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Tenth Anniversary of Financial Collapse, Preparing for the Next Crash
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Ten years ago, there was panic in Washington, DC, New York City and financial centers around the world as the United States was in the midst of an economic collapse. The crash became the focus of the presidential campaign between Barack Obama and John McCain and was followed by protests that created a popular movement, which continues to this day.

Banks: Bailed Out; The People: Sold Out

On the campaign trail, in March 2008, Obama blamed mismanagement of the economy on both Democrats and Republicans for rewarding financial manipulation rather than economic productivity. He called for funds to protect homeowners from foreclosure and to stabilize local governments and urged a 21st Century regulation of the financial system. John McCain opposed federal intervention, saying the country should not bail out banks or homeowners who knowingly took financial risks.

By September 2008, McCain and Obama met with President George W. Bush and together they called for a $700 billion bailout of the banks, not the people. Obama and McCain issued a joint statement that called the bank bailout plan “flawed,” but said, “the effort to protect the American economy must not fail.” Obama expressed “outrage” at the “crisis,” which was “a direct result of the greed and irresponsibility that has dominated Washington and Wall Street for years.”

By October 2008, the Troubled Asset Relief Program (TARP), or bank bailout, had recapitalized the banks, the Treasury had stabilized money market mutual funds and the FDIC had guaranteed the bank debts. The Federal Reserve began flowing money to banks, which would ultimately total almost twice the $16 trillion claimed in a federal audit. Researchers at the University of Missouri found that the Federal Reserve gave over $29 trillion to the banks.

This did not stop the loss of nine million jobs, more than four million foreclosures and the deep reduction in wealth among the poor, working and middle classes. A complete banking collapse was averted, but a deep recession for most people was not.

The New Yorker described the 2008 crash as years in the making, writing:

“…the crisis took years to emerge. It was caused by reckless lending practices, Wall Street greed, outright fraud, lax government oversight in the George W. Bush years, and deregulation of the financial sector in the Bill Clinton years. The deepest source, going back decades, was rising inequality. In good times and bad, no matter which party held power, the squeezed middle class sank ever further into debt.”

Before his inauguration, Obama proposed an economic stimulus plan, but, as Paul Krugman wrote, “Obama’s prescription doesn’t live up to his diagnosis. The economic plan he’s offering isn’t as strong as his language about the economic threat.”

In the end, the stimulus was even smaller than what Obama proposed. Economist Dean Baker explained that it may have created 2 million jobs, but we needed 12 million. It was $300 billion in 2009, about the same in 2010, and the remaining $100 billion followed over several years — too small to offset the $1.4 trillion in annual lost spending.

New York Magazine reports the stimulus was “a spending stimulus bigger, by some measures than the entire New Deal.” But unlike the New Deal, which benefited people at the bottom and built a foundation for a long-term economy, the bi-partisan post-2008 stimulus bailed out Wall Street and left Main Street behind.

Wall Street executives were not prosecuted even though the financial crisis was in large part caused by their fraud. Bankers were given fines costing dimes on the dollar without being required to admit guilt or having their cases referred for prosecution. The fines were paid by shareholders, not the perpetrators.

Protest near Union Square in New York, April, 2010. Popular Resistance
Protest near Union Square in New York, April, 2010. Popular Resistance

Still at Risk

Many of the root causes of the crisis remain today, making another economic downturn or collapse possible. The New Yorker reports that little has changed since 2008, with Wall Street banks returning to risky behavior and the inadequate regulation of Dodd-Frank being weakened. Big finance is more concentrated and dominant than it was before the crash. Inequality and debt have expanded, and despite the capital class getting wealthier in a record stock market with corporate profits soaring, real wages are stuck at pre-crisis levels.

People are economically insecure in the US and live with growing despair, as measured by reports on well-being. The Federal Reserve reported in 2017 that “two in five Americans don’t have enough savings to cover a $400 emergency expense.” Further, “more than one in five said they weren’t able to pay the current month’s bills in full, and more than one in four said they skipped necessary medical care last year because they couldn’t afford it.”

Positive Money writes: “Ten years on, big banks are still behaving in reckless, unfair and neglectful ways. The structural problems with our money and banking system still haven’t been fixed. And many experts fear that if we don’t change things soon, we’re going to sleepwalk into another crash.”

William Cohen, a former mergers and acquisitions banker on Wall Street, writes that the fundamentals of US economy are still flawed. The Economist describes the current situation: “The patient is in remission, not cured.”

From Occupy Washington DC at Freedom Plaza
From Occupy Washington DC at Freedom Plaza

The Response Of the Popular Movement

Larry Eliott wrote in the Guardian, “Capitalism’s near-death experience with the banking crisis was a golden opportunity for progressives.” But the movement in the United States was not yet in a position to take advantage of it.

There were immediate protests. Democratic Party-aligned groups such as USAction, True Majority and others organized nationwide actions. Over 1,000 people demonstrated on Wall Street and phones in Congress were ringing wildly. While there was opposition to the bailout, there was a lack of national consensus over what to do.

Protests continued to grow. In late 2009, a “Move Your Money” campaign was started that urged people to take their money out of the big banks and put it in community banks and credit unions. The most visible anti-establishment rage in response to the bailout arose later in the Tea Party and Occupy movements. Both groups shared a consensus that we live in a rigged economy created by a corrupt political establishment. It was evident that the US is an oligarchy, which serves the interests of the wealthy while ignoring the necessities of the people.

The anti-establishment consensus continues to grow and showed itself in the 2016 presidential campaigns of Senator Bernie Sanders and Donald Trump. They were two sides of the same coin of populist anger that defeated Jeb Bush and Hillary Clinton. Across the political spectrum, there is a political crisis with both mainstream, Wall Street-funded political parties being unpopular but staying in power due to a calcified political system that protects the duopoly of Democrats and Republicans.

Occupy Wall Street 2011
Occupy Wall Street 2011

Preparing for the Next Collapse

When the next financial crisis arrives, the movement is in a much stronger position to take advantage of the opportunity for significant changes that benefit people over Wall Street. The Occupy movement and other efforts since then have changed the national dialogue so that more people are aware of wealth inequality, the corruption of big banks and the failure of the political elites to represent the people’s interests.

There is also greater awareness of alternatives to the current economy. The Public Banking movement has grown significantly since 2008. Banks that need to be bailed out could be transformed into public banks that serve the people and are democratically controlled. And there are multiple platforms, including our People’s Agenda, that outline alternative solutions.

We also know the government can afford almost $30 trillion to bail out the banks. One sixth of this could provide a $12,000 annual basic income, which would cost $3.8 trillion annually, doubling Social Security payments to $22,000 annually, which would cost $662 billion, a $10,000 bonus for all US public school teachers, which would cost $11 billion, free college for all high school graduates, which would cost $318 billion, and universal preschool, which would cost $38 billion. National improved Medicare for all would actually save the nation trillions of dollars over a decade. We can afford to provide for the necessities of the people.

We can look to Iceland for an example of how to handle the next crisis. In 2008, they jailed the bankers, let the banks fail without taking on their debt and put controls in place to protect the economy. They recovered more quickly than other countries and with less pain.

How did they do it? In part, through protest. They held sustained and noisy protests, banging pots and pans outside their parliament building for five months. The number of people participating in the protests grew over time. They created democratized platforms for gathering public input and sharing information widely. And they created new political parties, the Pirate Party and the Best Party, which offered agendas informed by that popular input.

So, when the next crash comes. Let’s put forward a People’s Agenda. Let’s be like Iceland and mobilize for policies that put people first. Collectively, we have the power to overcome the political elites and their donor class.

(Republished from Popular Resistance by permission of author or representative)
 
• Category: Economics • Tags: Financial Crisis, Wall Street 
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  1. !6 Trillion. 29 Trillion? Ridiculous stupidity.
    Even 700 billion Tarp was only extended credit. But than Obama started to print money app. 70 billion a month for about two years. That is all.

