Tuesday, March 24, 2020

Total system failure

"The New Federal Reserve as Garbage Can for All Capitalist Debt" (Rasmus):
"Yesterday, the Federal Reserve crossed its latest liquidity free money Rubicon. It announced it will provide unlimited credit–and assume the bad debts, not just of banks, shadow banks, and wealthy investors but for what it called ‘Main St.’
But by ‘Main St.’ it doesn’t mean consumers or households. It means that virtually any capitalist financial enterprise that has bad debt it can now dump it on the Fed. In today’s announcement of its latest ‘lending facility’, as it is called, the Fed declared it would ‘support’ small business loans, student loans, auto securitized loans, and credit card debt. But that does not mean the Fed will ‘support’ consumers and assume their loans. Oh no! It means it will support the financial lenders making such loans for students, auto purchases, credit cards and small businesses.
It means these lenders can now dump their bad, defaulted, or otherwise non-performing debt from credit cards, auto loans, student or small business loans on the Fed. The Fed will eat it for them, and add it to the Fed’s own $4 trillion plus indebted balance sheet–soon to rise to $8 trillion or more."
It's guaranteed that Trump will use the virus crisis to hide his covering the banks for their fracking loans.

Exactly as you would expect (I'd fall over dead of amazement if Pelosi did anything else):  tweet (Matt Stoller):
"It's not just on Pelosi. This is a total system failure. No one has fought back on the Dem side. They are all just letting this corporate coup happen."
"Debt and Power: An Interview With Michael Hudson":
"The only way you can escape and maintain stable economic relations is to write down the debts. That means you have to let many banks and their loans go under. That almost happened in 2008. Sheila Bair, the Federal Deposit Insurance Corporation head, wanted to foreclose on one bank that she wrote was more incompetent and crooked than the others. That was the largest bank: Citibank. The problem is that its sponsors were President Obama, Robert Rubin and basically Wall Street. Rubin was Secretary of the Treasury under Bill Clinton, and had become head of Citibank. His protege Tim Geithner became the bagman for Citibank, and was made Secretary of the Treasury. Geithner blocked the Obama administration and Sheila Bair from taking over Citibank.

Here would have been a wonderful chance. You take over one of the worst bank in the United States – the bank that made the bad bets and so many junk mortgage loans that it was called a serial criminal by former S&L prosecutor Bill Black, now at the University of Missouri at Kansas City. Imagine if Citibank would have been taken into the public domain and made a public bank. It wouldn’t have made more crooked loans. It would have made loans for what people and business actually needed. But Obama invited the bankers to the White House, and promised to protect them from the “mob with pitchforks.” The mob with pitchforks were his own voters, his supporters, the people whom Hillary called deplorables – mainly indebted wage-earners. Obama said that he would protect the banks from loss and not to worry about Congressional reprisals.

Posing as a black civil rights icon, Obama bailed out the banks – his major campaign sponsors and donors – so generously that not only did they not go under, but they are now gigantic as a result of the bailouts and designation as Too Big to Fail (TBTF) driving out the small smaller banks. Obama didn’t write down the mortgages as he had promised voters. I think he was the worst U.S. president in a century, because the economy stood at what couldhave been a turning point with real hope and change. He’d promised to write down the mortgage debts to the realistic value of the buildings instead of the inflated value that Citibank, Bank of America and Wells Fargo and other crooked banks had put on them. Instead he let them go ahead foreclose on 10 million American homes.

That became a great wealth-producing activity as large Wall Street companies like Blackstone came in and bought up homes that were foreclosed on, for pennies on the dollar, and turned them into rental properties. That raised rents on Americans very rapidly. So the rentiersector got rich by squeezing the working-class, leaving them with little to spend on goods and services without going deeper into debt. So Obama’s policy basically imposed what is now more than a decade of austerity on the economy. 
Since 2008, the GDP per 95 percent of the American population is actually shrunk. All the growth in America’s GDP has occurred only to the wealthiest 5% of the population. That’s Obamanomics,and it’s the Democratic Party policy – which is the main reason why President Trump was elected. He made a left run around Hillary and the Democratic Party. He’s doing it again today. That’s why most people expect that despite Trump’s mishandling of the virus crisis, he will move to the left of Joe Biden or Hillary or whomever the Democrats decide to run against him."
"Only Hard Times Ahead for Saudi Arabia" (Mikhin).  "Impressive Successes Of Houthis In Yemeni War Amid Saudi Oil Gamble" (South Front):
"By March 17, forces of Ansar Allah (the Houthis) have captured most of the province of al-Jawf, including the provincial capital – al-Hazm, from the Saudi-led coalition and its Yemeni proxies. In this battle only, Saudi-led forces lost hundreds pieces of military equipment, including dozens of battle tanks and artillery guns. The Saudi Air Force carried out airstrikes on positions, HQs and weapon depots of its allies. However, the number of abandoned equipment and the speed of fleeing of Saudi-backed troops were so high that 10-20 airstrikes were just not enough to compensate them.
Following the swift advance in al-Jawf, Asnar Allah turned its attention to the neighboring province of Marib. They captured a number of Saudi positions east of Sirwah, including the Kufil military base, a key stronghold of Saudi-backed forces on the route to Marib city. After this, the defense of Saudi proxies started collapsing in the entire eastern part of the province. If the situation develops in the same direction and further, Yemeni forces will likely be able to reach and besiege Marib city in early April and capture it by the middle of the month."
"Coronavirus: What Newsweek Failed to Mention About “Continuity of Government”" (Webb).

"US cuts Afghan aid by $1bn after Pompeo fails to end impasse".  "Afghan endgame enters the home stretch" (Bhadrakumar).

"Punishing America's Enemies" (Giraldi).  "Collective punishment has always been the stated goal of Iran sanctions hawks" (Clifton).  The Fat Fuck, who is not a diplomat in any possible sense of the word, outright admitted it.

"New York: Jew Accurately Accused of Spreading Viruses at Toyota Dealership" and "UK: Jew Plague-Spreaders Demand in Death They Be Allowed to Spread Plague" (Anglin).

A comically weak 'debunking' which, if you read it, is simply the bald assertion that Trump didn't direct work to his son-in-law's brother, something you could only believe if you were extremely retarded:  "“So Oscar Health, the company tapped by Trump to profit from covid tests, is a Kushner company. Imagine that, profits over national safety.”" (McCarthy).

Who could possibly have predicted that Wars For The Jews could possibly be the wrong wars?:  "COVID-19: Prepared for the Wrong War" (Lauria).

Ghomeshi in Canada was acquitted for similar reasons:  "Tomorrow is Another Day" (Murray).

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