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To: patron_anejo_por_favor who wrote (188032)	3/3/2009 2:28:38 PM
From: Secret_Agent_Man	Respond to of 306849

Consolidation of the Banks A massive amount of liquidity has been injected into the financial system, from the bailouts but also from pension funds, individual savings, etc. The stated objective of the bank bailout programs is to alleviate the banks' burden of bad debts and non-performing loans. In actuality what is happening is that these massive amounts of money are being used by a handful of institutions to consolidate their position in global banking. The exposure of the banks, largely the result of derivative trade is estimated in the tens of trillions of dollars, to the extent that the amounts and guarantees granted by the Treasury and the Fed will not resolve the crisis. NOR ARE THEY INTENDED TO RESOLVE THE CRISIS. The mainstream media suggests that the banks are being nationalized as a result of TARP, In fact, it is exactly the opposite: the State is being taken over by the banks, the State is being privatized. The establishment of a Worldwide unipolar financial system is part of the broader project of the Wall Street financial elites to establish the contours of a world government. In a bitter irony, the recipients of the bailout under TARP and Obama's proposed 750 billion aid to financial institutions are the creditors of the federal government. The Wall Street banks are the brokers and underwriters of the US public debt, although they hold only a portion of the debt, they transact and trade in US dollar denominated public debt instruments Worldwide. They act as creditors of the US State. They evaluate the creditworthiness of the US government, they rank the public debt through Moody's and Standard and Poor. They control the US Treasury, the Federal Reserve Board and the US Congress. They oversee and dictate fiscal and monetary policy, ensuring that the state acts in their interest. Since the Reagan era, Wall Street dominates most areas of economic and social policy. It sets the budgetary agenda, ensuring the curtailment of social expenditures. Wall Street preaches balanced budgets but the practice has been lobbying for the elimination of corporate taxes, the granting of handouts to corporations, tax write-offs in mergers and acquisitions etc, all of which lead to a spiralling public debt. Circular and Contradictory Relationship The Federal Reserve system is a privately owned central bank. While the Federal Reserve Board is a government body, the process of money creation is controlled by the 12 Federal Reserve Banks, which are privately owned. The shareholders of the Federal Reserve banks (with the New York Federal Reserve Bank playing a dominant role) are among America's most powerful financial institutions. While the Federal Reserve can create money "out of thin air", the multibillion outlays of the Treasury (including the TARP program) will require the emission of public debt in the form of treasury bills and government bonds. US financial institutions oversee the US public debt. They are involved in the sale of treasury bills and government bonds on financial markets in the US and around the World. But they also hold part of the public debt. In this regard, they are the creditors of the US government. Part of this increased public debt required to rescue the banks will be financed or brokered by the same financial institutions which are the object of the bank rescue plan. We are dealing with a pernicious circular relationship. When the banks pressured the Treasury to assist them in the form of a major bank rescue operation, it was understood from the outset that the banks would in turn assist the Treasury in financing the handouts of which they are the recipients. To finance the bank bailout, the Treasury needs to run a massive budget deficit, which in turn requires a staggering increase of the US public debt. Public opinion has been misled. The US government is in a sense financing its own indebtedness: the money granted to the banks is in part financed by borrowing from the banks. The banks lend money to the government and with the money they lend the government, the Treasury finances the bailout. In turn, the banks impose conditionalities on the management of the US public debt. They dictate how the money should be spent. They impose fiscal responsibility, they dictate massive cuts in social expenditures which result in the collapse and/or privatization of public services. They impose the privatization of urban infrastructure, roads, sewer and water systems, public recreational areas, everything is up for privatization. The recipient banks are the beneficiaries as well as the creditors. As creditors, they will oblige the government a) to slash expenditures b) to run up the public debt through the issuing of treasury bills and government bonds. This public debt crisis is all the more serious because the US federal government does not control monetary policy. All public debt operations go through the Federal reserve, which is in charge of monetary policy, acting on behalf of private financial interests. The government as such has no authority over money creation. This means that public debt operations essentially serve the interests of the banks.

To: patron_anejo_por_favor who wrote (188032)	3/3/2009 2:53:25 PM
From: Jim McMannis	Respond to of 306849

lol

To: patron_anejo_por_favor who wrote (188032)	3/3/2009 3:00:24 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 306849

They can't make this stuff up...

