Goldman Sachs Pays Big Fines, Escapes Jail Time

Goldman Sachs pays huge fine in order to avoid criminal prosecution over their noxious subprime business deals.  I hoped to see GS executives in jail but they run the country so no jail time for the real crooks.  Taylor, the professor who invented the ‘Taylor Rule’ for avoiding hyperinflation after a central bank floods an economy with cheap loans, warns Bernanke to raise interest rates fast or else we get hyperinflation.

Anti-mining protesters picket in front of the Department of Natural Resources in Manila, Philippines

Subprime Prosecution Stops Foreclosures But Lets Goldman Sachs Off Hook

Massachusetts Attorney General Martha Coakley won a victory against the Goldman Sachs Group Monday, forcing the financial firm to cut a $10 million check to the state and pony up $50 million to help around 700 homeowners pay subprime mortgages.

“Goldman Sachs is pleased to have resolved this matter,” says Michael DuVally, a Goldman spokesman, declining to comment further.

They were also pleased, no doubt, by the terms in the settlement that allowed Goldman to avoid admitting any wrongdoing. Letting Goldman off excuses what could have been criminal behavior, but it also brings relief to hundreds of homeowners and offers a roadmap to some sort of law-enforcement-driven solution where lawmakers have come up short.

I wait with bated breath for the Goldman Sachs/J.P. Morgan hearings in Congress….HAHAHA.  This week, the bankers and their economistic running dogs from the university systems were meeting at Jekyll Island in honor of the first biggest heists in history, the creation of the Federal Reserve.  This made very little news and no mention of how the Federal Reserve was launched much less, discussions about who owns it and gets that wonderful 6% perpetuity payments.

We know, from the Federal Reserve’s site, that these shadow owners ‘share’ this bounty with the US Treasury but won’t say how much they keep for themselves….sort of like the funding for the CIA.  The CIA was founded by the exact same crew that founded the Federal Reserve and is the enforcement arm of the Federal Reserve’s owners.  Now, I sound like a ‘conspiracy’ website!  Whoops!

Well, there are some grounds for paranoia.  So long as the Fed is a shadow organization operating secretly, we may as well be paranoid.  It is interesting that Massachusetts has forced the gangstas in Goldman Sachs to cough up some loot.  Note who is getting help here: people who have expensive houses.

When the poor are ripped off, it is tough titties.  When the wealthy are screwed, they sue or twist government arms to get retribution and restore their own wealth.  Goldman Sachs basically tried to use mortgages to rip off people who were also rip off artists, themselves.  They were ‘investing’ in real estate with the expectation of rolling it all over via flipping their houses or running up even more debts on houses that were ballooning in value like old tulips in Amsterdam.

Now, that died and the creeps who used subprime mortgages to play ‘get rich quick’ games sued the cons who sold these dangerous loans…I hope all of them rot in hell.  Both GS and these house buyers destroyed our economy.

Taylor Says Fed May Need to Raise Interest Rates Soon (Update1) – Bloomberg.com

The Federal Reserve may soon need to raise interest rates, saidJohn Taylor, the former Treasury official who devised the “Taylor Rule,” a formula for rate- setting based on the outlook for inflation and growth.

“My calculation implies we may not have as much time before the Fed has to remove excess reserves and raise the rate,” Taylor, a Treasury undersecretary under President George W. Bush from 2001 to 2005, said today at an Atlanta Fed conference in Jekyll Island, Georgia….

The Fed helped to trigger the current financial crisis by keeping rates too low for too long, Taylor said.

“Low interest rates led to the acceleration of the housing boom,” he said. “The boom then resulted in the bust, with delinquencies, foreclosures and toxic assets on the balance sheet of financial institutions in the United States and other countries.”

Taylor said that though policy makers were well intended, they were mistaken in trying to “fine-tune” the economy after about a quarter of a century during which long and deep recessions had been avoided.

“Sticking to the basics, what worked, would have been much better” than to lower interest rates to 1 percent in 2003 to try to revive growth, he said.

Taylor said the Fed’s growing balance sheet is a “systemic risk” because it may be difficult to unwind quickly enough without igniting inflation. The Fed’s balance sheet has more than doubled since last September to about $2 trillion as it purchased government and corporate debt to help unfreeze credit markets and support banks’ demand for cash.

Inflation is here.  I expected it to be arriving along with the hummingbirds who came to my feeder two days ago for the first time.  This is because the government is sending all us seniors $250 this month!  Whoopee….not.  All of my $250 is going for tax hikes.  Whoppee again!  But I bet many are spending it on things like….gasoline.  Hey, guess what?  We get $250 and right on schedule, gas prices shoot upwards!  Just like when we got $600 @.  Same thing.  Identical.  Food prices are up, too.

