Looting America for Power and Profit
For more see The Economic Storm and the Silver Lining and The Clinton Cow in the China Shop
You have probably noticed that the economic bubble popped just in time for the election. This was probably not by chance. It took decades of creeping socialism in the US by a range of traitors and venal politicians to create the bubble, but it took some particularly devious machinations to pop it with such perfect timing.
Written by Dagny D'Anconia
Friday, 31 October 2008
The most recent hostage situation was the American pension funds being held hostage by the Washington and New York elite. No doubt it was a tempting prize as so many baby boomers approached retirement. The pension coffers were as full as they would ever be.
So when Barney Frank, Obama, Pelosi and various fund managers told us they could save the free market system by destroying it in a bailout, Republicans went along with the demands. Bipartisanship is just another word for Collaborating with the Enemy. Unfortunately, after the ransom was paid the economic hostage died anyway. The elite never did have the power to save the economy as they promised.
The economic bubble was created over decades by selling out the producers in America for the sake of consumers. Consumers were able to buy cheap goods from China et al. Cheap mortgages were also indirectly a gift from the Chinese. Bloated generous government was nearly cost free. Thus the electorate was fat, dumb and happily absorbed in living the good life beyond their means.
That kind of self indulgence does not make for wise political decisions, thus we were burdened with a creeping socialism and handicapped manufacturing base as was described in The Economic Storm and the Silver Lining. That is how we got this bubble.
You have probably noticed that the bubble popped just in time for the election. This was probably not by chance. It took decades of creeping socialism in the US by a range of traitors and venal politicians to create the bubble, but it took some particularly devious machinations to pop it with such perfect timing.
George Soros has been the master of economic hostage situations for decades. He made 1.1 billion pounds sterling by breaking the Bank of England on "Black Wednesday" in 1992. He has been accused with doing the same sort of trick with Thailand and Malaysia.
In doing so he has been reenacting his disturbing teen years where he carted away things from the homes of fellow Jews after the Nazis abducted them. From his point of view, someone else would have taken advantage of the unseemly situation if he had not. Similarly, he watches for governments to take unwise actions, and then takes advantage of them. Without unwise actions by governments, he would not have the opportunity to ply his trade.
This strategy has been used on unwise allies such as Britain on Black Wednesday, and on unwise enemies such as the Soviet Union when Soros assisted the Rose Revolution in Georgia and the Orange Revolution in the Ukraine. He has also funded opposition to the hugely unwise government in Zimbabwe. Soros takes great pleasure in bringing down prideful governments.
He says he believes in freedom, but it is a different sort of "freedom" bound by a strong central government where he pulls the strings. He is against private gun ownership, as that would allow a rival to the central government's power. He does not believe in God either, as that would be yet another rival source of pride, morality and power.
He believes in letting and even encouraging people and organizations to fail and then cashing in where possible on the result. In that sense he resembles the classic definition of Devil: One who tempts and then profits from the fallen.
He is a scavenger capitalist: one that lives off of dead and dying corrupt economies. If an economy can be helped along on to its demise, then he is glad to help, and then help himself to the corpse. Instead of a Venture Capitalist, he is a true Vulture Capitalist.
His mark is found on numerous pieces of evidence of the recent economic crime. He has been quite upfront about his intent to "puncture the bubble of American supremacy". Soros can bee seen in the blue shirt below on the right of Obama and in the crowd in the debate picture below:
There was a way to pop the bubble: He had to get the Chinese to stop playing along with the artificially low Yuan and stop investing in American debt. Soros had influence on a wide range of people in the American Left and he used them and the Olympics to deeply offend China. Tibet suddenly became the cause de jour, and a wide range of Democrats went on the attack.
Bush did what he could to hold it off with concessions to the Chinese leadership, but with Hillary's special help (See Clinton Cow in the China Shop ) the balloon was pricked just as China's pride was. China said it would no longer be America's banker. China tried to take back their statement once the devastating cascade of financial consequences was underway, but once the damage was done it was too late. Everyone was heading for the exits and the momentum was too great.
When Soros instigated Black Wednesday, it spelled the end of Thatcher's Conservative control of Britain. Is it just a coincidence that this economic crash is so perfectly timed? It is more likely that the stimulation of the crash was timed to make money for Soros and place Obama in the presidency. Obama is more than a convenient beneficiary of Soros. Soros has coronated him as the one who will rule America and thus the world.
Soros funded ACORN, which has provided foot soldiers for Obama in the inner city and perpetrating voter fraud. Soros introduced Obama to the big lib money people in New York who had previously been beholden to Hillary. Soros was a business partner of Jim Johnson, who not only ran and cashed in on Fannie Mae for years and helped fund Obama, but also was chosen to help select Obama's running mate. Soros has funded many organizations like MoveOn that are backing Obama. Large amounts of foreign money are flowing into Obama's coffers, and there is no way to trace it. Some of that too is likely from Soros.
