The Sage Observer

Government Funding Bill for 2015

          Once again, the American people are about to be screwed by the Corporatocracy and Power Elite, the Shadow Government which really makes the decisions and runs this country, our pseudo democracy notwithstanding. A new law would make taxpayers potentially liable for Trillions of dollars in derivative losses in the event of another implosion of the market.

To make a very long and complex story short, derivatives, aka credit default swaps are the mortgage backed securities that led to the creation of the massive bubble in residential and commercial real estate and triggered its market collapse along with the near collapse of our banking system and economy in 2008 resulting in our “Great Recession”. I have heard numbers all over the place ranging from $400 Trillion to $900 Trillion, centering around $700 Trillion of derivatives in circulation throughout the world at that time. Called Toxic Assets, many, if not most, continue to remain on the books of the banks throughout our nation and the world today. Despite our government’s bailout of the financial markets, i.e. Wall Street, and the establishment of stronger market controls by the Dodd Frank Act, derivatives remain relatively uncontrolled to this day.

Now, let me tell you this. The gross domestic product (GDP) of the United States as of Q3, 2014 was estimated to be $17.555 Trillion. You don’t have to get all wrapped up in details to see the comparison of hundreds of trillions of dollars in potential liabilities with less than $20 Trillion in productivity.

In this new funding bill, Wall Street bank lobbyists have lobbied our representatives to insert a provision that would allow big banks to trade derivatives through subsidiaries that are federally insured by the FDIC. To quote Michael Snyder in his article in www.economiccollapse.com, “This would mean that the big banks would be able to continue their incredibly reckless derivatives trading without having to worry about the downside. If they win on their bets, the big banks would keep all the profits. If they lose on their bets, the federal government would come in and bail them out using taxpayer money. In other words, it would essentially be a ‘heads I win, tails you lose’ proposition”. Presently, under the 2010 Dodd-Frank financial reform law, these banks are required to move many of the transactions to other subsidiaries that are not insured by taxpayers. This new amendment would change that.

It goes downhill from here. In addition to this effort to weaken the financial swaps rule, there is a separate provision that would Triple the amount of money donors can contribute to political parties. Is our Shadow Government telling us they need even more money after Citizens United v. FEC in 2010 and McCutcheon v. FEC in 2013 court decisions?

Must we sell our souls to prevent shutting down the government? Those of you who lived before and during World War II surely remember the rise and fall of Adolph Hitler, Benito Mussolini, and Fascism. What has happened to our great nation and the trend in which it is going is unacceptable. We must turn around before it is too late. We the people must take back our country.

Ronald Miller

Email me at mtss86@comcast.net