EASY READING CULTURE OF LIFE NEWS: SPEAKING FEES ARE BRIBES « Culture of Life News 2
The various offshore hell hounds and pirates pay our political leaders and regulators huge, huge ‘speaking fees’ so they can use this as cover for collecting bribes. Summers collected many millions from hell hounds who use offshore hedge funds to evade US controls. So of course, he advised Obama to NOT cooperate with Germany and France or China at the G20 meetings and to NOT support international restrictions on the hedge fund community activities.
Back in the good old days — early 2007 — bankers from Merrill Lynch, Deutsche Bank and other financial giants placed their bets on a 48-year-old property tycoon who was supposed to be China’s next billionaire.
One thing about China: the State believes in knocking down anyone who might compete for political power so they don’t mind seeing billionaires hammered down.
They lent his company $400 million, encouraged him to acquire large tracts of land and in early 2008 promoted a proposed $2.1 billion public stock offering by the company, the Evergrande Real Estate Group, in Hong Kong.
They didn’t understand the Chinese COMMUNIST community. I know them very well and know how they think. They know the oligarchs are very dangerous and want innovation and change but not a flood of very rich sitting on top of the very poor.
One year later, China’s housing market has collapsed, Evergrande is mired in debt and the Wall Street bankers are facing huge losses because the company never sold stock to the public.
Chinese communist leaders raised the reserve ratios and other indicators starting slowly in July, 2007, in order to stop exactly these sorts of deals. The guys collecting Japanese carry trade loans were desperate to translate these as fast as humanly possible into IOUs for other people to pay.
China warned them all to stay out of China, they didn’t want wild inflation due to too-easy lending but of course, the pirates, hell hounds and gnomes thought they could pull an end run. Now, they are being hammered. I hope people figure out, these guys got caught in a trap they set for the Chinese. They got their leg caught and have to chew it off, to escape.
Now, analysts say, Evergrande has become a symbol of China’s go-go era of investing, when international bankers, private equity deal makers and hedge fund managers rushed here hoping to cash in on the world’s biggest building boom.
‘Cash IN’ is correct: they wanted to create loans via the Japanese carry trade and then translate these into mortgages which would force the Chinese to pay them huge sums of money. The entire goal of this ‘business’ was to borrow some money at a very low interest rate and then charge a higher rate to some poor sap who couldn’t go directly to the Bank of Japan.
In 2007, Japan even boasted to China, they could flood China with easy lending and the Chinese could not stop them. Obviously, this was a delusion, the Chinese did stop them.
By making short-term and sometimes hasty bets on China’s property market, analysts say, some of the world’s biggest financial institutions may have lost as much as $10 billion….
Which WE are bailing out right now. They hate taking losses. They want to have fake values on their loan portfolios. To understand all this, take a look at the US housing market where the government and the central bank consortium has spent trillions of dollars to keep the bubble going:
Mortgages modified in the third quarter failed at a faster pace than those revised in the first, and the delinquency rate on the least risky loans doubled, signs of deteriorating credit quality, U.S. regulators said.
This is the definition of insanity: to stop the army of deadbeats [and even ILLEGAL ALIENS] who drove up housing stock values to the heavens with those goofy NINJA loans, the US has taken on vast amounts of PUBLIC debt.
The trick was, we would give them NEW mortgages at lower and cheaper rates and then they would all pay off the PRINCIPAL in the meanwhile while the US taxpayers eat the INTEREST DUE LOSSES. Then, our insane gnomes could then lend more money to other people. Instead of being forced into bankruptcy.
THIS IS A TOTAL FAILURE. Each rescue works even worse than the previous rescue because no one can pay the price for housing as it was set during the NINJA BUBBLE.
Loans modified in the first quarter to help borrowers keep their homes fell delinquent 41 percent of the time after eight months, and second-quarter loans had a 46 percent default rate, the Office of the Comptroller of the Currency and Office of Thrift Supervision said in a report today. Third-quarter trends “are worsening,” the agencies said.
IT IS GETTING WORSE means WE HAVE TO CHANGE COURSE!
What is clear is that the real estate boom was fueled in part by foreign investors, who over the last four years pumped tens of billions of dollars into the Chinese property market, hoping to snap up office buildings, luxury villas and stakes in big developers.
Across the planet, all countries have been flooded this way. The flood of lending poured over every possible surface. It was terrible, a plague, a tremendous danger, very inflationary as it caused excess speculation, building and driving up prices of everything to the stratosphere. We should avoid this like the plague, not try to restart it.
