THE US AND EU DEBT CRISIS

The U.S. and European Union (EU) debt crisis are essentially the same event. Banks leveraged toxic assets (mortgages) 40 to1, which made banks insolvent as house prices declined.  This Forbes article refutes the notion that government forced lenders to give loans to unqualified borrowers.  In the following excerpt, Forbes cites excessive leverage as one cause of the crisis.

“The SEC loosened capital requirements: In 2004, the Securities and Exchange Commission changed the leverage rules for just five Wall Street banks. This exemption replaced the 1977 net capitalization rule’s 12-to-1 leverage limit.

This allowed unlimited leverage for Goldman Sachs [GS], Morgan Stanley, Merrill Lynch (now part of Bank of America [BAC]), Lehman Brothers (now defunct) and Bear Stearns (now part of JPMorganChase–[JPM]). These banks ramped leverage to 20-, 30-, even 40-to-1. Extreme leverage left little room for error.  By 2008, only two of the five banks had survived, and those two did so with the help of the bailout.”

Most of the NINJA loans (no income, no job and assets) were made voluntarily, and Wall Street banks were buying worthless loans on the secondary market, not lending to homeowners.  No one forced Wall Street banks to buy worthless loans, leverage them 40 to 1, label them as triple A investments, and sell them around the world.

William Black was Deputy Director of the Savings and Loan Insurance Corporation during the 1980’s financial crisis.  He helped obtain a 1000 criminal convictions of “elite” bankers.  Mr. Black says public losses from the 2008 financial crisis are “70 times greater” than the Savings and Loan meltdown, but despite compelling evidence demonstrating Wall Street fraud, there have been few criminal prosecutions.

During this radio interview, Black said in 2004, the FBI testified before Congress about an epidemic of mortgage fraud and predicted it would cause a financial crisis.  In 2006, all major lenders were warned that “liars loans” had a 90% incidence of fraud.  But the mortgage industry increased subprime lending to the point that 1 in 3 loans were liars loans when the bubble burst in 2008.  Mr. Black said this constitutes one million cases of fraud per year by the industry.

Kyle Bass, portfolio manager for Hayman Capital Management was on CNBC’s Strategy Session.  He was asked if European banks have enough capital.  He said the EU “doesn’t have the money to recapitalize their banks because they don’t have a mechanism to print money like we do.”

Kyle was referring to the Fed buying nearly 2 Trillion of toxic assets from banks and injecting 16 Trillion of near 0% loans into the global banking system.  The EU is a political union, but it lacked a fiscal union that would allow the European Central Bank (ECB) to print money for a bank bailout.  

Bob Pisani is a market analyst on CNBC.  August 11, 2011, Bob commented on the financial crisis in Europe.  He said the funding costs for EU banks had risen and banks were “having issues”.  Bob said “we have no idea what these banks have” and cited a bank analyst saying about French bank Societe Generale, “SocGen doesn’t even know exactly what they’ve got”.

Mr. Pisani continued: “This crisis is going to, number one, accelerate a fiscal union in Europe.  Politicians need some kind of crisis to put to their electorate so they can make the changes needed to move toward that accelerated fiscal union.  That’s the good news that’s going to come out of all this”.

Later that day on CNBC’s Power Lunch, Mr. Pisani said “they [EU banks] need a crisis over there to get these deals through the Parliaments, and they’re certainly getting the crisis they wanted.”  So EU banks and their politicians wanted a crisis that would effectively coerce EU citizens to give bailout authority to the ECB.

Huge debts owed by big banks are used to create a crisis that forces legislation like the TARP bailout and Dodd-Frank on taxpayers.  Obama’s finance reform, Dodd-Frank, gives the executive branch permanent bailout authority, and future bailouts will not require a Congressional vote.  This legislation epitomizes taxation without representation. 

