Looting The Public Purse Leads To Bad Things

ΩΩWorld finances are clearly showing us that the present global credit bubble is deflating and this means we will have more, not less, depression a la Japan.  Elizabeth Warren, one of the few good people in DC, is trying to force Goldman Sachs to tell her who are their counterparties in hedge deals.  Meanwhile, I notice that the issue of illegal aliens continues to roil the public debate as it should.  And our NATO allies are all going broke so they are refusing to fund military adventures but Hil Clinton wants us to give SE Asian countries like Vietnam, cover by our military umbrella?  Talk about insane.

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Goldman Sachs Said to Give AIG-Hedging List to Panels (Update1) – Bloomberg.com

— Goldman Sachs Group Inc. told U.S. investigators which counterparties it used to hedge the risk that American International Group Inc. would fail, according to three people with knowledge of the matter.

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The list was sought by panels reviewing the beneficiaries of New York-based AIG’s $182.3 billion government bailout, said the people, who declined to be identified because the information is private. Goldman Sachs, which received $12.9 billion after the 2008 rescue tied to contracts with the insurer, has said it didn’t need AIG to be rescued because it was hedged against the firm’s failure.

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“We want to know the identity of those parties, partly just to know where American taxpayer dollars went, but partly to assess Goldman’s claim,” said Elizabeth Warren, chairman of the Congressional Oversight Panel, in a Senate hearing this week. “We cannot evaluate the credibility of their claim that they had nothing at stake one way or the other in the AIG bailout.”

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ΩΩAnd thus begins some unentangling of the many tentacles of Goldman Sach’s derivative swap dealing business.  That is, instead of being ‘covered’ they were naked but instead of getting direct help from the US taxpayers, they got it secondhand.  The collapse of Bear Stearns didn’t faze GS due to that being a rival in the derivatives swap markets, one to be chopped up and eaten.

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ΩΩBut it looks like the Lehman Goes Bankrupt, Bank of America Buys Merrill Lynch disaster Sept. 2008 was a linchpin moment.  That is, this was one of the key parts of the fraudulent hedge swap derivatives market and it exposed the entire system as a total fake, that is, no one was really hedged at all, anywhere on earth.  They were all in the same leaking boat that sprung a leak with the crash of Bear Stearns.

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ΩΩThe U.S. take over of AIG in September, 2008, cost us all $85 Billion and forced all the major Central Banks to inject cash as credit dried up.  Since then, we now own 80% of AIG which means we, not the biggest, richest bankers on earth, must settle all hedges based on AIG-written CDO and OTC deals.  That is, we are stuck on the hook here.  All the goofy, offshore, tax evading, political-bribing big international investment bankers now can force us to pay up on all of their damn derivative hedge deals.

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ΩΩI applaud Elizabeth Warren in her attempts at getting these creeps to give her vital information, after all, we are now the ones who have to deal with these odious hedging deals and I want every penny of the overhead costs whacked off of all the executives of Goldman Sachs.  Hell, put them in Madoff’s cell.  He needs company and they can form a minyan on Friday evenings.

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ΩΩThe non-Jewish guys in this fraud can move into a Mafia boss cell.  There are many to choose from.  The infamous Darth Vader bankrobber story is amusing in that he uses a straightaway method to steal money.   The petty robbers are penny ante and all go to jail while the biggest robbers corrupt the entire system and get away with murder.  So if they catch the Darth Vader robber, put him in a cell with the CEOs of Goldman Sachs and JP Morgan.  Have a nice day!

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ΩΩMeanwhile, in the real world, China forges forwards with the 50 Year Plan to take over all US industrial production systems and control the US by being our bankers:  Rutgers’ Chinese Solar Panels Show Clean-Energy Shift (Update2) – Bloomberg.com

At Rutgers University in New Jersey, 7,600 panels convert sunlight into electricity, saving some $200,000 in energy costs this year in the biggest solar-power experiment at a U.S. college.

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Yingli Green Energy Holding Co., China’s second-largest solar-panel maker, supplied the $10 million project. Yingli is one of several Chinese manufacturers that have slashed costs to reduce global prices for solar modules by about 50 percent in two years. The drive made them more affordable for buyers from Rutgers to Wal-Mart Stores Inc., the biggest U.S. retailer.

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“It’s all about economics,” said Chief Executive Officer Al Bucknam of SunDurance Energy, the South Plainfield, New Jersey, installer that picked Yingli over Western competitors on price and helped sell the deal to Rutgers as a money-saver.