A Morgan Stanley real estate fund bought a tower in Shanghai for more than $240 million; the Carlyle Group acquired luxury villas; and in 2008 J. P. Morgan Asset Management held a 12 percent stake in R&F Properties, a big Chinese developer.
To earn big returns, many global investors used complex offshore investment vehicles, like convertible bonds and preferred equity, which gave them tax advantages —TAX CHEATS—and allowed them to more easily bypass Beijing’s strict controls on investing in Chinese companies listed overseas. Often the investments were routed through places like the Cayman Islands or the British Virgin Islands.
This is called ‘gnomes acting like pirates’.
A favorite investment play was the pre-initial public offering deal. Flush with capital, foreign investors would issue convertible bonds through an offshore entity as a way to invest hundreds of millions of dollars in a Chinese property developer. When the developer was ready to sell stock in Hong Kong, it would pay back the initial investment or bond by giving the foreign investor pre-I.P.O. shares at a discount.
These sorts of ‘insider’ deals are at the root of the entire global financial collapse. Anyone who pretends this is a complex business is throwing fairy dust in everyone’s eyes. It is ludicrously simple: if we allow tax cheating pirate coves to run amok, they will! And the cure is very simple: we use our navy to raid these places and put them under US controls. If we don’t do this, the Chinese WILL do this, eventually, after the pirates have totally destroyed the US by dumping many trillions of dollars of debt on top of all our infrastructure, our industries, our homes and even our natural resources.
Once everything is deep, deep in debt, including our government, it all falls apart. Bingo. Dead. No more empire for us. Anyone who protects themselves from these debt-dealing double dealing pirates will survive, intact. Why we are protecting this guys is the important part that comes next:
Stimulus spending wasn’t the only area of fundamental disagreements. The Europeans came to the meeting stressing the need for comprehensive cross-border regulation of financial markets, participants and products. Mr. Obama and his team seem more committed to domestic regulation than their predecessors — but fiercely resistant to the idea of a global regulator.
WHAT THE HELL???? The US has been ravaged by a flotilla of pirates using Queen Elizabeth’s pirate islands to sail here and destroy our entire economy and Obama doesn’t want them put out of business or even controlled at all????
The group compromised with its call for more transparency and better early-warning systems for systemic risks. We suspect that it will take considerably more than that to reassure investors that markets are safe.
We can build light houses and have people with telescopes there who can see pirate flags from afar and then SHOOT THEM OUT OF THE WATER. How’s that? We can shoot down their private jets! Sink their private yachts! Aren’t we doing this to the Somalian pirates?
The world’s wealthy nations must come to a common understanding of the causes of this crisis and a common vision of the future role of financial markets. From there, they need to write new rules and regulatory regimes that address the real dangers. In the end, necessary regulation will not be transnational enough for European tastes and too binding for American tastes. When both sides grumble about the result, rather than praise it, you will know that progress is being made.
The NYT is guilty of supporting ‘free trade’ and stopping all attempts at shooting down the pirates. They want the pirates to be POLITE and not rape, loot and burn our cities. But remember: the pirates are all gnomes. They love to loot, rape—especially, rape—and even like roasting marshmallows on open fires of countries being burned to the ground as millions die in ‘shock and awe.’ They even support torture.
The world’s wealthy nations are getting poorer and poorer as the gnomes and pirates get richer and richer. DUH. Since hell hounds and other nasties are getting richer, we have an easy solution: arrest them all and charge them with high seas piracy! They will stop.
One of my French ancestors was a pirate. When England had peace with France, he had to hightail it out of the Spanish Main and settled in Massachusetts. Named the homestead, ‘Peru’ and then next one, ‘Lima’ in honor of the gold bars from these mints. Pirates stop only when they see the hangman’s noose.
The Federal Reserve’s top two officials assured that they will pull back their emergency- credit programs once the crisis fades, even as they prepare to flood the system further with an excess of $1 trillion.
Chairman Ben S. Bernanke said yesterday in Charlotte, North Carolina that the Fed must retain the flexibility to withdraw its record cash injections to restrain prices. Vice Chairman Donald Kohn said in Wooster, Ohio, “the trick will be unwinding this balance sheet in a timely way to avoid inflation.”
The remarks followed calls by current and former officials for an exit strategy from the central bank’s record accumulation of assets, from corporate debt to mortgage bonds. Concern that political pressure may delay the start of an anti-inflation fight drove the Fed to forge an accord with the Treasury Department last month.