I am rather weary about all this.  It is too painfully obvious.  Every penny of the last government goody ended up the same place: in the pockets of the wealthy oil distributors.  And our national debt grew, immensely.  Stop it!  STOP IT!

There are many people out there on the internet who imagine this: ‘If only the US government would give us $50,000 or $100,000, we could pay off all our debts and buy lots of stuff and we would all rejoice and be happy!  La, la, la!’  This infantile belief that all we have to do is print up lots of money and then…what the hell?  It is so utterly obvious what happens next.  Ugly stuff.

Even children know about the Weimar Republic of Germany and their hyperinflation.  I will also note that virtually no news about the Zimbabwe inflation appears here in America.  Geeze, I wonder why?  HAHAHA.  The Bloomberg News does report these things so we can thank the mayor of NYC for this.

If we want immense inflation, all we have to do is have our stupid government go even deeper in debt, handing out dollar bills for political support.  We are at war with Afghanistan and nearly all Muslims and these stupid wars are expanding and getting more expensive and we are not taxing ourselves, we are seeing our central bankers flood us with more money in the hopes we will spend it and we are spending it which is why we are seeing inflation!

The hope is, we will spend it and the taxes will return and make up the difference but this is Ouroboros eating its own tail.  We need to have a trade surplus.  This will fix our economy.  To get a trade surplus, we have to restrict oil consumption since oil is one of our biggest import items.  The only way to get oil restricted is to have it go up in price.  So the money handouts are driving up the price of oil so maybe this is a cockeyed, conspiratorial solution: keep giving us money so we have to give it to the oil companies until we go bankrupt?

Great plan!  Too bad, it has a fly or three in the ointment: a bankrupt empire.

Medicare, Social Security Funds Worsen in Recession (Update2) – Bloomberg.com

The deteriorating position of the two funds puts pressure on Congress and President Barack Obama to come up with ways to cut costs and boost revenue for both. Obama yesterday said fixing the nation’s health-care system is an “imperative for America’s economic future.”

“After we have passed health-care reform that puts our nation on a path to lower growth in health-care costs and expanded affordable coverage, this president will work to build a bipartisan consensus to ensure the long-term solvency of Social Security,” Treasury Secretary Timothy Geithner said today in a statement.

The trustees’ annual report also estimated that Medicare’s hospital fund will be exhausted by 2017, two years earlier than predicted a year ago.

I predicted, in 1967, this would happen.  I said, ‘They will have to get rid of us baby boomers.  They will cut our medical care and starve us to death.’  Well, that little plan is running just fine.  If we want health care reform, we should declare bankruptcy, petition Canada to take over and then have them put in their own system, here.  Or we can split in two and have the south join Mexico that has very little public health care and we can join Canada.

After all, no borders are sacred. The US endorses the break up of countries.  We demand this of China, after all!

2009/05/13 11:22 – Aso’s Close Aide Konoike Resigns From Senior Govt Post Over Affair

Deputy Chief Cabinet Secretary Yoshitada Konoike on Wednesday resigned from his post over an affair reported in a weekly magazine that went on sale the same day.

Konoike, 68, a ruling Liberal Democratic Party lawmaker and close aide to Prime Minister Taro Aso, cited ”health problems” as the reason for tendering his resignation and was hospitalized Tuesday for interstitial pneumonia, government sources said.

All government officials in disgrace have interstitial pneumonia and then die via a sword stuck in the belly as a cure.  Both political parties are corrupt.  So much for democracy in Japan.

World Briefing – Asia – Japan – Opposition Leader Resigns – NYTimes.com

Ichiro Ozawa, the Japanese opposition leader, announced his resignation on Monday, saying he wanted to prevent a campaign finance scandal involving one of his aides from hurting his party’s chances of unseating the Liberal Democratic Party. Mr. Ozawa said he would step down as head of the Democratic Party, whose lead in public opinion polls has shrunk as a result of the scandal. In March, prosecutors arrested one of Mr. Ozawa’s aides, who is accused of taking illegal donations from a construction company. The scandal appears to have tarnished both parties before a national election that must be held by Sept. 10.

Who can the Japanese vote for?  Sounds like the USA.  Maybe there is a Ron Paul or Kucinich lurking in the wings.  Maybe these sorts could make the news and appear in public and not be assassinated by the Yakuza.  This is the democracy we export, incidentally.  Bravo.

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