of all the diverse economic opinions and options available for the human race to watch? Think outside the box. Why could not a project similar to this become a reality?

At this point you will find channels on popular systems like “the knitting channel” or hundreds of music channels. Perhaps a few of the redundant channels could be replaced by information channels dealing with the most important issues facing humanity. What is wrong with the people of the planet knowing what is occurring that effects their lives? We are simply making the point here that those who own the major media in the world have a vested interest in not allowing real information getting to the populace.

We have in these writings given you some information that is uncomfortable as it deals with somewhat unpleasant, difficult issues. Keep in mind that all you need is to stay honest with yourself and others while rejecting anything having to do with greed and hate. We hope that you keep love for others, your families and yourself as the guide when going forward with your life.

When more and more people allow love to rule over every thought then we the people of Earth will be well on our way to establishing a fair, just world for all people.

President Franklin Roosevelt on the monetary fight:

“The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the government ever since the days of Andrew Jackson-and I am not excepting the administration of Woodrow Wilson. The country is going through a repetition of Jackson’s fight with the bank of the United States – only on a far bigger and broader basis.”
Once again thank God for the internet. Do not allow for any restrictions on this extraordinary means of communication for humanity.

We come across such information and we wonder how and why this situation came about. Our personal philosophies change. The inevitable confusion sets in about the set of beliefs we have adopted to as we go through time. What are we doing with our lifetimes and why are we choosing what we choose? Are we hypnotically accepting society’s ideals of what success and happiness are or are we exploring fully all the different ways that men and women throughout history have attempted to explain the human condition? Or do we attempt to create original thought as a new way?

Since President Andrew Jackson gave his farewell address in 1837 the American people and humanity have been robbed through the Federal Reserve/private control of money. If the private banks suffer financial losses, the taxpayer pays for the bailouts. The taxpayers absorb those losses. The private banks, when they realize profits, keep those profits.

The American people along with the people of the world must demand that the control of money be taken from private hands and placed in the hands of governments and the people.

Time and again world history has shown that private control of monetary systems leads to plutocracy or government by the wealthy.

The world’s nations must all become the controllers of their currencies. This would end all the corruption, fraud and abuse practiced throughout history by private financial corporations. All the complex financial products, often used for fraudulent purposes, shall be examined, kept if a benefit for humanity, or banned if no benefits will be realized for the people.


Money. Part 5.

English: Wall Street sign on Wall Street
English: Wall Street sign on Wall Street (Photo credit: Wikipedia)

June 11, 2013

by Jerry Alatalo

The revolutionary war was fought over the control of  money. The first Americans printed their own currency and the British could not stand for it. You do not read this, the real reason for the war of independence, in your history books. Government finances its debt by selling its government bonds for interest. If the government took over the control of the money supply eventually government debt would be a thing of the past; debt-free money.

Thomas Jefferson had eight straight years with a balanced budget. Later in American history the hero of the monetary reform advocates, Andrew Jackson, paid off the national debt.

The current national debt, if private control of the monetary system is not replaced by government control of the money supply, can never be repaid. If the financial elites continue to stay in control of money then the economic life of America and the world will continue being strangled. The financial elites have betrayed the entire population of the world. Ask yourself why we have to borrow money from China and other nations. Ask yourself why the United States of America and most other countries of the world are suffering deep recessions, unemployment and unrest.

The rich get richer. The middle class suffers financial hardships. The poor get poorer. Assets are lost and bought up by those more fortunate. The financial system has exploited for a long, long time. Look at the results and ask yourself if it is not the time to take care of these problems. The private banks’ debt-money system has concentrated the wealth of the financial elites.

The historical accepted point of view around money has unfortunately led to the unequal distribution of it which has led to the negative effects we are now witnessing around the world.

Accumulating money became, for those who possessed large amounts, a game to see who could accumulate the most. Studies have shown that, since the passage of the Federal Reserve Act in 1913 the dollar has lost 95% of its value. The time to fix this inequity is now.

During the savings and loan scandals of the 1980’s there were around 1,500 convictions of those who committed fraud or other financial crimes. The economic crisis which culminated in 2008 was the result of financial fraud of a size never seen in human history. Words cannot adequately describe the unprecedented extent of the crimes. Simply, the frauds were epidemic. As opposed to the around 1,500 convictions during the 1980’s savings and loan scandal there were almost no convictions of those who committed fraud and other crimes during the economic crisis years of the late 2000’s.

