F Buckley Lofton responds to Shaemus Cooke (Brilliant!)

F Buckley Lofton June 12  

(International Clearinghouse)

The Rich are part of the Issue. Only marginally, not the only source of the Problem. However, your commentary is critical to our thinking about the Issue. It describes the process, mechanism and aftermath but not the specific. In 1929, the Depression was caused by the so-called “greed of Wall Street.” It hasn’t changed nor is it likely to with current policies and attitudes. Criminality is so widespread as to be beyond belief – and in both Political Parties. It’s greed after all. Whether it’s an “Inside Job” or a “House of Cards” or “The Shock Doctrine,” the outcome is the same: economic devastation for most of us. Evidenced in the “something for nothing” mentality, there are people working hard to do the trades and working hard to rig the system. How is the System rigged? Just ask how much the wholesale Bankers are leveraged and WHO allowed it (WTFAI)? The Government is run by Senators and Congressmen that are largely wealthy, due to the wholesale Bankers, who control the Message. A simple reveal of where these Representative do “their Banking” will tell you. The rest is pasted in as a specific view of the Issue as follows:

The fix is one way to put it. Put another way, Hyman Minsky’s Financial Instability Hypothesis – as Commodities go up (they doubled 2002-2006) the World gets poorer. His analogy stretched back to the 1970-1974 Commodity rise with consequent results. Now, the Goldman Sachs’ and Morgan Stanley’s are raping us again. Predominantly, an SEC Rule change in June 2004, screwed the Economy and the United States blind. This was regarding Net Capital Rules (of Wholesale Banks…aka Banksters) that allowed Securities on the Balance Sheet to be leveraged at an Amount of 40:1 versus Traditional Banks by Statute are held to 10:1. Then, in 2007, another SEC Decision was to eliminate the “uptick rule.” This required every Short Sale to be transacted a Price higher than the Price of the previous trade. Having Banksters in charge of our National Security or Economy is like handing over your daughters to rapists for “safe keeping.” “Just trust us.” 

The Net Effect is a repeat of these conditions presently. A refusal to investigate by Regulatory Bodies, you know that “look forward and not back agenda” by Obama, has left the country vulnerable. The Economy is once again on the ropes…due to the Commodities Exchanges and Oil being juggled into the stratosphere. The fictitious Leverage Ratio is largely unenforceable due to the speed at which holdings are changing. Margin Calls are fundamentally crushing when leveraged at anything over 20:1, let alone the Bear Stearns and Lehman Bro’s at 50:1 or 45:1. 

Minsky’s Hypothesis is actually a restatement of the Heisenberg Uncertainty Principle. You can determine your Position (in the Market) but you can’t state your Velocity (of Trades) with precision or certainty. OR: You can state the Velocity of your Trades, but you are damned if you can show what your position (credit or liquidity) is in the Market. 

The only way for a Quantum State to be Economically feasible is a “snapshot moment” that is a controlled hiatus or period of assessment throughout the Trading Day [every two hours?]. Computers run by Regulators are the only bastion to the Barbarians at the Gates.

Sooo – there are two distinct types of traders. The industrial or commercial sector and the speculative or gambling sector. Goldman Sachs grossly underestimates the fees and profit taking by speculators. They currently control the Media Message and have more money than god to do whatever they damn well please. They have every reason to underestimate because they are largely guilty of market manipulation – a crime. Most Americans (how about 95%?) have no idea that this arena is the cause of the 2007-2008 Collapse (Depression). That was understood clearly by Paulson when he said there was to be NO INVESTIGATIONS for the TARP bailouts. Funny how that is. The number of Congressman (Senate Millionaires/ Billionaires Club and the pipsqueak Representative Millionaire Shills) that have Accounts with Goldman Sachs or Morgan Stanley or…..is fairly complete and ruinously duplicit to our Economy. The Public is largely duped by information and misdirection by the Oil Industry and paid message byte stooges that largely lie about “the Chinese and Indians driving up the Prices.” It is Speculators. (Remember: January 2008, Oil at $150/Bbl. and by May 2008, it’s at $30/Bbl.. Nice.] Period. 

Computer buys and trades are phenomenally fast and cannot be stopped with the current level of inadequate controls. The leveraged positions of these Banksters is WAY over 45:1, still. The suggested controls now present? Not likely to help.

 Removal of the Oil Contracts from speculation is IN THE INTEREST OF NATIONAL SECURITY. And placing National Security in the hands or decisions of Foreign Nationals or the Good Corporate Citizen is like giving your daughters to….that same analogy…..and expecting everything to be okay. Not likely. Or giving this market over to Corporatist Multi-Nationals is trusting their amoral behaviors will be good for the “free market,” which Bernanke has made very clear, doesn’t exist without the Fed’s “help.” (Hence the attack on Grayson by the Billionaires Club.) 

Nationalize the American Oil Industry to get a track on Renewable Energy (because if you take a Survey as to whether the American People believe these Fossil Fuel Schmoos will EVER develop or allow development of RE solutions???? Not likely). 

Reduce Capital Gains taxes to 10% and regulate the Leveraging scrupulously.

Shake the Cookie Jar Loose. All those Patents that have been seized under National Security over the last sixty years that pertain to Energy….(under the Invention Security Act of 1951…No One Know about that? One of the greatest scams perpetrated against the American People by dozens of government agencies and services……hugely fraudulent.) 

But then, who cares? Certainly not the Republican puppets of these more-money-than-God imbeciles that have de-railed virtually every good thing in this country for their gain. And sent tens of millions of Jobs overseas…and created NAFTA…..and changed banks into swindling operations where it is your problem (identity theft, huge maximized overdraft fees, PayDay Loans, hacked computer systems, MERS mortgages, etc.) and no one else is experiencing that problem? So, in that vein, if you get the Plague, get your own cure. My hope is that the Republicans get a Plague of Party defectors, realizing that these are the same idiots that refuse to correct the Economy or investigate the corruption…because they are the corruption.

So, let’s consider a Reform Measure to get things straight – for once. As alluded above, every Quarter Trading Session (1 hour: 45 minutes, or so), every firm that trades on the Commodities Exchanges would be displayed showing their Hedge Ratio (IN BIG RED NUMBERS) and their current Contract/Trade Numbers. Of course other pertinent Computer figures that our “OH SO” diligent Regulators are feign to undertake, would be PROMINENTLY DISPLAYED EVERY TWO HOURS. After all, IT IS ABOUT TRANSPARENCY, RIGHT BERNANKE/GEITHNER, ET.AL.??????? 

And then, the SEC, CFTC or Others can actually step in and halt over leveraged trading. Otherwise, kiss your collective asses goodbye to the Banksters.

Hey EVERYONE KEEP MAKING THOSE MARGIN CALLS!!!!! 

The Rich AND the Government (by not instituting IMMEDIATE CONTROLS) are destroying the Economy.