Goldman Sachs Has Immense Profit From Selling US Debt

Unlike in the Crash of 1929 and the grinding collapse of credit creation that followed, we see little to no reforms this time around.  Unlike in 1929, the Federal Reserve and the US government are both very reckless and are using all sorts of dangerous tricks to paper over one of the biggest credit collapses in the history of banking. Thanks to these ‘rescues’, we lost the last remnants of our auto industry and are far worse off than before in regards to public finances.  But the gangs who created this credit bubble are doing just great, thanks to the heroic efforts of our besotted government!  And so they are rewarding themselves with even bigger bonuses than ever before.  

Goldman Sachs should have been forced into bankruptcy.  Ditto, JP Morgan and the other top 5 derivative swap dealers.  All of them were essentially bankrupted by the collapse of the AIG consortium.  Instead of forcing these massive entities to vanish like all the many destructive ‘Trusts’ that vanished in 1929, instead of outlawing OTC markets and zeroing out the derivative swap markets, the US government took on over $13 trillion in potential future obligations in order to keep AIG, Goldman Sachs, JP Morgan, Citigroup, Bank of America, etc, afloat.

These parasitical operations exist for one reason only, the flood the world with excess credit while giving themselves a cut of the action.   When given a choice between rescuing them and rescuing our auto industries, the answer should have been obvious: throw the piratical bankers overboard to be eaten by the sharks and save our domestic manufacturing base!  Duh!

The reason why our government did the exact opposite is obvious: the gnomes who ran our entire planet’s financial system into a deep pit of darkness own our government via ‘election donation’ bribes while the US auto unions are decimated and weak and the working base has had its balls clipped and is no longer a wolf contending for power but rather, a lap dog that is easily whipped and sent away, tail between its legs.

Years and years of hatred of unions has been encouraged by our leaders, the media owners and our entire political system.  This is why unionization has been on a steep downturn since its halcyon days of the 1950’s.  So, let’s look at today’s news and see how the wretched crooks who wrecked everything are flourishing and how our auto industry is moving to China:

Goldman Sachs to make record bonus payout | Business | The Observer

A lack of competition and a surge in revenues from trading foreign currency, bonds and fixed-income products has sent profits at Goldman Sachs soaring, according to insiders at the firm. Staff in London were briefed last week on the banking and securities company’s prospects and told they could look forward to bumper bonuses if, as predicted, it completed its most profitable year ever. Figures next month detailing the firm’s second-quarter earnings are expected to show a further jump in profits. Warren Buffett, who bought $5bn of the company’s shares in January, has already made a $1bn gain on his investment…. Last week, the firm predicted that President Barack Obama’s government could issue $3.25tn of debt before September, almost four times last year’s sum. Goldman, a prime broker of US government bonds, is expected to make hundreds of millions of dollars in profits from selling and dealing in the bonds.

The US government is issuing $3.5 trillion in debt in order to bail out the entities who are now selling this debt!  And the very same characters who destroyed our economy are now seeing record profits selling the debts we are taking on, and thus, rewarding themselves!  First off: why use these gnomes to sell our debts? Indeed, the question really is, why are we selling debts, in the first place? Why is our entire culture predicated on creating increasing debts and then selling these to outsiders via private investment houses that use this flow of funds in order to increase credit creation?

The blatant refusal to even try to understand what happened this last cycle of bubble/collapse is at the heart of the matter.  People in power don’t want to listen to people like me.  ‘You are crazy’, they hiss as they rush off to another international symposium surrounded by armed troops and military goons.  The same Bilderbergers who are filled with joy to see Iran’s people resist government domination are the exact same clowns who will shoot anyone who approaches their many secret and public gatherings where they pick and choose what to do next.

It is painfully obvious now, they have goals which clash with the desire to survive for the masses.  And the one thing these elites fear most is, the public rising up in physical fury and taking to the streets like in Iran and literally fighting for recognition and cleaning up of government corruption.  The Goldman Sachs corruption system is obvious: GS owns our government.  This is why our government saved GS, gave GS tons of wealth in the form of fees and percentages, and now GS is doing just great while all other sectors in our economy that impact us all very heavily, are in steep decline.