  2. An Aussie says:

    We can look to Iceland for an example of how to handle the next crisis.

    How did they do it?

    In 2008, Iceland had a population of 317k.

    IMO, that’s how.

    In 2008 that is roughly the population of Bakersfield, California, the 57th city by population according to http://archive.boston.com/news/nation/articles/2008/07/09/population_of_us_cities_2007/

    A similar argument is made for gun control, “Why not just do what Australia did?” – ie buy back all our guns and destroy them. Primarily because the population is 10 times the size and would require 10 times the funding (although more in guns case as Americans own more per capita than we did – we only had to buy back 1M guns). And the second amendment, etc.

    In the case of the bank collapse, the population difference was ~1000 times.

    Not bailing out the banks was a gutsy move for Iceland, but I have a feeling it wouldn’t have worked for the US.

    • Replies: @Miggle
    , @FB
  3. Biff says:

    In 1997 there was a financial meltdown that centered mostly in SE Asia, but South Korea was hit hard too. Not sure how some of the other countries handled it, but Thailand specifically did not bailout the banks or anyone else. Many half built buildings in Bangkok remained that way for the next ten years. The IMF tried to move in loan sharking bailouts, but were run off like a feral dog. They just took the hit square on the chin, and today the Thai economy is doing just fine – all of those half built buildings have been taken down and replaced.

    The IMF and World Bank criminal’s to this day still want to turn Thailand(and many other countries i.e. Greece) into a financial carcass to feed off, but the Thais are keeping them, and their bought and paid for politicians(Thaksin) at bay.

    To this day Americans still don’t recognize Obama for what he was hired/paid to do.

    • Agree: Godfree Roberts, Iris
  4. Thomm says:

    We also know the government can afford almost $30 trillion to bail out the banks. One sixth of this could provide a $12,000 annual basic income, which would cost $3.8 trillion annually, doubling Social Security payments to $22,000 annually, which would cost $662 billion, a $10,000 bonus for all US public school teachers, which would cost $11 billion, free college for all high school graduates, which would cost $318 billion, and universal preschool, which would cost $38 billion.

    This is open socialism, which is now being pushed brazenly on Unz.com.

    • Replies: @Per/Norway
    , @FB
    , @Rich
  5. anon[270] • Disclaimer says:

    Anyone who thinks the next one will resemble the last one will be disappointed. They are never the same. Even the last one was mostly shadow banking.

  6. m___ says:

    Fighting the next crash from within the system? Starting the fight after the next crash? Good riddance.

    There seem to be many more Chomsky impersonators at Unz. Add Nomi Prins, and numerate others to whine up the moon.

  7. Yes, Communism, that’s the ticket! We can take OPM via a coercive massive Feral Gov’t and re-distribute it to whomever we think deserves it!

    Nobody, I mean nobody, has ever tried this shit before, err, I mean, not this way. That’s some thinking outside the box, guys. Kudos, Komerades!

  8. ”National improved Medicare for all would actually save the nation trillions of dollars over a decade. We can afford to provide for the necessities of the people.”

    Doubt it, the number of gray hairs will be reaching critical load over the next decade. Then, especially in the US, the sheer number of diabetics, pre-diabetics and otherwise obese or stupid is reaching an additional critical mass. Even in the Netherlands, the government is backing down on Medicare for these reasons, and we don’t even have the number of fatties.

    Besides the banking money was ”loaned” or in other words, for some future unicorn population to pay back. Spent to prevent a full collapse, one that was only postponed it appears.

    • Replies: @Colin Wright
  9. “We also know the government can afford almost $30 trillion to bail out the banks.”

    Do ‘we’?

    You have a reference please?

  10. Miggle says:
    @An Aussie

    I think the gun buyback was a pointless stunt. It disadvantaged, oppressed, millions of rural people, to provide a guarantee against the rare possibility that some psychopath would murder 15 or 20 individuals out of 15 or 20 million. It didn’t bother most people. City people were clueless on firearms, feared them while knowing nothing. It was directed against a small minority.

    It had never been allowed anywhere in Australia to buy firearms for self-defense, only for hunting.

    To insist on that kind certainly that some rare tragedy can never happen again is totalitarianism. I don’t want to live in a country where it is guaranteed that no crime can ever be committed.

    • Replies: @An Aussie
    , @Wizard of Oz
  11. You missed the pithiest soundbite that succinctly sums it all up:

    We privatised profits and we socialised risk and losses.

    We continue to do so in a major way to prop up our oligarch class.

    Capitalism died a long time ago in the US, and its death is not just evident in the way banks are coddled. Tucker Carlson went off last week on how the US welfare system is gamed by major corporations like Amazon and Walmart to keep workers’ wages below a basic level of being able to support one’s self and family. How about reducing these companies’ tax deductions for wages by an estimate of the welfare benefits, e.g. “Food Stamps,” etc., their workers use to stay afloat?

    “We can look to Iceland for an example of how to handle the next crisis.”

    No, we should follow the example of Vietnam and execute a few bankers and other oligarchs.

    • Replies: @Biff
  12. Iris says:

    The Asian country that best overcame the 1997 crisis was Malaysia.

    Under then PM Mahathir, the country defied the IMF and refused to take loans from it.

    Instead of obeying the Washington Consensus rules, Malaysia applied completely unorthodox measures: fixing the peg of the ringgit to the dollar, selective foreign exchange controls, de- internationalisation of the ringgit. As a consequence, Malaysia preserved all her assets.

    Ironically, such unorthodox crisis measures are now recognised as innovative and efficient by the same vulture IMF.

    https://www.thestar.com.my/news/nation/2003/09/04/mahathir-was-right-says-imf/

    The 1997 crisis followed the trademark asset rip off script set up by the financial industry loan sharks. The same script has repeated time and again over decades.

  13. Great article. I’ll probably link to it.

    On a slightly related topic, “Let’s put forward a People’s Agenda.”

    India just created one of the worlds largest Public Banks.

    The mother of all banks is coming today

    . . .

    A banking behemoth will take birth at Delhi’s Talkatora Stadium today when Prime Minister Narendra Modi inaugurates the India Post Payments Bank (IPPB).

    Read more at:

    https://economictimes.indiatimes.com/industry/banking/finance/banking/the-mother-of-all-banks-is-coming-today-10-things-to-know/articleshow/65633379.cms

    • Replies: @Jus' Sayin'...
  14. An Aussie says:
    @Miggle

    Agreed on all points. Especially given gun crimes still occur, these sorts of measures mostly affect law-abiding citizens, not criminals.

  15. Biff says:
    @The Alarmist

    No, we should follow the example of Vietnam and execute a few bankers and other oligarchs.

    This.

  16. anon[393] • Disclaimer says:

    The world according to the left, one can never figure out if your stupid or crazy.
    There’s a lot of pieces to this that will lead down rabbit holes like he nature of reserve currency status fiat money and fractional reserve banking all of which have good and bad points, I can tell you with out all the fake money leftism would be dead in less than a day all leftism foreign aid down to public schools. If the productive class actually had to pay the full cost of leftism it would end in a second its only this ponzi scheme where they only need kinda sorta vote to have their great great grandchildren indentured to the debts incurred making half apes seem half human.

    As to the mortgage crisis the proximate cause was liar loans, no income no asset check no money down because other “programs” paid for closing costs, 3% down payments, insurance etc.These loans were not bankers ideas because these loans would put banks out of business in months.These loans were leftists ideas. they actually started back in the 60s and ACORN played a part. The anti red lining which to this day the NY Times will rant about was one of the progenitors. Yes it turned out banks didn’t want to make loans in areas where their recourse was worthless, where a defaulted mortgage and foreclosed home was worthless for many reasons, one people were fleeing these areas from minority crime and dysfunction so everything was for sale and nothing was moving, a property left vacant even a day was ransacked for mungo, the odds of getting a lefty city government to evict minorities let alone without a riot was zero. And of course the people in the hood or possibly interested in it were predominantly broke and with no or bad credit The left discovered that these redlined hoods were not getting loans and so it must be racial hatred. Of course when one looks at who did invest in these areas the jews we know what would have actually happened if the government were giving away free mortgages to buy up the hoods.