These are fake promises. All these gnomes always promise to never, never rouse the Goddess of Infinity. Oh, no, they will withdraw….ever have sex with a gnome? They always promise the girl, they will withdraw before they do IT. And then don’t, of course, this is how they reproduce.
Anyway, they tell us, it is a ‘trick…unwinding….the…sheet’ after having sex. Prostitutes call these guys, ‘Tricks’, by the way. And pray tell, how will our Treasury exit their ‘purchases’? Of course, this means holding them for a long, long time until Inflation takes care of relative values and they can be sold at their previous, higher price, with cheaper dollars. Case closed.
This is a NEGATIVE CAPITAL system and will make us poorer, not richer. The gnomes will buy everything when they can, when they find a new Japanese carry trade, to exploit. The yen is dropping in value so this isn’t so far in the future.
In a speech before leaders here at the Group of 20 summit meeting, Mr. Medvedev said that the countries most responsible for the global economic crisis (read: the United States) are not taking their fair share of the burden for “macroeconomic policies” needed to fix the problem.
Note how Russia and China take turns now, hammering us on the issue of the US fiat currency system? This means, they have secret agreements to do this in preparation for the coup de grace that is inevitable.
“On this basis we conclude that it would be wise to support the creation of strong regional currencies and to use them as the basis for a new reserve currency,” Mr. Medvedev said. “One could also consider partially backing this currency with gold.”
HAHAHA. He mentions ‘gold’! This will cause much gnashing of teeth. Gnomes gnashing teeth is a horrible thing, very noisy. GRRRINNNND. They want funny money they can make very easily and then dump all over the planet. Gold makes this virtually impossible. And Russia knows this. Thus, the tease.
Now, back to why we are helping, protecting and needing pirates:
Lawrence Summers, a top economic adviser to U.S. President Barack Obama, was paid about $5.2 million in compensation by hedge fund D.E. Shaw during the past year, according to financial disclosure forms released on Friday by the White House.
ARREST SUMMER. Charge him with piracy. Treason would be nice, too.
Officials from D.E. Shaw were not immediately available for comment. Summers, a former U.S. treasury secretary, was a part-time managing director of the firm after stepping down as president of Harvard University.
Makes it sound like a part-time bagging job at the grocery store! But it wasn’t. This is outright bribery. He did one thing for them: opened doors so they could go raiding.
Lawrence H. Summers to Head National Economic Council
November 24, 2008
The D. E. Shaw Group Forms New Asset-Backed Securities Unit
September 04, 2008
D. E. Shaw Group Hires New Chief Financial Officer
August 05, 2008
The masterminds at hedge fund giant D.E. Shaw think they’ve
found the formula for thriving during troubled times.
By Michael Peltz The Power of
Few hedge fund firms have a more well-deserved reputation for secrecy than D.E. Shaw & Co. Founded two decades ago by David Shaw, then a computer science professor at Columbia University, the outfit was an early pioneer in quantitative investing — developing sophisticated computer programs to identify and profit from anomalies in the market. Like Coca-Cola Co., which zealously guards the formula for its prized syrup, D.E. Shaw has always vigilantly protected its proprietary trading algorithms. So secretive was the firm during its first few years that some employees wouldn’t even tell their families where they worked, let alone what they were doing there.
“There’s a healthy paranoia that we have in the firm,” says managing director Eric Wepsic, 39, who oversees quantitative trading strategies.
Summers was also paid hundreds of thousands of dollars in speaking fees from major Wall Street firms and financial institutions, including JP Morgan, Citigroup, Goldman Sachs and Lehman Brothers, the forms showed….
“One of their strengths is critical thinking,” says Steven Algert, who manages the hedge fund portfolio for the $5 billion Los Angeles–based J. Paul Getty Trust, a D.E. Shaw investor. “They are always looking to see if they are doing it right. They don’t want to be complacent with asset classes or with strategies.” Indeed, notwithstanding its reputation as a quant shop, D.E. Shaw has expanded into more qualitative investment strategies, such as distressed credit, energy trading, private equity and real estate — areas that today account for fully one third of its assets.”So, Summers works with these six hedge funders. And he now is operating the levers of power of our entire financial and governmental systems and the chief aim he seems to have is to keep these hedge funds afloat! This is a DIVIDED LOYALTY PROBLEM. We already know that when Goldman Sachs or JP Morgan operatives run things, they run them so GS and JP get richer and richer no matter what. Summers is no different. He is like the others: he didn’t reveal this information when he waltzed back into public power. Nor did the secretive and paranoid gnomes running Shaw, make so much as a peep about this, either. Did they? It gets worse:
Lawrence Summers, director of President Barack Obama’s National Economic Council, earned more than $2.7 million in speaking fees from companies such as Bank of America Corp., Citigroup Inc. andGoldman Sachs Group Inc. that later received taxpayer funds in the economic bailout.
