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Economic Articles from 2020

The Looming Bank Collapse

[Economic]
The Looming Bank Collapse
by Frank Partnoy
Posted July 6, 2020

bank collapse comingAfter months of living with the coronavirus pandemic, American citizens are well aware of the toll it has taken on the economy: broken supply chains, record unemployment, failing small businesses. All of these factors are serious and could mire the United States in a deep, prolonged recession. But there’s another threat to the economy, too. It lurks on the balance sheets of the big banks, and it could be cataclysmic. Imagine if, in addition to all the uncertainty surrounding the pandemic, you woke up one morning to find that the financial sector had collapsed.

You may think that such a crisis is unlikely, with memories of the 2008 crash still so fresh. But banks learned few lessons from that calamity, and new laws intended to keep them from taking on too much risk have failed to do so. As a result, we could be on the precipice of another crash, one different from 2008 less in kind than in degree. This one could be worse. More…

$340 Billion of the $454 Billion that Mnuchin Was to Turn Over to the Fed is Unaccounted For

[Economic] [Justice]
$340 Billion of the $454 Billion that Mnuchin Was to Turn Over to the Fed is Unaccounted For
By Pam Martens and Russ Martens
Posted June 26, 2020

Steven MnuchinThe stimulus bill known as the CARES Act was signed into law by the President on March 27, 2020. It called for “Not more than the sum of $454,000,000,000…shall be available to make loans and loan guarantees to, and other investments in, programs or facilities established by the Board of Governors of the Federal Reserve System for the purpose of providing liquidity to the financial system that supports lending to eligible businesses, States, or municipalities.” In addition, if the Treasury had any of its $46 billion left over that Congress had allotted in the CARES Act to assist airlines or national security businesses, that was to be turned over to the Fed as well.

The CARES Act was passed almost three months ago at the outset of the worst economic upheaval since the Great Depression. One would have thought that the urgency with which Congress acted to pass the legislation would have resulted in rapid deployment of the $454 billion to the Fed to help shore up the economy.

But according to data released this past Thursday by the Federal Reserve, the Treasury has turned over just $114 billion of the $454 billion that was allocated to the Fed by Congress. The Federal Reserve’s weekly balance sheet data release, known as the H.4.1, showed a line item titled “Treasury contributions to credit facilities” and it showed a balance of just $114 billion. More…

Global Capitalism, “World Government” and the Corona Crisis – When the Lie Becomes the Truth There is No Moving Backwards

[Economic]
Global Capitalism, “World Government” and the Corona Crisis – When the Lie Becomes the Truth There is No Moving Backwards
By Prof Michel Chossudovsky
Posted June 20, 2020

the Covid response is economic warfareThe World is being misled concerning the causes and consequences of the corona crisis.

The COVID-19 crisis is marked by a public health “emergency” under WHO auspices which is being used as a pretext and a justification to triggering a Worldwide process of economic, social and political restructuring.

Social engineering is being applied. Governments are pressured into extending the lockdown, despite its devastating economic and social consequences.

What is happening is unprecedented in World history.

Prominent scientists support the lockdown without batting an eyelid, as a “solution” to a global health emergency. The closing down of national economies applied Worldwide will inevitably result in poverty, mass unemployment and an increase in mortality. It’s an act of economic warfare. More…

This Is Why We Are Facing A 6 Week Countdown To Immense Economic Despair

[Economic]
This Is Why We Are Facing A 6 Week Countdown To Immense Economic Despair
by Michael Snyder
Posted June 17, 2020

economoic problems aheadMany of the emergency economic measures that were put into place to support the American people financially throughout this pandemic are about to disappear, and that means that big trouble is on the horizon. Right now, we are in the midst of the deepest economic downturn since the Great Depression of the 1930s.

Economic activity has fallen dramatically, more than 100,000 businesses have permanently closed, and more than 44 million Americans have lost a job so far in 2020. But up to this point most Americans are not feeling too much economic pain thanks to unprecedented intervention by the federal government. Unfortunately, that short-term boost of artificial relief is about to wear off, and that is going to cause some major problems as we approach the end of this calendar year. More…

Another Bank Bailout Under Cover of a Virus

[Economic]
Another Bank Bailout Under Cover of a Virus
by Ellen Brown
Posted June 13, 2020

bail-in will  replace bail-outWhen the Dodd Frank Act was passed in 2010, President Obama triumphantly declared, “No more bailouts!” But what the Act actually said was that the next time the banks failed, they would be subject to “bail ins”—the funds of their creditors, including their large depositors, would be tapped to cover their bad loans.

When bail-ins were tried in Europe, however, the results were disastrous.

Many economists in the US and Europe argued that the next time the banks failed, they should be nationalized—taken over by the government as public utilities. But that opportunity was lost when, in September 2019 and again in March 2020, Wall Street banks were quietly bailed out from a liquidity crisis in the repo market that could otherwise have bankrupted them. There was no bail-in of private funds, no heated congressional debate, and no public vote. It was all done unilaterally by unelected bureaucrats at the Federal Reserve. More…

Congress Sets Up Taxpayers to Eat $454 Billion of Wall Street’s Losses. Where Is the Outrage?