    Over several presidencies the idea of doing something increased. the Banks had charters and had to comply at first it was only a general admonishment to do better maybe find a few exceptionals or just write a mortgage or two a year off to compliance costs of business.

    Clinton began to ramp up the the law and put some real pressure on it But Bush the cuck leftist with his thousand points of light idiotic brainstorm was the real moron. His reasoning was if the poor could own homes they would like others become home equity rich, no more poor voila! Theres so many retarded assumptions about this idea I wont bother.

    The practical problem to implementing this lunacy was the banks and how they loaned mortgages since world war two,They used to be limited to how many loans they could make i(n a fractional reserve way) to how many deposits they took in. But the feds decided home ownership was a good thing for the nation (and it did create a big part of our economy and spread wealth in the process)

    So when the federal governments demanded the banks write mortgages for low IQ bad credit welfare collecting blacks and illegal aliens working off the books foe cheap often in shitholes no one else would buy in; the banks explained that it would put them out of business in months because the way the system worked since ww2 is the banks would loan out all their deposits times 9 then the feds would buy those loans insure them and resell them, but that the feds had standards for the loans and these new loans would not meet those standards and the banks would be left with them and go bankrupt.

    The feds said they now making new standards and they would buy liar loans from illegal aliens and welfare blacks they would buy refinance loans from welfare queens o they could buy an SUV with the home equity that would ensue from all the fake money sloshing around as more welfare queens discovered the scam from some storefront mortgage broker in the hood who would do all the paperwork and all you had to do was sign while the more experienced welfare queens and illegal aliens discovered they could move to even better hoods with the free money.

    the background of all this was a real estate bull market caused in part by massive illegal immigration we had yet to notice, and because the dot com crash had made many with money scared of the stock market and the quantitative easing the feds ( Alan Greenspan Ayn Rand’s protege no less) has re inflated the economy with cheap money and driven rates down making real estate affordable to more pent up post recession buyers. So this realestate bull market drew in investors but they were limited by their income and debt ration so they couldnt buy a second house on credit if they already had their own home on a loan unless they had the excess income to justify two loans, people were slowly building equity in investment properties to the point they might own a property outright. The boom was doing well with all the new citizens and a recessions worth of pent up byers and low rates.

    But then word got out from mortgage brokers that these liar loans for minorities didn’t actually say for niggers only and an investor could do a no income asset check loan for a flip and skip the years of slowly building up equity over a series of properties before actually having collateral for a loan. So now everyone was into the liar loan game. And crazy as it was the feds had made clear any bank that did not loan to useless minorities was going to lose their charter but if they did as told they would collect commissions on sold loans forever and make millions.

    The feds had a little problem too now they used to sell those loans on the bond market insuring them to make them more appealing but the ratings agencies might balk at these low quality loans, it turned out the niggers were defaulting lower than would be expected because whenever they got behind a fw payments some storefront broker offered to refinance with a home equity loan giving them enough cash for a flat screen SUV and another year or two of mortgage payments so the foreclosures were not showing up in the data same with the flippers who couldn’t really afford all those mortgages if economy tanked but they only held them long enough to find a greater fool often a group of twenty hispanics who wanted to move into the nice suburban hood next door to joe six pack how nice.So the ratings agencies kept the high ratings on the low quality loan and also they would be mixed in with better quality to lower the default rate across the bundle. The investment banks also had to keep the feds happy so they got rid of the fannie freddie fha loans for the feds so the feds could print some more money for the mortgage lenders.

    Its funny how the left loves to tell this story and mention all the crazy shit that went on but leave out the most salient point it was a socialist scheme to transfer wealth to minorities through home ownership that they couldn’t manage they didn’t have the wits to know what and where to buy or how to buy or how to pay for it the scheme only worked when whites did it all for them and absorbed all the costs and eventually collapsed when we ran out of enough whites

  17. “We can afford to provide for the necessities of the people.”

    If the people you’re referring to are Jewish/Zionist/Israeli then yes, of course, America has enough money to provide for all their necessities. America’s politicians wouldn’t have it any other way.

  18. Biff says:
    @anon

    it was a socialist scheme to transfer wealth to minorities through home ownership

    Would you like extra ketchup for your Whopper?

  19. Thank you SO MUCH, Mr. #393! You spent a lot of time to properly explain what the real problems were/are and how stupid the ctrl-left’s “solutions” are. I just don’t have the heart to try to explain enough history, economics, and politics anymore – I just let them know that they are the present-day Commies, or New Bolsheviks, if I may.

    I doubt they will read your whole informative comment, much less understand anything even if they do read it thoroughly. Some people ya’ just cain’t reach …

    I just gotta keep reminding myself that it’s that time of the century again, when the Commies start crawling out of the woodwork.

    • Replies: @peterAUS
  20. How many Jews in Iceland?

    • Replies: @nsa
  21. The problem with the Iceland parallel is that it’s hard to see how it could apply anywhere else. Iceland is a tiny country (300 000 people), It’s an island, geographically remote and with a currency which plays no role whatsoever in the world economy. In addition, the open cynicism of these authors makes any argument they put forward dubious. One can never be sure if they really mean what they say or are merely trying to manipulate people into furthering their personal agenda.

  22. Great, a People’s Agenda with guaranteed income and healthcare. Sign me up. Also, sign up the 40 million illegal immigrants now with drivers licenses or stolen identities. Liberals are hilarious. They think open borders and a generous welfare state can co-exist.

    • Replies: @Digital Samizdat
  23. Agent76 says:

    May 21, 2013 Why the whole banking system is a scam

    Godfrey Bloom MEP • European Parliament, Strasbourg, 21 May 2013 • Speaker: Godfrey Bloom MEP, UKIP (Yorkshire & Lincolnshire).

    The Federal Reserve Explained In 7 Minutes

    • Replies: @Agent76
  24. TG says:

    Indeed. Especial kudos for mentioning that the bailout cost way way more than the “Tarp” program. Some additional thoughts though.

    1. Our financial economy is now so subsidized and rigged, I wonder if it is even possible to have a traditional financial-style collapse? I mean, the stock market is high only because the companies are borrowing like crazy to boost their stock prices, and the Federal Reserve will manufacture unlimited money to boost and bail out financial firms. However, on its own this won’t cause hyperinflation, because this money is mostly not making it back onto Main Street, it’s just money chasing money in the the clouds. I suggest that perhaps the next collapse will be triggered by physical matters, as massive immigration fuels continued population growth, and the real economy is starved of the massive physical investment needed to deal with this and our own industrial base is gutted by free trade agreements. A physical collapse cannot be papered over by financial manipulation…

    2. There will be no revolution, sorry. Look at Barack Obama, for eight years he was as corrupt a whore to big money as any US politician, and the man is still treated as a secular saint. The Democrats are for Wall Street bailouts and eternal pointless wars etc.etc. but people will keep voting for them because Trump is a fascist, a racist, “literally Hitler.” I mean, CNN told them so, so it must be true. Meanwhile, even though it looked like the Republicans for a moment were going to deal with reality, they too have mostly been co-opted into mindlessly supporting Trump because the Democrats are “socialists” (hah! Lenin would have had a good laugh at that one) and Nancy Pelosi is weird.

    We’re doomed.

  25. Agent76 says:

    Mar 20, 2017 US Debt of $20 Trillion Visualized in Stacks of Physical Cash

    Showing stacks of physical cash in following sequence: $100, $10,000, $1 Million, $2 Billion, $1 Trillion, $20 Trillion

  26. @Miggle

    I think you’ll find what common sense might predict, namely, that deaths by shooting have declined in per capita terms. Maybe people still manage to commit suicide as reliably by other means but there can have been no substitute for accidental shootings.