Politicians, investors and media blame European “PIIGS” (Portugal, Ireland, Italy, Greece, Spain) for the EU debt crisis, but this is propaganda.  Like U.S. taxpayers, EU taxpayers have been misled by an insider cabal of politicians and bankers who’ve run up huge debts without informing citizens of the risk.

Simon Johnson, former IMF chief economist, said CEO’s of the six biggest US banks drew 2.6 BILLION in cash out of their banks “before” the 2008 financial collapse.  Hmmm?  Mr. Johnson was clearly suggesting foreknowledge of the crisis.

Bond vigilantes helped bring the EU crisis to a head by making a speculative attack on Italy’s sovereign debt.  This caused the interest on Italy’s debt to go up 200 basis points (2%) overnight, and a government default would have pushed EU banks to the brink of insolvency.

Mark Grant from Southwest Securities was on Squawk Box saying EU banks “can sink the sovereigns” and it will take “10 to 12 Trillion dollars to recapitalize the banks.”  EU banks are putting pressure on German taxpayers to fund most of the bailout with an EU TARP.

Sept. 22, 2011 on Squawk Box, Steven Roach, Chairman of Morgan Stanley Asia said German Chancellor Angela Merkel “is concerned about sovereign independence” if the EU TARP goes forward, and Greece is also concerned about “giving up sovereignty.”  Roach said the strategy is not sustainable and “banks have mismanaged risk”.  Bank debt is being shifted to taxpayers.

The deals sought by EU banks equate to monetization of their debt by the ECB, i.e., printing money and loaning it to banks for free, which is a taxpayer bailout similar to TARP.  With a little help from their friends the bond vigilantes, big banks were able to extort the concessions they wanted from sovereign nations.

During a House debate over the $700 billion bank bailout (TARP), Republican Jeb Hensarling said the budget deficit rose 800% to 1.2 Trillion, and taxpayers are on the hook for 8 Trillion due to the financial crisis.  Organized crime is large and in charge.

Wall Street’s method for extorting Trillions from U.S. taxpayers is being used on EU taxpayers, i.e., give us unlimited access to your Treasury or we’ll collapse your economy.  Brad Sherman said members of Congress were threatened with “martial law” if they didn’t pass the $700 billion dollar TARP bailout.

The EU bailout is called the European Financial Stabilization Fund (EFSF), and it isn’t sustainable because wealthy EU countries are not willing to put up the Trillions necessary to recapitalize banks and stabilize sovereign debt.  EU banks and investors want the ECB to monetize their debt, i.e., print unlimited amounts of money like the Fed.  This shifts bank debt onto the backs of sovereigns and individual taxpayers, a.k.a., bank deleveraging.

CNBC’s Federal Reserve boot licker and money printing expert Steve Liesman asked Fed President James Bullard, “should the ECB monetize the debt?”  Bullard replied, “the ECB is already buying sovereign debt, this is a complete violation of the [Maastricht] treaty.”  Liesman’s response was “treaty shmeaty”, i.e, the ECB should violate the law and print money.  Liesman has no regard for the law, the sovereignty of nations, or the rights of individual sovereign citizens.  The previously mentioned comments come a little after two minutes into the video.

Europe’s Maastricht Treaty prohibits the printing of money by the ECB because taxpayers of wealthier EU nations would end up bearing most of the cost.  Just like U.S. taxpayers will bear the cost of the Fed’s toxic asset purchases and 16 Trillion cash injection, much of it into foreign banks.

Bailing out foreign banks is a violation of the Fed’s dual mandate, which applies strictly to stabilizing the domestic U.S. economy.  Why?  The Fed’s decision to bailout foreign banks makes U.S. taxpayers liable for foreign debt. So the US financial crisis was used as a pretext to violate U.S. law, likewise, the EU debt crisis is used as a pretext to violate the Maastricht Treaty. Goodbye sovereignty, hello austerity.

