Thursday, March 05, 2009

The Silence Of The Lambs

Sheep are sheared. Sheep are slaughtered. And they endure it all in silence.

There are riots and protests against the bankers in Europe but none in America. Though Gerald Celente said there will be food riots in America later this year. Americans are still content to allow the bankers and their politicians in Washington to fleece us and lead us to the slaughter.

I am concerned that no one has spoken out more forcefully about the Bailouts in general and AIG in particular. The American taxpayers had already given AIG 150 billion dollars in three installments and now are now giving them an additional 30 billion dollars.

All of these AIG bailouts have gone to cover Credit Default Swaps (CDS). A Credit Default Swap is a hybrid created with the features of a derivative and of insurance. Derivatives are bets on the future value of a commodity like oil or gold. Derivatives are regulated by the Commodities Futures Trading Commission (CFTC.) Insurance is regulated by all fifty states.

Credit Default Swaps are unregulated which is why Wall Street loves them. Credit Default Swaps protect a buyer from the collapse in value of a mortgage backed security. If there were no CDS, then they could not unload their worthless securities all over the world. Hence the riots in Europe. CDS are like your old fashioned insurance policy in this respect: If you don't make the payments your coverage is canceled real quick.

So why has not one pundit or commentator on controlled TV asked one of those congresspersons or presidential spokesmen why Credit Default Swaps have not been canceled by the Bailout authorities or by the Congress? If we had suspended all payments, then the Credit Default Swaps would have expired soon after election day in 2008.

The correct answer is that the media, the government and Wall Street want to continue shearing the sheep until the day (later this year) when all the sheep are slaughtered, all their savings and pensions are confiscated and riots make their cities unlivable.

Then the sheeple will be well prepared for Wall Street's next step which is the end of all freedom and the end of America as we knew it.

As I said in previous essays, I do not believe Wall Street will successfully crush our Spirit. They will not succeed. But we do need to understand what Wall Street is doing so we are in a better position to survive the coming dangerous and hard times.


Post a Comment

<< Home