Because of the unconstitutional seventeenth amendment the Senate has been illegal since Theodore Roosevelt let’s eliminate the Senate all together. Since then it has become a House of Lords.

Actually the several states 14 plus I believe so far have passed resolutions to eliminate the federal government and recreate a Constitutional one. I agree, it’s way past time for that and since the states created the federal government the creation shall not be greater than the creator.

When the government no longer represents the people and only in our case represents foreign bankers it is time to abolish that government and create another and that’s the Constitution.

This is why the ‘elite’ is so afraid of the states and would use our troops or foreign armies to crush the states and that’s why freedom is such a rare thing.

Let the last 30 years be testimony of how rich criminals became dynasties with welfare for the rich policy of “Bleed the middle class dry government programs”. By the religion of give all you have to the filthy rich we are now in a depression that will not stop. As always when the rich and powerful attack the village the nation is the poorer for it.

Deregulation means I’m rich and I’m taking mine and I’m taking yours too. They are smart I’ll give them that. If I want to rob you of every thing you have what’s the best way to do it? Make it legal of course through deregulation.

Remember that great and I mean great Republican Eisenhower taxed the rich at 92% and the middle class bloomed like a garden in springtime. Freedom, safety and civility grew to the point you could leave the keys in the car without it being stolen. The rich could travel without fear, etc. etc. etc.

I’ve never seen such bleating, crying and outright threats as when the rich say I won’t pay you another 5 or 6 dollars an hour but I will and did give myself and 7 thousand of my pals 1 to 2 million dollars in bonuses. I the rich are liars when I complain about paying 140 dollars for a barrel of oil when in reality we are paying 44 dollars per barrel as did the airlines. Just another immoral attack against good Christians by non Christian rich. But money makes any abomination ok.

Yes the working poor should stop beating up the powerless rich. And how dare the average working man complain about the government not obeying the Constitution as it pertains to the rich.

When layoffs are announced Wall St. makes money because the company in question is forecast to spend less money on wages and therefore make more in profit. The Germans have saying for this, “to be happy by the misery of others.” Making money on Wall St. by the misery of others is sick and is contrary to the original mission of buying stocks. That’s demented defined. This another reason why we need to take the economy from Wall St., the banks and the Federal Reserve Board.

Thanks to Thom Hartmann for information in this article

The economy is loosing 450 billion dollars every year in the equity in housing.
650 billion in consumer spending
150 billion in commercial real estate
About 1 and ½ trillion dollars has been taken from the middle class.

According to Paul Krugman of the New York Times 2-9-09 in his OP-Ed article titled The Destructive Center “What do you call someone who eliminates hundreds of thousands of American jobs, deprives millions of adequate health care and nutrition, undermines schools, but offers a $15,000 bonus to affluent people who flip their houses? A proud centrist.”

Headline from the Financial Times 2-9-09 Companies’ capital spending ‘to fall by a third’. That is the infrastructure of business in Europe, plants, machines, tools, etc. The industry of the Europe is eliminating 1/3 of its capacity because they have fired their customers. As the old adage says, ‘you can’t sell something to somebody with no money.’

What we’re seeing is the result of policies of Milton Friedman, the Austrian School, Von Hayek, the Shock Doctrine, Globalism and Reganomics all implemented by centrists sucking up to conservatives all who should be executed for treason. At least 600,000 jobs gone just by Jan. 9, 09. People like Olympia Snow, Susan Collins, Arlen (magic bullet) Specter, etc are responsible for this plague.

These centrists work with Republicans to cut 50 million to quality teacher partnership grants, 5 billion cut for prevention and wellness including diabetes and aids testing, 13 billion cut in Pell grants. But who needs education through Pell grants anyway?

Your congress will just bring more H1B’s to take an American’s job all the while cutting programs the middle class needs with the help of centrists. As Thom Hartmann says so well, “These are not centrists. These are children with hammers running around hitting things not knowing what it is their hitting.

Ben Bernanke said the U.S. economy runs on credit and that’s why he needs money to bail out the banks. Well that’s the problem. When I was young I was taught sound money practices. Those practices taught that you shouldn’t run your life on credit. Only if it is absolutely necessary as for business expansion, etc.

When it was time for me to buy a fancy stereo I saved and paid cash for it. In 1978 I bought a new Ford Zephyr automobile for $5,000 cash. They had more expensive cars but 5 grand was what I could afford so that was it.

