Wall Street WARZONE
Goldman Conspiracy’s “Moral Pathology:” Deadly Virus Attacking Capitalism, Democracy & Middle Class Values. Warning, Goldman’s “War on America” Will Collapse the Entire Economy & Markets by 2020 … Worse Than 2000 & 2008!
by Paul B Farrell, JD, PhD
| Discuss | | 2/8/2011

Warning, the “Goldman Conspiracy” is quietly accelerating its efforts to destroy the American economy by the end of this decade. Read Peter S Goodman’s article on HuffPost. In “Don’t Believe Goldman,” he warns of a “report from Goldman’s Investment Strategy Group” that “dismisses suggestions that the American economy might yet confront substantial problems.” Translation: Goldman is hyping another bull run into a bad economy.

The Goldman report is titled “The U.S. Will Not Face a ‘Lost Decade,’” and has a “subheading in the report, which later calls the odds of that prospect ‘very remote indeed’.” But then Goodman adds: “the words at the top of Goldman’s report, ‘Stay the Course’ amount to a threat for the rest of the nation. The course is untenable. For most people, it leads to credit card debt, ulcer medication and, perhaps, bankruptcy.” As Suzanne McGee says in her book about Goldman. “they’ll take us to the brink again.” Except this time Wall Street will take us over the cliff with them.

The new Goldman Report sounds like they’re trying shoot down my recent 1o annual predictions for the decade, 2011-2020: “America’s 10 Worst Years Start Right Now.” If you really want to learn how bad Goldman is for the American economy, democracy and capitalism, read both of these columns.

The bottom line is simple folks … the Goldman Conspiracy is afraid American investors won’t jump on the new bull market bandwagon that they’re hyping … won’t jump in and start betting at the Wall Street casinos … won’t help Wall Street blow another too-big-to-fail bubble … won’t get suckered into their runup to the next meltdown. Yes folks, Goldman’s worried America is catching on to their congame. If you want more investigative background on the toxic “moral hazard” that the Goldman Report is spreading across America, here are ten of my MarketWatch columns on the “Goldman Conspiracy” from recent years.

Goldman’s secret moral pathology: 15 symptoms of Wall Street disease killing democracy & capitalism
Goldman Conspiracy helping China defeat USA: By 2040, China’s the new global super-economy rules
6 reasons Goldman Conspiracy must kill reforms: derivatives-bonus culture needs Reaganomics to survive
Goldman’s Reaganomics vs Obama: Kill Dodd’s reforms & set up Wall Street’s 2012 Meltdown
Goldman’s new dream-inception technology: Inside “Brother Lloyd’s” brain, laws from “God is My Broker”
Goldman’s new American Socialism Manifesto: 8 ways ‘The Conspiracy’ is destroying American democracy
Goldman Conspiracy, Bogle’s ‘pathological mutation: Wall Street & Washington inspire 13-episode TV plot
Jack Bauer can’t even stop ‘The Goldman Conspiracy: 10 reasons Wall Street rule our American democracy
Goldman Should Pay Paulson a Big Fat $1 billion Bonus: King Henry’s the world’s greatest nudger

10 Predictions: America’s Worst Decade Ever 2011-2020: Rich Get Richer, Market Crashes, Revolution, Class Warfare, Ending of the American Empire
by Paul B Farrell, JD, PhD
| Discuss | Print | 1/27/2011

Dateline December 2020. Let’s look back on the 2011-2020 decade, at what historians call the “Worst Decade in American History.” Totally predictable, totally denied. Back in January 2011 we made 10 predictions of a chain of events that would reach a critical mass and consume America in a torrent of “creative destruction,” crippling capitalism and other outmoded institutions, forcing new power players to step out of shadows and assume leadership in a time of extreme crisis.

“The U.S. economy appears to be coming apart at the seams,” warns Columbia Professor Robert Lieberman in the new Foreign Affairs Journal. Unemployment remains at nearly ten percent, the highest level in almost 30 years.” A long trend of “ballooning incomes at the very top and stagnant incomes in the middle and at the bottom. The share of total income going to the top 1% has increased from roughly 8% in the 1960s to more than 20% today. … a level of economic inequality not seen in the United States since the eve of the Great Depression.”