Steve Liesman is CNBC’s Fed expert.  He and other CNBC hosts, Melissa Lee, Andrew Sorkin, Michelle Cabrerra, Jim Kramer, Larry Krudlow, Bob Pisani, Rick Santelli, Joe Kernen, all squeal like stuck pigs when talking about government spending programs for average citizens.  But when markets start to drop, they support the Fed and ECB printing money like drunken sailors, as well as government stimulus.

CNBC’s host of Squawk Box Asia, Bernie Lo, echoed the sentiments of his CNBC comrades.  During a discussion about the Chinese government’s plan to restructure industry, Bernie said “There’s nothing wrong with being a command [communist] economy, it can make things more efficient and make things happen faster sometimes.”  CNBC hosts say they support market driven economies, but their support for the Fed’s intervention in markets and government stimulus reveals their socialist/communist agenda.

Government stimulus and unlimited money printing are the only things propping up big banks, the stock market, and by extension, the parasitic careers of CNBC hosts.  Most of the CEO’s, portfolio managers, and fund managers they interview, spew the same propaganda.  They blame average taxpaying citizens for not living within their means, then they advocate dumping Trillions of bank debt on them in violation of the law.  It’s the free market, i.e., a market free from the rules of capitalism.

President of the KC Federal Reserve, Thomas Hoenig, said Too Big To Fail companies “have the availability of different rules” …. “The United States has been the most successful economy in history…because for the most part over it’s history, it has been bound by the rules of capitalism, which does in fact reward success, but also compels participants in the market to play by open rules…and [participants] are compelled to fail when they make poor decisions”

Sept. 23, 2011, Sean Egan, president of the Egan Jones ratings firm was on Squawk Box.  Mr. Egan said Europe should make up for a “1.5 Trillion euro shortfall” by printing currency, but “Europe has a problem with printing currency because of memories of the Weimar Republic, which led to WWII”.

Money printing by Germany’s Weimar Republic collapsed their currency and facilitated the rise of Adolf Hitler.  Egan said the U.S. will be involved in the solution and suggested sending former Treasury Secretary Paulson to Europe.

Paulson engineered the 700 billion TARP bailout and supports the Fed’s printing of 16 Trillion to prop up the global banking system, so Egan clearly isn’t worried about collapsing the U.S. dollar.  He ended his commentary saying, the problem with the EU is “they’re behaving like separate nation states.”  The U.S. and European countries are separate sovereign nation states but Mr. Egan sees this as a problem, as do most big players in global financial markets.

When St. Louis Fed President James Bullard was on Squawk Box, he talked about the speculative attack on Italian debt and resulting interest rate spike that pushed Italy to the brink of insolvency.  He said “one day it will come to the U.S.”, we will have trouble borrowing in international capital markets. Communist China, one of the largest buyers of U.S. treasuries, is dumping US government debt. 

Communist China will be the bond vigilante leading the speculative attack on U.S. debt.  If the interest rate suddenly rises on America’s $19 Trillion debt, like it did in Italy, the U.S. will be on the brink of insolvency.  This manufactured crisis will be used to force radical cuts in defense, Medicare and Social Security, and force the sale of U.S. assets.  This will free up money for interest payments on US debt and for Dodd-Frank, Wall Street’s bailout program.

Washington gridlock is pure political theater, it’s a put on.  The super committee formed to deal with the debt problem was designed to fail.  Why?  US and Chinese leaders describe their governments relationship as a “partnership.”  Partners do not compete, they work together to achieve common goals, like bringing China’s totalitarian model to America.

Bipartisan leaders and their Wall Street partners want to crush U.S. sovereignty so they can continue building their command and control, centrally planned, global “free” market economy.  They want markets free from the rules of capitalism, and free from moral constraints, i.e., global organized crime.  The ideology of Wall Street’s bipartisan cronies is virtually identical their totalitarian partner, Communist China.

For more information click on the pdf file Knowledge is Power.

Is God Opposed To Big Government?

Most churches refrain from mixing politics with Christian teaching.  Our first priority is spreading the message of salvation via the Gospel and feeding Christ’s flock, but the law was given to Moses by God and governments administer God’s law.  So Christians have a responsibility to see that governments administer the law in a manner that is just and moral.  This is particularly true in a Constitutional Republic based on the consent of its citizens.