  27. Agent76 says:
    @Agent76

    The Fed Audit

    GAO (Government Accountability Office) report Of the Federal Reserve.

    http://www.gao.gov/new.items/d11696.pdf

    • Replies: @Vidi
  28. densa says:
    @anon

    Lotta truth in this one. The economy has been in a cycle of the Fed blowing bubbles to keep the previous Ponzi’s collapse from going supernova. They took the whole HUD scam and ran it large. In Chicago at least, there was even a mortgage company specifically for illegal aliens.

    Although easy money was allegedly to help the lower classes, its political weight came from the banking class. Borrowers no longer had to be sound, but bankers no longer had to make sound loans. It was a win-win for the Obama transformation.

    Basically the have turned the dollar into toilet paper. What happened in real estate is not much different than what happened in education, healthcare and defense, just to name a few. The economy stopped functioning decades ago.

    Anyone read the ‘People’s Agenda,’ the sections on open borders? Crikey. Every time you think, “If only the Tea Party and Occupy could set aside their differences….” That will never happen.

  29. nsa says:
    @Dagon Shield

    “How many jews in Iceland?”
    Nice……you arrived at the very essence of the problem in just five words.

  30. Mechanism of collapse of US dollar.

    Dollar will not collapse under internal pressure. That is simply out of question. Bubbles come and go but their influence is minimal.
    Collapse of US dollar will happen by only these two ways.
    One way would be that the World Wide bond market simply will not be able to carry the weight of US debt anymore.
    Second way could be that majority of the countries will stop using US dollar as reserve currency.
    Every country to participate on world market must buy US currency. In this transaction certain amount of profit flows back to US banks, and that buttresses the US dollar.
    If this stops the US dollar will experience loss of value of such extent that it will result hyperinflation in US.

  31. @Bragadocious

    In fairness to the authors of this piece, they never really raised the immigration question here. But you’ve got a point about welfare states and open borders being in conflict.

    • Replies: @Bragadocious
    , @densa
  32. ‘…The Federal Reserve began flowing money…’

    This is getting ridiculous. It seems to have become literally fashionable to ignore the distinction between a transitive and an intransitive verb. You can’t ‘flow’ something. You can ‘flow’ to it, or allow it to ‘flow’; but that verb can’t take a direct object.

    Aside from everything else, it’s just mentally lazy. Think of a grammatically correct way of expressing the same thing. Here:

    ‘…the Federal Reserve began directing a flow of money to…’

    Was that so hard?

  33. @Thomm

    i believe he cant have used his brain typing this essay tbh…

  34. densa says:

    But they do.

    And there are multiple platforms, including our People’s Agenda, that outline alternative solutions.

    Item 3 on the People’s Agenda.

    End exploitation of people in the US and abroad. End discrimination in all forms, guarantee equal civil rights, and the right of people to travel across borders to work and live. Make the Universal Declaration of Human Rights and other international treaties that protect civil and political rights a reality. Negotiate reparations for Native Americans and African Americans. End deportations and create a welcoming path to citizenship for immigrants.

    Open borders and reparations. Conservatives aren’t people.

    • Replies: @prusmc
  35. @T.Theodore

    ‘”National improved Medicare for all would actually save the nation trillions of dollars over a decade. We can afford to provide for the necessities of the people.”’

    I’m suspicious. My wife and I wound up being more or less forced to accept free health care starting about three years ago. That’s a story in itself, but to stick to the point…

    We’re both essentially healthy as horses. However, now I see doctors, have various procedures that I never would have had before, etc. My wife goes absolutely nuts. Every ache, pain, twinge calls for a visit to the doctor and some pointless test that somebody must pay for that reveals that (yawn) nothing is wrong at all.

    Arguably, at some point, something will be found that had it gone undetected would have led to still greater expenses down the road. However, to date, we have incurred maybe fifty thousand dollars in medical bills that we wouldn’t have otherwise, and all for virtually no benefit — bills that we didn’t have to pay, but somebody must have.

    In my defense, I can only say that none of it was my idea. I was entirely willing to continue with our high-deductible, modest premium private coverage.

    National healthcare for all is probably the way to go, but numerous changes in the institutional culture need to be made first. Aside from everything else, we’re going to have to ration health care somehow. We simply can’t afford to administer every conceivable test and procedure to every person in the population who might possibly benefit.

    • Replies: @Jus' Sayin'...
  36. Anon[257] • Disclaimer says:
    @anon

    Wonderful post that’s exactly what happened.

  37. @Digital Samizdat

    Liberals never voluntarily bring up immigration, unless they see an opportunity to call someone a bigot or racist.

  38. peterAUS says:
    @anon

    Good post.
    Puts a nice and much needed balance to the article and obvious agendas behind it.

  39. peterAUS says:
    @Achmed E. Newman

    …I doubt they will read your whole informative comment, much less understand anything even if they do read it thoroughly…

    Definitely.

  40. @Si1ver1ock

    Those of you so excited by the idea of “public banks” should pause for a moment and consider who will be running such banks, deciding who will receive loans, the terms of those loans, and ultimately whose debt will be forgiven., i.e., paid for by taxpayers. A little thought and you will realize that the people running such “public banks” will be the same corrupt politicians, politicians’ friends and relatives, and political appointees as currently swarm within the DC beltway and its outposts. But now these scum will have direct access to the bank vaults.

    BTW, I cannot understand the prog obsession with Occupy Wall Street, Black Lives Matter, the anti-gun shenanigans of Master Hogg, and other such Soros-funded and managed movements. Holding these scams up as heroic forces for political and economic reform is idiotic. These outfits are mostly manned by simpleton spawn of the privileged managerial class and underclass elements every bit as estranged from most of the population. Their main impact, speaking from personal experience and observation, is to estrange the very people they are supposed to convince.

    OTOH, the Tea Party – unsupported by billionaires and other big bucks donors, independent of any control by such wealthy individuals and other members of the establishment, and universally, reviled by the establishment and its MSM and prog lackeys – operated in an orderly fashion that convinced many of their fellow citizens to vote for and elect Tea Party candidates, This was the first real crack in the establishment’s political fortress. It foreshadowed and hastened the successful assaults on the political establishment by Sanders and Trump.

    The best hope for the radical, revolutionary change this nation needs is the populist right not the elitist, failed pseudo-Marxism of today’s progs and their ilk.

    • Replies: @peterAUS
    , @Si1ver1ock
    , @anon
  41. prusmc says: • Website
    @densa

    Why the $10,000 bonus for teachers? How about police and fire fighters, they’re public hero’s also? What about supermarket clerks? If every 18 year old could be given $10,000 in addition to free college, textbooks and room and board, think how many automobiles could be purchased. I want my share of other peoples money.

    • Replies: @densa
  42. @anon

    Basically, you nailed it but you might have sugar coated the rhetoric a bit so as not to give prog readers apoplexy. If these readers manage not to blow a gasket before finishing what you’ve written, if they consider logically the bedrock points you’ve made, they will have to concede the main points you’ve made. These might set them on the road to enlightenment.

  43. FB says:
    @Thomm

    ‘This is open socialism, which is now being pushed brazenly on Unz.com.’

    Whereas we debt and wage slaves among the dying middle class should prefer OPEN SOCIALISM FOR THE 0.01 PERCENT…?

