Simon Johnson, author of 13 Bankers (recommended read) , and former chief economist of the IMF, has some words about the new hack, Lagarde, about to be appointed to the IMF. He asks why taxpayers in the US and elsewhere would support her. The answer of course is they wouldn't, be who is asking them, banksters and kleptocrats run the show. She has another trillion in "credit lines" to throw down the rat lines.
If Ms. Lagarde becomes head of the I.M.F., she is most likely to continue to throw loans at the euro zone problems. If there are preventive programs even for Spain, Italy or Belgium, the I.M.F. will need to tap its shareholders for at least another $1 trillion in credit lines. Ms. Lagarde personifies the strategy of gambling for euro zone resurrection with other people’s money. Why would taxpayers in the United States and elsewhere want to support her?
The largest domestic fixed income manager Bill Gross of Pimco, is protesting, in a children book sort of way. Apparently guys like this still need to humor the criminals who are running the show, but the critique and critical comments is there nonetheless,
"All right fellow frogs, so we’re being repressed and shortchanged in order to allow Uncle Sam to balance its books. Whatta we gonna do about it? “Frogs of the world unite,”"Prices are already nearing the boiling point and his coupons are subzero, CPI adjusted. Total return…and our frog…are cooked, or if not they are certainly trapped in a future low return kettle of water. Investors shouldn’t give their money away, and at the moment, the duration component of a bond portfolio comes close to doing just that – not because a bear market is just around the corner come July 1, but because it doesn’t yield enough relative to inflation. Come on frogs, make butter, not someone else’s dinner."
Elsewhere in the world of outrage, more dynamite strapped to us threats. From a note just released by Sanford C. Bernstein & Co. Brad Hintz. Goldman is too big to jail, man the barricades parceiros, criminality enthroned. :
"Goldman Sachs won't face criminal precaution related to sales of mortgage linked securities because such a move could threaten the US financial system."
Bruce Bartlett wrote an editorial in the New York Times that supports my earlier post about excessively low taxes on plutocrats. Incredible numbers of circular thinkers question this in the comment section. We have a tremendous Kool Aid drinking crowd to deal with in this country, parceiros. All one has to do is go to the Daily Treasury Statement at the US Treasury and look at corporate taxes collected fiscal year to date. There is really nothing to argue about, Bartlett is correct, and in fact conservative.
As of May 27th they were $134.0 billion, and that's about eight months into the 2011 FY. More tax breaks were given in the year end BIPARTISAN tax deal. So we can see a trend towards about $180 billion (at best) in FY 2011 divided by $14.7 trillion GDP, that's around 1.25-1.3% of GDP. No wonder plutocrats are living high on the hog.
The only key point I'd part company with Bartlett is that this set up is very BIPARTISAN. The plutocrats own these parties.
Ireland shows the blowback of bankrupting your Treasury to bailout banksters, a Depression: 14.8% unemployment AND high inflation.