Documentary filmmaker Charles Ferguson’s movie “Inside Job” won the Oscar for best documentary in 2011. The documentary is a powerful work which shows what really caused the 2008 economic crises and is one you will want to view. Please do so as you will add greatly to your knowledge of the financial industry. As Ferguson accepted his Oscar the first thing he pointed out to billions of Oscar viewers was that, three years after the crisis, no executive from the Wall Street firms that caused the crisis had been brought to face justice.

Now you understand real financial power. The lack of convictions even as rampant fraud occurred is almost criminal in itself. The government’s justice department and the regulatory agencies with the power to enforce the laws of the land could be seen as accomplices.

The allowance of fraud with impunity results in a crisis. To continue to allow fraud with impunity will only result in another crisis… and another crisis. The crisis of the late 2000’s destroyed tens of millions of jobs. The financial elites of Wall Street are weapons of mass destruction; mass destruction of jobs. During the savings and loan scandal of the 1980’s the infamous Charles Keating brought Alan Greenspan to his aid to fix the problem. Greenspan later became head of the Federal Reserve.

During the late 2000’s scandal seventeen of America’s largest banks left a trail of documentary evidence of fraud on massive scales. Many federal banks gave up their charters simply to become mortgage banks to escape the regulators. Everyone knew about the coming, disastrous economic time bomb that was on its way. The FBI warned Congress in 2004 that there was an epidemic of mortgage fraud which would result in an economic crisis. After the FBI warnings there was a massive increase in fraudulent mortgage loans. The lenders were the party that created so-called liars loans.

The largest banks in the world were actively involved in producing these millions of fraudulent mortgage loans. Then the loans were gathered up into complex financial instruments, given AAA ratings by the ratings agencies and flushed down the toilet or sold to the next unfortunate owner of the toxic assets. To add insult to injury there are ways for Wall Street speculators to bet that a stock will go down or that mortgages will go sour.

The same banks that bundled the toxic mortgages and sold them, knowing the customers would not be able to make the payments, bet large money that foreclosures would occur on those same mortgages they sold to someone as AAA. It seems that transactions which “win” because of others’ misery would be better off banned. Who invented the transaction where you can bet that a certain stock will decrease in value? Should not this type of transaction be banned as well, as it opens the way for all types of chicanery?

The main point is that the selling of these toxic assets, known by the seller as toxic meets the definition of insider trading. The fraudulent selling of assets.

Enron, before that house of cards fell, created the California energy crisis. Watch the 2005 documentary “Enron: The Smartest Guys in the Room” for the sordid story. There were regulations in the energy derivatives market and Enron took as much advantage of no regulations as they possibly could for financial gain, in spite of the California citizens who paid through the nose for electricity. The documentary has telephone recordings of Enron employees laughing at the “suckers” in California.  Now you know why those who champion de-regulation take that position. The less regulation, the more you can get away with. You make more money, period.

Please don’t think that we are saying that all bankers are corrupt. Those who are honest would not commit frauds on the massive scale of those in the late 2000’s scandal. The honest bankers would not use these complex financial instruments in order to deceptively sell toxic assets to others. Honest bankers would not make the bad loans as this would result in their bank’s failure. They would not use appraisal fraud to increase illegally the values of the homes they finance. They would not make liars loans (false incomes) without any underwriting. Liars loans are not made by honest firms.

The epidemic of liars loans being made by most of the largest banks in America came to a point in 2006 where 1 out of 3 mortgage loans were liars loans. Approximately 2,000,000 liars loans were processed in the year 2006. That is 2,000,000 fraudulent loans. Every mortgage lender in America was aware of the liars loan problem and yet the loans increased. Congress and the regulators knew of the warnings and the situation.

How can the financial elites be allowed to loot the system with impunity? During the savings and loan scandal of the 1980’s between 500-700 financial elites faced justice for their crimes. The late 2000’s financial scandal resulted in 0 (zero) referrals, much less convictions of the larger number of criminals compared to the S+L scandal of the 1980’s. Estimates are that 10-12 trillion dollars were lost in the late 2000’s scandal. If the wealthy elites continue amassing wealth through worldwide fraud we will see crisis after crisis of increasing intensity and human suffering.

This system of plunder is a direct assault on the American people and on the entire human race.

