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Thursday, April 9, 2009

Does Goldman Sachs Run the World?

NOTE: I received the post below via email:

Does Goldman Sachs Run the World?

Not completely, but it doesn't mean they aren't trying. It seems that, literally, only flesh eating bacteria can stop these guys.

The Canadian dollar breaks above parity and, lo and behold, last Thursday, a Goldman managing director, Mark Carney is named governor of the Bank of Canada.

Mario Draghi, governor of the Bank of Italy, is also a former Goldman managing director.

Then, of course, there is U.S. Treasury Secretary, Hank Paulson, who was Chairman and Chief Executive Officer of Goldman.

Goldman did have a man at the Bank of England, but their presence there has gone astray for the time being. Goldman man David Walton was on the Bank of England's Monetary Policy Committee from July 2005 until June 2006 when he died at the age of 43 from necrotizing fasciitis, i.e., flesh eating bacteria.

Unimpeded here by flesh eating bacteria, Goldman's presence in United States government financial power circles remains very strong. Prior to Paulson, during Bill Clinton's second administration, Robert Rubin served as Treasury Secretary. Rubin was Vice Chairman and Co-Chief Operating Officer at Goldman from 1987 to 1990. From the end of 1990 to 1992, Rubin served as Co-Chairman and Co-Senior Partner at Goldman. And, Robert Zoellick, new head of the World Bank after Paul Wolfowitz was booted, was a managing director and chairman of the Goldman's International Advisors department.

How do they use these positions? Who knows all the details? But, at a regularly scheduled Fed monetary policy meeting on August 7, the Fed failed to cut interest rates. Records, obtained through a Freedom of Information Act request by Kenneth H. Thomas, a lecturer at the University of Pennsylvania's Wharton School, show that the next day Rubin called Fed chairman Bernanke. Bernanke cut the discount rate 10 days later. Rubin says he called Bernanke to tell him he was doing a good job.

With the sub-prime crisis making markets extremely volatile, it was a difficult period for most investment banking firms, but not for Goldman.

On September 20, Goldman reported much better than expected 3rd quarter results. Analyst Glenn Schorr at UBS AG writes the earnings demonstrate Goldman's "ability to not only navigate choppy waters, but make a ton of money doing so." Better at navigating choppy waters? Do you think your local investment club would show a better performance if your club members managed to get positions running the U.S.Treasury, the central bank of Canada, the central bank of Italy and the World Bank? And if this isn't enough, wouldn't it be great to get Ben Bernanke to take your call in the middle of the sub-prime crisis?

So what are the Goldman boys up to now? Columnist and political insider, Robert Novak is reporting that the Goldman boys are getting ready for Hillary to move into the White House. Despite Treasury Secretary Paulson working for a Republican Administration, Novak reports:

Eyebrows at the Treasury were raised last Tuesday when Secretary Henry M. Paulson Jr. named a major Democratic fundraiser to an important advisory role. The next day, eyebrows were still elevated when Undersecretary Robert K. Steel participated in an event spearheaded by Bill Clinton's two Treasury secretaries.

Oh yeah, Steel also happens to be a retired Goldman Sachs vice chairman who worked at the firm with Rubin and Paulson.

Here's more from Novak, obviously scratching his head at Paulson's moves:

A longtime Republican officeholder now in the Bush administration noted these developments and e-mailed a fellow Republican outside the government: "This leads some to wonder whether this Treasury has become the pre-placed Hillary Clinton team." ...the former Goldman Sachs chief executive does not act or sound much like a conservative Republican to the GOP remnant at the Treasury. "It's not in Hank Paulson's DNA," one official told me. Is he loyal to Bush? "Hank is for Hank," the official replied.


Anonymous said...

About time someone shined the spotlight on this nefarious organization. They are truely truely evil. Good luck with your suit.

Anonymous said...

I was just wondering about your reaction to this counterpoint?:

Anonymous said...

Can you site sources for each of the appointments you mention? It would be very useful to show the history of the appointments one after another in a presentation I'm putting together

High Society said...

Good luck with your view on Goldman Sachs.

I think it's great that you are standing up for what you feel is right, and not what is easy and that you encourage facts only comments.

Let them try to shut you down, that means you are probably most likely doing something right. (And the publicity couldn't hurt either.)

Keep up the good fight.

K.Hawley said...

Has the U.S.Public been subliminally "Brainwashed" by the Media into Submission and Acquiesence?

I think the main and most important point made in this blog is that the American public is now,for all intents and purposes "Braindead"!

AIG,Goldman Scahs,Bush & Cheney's Iraq Oil War etc,none of these criminal endeaveours could have happened or escalated if the American public really gave a damn.Also its not a case where the American public is woefully uninformed about current events so where does the problem lie? Then theres the question of just what course of action(s) the public can take to stop this swindel by AIG,Goldman Sachs and their associated criminal,corporate facilitators who run the US Govt.?
The U.S.public found out that their massive marches and protests against Bush's Iraq war didn't have any effect at all in Washington in stopping Bush.In fact both the Republicians and Democrats aided & abetted the Bush Oil War at every turn.So what exactly does the American public do now to fight the theft of $Trillions of their tax_dollars in these bank bailouts "Scams",seeing that a majority of all the politicians in Washington are completely deaf,dumb and blind to their pleas and protests? If the politicians who run the US Govt will do nothing what decisive actions can the public take?

Anonymous said...

K.Hawley said... If the politicians who run the US Govt will do nothing what decisive actions can the public take?

There is one thing one one thing only that the public can do...stop paying their taxes. Sooner rather than later. It's the only power we have. And it's easy if you are jobless.