Even the apostle Paul stood up for his rights as a Roman citizen and used those rights to advance the Gospel.  Christ overcame the world but we are called to witness to the lost.  By holding up Christian values in in the political process, Christ is raised up and His light can shine on the lost.

Some of the Gospel’s principles were codified in America’s founding documents.  Acts 10:34 says: Then Peter opened his mouth, and said, Of a truth I perceive that God is no respecter of persons.  This principle of equality before God and his law is fundamental to our Constitutional Republic.  Galatians 3:28 expresses a similar principle: There is neither Jew nor Greek, there is neither bond nor free, there is neither male nor female: for ye are all one in Christ Jesus.

The principles of the gospel were revolutionary in the first century Roman Empire where 20% of the people were slaves and the Roman Emperor was considered a god.  These principles of equality are expressed in America’s Declaration of Independence, which says all people are created equal, and the Creator endowed everyone with certain unalienable rights.

America was founded on principles of limited government, and there’s Biblical evidence supporting a limit on government’s role in people’s lives.  Prior to the era of kings, the Israelites were ruled by priests and judges.  Samuel was a God fearing judge, but when his corrupt sons came to power, the people demanded a king.  God preferred the limited form of government under priests and judges, and considered the people’s demand for a king a rejection of his rule.

1 Samuel chapter 8 is the story of Israel demanding a king. The moral of the story is, if human beings subject themselves to God’s law, we do not need to cede our freedom and authority to a king or strong central government.  Click on a verse for translations other than the King James.

And it came to pass, when Samuel was old, that he made his sons judges over Israel.

Now the name of his firstborn was Joel; and the name of his second, Abiah: they were judges in Beersheba.

And his sons walked not in his ways, but turned aside after lucre, and took bribes, and perverted judgment.

Then all the elders of Israel gathered themselves together, and came to Samuel unto Ramah,

And said unto him, Behold, thou art old, and thy sons walk not in thy ways: now make us a king to judge us like all the nations.

But the thing displeased Samuel, when they said, Give us a king to judge us. And Samuel prayed unto the LORD.

And the LORD said unto Samuel, Hearken unto the voice of the people in all that they say unto thee: for they have not rejected thee, but they have rejected me, that I should not reign over them.

According to all the works which they have done since the day that I brought them up out of Egypt even unto this day, wherewith they have forsaken me, and served other gods, so do they also unto thee.

Now therefore hearken unto their voice: howbeit yet protest solemnly unto them, and shew them the manner of the king that shall reign over them.

10 And Samuel told all the words of the LORD unto the people that asked of him a king.

11 And he said, This will be the manner of the king that shall reign over you: He will take your sons, and appoint them for himself, for his chariots, and to be his horsemen; and some shall run before his chariots.

12 And he will appoint him captains over thousands, and captains over fifties; and will set them to ear his ground, and to reap his harvest, and to make his instruments of war, and instruments of his chariots.

13 And he will take your daughters to be confectionaries, and to be cooks, and to be bakers.

14 And he will take your fields, and your vineyards, and your oliveyards, even the best of them, and give them to his servants.

15 And he will take the tenth of your seed, and of your vineyards, and give to his officers, and to his servants.

16 And he will take your menservants, and your maidservants, and your goodliest young men, and your asses, and put them to his work.

17 He will take the tenth of your sheep: and ye shall be his servants.

18 And ye shall cry out in that day because of your king which ye shall have chosen you; and the LORD will not hear you in that day.

19 Nevertheless the people refused to obey the voice of Samuel; and they said, Nay; but we will have a king over us;

20 That we also may be like all the nations; and that our king may judge us, and go out before us, and fight our battles.

21 And Samuel heard all the words of the people, and he rehearsed them in the ears of the LORD.

22 And the LORD said to Samuel, Hearken unto their voice, and make them a king. And Samuel said unto the men of Israel, Go ye every man unto his city.

