PURGING THE PHONY PILLARS OF POWER POLITICS

Purging the Phony Pillars of Power Politics

By Alex S. Gabor


The ability to issue a global, national, or corporate currency creates power over the commoner. When the majority stock in trade of any nation becomes debt instruments and speculative paper, instead of real products that can be exchanged for value, that nation is doomed to extinction.

Money is the blood of all nations. When the heart of any nation becomes corrupt, the body politic gradually becomes cancerous and feeds off of itself, eventually dying. Those who attempt to defend the corrupt become themselves diseased and also die in the fighting.

Upheavals are the birth of new systems and technology to replace the old. The entire world is bearing witness to the greatest upheavals in the history of man.

The current wave of mergers across many industrial sectors through private equity transactions is simply an effort of those who have failed to maintain a falling and collapsing financial system.

Technology is bringing people together faster than vested interests can hold them apart or force them into quarrels. It was Buckminster Fuller who suggested that either war or men have become obsolete in the 60’s.

Today we have the greatest battles being fought for the hearts and minds of a growing population of close to 7 billion people. The greatest war in history is not being fought with bombs and bullets; it is being fought with reason, logic and ideas.

Reason, logic and good ideas have always outlasted the temporary gains that bullets or bombs can offer. That is why short sighted militarists always co-opt the scientist, the philosopher and the priest in executing strategy.

There is now a major shift of power politics taking place through the auspices of the global banking community and technological advancements. Honest people are using technology more and more to remove cancerous cells of society which foment corruption and greed.

The power to regulate the value of money in the United States once belonged to the people. It was transferred to Congress under the United States Constitution through the Federal Reserve Act.
The rest of the free world followed the lead of the U.S. with their own forms of democratic government, central banking, and various forms of specie and issuance.

The Chairman of the Federal Reserve uses lies, phony statistics and false propaganda in attempts to shore up the loss of faith and confidence which the rest of the world clearly perceives to be a sickened and corrupt financial system.

Lately the shift in the purchasing power of the dollar has come under fire by many foreign central bankers who see two major factors wrong with the United States dollar.

There have been too many dollars issued through paper and electronic means and America is now in a state of industrial and financial collapse as a result of the corruption that pervades American government.

The daily dollar volume of currency trades has doubled in a decade from 1 to 2 trillion per day. The total amount of derivative instruments has mushroomed in the same period from under 1 trillion to over $450 trillion and is growing at the rate of over a trillion per week.

The United States Government, through the fiat money system created by the Federal Reserve Banks, has created on average, $30,000 in debt for every citizen in America. This debt will never be repaid but only continues to be refinanced through an illusory ponzi scheme that is maintained by a network of 22 authorized Wall Street Banks and Brokerage Houses.

Nazism, Communism, Socialism all collapsed through the perversion of basic economic laws for the benefit of the few at the expense of the many, despite their massive political rhetoric to the contrary.

There were other factors involved in their collapse, but at the root of their phony ideologies and perverted sense of justice lay a corrupt economic policy which took from the many for the domination of the few.

America has acted no differently in what it propagandizes as “democracy” to the rest of the world. Capitalism is collapsing for the same basic reasons that any system fails – dishonesty and corruption.

Today money is backed by confidence, nothing more or less. When confidence is lost, when you can no longer trust the honesty of any system, it fails, and the rapidity of that failure is dependent upon communication channels between those that use the system in daily commerce and those that attempt to maintain an illusion of stability.

The quicker the common man realizes he has been hoodwinked, the quicker the systems collapse. America’s collapse is being accelerated by the ongoing investigations and revelations of the more honest citizens in America who understand the corruption in the legal professions.

Capitalism is following the lead of Hitlerism, Stalinism and Socialism into the 21st century, despite regulation, government intervention, or political grand standing. The masses didn't start the fire, but they will gradually put it out. Wars and invasion cannot sustain the value of any currency and any policy of global domination fails when force is used.

Most analysts fail to point out that the power to regulate the "peoples" money in the US has been transferred for the past ten decades to a privately owned bank, namely the Federal Reserve. That problem, maintained by Wall Street where two banks alone service over $16 trillion in assets and are set to merge next year, has now shifted overseas.

