Ten years ago this month, I was furiously studying American and economic history, hoping to discover how things had gone so wrong. I'd just retired my medical and DEA licenses in August, 2007. The hypocrisy of the system, along with the stubborn resistance to change, made it impossible for me to pretend I was doing any good within the field of psychiatry. It seemed psychiatrists were as deluded as the government and public about the appropriate role of psychiatry in the social insanity we have convinced ourselves is normal.
Now, in 2017, we are seeing an avalanche of consequences that began long ago, with empire-building conquerors--like Julius Caesar and Alexander the Great--and the attitude that might makes right. A common denominator is the use of other people's money, support, and trust to suppress or subdue the "others," or to kill them off.
Recently, I've begun to wonder why it is considered acceptable for the government to do what individuals are not allowed to do. Government is allowed to create money out of thin air and spend like there's no tomorrow. Considering what it's spending on--like war--it may guarantee there is no tomorrow, so the debt will never need to be repaid. The government can justify murder in war and other situations when "national security" is presumed to be threatened, but murder by individuals is a heinous crime. Why the discrepancy? This hypocrisy, built into our social system, represents a duplicitous set of values that deserves a closer look.
The following excerpts from my November, 2007 journal suggest the upcoming financial meltdown was well underway before the public realized what was happening. At that time, I was also reading books like The Creature from Jekyll Island: A Second Look at the Federal Reserve, by G. Edward Griffin, and The Robber Barons, by Matthew Josephson, among others, as well as a variety of newspapers and magazines on current events and economic trends.
CURRENT EVENTS: ECONOMICS
ON STRUCTURED INVESTMENT VEHICLES
Thursday, November 1, 2007 – The financial balloon is bursting. The so-called “structured investment vehicles” or “SIVs” are caving in. These are bundled securities packed to the gills with bad debt, probably a lot more than good debt, and it is money backed by money backed by money, and maybe a few tangible assets way down the line. Those unlucky subprime mortgage borrowers were led into the debt trap unawares by bankers who abdicated their fiduciary duties by selling loans they knew the borrowers couldn’t afford.
Of course the lenders weren’t selling homes, which is what people thought they were buying. Realtors, developers, lawyers, local governments and bankers were selling mortgages, in the most unsavory and predatory of ways, and they deserve to suffer for the betrayal.
THE FED AND MONEY
Thursday, November 1, 2007 – Wachovia-Visa cancelled my card, as I requested, and removed the late charge and finance fee. Good for them. Unfortunately, I can’t change my website to acknowledge this pitiful concession, since the site access problem began right after I uploaded the Spotlight Therapy page about Wachovia-Visa and the Fed.
Oh well. The Fed was forced to lower interest rates yesterday, to “stabilize the economy.” Poor Fed. Citibank is the most strung out on SIVs, something like one-third of the market. They are worried profits will go down.
But true to G. Edward Griffin’s explanation in The Creature from Jekyll Island, the Fed created a few billion dollars to bail out Citibank’s investors and shareholders long enough for them to unload the baggage on some other sucker. If these SIVs are traded down enough times, they may come closer to their true value.
This is a banker’s crisis, nothing more. Their house of cards is caving in, and they are left naked and shamefaced, Adam without so much as a fig leaf for cover.
To imagine that these clowns have any control over anything when they have so little self-control is ludicrous. That they have gotten away with it for so long is the amazing part.
Nations and individuals in debt are not free. But people haven't been ready to be free. I wonder about the Native American cultures the Europeans trampled, or any peace-loving cultures that were self-contained and unprepared for the European invasion. They didn’t understand greed, except in individual, limited cases. The Europeans and their descendants exploited tribal cultures’ trust and gullibility over and over, or obliterated anyone who stood in their way. The African cultures, too, by British, French, and Dutch, and of course the Romans before them.
I don’t believe blacks are naturally aggressive people, just as rural dwellers aren’t. The natives get restless when their quarters are overrun, their survival threatened, their choices restricted, their dignity insulted.
G. Edward Griffin seems afraid of the implications of his research. He says abolish the Fed without much conviction that it will happen.
The idea that anyone can truly control the money supply is silly. If you need something and it is available, anything the seller considers of equal value becomes money. To assume that government deserves a whit of that is ridiculous. Bottom line is the concept of money is a huge government scam to fund itself.
Sunday, November 4, 2007 - We ought to sell government futures on the commodities market. I wouldn’t invest a zinc penny, but if others believe the government has a future, they can throw in a few trillion electronic dollars to pay for it.
THE DOLLAR’S RELATIVE VALUE
Thursday, November 8, 2007 – The dollar has lost ground against the euro, but no one reports what’s happening vis a vis the yen. The euro is just as unstable as the dollar but has more credibility because it is new and untested. The reason for the change in relative value is the Fed is lowering interest rates without really admitting it, a point last month, another ¼ point last week. No one says this is the equivalent of devaluing the currency when it is debt-backed, but it was the Fed’s tampering that reduced the dollar’s value in Europe.
It’s potentially a good thing, says the Associated Press. Europeans may want to visit the US and spend money. Americans may find their dollars don’t go so far in other countries.
Imports are more expensive, exports more easily sold. Good for “the economy” if we were importing anything of value or exporting anything we don’t need ourselves.
But of course, we’re not. We are exporting the good stuff and importing junk, and American taxpayers are paying through the nose for the blow job. Blowing money, that is.