Category: Basic Economics
My latest blog, The MF Global Collapse Explained (and Why It Is a Crime), is available on FredSauerMatrix. To read it click here.
In my latest article, I take a thorough and detailed look at the real story behind the MF Global bankruptcy, and how the actions of its executives and board members resulted in the depositors losing billions of their own hard-earned money.
On Monday October 31, 2011, MF Global filed for Chapter 11 bankruptcy listing $39.7 billion in debt and $41 billion in assets in its bankruptcy filing, and only $26 million in cash. With at least $1.2 billion “missing” from customers’ accounts, the blame game for who was responsible for such a massive failure has begun.
MF Global failed to make a profit in over four years, but its plunge into bankruptcy was precipitated by former CEO John Corzine’s decision shortly after his arrival in March of 2010 “to change MF Global from a midsize derivatives broker to full-fledged investment bank that took risks with its own capital.” These risks included diving head first into the Italian and Spanish bond markets shortly before they plunged into chaos following concerns by investors over the growing European debt crisis.
But the lack of oversight and action by the regulatory entities charged with protecting MF Global’s customers, the Chicago Mercantile Exchange and Commodity Futures Trading Commission, brings to light many questions about whether John Corzine’s close connections and relationships with people at both entities, and his connections to the Federal Reserve which helped bailout MF Global’s balance sheets, put MF Global’s customers in a position of unnecessary risk. What’s clear is regulators turned a blind eye at the very corporate malfeasance that could have saved MF Global’s customers. Insightful calculations demonstrate how outrageous the risks were.
My latest blog, Why Goldman Sachs (and Warren Buffett) Always Win, is available on FredSauerMatrix. To read it click here.
In my latest article, I take a thorough and detailed look at the cozy relationship between Warren Buffett and Goldman Sachs. For years, liberal elites have protected the interests of Goldman Sachs. But the true extent of this protection was only revealed during the 2008 financial meltdown when the Federal Reserve loaned Goldman Sachs over $600 billion to keep it afloat. Without this loan, Goldman Sachs would have joined Lehman Brothers in the dustbin of failed financial firms on Wall Street. But, one person in particular, Warren Buffett, made out like a bandit as a result of the Federal Reserve’s rescue of Goldman Sachs. Find out how the Federal Reserve saved America’s “most brillant investor” from losing over $5 billion on his Goldman Sachs investment.
My latest blog, The Democratic Wrecking Machine, is available on FredSauerMatrix. To read it click here.
This article details with facts and figures the damaging impact just 2 3/4 years of the Obama Administration have done to the U.S. economy. The real record of the Obama Administration is one of massive deficit spending, growing federal debt, massive job losses, declining home prices and liberal regulatory expansion. The American people have paid the price for socialist policies that have no end in sight.
My latest blog, American Taxpayers: Meet Your New Friends and Neighbors the Greeks, is available on FredSauerMatrix. To read it click here.
This article addresses the true extent of Europe’s fiscal crisis, and how the American taxpayer, unknowingly through the IMF, is helping bailout failing socialist nations in Europe. Europe is a “house of cards” that will ultimately depend on the American taxpayers. I use real data from the IMF to show that American taxpayers will bear the brunt of paying for these European bailouts as they leap frog from country to country.
Fortunately, we have one of the world’s foremost experts, Vladimir Lenin, to point us to the answer. He gained his expertise by being a principal participant in Communism’s “tabula rasa” (i.e.-“empty slate before receiving outside impressions”) takeover of Russia in 1917 and subsequent destruction of that nation. He said “Communism is Socialism in a hurry.”[i] From this we can just turn to the Communist Manifesto to find the underpinnings of Socialism:
10 Conditions For Transition To Communism
- Abolition of property in land and application of all rents of land to public purposes.
- A heavy progressive or graduated income tax.
- Abolition of all right of inheritance.
- Confiscation of the property of all emigrants and rebels.
- Centralisation of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly.
- Centralisation of the means of communication and transport in the hands of the State.
- Extension of factories and instruments of production owned by the State; the bringing into cultivation of waste-lands, and the improvement of the soil generally in accordance with a common plan.
- Equal liability of all to labour. Establishment of industrial armies, especially for agriculture.
- Combination of agriculture with manufacturing industries; gradual abolition of the distinction between town and country, by a more equitable distribution of the population over the country.
- Free education for all children in public schools. Abolition of children’s factory labour in its present form. Combination of education with industrial production.
. . . .In short, the Communists everywhere support every revolutionary movement against the existing social and political order of things.[ii]
The “Elites” are those who think they know better about how you should lead your life than you do. They hold power over you while you try to earn a living selling your labor and skills for a profit.
Socialists are “Elites” who attack the existing social order by all manner of means and techniques to establish the conditions for transition to communism.