Wall Street has lost the power to control the Fed, to influence the U.S. Treasury, or to dominate the global markets. It has printed up and created too much money too quickly – at least $2 trillion in less than two years.

The power to regulate our nation’s currency now lies in the hands of foreign central banks that see America’s failings. China, Russia, Hong Kong, Europe and the Middle East now control more than half of the currency issued by the United States financial system, and they realize that the time has come to gradually get out and diversify.

Thus you see China growing at rates of 10-15% per annum, India growing at 10% and African nations growing at 6-10% annual rates. Money is no longer flowing into industrial production in America. Its annual growth rate has been stalled and America is saturated with problems of high prices, inflated real estate, both residential and commercial, and exorbitant executive pay and non competitive wages.

The power of corporations, licensed by the States, to issue currency is regulated by the US SEC and their opposite number at the State level. The powers of Banking, Insurance and Corporate Finance are held by a tightly knit group of politicians in Washington D.C. that influence individual state policy through the process of politics and appropriations.

Those politicians have failed to guard the hen house and have overlooked the foxes that have looted the industrial might of America. For every man, woman and child on the planet, the financial military industrial media complex has created $10,000 in debt which will never be repaid. It will simply collapse in value as it is now collapsing because it has become too corrupt for people to trust the full faith and credit of the United States.

Only when economics is removed from politics will sanity return to the subject of free and clear economics.

Individual investors and corporate CEO's are becoming wiser to the mechanisms of capitalism. They are setting aside their personal desires for the short term and seriously looking at the long term impact of their participation in what has become a dead end form of capitalism.

Money created out of thin air by credit card issuers, banks, savings and loans, and investment bankers, with interest tacked on, is disappearing much more rapidly than the nine decades it took to create $500 trillion in high interest global debt instruments.

Hyper inflation is no longer a threat, it has become a reality that foreign central banks are slowly coming to realize must come to an end lest their own economies suffer.

The arrogance of America has led to corruption not only in the United States but in Japan, Germany, Britain, and India. The troubles in the Middle East are fomented by this corrupt Octodragon which is paralyzing the global economy.

Many more trillions in funds electronically funneled into the global financial system borrowed from banks, which has fueled a decade long artificial boom in the global equity markets, global real estate prices, but kept real earnings and wages artificially low, will lose $80 trillion in value during the next 36 months, and is never going to be repaid.

Over the past decade over $50 trillion in inflated values have disappeared back into the thin air from whence they originated and in the past 24 months have been recreated twice over out of thin air through the actions of the financial military industrial media complex. The cycle of boom and bust cannot be controlled no matter how hard politicians try.

The world will never be free and fully democratic as long as we continue to subscribe to the old way of creating money, which has served its purpose, but which gradually will become functionally obsolete.

There is no nation on earth that can say that their money is backed by anything more than confidence and the confidence games of sovereign nations is swiftly crumbling as the power of the internet educates those who want to know what is really going on.

Instead, existing stockholders are being both diluted and deluded, after which they are crying foul and blowing their whistles far and wide. Diluted in the sense that firms going bankrupt wind up converting their debt into equity held by the banks and financiers, who in turn restructure and refloat their stocks to the unwary investing public.

Deluded in the sense that there is a constant promotion of false value in terms of currency prices relative to earnings. Value is not determined by real evaluations of net present worth but by hype and political circumstance. Despite efforts to get back to the fundamentals, Wall Street is still trying to sell Main Street on the idea that we can all get back to business as usual.

Those getting in early, at the behest of the investment bankers, tend to get out early. This is the essence of capitalism. The greater fool theory. The international derivatives market is a perfect example of passing the buck (risk) to the next greater fool.

Entire global corporate legal professions are under fire for fraud as a result of whistleblowers who have sought to obtain “get out of jail free cards”.

Market manipulation exists at every level of corporate America, and all levels of government, whether on the bullish side or the bearish. It all depends upon who you know, who you are connected to, and who you are paying off and in what legal, illegal or unethical manner. The general investing public is getting wise and tired of all this over the past six years.

