classical economics
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Obama the New FDR

Boding Ill for America

By Wayne Jett © September 8, 2011
    Barack Obama was in good company choosing Martha’s Vineyard for another elitist-fested vacation as the nation sank further into economic depression. Franklin Delano Roosevelt took an extended Caribbean cruise on Vincent Astor’s yacht in early 1933 and spent quality time with Rockefeller men from the beginning of his years in office. Like F.D.R. 75 years ago, Obama’s personal ebullience indicates a U. S. president whose true economic agenda is precisely on track.
    Roosevelt designed an explicit devaluation of the dollar in 1934, which reduced the dollar’s value relative to gold by 41% without increasing liquidity in the private economy. Obama’s Treasury and the Federal Reserve have devalued the dollar 52% to date without announcing it, while monetizing new federal debt in unprecedented amounts, also without increasing liquidity in the private economy. Though monetary base has been increased many times over, regulatory power of the Fed has drawn all of this gigantic liquidity into Fed-held reserves and kept retail banking dormant.
    George Soros pretends economic wisdom by openly asserting “great depression” is coming, brought on by European monetary and economic collapse.  Obama often blames George W. Bush for U. S. economic problems, but the “European collapse” alibi comes better from Soros (one of Obama’s sponsors). Obama can’t openly predict European collapse, so another voice of the dominant elite speaks on occasion.
The Rise of OneWest Bank
    Soros makes a small pretense that he abhors the oncoming great depression, though likely he enjoys the same sense of personal power he experienced while looting Holocaust victims during World War II. One of Soros’ profitable 2008 ventures, OneWest Bank, is proceeding apace to evict mortgagees, surely to Soros’ joy and profit. 
     OneWest Bank is the entity set up in 2008 by Soros  and two other Wall Street players. One was John Paulson, the hedge fund guy who assisted Goldman Sachs in picking “collateral” to be included in Abacus 2007-AC1, the collateralized debt obligation designed to blow up after sale, and who bet and won bigger than anyone else in the 2008 financial terrorism which destroyed the private mortgage industry and many banks. The third player in OneWest Bank was, and is, J. C. Flowers, former cohort of Henry Paulson Jr. at Goldman Sachs before “Hank” moved to become Treasury secretary and economic czar in July, 2006.
    Then the big mortgage bank IndyMac was seized by Paulson’s regulatory allies. OneWest Bank bought the assets from regulators for a fire-sale price and, in addition, got “sweetener” guarantees against “losses” defined as if OneWest had funded at or near the full principal amounts of mortgage loans. 
No wonder OneWest is eager to foreclose. It collects thousands in profits on the federal guarantee and likely buys the house, again at a fire-price, so as to profit again if monetary inflation drives housing prices up again.
    Don’t be too certain that such a scenario is unlikely in the near future, though some are forecasting further calamity for housing. Federal operatives who seized control of Fannie Mae and Freddie Mac under Hank Paulson's guiding hand are readying the foreclosed properties now owned by those giant entities for sale to the “public.” This is a fairly reliable indicator that housing prices may be preparing for at least a temporary recovery, although not quite yet. No doubt buyers of foreclosed homes from Fannie and Freddie, too, will include operatives of the oligarchs who have orchestrated this looting of middle class capital from the outset.
The Mercantilist Link
    How ironic and tragic to see a protester against OneWest Bank’s treatment of mortgagees dressed in a tee-shirt of the SEIU. Service Employees International Union is the labor organization which has millions of government employees as members. SEIU leadership worked hand-in-glove with Soros-funded organizations to elect Obama as president. Now SEIU supports Obama's crony mercantilist economic policies handed down directly from Wall Street. Ordinary SEIU members are squashed like insects when they get in the way of an oligarch’s money-sucking operations.
    In so many ways, experiences of ordinary Americans under the Obama administration mirror those of “the forgotten” during the presidency of Franklin Delano Roosevelt. F.D.R. was elitist-from-birth, a consummate political actor, who feigned his role as champion of the middle class and poor. Obama is a worse actor better disguised, with an agenda as aggressively elitist as was FDR’s. ~