And yet, here we are being conned again, like before the 2008 meltdown. But the same crooks we bailed out. Warning: Forget all Wall Street’s hoopla about a 2011 bull market with the Dow rocketing to 15,000. Think long-term. Wall Street lost an inflation-adjusted 20% of your money the last decade. They will lose another 20% by 2020. Today’s new “Gilded Age” bubble will end in a crash worse than 1929, triggering a new depression that will wreak havoc on your retirement portfolio. Yes, Lieberman is warning of class warfare dead ahead: “Income inequality in the United States is higher than in any other advanced industrial democracy … It breeds political polarization, mistrust, and resentment between the haves and the have-nots and tends to distort the workings of a democratic political system in which money increasingly confers political voice and power.” A costly new “Civil War” makes our enemies cheer.

So here are my 10 predictions for 2011-2020, a flashback, a retrospective, a year-by-year look back from 2020 at a decade of increasing battles between the haves and have-nots, where there is no longer room for “compromise” between the two ideologies destroying America from within. “The Gap,” the divide, the greed, the entitlements, the hostilities are now so entrenched that “negotiations” are impossible and only a catastrophic 1929-style collapse of our self-destructive capitalism and a descent into economic hell will force America to restructure. Here’s the 10-year timetable:

2011. Wall Street’s super-rich spend billions to control Washington
Thanks to the conservative takeover of America’s so-called democracy the past three decades, from Reagan to Obama, our activist Supreme Court delivered the coup de grace into America’s psyche last year, overturning long-established precedent giving rich owners of zombie corporations absolute rights of live humans, a decision that would have gotten a failing grade in my constitutional law class at the University of Virginia.

2012. Super-Rich gain absolute power over Washington
That bizarre decision destroyed legalized political bribery. Now billions pass through lobbyists to politicians in all parties, with one goal: A guarantee that all politicians (President, Congress, Fed, regulators and state governments), all adhere to Reaganomics and the ideology that money talks and wealth rules. As a result, America is no longer a democracy, not even a plutocracy. America is an Anarchy. Our middle class is in a rapid spiral down into third-world status, while the rich get richer and “the gap” between the richest and the rest widens. Worse, it’s irrelevant who wins the 2012 race, because money corrupts all in Washington and Obama is already a puppet of America’s super-rich conspiracy.

next: 2013-2020 on MarketWatch

“Kamikaze Capitalism:” Can GOP Destroy Obama? Without Destroying the American Economy Too? What a Dumb Plot: Capitalism Loses, China Wins!
by Paul B Farrell, JD, PhD
| Discuss | Print | 1/11/2011

Foreign Policy’s journal is inspiring: Don’t miss their annual issue on “Failed States” listing the 25 worst dictators: “The Committee to Destroy the World.” Next, think domestic policy. Think of Mitch McConnell’s “Mission Impossible” vow to do anything, including kill our economic recovery for the next two years – anything to make Obama look bad, make him a one-term president. Call it “Kamikaze Capitalism!”

Go Mitch! You stir my cinematic imagination. Made it go into hyper-drive last week when your GOP team decided to defeat Reagan’s signature national security victory, the nuclear disarmament treaty with Russia. You guys sure have a bizarre suicidal idea of leadership and governing. Ol’ grumpy Mitch also led his GOP saboteurs in killing the unemployment benefits extension, while making an even more bizarre claim that billionaires “need” a $800 billion bailout (that’ll trickle down to unemployed Middle Americans?). Then he played his ace, calling the GM IPO a failure that should have been left to the bankruptcy courts, with more jobless millions. Yes folks, ol’ grumpy would definitely get on a domestic list like “The Committee to Destroy American Capitalism.”

Folks, this is the stuff of great movie plots. Not an Oliver Stone or Michael Moore film. No, this is a true Eastwood thriller. Think “Magnum Force,” Dirty Harry killing real bad guys. Better yet, “Absolute Power.” Imagine: What if McConnell’s GOP gets their wish? Game on. The hunt begins. The GOP tried once before under Bush. Now they want a new shot at that old adage: “Power corrupts, and absolute power corrupts absolutely.”

Eastwood brilliantly reveals why power corrupts. Why it blinds. Why it self-destructs. In “Absolute Power” we see an arrogant President convinced he’s untouchable, surrounded by Secret Service officers who will do anything to protect him, hide affairs, even murder. Until the unexpected, what economist Paul Krugman calls the “great unraveling.”

“Kamikaze Capitalism:” GOP stars in Eastwood “destroy the presidency” thriller?
Eastwood plays Luther Whitney, a small-time crook. Just wants enough from one last job, before retiring in the American Dream. His victim is out. But as luck would have it, the President, Gene Hackman, suddenly appears with the lady, upsetting Luther’s cleverly planned robbery. Luther hides in a secret room, a voyeur behind a one-way mirror. This President’s into kinky sex. But sadomasochism consumes him, he kills her.