The most instructive definition of Socialism is that it is the human condition resulting from the Elites’ imposition of their desire to make people do what they want them to do. Its final form is usually a single-party, non-democratic government, or outright tyranny, where a collapsed economy and loss of human rights impoverishes and destroys the people. The world is full of proofs of this definition.
In fact, A Simple Guide: How Liberalism, A Euphemism For Socialism, Destroys Peoples and Nations escorts you on a global tour where you can make your own judgments about this definition of Socialism. Russia will be an especially pointed discussion.
Having then convinced you of this general definition of Socialism, the Simple Guide will then take you on an unprecedented tour of our own governmental processes to observe what techniques and schemes our “Elites” have been using for almost 100 years to achieve final and perpetual single-party control of America and her citizens!!
[i] Sauer, Fred N. A Simple Guide: How Liberalism, A Euphemism For Socialism Destroys Peoples and Nations. St. Louis: Self-Published, 2010. p. 214.
I want to refer you to a remarkable post on the Hot Air Blog titled “Did the Government cause the Gulf Spill?” to further expound on my previous blog , “Skimmers, Skimmers, Skimmers–Where are the Skimmers???”
The Coast Guard has gathered evidence it failed to follow its own firefighting policy during the Deepwater Horizon disaster and is investigating whether the chaotic spraying of tons of salt water by private boats contributed to sinking the ill fated oil rig, according to interviews and documents.
Coast Guard officials told the Center for Public Integrity that the service does not have the expertise to fight an oil rig fire and that its response to the April 20 explosion may have broken the service’s own rules by failing to ensure a firefighting expert supervised the half-dozen private boats that answered the Deepwater Horizon’s distress call to fight the blaze.[i]
This is just amazing. As stated in the above facts, this is just gross incompetence. But look how these mistakes in firefighting procedures may have resulted in the first trigger of the initiating cause of the “leak:”
An official maritime investigation led by Coast Guard Capt. Hung M. Nguyen in New Orleans is examining whether the salt water that was sprayed across the burning platform overran the ballast system that kept the rig upright, changing its weight distribution, and causing it to list.
Ocean rigs are massive, tall structures – usually several stories high – that float on the water. The rig can be lowered or raised by adjusting air and sea water contained in its ballast tanks. These tanks have seals that were likely damaged by the fire blazing on the rig, which would have allowed the massive amounts of sea water sprayed on the rig to fight the fire to enter the tanks and seriously disturb the rig’s center of gravity.
The main source of the spill was not the blowout preventer, but the riser pipe to the rig. When the rig collapsed and sank a few days after the blowout, the pipe tore open and began pouring tens of thousands of barrels of oil each day into the Gulf of Mexico. Had the rig been salvaged, it’s likely that most of the spill would never have occurred . . . .
Kevin Robb, a civilian Coast Guard search and rescue specialist who acted as the first watch commander the night of the accident, testified that there was no attempt by the Coast Guard Command Center in New Orleans to designate a fire marshal to take charge.[ii]
To men of the sea, fires on any floating vessels are extremely dangerous and demand following governing procedures to the letter. So, at this point, since there was a procedural failure, maybe dereliction of duty is evident. The terrible consequences would make you especially distrustful of the abilities of the federal government as operator of the Coast Guard. Yet this same federal government has taken over the most complicated business in the world –delivering us our health care??
Now if you are a natural cynic, you should read my blogs “Skimmers, Skimmers, Skimmers–Where are the Skimmers???” and “Radical Democratic Party Continues Its Ongoing ‘Jihad’ Against Domestic Oil Production and Eventual Energy Independence.” These will prepare you for this next fact:
An earlier report from Mehta and Solomon also raised important questions that the White House has yet to answer about what Obama knew when. That investigation revealed the White House timeline of events failed to acknowledge an oil leak until four days after the explosion, even though the Coast Guard’s timeline reported a leak one day after the explosion.[iii]
So, many needs of radical liberal Democrats have been satisfied all too conveniently by the Deepwater Horizon Disaster.
Maybe letting these same people take over delivery of our health care is not just a very wise decision???
For a more thorough discussion on this topic, please see page 335 of Chapter 15, “Health Care” Is NOT about Health Care, of my book “A Simple Guide: How Liberalism, A Euphemism For Socialism, Destroys Peoples and Nations.” After reading this, you just conclude that surrendering personal control over our Health Care to Obama Care is tantamount to giving the federal government regulators a license to ration – especially if you are over 65!
[i] Morrissey, Ed. “Did the Government cause the Gulf Spill?” Hot Air. July 30,2010. Web. Accessed August 4, 2010. <http://hotair.com/archives/2010/07/30/did-the-government-cause-the-gulf-spill/>.