Thursday, May 19, 2011

Tyranny at the Treasury Department or How I Learned to Love the Debt Bomb.

It would be my guess that both the two headed beast of Repulicrats in Congress and Tiny Tim the tax cheat at Treasury are breathing a collective sigh of relief at the moment. They just rolled out the opening precedent for the largest theft in history and the public’s response so far has been; “the Govonator did what?” Between Arnold’s peccadilloes and those of IMF chief Strauss-Kahn they could have not asked for a better cover for or distraction from this grand little scheme.

Maybe someone should check Geithner’s phone and email logs to see how long it took Helicopter Ben at the FED and his good buddy Blankfein at Goldman Sachs to call in their congratulations. I’d bet the first line was something like: “Debt ceiling? We don’t need no stinking debt ceiling!”

Getting pushed up against the legislative limits, rather than actually cutting off some of the bureaucrats budgets Treasury announces that it will start “borrowing against” the pension funds of Federal employees. They further assured us saying that there was no reason to worry because the Treasury was “legally” required to pay back those funds as soon as they became available under any new increase in the debt ceiling. The justification for this little sleight of hand was that that the pension funds are held in government controlled accounts. In reality the Treasury Department is simply converting whatever equities that are held by those funds into Treasury bonds. The banks collect huge fees for conducting the transactions, they kick back the pocket change to the politicians in campaign contributions, everybody keeps their mouth shut, and the powers that be laugh at the rest of us while making their deposits in off shore accounts.

So how much is in those accounts? What 2 – 3 trillion or so? Well that should be enough to keep up the spending charade for the next year or so while the public is kept distracted by the so-called “battle” over the budget and any debt ceiling legislation. Anyone who thinks this is anything but the first round in an even bigger scam to come is either stupid or already works for a politician or investment bank. With those monies now fully under their control, the Eye of Sauron will next fall upon that fat and inviting $10 trillion or so sitting in private IRA and 401k accounts. Well stealing from government employees is one thing right but how could they justify stealing private funds you say? Herein lays the all powerful and ubiquitous “commerce clause.” I can hear it already, “Well you see the government has done you the favor by allowing you to save all that money without letting Shylock, I mean the government, taking its ‘fair share’ through taxation. So at least, what 30% - 40%, is actually the government’s money and not yours.” It will kind of be like the Germans marching into the Sudetenland, they got their foot in the door, took what they said they were entitled too and after a short breather gobbled up the rest of Czechoslovakia.

Hey it worked for Greece didn’t it? It’s working in Spain right? The NY Times and the Washington Post aren’t running any front page stories on renewed riots in Greece or street protests in Madrid so they're either not happening or they're just not that important, right?

It’ hard to believe that Congress or the Obama Administration are serious about actually cutting the profligate spending. They both know that if they do, that number will come straight off the top of the GDP. But then maybe that’s part of the plan. The GDP falls, the market panics, the FED has it’s excuse for QE3, the FED loans even more money to Wall Street at 0%, they then buy up collapsing equities at bargain basement prices, the market goes back up and voila, problem solved! Better yet another couple of trillion dollars previously held by private individuals and pension funds are now in the hands of the Blankfein and friends and those now liquid funds are now ripe for the picking and conversion into Treasury Bonds!

So instead of complaining all you ingrates need to be thankful for the wizardry of the banks that have saved the economy once again! Hey those T-Bills are going to make wonderful wallpaper for you luxury one room retirement condo. That is if you don’t use them all for the toilet paper you won’t be able to afford first!

1 comment:

  1. -
    You, sir, have an amazing ability to connect the dots and
    "put it all together" leaving no room for comment. Thanks.


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