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ΩΩOnce upon a time, when my father was President Jimmy Carter’s alternative energy head, he sold the President on the idea that the US would see a flowering of US solar panel production which would cut our reliance on foreign oil and thus, balance our trade deficit which began to soar after we began importing foreign oil.  Kill two birds with one stone!  Jimmy Carter then sent my dad to Beijing at the request of the Chinese where he explained the exact same thing to them.

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ΩΩThey were wildly enthusiastic about it and set to work, busy little bees as they are, the Chinese listen to my family for some reason!…HAHAHA.  Anyway, they did it and then began ruthlessly reducing the overhead cost of producing these solar panels and as per their plan, will dominate and control world solar panel production.  Incidentally, my dad went to Germany with the same story and today, Germany leads in the solar energy sector.  Basically, the solar panel production markets is a head to  head battle between Germany and China.  The US, as usual, is locked out.  So we import oceans of expensive foreign oil AND we import our solar panels, too.  A lose/lose situation.

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ΩΩInstead of competing with China and Germany, the US is defending Germany while Germany scrambles to cut its military budget drastically (as is all of NATO) the US has decided the best way to win the struggle for global power is to go around menacing the rising Chinese empire as well as Russia.  This is a foolish thing that will end poorly.

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U.S. Challenges China on Island Chain – NYTimes.com

Opening a new source of potential friction with China, the United States said on Friday that it was ready to step into a tangled dispute between China and its smaller Asian neighbors over a string of strategically sensitive islands in the South China Sea.

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Secretary of State Hillary Rodham Clinton, speaking in Vietnam at a meeting of the Association of Southeast Asian Nation, or Asean, said, “The United States has a national interest in freedom of navigation, open access to Asia’s maritime commons and respect for international law in the South China Sea.”

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ΩΩSo, while running rampant war games right on the front doorstep of a deranged North Korea, we go trotting off to SE Asia to stick our noses into the affairs of various countries down there that kicked us out years ago and who would dearly love to force us to eat up all the costs of protecting themselves while they poke the Chinese Dragon in the eye?  Talk about insane!

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ΩΩOf course, to delusional militarists in the US State Department and Pentagon, the more wars, the more money and the more power.  So what, if this is bankrupting America?  There is no glory in patrolling the Gila Desert in Arizona!  Tons of glory, killing people half way around the world.  Alas for Ms. Clinton, the ASEAN countries are simply using the US as a stick to get a better deal from China.  They have zero intention of letting us rule them via proxies.

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BBC News – Serbia rejects UN legal ruling on Kosovo’s secession

The decision by the International Court of Justice (ICJ) in The Hague opens up the possibility that Serbia will fight in the UN General Assembly to solve the dispute through negotiations, the BBC’s Mark Lowen reports from Belgrade.

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Other countries facing their own secessionist problems, from Spain to China, may view the result with concern, our correspondent notes.

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“Serbia will never recognise the unilaterally proclaimed independence of Kosovo,” Serbian President Boris Tadic told reporters in Belgrade after the ruling.

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ΩΩMight makes right.  The US supports ‘freedom movements’ so long as they are launched against commie nations or Muslim powers.  Case in point is China: there isn’t a ‘freedom movement’ we don’t totally love and wish to succeed.  But all hell breaks loose if the wrong people try this!  The Palestinians are treated like sub-humans and if they resist, the US crushes them under foot until nothing is left.  Just yesterday, the Zionists funded by the US taxpayers, annihilated yet another poor Palestinian community on the West Bank for ‘security reasons’.  That is, there has to be this extensive no-man’s land between totally illegal Israeli Jewish enclaves in the West Bank and the natives.

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ΩΩThe US protects Kosovo and gives them money and military protection as well as cover in the UN.  The US does the exact opposite for the natives of Palestine. Arab guilty of rape after consensual sex with Jew | World news | The Guardian: a typical racist ruling in Israel.  This is exactly how the Jim Crow laws worked in the US before becoming illegal thanks to the Civil Rights Act.  Before the Holocaust, the Nazi sex laws were EXACTLY like this!  If one grandparent was a ‘Jew’ then you couldn’t have sex with the Master Race!  Eventually, anyone who had even just one Jewish grandparent was put into slave and then death camps.

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ΩΩThe urge to imitate the Nazis in every possible particular is troubling so the Jews fix this by denouncing anyone who notices this as ‘anti-semitic’.  But the sad truth is, the Nazis are now Jews.  This all leads me back to some messy things.  One of which is, the flood of illegal aliens is bad in many ways.  The problem facing Palestine is the flood of aliens who are legalized while the natives are denied even the most basic civil rights and the US struggles with this concept, too.  And can’t make up our collective minds about this matter.