The Lord’s description of a reigning king sounds a lot like America’s bloated central government.  And the description fits Republicans and Democrats, both of whom govern like a greedy, power hungry king.  The LORD makes it clear that a king, a.k.a. tyrannical central government, is a poor substitute for limited government under the authority of God.

Jesus Christ took the idea of limited government even farther than the model of priests and judges.  In Luke 12: 57-59, Jesus said we should judge ourselves and thereby avoid the need for a judge.  57 Yea, and why even of yourselves judge ye not what is right?  58 When thou goest with thine adversary to the magistrate, as thou art in the way, give diligence that thou mayest be delivered from him; lest he hale thee to the judge, and the judge deliver thee to the officer, and the officer cast thee into prison.  59 I tell thee, thou shalt not depart thence, till thou hast paid the very last mite.  Jesus advocates for self government based on a moral conscience directed by God, which is the most limited form of government.
  
Morality is the key to a successful limited government like that codified in America’s founding documents.  William Federer is president of a publishing company dedicated to researching America’s Christian heritage.  In Federer’s book titled America’s God and Country, he documents references to God in the original charters of the colonies, State Constitutions, and other historical documents.  His work proves that Christian values were an integral part of American government, and they are the moral foundation making limited government possible.  We must restore the framers intent regarding the first amendment, i.e., freedom of religion, not freedom from religion. 

America is a Constitutional Republic where the highest authority is not a human being, it is the law, i.e., the Constitution and Bill of Rights which limit government power.  John Adams said, “we are either a nation of men or a nation of laws”, but America has become a nation ruled by wannabe kings and queens who think they are above the law.

Thomas Paine said, if there were to be a king, it would have to be the rule of law, and if a day of celebration were to be set aside, then homage should be paid to the law, a crown set upon it to remind those gathered that “the law is king.”  Restoring the rule of law is job one if we are going to return to limited government.

The Bible says God is not a respecter of persons.  The Constitution reflects this principle by providing laws for removing corrupt officials.  The framers of the Constitution codified respect for the office, not respect for persons who are holding office.  Once impeached, officials can be tried for crimes including treason.

We must pray for our leaders but remember that many souls have been saved by incarceration, which often leads to repentance and salvation.  If citizens do not hold corrupt officials accountable, we allow them to accrue more crimes to pay for on judgement day.  Peter says in Ephesians 4:28, Let him that stole steal no more: but rather let him labour, working with his hands the thing which is good, that he may have to give to him that needeth.  Incarcerating bipartisan leaders who use their office to lie and steal, would be an act of love and mercy.

In Romans 13, the apostle Paul says we are to submit to rulers and their governments.  However, Adolph Hitler implemented satanic laws and many German Christians complied with his evil agenda, so Christians must discern between good and evil when submitting to rulers.  The apostles demonstrated this when the chief priests commanded them not to preach in the name of Jesus Christ.  Acts 4:19 But Peter and John answered and said unto them, Whether it be right in the sight of God to hearken unto you more than unto God, judge ye.

The apostles refused to comply with government authorities.  So in Acts chapter 5, they were arrested again for preaching the gospel.  But an angel opened the prison and told them to go back to the temple and preach, which led to another arrest. Acts 5: 27-29 27 And when they had brought them, they set them before the council: and the high priest asked them, 28 Saying, Did not we straitly command you that ye should not teach in this name? and, behold, ye have filled Jerusalem with your doctrine, and intend to bring this man’s blood upon us. 29 Then Peter and the other apostles answered and said, We ought to obey God rather than men. 

One of God’s commandments is “thou shalt not kill”.  Hitler ordered those under this authority to murder millions of Jews.  Unfortunately, when it comes to war, American Christians practice the same blind obedience that led to the holocaust.  Check out this post on terrorism, then ask yourself if blind obedience to US leaders conflicts with obedience to God. 