Luther is what economists call a Black Swan, every thriller has them. Unpredictable events you never see coming, can’t plan for. They blindside you, taking a thriller into new dangers. Filmmakers love them. Tittilated, Luther watches the lurid sex, the murder, the cleanup by the Secret Service. They dispose of the body. But later, a new twist, they find evidence of Luther. Then frantic spinning, blaming a home invasion robbery gone bad. The hunt for Luther begins … and ends … absolute power corrupts absolutely … the presidency falls. Yes, Eastwood planned this … but McConnell can’t … no trick mirrors.

 …. read column on Marketwatch

America’s Failed 30-Year “War on Drugs” is Sabotaging Our Economy, Our Future As a World Power, War on Terror & Wars in Afghanistan, Iraq, Mexico
by Paul B Farrell, JD, PhD
| Discuss | Print | 12/20/2010

“Civilizations die from suicide, not by murder,” said Arnold Toynbee, whose 12 volume Study of History traces the rise and fall of civilizations. Get it? The “fall” is an “inside job.” Attitudes, behavior, values die first. The soul is left for dead. Oh, some outside force may push the button, pull the trigger, or, as in ritualistic hara-kiri, some stranger may bring the sword down upon our neck. But we set the ball in motion. We create the world around us, including our enemies, as individuals and as a nation, we are totally responsible for our karma, our fate, our destiny, our demise.

“Suicide, not murder:” Toynbee’s chilling warning came to mind a few years ago as I read three reports of dangerous economic trends, all tied directly to America’s addiction to drugs and how they are destroying us from within, rendering our borders vulnerable, giving our enemies billions to buy weapons and attack us from without. These three reports highlight threats far more ominous than any threats from terrorists, nuclear war, energy shortages, entitlement failures, global warming, or government deficits, as bad as they all are. Why? Because we are creating an inner world that is far darker, far more lethal. The reports cover these three areas:

1. “The Lost War on Drugs.” America’s failed 30-year “War on Drugs” that’s now sabotaging our “War on Terror.”
2. “Weakening Defenses.” America’s leaky borders that expose us not just to terrorists, but openly invite transnational drug syndicates, mobsters, criminals.
3. “Prescription addiction.” America’s out-of-control addiction to prescription drugs, with Big Pharma as the main pusher.

These three trends have been exposed in recent media reports as three separate trends with significant economic impact. However, they are very much linked together in the inner workings of the American soul. So why does the media treat them separately? Very simple: The media (like people in general) is also trapped in America’s ubiquitous state of denial, denial of a disease so cunning and powerful that most Americans refuse see the underlying disease, either as individuals or as a nation: In her writings noted psychotherapist Anne Wilson Schaef aptly describes America as a “Nation of Addicts.” Once “in” the disease we can no longer see ourselves objectively, we become zombies, like pod people in “The Invasion of the Body Snatchers.” (More)

11 Ways Our GDP “Growth Fetish” is Killing Our Soul & Your Retirement. And Will Eventually Self-Destruct Capitalism, Democracy & the “American Empire!”
by Paul B Farrell, JD, PhD
| Discuss | | 10/10/2010

What do we do, oh great zenmaster? “When you get to a fork in the road … take it,” replies the wise one, Yogi Berra, greatest Yankee catcher of all time. His sage advice to economists, politicians and investors everywhere: “The future ain’t what it used to be. We made too many wrong mistakes. You’ve got to be very careful if you don’t know where you’re going, because you might not get there.”

At the crossroads: “Growth!” Capitalism’s most sacred commandment, “Grow OR Die” may itself be on death row. With us since 1776, it’s being challenged by a “New God of Reality” that’s flashing relentless strobe warnings of an emerging new command from critics, contrarians and eco-economists: “Grow AND Die.” Yes, you heard right:

· “Grow OR Die.” Traditional Economists: We need 3% GDP “Growth” to support 100 million new Americans in the 21st century. Drill Baby Drill. New jobs to fuel slow recovery. Worse, exploding growth demands as the rest of the world adds 2.9 billion new humans all chasing their unique “American Dream.”

· “Grow AND Die.” New Eco-Economists: They see Big Oil’s destruction of our coastal economies, the rape of West Virginia’s coal mountains, the unintended consequences of uncontrolled carbon emissions and ask: “When will economists, politicians and corporate leaders stop pretending Earth’s resources are infinitely renewable?” Unfortunately, even the new eco-economists fail to factor population growth, the big 800# Gorilla, into the equation.