When the world banks all coordinated their intervention last week, Soros was there at the meeting in Europe chiding them for taking so long to go Socialist. Even Hugo Chavez was teasing that Bush was now somewhere to the Left of him for nationalizing banks. It was Soros's greatest coup, and he was going to be there on the scene to savor it.
So what about the economy and the rest of us? A recession will be short if it is not artificially locked in by socialism and old boy politics. Unfortunately the burden placed on the taxpayers by the bailout will be a socialist drag on the economy and may prolong the pain. Pensions and home values are well on their way to being drained to pay for the sub-prime housing scam. The retired Baby Boomers that had it so good will get their first real taste of austerity.
On the bright side, government and the Democrat leftists and Republican moderates will be universally hated for delivering so little and costing so much. People will have a desperate desire for real reform.
The British economy was hit by Black Wednesday, but the pound emerged upward over time. Black Wednesday made a new foundation for the financial rise of Britain. It will probably be so here as well. The consumer economy that dominated the last few decades will gradually be transformed into a more manufacturing and export based economy with the drop of the dollar.
The Chinese who have been warping the world economy and thus our politics for decades have lost vast sums in the crash. "Just over a year ago, they invested $3 billion in US private equity firm Blackstone and more than $5 billion in Morgan Stanley, only to watch their shares drop more than 70 per cent since. The Chinese government has refused to allow any major offshore financial sector investments this year. China's $200 billion sovereign wealth fund, which has made a series of loss-making investments in Western financial institutions since last year, could have as much as $5.4 billion frozen in a failed US money market fund account." link Their dollar holdings lost a vast amount.
As a result, they suddenly changed course and turned inward again. "It's fair to say the government now thinks that it's time to go back a bit, that it's probably too aggressive in encouraging industry," Senior Economist Louis Kuijs, of the World Bank Beijing Office says. Xinhua, the official mouthpiece for China said, "Worsening energy shortages, pollution and labor conflicts persuaded the government that this mode of economic expansion was unsustainable." Now the top official goal in China is to shift resources to helping the rural areas be more productive. The rich urban exporters in China have lost political power along with their money.
The economic and strategic implications are profound worldwide. China may yet be persuaded to reinvest in American securities, but only at a price that includes selling out sensitive and substantial hard assets or American concessions on national security issues such as Taiwan. If there is a mysterious rise in the market, look to China for the reason, and it won't be a happy reason for us.
Soros made money as economies fell. He is probably making money today, though it is intentionally hard to trace his financial actions. Folks using the DDI, including me, also made money lately. August 13 I called the DDI indeterminate and on August 19th I called the DDI down. On Sept 19th I called the DDI up but shortly thereafter, on Sept 22 I sent out an alert to TTPers saying the DDI was down. Sept 29th I sent out an alert saying the DDI was still down. It went up briefly with the worldwide bank interventions on the 13th, but as expected, that was only a three day or less reprieve and DDI down was called on the 15th.
On the morning of the 28th of October, The DDI switched to up. Apparently the forces so intent on trashing the economy had become so sure of Obama's success that they declared victory a bit early. While Obama was planning his party and starting to implement presidential policies, the moneypushers behind him were starting their own economic celebration.
China has taken its ball and gone home. The gluttonous game is finally over. America is finally going on a diet that may be rewarded in due time with political sanity, fiscal health and manufacturing strength. This is the reality and destiny that the co-dependent Chinese had been shielding us from. Like the Q instigated contact with the Borg in Star Trek, the Democrats brought us this disaster earlier than it would have come, but it was going to get us come sooner or later.
Remember that the physical things are still here. The houses that went to people who could not afford them went years ago. The damage was done back then. Ditto for the illusory stock valuations and house values. The damage was done long ago and it only became apparent now. The bailout is a war against the truth - a feeble attempt to keep the illusion alive - saying if we wish hard and intervene enough the Tinkerbell of the Consumer Economy will survive.
As Douglas Adams wrote: "This planet has - or rather had - a problem, which was this: most of the people on it were unhappy for pretty much of the time. Many solutions were suggested for this problem, but most of these were largely concerned with the movements of small green pieces of paper, which is odd because on the whole it wasn't the small green pieces of paper that were unhappy."
Remember they were only pieces of paper. What was lost was lost long ago when America was not paying attention. We are experiencing the recessionary spasm as things are put right. McCain and Palin may yet win and then fulfill their destiny as the great reformers America needs so badly. However, if socialism takes further hold as Soros wants it to, new damage will be done to real things, and Americans may be stuck in a time warp of economic downturn until the revolution comes.