We're saved! We're saved! Wall Street's great lovers of Main Street have written the President and members of Congress, issuing "A Call to Reason - And Action" (which is code for "reach for the barf bag in the seat pouch in front of you and prepare for a rough ride")...
An Open Letter to America's Elected Leaders
Dear Mr. President and Members of Congress,
We work on behalf of millions of Americans from all walks of life who are "invested in America." They are leaders of businesses large and small that want to grow and help America grow; police officers, firefighters, teachers and nurses who save for their retirement through pension funds; and investors and entrepreneurs who have placed their faith in America and its leaders.
I warned you about needing a barf bag! What the authors did not specify is whether those for whom they are "working" include Americans formerly employed in the indicated professions whose livelihoods no longer can be sustained because capital formerly affording their services is now needed to fill the bottomless pit dug by the zero due diligence machine whose name in these parts goes by Adam Smith's Leveraged Ponzi Scheme. No mention, either, of those citizens who "have placed their faith in America and its leaders" swindled beyond imagination, while the perpetrators remain at large.
The people we serve are the nation's savers, its innovators and job creators. They want a strong future for America. But today our nation's economic future is in doubt, and so is America's financial leadership in the world. Our country faces threats to its economic well-being that will inflict pain and hardship on all our citizens for many years to come if we fail to act - and act now.
Well, this at least appears honest enough. Of course the greater preponderance of "savers, ... innovators and job creators" (up until the Ponzi scheme's collapse anyway) were the very firms whose heads authored this letter. So, what credit should be given for admitting "serving" themselves I'll leave you to decide.
As for "pain and hardship" awaiting failure to act, the time for idle threats has passed. Any required action "now" simply begs Glass-Steagall and nothing less, and this whether Team Fraud is ready for the fallout portending its own bankruptcy.
As a debtor nation, America must show the world that the nation's word is its bond. Raising the debt ceiling is vitally important, but that alone is not enough. The huge budget deficit, both current and long-range, must be dealt with urgently as well.
Per Glass-Steagall's utter necessity, "[showing] the world that the nation's word is its bond" is what it's all about! So, we're on the same page here.
As for our "huge budget deficit," once the toxic crap these firms manufactured (and Treasury currently backs to the tune of tens of trillions of dollars) is returned to its rightful owners, the budget deficit will have entered rehab with genuine prospect of never again falling off the wagon.
Addressing the current federal debt ceiling crisis, by itself, will not fix the entire problem. We would be deluding ourselves as a nation. If we want strong economic growth and job creation we must fix the deficit for real, for good, for the future of all Americans.
These folks go to the same schools as do our elected representatives. All are masters in sophistry.
As custodians of Americans' savings, we urge Congress and the Administration to reduce the deficit substantially. Without a credible action plan to reduce the budget deficit, the U.S. debt will likely be downgraded by one or more rating agencies.
And so we discover just who "owns" Standard & Poor's.
The idea of America losing its AAA rating was once unthinkable, but now highly likely if our leaders fail to act. If that were to happen, six countries, including France and Germany, will have credit ratings above that of the United States, signaling America's diminished ability to pay its debt. And, make no mistake about it: the consequences of such a downgrade are very real and very serious.
Please. Rating agencies criminally incompetent could not possibly bring the United States to its knees. "Consequences" called "very real and very serious" apply only to a bunch of swindling cowards who, alone, have a vested interest in giving deference to rating agency thieves. Among this crowd includes many members of Congress, as well as the President of the United States.
Interest rates today are low. But a rating downgrade inevitably means higher interest rates - not necessarily immediately but over the course of years to come. As a nation, we are highly dependent on foreign purchases of our debt. With a weakening US outlook, global lenders will demand a higher return for assuming the increased risk - and many investors may simply give up on America and be more likely to seek other places to put their money.
You already know the truth about interest rates. If Congress buckles to such insane demands as originate in the London school of economics — these prescribe that, governments contract both demand and supply throughout the physical economy — will interest rates rise to and through the stratosphere, as the mountain of debt amassed during the build-out of Adam Smith's Leveraged Ponzi Scheme meets an economy whose wealth-generating capacity has been purposely sent spiraling into the abyss. Those liquid markets where debt securities might fetch a reasonable price, then, will find sellers aplenty and buyers few, thus sending interest rates to the moon.
As for investors "[giving] up on America," in times like these we should agree that, money fleeing the world's greatest nuclear power rightly should be classified "dumb money."
In addition, the US inflation rate has been much lower than that of other countries because we are a reserve currency for investors worldwide. If we are no longer among the highest rated government borrowers, investors will increasingly seek other currencies to store their wealth. The decline in the value of the dollar will intensify inflation risk in the future, which will further erode our standard of living.
Sorry to repeat myself, but in times like these, money fleeing the world's greatest nuclear power rightly is classified "dumb money." Truly, too, the most profound risk of inflation — the likes of which finds compelling precedent in 1923 Weimar Germany — awaits but adoption of the very policy prescription these usurpers of sound banking practice advocate.
This fallout will be felt all across America. It will mean fewer and more expensive loans for homes, cars and college expenses as rates rise and credit becomes even harder to secure than it is now. The decline in the value of the dollar will eat into retirement savings. Businesses will find it more expensive to create jobs. Ultimately and most painfully, economic growth for our nation will slow for years to come and diminish the quality of living across America.
Hurl.... Hurl... Hurl... Good thing I warned you about that barf bag! How full of themselves are these "captains" of finance! How ever did the United States become an economic powerhouse prior to being lured into a debt trap the likes of which these folks set and now demand the nation's self immolation that appearances of its viability be sustained?
Such a devastating outcome is by no means inevitable. We urge you to act with unity of purpose and spirit of commitment - and to act now.
Indeed! Glass-Steagall NOW.
Never before have insiders given clearer indication that, the banking system is hopelessly insolvent. These men have done a fine service here letting the average investor in on a dirty little secret before circumstance forces the plug to be pulled. I mean this most genuinely.
Likewise, if there is any hope for this country, then response given here will meet the eyes of our elected representatives with frequency several orders of magnitude greater than the original. With opposition to TARP having registered at 100-1, there's hope for the United States, but only if swindlers who have brought the nation to the edge of its destruction are taken on courageously and in truth.
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