While House and Senate banking committees were debating deregulation, savings and loan PACs reported more than $2 million in contributions to committee members. Which their performance has given so much evidence of…. The only people who didn't know what was going on were the voters. FRED WERTHEIMER: No question about it. (adsbygoogle = window.adsbygoogle || []).push({}); Accurate in the sense of almost entirely destroying the interest rate paid to anyone foolish enough to save in USD. Then there’s the “single-asset” commercial mortgage-backed security (CMBS) backed only by the mortgage of this tower. Contact Us | Now that SS has to properly draw down on its actuarially-proper balance, you will be told that SS is tottering, when it is really that the General Budget and its balance sheet that is tottering as SS funds can’t be hijacked – SS has its own function to fund. Read…  Wow, That Was Fast: Debt Out the Wazoo. Using ad blockers – I totally get why – but want to support the site? pension funds, retired persons, etc., are risk averse, so they may buy bonds because, despite their negative return, as the risk is knowable. Now, look at the soft money. The corporation can go broke but US government cannot go broke. Fairly decent explanation but I think all such explainers should include a statement that all the Treasury-Fed to’ing and fro’ing never adds a single real asset to existence, even as it greatly increases the money supply – therefore devaluing the worth of all existing dollar savings. Steve Pizzo, we know what's on the record. It just does not make any sense to me, but I am going to keep it getting myself. BILL MOYERS: Democratic whip at the time. I think people people question whether you can actually do it. And so it was the public's money being used to influence the public's representatives, all to be paid on a deferred basis. That’s why I listed “They are defending their currency.” as one of the possible reasons. “We’re just shifting away from ETFs to this other form of index.”, “If market functioning continues to improve, then we’re happy to slow or even stop the purchases,” he said. YEP — we have MMT which means deficits don’t matter. "Well, here's what I'd like you to do, though. Thank you for that explanation. It's the dominant party in Washington today, the fund-raising party, and it demands as much time and attention from Congress as running the government. So the S&L really paid for this loan. MMT’ers are big on saying governments can never go bankrupt…. And through the years it has always been, you have to pay to play. One of my favorites: The french assignat. IF wolf permits it, try here: https://www.federalreserve.gov/faqs/currency_12772.htm. The above comments all confirm to me that my decision to amass a fleet of buried shipping containers stuffed with silver and gold ingots was correct. It’s not a clear statement to say SS was buying Treasurys. We see a role for very small private contributions, but you have to understand that the dollar tax check - off today, the public financing system, millions of citizens are checking off one dollar to get a clean system, and that's where this scam of soft money breaks it down. But recording it as taxpayer debt/expanding the deficit? When all is said and done, this is the beginning of the end for the Euro and eventually Dollar because of the quadrillions central banks will need to print to rescue collapsing banks, hedge funds, pensions, insurers and stock markets joined at the hip with the Yen as a ‘safehaven or hedge’. 4 & 5 ) ‘Complex Trades’ are what drives this market, the rate of return is less salient than the leverage to collateralize, and cost of currency derivative insurance. It had not been carefully thought through. INTERVIEWER: But the answer is "No," sir? The SS balance was plugging huge holes in the General Budget for generations. Their currency is pegged to the US Dollar. He said, "Well, my employees don't want to contribute to this guy.". It was about the size of what Philip Morris and Procter & Gamble spent on their advertising.". She didn't let me finish the sentence. We think there can be a role for very - for small private contributions, but public financing is the key. The financial sector with its Congress Lapdogs will do very well with this system. BILL MOYERS: A Justice Department investigation found Fernand St. Germain guilty of - quote - "serious and sustained misconduct," but no charges were ever brought. That likely explains why so many investors continue to hold some. Your pension fund is increasing bond supply on the market by unloading the bonds, so that would tend to raise the interest rate and to lower the face value of the bond on the market through supply and demand (obviously the value doesn’t change at maturity). One more footnote. CHARLES LEWIS, Center for Public Integrity: The most important people in Washington, in this country, entrusted with watching the savings and loan industry, making sure there were not excesses and abuses in terms of improprieties, those regulators came from the industry and they went back to the industry. Congress is now considering more than 30 health care reform bills, many