During the S+L scandal of the 1980’s every member of Congress and every economist opposed re-regulation. The repeal of the Glass-Steagall act in 1999, originally passed in 1934 to prevent another depression was an act of deregulation. It opened the door wide open for commercial banks to engage in activities and affiliations with securities firms, illegal under Glass-Steagall. Do not listen to those who cry deregulation. These people and their companies absolutely have to be very aggressively regulated. Very significant increases in penalties associated with financial crimes are called for to deter future temptation. This means real prison time where, when those in the same area of commerce see the result of wrong choices and actions, the number of those crimes drops significantly.

In order to stop accounting control fraud by top bankers, very tough regulation, with the necessary personnel in white-collar crime is necessary. There is no alternative. Timothy Geithner was a total failure as a regulator when head of the New York reserve bank. Then he became the Treasury Secretary. The Federal Reserve has the authority to regulate every mortgage lender in the country. Alan Greenspan was anti-regulation and did nothing during the 2000’s scandal. Ben Bernanke did nothing to stop the abuses and frauds. How are people who are against regulation chosen as the top regulators? Attorney General Eric Holder and former Treasury Secretary Geithner prevented any type of widespread prosecution of the huge numbers of fraudsters.

The Federal Housing Finance Administration found that 17 of the largest banks in the country made sales to the two most powerful housing entities, Fanny Mae and Freddie Mac, and left a paper trail which proved the banks made the sales intentionally while knowing they were fraudulent. Every form of justice suffers violation when the justice department refuses to undertake prosecutions. At this time the justice department is willing to give immunity while not even investigating for massive frauds in exchange for minor monetary penalties and fines. We see nothing less than the United States government’s total surrender to crony capitalism.

Those who are in positions of authority whose job it is to regulate the financial markets and fail to do so need to be replaced. Too big to fail firms need to be made smaller so that their problems, associated with their systemic risks, do not become worldwide problems. All people everywhere need to express their concerns. Once again Alan Greenspan, Ben Bernanke and Timothy Geithner all could have stopped the damage of the late 2000’s economic crisis which spread worldwide. Those in power positions believe government regulation is the problem.

Crime pays at the largest financial institutions if nobody has to pay for it. The justice department has 20% of the number of FBI agents and prosecutors specializing in white-collar crimes than were available during the 1980’s S+L scandal. The dollar amount of the late 2000’s scandal is probably 50 times larger than the S+L scandal. White collar crime personnel need to be increased to a point where it is larger than it was during the 1980’s. Strong enforcement of regulations, re-regulation along with a new Glass-Steagall law need to be passed to end the rampant frauds and abuses in the financial industries. Shrink the size of the too big to fail companies so that their risks are eliminated.

One of the better news programs on television, “Frontline”, had an episode titled “The Warning” broadcast in October of 2009. You can find the program on YouTube and you will be astonished after viewing it. The story documents the efforts of one woman who tried to warn the federal government in 1998 of the derivatives “time-bomb” and was pummeled and ignored because of her efforts.

In 2005 there were economic cheerleaders everywhere. Things were booming in the economy with the housing bubble inflating steadily. It was a time of celebration. Alan Greenspan was given the Presidential Medal of Freedom by George W. Bush. Alan Greenspan was called the “wizard” and is an Ayn Rand disciple who believed separating the state and the economy. Federal Reserve chairman beginning in 1987 and ending in 2006 and a libertarian.

When Bill Clinton became President in 1992 there was a feeling in the country that government was the problem. Too much regulation by government was viewed as a problem. Deregulation came to be seen as the answer by many at that time. Clinton appointed former Goldman-Sachs head Robert Rubin as Treasury Secretary. Greenspan and Rubin held similar views on Wall Street. They both believed that there must be less regulation of Wall Street firms. Timothy Geithner and Larry Summers were also against “intrusive” regulations and on the Clinton economic team.

The market soared with the bubble euphoria of the mid to late 1990’s. These were economic boom times.

Brooksley Born was one of seven women in her years attending Stanford law school during the 1960’s. She was the first woman to become President of the Stanford Law Review and graduated at the top of her class in 1964. She had a long career in the legal field including in the areas of financial transactions and derivatives. Her name eventually came up as a possible choice for Attorney General under Bill Clinton but the post went to Janet Reno. She accepted the post to head the Commodities Futures Trading Commission (CFTC) in April 1994.

Brooksley Born was 55 years old when she accepted the CFTC position in 1994. Ms. Born had seen in her legal career the worst of the markets and knew how important regulation was. She had lunch with Alan Greenspan and became taken aback when Greenspan said, “the market will take care of fraud.”

