Posted May 29, 2013 by Martin Armstrong
The United States is being seen as just hopelessly corrupt and the next downturn in the economy is not merely going to come down on those in Congress always willing to write blank checks to bailout the bankers when Genius Fails as it always does in New York when it is really just bribing and controlling government. The press outside the USA sees NYC as vile and corrupt and it calls the refusal to prosecute the banks as an insult to the rest of the world impacted by their corruption. This is the ENTIRE reason we are facing “bail-ins” rather than “bail-outs” because these people are being allowed to trade with your money and they keep all the profits and when they lose, they will grab your assets. They control the courts and prevent lawsuits against them that are always dismissed.
The banks do not systemically manipulate the markets. That would not be profitable. They do engage in one-off speculation in any market that they can manipulate with bogus research getting pretend analysts with conflicts of interest to talk up markets so they can sell to the schmucks. This they do every time in many markets particularly commodities in general. Some have argued that the Fed is even in on it. There have been even academic studies on manipulation. The first public instance was the Salomon Brothers manipulation of the US Treasury Auctions. That is effectively the same thing with LIBOR. The difference is back in 1991, the US Government was still independent.
Robert Edward Rubin is the man who changed all that. He served as the 70th US Treasury Secretary (1995-1999) during both the first and second Clinton Administrations. This is the man the got Glass-Seagall repealled. He had been at Goldman Sachs for 26 years eventually serving as a member of the board, and co-chairman from 1990 to 1992. It was this man who orchestrated the reverse takeover of government making the bankers “untouchable”.
There is simply nothing either side does not do to make money illegally with inside help. They will not prosecute the banks because they sell the debt and fund their elections. Even Senator Dianne Feinstein’s husband got the contract to sell post offices in the country. Why is it always a relative of a politicians who gets deals like this?
They call the bankers in NY the “untouchables” and have equated the Department of Justice with the Catholic Church in a state of denial and cover-up. Unfortunately, we will now see the world has lost all respect for the USA when 2016 arrives. The outcry politically from around the world may be greater than anyone ever expects. Here is just a sample.