January 10th, 2012
in Op Ed
All the discourse about deregulation or regulation is a diversion from the real fact that the vehicles to steal keep being put into place. The criminal oligarchs are going to set the stage through the back door while everybody is talking about Dodd-Frank, consumer regulatory side shows, etc. Since the big banks were not busted up, these side shows are nothing more than smoke screens and diversions! How does one “regulate” a trillion dollar bankster? And is it really necessary to put more regulations on a $100 million banker?
Meanwhile, the LTRO exchange debt for assets mechanism in Europe, (discussed in my article Peak Heist) is a shocking model of how it will work, yet nobody has seen through it. When the debt crisis arrives in the US, (I think this year), a version of this will be rolled out. In fact without shrinking the power and size of banksters before shrinking government, this sets the stage for abusive privatization transactions. The notorious parking meter scam in Chicago is an example. I also fear tax farming will be employed. These are up front payments in the form of debt exchanges in return for future tax revenues. Although I have no strong objections to shrinking government this is not the way to do it.
The Republicans are so champing at the bit to shrink government that it is easy to visualize them literally giving away government assets to bankster cartels for a song. The Democrats are every bit as cynical and corrupt, but their real motivation is to allow the same process under the guise of fiscal crisis to “save programs” and “save the financial sector”.
So the end game here will be abusive privatizations in exchange for government debt. The assets will be given away in exchange for fictitious capital debt securities. US Treasuries are the most overpriced security imaginable to use as currency for this. The theory of privatization in itself is not necessarily bad, but what will be appalling is that the kleptocrats are going to grab this bone to once again loot and raid in a major way. The real solution would be to force the banksters to absorb much of the the debt. But instead the prevailing ideology is to privatize away public assets in yet another debt swap scam.
The only difference between puppets like Romney (Romney’s role in private equity) and Obama, is in determining which of these criminal kleptocrats feed the most at the tar pit. To the average American it will matter little , the end result is yet another enormous wealth transfer. This scheme effectively combines the debt slave model with eliminating the remaining benefits citizens get from public ownership. Imagine a world where there are both high taxes to pay for debt service and a toll at every corner.
Europe’s LTRO: a series of highly questionable and suspect transactions that favor banksters.
chart source: Wall Street Journal
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