    Never ceases to amaze me that the ones who don’t have a pot to piss in are the ones most reflexively supporting the Ponzi bankers and corporate thugs who get trillions in corporate welfare…

    Even Warren Buffet says there’s something wrong with a system where he pays less taxes than his office secretary…

    Clearly defective genetics are at play here, since undermining your own survival requires stupidity of a truly stupendous sort…

    • Agree: Biff, Vidi
    • Replies: @Thomm
    , @anon
  44. FB says:
    @An Aussie

    The more notable fact is that Iceland, a nation of 300,000 people and completely geographically isolated, with no neighbors for thousands of miles…can even survive.much less THRIVE…with a high standard of living, no real poverty or other social problems etc…

    Anyway the point of the example is valid…the choice is a simple binary one…either an enslaved populace is here simply for enriching a tiny parasite class running a Ponzi Scheme that is bound to collapse…or to act rationally for the good of society at large…

    Nothing new or ‘leftist’ in this simple calculus…Henry Ford knew that he cars would never amount to anything unless the factory worker could afford to buy one…such simple logic has long since been thrown to the side of the road…

    • Replies: @Squarebeard
  45. @Colin Wright

    I am completely middle class, middle of the middle of the middle. I am also quite healthy for a man aged 70. Before I went on Medicare two years ago, I had more than adequate medical treatment, mostly paid for by a private insurance plan. The average annual out of pocket costs for my medical care was well under $1,000 for the preceding fifteen years and this included several “procedure”, i.e. standard surgical interventions, and ER trips after some injuries caused by accidents. My insurance company, by my best estimate forked over an average annual amount of about $4-$6,000 for an annual average total expenditure that can’t have been more than $7,000.

    In the two years since I’ve been on Medicare the taxpayers have paid about $75,000 per year for my medical care. This has included expensive, mandated procedures that I neither needed nor wanted, too many to count medical tests ordered by my doctor from fear of Medicare repercussions otherwise, and an expensive course of treatment for a minor condition without serious consequences that I’d lived with for decades. I chose the last after discovering that Medicare was more than willing to pay for my treatment.

    The theory that universal, tax payer funded medical care will lower medical costs is just another insane prog fantasy.

    • Replies: @Colin Wright
    , @anon
  46. Thomm says:
    @FB

    Socialism FAVORS the super-rich, you fool. They can rig the government in their favor.

    You are definitely an example of the defective genetics you menti0n. You are probably a WN wigger yourself (and therefore a homosexual).

    The fairest system is small government/free markets libertarianism.

    • Replies: @Biff
  47. peterAUS says:
    @Jus' Sayin'...

    Those of you so excited by the idea of “public banks” should pause for a moment and consider who will be running such banks, deciding who will receive loans, the terms of those loans, and ultimately whose debt will be forgiven., i.e., paid for by taxpayers. A little thought and you will realize that the people running such “public banks” will be the same corrupt politicians, politicians’ friends and relatives, and political appointees as currently swarm within the DC beltway and its outposts. But now these scum will have direct access to the bank vaults.

    THIS !

    …The best hope for the radical, revolutionary change this nation needs is the populist right

    Yup.

  48. @Jus' Sayin'...

    America has one Public Bank, the bank of North Dakota.

    People don’t understand banking very well.

    Read more here:

  49. MarkinLA says:
    @anon

    As to the mortgage crisis the proximate cause was liar loans, no income no asset check no money down because other “programs” paid for closing costs, 3% down payments, insurance etc.These loans were not bankers ideas because these loans would put banks out of business in months.

    What a load of crap. The cause was Wall Street buying these loans without any due diligence and quickly packaging them off to places like Iceland as AAA securities. Soon the banks realized they could make any crap loan that floated across their desk and sell it as fast as it was made. They, the unregulated mortgage companies and mortgage brokers all got in the game and the amount of loans made was in the trillions. NOBODY forced anybody to make these loans. Not the government, not the CRA, not Clinton, not ACORN.

    This kind of activity ALWAYS happens in a bubble. Everybody knows it is a bubble and everybody knows they should get out. However, they are all making too much money and they think they will be smart enough to jump off when the peak hits. One in a thousand wins.

    Do you realize how much money the banks were making by funding a loan and then selling it off two weeks later while keeping the servicing fees? Each time they did that they pocketed fees which, even if just a few percentage points of the loan, amounted to tons of money when you did it over 20 times a year. Imagine all the bonuses for everybody in the loan business.

    The race of the people borrowing or the fact that they had no income had nothing to do with who got loans. Most prime borrowers already had homes and mortgages that they were well on their way to paying off and had no reason to borrow more money. The lower FICO people were just the only thing available. A lot of young white construction workers building those homes also got those crappy loans. The poor people took them even if they knew what was going on because it effectively lowered and froze their rent for 5 years until the interest rate reset. If you were a renter with no possibility of ever owning a house you would have been stupid for not doing it too.

  50. I have been thinking about a plan to actually address the mounting and unpayable pile of debt that faces this nation. When it comes to retiring debt, there are only three possibilities: pay it off, default on it, or inflate it away. Every one of these options involves pain, self-sacrifice, and discipline, so it is no use looking for the easy way out. There is no easy way out. What we must ask ourselves is, “Which way of retiring the debt would be least disruptive to the lives of ordinary people while also allowing the nation to keep functioning and to get back on the right track?”

    I have concluded that inflation is the most benign of the three options, but inflation has certain pitfalls of its own that should be avoided if possible. We also desperately need to find a way to encourage savings and investment, which isn’t very compatible with an inflationary monetary regime. Additionally, we also need to find a way to stimulate employment so that we can rebuild our crumbling infrastructure. Is there some way to do all of these things at once? I believe there is if we manage the monetary easing so that it is tilted very much towards workers and savers, very much away from banks and Wall Street, and does not punish employers.

    The first part of the plan requires putting more money in the pockets of people who work; we need “QE for the little people.” Something in the nature of a reverse income tax, or something equivalent to it, is very much called for.

    I believe the quickest and best way to accomplish this is simply to mandate an increase in wages. Wages need to go up by a whole heck of a lot, probably doubled or tripled, and this should be required by law. “But doesn’t that severely punish employers and hurt profitability?” No, not the way I would do it.

    Under my plan, employers would continue to pay the same wages they are paying now. This would be the worker’s “nominal rate of pay.” The increase in wages would be contributed entirely by the federal government through some lending window that would write the money into existence. This would provide the necessary inflationary current to help retire private debt while leaving employers whole. Also, by connecting disbursement to employment, we avoid the socialistic nonsense of Universal Basic Income. If you don’t have a job, you don’t get the economic pop. This would massively stimulate job-seeking, especially if welfare benefits were gradually withdrawn at the same time. Additionally, workers would be highly motivated to seek out the employer offering the highest “nominal wage” available, so that they could get the most out of their federally provided bonus. It’s just like bowling: The more strikes you bowl, the more points you can pack into a frame. Thus, employers competing with each other for labor would have to offer the highest nominal wages they reasonably could.

    So, labor gets a big lift without employers being punished. No we have to address savings.

    The first part of the plan would be highly inflationary, since workers who suddenly find themselves with much more money to spend would be competing for the same supply of goods and services. Therefore, prices would necessarily rise, and probable rise by a lot. “But doesn’t this unduly punish the savers, the responsible people who avoided the worst excesses of the boom?” No, because we’d be paying them too.

    The second part of the plan requires that savers should receive a bonus as well. In addition to having a reverse income tax, we will have “reverse loans,” or in other words an inflation-indexed interest rate on all savings accounts which the banks would be required to pay. Any principal contributed to a savings account would be required to retain its purchasing power on a prorated basis. Savers would be kept whole and would have the confidence of knowing that they could never lose purchasing power even if they just parked their money in a bank. Thus banks, similar to the case of employers above, would compete with each other by offering interest premiums above and beyond the inflation index. Money would flow into the best performing, most profitable banks while the poor performers would go out of business. The resulting pool of savings would provide the investment capital needed for infrastructure projects and development.

    The second part of the plan would put the banks in a rather tight spot which, after two decades of free-wheeling crony capitalism, is just where they deserve to be. In order to be able to pay the inflation-indexed interest rate and the high premiums, banks would be forced to discipline themselves to only make performing loans. The credit ratings of both individuals and corporations would receive rather serious and unrelenting scrutiny, and the ability to maintain a high credit rating would once again become a fiercely guarded mark of honor.

    It goes without saying that under this plan, interest rates in the credit markets would shoot up to a Volcker-like 20-25%. Many firms (not private individuals) would liquidate due to being unable to service their borrowing costs. But this time, corporations and banks would not receive federal bailouts. They would be forced to sell themselves to their stronger competitors and their erstwhile employees would eagerly seek opportunities elsewhere.