In 1990 I was reading about the troubles on Wall St. and I knew there was a simple solution, let the market correct itself, but that didn’t happen. The poorly managed companies with government help came up with schemes to prop up the stock. It works for a while but at some point years later the problems come back and now worse more intensified. It’s no different than having an infected wound and not cutting the dead skin to clean or irrigate it out because that will hurt for a short time. Let that wound fester and we know what the future holds.

It’s the same with the economy the government will not let these banks and companies fail and in some instances prosecute bad management. Corporations and government who like to defend capitalism will not let it work by purging waste from the system. It’s no wonder why there is so much toxic waste that it now threatens to kill the financial system. This is a road that only leads to depression.

No one has ever accused the Federal Reserve Board of sound money practices, that’s not the business they’re in. From their inception the Federal Reserve Board has never dealt with or created sound money. Their business from the first day was and is debt! Putting the people, the nation and the world into perpetual debt servitude to the bank, that’s how they plan to own the world, everything in the world and everyone in it, and we did it to ourselves rather than stand for sound money we went to them for a loan.
We are in a time of non-accountability. The mantra of the day is I don’t deserve to go under. The problems we face today are a direct result of paying those at the top too much while not paying working people a secure wage to live for.

There is simply is not enough cash in the pockets of the people.

Andy Gauss said, “The Federal Reserve allowed the Wall St. banks led by Goldman Saks to create some 45 trillion of obligations due and payable from bonds, auto loans, home mortgages to commercial and most importantly loans to hedge funds and other gambling entities.”

This is an outgrowth of fractional reserve banking. Not is only the FRB allowed to do it but it has now spread to banks that create 3 or 4 dollars to every dollar in existence. There is an old story that says someone asked JP Morgan, what caused the panic of 1907? He answered someone asked for a dollar.

The U.S. economic system has been allowed to use what they conveniently call leverage. Leverage is stretching the truth or lying. Money should be backed by some kind of collateral but leveraging allows more dollars to be created than the collateral behind it can support.

If leveraging goes unchecked as it has more and more financial instruments are created to express the leverage process. Things like derivatives take leveraging to the extreme. As more dollars are created their value erodes inflation is created.

A form of insanity begins where everyone starts to make money the center of their life. As this goes on more dollars are printed merely on the “full faith and credit of the people.” However as production lowers the dollar will continue to loose value. For example; the Bank of International Settlements (BIS) has reported derivatives due to be paid are virtually 50 times the money in existence.

As the Fed started to contract credit in an attempt to slow the coming inflation at the same time raising interest rates that in turn has caused someone to ask how much is the value of these dollars? That in turn has caused fear and runs on the banks.

Thanks a lot Bill Clinton for eliminating the Glass/Steagall Act.

August of 2007 to August 2008 is called a financial crisis.
September 2008 to present is a FULL BLOWN PANIC!

No one trusts banks or rating institutions. The banks don’t trust each other. Part of the problem is the average American was spending $1.25 for every dollar, that’s way too much. The norm is about 80 cents that is down now to about 50 cents. At this level a deflationary depression is being created.

Another problem is leverage. Normally banks leverage at 9 to 1 for every one real dollar they create 9 mystical or invisible dollars. Without going into how wrong that is; because the regulators were not doing their job banks turned criminal.

For example Bear Stearns was leveraged at 34 to 1, Morgan Stanly at 32 to 1 with most other investment banks close behind. Add to that Fannie May and Freddie Mac leveraged at 74 to 1!

This was allowed by the regulators from ‘bubbles’ Greenspan on down through the rating agencies, SEC, etc. Now they are deleveraging at a very high rate of speed cutting interest rates, taking huge bailouts, buying not so secure securities and this is just to keep us from a total collapse.

Thanks to David Smick for his information and numbers in this article.

The markets have realized that this is not just a sub prime bubble but is really about 9 bubbles with the bailout bubble the newest. The sub prime bubble is actually the smallest. Only 1.5 trillion can be attributed to sub prime.

Some of the bubbles are the emerging market debt bubble at 5 trillion, the outstanding credit card debt bubble at 2.5 trillion, commercial real estate debt at 25 trillion, foreign exchange derivatives at 56 trillion, the credit default swaps, you remember those they were the fancy insurance paper that was to cover all this is at 58 trillion. This all adds up to about 200 trillion dollars of at worst owed from non existent resources.