written by the industry itself. It is the General Budget that is out of whack. Who Owns Our Government? Moyers lays out how campaign contributions to key committee members of Congress helped cause the Savings and Loan debacle; how a loophole in the campaign finance law is permitting large cash contributions — so called “soft money” — to undermine the public financing of presidential campaigns; and how special interest money from the $700 billion health care industry is being used to undermine health care reform. Everything is cloaked in reform. No luck. [onscreen: American Medical Association, $11,944,307; National Association of Life Underwriters, $5,554,939; American Dental Association, $4,034,298; American Academy of Ophthalmology, $1,900,561; American Hospital Association, $1,771,307; American Family Corporation, $1,696,850; American Optometric Association, $1,354,496; American Nurses Association, $1,320,179; American Podiatric Medical Association, $1,110,425; American Health Care Association, $1,026,011; Federation of American Health Systems, $934,709; Travelers Corporation, $891,817; Prudential Insurance Company of America, $827,957; American Chiropractic Association, $823,740; Metropolitan Life Insurance Company, $810,356; Pfizer, Inc., $803,634; Abbott Laboratories, $761,449; Torchmark Corporation, $729,040; CIGNA Corporation, $719,049; Bristol-Meyers Squibb Company; $690,176; Eli Lilly and Company, $669,834; Massachusetts Mutual Life Insurance Company, $666,898; Health Insurance Association of America, $583,274; Blue Cross and Blue Shield, $574,918]. The US Dollar will lose value soon. [interviewing} People have made rather serious allegations. You may not “run out of currency”, but you definitely cannot “fund your government” when no one accepts the currency because it’s worthless. Energy Corporations do business, get profits and pay the interest. It will take the US sheeple a long time to figure out they are being screwed even while living a decreasing standard of living. I'm not opposed to that. Constituents don't travel from Ohio or from Oklahoma or from Tennessee to Washington very often, whereas the PAC people are here all the time. Wolf, awhile back, you were pretty harsh with a contributor who was pushing modern monetary theory like a religion. STEPHEN P. PIZZO, Author, "Inside Job": No. A loan is a single debt, owed by one entity to another. I don't think that - you know, the check-off is OK. I don’t even understand what happens when the FED buys a Treasury. Ex. But does that really happen much now, or do the corporate shells simply move around as assets while the debts are transferred onto the backs of the public in one form or another? But, as Wolf notes, the U.S. government just printed $1.56 trillion in March and April. If at zero interest there is no demand for treasuries the price would have to drop to entice buyers, this gives you negative rates which the fed does not want. The anger is not. BILL MOYERS: Using real language. As unattractive as the long term prospects are, Treasuries appear to remain worthwhile ballast for a prudently diversified portfolio. Public policy is determined more by campaign contributions than by merit, debate or deliberation. And so what we say in Alabama, the rank and file, the grass roots, "Alabama's government has gone to the dogs. Then both parties joined with the White House in a compact of silence about the true magnitude of the costs. It would seem then that panic is somewhere along our path. And the S&L guy would say, "Well, Jack, you have how many employees for your company? “If it goes the other way, we’ll increase.”. So what to own? Washington with copies of our book and had a meeting with the staff members of the Senate Banking Committee and argued against the logic of bank deregulation. STEPHEN P. PIZZO: Absolutely. Millions of Americans are angry about all this, as Dr. Patton said, but the plunder is organized and championed. By Wolf Richter for WOLF STREET. A human being has a brain capable of carrying out the equivalent of about 10^17 operations per second. When the fed buys treasuries it can be for several reasons. I heard there were a couple of no bid days back in March, don’t really know because I don’t follow the market. This challenge to parental rights is not new. That's it. And to get into it, you're going to have to swim through a wall of water and-. No one owns these bonds for their face value return. ELLEN MILLER: And you know that this is only one example, and it's a good, clear example, but it happens in industry after industry in this country and our soft money contributors represent all of those industries, whether it's the tobacco industry or the agriculture industry. Canadian Government View More. St. Germain is now a private businessman. Without sufficient legal protections or government bodies overseeing this part of the … Central Banks When a seller puts goods or services for sale and you accept the goods or services, a debt is created, and the provider must accept the notes for payment. It’s hilarious that all the debts are becoming “internal” So, what happens if the rates goes negative, and the Fed start to binge on it? Sure, there's room in it for small contributions. Wrong wrong a 1000% just plain false. Who Owns Reserve Banks? This can also be thought of as oversupply. This is easy. "Don't worry. Therefore everyone possesses the equivalent of 1,000,000 $1000 laptops and so is literally a billionaire. Before the crisis Fed was opening up REPO for hedge funds, and dollar swap lines. 