Letters by a modern St. Ferdinand III about cults

It is no secret if you read the history of 'bubbles' what is the prime moving agent of the economic dislocation. It has always been government. Even Bernie Madoff who stole $13 billion [quite a sum], was financed in large part by easy government leveraging and monetary policy. Zero interest rates, margin accounts, loans of all varieties, houses acting as ATMs – all of this gave Madoff's victims ample access to ready cash and credit. If rates are negative why not invest in the markets ? Sure beats savings rates, bonds, Treasury debt and boring CD notes, all of which pay nothing. Madoff is in jail – why not the politicians and moron-ocrats who are perpetrating the public fraud which is leveraged market levitation ?

If you scam someone privately and are caught you go to jail. But if you do it publicly you don't. So L Ron Gore the eco-whore can fatten himself on tax monies and subsidies for his 'green' energy firms, or carbon trading frauds, can steal public money via his political contacts, and nothing happens. No jail time. Globaloney Warming quacks, parading as scientists, can earn millions in tax dollars for their lies posturing as 'science' and nothing happens. No jail time. Politicians and bureaucrats can spend money, bribe, take money, increase the debt, flood the system with money, incur massive future inflation and bankrupt the state but nothing happens. No jail time.

Justice ? Surely you jest.

If you steal, cheat, lie, or distort and you are a public official, not much will happen to you. As a lying craven and ignorant politician you can generate the entire bankruptcy of a state, and detonate the earnings, wealth and lives of those at your mercy, and you will not be punished. In fact the media will declare you compassionate [all those caring programs for the children's future and health care !]; progressive [but yes you are following the effete homosexual Keynes and you do love the people !]; intellectual [but my you did study at Harvard and talk in sound bites !]; and deeply concerned [see Ted Kennedy's funeral as an example of panegyric lies and propaganda about a corrupt family patriarch whose wealth came from illegal business and mafia relations.]

Politicians and bureaucrats should be in jail for the scam, frauds, and ponzi schemes they manufacture, including the current economic crisis, which has only started. How much wealth will be lost from this latest bubble, set of lies, and government inspired leveraged speculation ? How many jobs are permanently gone and how many futures are now impaired due to the colossal disaster visited upon people around the world, caused by the corruption, the greed and the incompetence of government ?

The current stock market rally is nothing more than the usual government inspired leveraged credit bubble. Get out now before the next downturn which will happen. All parties end with hangovers – this will be no different.

With zero interest rates there is no alternative but to buy stocks. No other vehicle exists to make money. With easy credit, Wall Street can use Federal Reserve money to trade, push up equity prices and 'declare a profit'. This induces funds to reinvest in the market and propels retail investors to partake in the market upsurge. Yet it is clear that the nexus of corruption between Wall Street and Washington is so obvious, entwined and mired in stench, that it is a wonder that Wall Street is not physically relocated to K Street in Washington. After all Wall Street did give the Black Jesus – the most important man or god in history - $40 million in funding in the last year of the election cycle. Irregardless of the Prophet's bank-bashing rhetoric [done only to appease populist revulsion against Wall Street]; the big Finance houses and the Democratic party are married. Until death do they part. Or maybe until the next economic collapse do they part. As one blogger following the scent of corruption so nicely put it:

“The symbiotic bond between our government and Wall Street is so tightly woven, that people go in and out of Wall Street and public sector jobs as if it were a revolving door.  This is our new form of government and at the core is the corporatocracy.  A government bought by Wall Street and for Wall Street.  The interest of the people only comes into question if there is money left over after bonuses.”http://tinyurl.com/yllr925

True enough. The Treasury Department is run by ex-Golden Slacks and Citi-Group directors. The relationship between Wall Street and the Treasury is so tight, it is impossible to differentiate between the two. Both have the same interests, the same self-serving hypocrisy and the same game plan at work. They are married.

The leveraged inspired market bubble currently in train will collapse. Gold, commodities and oil are certain to rise as the US dollar plummets and American bankruptcy – including states like California – becomes more obvious. If you have made some money think of exiting before the crash starts. Taking profits is never a bad idea, especially when all of the true economic signals, are clear that the real economy has nothing in common with the Wall Street-Big Government economy.

The main lesson from the past 10 years of government created bubbles is this: if you want to steal, lie, cheat, take bribes and engage in corruption – be a public official. You won't go to jail.