Wednesday, July 01, 2009

Henry Paulson & The great American bubble machine


This article was originally from Rolling Stone magazine, and is here shown in a blog from somethingawful.com. It seems that Henry Paulson was the former CEO of Goldman Sach's, a time honored vampire that has sucked the life blood of the sheeple. Even in the times before the Federal Reserve.

Omnislash
May 25, 2004

This isn't really an exclusive, but aside from a scanned PDF copy of the physical magazine, the complete article isn't online anywhere I can see thanks to Rolling Stone being completely retarded, so I OCR'd it. This is one of the best articles he's written yet, and even as cynical as I am, I was still sick to my stomach by the time I finished the last section.
quote:

THE GREAT AMERICAN BUBBLE MACHINE

From tech stocks to high gas prices, Goldman Sachs has engineered every major market manipulation since the Great Depression - and they're about to do it again

By MATT TAIBBI

The first thing you need to know about Goldman Sachs is that it's everywhere. The world's most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. In fact, the history of the recent financial crisis, which doubles as a history of the rapid decline and fall of the suddenly swindled-dry American empire, reads like a Who's Who of Goldman Sachs graduates.

By now, most of us know the major players. As George Bush's last Treasury secretary, former Goldman CEO Henry Paulson was the architect of the bailout, a suspiciously self-serving plan to funnel trillions of Your Dollars to a handful of his old friends on Wall Street. Robert Rubin, Bill Clinton's former Treasury secretary, spent 26 years at Goldman before becoming chairman of Citigroup - which in turn got a $300 billion taxpayer bailout from Paulson. There's John Thain, the rear end in a top hat chief of Merrill Lynch who bought an $87,000 area rug for his office as his company was imploding; a former Goldman banker, Thain enjoyed a multibillion-dollar handout from Paulson, who used billions in taxpayer funds to help Bank of America rescue Thain's sorry company. And Robert Steel, the former Goldmanite head of Wachovia, scored himself and his fellow executives $225 million in golden parachute payments as his bank was self-destructing. There's Joshua Bolten, Bush's chief of staff during the bailout, and Mark Patterson, the current Treasury chief of staff, who was a Goldman lobbyist just a year ago, and Ed Liddy, the former Goldman director whom Paulson put in charge of bailed-out insurance giant AIG, which forked over $13 billion to Goldman after Liddy came on board. The heads of the Canadian and Italian national banks are Goldman alums, as is the head of the World Bank, the head of the New York Stock Exchange, the last two heads of the Federal Reserve Bank of New York - which, incidentally, is now in charge of overseeing Goldman - not to mention ...

But then, any attempt to construct a narrative around all the former Goldmanites in influential positions quickly becomes an absurd and pointless exercise, like trying to make a list of everything. What you need to know is the big picture: If America is circling the drain, Goldman Sachs has found a way to be that drain - an extremely unfortunate loophole in the system of Western democratic capitalism, which never foresaw that in a society governed passively by free markets and free elections, organized greed always defeats disorganized democracy.

The bank's unprecedented reach and power have enabled it to turn all of America into a giant pump-and-dump scam, manipulating whole economic sectors for years at a time, moving the dice game as this or that market collapses, and all the time gorging itself on the unseen costs that are breaking families everywhere - high gas prices, rising consumer-credit rates, half-eaten pension funds, mass layoffs, future taxes to pay off bailouts. All that money that you're losing, it's going somewhere, and in both a literal and a figurative sense, Goldman Sachs is where it's going: The bank is a huge, highly sophisticated engine for converting the useful, deployed wealth of society into the least useful, most wasteful and insoluble substance on Earth - pure profit for rich individuals.

They achieve this using the same playbook over and over again. The formula is relatively simple: Goldman positions itself in the middle of a speculative bubble, selling investments they know are crap. Then they hoover up vast sums from the middle and lower floors of society with the aid of a crippled and corrupt state that allows it to rewrite the rules in exchange for the relative pennies the bank throws at political patronage. Finally, when it all goes bust, leaving millions of ordinary citizens broke and starving, they begin the entire process over again, riding in to rescue us all by lending us back our own money at interest, selling themselves as men above greed, just a bunch of really smart guys keeping the wheels greased. They've been pulling this same stunt over and over since the 1920s - and now they're preparing to do it again, creating what may be the biggest and most audacious bubble yet.

If you want to understand how we got into this financial crisis, you have to first understand where all the money went - and in order to understand that, you need to understand what Goldman has already gotten away with. It is a history exactly five bubbles long - including last year's strange and seemingly inexplicable spike in the price of oil. There were a lot of losers in each of those bubbles, and in the bailout that followed. But Goldman wasn't one of them.

IF AMERICA IS NOW CIRCLING THE DRAIN, GOLDMAN SACHS HAS FOUND A WAY TO BE THAT DRAIN.

Read the whole article ~here~, or click the link at the top for a PDF file of the original article in Rolling Stone magazine.

kudos to Omnislash

11 comments:

  1. Yep, the Builderburglars might have tipped the money drain..er..train this time, the sheeple are dead broke and there's no more money coming except from our free labor being slaves to these arseholes.

    If we claim to be Freemen, then we ought to behave like them and stand up for our so-called rights not to be slaves.

    ReplyDelete
  2. It's a sad sitch dad, while the sheeple slept, Obama slipped Black Water, (now XE), $70 million bucks to stay in iraq for a while...probably to guard the spiffy embassy there, but that's only part of it. These corporate arseholes still believe that war = $$$.

    From the End of America movie:

    Along with Blackwater and DynCorp, Triple Canopy has had armed operatives deployed in Iraq on a major U.S. government contract since the early stages of the occupation. At one point during this arrangement, Blackwater was responsible for Baghdad (the largest share of the work), DynCorp covered northern Iraq and Triple Canopy southern Iraq. Triple Canopy also worked for KBR and other corporations. As of 2007, Triple Canopy had about 2,000 operatives in Iraq, but only 257 on the State Department contract. However, its new contract, which takes effect May 7, will greatly expand Triple Canopy's government presence in Iraq. (Meanwhile, Blackwater is scheduled to continue to work in Iraq under Obama through its aviation division and in Afghanistan, where it has security and counter-narcotics contracts. It also holds millions of dollars in other U.S. government contracts around the world and in the U.S. In February alone, the Obama administration paid Blackwater nearly $70 million in security contracts.) The Obama administration may have traded Blackwater for Triple Canopy in Iraq, but it is likely that some of Blackwater's operatives, too, will simply jump over to Triple Canopy to keep working as armed security guards for occupation officials.

    ReplyDelete
  3. I'm sorry about your disillusionment about the Obamanator Geez, but I think you saw it coming.

    The only difference between him and Bu$hco is that he's not open about warmongering and empire building/maintenance.

    He just proved I think to a lot of folks who've been paying attention that the banksters do in fact run things. :P

    ReplyDelete
  4. Always the optimist dad. hoping in one hand and crapping in the other.
    Arrgh, have you noticed the price of toilet paper these days? ...G:

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