When people voted for Barack Obama they voted for the character and demeanor that spoke to the American people last night. They voted for the author of “The Audacity of Hope”.

When the other choices are weighed, Barack still comes out on top–he may be the most charasmatic communicator to ever lead a civilization into collapse. He is slowly becoming an unwitting author of “The Eloquence of Failure”.

And it is really just one essential failing that is going to sink his presidency and that is this consensus view of his economic advisors. With statements like “We’re going to do whatever it takes” to get these banks lending, and “the country needs our banks” to provide credit and lending again, calling banks “systemically essential” or “too big to fail”… he has sealed everyone’s doom. The banks don’t even wait 24 hours after a comment like that to show their red asses. Bank of America was just downgraded by Moody’s this afternoon, as they prepare for their next multi-billion dollar handout.
About every few weeks or so, you will continue to see, as predicted, each of the big three US derivatives holders, JP Morgan, Citi and B of A playing “Oliver” (excepting that J.P. Morgan has something more sinister in mind, and I wouldn’t dare to print that here, but you’ll hear about it before the end of Q2).

You see, we have former Wall Street Investment banking CEOs completely infiltrating all sectors of government and quasi-government. The entire Federal Reserve banking system is riddled with ex Wall Street elitists, the Treasury Secretary and Economic Advisors are all former “Financial Markets” CEO’s who have been weened on the concept that creative paper pushing, leveraging, hedging, and betting is the key to prosperity. Not hard work and diligence mind you, but easy money casino style betting. Their heros are not doctors or scientists or mathematicians. Their heros are the financial fraudsters, the professional gamblers who come under the guize of Wall Streets Financial “Wizards”.

Now … banks do not create a physical product for consumption or utility. They do not invent, discover or cure anything–they essentially provide a basic service–to accomodate the flow of goods and services. Or at least they used to (at this point, they have so egregiously served this purpose as to be untenable in their current form).

Primarily what banks have done in the last 30 years is to create “financial products” like derivatives to foster the illusion of easy wealth. And these Economic Royalists on Wall Street and in the City of London and their various foreign embassies of economic disaster around the world are all slaves to this idea of sustaining the entire world’s physical economy by hedging, leveraging, and betting on the fact that we will continue to float this paper fantasy bubble and they will emerge victorious.

And they are. As long as we continue the present course of feeding these corrupt casinos through conduits like AIG (of which the bonus frenzy is merey a contrived diversion) we will continue to feed this bubble of all bubbles, the derivatives bubble, and our President is CLEARLY committed to doing that.

Well … it should be a CONSTITUTIONAL CONFLICT OF INTEREST to have former Wall Street investment bank CEO’s in positions of economic influence in our government. They have poisoned Obama, and will bring down his presidency. The bailing out, or pumping up, of the 1.2 quadrillion dollar global derivatives bubble is the most serious economic disaster in the history of civilization, and if we continue the course laid out by this administration, it will effectively end civilization as we know it.

And all of Obama’s grand ideas of a new and better Society will end with this as well. He should wise up and run as fast as he can from the economic “center” and get on board with the reality of the basic principles of sustaining a physical economy. Now, he IS an advocate of creating jobs and investing in physical output, but that is far less than half the picture. Because the derivatives cancer feeds on this physical output, stripping it, leveraging it and destroying it, until nothing is left but a hugely over-inflated mountain of side bets on which way it will turn, when it will fail, how it will react and when, and these side bets are DERIVED from the empty carcus of the physical economic basis they strip. So until the cancer is removed, the physical economy, no matter how much you attempt to “stimulate” it, remains a dying host.

We simply cannot sustain a derivatives bubble that far exceeds, in notional value, the world’s capacity to produce physical ecomomic output for generations to come – certainly not at the pace it’s contracting. We must either destroy it, or watch it destroy civilization as we know it, and we see no committment from anyone in power to actually do this, because frankly, they cannot get out of their collective “box” to even understand it. All the decision makers are disciples of the illusion. This is like asking the Pope to figure out a way to dismantle Christianity.

So this is the way it is – make every day count, because what it’s costing us daily to “rent the illusion” that this “wealth without basis” economy can be maintained is all being deducted from your future earnings. There’s no telling when the bottom will drop out and the price of maintaining the illusion catalyzes an economic war. But at the price we are paying today…just make every day count.

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