Goldman’s Blankfein issues apology as bank prepares to repay $10bn – Telegraph

“We know that we have an explicit contract with our shareholders to be responsible stewards of their capital. . . we regret that we participated in the market euphoria and failed to raise a responsible voice.…”

In the letters, copies of which have been seen by The Daily Telegraph, Mr Blankfein also warns that stability in the financial markets can only return if the industry accepts that some of its practices are “unhealthy”. He also calls on the industry to “ensure that compensation reflects the true performance of the firm and motivates proper behaviour”.

GS didn’t merely participate in a ‘euphoric’ situation: they were the ones who were pouring the drinks and spiking it with drugs.  They were the criminals who created this euphoric based on false systems.  They are the ones who created, fed and protected the Over The Counter Swap games.  They engineered this ‘euphoria’ and claimed, they got rid of all risk so they didn’t need any capital to run the system.  They conspired with AIG to build up a derivatives market swap meet that ended up exploding in size until it dwarfed all existing wealth on earth, all economic systems are but drops in the bucket compared to this insane derivative swap system that is still over $500 trillion in size!

Drug dealers and bar tenders are not ‘responsible’ people.  They are enablers, pushers and want people to drink too much, take too much drugs and in general, create chaos at night.  Like gambling casino operators who, incidentally, flourished alongside with the rise of the top derivative banking groups, are leeches on the economic system, not creators of wealth.  They are immoral, not moral.  We allow a certain amount of drinking and gambling because humans love doing this and outlawing it simply makes it more criminal.  But encouraging and protecting these immoral operations is pure insanity.

The difference between creation of real wealth and fake wealth is important!  Real wealth always comes directly from Nature and humans interacting with Nature.  Adding human labor to the underlying physical systems such as soil or minerals or crystals, turning these things, turning animals and plants into value-added products is what real wealth really is.  In opposition, there is imaginary wealth.

Imaginary wealth is numbers, paper with writing on it that indicates values attached to economic systems, it is bets placed on systems such as the stock or the derivatives markets.  It is a support system.  When the imaginary paper system that supports the real economic process becomes more powerful than the economic base, it hijacks all systems and we end up going very deeply into debt, protecting the imaginary economic systems rather than the very real parts. And this, in a nutshell, is why the US is rapidly turning into a third world bankrupt rather than being a powerful empire.

Goldman Sachs repays about $10 bln in TARP funds – MarketWatch

it has bought back 10 million preferred shares issued to the Treasury earlier for about $10.04 billion. “The repurchase includes a one-time preferred dividend of approximately $425 million which will be reflected in our second quarter results,” Goldman Sachs said. The dividend payment is expected to lower its second-quarter earnings by 77 cents a share

GS has to get us out of its boardroom.  They were rescued by GS former president, Hank Paulson, when he was Treasury Secretary.  To save GS and JP Morgan, the government had to bail out AIG.  AIG was so corrupt, even as they were going bankrupt, they spent money on bonuses and fancy vacations even as they were begging for hand outs.  The US has capitalized AIG to the tune of nearly $100 billion and climbing.  This is actually a transfer of taxpayer future earnings to Goldman Sachs and the other top derivative swap players.

Instead of hauling under all of these gangsters, the US government has done the exact opposite.  GS and the others will now use a portion of their profits guaranteed by the taxpayers to further infiltrate the political system the same way AIPAC gets money from Congress which is sent to Israel and then, which comes back in the country to fund AIPAC so they can bribe Congress to give Israel more money.

These circular corruption systems are disgusting and leading to the complete destruction of US power.  Here is some more news about AIG:

NJ will not press charges against AIG | AP | 06/19/2009

New Jersey will not press any charges against American International Group over bonuses paid to executives with taxpayer money last year. Instead, state Attorney General Anne Milgram announced Friday New Jersey would be among 11 states who instead will collaborate with an existing federal investigation into the matter

New Jersey is run by Goldman Sachs.  The GS tower is in Jersey City, for example.  The outrage over the bonuses for AIG executors is a ploy to deflect from the true scandal: how AIG enabled the derivatives over the counter swap business.  The payout of the collapse of Lehman never really happened. The US government did more than 80% of the payout.  This payout should have never, ever, ever happened.  The crime was tricking the US public into bailing out AIG so the bettors in that particular casino could collect their deals and run off, leaving the taxpayers to clean up the mess in this casino.