In her job, she and her team found one area which caught their attention. That area was over-the-counter derivatives transactions. These were transactions called swaps, were unregulated and had no transparency. Derivatives are traded over-the-counter by banks, insurance companies or other funds and companies. They were unregulated, big, growing rapidly and the number of transactions was going out of sight. They are a form of gambling or bets; Ms. Born found $27 trillion worth and growing dramatically.

Investigators for the CFTC eventually learned that the transactions were of a type that fraud was highly possible. In 1993 Bankers Trust sold derivatives to Proctor and Gamble which resulted in Proctor and Gamble suing Bankers Trust for fraud. Secret recordings of people at Bankers Trust included wording by their employees that “we are going to clean their clocks (Proctor and Gamble).” CFTC learned of the possible problems associated with these financial instruments after Proctor and Gamble and others sued Bankers Trust.

There was no record keeping, no reporting, no idea how large, trillions of dollars in transactions were secret, and the market was growing rapidly. Born and her team put together a concept release to start regulation of over-the-counter derivatives/swaps. She had to get involved with Greenspan, Rubin and Larry Summers. At the time Greenspan was saying of the economy “the economy is the best I have ever witnessed in 50 years…” When Brooksley Born told Larry Summers of her intention to start regulating over-the-counter derivatives, Summers read her the riot act. “You don’t get it!” The banking industry begged to “get this lady off our backs!” Ms. Born found the reactions to her decision to regulate very suspicious. The President’s working group, handpicked by Rubin, consisted of Rubin, SEC Chairman Arthur Levitt, Fed chair Greenspan, Larry Summers and CFTC Chair Brooksley Born.

Born’s concept release was to begin the process of regulating the derivatives market. Greenspan and Rubin were 100% against the regulating. “No, no, no. Deregulation has given us boom times.”… “You do not have legal authority.” Born replied that she did have authority. Greenspan was angry, “this was serious mistake, unwise… tremendous damage…”  “She’s not playing ball, we will kill this.”

Born had her staff publish the concept release which landed her in the crosshairs of Greenspan, Rubin and Leavitt. They thought that Congress must act to stop this. They began making Born to look like a power grabber.

Before Congressional committee Greenspan made the case against Born while she was pummeled by members of Congress, of which 90% knew nothing of derivatives; of their immense size and scope. In 1998 Born testified four times. She was up against very powerful forces and had no political capital and no support. Then Born’s warnings became prophecy.

Trillion dollar hedge fund Longterm Capital Management was near collapse in 1998. LTCM used derivatives to leverage $5 billion into $1 trillion using a secret mathematical formula to create a “fool-proof” money machine. 44%, 40%, 29% returns… Then their computer models began failing. LTCM was doing transactions with fifteen of America’s largest banks, was unregulated and investors could not check LTCM’s exposures. The Russian economic disaster at that time left LTCM close to collapse. The systemic risk of the collapse of LTCM was real and very scary. The entire economy was in jeopardy. After four days Wall Street banks bailed out the company and the crisis passed.

This is what happens when there is no regulation of the gambling, Wall Street elites. Regulation of the over-the-counter derivatives market was necessary then and needed now. Greenspan then told Congress, “This was an anomaly… No new regulations… Regulation of the o-t-c derivatives market is quite adequate to maintain a degree of stability in the system…” Over-the-counter derivatives were left unregulated by Congress. Born was told there would be a regulatory freeze/prohibition on regulation of derivatives due to intense pressure exerted by the financial lobby and by Congress.

Brooksley Born resigned on June 1, 1999.

In 2007 the derivatives market grew to a mind-boggling $595 trillion (yes, trillion). Estimates as of 2012 are $1,250 trillion; an unbelievable statistic.  The time bomb explosion came in 2007, ten years after the collapse of Longterm Capital Management. On September 15, 2008 the collapse of Lehman Brothers made everyone aware of a financial crisis in both the U.S. and world capital markets.

Brooksley Born remained silent until 2009 when she said:

“The market grew so enormously, with so little oversight and regulation, that it made the financial crisis much deeper and pervasive than it otherwise would have been.”

SEC Chairman Arthur Leavitt changed his opinion of Brooksley Born:

“I could have made a difference… I could have done much better.”

In a stunning testimony Alan Greenspan said to Congress after retiring:

“Markets regulate themselves was a flaw. View was not right.”

Greenspan realized that his anti-regulation philosophy had deep flaws.

Simply stunning.