    The high interest rates would be devastating for the stock market, which would be made the ultimate bag-holder in my new scheme. But that is the whole point. The purpose of the plan was to undo the effects of debt and financialization by tilting real economic power away from Wall Street and towards the productive economy. There would be tumbleweeds blowing down Wall Street after all this was done, since under the new regime public corporations would have to work very, very hard to convince anybody to take an equity stake in their concerns. Corporate boards would have to become much more engaged in the fundamentals of the companies they owned, and would become more paternalistic and less greedy. A whole new culture of economic discipline would be bred in the C-suits of America, for they would have no other choice.

    This plan aims to institute a virtuous circle that benefits labor, dissolves debt, encourages saving, punishes profligacy, and rewards self-discipline throughout the length and breadth of the economy. It aims to reverse the effects of the last two decades, which was the exact opposite of all of that. After a suitable amount of time has passed—say, 15 years—the provisions of this plan should be sunsetted and a gold standard reintroduced, so that citizens can continue to enjoy the disciplinary effects of sound money without the need for so much federal oversight of the financial system. In short, the plan will return things to normal, and then leave them there.

    And that is the best and most prudent policy we can have this side of the grave.

    • Replies: @peterAUS
  51. peterAUS says:
    @Intelligent Dasein

    Good post, but disagree.

    Starting with:

    If you don’t have a job, you don’t get the economic pop. This would massively stimulate job-seeking, especially if welfare benefits were gradually withdrawn at the same time.

    In the age of automation and outsourcing massive job seeking can’t work; simply not enough jobs around.
    Yes….yes…I know there are: service industry. Keyword “service”.As cleaning…..dog walking….cat grooming….nail polishing…..It was called “servitude” before. Service sounds much better. And, “no job no money” sounds as “indentured servitude”.
    It’s not about jobs. It is about what kind of jobs. What kind of work……
    An assembly worker in car/avionics/whatever industry….vs doing manicure/pedicure. Etc.

    Additionally, workers would be highly motivated to seek out the employer offering the highest “nominal wage” available, so that they could get the most out of their federally provided bonus.

    Yeah…
    Or workers would be highly motivated to get any job they can, for any pay. Any service jobs I mean.

    But, no problem there as long as there are Armed Service.
    All good.

  52. @MarkinLA

    Actually German banks were the ones that were most hit by these so called securities,
    German banks were actually more hit than US banks.
    At the time when it was going down I was under impression that it was a setup for German banks from the start.

    • Replies: @MarkinLA
  53. densa says:
    @Digital Samizdat

    Oops, my comment @ 35 was meant in reply to “they never really raised the immigration question.”

  54. MarkinLA says:
    @Ilyana_Rozumova

    Wall Street sold these crap securities to anybody who they could sell them to. They marketed them as investment grade but when the SHTF they claimed they were selling them to experienced investors who should have had the resources and expertise to understand what they were buying.

    There was no specific targeting of German banks. The FED even bailed foreign banks out as well as American. It was just that there weren’t any decent investments to be found anywhere in the world at the time and the German banks got sucked in by the relatively high rate of return on a “safe” investment.

    The main point still stands that this wasn’t some policy by “the government” looking to give away free money to Mexicans and blacks that caused it all. It is a normal occurrence of a free market system. Too many people enter the market looking to get rich quick like the first guy in did, it gets overheated into stupid territory, and eventually collapses under it’s own weight.

  55. Rich says:
    @Thomm

    I wouldn’t say that Mr Unz is “pushing” anything. It seems to me that he is one of the last men standing up for free speech in this country, allowing authors to make their case, and we, the readers, to argue pro or con. He’s doing a great service here, and I applaud him.

    • Agree: Colin Wright
    • Replies: @JackOH
  56. @Jus' Sayin'...

    ‘…In the two years since I’ve been on Medicare the taxpayers have paid about $75,000 per year for my medical care…’

    Happily, we’ve found the magic money tree, so there’s no problem.

    • Replies: @Squarebeard
  57. densa says:
    @prusmc

    I regret to inform you, if you are who I think you are, that your ‘share of other peoples money’ will be a negative number. Do you recall when the Fed couldn’t lower interest rates any further without negative interest rates? People would have moved their savings from banks to cash to mattresses. Hmmm. If only we could do away with cash and have all transactions take place on your iPhone.

    This is where your share turns negative. Once all transactions are electronic, the People’s Agenda can scale all income taxes and even price via what Sailer refers to as Pokemon points. Reparations can be taken right out of your paycheck or added to your tax bill. Conversely, more deserving people can be charged less for goods and services. The possibilities are endless and completely opaque. This also gives an open end to theft, bailouts and quantitative easing.

    Internet dissent will be a thing of the past as no one can risk having a Google tech in India unperson them. Of course, none of this will ever happen… well, unless maybe open borders leads to an unstoppable People’s Agenda constituency.

    • Replies: @peterAUS
  58. peterAUS says:
    @densa

    Good post re electronic transactions/no cash.

    But as for:

    ….Internet dissent will be a thing of the past as no one can risk having a Google tech in India unperson them.

    Not quite.
    Unpersoning isn’t/won’t be hard at all, but only for state level players.
    Even now it requires physical access to (certain) hardware, access to residential CCTV networks, and such.
    It’s way, way, beyond capability of some corporate techs, let alone in India.

    If “they” want it they’ll find/unperson you, of course. Just, “they” don’t care much for Internet dissent. And “they” are correct there.

  59. anon[352] • Disclaimer says:
    @FB

    Social Security payments to $22,000 annually, which would cost $662 billion, a $10,000 bonus for all US public school teachers, which would cost $11 billion, free college for all high school graduates, which would cost $318 billion, and universal preschool, which would cost $38 billion.”

    No, that is not socialism for the rich .

  60. anon[352] • Disclaimer says:

    Is QE printing money?
    If not does the QE come from same basic thin air of vacuum ?

    This guy doesn’t think it is printing money.

    –Why Quantitative Easing Isn’t Printing Money
    Marshall Gittler, Head of Global FX Strategy | IronFX 
    Published 3:31 AM ET Thu, 23 May 2013  Updated 6:37 PM ET Thu, 23 May 2013

    why quantitative easing (QE) is not printing money and why bank reserves aren’t money.
    Let’s take a look at the balance sheets of the actors involved. Here’s what the T-accounts for the balance sheets of each institution, showing the assets on the left and the liabilities on the right, look like before quantitative easing:

    [MORE]

    As you can see, Bank ABC’s assets consist of 50 reserves at the central bank, 50 loans and 40 bonds. The central bank’s balance sheet has assets of 70 T-bonds and T-bills, but against liabilities of 50 in reserves (the aforementioned reserves of the banks) plus 20 of notes and coins in circulation—what we usually call money. The Treasury has assets of 110 and liabilities of 110, namely the T-bonds and T-bills that the banks and the central bank hold.
    Now, the central bank embarks on quantitative easing. It buys up all the bonds that Bank ABC holds. What do the balance sheets look like now?

    Bank ABC has only shuffled the composition of its portfolio around. It’s exchanged bonds for reserves in what is no more than an asset swap. There is no increase in the size of its balance sheet.
    The central bank’s balance sheet, on the other hand, grows substantially. On the asset side it gains 40 bonds and on the liability side, reserves increase by the same amount. Note though that there is no change in cash in the hands of the public—what we know as money.
    The whole operation leaves the Treasury’s balance sheet unchanged. No new bonds are issued, no revenues received.
    So we can see that while the central bank’s balance sheet does expand, the only impact in the private sector is to change the composition of the banks’ balance sheets, exchanging bonds for reserves. The total assets of the private sector don’t change. Hence no money is being created any more than, say, if someone sold their stocks and put the money into bonds.