‘Impossible to Understand’ Swap Burns 290-Person Italian Hamlet – Bloomberg.com

Derivatives have burned towns from Polino to Milan to Erie, Pennsylvania. Jefferson County, Alabama, said it might need to declare bankruptcy because of costs associated with the contracts. Responsibility for the expenses in Italy’s second- biggest city and in Umbria’s smallest village sits with elected officials who agreed to financial instruments they didn’t fully grasp, said Stefano Taurini, a lawyer who specializes in corporate law in Milan….

In Italy, some 600 local authorities had taken out more than 1,000 derivative contracts on about 35.5 billion euros of debt by the end of last year, according to national Treasury data provided to the Italian Senate Finance Commission.

The governments had unrealized losses of 1.93 billion euros on over-the-counter derivative bets placed with Italian banks and local units of foreign banks at the end of 2008, according to data from the Rome-based Bank of Italy, the country’s central bank….

Jefferson County, Alabama’s most populous, last year defaulted on $3.2 billion of debt amassed during the construction of its sewer system. More than $3 billion of that carried floating interest rates and used derivatives to protect against the risks.

And who sold these derivatives? Goldman Sachs! All the top 5 US investment banks as well as a group of 5 European and UK investment banks all sold this garbage to unsuspecting officials all over the planet. Now, the taxpayers must bail out the governments who bought these things created and sold by GS and all the other crooks. So who gets bailed out?

The sellers of these destructive derivatives! As many municipalities, states and even entire countries fall off the economic cliff and are plunged into political and social chaos, the cause of all this is left to grow even stronger and richer, and this, via a global taxpayer-funded central banking rescue operation? Good grief. We should be taking notes as to how to run a revolt. Study the actions in Iran and see how popular anger can be channeled into resistance. After all, our own rulers have made it very clear, these sorts of rebellions are great and good and should happen! Back to the topic of the US and European auto industrial base and how it is being rapidly transfered into Asian hands:

China’s Geely to buy Volvo Cars: report – The Local

Citing a report published on Wednesday in the National Business Daily, the Shanghai Daily newspaper reported on Thursday that Geely Automotive Holdings plans to buy Volvo and produce a new model of the traditional Swedish brand in China’s Guangzhou Province. As a part of the deal, Geely plans to start production of the new Volvo XC90 in Dongguan City in what is seen as a major step forward in the Chinese company’s bid to expand into the global auto market. Terms of the deal were not disclosed, but Jia Xinguang, an analyst with the Chinese National Automotive Industry Consulting and Development Corporation reckons that Volvo would not be sold for less than $3 billion, the Shanghai Daily reports.

This unsettling news had to be squelched but if we read very carefully, the denial of this story is actually a fraud:

Detroit 3 headlines | Freep.com | Detroit Free Press

Shenzhen News Net, in a report Friday, said Ford and Geely have reached a preliminary agreement, but are still working out many details such as the transfer of technology, Volvo’s market position and any layoffs following the sale.

“We’ve been saying since the end of April … that we’re in discussions with a number of parties concerning the future of Volvo,” Ford of Europe spokesman John Gardiner said in an e-mail to the Free Press on Friday. “No final decisions have been made.”

This means, the negotiations are secret and we will learn about them in due course, probably when Hu celebrates another economic victory in the Chinese 50 Year Plan of transferring ownership of the global industrial base into the hands of the communist Chinese leadership.  Meanwhile, in the US, what are our own ‘leaders’ in this industry doing?

Detroit 3 headlines | Freep.com | Detroit Free Press

GM, Ford trade chiding Tweets Things got a little exciting during GM CEO Fritz Henderson’s Twitter time last week. A Ford PR guy posted a welcome. “Glad you’re here, Fritz. Where’d you get the idea to use Twitter?” It was a clear reference to the Ford CEO’s time on Twitter in April. (He dictated his responses.) Shortly after Henderson signed off, the GM Twitter page responded to Ford. “At least our guy types his own Tweets.”

How effing INFANTILE.  How very much like we are all stuck in Junior High!  What a waste of time, energy, brain power and…I am speechless.  Instead of doing things that will create a stronger America like, say, demanding an end to free trade, these guys are playing a game which is simply similar to sending notes to each other by making wads of paper and throwing it across the classroom.  And these notes are filled with infantile chatter, making fun of each other!

I say, send them to the dean of students for a paddling and then suspend them and give them failing grades for the semester.

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