God gave us the law through Moses and governments administer the law, so politics and Christian values are inseparable.  Not in the sense of a theocracy, but in the tradition of the Declaration of Independence, i.e., all people are created equal and endowed by the Creator with certain unalienable rights.  Use em or lose em.

Unfortunately, many Christians have been deceived by the left vs. right political paradigm, which is used as a smoke screen while bipartisan leaders implement godless communism in America.  God repeatedly told the people not to look to the left or the right, so it’s possible that America’s left vs. right politics are a scheme to take our focus off God and his commandments.

Moses told the people to obey God’s law and not look to the left or right.  Deuteronomy 28:14 And thou shalt not go aside from any of the words which I command thee this day, to the right hand, or to the left, to go after other gods to serve them.  After Moses, the leadership of Israel passed to Joshua, and the LORD gave him instructions in Joshua 1:7 Only be thou strong and very courageous, that thou mayest observe to do according to all the law, which Moses my servant commanded thee: turn not from it to the right hand or to the left, that thou mayest prosper whithersoever thou goest.

When Joshua was old he reminded the people to obey God’s law.  Joshua 23: 2-3,6  And Joshua called for all Israel, and for their elders, and for their heads, and for their judges, and for their officers, and said unto them I am old and stricken in age, 3 And ye have seen all that the LORD your God hath done unto all these nations because of you; for the LORD your God is he that hath fought for you. 6 Be ye therefore very courageous to keep and to do all that is written in the book of the law of Moses, that ye turn not aside there from to the right hand or to the left;

Proverbs 4: 27  Turn not to the right hand nor to the left: remove thy foot from evil.  I believe the left vs. right political paradigm is a sophisticated, evil scheme to divide citizens and open the door for satanic forces to influence government and society.  The purpose of the left-right paradigm is to distract us from Christ and leave citizens with a choice between two evils, which is exactly what we have in America.  But I still encourage people to vote because less evil is better than more evil.

The pdf Knowledge is Power illustrates the methods Satan and his human allies use to corrupt nations.  Jesus Christ overcame the world, but we must warn other believers who are deceived by sophisticated propaganda.  During the following interview on Prophecy In The News, Terry Cook talks about his book Beast Tech, which describes a system of “global communism” that dismantles the U.S. Constitution and national sovereignty.  American leaders implementing this system should by tried for treason. 

In spite of the difficult situation facing America and the world, don’t ever forget the GOOD NEWS in Revelation 21:1-4 And I saw a new heaven and a new earth: for the first heaven and the first earth were passed away; and there was no more sea.  2 And I John saw the holy city, new Jerusalem, coming down from God out of heaven, prepared as a bride adorned for her husband.

And I heard a great voice out of heaven saying, Behold, the tabernacle of God is with men, and he will dwell with them, and they shall be his people, and God himself shall be with them, and be their God.  4 And God shall wipe away all tears from their eyes; and there shall be no more death, neither sorrow, nor crying, neither shall there be any more pain: for the former things are passed away.  Give praise and thanks to God and our Lord and Savior Jesus Christ!

Check out the book Godonomics, which illustrates Biblical principles supporting private property rights and capitalism based on moral principles.

THERE IS A HELL TO SHUN AND A HEAVEN TO GAIN

Among Pentecostals, Kenneth E. Hagin is one of the most respected Christian leaders in modern times.  Throughout his childhood, Ken suffered from an incurable heart and blood condition that eventually left him paralyzed, and doctors said he did not have long to live.

One day, Ken’s heart stopped three times, and each time he experienced a descent into hell.  In the following teaching, Pastor Hagin recounts this experience, which led him to being a born again child of God destined for heaven.  Having experienced the possibility of going to hell, pastor Hagin spent his life zealously spreading the Gospel of Jesus Christ, which provides the only way to avoid eternal separation from God.

 

 

Listen to Dr. Charles Stanley’s inspiring teaching on how to turn a broken life into a blessed life destined for heaven.