Please take 25 min to view this presentation – Columbia Economist Dr. Jeffrey Sachs Speaks Candidly About Reform
All bubbles form and peak in a similar manner. They go unnoticed for years, and then transition from linear growth through a parabolic blow-off stage before collapsing. The next bubble is following that exact same trajectory and we have certainly hit the parabolic phase. Some may think the bubble to which I refer is the bond market, or even gold. However, the bubble I am referring to is the fraud bubble. I have been echoing the research done by many others since the root causes of the financial crisis were uncovered in early 2009. It’s encouraging that a prominent insider like Jeffrey Sachs has gone to the top of the mountain and started shouting.
The fraud bubble will pop regardless if we address it in a managed way, or in the traditional uncontrolled way due to all the malinvestments. Obviously, it would be less damaging and disruptive if we would simply start prosecuting the frauds, and demand transparency. However, as Jeffery Sachs states, I don’t see any evidence of this happening any time soon.
I brought you excerpts from Professor Sachs’s presentation a couple of weeks ago, but to hear the presentation in its entirety drives home the message. A UPI writer captured the problem in a similar fashion in his article titled, America’s most tolerated dangers.
“But the United States faces other more immediate, yet tolerated, dangers that have done and are doing irreparable harm to the nation. Sadly, these dangers don’t provoke enough public fury or even attention to motivate corrective action.
These tolerated threats are bad governance, hubris and self-delusion. Bad government is so wide spread that the public accepts Washington’s dysfunctionality as the new norm. And hubris and self-delusion have been so assimilated into the national culture and vocabulary as to be an integral part of this new norm as cancer is to healthy human cells.”
Imagine how foreigners feel about the United States when they receive all the consequences for our knee jerk, self-centered decisions, without getting any of the self-diluted, filtered rhetoric and benefits. Put another way, Congress has an approval rating in the U.S. of less than 10 percent, how can foreigners have a higher approval rating of our country when their family and friends are acceptable collateral damage from our attacks – both from bombs, and subprime debt sold as AAA and collateralized with shoddy derivatives?
I cannot help but think of the attitudes many Americans have toward rogue countries like Iran, N. Korea, etc. Anyone that knows people or listened to defectors from these “sinister” countries knows that it’s not the general population that’s sinister, it’s the leaders. A question that often comes to mind about these countries is, why don’t the people rise up and rebel against such oppression? I would say, our country needs to look in the mirror and ask ourselves why we don’t rebel against our own in-your-face frauds that are unquestionably destroying this country. One could also argue that due to control fraud, most are guilty because they accept, endorse, or promote the fraud by participating in its business and bounty.
All of the tyrannical countries that suppress their people have one thing in common, they have confiscated the guns of their citizens. These citizens have little means to rebel, and yet some still do, risking everything. We have a peaceful process, because we still have a 2nd Amendment, and yet we do nothing. If I was asked, what do you expect the average Joe to do? I would say there are many simple things that will get your voice heard. The three biggest fraudsters are the money-center banks, politicians, and the media. My specific actions are focused on these groups, and include:
1) Transfer all assets out of the big banks / hedge funds (Citibank, JP Morgan/Chase, Bank of America, Wells Fargo, Morgan Stanley, Goldman Sachs) to local banks, credit unions, and discount brokers like Scottrade. Register stocks in “your name”, not “street name”, and own a percentage of your assets in gold/silver outside the system. Counter-parties must be removed between you and your money, or you risk being Cyprus’ed or MF Global’ed. As much as possible, avoid doing business with companies that use these banks for financing. For example, GE Capital has refused to extend loans to gun shops. They are free to make that business decision, but we are also free to boycott any business that uses GE Capital and tell them why. All of these institutions are well documented fraudsters, that includes laundering money for drug cartels. You should be getting as much money as possible out of the system anyway, so this is a win-win.
2) Turn off ALL news from the Mainstream Media. This includes the major networks, cable news, and talk radio that is funded by large corporations like Clear Channel. The media should be our advocate and not the banksters, even if they are dependent on them rolling their debt. They must fear their ratings more than their lenders. Other banks will lend them money, if they do the right thing and perform true investigative journalism, which will attract back the viewers.
3) Most important, stop voting these jackass politicians back into office simply because they make promises they can never keep. Unless a politician is willing to run on a platform that includes term limits, no corporate donations, and a requirement for them eat their own cook’n (live with the same laws they pass, and they can start with Obamacare), then they should not get your vote. In fact, voting out EVERY incumbent is an immediate way of installing our own version of term limits.
“Open your eyes. Put your ear to the ground like the Indians use to do. Are they (govt) coming or going? That is a very important question that you have to answer in your mind.” – Martin Armstrong
Now, go listen to Professor Sachs!