[Economic][Political]
Congress Sets Up Taxpayers to Eat $454 Billion of Wall Street’s Losses. Where Is the Outrage?
By Pam Martens and Russ Martens
Posted June 4, 2020

Larry KudlowBeginning on March 24 of this year, Larry Kudlow, the White House Economic Advisor, began to roll out the most deviously designed bailout of Wall Street in the history of America. After the Federal Reserve’s secret $29 trillion bailout of Wall Street from 2007 to 2010, and the exposure of that by a government audit and in-depth report by the Levy Economics Institute in 2011, Kudlow was going to have to come up with a brilliant strategy to sell another multi-trillion-dollar Wall Street bailout to the American people.

The scheme was brilliant (in an evil genius sort of way) and audacious in employing an Orwellian form of reverse-speak. The plan to bail out Wall Street would be sold to the American people as a rescue of “Main Street.” It was critical, however, that all of the officials speaking to the media repeat the words “Main Street” over and over. More…

Cash is Trash, Especially for the Post-COVID World

[Economic]
Cash is Trash, Especially for the Post-COVID World
by Tom Luongo
Posted June 2, 2020

dangers of a cashless societyThere’s been a concerted effort recently among the oligarchs I like to call The Davos Crowd to demonize cash. From hedge fund manager Ray Dalio pronouncing ‘Cash is trash’ earlier this year to the fear-mongering surrounding COVID-19 making people fearful of dealing in cash because it might be tainted the anti-cash rhetoric has been amped up to eleven. And it’s been no secret that the elite of the world want us to stop transacting in cash because it is something they can’t track.

the reality is that the push for removing cash from society is to put all of our financial dealings in databases which gives authorities a record of everything you do. As governments around the world become increasingly bankrupt they naturally look for ways to improve tax compliance as well as create profiles of anyone they deem a threat to their continued existence.

That’s the real reason for why ‘cash is trash’ to authorities. And the moves towards digital only versions of national currencies is an extension of the power grab currently underway as a response to the crisis of COVID-19. More…

Ten Things You Can Do Now to Curb Wall Street’s Wealth Transfer System

[Economic][Politics]
Ten Things You Can Do Now to Curb Wall Street’s Wealth Transfer System
By Pam Martens and Russ Martens
Posted May 31, 2020

Clinton laughing up dismantling of Glass-StegallBoth then (1932 Great Depression) and now Wall Street had ceased to be a prudent allocator of capital to worthy enterprises and had become an institutionalized wealth transfer system to the top 1 percent.

The January 21, 2010 Supreme Court decision to allow corporations to have staggering financial influence in our elections (Citizens United v. Federal Election Commission) should send a bone chilling message. Help is not on the way. The end game of this massive wealth concentration is economic misery for the 99 percent and multiple generations who will look back on us as their feckless ancestors who couldn’t stop the Wall Street greed machine from destroying a 244-year old democracy.

Below we offer ten ideas to get started on the first course of taming the Wall Street beast. More…

David Stockman on the Destruction of the Financial Markets and What it Means for You

[Economic]
David Stockman on the Destruction of the Financial Markets and What it Means for You
by David Stockman
Posted May 25, 2020

the bailouts did not reform the systemOverwhelmingly, 90% of the households in America have been told that they’re the Energizer spending bunny of American economics, and if you don’t have enough wages this week, borrow some money on your credit card and just keep on spending.

This has created a hand-to-mouth economy that has no immunities—if you want to use that metaphor in an economic sense. It cannot cope, and it has no antibodies to fight back against the interruption of paychecks and cash flow.

There is going to be broken furniture everywhere as it filters through an economy that is sitting with $74 trillion of public and private debt on its back. That’s how much we have today.

People need to focus on this fact, that we thought we had a warning back when the great financial crisis occurred in 2008 when Lehman Brothers went bankrupt, the Great Recession, all that. More…

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Quotable Sayings

billionaires don't EARN money, they MAKE money

You do not become a billionaire through labor. You become a billionaire through inheritance, corruption or economic rents – or, in most cases, some mixture of all three.

Grace Blakeley

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same puppet master pulling strings on both sides

Mainstream American liberals think they’re clear-eyed because they can see the propaganda strings being pulled by Fox and Donald Trump, and mainstream American conservatives think they’re clear-eyed because they can see the propaganda strings being pulled by MSNBC and the Democrats, but the propaganda strings on both trace back to the same puppet master. And seeing that is just the beginning.

Caitlin Johnstone

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discover your infinite worth

You alone are the judge of your worth and your goal is to discover infinite worth in yourself, no matter what anyone else thinks.

Deepak Chopra

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main stream media propaganda

It is obvious that the US government is destroying Assange to signal to journalists the consequences of publishing information. It is therefore also obvious that any journalist who fails to use whatever platform they have to speak out against Assange’s persecution has no intention of ever publishing anything that the US government doesn’t want published. Their silence on or support for what is being done to this man can and should be taken as an admission that they are nothing other than state propagandists.

Caitlin Johnstone

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truth is treason in an empire of lies

It’s quite fitting that the – imperially pre-determined – judicial fate of Julian Assange is being played out in Britain, the home of George Orwell.

Pepe Escobar

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More Quotable Sayings

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The Shocking Truth about Our Money System and How We Can Break Free!

This site is designed for people who wish to follow important events, but do not have time to do a lot of reading. If you follow this site for a period of time, the daily fresh stories in different categories will over time provide you with an understanding of the “big picture” by showing you both the problems and the solutions. Hopefully this will inspire you to listen to your inner wisdom and become part of the solution.