    Now, some people will argue that reserves are money. But let me explain why I don’t think reserves are money . What is money? Money has three functions: a medium of exchange, a store of value and a unit of account. Bank reserves are a store of value; they may be a unit of account; but they are definitely not a medium of exchange. 
    Only financial institutions can hold reserves at the central bank. You can’t go into a store and buy a loaf of bread with bank reserves, as you can with, say, a dollar bill or a checking account at a your local bank. Reserves just sit there. Although they do earn interest, that doesn’t mean they are money. You can rent out your house and get an income stream from that, too, but that doesn’t make your house money.
    Finally, one should also look at the intentions of the economic actors holding the bonds in the first place. As Nomura Research Institute Chief Economist Richard Koo points out, the banks, bond dealers or whoever held those bonds in the first place held them as a store of value, not as a medium of exchange. When the Fed buys the bonds away from them, they are apt to replace them with another store of value, such as stocks, rather than a medium of exchange. The money simply goes from one asset to another and does not contribute to expenditure that boosts growth and, ultimately, inflation. 
    Of course there is likely to be some leakage. Some of the reserves exchanged in the sale may be cashed in for money. There is also the “wealth effect” as the value of these stores of value rise, but that is not creating money, just inducing freer spending of the money that exists. 
    The process would be inflationary if the banking system were to use those reserves to increase their loans. This is the fundamental concern of those who fear that QE is going to cause inflation or hyperinflation, and it is not unreasonable. 
    However, this is putting the cart before the horse, particularly during a balance sheet recession, which why I said the purchases of gold were based on a misunderstanding. 
    As the Bank for International Settlements (BIS) put it: “In fact, the level of reserves hardly figures in banks’ lending decisions. The amount of credit outstanding is determined by banks’ willingness to supply loans, based on perceived risk-return trade-offs, and by the demand for those loans. The aggregate availability of bank reserves does not constrain the expansion directly.” 

    The proof that QE is not inflationary can be seen in Japan. Japan ran a QE regime from 2001 to 2006, and yet is still in deflation. The reason their QE didn’t work is because even with interest rates at zero, nobody wanted to borrow. There was no demand for loans. Bank lending started falling on a year-on-year basis in November 1998 and was consistently negative until September 2005. Until the banks start to lend out the reserves, no money is created and no inflationary pressures build. Q .E .D (quod erat demonstrandum). 

    CNBC

  61. Miro23 says:
    @MarkinLA

    The cause was Wall Street buying these loans without any due diligence and quickly packaging them off to places like Iceland as AAA securities. Soon the banks realized they could make any crap loan that floated across their desk and sell it as fast as it was made. They, the unregulated mortgage companies and mortgage brokers all got in the game and the amount of loans made was in the trillions. NOBODY forced anybody to make these loans. Not the government, not the CRA, not Clinton, not ACORN.

    This kind of activity ALWAYS happens in a bubble. Everybody knows it is a bubble and everybody knows they should get out. However, they are all making too much money and they think they will be smart enough to jump off when the peak hits. One in a thousand wins.

    Having been involved in this on the commercial side, it’s a fair summary. We knew it was a bubble, but like Citigroup CEO, Chuck Prince said, “As long as the music is playing, you’ve got to get up and dance”. Most people lost, some kept their winnings – for example, in the US, Salomon Brothers, and Greenberg (AIG), got the government to guarantee their junk at full dollar (to ensure the nation’s financial stability, don’t you know, and support the sanctity of contracts).

    And the Sub-Prime bubble could be a sort of parable for the present US.

    Congressmen know that Congress is rotten, Special Interests know that they’re stealing billions, the MIC and the military knows that the wars are fake. Media employees know that they are pushing lies every day. The FED and the government know that the $ trillions in debt will never be repaid, and everyone knows that Jewish activists are running/looting the place for their own account and Israel.

    However, a lot of people are making a good living out of it, and will collaborate while the music keeps playing.

  62. anon[352] • Disclaimer says:

    @ 61 the source of the article

    https://www.cnbc.com/id/100760150

  63. Biff says:
    @Thomm

    Socialism FAVORS the super-rich, you fool. They can rig the government in their favor.

    You simply repeated exactly what he said. ‘You fool’

  64. @FB

    The more notable fact is that Iceland, a nation of 300,000 people and completely geographically isolated, with no neighbors for thousands of miles…can even survive.much less THRIVE…with a high standard of living, no real poverty or other social problems etc…

    If humanity is to survive and thrive the Iceland model will have to be adopted far and wide, i.e., decentralized, self-sufficient, homogeneous communities. Mega cities and nation states run by small sub-tribes of psychopathic grifters who commandeer all the good stuff for themselves, impose their will on millions of people using brute force and psychological mind fuckery, sending them to wage war on other tribes and generally treating “their” people like expendable cannon fodder isn’t working out too well. A few hundred million disparate people under one banner got us where we are today.

    Of course it will probably never happen, at least not on a large scale, before war, starvation, disease or all of the above cull large swathes of superfluous humanity. Afterwards, the wiser survivors will rebuild in small communities of like-minded folk with minimum potential for ethnic or religious strife. If all goes well they can enjoy anywhere from a few decades to several centuries of peaceful living until they are raided by their neighbors (or are the neighbors doing the raiding) and the cycle of human folly begins all over again.

    Humans may, over time, evolve into less bloodthirsty and irrational beings, less beholden to delusions and victims of their own cognitive blind spots. Or maybe they won’t, who knows. What we do know is that decentralized groups who co-exist peacefully with their neighbors or live in isolated regions far from other people seem to enjoy a better and more stable quality of life than people in big cities and belligerent nation states.

    • Agree: FB
  65. @Colin Wright

    Spouting worn out, nonsensical cliches doesn’t make you come across as wise, smart or witty.

    • Replies: @Colin Wright
  66. JackOH says:
    @Rich

    Rich, I agree. Ron’s editorship by provocateur-ship seems to be doing no more than fulfilling the promise under his title: “interesting, important, and controversial” articles. I don’t think he’s “pushing” anything on these pages. When he has “pushed”, he’s done so as a proper political candidate, or as a practical citizen-activist garnering support for that ballot initiative of his.

    He’s also gathering good political intelligence from the number and quality of the comments here. If I were a candidate for President in 2020, I’d want a staffer to give Unz Review an eye-roll, and give me a summing-up of the political possibilities contained therein. (My Congressman’s name has been mentioned as a possible 2020 Presidential contender. I’ll have all of 30-120 seconds to make the case that Unz Review is worth a look, and it’ll take me 4-8 hours prep to exploit that brief opportunity.)

  67. @Squarebeard

    ‘Spouting worn out, nonsensical cliches doesn’t make you come across as wise, smart or witty.’

    In other words, you disagree with me, and you’re an asshole.

    Got it.

  68. anon[357] • Disclaimer says:

    “!6 Trillion. 29 Trillion? Ridiculous stupidity.”

    Are you questioning the findings?

    • Replies: @Ilyana_Rozumova
  69. anon[357] • Disclaimer says:
    @Jus' Sayin'...

    US Health system is government funded but the benefit doesn’t reach the patients .Money is siphoned off by the mid-level workers with HS diploma.

    Canada does good job from the taxes it receives .
    America pours bombs on other countries and the bombs are paid for by the tax payers. Poor in US visits ER for conditions that should not have happened – obesity related, diabetes related, blood pressure related and tobacco-alcohol related diseases . A good basic out patient treatment with preventive components could cut the health care cost by billions.

    Medicare unfortunately also doesn’t provide same services for same conditions and situations . It discriminates .

  70. Vidi says:
    @Agent76

    The Fed Audit
    GAO (Government Accountability Office) report Of the Federal Reserve.
    http://www.gao.gov/new.items/d11696.pdf

    Nowhere near a full audit of the Fed, only of a tiny part of it (the emergency loan programs), and then only for the two years from Dec 2007 to July 2010. Deceptive, as usual with almost anything to do with the accountability of the Federal Reserve.