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No Visa, No School, Many New York Districts Say – NYTimes.com

Three decades after the Supreme Court ruled that immigration violations cannot be used as a basis to deny children equal access to a public school education, one in five school districts in New York State is routinely requiring a child’s immigration papers as a prerequisite to enrollment, or asking parents for information that only lawful immigrants can provide….But the Education Department has resisted doing anything to address the issue directly, in contrast with several other states — including Maryland, Nebraska and New Jersey — where education officials have taken strong steps in recent years to halt similar practices….

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…the 1982 Supreme Court decision, Plyler v. Doe:  That ruling, considered by legal scholars to be a high-water mark of immigrant rights, held that under the Constitution, all children who live in a district must be given equal access to a public education from kindergarten through 12th grade, regardless of whether they entered or stayed in the country in violation of federal immigration rules.

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To refuse them, Justice Harry A. Blackmun warned in his concurring opinion, “raises the specter of a permanent caste of undocumented resident aliens, encouraged by some to remain here as a source of cheap labor,” yet denied the basic benefits available to others.

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ΩΩMillions of illegal alien children don’t simply go to school and learn alongside the natives.  They are foreigners and thus, have a poor grasp of our language and often come from peasant backgrounds which are not very conductive towards educational skills.  If the US cut our ‘Defense’ (sic) budget to a reasonable size, say, the same proportion as Europe’s budgets, we could have the Federal Government fund the education of not only illegal alien children who shouldn’t be here but also our OWN children!  An amazing thought, that!

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ΩΩSince schools are funded by property owners based on the ancient ‘farmers are the vast majority of workers’ system of our earliest schools, there is tremendous incentive for honest citizens to NOT pay for illegal aliens who are allowed to cross into our country at will while the US government refuses to defend our own home base.  Thanks to a thoroughly corrupt Congress and a US media warmongering system, we are egged into fighting here, there and everywhere on earth while it is like pulling teeth to force our own government to put up a measly 1,500 troops on our own endangered borders!

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ΩΩWe have over 50,000 protecting Iraq!  And they hate us and we can’t roam the streets there without being killed by them since we are basically illegal aliens there!  Bring the troops home and have them six deep lined up along our threatened borders!  End of story.  But no, we are supposed to shell out our own money to pay for this flood of often illiterate foreign children.

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Once a Leader, U.S. Lags in College Degrees – NYTimes.com

The United States used to lead the world in the number of 25- to 34-year-olds with college degrees. Now it ranks 12th among 36 developed nations…Canada now leads the world in educational attainment, with about 56 percent of its young adults having earned at least associate’s degrees in 2007, compared with only 40 percent of those in the United States….

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… While almost 70 percent of high school graduates in the United States enroll in college within two years of graduating, only about 57 percent of students who enroll in a bachelor’s degree program graduate within six years, and fewer than 25 percent of students who begin at a community college graduate with an associate’s degree within three years.

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The problem is even worse for low-income students and minorities: only 30 percent of African-Americans ages 25-34, and less than 20 percent of Latinos in that age group, have an associate’s degree or higher.

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ΩΩThe drop out rate of minorities and Hispanics is very high.  The prison population of both is also very high.  In many cities flooded with people who have low expectations to graduate from high school or even finish junior high means most parents who have any desire to protect their own children must send them to private schools.

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ΩΩPrivate schools in the major cities are mushrooming in numbers.  When I lived in NYC, I tried sending my first child to a ‘good’ public school, not the ‘bad’ one in my neighborhood, the one that had drug shoot-outs in the playground.  Even so, I had to pull her out and enroll her in a private school.  It was hazardous for her physical well being.  Meanwhile, I paid school taxes.

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ΩΩThis is a HUGE problem which is being dealt with by having a public school system that is for a falling lower class with few expectations running on property taxes while everyone with any income or property must pay yet a second time for a real school. This dual system is set to TOTAL FAILURE.  It is a catastrophe that will only grow worse and worse.  A great way to make this collapse happen is to fill the public schools with children whose parents are criminals.

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ΩΩAmericans are worried about racism yet we are creating entire school systems that are most segregated than under Jim Crow due to the collapse in lower working class wages and working conditions which also was created by the flood of illegal aliens competing at the bottom against blacks and other minorities already here.  Pretending this won’t lead to a very bad end is silly.  This will end badly.  And must be resolved in some fashion.