To: patron_anejo_por_favor who wrote (188032)	3/3/2009 3:14:48 PM
From: Jim McMannis	Read Replies (2) \| Respond to of 306849

GE seeks government partnership in new economy Conglomerate embraces the new relationship, seeks to profit from it By Christopher Hinton, MarketWatch marketwatch.com NEW YORK (MarketWatch) -- General Electric Co. is reading the tea leaves of the troubled global economy and has found a new partner to help it weather the storm: government. In the new economy, the interaction between government and business will be changed forever, with government as a stronger regulator, an industry policy champion, a financier and key partner, GE GE 7.10, -0.50, -6.6%) Chief Executive Jeff Immelt wrote in a letter to shareholders, published late Monday. In that context, the Fairfield, Conn.-based conglomerate plans to radically downsize its financial arm and capitalize on the strength of its infrastructure businesses, which are set to benefit from new government spending and demand for improved performance and energy efficiency, according to Immelt. To be ready, he said the Dow component has taken "aggressive" actions to roll back costs, restructure financing and raise cash to grow its company, including the sharp reduction of its quarterly dividend announced last week. See full story. "I believed that our diversified portfolio would protect us in all kinds of economic cycles, but we never anticipated a global financial system failure and its continuing economic fallout," Immelt wrote. "Successful companies won't just 'hunker down'; they will seek out the new opportunities," he added. See related MarketWatch First Take Shares of GE fell nearly 6% at last check to $7.15, just above its lowest price on record. Since credit markets seized up in mid-September with the collapse of Lehman Brothers (LEHM.Q:LEHM.Q News , chart , profile , more Last: Delayed quote dataAdd to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: LEHM.Q, , ) , the stock has fallen more than 70%. Immelt is also a member of President Barack Obama's Economic Recovery Advisory Board, along with Caterpillar Inc. (CAT:Caterpillar Inc News , chart , profile , more Last: 22.97+0.80+3.61% 3:13pm 03/03/2009 Delayed quote dataAdd to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: CAT 22.97, +0.80, +3.6%) Chief Executive James Owens. Shrinking GE CapitalThe biggest drag for GE has been its financial arm, GE Capital, which UBS Investment Research said has lost asset value on its real-estate portfolio, is undercapitalized and short on reserves. It's also likely to bring about a credit-rating downgrade sometime in mid-April. See full story. GE isn't the only manufacturer getting bruised by its financial unit. Aerospace and industrial goods provider Textron Corp. (TXT:Textron Inc News , chart , profile , more Last: 4.42-0.01-0.23% 3:13pm 03/03/2009 Delayed quote dataAdd to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: TXT 4.42, -0.01, -0.2%) also has seen its stock bouncing along all-time lows as investors fret a credit downgrade due to the increasing uncertainty at Textron Financial Corp. Read full story. "The financial industry will radically restructure," Immelt said in his letter. "There will be less leverage, fewer competitors and a fundamental repricing of risk. It will remain an important industry, just different." GE will refocus GE Capital to operate as a more focused and smaller segment, with plans to liquidate nonstrategic assets over the next several years, he wrote. "We continue to have a set of strong businesses in core lending to mid-market customers, who benefit from our expertise in energy, aviation and health care; in global consumer lending, including our banking and joint ventures and in real estate." Equipment-services businesses, most of its consumer-mortgage books and a dozen or so small or subscale commercial and consumer platforms will be reduced, Immelt said. "In the past, investors asked me what was our target percentage for earnings contribution from financial services and I said below 50%. Going forward we expect 30% of our earnings to come from financial services." Immelt added that GE provided $48 billion of new loans in the fourth quarter, and plans about $180 billion in 2009. The company is targeting returns in financial services to be about 15%. Infrastructure at the top GE foresees tailwinds for its infrastructure businesses, driven by after-market services, Immelt said. About two-thirds of the company's earnings come from services and there's currently a $121 billion backlog. Aviation alone has a potential of $90 billion in service long-term revenues on the engines shipped in the last three years, according to Immelt. "Our shop visits should grow 20% in 2009, as 40% of our engines have not had their first overhaul," he said. "Our key customers, like Southwest Airlines Inc. (LUV:Southwest Airlines Co. News , chart , profile , more Last: 5.27-0.25-4.53% 3:13pm 03/03/2009 Delayed quote dataAdd to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: LUV 5.27, -0.25, -4.5%) , appreciate our services because they get predictable maintenance costs, improved reliability and increased engine residual value." Another driver is infrastructure work tied to Obama's stimulus package, which seeks to rebuild highways, water systems, electrical grids and make government buildings more energy-efficient. "Governments will invest to stimulate their economies, solve societal problems and create jobs. GE's broad portfolio and expertise position us as a natural partner," Immelt said. Christopher Hinton is a reporter for MarketWatch based in New York.