Sometimes a person or organization becomes so powerful and Evil that they appear cartoonish.

  It might seem impossible to find a similar character outside of a James Bond movie. After all, who really wants to take over the world and has a plan to do it, right?

  So attributing truly Evil intentions to a public organization, and voicing those concerns, automatically puts one into the land of tinfoil-hat, konspiracy lunatics.

  And yet there is an ongoing theft taking place in global finance on such a scale that is threatening the concept of democracy itself, and Goldman Sachs has their fingerprints all over the crime scene.

  At what point do we suspend our disbelief and embrace reality? These guys really are Evil.

“We are doing God’s work.”

 – Lloyd Blankfein, CEO Goldman Sachs

  The Independent had a great graphic recently that displayed the New Reality in Europe.

  As the financial crisis has deepened in Europe, Goldman Sachs has taken over the halls of power.

  The financial crisis of the past week, that claimed the leaders of two European governments, came within a whisker of recreating the 2008 Finance Crisis, but was averted by timely action from European financial leaders.

  At least that is how it is being reported in the media.

 Prime ministers fell, markets shook and there were rumours that the eurozone would split up. But it survived – for now

 The stock market rallied on news of new austerity measures, a former central banker becoming leader of Greece’s new government, and agreements on a new bailout plan.

 The thing is, this was never a stock market problem. This is a credit market problem, and the credit markets don’t believe any of it. Most importantly, they don’t believe in the bailout.

 Sources said the EFSF had spent more than € 100m buying up its own bonds to help it achieve its funding target after the banks leading the deal were only able to find about €2.7bn of outside demand for the debt.

   The revelation will be seen as a major failure and a worrying sign of future buyers strike after EFSF officials and their bankers had spent recent weeks travelling the world attempting to persuade key investors, including China’s national wealth fund and Japanese government funds, to buy its bonds.

 To put this as plainly as possible: a central bank being forced to buy up the debt that it just issued, in order to hide the fact of the failure to find buyers for its debt, is the perfect example of a Ponzi scheme reaching its end game.

  It was bound to happen sooner or later – somebody realized that exercising free speech in this country can get you arrested.

 Two local attorneys and the American Civil Liberties Union of Tennessee filed a lawsuit in federal court Monday morning to stop nightly arrests of Occupy Nashville protesters on grounds that the state is violating their First Amendment rights…

  “Here, the government has sought impermissibly to prohibit the political speech at issue rather than enforcing the criminal law,” the motion for a temporary restraining order states.

 On various levels, this crushing of unpopular speech is being repeated all over the country. Some are already comparing the OWS to the Free Speech Movement of the 60’s.

 However, I think the current battle over the right of free speech more resembles a forgotten legacy in American history from a century ago. When leftists with unpopular political ideas willingly allowed themselves to be arrested in the defense of freedom.

  While nearly everyone has acknowledged that the so-called Recovery has been pathetic at best, the implication that most people take for granted is that it is still better than the Great Recession.

  But is that assumption true?

 Take for example a very bottom line measurement – your paycheck.

 Median annual household income has fallen more during the recovery than it did during the recession, according to a new study from former Census Bureau officials Gordon Green and John Code. Between December 2007 and June 2009, when the U.S. economy was in recession, incomes declined 3.2 percent. While during the recovery between June 2009 and June 2011 incomes fell 6.7 percent, the study found.

 This situation won’t change anytime soon, as 9 in 10 Americans don’t expect to get a raise this year.

  That by itself should cast doubt on the assumption that this “recovery” is real, but there are other ways to measure it as well.

  If you follow the financial news you will find it using temporary excuses for every set-back.

For instance, every year there will be several bad economics reports blamed on the weather. As if every winter storm is “unprecedented”.

 Likewise, all efforts by the government and Federal Reserve at fixing an economy are temporary as well. Which is all fine and dandy when the economy is suffering from something that is indeed temporary. Remember how 9/11 got blamed for a recession that was already 7 months old?

 But what if the problems with the economy are not temporary? What if they are structural?

How many years of extremely expensive “temporary fixes” must we endure before we take a good, hard look at the basic assumptions of the current economy? Two years? Three years?

 We are currently approaching the four years mark for “temporary” fixes in the credit markets with no end in sight.  

“They lay there, clinging to one another and trying to shield the more vulnerable parts of their bodies from the blows of the nightsticks, while the police hauled them apart and dragged them bodily into waiting patrol wagons.”

  – NY Times, March 31, 1948

 Every once in a while an underdog defeats a Titan.

This isn’t one of those times.