‘Speaking fees’ is code talk for ‘accepting bribes.’ If these GS and Citigroup groupies want to know about how to run things, they don’t need to pay a guy millions of dollars to tell them. They can read the damn news and even read my blog, not to mention, Denninger’s blog, just for example! All our past Presidents and others go about the entire planet, collecting hundreds of millions in these ‘speech’ bribes.
Ronald Reagan legalized this blatant bribery. When our media and the political classes all applauded him running to his Japanese masters to collect his bribes for unsuccessful trade negotiations that left Fortress Japan’s barriers intact, he was rewarded.
Now, all our negotiators and representatives go off to all the people they must control and regulate and give nifty, meaningless speeches that should actually be, ‘Thank you for the money, I love money and am glad this is still legal. See you all on the golf course tomorrow!’ Frankly, this was basically what Reagan said to the Japanese. His speech was less than 10 minutes long.
“There was considerable interest in hearing his economic insights from companies across various industries” said Ben LaBolt, a White House spokesman. Since coming to the White House when Obama tool office in January, Summers “has been at the forefront of this administration’s work to shore up our nation’s financial system and to put in place a regulatory framework that will strengthen the financial system,” LaBolt said.
HAHAHAHA. And you can bet, LaBolt said this with a straight face, too. This takes training. But no matter how hard we train our own gnomes, the Japanese and Chinese are much, much better at keeping their faces totally unreadable while lying.
Merrill Lynch & Co. paid Summers $45,000 on Nov. 12 for a speech. Summers contributed that fee to charity, according to his form. When the economist learned that Merrill would be accepting taxpayer funds because of its merger with Bank of America, he tried unsuccessfully to cancel the appearance and then decided to donate the money, a White House official said.
Ah, such purity! STILL, money changed hands! And why didn’t he give a rousing speech about bribing officials and end it with a demand, this be outlawed? Eh? No, he used the cover of giving it to ‘charity’ [Clinton’s charities????] doesn’t nullify the fact that he was being bought by people with deep interests in insuring the government does work for them and not controls them.
And he knows, in the future, he can go to them with an open palm after performing many services for them and they will pay him immense sums of money, in the future, of course.
The White House also released the personal financial disclosure forms of other top White House officials today.
White House Chief of Staff Rahm Emanuel’s form listed a holding of less than $1,000 in shares of American International Group Inc., the insurer that has taken $182.5 billion in taxpayer funds to avoid financial collapse. The White House said Emanuel doesn’t currently own shares in the company, which sparked a public furor by paying $165 million in bonuses to its employees as it was taking the taxpayer money.
This is the problem in a nutshell: we can’t mix government and ‘speech making’ deals. We can’t let people float in and out of both systems all the time since this creates an atmosphere of corruption. If EXPECTATIONS of future goodies beacon, they will warp all resolve and tempt people to service those who they must control and deny.
We see this throughout the systems: the very same people destroying us are coddled while we are forced to scratch for ourselves. And as the government withdraws services from us, they increase protections of these guys who pay our officials immense ‘speech’ fees that are utterly outside of the range of any reality. These are not entertaining speakers. They are boring. And some, barely able to deliver speeches like poor Geithner, for example.
Many people, just as they become eligible for Medicare, discover that the insurance rug has been pulled out from under them. Some doctors — often internists but also gastroenterologists, gynecologists, psychiatrists and other specialists — are no longer accepting Medicare, either because they have opted out of the insurance system or they are not accepting new patients with Medicare coverage. The doctors’ reasons: reimbursement rates are too low and paperwork too much of a hassle.
This is how they intend to literally kill us: by slowly strangling all access to medical care. They will claim they have no control over all this as we struggle to find someone, anyone, who will honor our SS medical vouchers. THERE WILL BE NO ONE when there is higher and higher inflation. And we know the gnomes will save themselves by creating immense tidal waves of inflation.
They will tell us, ‘It costs too much, we can’t spend TRILLIONS on saving you!’ And then, after collecting a fat fee for burping in front of a bunch of satiated gnomes at some dining hall, will bail them out by putting another $5 trillion of debt onto our government. Which will then go out and bomb more poor peasants in Pakistan! We will die for our empire while they dine on our children’s future earnings.
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