What is missing from the markets is a standard medium of exchange or a standard of weights and measures. Why does Coca Cola trade at 10X net tangible book value, one of the highest priced DOW components, while J.P. Morgan trades at just under 3X book value? It is all hype.

It is public perception of value which is unregulated in the latter, and Wall Street Investment Bankers touting and supporting the artificial high price in the former. But the rest of the world has woken up to the fact that the U.S. dollar is worth 13,000% less today than it was a hundred years ago and despite short term manipulations, the long range trend is toward extinction. In the end, Europe, Britain and China may need to bail out America from its current state of financial, economic and industrial collapse.

That is the biggest upheaval in the making that mainstream media is only now, after many years of scandals and corruption surfacing exposures is taking notice.

Government intervention will not restore lost confidence in a system which has been crumbling from fraud and deception and has served only those who put the systems into place.

The majority of politicians and heads of major financial industrial and media companies in America are lawyers or come from a legal background. This “club of the law” puts on airs of respectability but is more ruthless than the very clients they represent.

Invisible Bankers, whether on the equity or debt side of the equation, control the legal profession, no matter which way you toss the coins. The legal profession drafts and makes the laws through a complex system of legislative morass the ordinary citizen cannot even begin to comprehend, as it is shrouded in secrecy and when published is more complex than the anatomy of an entire galaxy.

That perhaps is the real reason it is called “Wall Street” and the more you deal with a broker, the broker you get, whether on the macro level or the micro level. The Wall Street brokers are the dupes of the engines of finance that keep the corruption machine in place and operational.

What is lost through the general ignorance of the populace is that all lawyers and bankers are simply middle men. Why would you lend your hard earned capital to a bank, which hires lawyers to regulate its' value, gives you a negative return on your money, while charging your relatives, your associates and your entire network of acquaintances a much higher price for using your money?

What is needed, not only in the United States, but around the world, is a global central clearing bank, not owned or controlled by vested interests, but run and administered for the people, by the people, and created from the people, bypassing all existing dysfunctional systems in place eventually replacing our current system of capitalism which benefits the greatest good for the greatest number.

Only the Internet makes this possible now for over two billion people and growing. 30% of the world’s population is now interconnected to each of us via the Internet.

This global central bank would re-establish a global standard of weights and measures for all forms of issuance, and provide debt financing at zero interest, yet would still charge a fee to cover its expenses in administration. It may be that China, Britain and Europe will have to lead in the formation of this globalized central bank to bail out America, to prevent them from losing the $450 trillion in hedged bets that have been foisted onto them by Wall Street slick men.


This gradual evolutionary process could eventually eliminate all forms of speculation, greed, and false prophets (analysts) from a truly free market, for what is perceived to be a free market in democratic nations is in reality highly controlled by those phony pillars that practice power politics.

The concept for such a global central bank has been supported by financiers like George Soros, and other banking industrialists such as Dee Hock and will lay the foundations for the future liquidity of the rest of the system, public and private. The entire population of more than 800 million Middle Eastern citizens of the world already supports the zero interest paradigms for investing, lending and economic expansion.

Such an internationally cooperative central bank will eventually become the global lender of last resort. You are witness to the Enronian style collapses of financial institutions which are covered up through the process of mergers and acquisitions, that gradually become exposed further in their bribery scandals entwined with corrupt government lawyers who use the media and the power of the internet to misdirect attention from their phony pillars of power politics gradually and consistently being purged by those who communicate the whole truth, and nothing but the truth. They are helped by god.

Proponents of this new zero interest capitalism have focused the attention of the public on what's wrong with the current system through independent journalism, rather than the mainstream, and it may take a few more years to purge the rest of those phony pillars that keep a defunct and dying system in place.

As you are tantamount to directly witnessing certain events taking place globally, you will eventually know that we all did it for the greatest good of all concerned, after all, the future of money is all that is at stake, and that future is subject to infinite diversification.


Copyright © 2006 by Alex S. Gabor, All World Copy Rights Reserved.

A CONTINUING SERIES ON THE OCTODRAGON

PART OF A CONTINUING SERIES ON THE SUBJECT OF THE OCTODRAGON

BY ALEX S. GABOR

I just finished watching ENRON: The Smartest Guys in the Room. Last week I saw a special screening of Iraq For Sale.