Bill Mitchell said...

Of course I cannot reveal my sources, but a certain cabal of investment bankers had JFK killed.

Follow the money trail that began with some Eurobond money in the early 1960's.

Bill Mitchell said...

...and how do I know? Roy Smith -ex of Goldman provided the clues in his book!

terrorpatriot said...

To fully comprehend the global nature of the elitist control we are witnessing here you must dig deeper. Goldman Sachs and our Central Government are only pawns and overseers of this American Plantation.And it's economic slaves are called Democrats and Republicans.We need a house cleaning revolution not a bunch of silly tea parties.TP.

Anonymous said...

New York Fed President is also a Goldman Alumni

Anonymous said...

deepfreezevideo said...

Let's see.
Goldman appropriates taxpayer money, then hires a law firm to censor information and attack the blogger. Hiring a law firm with taxpayer money to attack an American citizen amounts to an Act of War and economic terrorism.
Ergo Goldman is functioning in the same manner as the pirates of Somalia, ergo they are terrorists.

Anonymous said...

@Bill Mitchell:

Which one of Roy Smith's books are you referring to? Don't intend to buy 'em all... ;)

Anonymous said...

Subject: Here is how the Big bankers like JPmorgan and Citi , Goldman Sachs , etc are working the system right now ..................

When will inflation rear its head, how long does the USD have left?

By Chris Laird
Apr 16 2009 4:27PM

In the last year and a half since Oct 07, the US Fed, ECB, BOE, BOJ, and others have either bailed out or done guarantees for over $20 trillion worth of toxic assets from paralyzed lenders worldwide. One might ask where is the inflation from that? Why isn’t gold yet at $2000???

Well, it would be one thing if that $20 trillion were fed directly into the economy. That would have enabled big debt relief, and then world consumers would rebound almost immediately. The US mortgage market is about $9 trillion, and the US Fed alone has now committed over $13 trillion. They could have just paid off all mortgages no?

Pushing on a string

So where did all that money go? Well, it basically went to fill holes in financial institutions’ balance sheets, while most of it never gets past there and into new loans to the economy. It’s called pushing on a string. The Central banks can give money to financial institutions, but they can’t force them to lend it back out. Besides the economy is in a shambles, and who wants to lend money out now? As long as this money sink is in place, the new money going out cannot fuel the economy or inflation. This is called a liquidity trap – ie the money the central banks lend out never gets past the insolvent lenders and lent out. And, as long as the losses keep growing, this will continue.

Black holes all over the world

These institutions have so many losses that each new bailout just goes into a black hole, and never meets the economy. IE money that was already lost is being replaced by the central banks, but just sits there till the balance sheet holes are filled. And there are a lot of awful big holes. So far, $20 plus trillion has yet to lead either to inflation, to new lending, or recovery in the economies. That money got sunk into a liquidity trap – stuck in zombie financial institutions – only it’s worldwide. Since the new money never makes it to the economy, inflation does not appear yet. So, when will inflation appear? We think we have an answer to that.

Where the $20 trillion of bailouts went

Here is a diagram explaining how the $trillion of toxic assets/losses are basically being bailed out by world tax payers – and to little effect on the economies because the money never makes it to the actual economy. It just sits there in institutions to keep them from insolvency, and little else. And these losses keep increasing too, with little signs of abating. Wells Fargo may need tens of billions now, is the latest, and possibly needs over $100 billion by some estimates if things don’t improve drastically. AIG is something like $150 billion of aid and counting. Next month, probably another $20 billion knowing what’s been happening with AIG.

Comments: Toxic assets go from banks to taxpayers/central banks, who then sell new bonds to the bond market. The bailout money never makes it to the economy. 1. Central banks bailout banks, etc. 2. Banks send toxic assets/losses to central bank in return. Taxpayers have effectively become the holders of all the mammoth losses. 3. The bailout money never makes it from bailed out banks to the economy because they have such huge and growing holes in their balance sheets, so they sit on the bailout money. 4. The dashed line means the bond markets which, by buying sovereign treasury bonds from central banks/treasuries, are assuming the liability of the bailouts. The Chinese have already repeatedly stated they are tiring of this cycle.

Before all this, the bond markets would buy sovereign bonds to finance normal annual deficits, but now that market is asked to take everything. As central banks recycle new bond issues to bailouts, the bond markets are in effect being asked to be lender of last resort for the entire world economy.

The bond market will flag in this. It already shows signs of flagging. The US will need $3 trillion of new treasury issuance this year, to cover ongoing budget issues as well as the huge bailouts. I suspect there is not enough money in the bond markets to do this for long. If that is true, the US is running out of money.

When inflation will show up

So, to determine when inflation returns, we need to find out when this cycle in the above chart stops functioning. Basically, all the huge bailout efforts are doing is recapitalizing banks with growing holes in their balance sheets, which grow bigger, and central banks are not getting ahead of this.

Then the money sits there going nowhere. But the taxpayers are then saddled with all the losses. The sovereign bond markets will decide that all they are doing is enabling this process, (IE central banks are merely taking the losses and then selling new sovereign bonds) and transferring the new risk to the sovereign bond markets. The sovereign bond markets will not put up with this for long.

Already, many central banks are effectively monetizing their losses by buying equities directly, or buying their own treasury bonds – the BOE, Fed, BOJ, Bank Rossi (Russia). This type of action is verboten in the bond markets.

We view this new state of affairs- where the US is now running multi $trillion yearly deficits, as a new stage in the USD evolution, and a bad one. Before inflation rears its head, the Sovereign bond markets have to rebel on buying/underwriting all the central bank’s bailouts.

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