10^17/10^11=10^6. Despite his promise to give his remaining campaign contributions to charity when he left Congress, earlier this year St. Germain sent this letter to the clerk of the House. NARRATOR: Charles Keating may turn out to be the biggest bank robber in American history. Everything is covered. If the Fed has to print to buy the treasuries off the primary dealers, where do the primary dealers (banks) get the dollars from to purchase the treasuries initially. What I think is happening is that the public, and we see this in poll after poll in this election year, is becoming much more aware of the specific influence of vested interest money in campaigns. Not sure such a small state can have much influence on world markets. NARRATOR: -for the signing of the Garn-St. Germain bill. BILL MOYERS: Let's say there is anger out there. NARRATOR: They have been correlating F.E.C. Talk about a snake eating its own tail. And then in complete changes of governmental systems quickly followed by war. It was only three weeks after George Bush won election as president of the United States that Danny Wall went to Congress and said, "Gentlemen, we've got a problem. This unloading of US Treasury debt by foreign entities comes as the US government is borrowing vast amounts, at a rate of $1 trillion every four to six weeks. BILL MOYERS: They do. BTW, this happened to me last week. INTERVIEWER: So it became almost impossible to tell who the regulators were and who the regulated were? BILL MOYERS: Thank you for Inside Job, a book we all should be reading. The crime you refer to have not been committed by those you refer to. VICKI KEMPER, Common Cause: What's best for the country, what is most efficient, is not the primary goal in this system. Some people have questioned my concern over both the CDC and John Hopkins University is a PRIVATE organization where the CDC accepts private funding – NOT ONLY GOVERNMENT! Everyone knows what's going on. This meant now that much more money would be coming into S&L's that they could speculate with and there would be Uncle Sam backing it up. Absolutely, and I urge everyone to send me their worthless dollars. BTW…”This Note Is Legal Tender For All Debts, Public And Private” emphasizes that this is only for existing debt…it does not specify that you can demand to use it for any new purchasing nor force anyone to take it…it is an Achilles Heel for the public holding them and an escape clause for the bankers who seek ways around the Constitutional provision of one money system. This will be the catalyst I believe for a major Dollar short squeeze as Japan’s wealthy pour into USD, US stocks, US real estate, Gold and yes even Bitcoin ala Pacific Ocean thru a garden hose. You collect them and you bring them to me. "I was told to install regular bathtubs in these condominiums we were building, but to bill, to invoice the S&L for jacuzzi tubs that were about $900 more." House and Senate leadership averaged more than $250,000. By. The debt ceiling is the cap that is set … Charles Keating, who cost us $2 billion in taxpayer money, was on that list. When we talk on this site about inflating away Joe Bag-o-Donuts’ life earnings (and savings) via production of excess treasuries and Fed’s purchase of those treasuries, it is infuriating. I said, you know, "Don't do this, guys. STEPHEN P. PIZZO: Sure, because during that period of time, Keating was trying very hard - the regulators had been a problem for him. sold out to asian markets each and every thing possible 92-2008,,, and it may become clearer in future that that selling out has continued right up to today. There was nobody during that campaign, Democrats or Republicans, who wanted the taxpayers to know what a mess this was, so they both conspired and George Bush put a new head to the Federal Home Loan Bank Board in Danny Wall, who went for 10 months before Congress and lied to them consistently about the cost of this. Somebody has to buy the debt we keep creating, at an interest rate we can afford, and that somebody is the fed. No such thing as complete 100% accuracy about anything. If we go out there and say "This is not a difficult thing. [also Gildenhorn, Switzerland; Wilkins, Netherlands; Hostler, Bahrain}. NARRATOR: - Congress mostly talks, the administration tinkers and the lobbyists hover. The Congressman or Senator who got the checks certainly knew that because it was being handed to him or her by this S&L person. Prosecutors charge he stole more than $2 billion from Lincoln and he knew every dime of it was yours. It may be the buy-sell spread rather than a percentage commission. They loaded up with an additional $948 billion in April and brought their total holdings to $7.24 trillion, which makes them the largest holder of US Treasury securities. Nowadays you