Tuesday, June 8, 2010

Time for law abiding American citizens to stop paying taxes, start a new government? 8 of 13

David Degraw has written an outstanding comprehensive explanation of what’s really happening in the US economy. He’s given me permission to reprint it here. I also recommend his site "For Our Economy" for citizen grass-roots activism for economic justice.

Regarding the title of Americans starting a new government, I remind readers of the Declaration of Independence; our core American principles of government. The below links document that US political “leadership” is not even close to following our constitutional limitations and therefore are “leading” unlawfully. Americans with an oath to defend the US Constitution against all enemies, foreign and domestic, should choose to either honor their oath or admit allegiance to the current fascist imposter of the greatness this nation is on paper and in our ideals.
Another excellent summary is economist James Galbraith’s recent expert testimony to the US Senate Judiciary Committee of what will become “emperor has no clothes” obvious: the US economy is a rigged casino. Here is my best pitch to explain and document the fraud. Here is my best explanation of the obvious solutions. Here are my comprehensive resources to understand the US oligarchy in all its unlawful infamy in unlawful wars, war lies, torture and indefinite detention (including against Americans), and our controlled economic demolition.
I’ll present David’s documentation and analysis in 13 segments; each with his introduction. Use the “previous” and “next” buttons under the title to navigate to the different segments. Please share broadly with the understanding that all our economic problems really exist on paper only. They are propagandized and managed frauds; solved almost instantly by an economic structure designed for the public good rather than designed for an oligarchy. I stake my professional reputation on the factual reality of these statements and prove their objective existence in the data in the above links.
I appreciate David Degraw’s leadership to research and communicate the facts, and help us all embrace the terrible truth of US fascism that We the People must expose and end in order to unleash humanity and build a brighter future for all of us.
Look and verify for yourself. Res ipsa loquitur.
Is It Time for Law Abiding American Citizens to Stop Paying Their Taxes and Start a New Government?
By David DeGraw, AmpedStatus Report
The evidence is now overwhelming. The United States government has facilitated the theft of trillions of dollars of national wealth and 99% of the US population no longer has political representation.
Now that I have your attention, I want to make it clear to you that I am being rational and serious when I ask this question: Is it time for law abiding American citizens to stop paying their taxes and start a new government?
Before you roll your eyes and dismiss me as some “extremist,” let me explain the situation to those who are unfamiliar with my past reports. In my report on the Economic Elite Vs. The People of the United States, I lay out the case proving that our economy and tax system has become an organized criminal operation. I defy anyone who spends time researching and analyzing the facts and overwhelming evidence to support this claim to prove otherwise. I invite anyone who thinks I’m wrong to a debate on national television. I’m talking to you, Tim Geithner, Ben Bernanke, Larry Summers, Lloyd Blankfein, Jamie Dimon and President Obama!
I torturously spend 60 plus hours a week researching this and the torrent of devastating news and evidence is mounting by the minute. The staggering level of theft continues unabated. As I am watching this unfold, I am horrified thinking about the severe consequences that have only just begun to reap their toll. Our nation is being raped and pillaged. Our future is going up in flames and our government isn’t even making the slightest effort to put out the fire. In fact, they are purposely pouring gasoline all over it.
“There’s a time when the operation of the machine becomes so odious—makes you so sick at heart—that you can’t take part. You can’t even passively take part. And you’ve got to put your bodies upon the gears and upon the wheels, upon the levers, upon all the apparatus, and you’ve got to make it stop. And you’ve got to indicate to the people who run it, to the people who own it that… the machine will be prevented from working at all.” – Mario Savio
So let me take a deep breath and back up for a minute… and explain the urgent gravity of our current crisis.
VIII: Hank “Pentagon Sachs” Paulson
To be sure, there is a list of about 50 pivotal players in all who had a significant hand in the creation of these fraudulent and deceptive trading schemes and the removal of laws and oversight to keep these financial WMDs developing to the point where they were able to steal trillions of dollars. After all, this is not about a few individuals, this is about a systemic organized criminal operation on a massive scale. However, in my analysis, the one person who has the most smoke around him is Hank Paulson.
People need to look at the 50 pivotal players who caused the crash of the economy, and then benefited greatly from it, as a Wall Street al Queada network with Paulson being the equivalent of Bin Laden. Actually, Paulson is much worse than Bin Laden. Analyzing the devastation from the economic attack thus far, it has been equivalent to a 9/11 attack every single week. And these attacks continue unabated.
Evidence shows that Paulson was the mastermind behind this engineered crisis. As I detail in my Financial Coup d’Etat report, this is demonstrated by some of the pivotal and unilateral moves that Paulson made in the run-up to the crisis and during the bailout.
When Paulson became CEO of Goldman Sachs in 1999, one of his first orders of business was to come out strongly in favor of the Commodities Modernization Act, which, as Professor Coffee stated, “deregulated over-the-counter derivatives.” In 2000, Paulson’s next move was to have Goldman Sachs, along with the largest Wall Street firms, join with the largest oil companies to form the InterContinental Exchange (ICE). ICE “is an American financial company that operates Internet-based marketplaces which trade futures and over-the-counter (OTC) energy and commodity contracts as well as derivative financial products.” Since ICE was started, the price of oil has skyrocketed and profits have exploded for the oil companies and firms trading on this exchange. For an example, in 2000, when ICE was formed, the average American family spent 7% of their income on food and fuel. Today, under the pricing set by ICE, the average American family now spends a record 20% of income on food and fuel.
As I wrote in my Af-Pak War Racket: Masters of War report:
“A Congressional investigation into this exchange found that these companies were fraudulently inflating the price of oil by executing ’round-trip’ trades where one company would sell shares in oil to another company who would then sell the shares right back. This would drive the price of oil to however high they wanted it to go to. ‘No commodity ever changes hands. But when done on an exchange, these transactions send a price signal to the market and they artificially boost revenue for the company. This is nothing more than a massive fraud, pure and simple.’
So when oil was selling at $147 a barrel, the actual worth was most likely closer to half that price.”
After establishing ICE, in 2004, Paulson led the infamous “Gang of Five CEOs” who demanded that the SEC get rid of the Net Capital Rule. This further opened the derivative floodgates and eventually unleashed the first financial WMD upon the US economy. Paulson personally made $700 million while building his ticking time bomb. After cashing out, he then moved to the US Treasury, where he was conveniently placed, just as his bomb went off, to have the lead role and almost complete control of the US economy when it all crashed.
With military precision, he maneuvered his operatives into key positions, often former employees of his at Goldman Sachs. His moves were so riddled with egregious conflicts of interest, it’ll make your head spin. The assassinations of his key rivals, Bear Stearns and Lehman Brothers, the unilateral decision to put Goldman’s Audit Committee Chairman Edward Liddy in charge of the AIG, placing Goldman’s Dan Jester and Neel Kashkari in pivotal bailout roles, turning Goldman Sachs into a bank holding company - this list goes on and on.
For another history lesson that the “news” media seems to have forgotten, we have to look further into Paulson’s background. Paulson began his career in the Pentagon and worked for former Defense Secretary Melvin Laird. Laird is at the top of the food chain when it comes to the military industrial complex and US intelligence. There are a lot more details here that I will follow up with at another time, but to quickly get to the point: if you understand how US intelligence works, you don’t just work hand-in-hand with Melvin Laird and then cut ties, and independently end up as CEO of Goldman Sachs, and then (what do you know?) just before the economy is about to blow, Paulson is appointed Czar of the Bailout by Bush/Cheney.
On top of this, we also need to remember that Paulson was intimately involved in Watergate. Yes, you heard me right… Watergate. Working for the Nixon Administration, Paulson was the assistant to John Ehrlichman during the Watergate scandal. Ehrlichman was “convicted of conspiracy, perjury, and obstruction of justice for his part in the Watergate break-in and cover-up.” Just to add one more layer to Paulson’s shady background, another highly unreported fact is that while leading Goldman Sachs, Paulson developed very intimate relations with members of the Chinese elite, visiting the country over 70 times.
For now, I am going to leave my Paulson detour and get back to Goldman’s current shenanigans.
The two terrorists with the biggest derivative bombs are now throwing their ever-growing power around like drug addicts on a bender. As Bloomberg recently reported:
Goldman Sachs Group Inc. and JPMorgan Chase & Co., two of the biggest traders of over-the-counter derivatives, are exploiting their growing clout in that market to secure cheap funding in addition to billions in revenue from the business. Both New York-based banks are demanding unequal arrangements with hedge-fund firms, forcing them to post more cash collateral to offset risks on trades while putting up less on their own wagers."
As an ironic side note, in Italy, the birth place of Mafia rule, they are taking the lead in fighting back by charging JP Morgan and co-conspirators with derivatives fraud. They fraudulently robbed the city of Milan by misleading them, as Bloomberg put it, “over swaps that adjusted interest payments on 1.7 billion euros ($2.3 billion) of bonds sold in 2005.” This is just a tiny drop in the global theft bucket. I mention it just because it is nice to see a country actually making an effort to recoup some of the theft.
While we are in Europe… Greece, which was looted and plundered by Goldman Sachs and friends, now faces draconian austerity measures and major cuts in social programs with drastically increased taxes. The people are taking to the streets and fighting back. They have been rioting and storming Parliament, they even blew up a JP Morgan office and tried to blow up several Citigroup banks.
Unfortunately, Greece is a canary in the coal mine when it comes to the future of the United States.
And guess what, passive US taxpayers? With the people in Greece and Europe actually standing up to their governments, Greece will be bailed out, not by Europeans, but by… us… yes, the US taxpayer. Uncle Sam’s economic imperialism arm, the International Monetary Fund (IMF), is riding in to the rescue. Of course, the Greek public would be wise to rebel against this idea as well, because any country that makes a deal with the IMF ultimately ends up as a debt-slave nation.
Getting back to the derivates scheme, a recent McClatchy report titled, “Enabling Wall Street’s secret gambling problem” explained how Wall Street firms spent $200 million of our own tax dollars to fend off any regulation and summed it up this way:
“If you’d just driven the economy off a cliff, wouldn’t you be embarrassed to show your face on Capitol Hill? And surely, I thought, these firms wouldn’t spend their taxpayer bailout money on high-priced lobbyists.
Boy, was I naive. Last year alone, Wall Street spent more than $200 million to block efforts to rein in their recklessness. And the investment is paying off. The financial reform bills moving through Congress are full of holes for greedy bankers to exploit.
Just look at the Senate Democrats’ new bill. One place you can see the Wall Street lobbyists’ handiwork is in all the exemptions for derivatives, the complicated financial instruments blamed for accelerating the crisis.
Analysts say the bill would exempt up to 40 percent of derivatives from being traded on open exchanges. This means that high flyers could still do their riskiest gambling in secret - far from the eyes of any regulator cops.
This type of over-the-counter trading is kind of like backroom poker. In most cases, it adds no value to the real economy, so it’s exactly like betting. Except if the game goes really badly, it’s not one unlucky gambler who stands to lose his shirt - it’s the entire economy.”
When the derivatives bell tolls, which is inevitable, the stock market will not only plummet, it will cease to exist. The derivatives market is the biggest Ponzi scheme in history, and we all know what eventually happens in Ponzi schemes. Speaking of backroom poker and Ponzi schemes, have you seen the latest news…

We Are The Ones We Have Been Waiting For from PuppetGov on Vimeo.

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