By Ronald M. George and William J. Taylor
June 3, 2014
The characters and their counterparts:
NBA Federal Reserve
|Commissioner & the league office
||Chairperson & the FOMC
||The Banksters (GS, JPM, C, BAC, AIG, GE, et al)
||We the People
If, as Charles Dudley Warner once scribed, “politics makes strange bedfellows” then as we assert “coerced circumstances make for unexpected consequences”. The motion of such colloquial expressions tends to be circular like a dog chasing his tail. The sequence usually ends by spiraling out of control when the dog’s plight knocks over a lamp which provides a spark that jumps upon a curtain which bursts into flames that burns the whole house of cards down.
>Donald Sterling, however you may feel about the billionaire one-percenter, lit the torch on his sports empire when he was “caught” uttering grossly disturbing diatribes in the heat of passion perhaps reflecting his inner-self. Players, coaches, sponsors and whatever fans he had left to the LA Clippers were about to embark on a mass exodus. The team value would have plummeted to the value of a trophy available at Sports Authority in a New York minute. Fittingly, New York came to the rescue in the form of the NBA. Newly appointed Commissioner Adam Silver and his brilliant league office colleagues forced Sterling to sell the team and banned him from attending any NBA games least he does so from the intimacy of his home theatre.
The woeful team goes on the selling blocks; the players stay, the coach’s coach and the sponsors cheer in politically correct unison while “Steve the Conqueror” writes a check for $2 billion for an otherwise $2 million asset if the NBA let the house on fire burn. Sterling leaves through the back door tripping on his good fortune and promising to sue the NBA until they regress into a software package running on an Atari.
In the end, who pays for this brilliant decision by NBA commissioner Silver and his blundering charlatan think tank? Not the players as they continue to receive their stratospheric salaries to run up and down a gym floor calling each other names that would even embarrass the Grand High Exalted Sterling. Not the coaches either as they also continue cashing checks with several zeroes after the first digit for crafting the artistic ability to draw an “x” or “o” while dressed in Armani’s. Not even the sponsors where dinged by this rage against the machine as they haven’t missed a beat to sell their products on television, in the print media, on mobile ads, social media and everywhere else they can find … a fan! Oh, the last one standing at the end of the game … the fan. To whom Silver’s gestapo was looking out for all along, the fan. And of course now that Ballmer has overpaid for the franchise by a factor of ten, who will pay for the highly probable increase in ticket costs … yes, you guessed the price is right; give me “fan for three hundred please”!
Is the carnage to the fan done yet? Who do you think will pay for yet another unintended consequence, when and if, the NBA loses the lawsuit promulgated by Plaintiff Sterling alleging $1 billion in damages? Think it will be the owners? That would be a fan-tasy.
It was the best of times; it might be the worst of times for the NBA. But the “Dickens” you say, what about the Tale of the blundering Fed? Can there be any resemblance to the NBA fiasco? We’ll let you decide …
The banksters; Lloyd Blankfein and Goldman Sachs; Jamie Dimon along with JP Morgan; Vikram Pandit and Citibank; Ken Lewis of Bank of America; Hank Greenberg and AIG; Jeffery Immelt of General Electric; and the hordes of other like-minded thieves and fraudsters involved with mortgage lending, credit ratings, the creating, buying and selling of mortgage derivatives nearly imploded the western fiat fractional reserve banking system in a matter of months. Sadly, it would have been the best thing to have happened as the capitalistic forces of creative destruction would have rendered these criminals their deserved penance; bankruptcy, disgrace, criminal indictments, jail, loss of personal and family fortunes to be repaid to their victims that the British sarcastically refer to as Punters.
If nature’s path would have been left unaltered, the storm’s path could have certainly caused more damage but in the end the playing field would have been level. But no, in a fever pitch that the desperately nervous US Secretary of the Treasury, Hank Paulsen sold to a wide-eyed Congress on three hysterically written pages, a bailout of the banksters was underway and financial markets would be forever different in the times to come.
Least no one forget that Paulsen was the predecessor of Blankfein at Goldman and the culmination of a long lineage of Goldman implants controlling the bloodstream of the American economy and the once mighty dollar (that is before the Goldman clan seized domination). Paulsen’s fortune in Goldman Sachs stock was about to be traded on the OTC Bulletin Board; a penny stock with the voice of vocal leper standing in front of an angry mob … the American people.
So where could Paulsen turn but to the “lender of last resort”, the Federal Reserve and relative newcomer chairman Ben Bernanke. This lender, as it turns out, is only a lender of last resort to its brethren in the banking cartel; a resort not attended by the populace of which they serve. A resort so exclusive that even Bernanke had to allow the favored desperadoes a fast track membership approval when it became known that to receive money from Uncle Ben’s printing press you had to be a member, ipso facto, a bank.
Oh and did the printing presses run! Stimulus in the mega billions, money for nothing and trades for free. Junk cars, junk stocks, even if its deadlocks it’s still roll the presses to me. And so helicopter Ben did, just like he promised in his Reminiscences of a Depression Operator; ‘cept he wasn’t there and he ain’t no Jesse Livermore. The Fed printed money until they ran out of things to stimulate, so they began buying paper assets floated by the Treasury under the disguise of a fancy name conjured up in the financial engineering lab at MIT, or the marijuana lab at Stanford where Bernanke was an economics professor; the money printing euphemism was hailed under the banner of quantitative easing or for the lovers of simple acronyms, QE. But even helicopter Ben, whose financial acumen rests at the count of three then jumps to infinity as if bored by the numerical process of holding up fingers, wouldn’t have guessed even he could be so wrong about prognosticating the virtues of Keynesian monetarism, or more specifically the failures thereof. Stuck in hole with a shovel, Bernanke and his band of drunken mariachis had but one thing to do … dig the hole deeper … and deeper.
So again, in the end who will pay for the banksters scam and the Fed’s plan, the banksters? Not a chance, the one-percenters have even more of the pie and thus the inequality that the same central planners (or social engineers) complain about is merely the by-product of their design. Unfortunately, there is a bee-line as to who will pay for the social injustice to all by the US Federal Reserve’s bailout of the banksters. It’s the savers pinching dollars to buy pennies worth of food, fuel and everyday staples for their families; it’s the retiree’s with fixed assets seeking shelter from rising costs and forced to abandon sane behavior from owning risk-adverse investments in favor of insane attempts to reach for yield by owning equities at perhaps the riskiest times of their lives and the markets; it’s the American and global economy drunk on stimulus, addicted to the drug of zero cost money and like an addict needing more to achieve the same unsustainable delusion; it’s the social fabric of our endangered liberties as they succumb to those who enable and reward deceit versus honesty, opaqueness versus transparency, leveraged risk versus principled conservatism, propaganda versus science and political correctness versus the simple truth. We have chosen as a society to avoid the math for the fulfillment of simpler studies; but in the end, “We the People” will not be capable of ignoring the math and the calculus of our financial destiny as the price paid for the actions we allow, and have allowed, of our central planners.
Coerced circumstances make for unintended and unexpected consequences.
The Professional Traders Opinion
Ronald M. George
William J. Taylor