can’t. CHARLES KEATING: Out here we have the secretarial bay. Money is just a representative overlay of real assets – printing it does not magically create new real assets. (The Fed is a “customer.”). Eu, Yen, Yuan, Ruble? My USD holdings spiked nicely as the NZD crashed to 55 cents vs USD…. Long-term heat death for Japan = Greece 2.0. These are always going to be approximations (too many constantly changing variables are involved) but directionally and with decent accuracy these rules should hold. BILL MOYERS: But why do you think the scandals so far, that we've just seen bare surfaces of, have gone down - been swallowed so lamely by most of us? It really depends on who the money would be going to…it’s PAYGO for the peons, and since the hole keeps getting deeper and deeper, no soup for you! I’ve been told that that’s the ultimate investing secret. Is there a report that is meaningful? They only create “schemes” like the UK that eventually end up in staggered bankruptcies over time. Who Owns the Federal Reserve? There will always be those interested in taxing the rich. MOst of the financial gurus that are pushing gold – r either stupid, stubborn or are just fucking idiots but they keep insisting the FED balance sheet matters. NARRATOR: And there will be plenty of health care money for members who vote the right way. In misery, ruin and bankruptcy. Think a lot of confusion on MMT, IMO. still doesn't know how much he really gave, but we now know that Bob Mosbacher gave at least $100,000. Let's just take one example from your show. We probably need to see how the allocation matches in equities, where foreign ownership is declining. Foreign investors – including central banks, governments, companies, funds, and individuals – shed $44 billion of US Treasury securities in April, compared to March, according to the Treasury Department Monday afternoon. 'We would welcome a discussion with anyone who owns intellectual property, if that is Harold Thomas or the Federal Government.' (7) Will the US become a relative pariah like Argentina at some point? These powers have been recognized in a long line of U.S. Supreme Court decisions. This map is a first attempt to display major landowners in England, combining public data with Freedom of Information requests. Foreign: $6.81 trillion (in July 2020, Japan owned $1.29 trillion and China owned $1.07 trillion of U.S. debt, which is more than a third of foreign holdings); Federal Reserve and government: $10.16 trillion (June 2020) Mutual funds: $2.5 trillion Private economists were saying this is at least $100 million. President Bush nominated Joy to be ambassador to Barbados, but she was blocked by the Senate because she has no college education or work experience. Who knows? NARRATOR: Team 100 member Joy Silverman is the wife of Ply-Gem Industries head Jeffrey Silverman. Why? In the middle of the night at a private meeting between House and Senate negotiators, the amount was raised to $100,000 at the insistence of Freddy St. Germain. Click on the beer and iced-tea mug to find out how: Would you like to be notified via email when WOLF STREET publishes a new article? And she said, "Now, just who do you have in mind that'd be willing to pay against it?". No one in DC has ever had to remotely “function” in the economic world their grotesque incompetence has made inevitable. The U.S. Department of Education owns about 92 percent of the $1.6 trillion in U.S. student loans and many legal scholars say the Department has the authority to … This is how the deficit is covered. The government "of the people, by the people, and for the people," as described by Abraham Lincoln, is not serving the interests of the people. I didn’t mean negative rates in my comment, I meant higher rates. “rather than show any amount of spending restraint.”. What can go wrong? It solves the problem of the G’s gross incompetence by essentially seizing the value of citizens’ accumulated savings. Agree with you SO much on this Cas,, It goes to both the Democrats and the Republicans and so all of them have become really the party of this elite who fund these campaigns. It would be hilarious if the yield goes negative, followed by treasury, and the Feds buys the stuff. Wolf: I guess this is an obvious question, but I suppose the Fed buys through dealers to keep arm’s length, and the dealers get a commission for their trouble? He gave 60 state representatives out of 105 representatives campaign contributions - one person, $640,000. Yes, that’s his job…make the market go up! Not deficit contributor, federal spending contributor, please get it right. Dr. GWENDOLYN M. PATTON, Working Group on Electoral Democracy: Well, as a youngster I was very much a part of the voting rights struggle with my family and my relatives and grass roots people all over the South. But the pileup of the US national debt continues. Jobs In a very real way, fiat governments are empowered to seize control of their citizens wealth in pursuit of the G’s macro economic goals, right or wrong…regardless of any property protections citizens may appear to have. Would you consider answering them for us? And we really thought that the vote would be