no third solution

Blogging about liberty, anarchy, economics and politics

Bailouts, Bullsh*t and Blackmail: How Banks Profit in the 21st Century

August 27th, 2009

In case you’re still not convinced that the banksters are holding us all hostage,  essentially blackmailing us under the repeated threat of “systemic collapse”, I have one question for you: how much more evidence do you need? Virtually nobody wanted to help them out, but they took $7.4 Trillion dollars anyways!  In other words, under color of law, they stole six months of your hard work, so as to perpetuate a massive check-kiting pyramid scheme.

As it turns out, six months of your labor wasn’t enough. And adding insult to injury, not only do they want more money (from you), they want no accountability so badly, even after having ripped you off for $7.4 Trillion, that they are to make your life even shittier what with the “complete economic collapse” thingamajig. At Zero Hedge, Tyler Durden calls this “Racketeering 101.”

The players are: ABN Amro, Chase, US Bank, Wells Fargo, Bank of America, The Bank of New York, Deutsche Bank, HSBC, etc. — a veritable “Who’s Who” of motherfucking scumbags, political profiteers and rent-seekers extraordinaire, who together have siphoned off or otherwise managed to destroy more wealth than any World War.

The reasons put forth by the CHA simply do not hold up under scrutiny: “The severe competitive harm that public disclosure of their identity will cause,” and the argument that “negative rumors about a bank’s financial condition – even completely unfounded rumors – have caused competitive harm, including bank runs and failures.”

Spin. Let’s rephrase: “The severe competitive harm that public disclosure of their crimes will cause,” and the argument that “facts about a bank’s insolvent financial condition” will cause people to avoid them like the Plague.  Puts things in perspective, doesn’t it?

If mere “rumors” of insolvency set in motion certain events leading up to the eventual failure, we can logically conclude that the bank was insolvent in the first place. Public awareness exposes the fraud sooner, but awareness didn’t cause the insolvency. If these banks are worried about “rumors”, it’s because they’re trying to pass themselves off as solvent to delay their reckoning and steal a few more billion dollars from you before the whole system comes crashing down. In other words: they’re broken, and they know it.

The only people who want to obscure the facts and suppress the truth are those people who profit from lies.

They say the world will end, “teh economy will collapse” unless we help them.  They’re fucking wrong. I say: Let’s call that bluff. Let’s see it all collapse.  We can do without any of them, but they can’t do without us.

Their world might very well end, but I don’t see anything wrong with that.

“How can this happen in a free market?”

May 22nd, 2009

In light of Chrysler’s bankruptcy, George Joseph, the President and owner of Sunshine Dodge-Isuzu laments that he’s about to lose everything.

On Thursday, May 14, 2009 I was notified that my Dodge franchise, that we purchased, will be taken away from my family on June 9, 2009 without compensation and given to another dealer at no cost to them. My new vehicle inventory consists of 125 vehicles with a financed balance of 3 million dollars. This inventory becomes impossible to sell with no factory incentives beyond June 9, 2009. Without the Dodge franchise we can no longer sell a new Dodge as “new,” nor will we be able to do any warranty service work. Additionally, my Dodge parts inventory, (approximately $300,000.) is virtually worthless without the ability to perform warranty service. There is no offer from Chrysler to buy back the vehicles or parts inventory…

My business is being stolen from me …We did NOTHING wrong.

— GSC

A number of distortions are mentioned in passing in the paragraph I quote from Joseph, above: the cartelization of the Auto industry, the backwards Sloanist distribution model, the fact that dealers routinely profited even while the companies were losing money hand-over-fist, retarded intellectual property restrictions and other nonsense license agreements, etc.

Joseph asks, presumably in all seriousness, “How can this happen in a free market?” It can’t, dude.  Check your premises.  These things don’t happen in a free market.  If these things are happening, the market isn’t free.  We aren’t even in the same ballpark.

It seems like apathy isn’t the right approach to these stories anymore, but I have a hard time getting fired up one way or the other. For starters, there’s the waste. Bill Waddell at the Evolving Excellence blog read through the Chrysler bankruptcy filings, and notes that the company had 140,000 people working at dealerships and 22,000 people making cars. Meanwhile, Toyota sold 50% more cars with 50% fewer dealers.

So, part of me wants to say to Mr. Joseph: You made your bed. You’ve invested your life in a company that’s been flirting with bankruptcy for the better part of a generation. You had ample opportunity to cut your losses, or to get out while the getting was still good. And had the Auto Bailout worked, I sincerely doubt that you’d be sending checks to all the taxpayers who financed the incentives that kept your dealership in business.

As you sow, so shall ye reap.  Right?

But another part of me agrees in full, that he’s being robbed blind. What’s unfortunate is that Joseph seems to be genuinely invested—emotionally and otherwise—in his family’s business. He believed that the Company was invested in his family’s business, too, which is now being revealed for the mistake that it was.

I know it should never have gotten this far, it should never have gotten this bad.  But it did, and it is.

There is no clean way out of this mess.

Czech P.M.: U.S. Recovery Plan is “Road to Hell”

March 26th, 2009

The other day I “tweeted” (wow, that sounds even stupider when I say it) about how I was becoming more enamored with the Czechs, especially dead-man-walking Prime Minister Mirek Topolanek, who described the U.S. recovery plan put forth by the Obama administration as a “way to hell“.

The Gray Lady’s commentary is rather unsatisfactorily short on substance, and long on nonsense including a boilerplate description of what the EU presidency is, how its constituted, etc. I’m reasonably certain that Topolanek has good reasons, perhaps even sound economic arguments, behind his criticism of the White House’s economic stimulus, but you wouldn’t know it from the article. (And the newspapers wonder why their volumes are declining?)

Buried all the way at the bottom of the article was one scorn-worthy comment from a member of the E.U. Parliament:

Martin Schulz, leader of the socialist group in the European Parliament, said that the description of the Obama recovery plans as “the road to hell” was “not the level on which the E.U. ought to be operating with the United States.”

“You have not understood what the task of the E.U. presidency is,” Mr. Schulz told Mr. Topolanek.

Maybe, just maybe men like Topolanek see the current crisis from a unique vantage point. Maybe, we ought to give a little bit more credence to arguments put forth by individuals who lived under state-socialism for the bulk of their adult lives — and who have experienced first-hand what even modest amounts of liberalization can do for an economy. (I was in Prague in July of 2003, and with few exceptions, it was impossible to tell that the country had previously been behind the Iron Curtain.)

Treating every politically unorthodox idea or argument as prima facie wrong, is the worst sort of politicking, because it paves the path for totalitarianism.

Criticizing tried-and-failed ideas like the current “stimulus” plan is not to be tolerated. Collusion among the State elites is necessary to keep the charade alive; dissent will be punished, censured, or ridiculed at every opportunity.

no third solution

Blogging about liberty, anarchy, economics and politics