Former Enron Corp. Chief Executive Officer Jeffrey Skilling will spend less than 20 years behind bars for helping to orchestrate one of the nation's biggest financial scandals that has been revealed to date.

There are many more ongoing financial scandals which the markets have yet to discover and reveal even to itself.

The documentary about Enron is the yet to be finished fully disclosed partial inside story of one of history's greatest business scandals, in which top executives of America's 7th largest company walked away with over one billion dollars while investors and employees lost everything.

The docudrama didn't dig deep enough. It fell very short of revealing ties between Enron, the Bush and Bin Laden familes and the Carlyle Group.

Based on the best-selling book "The Smartest Guys in the Room" by Fortune reporters Bethany McLean, the first person to ever ask "where is Enron getting its' money from?", and Peter Elkind features some insider accounts and incendiary corporate audio and videotapes, Writer and Director Alex Gibney reveals the almost unimaginable personal excesses of the Enron hierarchy and the utter moral vacuum that posed as corporate philosophy.

The film is about people not numbers and illustrates the symptoms of a disease that permeates global finance.

Perhaps McLean and Elkind will now dig even deeper and uncover the post mortem diagnosis of the worlds' ailing financial system, wherein Enron was merely a tiny expendable cell on the tentacle of the much larger Octodragon, and ask, where is America getting its' money from?

The Enron film comes to a harrowing denouement as we hear Enron traders' own voices as they cause the theft of $30 billion in cash flow from the debacle they created out of the California energy crisis, and later caused the ouster of Gray Davis.

Back in Houston today, U.S. District Judge Sim Lake is allowing victims to speak at the hearing about how the company's implosion affected their lives. The collapse wiped out thousands of jobs, more than $60 billion in market value and more than $2 billion in pension plans, not to mention the extra $40 billion in energy costs to Californians.

We can barely come to understand the corporate capacity for depravity and the sheer magnitude of how the avarice of Enron's traders and their bosses had a shocking and profound domino effect that still has not woken big business up to the reality that nothing plus nothing leaves nothing.

Ken Lay, Enron's founder who was convicted but never sentenced to life in prison for his crimes, died July 5th, 2006 of a heart attack in Colorado. To his dying day he insisted he was innocent and did nothing wrong.

Wendy Vaughan, one of the jurors at the trial of Lay and his co-defendant Skilling, said that she wanted to believe what they were saying but "there were places in the testimony I felt their character was questionable".

Lay had intended to appeal against his conviction which under US laws is automatically revoked if a man dies before sentencing.

But with his death, Ms Vaughan's assessment of him - and many which are less compassioniate - will stand unchallenged.

Unfortunately, despite Enron, Worldcom, Global Crossing, Healthsouth, Haliburton, (watch Iraq For Sale) and the thousands of other corrupt corporate practices ongoing in America, a la backdating stock options, the real bamboozles between the ponzie schemes of bankers, lawyers, accountants, corporate America and the United States Government, the amount of truth on the subject which has reached the public consciousness is merely the tip of the iceberg.

Prosecutors have asked that Skilling turn over nearly $183 million, which they claim he pocketed while at Enron. The U.S. government had divided that amount between Skilling and Lay. But Lay's death has left that amount solely on Skilling.

The film about Enron is merely a microscopic look at the larger ills facing our planet today. There should be a sequel and more film makers should start making films like these to enlighten the rest of us on how deep the roots of corruption really have grown.

The only things that will uproot the Octodragon and its global tentacles are more of the same- broad public education.

Killing off Skilling and Lay, by putting them away, is just like snuffing another cell of a tentacle that won't change how America or the world does business because it is dominated by the Octodragon.

While the story of Enron finally comes to a close, almost six years after McLean asked her simple but powerful question, in the public mind, another tentacle of the Octodragon has reached into the homes of over a billion internet users.

Google - has been born. It is only 18 months old and still growing like the Borg. Dare we ask about their accounting practices as the stock rockets past $500 per share and the Dow Jones Industrial average soars past 13,000?