the true equalizer. I appreciate it immensely. Final Thoughts on Who Owns My Student Loans? As of July 8, 2016, the federal government owned approximately $1 trillion in outstanding consumer debt, per data compiled by … You have people like Tony Coelho, who—. This is a swimming pool and all this area here is a swimming pool. ", FRED WERTHEIMER: Can I pick up on one point here? Sometimes there is nothing you can do, from a private sector pov. MMT is horse manure. And I believe if we demand it, we can do it. An alert CBS News crew caught these members arriving for a quiet little White House dinner last October. It's not - it's more akin to a thousand smoldering cigars than it is to the smoking gun that we had in Watergate. Our political leaders have shut their eyes to the corruption of our system, brought on by their obeisance to money, and they do their best to keep us in the dark about their worst. Commercial Property There was a hearing on S&L's where a key regulator, Bill Black, was going to testify about the fraud and St. Germain canceled the hearing rather than let his testimony be public. GWENDOLYN PATTON: As we look back historically to democracy in this country, we learned that democracy, the vote, has never really been an equalizer. He ended up making $12,000 on that. The fed could also be a buyer when nobody else is buying, no demand, or they could be buying to keep the interest rate stable. Two hundred and forty-nine Bush supporters gave over $100,000 in soft money to the 1988 Bush campaign. And business debts spike to high heaven. And members say, ''Well, why should I do that? The Federal Reserve is an independent entity established by the Federal Reserve Act of 1913. Imagine if the “identitarians” so caught up in identity politics yelling at each other in the streets and social media could spend just a few moments on this site educating themselves. BILL MOYERS: Thank you very much, Ellen Miller, Fred Wertheimer and Gwendolyn Patton. To Him and his legacy or endless spending. That is because fiat gvts can always dilute the existing money/real asset ratio at will, to whatever extent it sees fit. It was the taxpayers'. We need your help with this. Here he is, Mosbacher Energy Company, Houston, Texas. People wait two hours or more just to make sure they get a good seat for the most important show in town, today's hearing in the House Ways and Means Committee. If a lawyer who had a case before a judge walked in and handed that judge a $5,000 check, we would say that's bribery and send the lawyer to jail. I'm Bill Moyers. Hoist with his own petard. The mongols, the romans, the germans, etc. These entities fall into five broad categories: Foreign holders; the Fed; the US government’s pension funds and Social Security Trust Fund; US commercial banks; and finally the motley collection of other US institutions such as bond funds, insurance companies, cash-rich corporations such as Apple, highly leveraged hedge funds with complex trades involving Treasuries, and individual investors needing to park some money. Why is it when you and I borrow money it’s called a loan but when the government borrows it’s called a bond? Their researchers took a close look at the Bush Team 100 to see if those big contributions paid any dividends. I want to say in the most forceful way that I can, I certainly hope so. I mean, at least until you understand what you've done to the S&L's." Do I understand correctly that Treasury is giving away what it does not have? The next 10 major holders are mostly tax havens and financial centers, including the UK (City of London financial center), Belgium (home to Euroclear), and Ireland where many US corporations, including Apple, have mailbox entities where they register part of their global profits to dodge taxes in the US, which results in some of their US Treasury holdings being held in entities in Ireland. Soon the service of National debt (26 T and growing) will be competing with defense and other social spending! Saudi dumping their holdings can either mean: I mean, that's a crock. officials either came from the industry or they went back to the industry. _______________________________. Get with the program man. Put the money where you're going to get most for your buck. Did you ever ask me for a raise? He alone received nearly $150,000 from S&L PACs in just the first five years of deregulation. Just stocks? US government funds – including the Social Security Trust Fund and pension funds for federal civilian employees and the military – dumped $91 billion in Treasuries in April, whittling down their total holdings to $5.9 trillion. But the National Association of Life Underwriters bet $3,000 on Republican Trudy Coxe. Its major contribution is to simplify the operations involved by removing layers of bureaucracy from the description. The sitting corporate board of Guvco can always vote to change the value of a metal so you get less bang (ounces) for your buck. “The Internal Revenue Service was necessary to collect the interest on the public debt created by the recently created Federal Reserve Act.”.

who owns the government

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