  71. @MarkinLA

    “As Axel Weber remarked, afterwards:
    I asked the typical macro question: who are the twenty biggest suppliers of securitization products, and who are the twenty biggest buyers. I got a paper, and they were both the same set of institutions…. The industry was not aware at the time that while its treasury department was reporting that it bought all these products its credit department was reporting that it had sold off all the risk because they had securitized them…”

    http://www.lse.ac.uk/lse-player?id=1856

    • Replies: @James Charles
  72. Altai says:

    How did they do it? In part, through protest. They held sustained and noisy protests, banging pots and pans outside their parliament building for five months. The number of people participating in the protests grew over time. They created democratized platforms for gathering public input and sharing information widely. And they created new political parties, the Pirate Party and the Best Party, which offered agendas informed by that popular input.

    Which was possible because Reykjavik has a small homogeneous population with a sense of comfort and trust with another and sense ownership of their country. That kind of sense of fellow-feeling and trust is necessary. A sense of common history and common future is something most Western parliaments don’t have to worry about when it comes to the people of their capitals anymore. It’s racist for anybody to claim to own their country.

    By contrast the occupy movement in the US collapsed when SJWs came and demanded that regulating the banks and putting Wall Street criminals in jail is good and all, but what about allotting speakers time by race and sex? And nobody could tell them to shut up because they claimed to be speaking on behalf of x minority. The two black women who stage crashed Bernie Sanders was a beautiful illustration of this.

    If you ask people to align by ethnicity or class, they’ll pick ethnicity. Sorry.

  73. @James Charles

    “The root problem of 2008 was a failure to recognize that the highly leveraged money center banks had used derivatives not to distribute subprime mortgage risk to the broad risk bearing capacity of the market as a whole but, rather, to concentrate it in themselves.”

    https://equitablegrowth.org/misdiagnosis-of-2008-and-the-fed-inflation-targeting-was-not-the-problem-an-unwillingness-to-vaporize-asset-values-was-not-the-problem/

  74. @anon

    Camel and eye of the needle.
    There could be manufactured needle of the size that camel would pass through, but than nobody could sew with it. So it wold be no needle at all.

    • Replies: @anon
  75. Anonymous[192] • Disclaimer says:
    @MarkinLA

    Did the dopt.com bubble bust because of the poor ? Did the car loan and student debt ballon into a gigantic hole for the next meltdown to suck us into it because of the poor ? Is the current housing market getting there because of the poor buying and renting homes?

    The theme of the poor black and poor illegal /legal Latinos contributing more that their population based expected shares of the defaults are baloney and hogwash . Whites took out more than they could afford.
    Rest are the history of the rich white connected people siphoning the money from the tax payers to pay for the default and bail out.. 23 trillions dollar did not go to African or Latin American bank or Mexican banks. They went to white corporations, and white bank .

    The racial angles are clearly evident in US every time disasters hit home .

    Foreign aids that US Uk offer to Africa India Pakistan and mythical non -white Nagaro-Bagairo Islamuro country is meant to buy the military and the police who then serve the freaking white US-UK’s interests of exploiting the resources form Arab and from Africa and from Lation America.

    The foreign military and foreign security activities and the exploitation give rise to some local rich segments who are called ‘business houses , entrepreneurs , and philanthropists ” who come handy to rig and destroy the country when need arises – think of Argentina and Venezuela and Brazil .

    For each pound spent by British to Africa, 3 pounds are returned to UK- that was the data of 1994 .

    ( In India and China this model gave rise to big houses – Tata Birla HSBC and many more ..in 19th
    century )

    The western leftists that throng the visible space maintained by NYT, CNN,MSNBC, and BBC are the alter ego of the same foreign psychopaths that roam the deserted streets of Fallujah , Kabul, Aleppo or Somalia to kill the unarmed civilians , alter ego of the residents of financial towers of London ,Berlin and NY city ,and of the lobbyists of the fake religious leaders . They only use different instruments- love for illegal, blacks,and the hispanics. Even these leftists are mostly, almost 99% white.

    Diversity is for the poor white to be educated into. and to be proud of . But requests for diversity in banking finances ,Pentagon, Media, Cabinet, disaster reliefs or the college administrators or the pantheon of the lazy tenured professorships are the unjustified call of the Blacks and the Latinos that should be crushed !!

  76. anon[192] • Disclaimer says:
    @Ilyana_Rozumova

    Good metaphor .This hides yours and public’s ignorance .

    • Replies: @Ilyana_Rozumova
  77. @anon

    You are smart, and I am stupid so I cannot argue with you.

  78. anon[228] • Disclaimer says:
    @Jus' Sayin'...

    ea Party – unsupported by billionaires and other big bucks ..”

    Shantelli was found screaming on the floor of the Chicago mercantile Exchange and the Tea Party was born.The serpent in the concrete garden gave rise to many other serpents known as Tea Party
    Like Shantlli it blamed the poor blacks and Hispanics for the economic meltdown and castigated Obama for rescuing them from the foreclosures and losses . Shantelli never questioned like a nice educated suburbanite patriotic American the idea ,half truths,and secretive deals that rescued the thieving banks and the corporation . He never questioned the wars of Bush and never attacked Obama for continuation of wars, neither mentioned the behemoth in the making of the financial mortgage 2008 disaster- white people of USA .

    Neither the Tea Party did. Tea Party still blames the blacks and still supports the war .
    They are not nuts They are criminal.

  79. peterAUS says:

    This topic…..79 comments, of which only a handful, actually, well put together.
    Holocaust denial, as we speak, 1750 comments, plenty of them well put together.
    Comparing time and effort put in both topic and, more importantly, related interest here is……….just funny.

    And, some people still wonder why “alt-right” is….. where it is.

  80. JackOH says:
    @peterAUS

    peterAUS, yep. I live in an area where nominally well-educated young people are living less well economically and socially than their far less educated grandparents. It’s common knowledge.

    I have good confidence in Ron’s editorship, the best comments here are very good, but I sometimes wonder what’s going on here.

    • Replies: @peterAUS
  81. peterAUS says:
    @JackOH

    I have good confidence in Ron’s editorship, the best comments here are very good, but I sometimes wonder what’s going on here.

    Nothing to do with “Ron’s editorship”.
    This Website is unique in its lack of censorship and I can’t praise Mr. Unz and moderation here enough. This is how the Internet should be.

    But…what do we get when have really free speech on Internet (still) ?
    Let’s see, again: 81 comments so far re this topic.
    That another one, as we speak:1752.

    Re “what’s going on here” in particular, when I came across this site I had a certain opinion. Let’s just say that’s not what I think now. Won’t say what it is, of course. No point.

    Here we are….
    Here…….we……..are……..

    • Replies: @JackOH
  82. @peterAUS

    Yeah Peter. I really wish we could talk about some other things too.

  83. JackOH says:
    @peterAUS

    peterAUS, as I’d mentioned above, I’m thinking of introducing Unz Review to my local Congressman. Probably won’t get past a staffer, but that’s okay.

    My Congressman has been mentioned as a 2020 Presidential contender; he’s in a safe, unchallenged seat and he knows it; and he can get away with the usual platitudes. All he wants to know is whether Unz Review represents a constituency or skein of thought that he can politically exploit, or that he must take into account. The answer is: “No”. He’ll regard Unz Review as a steam-vent that keeps the pot from boiling over. I’ll try to summon my best sales skills, but it’ll be tough.

  84. anon[912] • Disclaimer says:
    @James Charles

    Thanks It is kind of a lodestar guiding to think towards the need for public control’s of money and cash. Sometime back , we were washed wth news of negative interest and digital money and cashless society . It seems form this talk then bank wants cashless society. There are powerful private corporations in tow with them pushing for it. I hear in India ,this has caught the attention of clues public as something good. I hear in other parts as well.
    Any information? Is cashless good? How will bank generate more control and profit ?
    Any thought ?

    How does Fed print money give to government and take the interest (from public) for the private owners of the Fed ?

    Help from anybody will be appreciated . Thanks

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