(c) 2008 Greg Kaiser

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Some Brain's History of the Past Week

“Agriculture, mining and manufacturing are the basis of economy and 'civilized' Human culture. There is no market without agriculture, mining and manufacturing. The market is the trailer. Real production and consumption are the tractor.” - source: the obvious

September 30, 2008

Background of Thoughts on 9/25.

Wall St is not the economy. Main St is not the economy. All services, trade, retailers and finance take the things they need and/or desire from the real economy of agriculture, mining, manufacturing and the trade among the producer/consumers who participate in it. If that sentence was too complex for you to remember what “it” is: it is the real economy of agriculture, mining, manufacturing and the trade of real goods.

To get your mind around the artificial complexity of MBS, CDS/CDO and the rest of the derivatives, in fact all of banking and Wall St finance, remember that all investors’ abstract manipulations in the pursuit of profit create no real economic goods. But they consume them. They take profit. They invest it in credit to make more money. That’s all that they produce.


McCain presents a problem that many conservatives and libertarians exhibit. They don’t have enough intelligence to be embarrassed about it.


Usury was forbidden by Moses for a good reason. It was ridiculed by Aristotle and bankers were condemned and run out of the temple by Christ. It was His only overt display of anger. Aristotle put forth the most practical reasons. “Money exists not by nature but by law. The most hated sort (of wealth getting) and with the greatest reason, is usury, which makes a gain out of money itself and not from the natural object of it. For money was intended to be used in exchange but not to increase at interest. . . Wherefore of all modes of getting wealth, this is the most unnatural.. . . the unnatural breeding of money from money”

He didn’t stop with that mild rebuke of banking and finance. "Those who ply sordid trades, pimps and all such people, and those who lend small sums at high rates. For all these take more than they ought, and from the wrong sources. What is common to them is evidently a sordid love of gain"

Usury is not merely the sordid behavior of those with little moral character. In fact, it’s not really a moral issue. It is a parasitic disease of Humanity. The profits of usurers, such as bankers and investors, are dissipative and destructive to the real economy of agriculture, mining, manufacturing and the trade among the producer/consumers who perform these fundamental and highest priority tasks.

As our economy has evolved, the usurers of banking and finance, the rich investors and their top level ministers, have consumed almost everything. The past forty years have seen the greatest dissipation of real economic activity in America in favor of the parasitic abstractions of the community’s wealth by the moneyed class that has ever afflicted the Human Race. The collapse of the latest presentation of their pyramid scam, the so called derivatives that are merely the attempt at perpetual motion of money without real goods to give it value, has reached crisis proportion and their answer is to have the taxpayer borrow money to throw on the fire, instead of confiscating their ill-gotten gains and throwing them in prison as a sane state would do with economic arsonists. If we need such services at all they must be done of, by and for the people on a non profit basis. The profit of investors is the most unnecessary part of the cost of any product.

No one seems to understand just how dysfunctional free market capitalism is. All we have left in America to trade, after outsourcing for increased profit by our brilliant business people, is the money we borrow. If we must forget competition and internalize our economy, commanding the production of the food, raw materials and goods we need to live, that is what we must do. The hoarders of money who’ve created the disaster for profit must be imprisoned for the fraud they’ve perpetrated in the name of free trade. Our community needs the property they’ve stolen, largely through privatization over the past 2000 years. Our survival is more important by far than that of the wealthy class. In fact they are of negative importance. The rich are the burden that denies US life and a shot at happiness.

Blades cut by burning. A fine edge on knife or hacksaw exerts tremendous pressure that heats and burns soft materials or melts metals in a very small area, almost at the atomic level. If we heat a blade, will it be sharper because it’s hotter or duller because the edge has a larger surface area? We don’t know until we perform the experiment.

Today we’re living the experiment of free market capitalism and deregulation. The closer we’ve come to implementing the libertarian/conservative free market theory of Milton Friedman’s Chicago School of economics, the more wealth has been concentrated. The rich have grown richer as the middle class has shrunk and grown poorer and the majority have become more desperate. This is the experiment that proves that free market capitalism, low taxes for the rich, cuts in social spending and all the rest are a failure. If Friedman couldn’t have predicted that administrations starting with Nixon and corporatist leaders would inevitably use theories that encouraged deregulation to grow the government and borrow money to enrich their class further, then his predictions prove even more worthless. A man who doesn’t know Murphy’s law - that everything that can be abused will be abused - ought to have his Nobel Prize revoked posthumously. Libertarians and conservative free market advocates are either so naive that evil is done in their name or so greedy that they are openly evil. It’s evil either way.