Yes, we are all at a crossroads, all facing a dilemma, all confronting the ultimate no-win scenario: “Growth” is essential to support the global population explosion. “Growth” is also killing our world, wasting our planet’s non-renewable natural resources. As a result, the “Growth” mantra will eventually destroy civilization. (More)

Surviving Till 2050, the “End of Civilization,” with 50% More People Using Ever-Scarcer Commodities! 6 New Rules for Investing in the Worse-Case Scenario!
by Paul B Farrell, JD, PhD
| Discuss | | 9/21/2010

So Congress enacted some  financial reforms. Big deal. Mere window dressing. Wall Street must be drunk on Dom Perignon, celebrating the huge paid-offs from their successful $400 million investment by lobbyists to “kill reforms” And that GOP concession? Phony. Wall Street will reward them for the loopholes denuding Dodd’s financial reforms. And even with all his rants about fat-cats, Obama wins. Eventually Wall Street will spend another $400 million to keep Obama in office for a second term.

“Change? Yes we can?” That’s funny today. Obama is now Wall Street’s best asset, their new Trojan Horse replacing Hank Paulson, a troika with Bernanke, Geithner. Wall Street always gets what they want. And you can bet they’ll cough up yet another $400 million keeping lawyers and lobbyists busy fighting SEC regulations, to make sure its back to business-as-usual with free-market Reaganomics capitalism. Spending $400 million is chump change compared to the hundreds of billions Wall Street gets cheap from the Treasury and Fed, by playing us taxpayers for suckers after screwing up the economy and triggering the 2008 meltdown. Yes, we’re suckers, and Wall Street will take advantage of us the next time they meltdown, coming soon.

What can you do? Shift focus from “them” to you. You need a whole new strategy. Are you ready? Okay. First, let’s assume you really are tired of the pain of fighting Wall Street. You are? Good. Then you’ve had an epiphany … an “awakening” … you’ve had one of those rare “ah-ha!” moments … what Zen masters call “enlightenment” … you finally see “the light” … the futility of denying reality … and as you see into this new reality, you surrender the fight, you accept these six secret “wisdoms” underlying your new investment strategy:

First. Accept that Wall Street money calls the shots in Washington. Period!
Seriously, stop fighting Wall Street. They won. Admit it. You join with Wall Street in spirit. You flow with this new reality, without being tortured by inner anger because it’s eating you up, worse than marching with the Tea Party. Acceptance works for the president, he’s obviously “at one” with Wall Street. Peace of mind is more important. Stop fighting. Do it willing, not begrudgingly, not as an indentured servant but as a true partner capitalizing on the simple reality that Wall Street is, in fact, running America. (More)

Oliver Stone: “Greed is Great” for Wall Street Fat-Cat CEOs. But Why Did Greed Also Become the New “American Dream” for 95 Million Main Street Investors?
by Paul B Farrell, JD, PhD
| Discuss | | 4/12/2010

Two decades ago Oliver Stone’s classic movie “Wall Street” focused a spotlight on New York’s investment banking world. Hedge funds and private equity firms were in their infancy. Mutual funds and 401(k) plans were still a smaller part of the retirement planning world, with employer-sponsored retirement plans dominant. Exchange-Traded Funds and 529 college savings plans didn’t exist. And Corporate America’s CEO were still making reasonable compensation compare to workers.

In the past twenty years the belief that “greed is good” has not only spread rapidly across the top-layers of America’s business and financial world, it has filtered down through the ranks and out to the Main Street America. Greed is the driving force in the new American Dream, reflected everywhere in our culture, not just in the increasing gap between the wealthy at the top and the average worker. We see it in huge lottery payoffs, game shows like “Who Wants to Be a Million” and a Chase bankcard commercial echoing the band Queen’s hit melody: “I want it all, I want it all, I want it all, and I want it now!’

If a picture is worth a thousand words, an editorial page cartoon is worth a million. They capture more than an entire paper about contemporary America. Yet, as with the old court jesters poking fun at a king faults, after a nervous laugh, the message is ignored … until historians write of the empire’s demise. Here’s the scene: Board members sitting around a big table. CEO asks: “Raise your hands those in favor of saving their soul, rather than the company.” That “Salt and Pepper” cartoon on The Journal’s editorial page says volumes about today’s “American Soul.” (More)