What does this mean to the middle class? Can we take another bubble? I don’t think so for instance a 10% default would be 20 trillion dollars. Global GDP is 50 trillion. Years ago if someone said the Fed will drop interest rates to 0% the market would go sky high, car sales would be through the roof.

The reality however is the opposite because all the money for those things are in these bubbles, thus marking the failure of the government and rating agencies to stop this perfect storm from developing.

If these bubbles all burst or default together or even just a few burst because their so big it can cause hyper inflation or complete loses in the market. We may have hyper inflation anyway. One can see why everyone is very afraid to let what money they do have go into investments. My parents and grand parents put their money under the mattress today’s generation puts it in short term government debt.

Add to this world political instability. As wars and political instability continues more and more money is sidelined. It’s so bad now that some people can’t put their money into Treasury funds because their full up. Treasury funds are considered safe.

People are finally saying with their money I don’t feel safe in an economy based on 70% consumer spending.

The Employee Free Choice Act will help counter managements lopsided Taft-Hartley Act. When unions were allowed to be formed the over paid executives got the Taft-Hartley act passed which resulted in the so called “right to work states” mainly in the south which made it practically impossible to organize a union, this is why the grown ups need the protection of The Employee Free Choice Act it will at least allow working people to exercise their first amendment rights.

The nation also need publicly funded elections to level the field and stifle the rich, to equalize the money spent on all candidates. We must eliminate corporate personhood as well.

If you steal a piece of pizza you go to jail. The criminal banksters on Wall St. commit crimes against our people based on dishonesty, greed and immoral if not illegal behavior and they get away with the greatest theft in American history. Remember the crimes committed today are first made legal because of deregulation. This was first started with airline deregulation as a tool to strip the money and benefits from employees.

As far as the cuts go in terms of millionaires and billionaires the Bush/Regan tax cuts must be repealed. The tax rate needs to be 90-92% on only the rich. The U.S. has the greatest uneven distribution of wealth and income of every major country and or economy on earth. One tenth of one percent of people made more income than the bottom fifty percent and it’s getting worse every day. One way to deal with that is the tax system.

Before the U.S. gave away its manufacturing capability millions of blue collar union and white collar earned good wages and benefits (never as good as Europe but they were working on that) for producing good products. But over the years since the 70’s those who worship money have prosecuted a plan of economic warfare against the middle class resulting in the rapid decline of living standards as jobs and income moved offshore and the growth of Wall St. began. Wall St. which speculates in everything and produces nothing. Well over 1/3 of the profits now go to Wall St. and not to the homes of middle class Americans or the manufacturing sector. Thus a very small number of people are making vast fortunes while jobs are being lost by the millions.

We saw the double standard as the banksters and Wall St. can embezzle the TARP money, give themselves huge bonuses, and do whatever they like while the auto industry is put on the torture rack because those companies have unions.

These greedy rich under deregulation can do anything they want such as creating deals without any transparency. This is a major reason for the current financial collapse of the United States and the Western World.

The entire propaganda theme of this depression is that the bankers didn’t do it. It was done as a conspiracy of poor people. This is absolutely unbelievable to anyone with somewhat of a fluoride free brain.

It is estimated that 97% of the derivatives are in the five largest banks, but we really don’t know how many these unreportable derivatives exist in their banks. When one realizes that JP Morgan has 100 trillion of derivatives BNA and Citi have 40 trillion in derivatives then each of you know that bailouts are impossible.

As more money is injected into the money supply but only to the banks the result is we are getting a contraction in production, jobs and product output. So as more money goes into these bottomless pits called banks the result is what we called in the 70’s deflation meaning everyone is dragged down. Prices inflate jobs and productions deflate.

The solution is wipe out derivatives which have no value. Seize the banks such as JP Morgan Chase, BNY, Citi, Wachovia, Goldman Sachs and Morgan Stanley put them in chapter 11. According to William Seedman (Former Chairman, FDIC) if a bank has 10-12% non performing assets it is bankrupt. The judges must also be instructed through legislation to wipe out all derivatives that appear before them. The insanity is that what we’re seeing is just the opposite.

There idiots are propping up toxic derivatives. Seize the Federal Reserve Board and force it to issue money to civilization. Let it issue money to all but the gambling (investment) banks and financial services, which include CEOs bonuses plus any and all extra consideration.

We need a new Brentton Woods conference and bring to an end the floating rate currency system which allows irresponsible gambling and holds down the wages of working people, airline workers for example.