Homeowners borrowed the money from banks - not from the investors in MBSs to which the banks sold the mortgages. The brokers and banks who originated the loans made money on fees etc and again when the mortgages were sold. They conned homeowners into adjustable rates and second mortgages to make the derivative sales more appealing and their profits even greater. In the end, after all the money that’s already been extracted by the perpetual motion pyramid scam and these instruments in particular, the investors stuck with the bad paper would foreclose, in order to try to keep their ill gotten gains. To make matters worse they wish to extort an additional $700G from the taxpayers by threatening to freeze credit. They must be arrested for the strong armed fraud that’s tantamount to treason. They may be tried. In the preemptive defense of our livelihoods and lives, their wealth of property and money must be confiscated. If the rich parasites can't be convicted, we must recoup the ill gotten gains with the tax code. The homeowners who were played and who borrowed the sub-prime mortgages or were conned and lied into adjustable rates, should have their debts forgiven and their homes given them. To forgive all debt and imprison all lenders and financial perpe-traitors would really provide US with a fresh start and a much needed dismantling of the pyramid scams of banking, insurance and all of finance.

The “Rescue” bill rejected might have been seen as the preferred answer to the nationalization they know must be coming, as a natural outcome of the deregulation of the greed of their class. The neo cons want to use their last months in power to bilk the American people out of $700G, in addition to the many trillions they’ve already stolen, with one final scam. Ironically it could lead to the fall of the Democrats. In that case they’d have four more years to complete the murder of America for the benefit of the rich. Rep. Gohmert R - TX, someone I have never agreed with before, spoke of the foolishness of buying the toxic paper at the asking price of the frauds, then contracting the management of the government’s portfolio to the same con artists who created the mess. True conservative principle was displayed in that speech on the House floor

The solution to the frozen credit market is not so painful to the taxpayer/consumer as they would make it with their foolish bill. It does not need to hurt. What forces the suffering is the requirement that the financial institution remain, as it always has been, the pyramid scam that concentrates wealth with the rich. But that’s played out. That’s what the crisis is. This “liquidity” they wish to create in the frozen credit market is a means to extend the scam a few months longer. If the Democrats don’t understand that they’re made a party to this fraud, they deserve to lose. [just now listening to Pelosi, after the rest of this had been written, I realized the Democrats and most Republicans don’t realize that banking and finance are intrinsically fraudulent. How can the American people not fall for the lie if our leaders are either conned or players of the evil game?] Then the cons will be able to get the rest of the nation’s wealth in their hoard and we can all starve together. Wake up Democrats. You have the power to save our lives. Confiscate the money and property of the rich and we can start all over building a real economy, in America, of real agriculture, mining and manufacturing, of the things we need to live - of, by and for the people.


WA Journal: Martin Regalia the Vice President for Economic Policy of the U.S. Chamber of Commerce tells US, patronizingly, that we don’t understand the seriousness of the problem. The Savings and Loan “only” cost $150G, when he served at the FDIC. If we don’t do something to stimulate the economy and get things moving again . . . Well, he’s predictable at least. But our greed created this fiasco now give us more or we’ll sit on our hoard and make it worse by not even lending it back to you so we can profit some more when you buy what you need to live” or similar bullshit is about all we can count on. When Representatives Kucinich of Ohio and Gohmert of Texas agree to oppose the bailout, when Ralph Nader and Ron Paul come down on the same side, well all I can say is: the Christians must be right. The end is near.

Of course if we can borrow enough money in the taxpayers’ names - note that China is starting to nut up - we can keep the pyramid scam of finance going a little longer. The top ten percent all ready own most of everything and hold the paper on the rest. What else can they take from the community unless we borrow it for them?

The first shrub facilitated a bailout scam in 1989 that used the savings and loans, which followed the chaos created by Reagan’s deregulation. The elite investors do this Wall St sheep shearing, as in 2001, every time they have a government overly sympathetic to the wealthy class. [that means conservative and usually Republican] When are you morons going to catch on?

The stupidity of Democrats consists of their buy in to the fallacy that free market capitalism can ever be good for America. They won’t see that its never been anything but a pyramid scam that concentrates wealth with rich conservatives. But they let themselves be conned, over and over again, to believe that it’s the only way and it must be preserved or everyone will suffer.

The Republicans on the other hand are absolute morons. Even the investors and their minions of the top ten percent who actually benefit, will not see that their greed must lead to collapse. It’s simple really. When all has been taken from the community that there is to take, the system [the pyramid scam] must collapse. Look around. It’s always been obvious. You just don’t want to see the truth.

“The People, United, Will Never Be Defeated!”

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