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ΩΩOf course, patrolling our borders aggressively is step one in stopping this dangerous dynamic.  Step two is to undo the dual citizenship business.  People who hold two passports and vote in two elections and fight in foreign armies like the IDF must make a final choice, which country is their home and toss out the other allegiance.  Otherwise, we will become Kosovo.  What we wish to do to the Chinese will happen to us.

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ΩΩThe Retirement Nightmare: Half of Americans Have Less Than $2,000 Banked for Their Golden Years | Economy | AlterNet:  This is the other showdown.  The US retirees often are homeowners and are the major source of school taxes.  As the baby boom retires, they will NOT want to pay for a flood of foreign language illegal aliens needing special schools.  Period.  There is no political way for this to happen.  One by one, people will vote down school funding to as close to zero as humanly possible and since more and more families must use private schools, anyway, they, too, will vote to end public school funds.

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ΩΩThis is INEVITABLE unless we change course.  The only way I see is to fund both better security on our borders and to defund the Pentagon and give all the money to the schools.  And hell will freeze over before that happens.

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CA city seeks resignations of high-paid officials | Long Island Press

The City Council in this small, blue-collar suburb of Los Angeles intends to ask three administrators whose salaries total more than $1.6 million to resign Thursday or face possible firing.

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The officials include Chief Administrative Officer Robert Rizzo, who earns $787,637 a year – nearly twice the pay of President Barack Obama – for overseeing one of the poorest towns in Los Angeles County.

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The others are Assistant City Manager Angela Spaccia, who makes $376,288 a year, and Police Chief Randy Adams, whose annual salary of $457,000 is 50 percent more than that of Los Angeles Police Chief Charlie Beck.

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ΩΩI got that picture from Google maps.  Tiny, little working class cottages on tiny postage-stamp lots.  The housing bubble was immense in LA.  These hovels went for 10X their true value.  Thanks to California tax laws, if you don’t buy during a bubble, the price of the school and city taxes are set at a much lower level than if you buy during a bubble.  So the funny tax money funds were abused by a clique running this small community and ruthlessly looted.  Pretty much along the lines of the Pentagon, Congress, Goldman Sachs, etc: looting is the sole business of anyone in public or private.  Get the money and run for the hills.

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ΩΩOf course, on top of all this, we are retiring with virtually no savings.  The poor taxpayers in this suburb of LA were funding the lavish lifestyles of the ruling clique while being crushed by onerous taxes.  If The collapse of civic duty is a key element in the death of all empires.  When everyone from top to bottom is out to line their own purses, we get a total social collapse.  If 50% of Americans have zero savings for retirement, this is a catastrophe.  We can’t have this and have immense school tax obligations!  Or wild spending governments running up huge debts.

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Economy set for triple whammy, admits Bank chief – Business News, Business – The Independent

The British economy faces a triple whammy of higher inflation, lower growth and rising unemployment, according to one of the Bank of England’s most senior policy makers. Living standards over the next few years will rise only “minimally”.

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In an interview with The Independent, the Bank’s chief economist, Spencer Dale, said that he did not expect inflation to return to its 2 per cent official target before the end of next year, about a year later than previously hoped, partly because of the hike in VAT to 20 per cent from January announced in the Budget.

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ΩΩA 20% sales tax???  Wow.  I thought our dear, detested NY state sales tax of 8% was obscene!  My former father-in-law graduated with a math major degree in 1932 just in time for the Great Depression.  His first job was to help configure the EMERGENCY 2% NY sales tax.  He loved to say, ‘All emergencies are forever.  And if it is a tax, it is really forever and will only go up.’  The futile tax cuts were designed deliberately to the the least good for the working class.  They need relief from school taxes, not income taxes.

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Britain no longer has the cash to defend itself from every threat, says Liam Fox – Telegraph

Dr Fox’s frank admission also casts doubt on the future of the 25,000 troops currently stationed in Germany. The Defence Secretary has previously said that he hoped to withdraw them at some point, leaving Britain without a presence in the country for the first time since 1945.

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ΩΩNATO will collapse.  Of course, the US will prop it up and like a swimmer carrying ten people who are drowning and who refuse to doggy paddle, themselves, we will be pulled under especially since we are swimming with several entities hanging on which we beat up and brutalized and ordered them to swim with us.  These people are gleefully trying to drown us and are succeeding.

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ΩΩSo we need for Germany or Britain to doggy paddle for us and help us keep the Afghani and Iraqi swimmers afloat and both are lapsing into passivity so we struggle onwards.  Time to take on Vietnam, Cambodia and other nations who don’t want to swim but would love to hike a ride on us, too!  Glub, glub, blub, down under we go.

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