  It isn’t the victory of an underdog that inspires us so much as it is the incredible courage it takes to even challenge the overwhelming champion.

 Sixty-three years ago the labor movement took the fight literally to capitalism’s door-step in one of the most lopsided battles in history. The name of the underdog that championed the cause was Merritt David Keefe.

   I was visiting one of my project partners today.

She has two daughters, the youngest of them 6 years old. While we were talking the girl from next door, about the same age, came over to play with the daughter.

 I couldn’t help but notice the fresh dime-sized scabs and scars all over her lower legs. It was some sort of skin disease.

 What is it from? No one knows. Has the mother seen a doctor about it? No. Why not? No tiene dinero.

 It’s as simple as that. This is the Dominican Republic. This is a third-world country. There is no real public health care system. It is almost totally private, and thus inaccessible to most of the population.

  Too often commentary on the European debt crisis has been like handicapping a horse race (“this country is leading the race to default, but this other nation is catching”).

  While interesting, it is useless in trying to figure out how this relates to the average person.

 The first thing you have to understand is who the players are and how they are connected.

   The next big shock to the world’s financial system could happen as soon as Monday morning.

  How do I know this? Because the world’s financial leaders are expecting something really bad, and have publicly announced their intentions of preventing the consequences of something that they have proven unable to fix.

 It started on Friday, when Germany gave up on Greece.

 Chancellor Angela Merkel’s government is preparing plans to shore up German banks in the event that Greece fails to meet the terms of its aid package and defaults, three coalition officials said…

  Greece is “on a knife’s edge,” German Finance Minister Wolfgang Schaeuble told lawmakers at a closed-door meeting in Berlin on Sept. 7, a report in parliament’s bulletin showed yesterday. If the government can’t meet the aid terms, “it’s up to Greece to figure out how to get financing without the euro zone’s help,” he later said in a speech to parliament.

 When it comes to unofficial leaks like this, I tend to fall back on the wisdom of Otto von Bismarck when he said, “Never believe anything in politics until it has been officially denied.”

 Then, right on cue, both Greece and Germany officially denied it. Thus making it true.

 What is really scary is the two developments that immediately followed this news.

 The G7 stepped up and promised their support in defending the financial status quo.

 Central Banks stand ready to provide liquidity to banks as required. We will take all necessary actions to ensure the resilience of banking systems and financial markets.…

  Excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability. We will consult closely in regard to actions in exchange markets and will cooperate as appropriate.

 Why would they bother to announce this unless they suspected that people questioned either their resolve, or their ability?

 To conclude all these official declarations that “there is nothing to worry about” and “everything is under control”, the IMF also promised to step in if necessary.

 The International Monetary Fund will likely re-activate a $580 billion resource pool in coming weeks to ensure it has funds to help cover Europe’s worsening sovereign-debt crisis, according to several people close to the matter….

  According to the IMF, the pool of supplementary resources are only to be activated when “needed to forestall or cope with a threat to the international monetary system.”

 The IMF has been beefing up this fund since shortly before the European debt crisis reached this new crisis level. It’s almost as if they knew something like this was inevitable.

  The problem is that politics often works more slowly than bankers.

 The board of governors agreed in December to roughly double quotas from around $375 billion to around $750 billion. But out of the 187 member countries, only 17 have legally accepted the increase, including Japan, the U.K. and Korea. Most of the countries with the biggest quotas, such as the U.S., China and Germany, haven’t yet gone through the legal process, such as parliamentary or congressional approval, need to hand over their promised dues.

 While the American media focuses on opening week of football, handicapping the presidential race, celebrity gossip, reality TV, or talking about the latest electronic gadget, the financial markets are preparing for crisis in ways that we haven’t seen since early 2008.

  If the worst happens, the American public will be caught by surprise again because the news media failed us yet again.

  It’s taken a very long time, but the easily predictable implosion to Europe’s sovereign debt crisis is finally approaching.

  The same day that thousands of protestors against austerity measures returned to the streets in Athens, the Greek bailout talks also collapsed.

 “I expect a hard default definitely before March, maybe this year, and it could come with this program review,” said a senior IMF economist who is keeping close tabs on the situation. “The chances for a second program are slim.”

 Europe’s financial leaders want Greece to cut its budget further in order to make up for the gap that has been caused by the deepening recession. Of course the cuts are making the fiscal gap worse by slowing the economy further.

  Meanwhile, yields on 1-year Greek bonds have hit 70%, a level so far above affordable that a Greek default is already priced into.

  A couple days ago I read an interesting article on the aljazeera web site titled Double-dip recession is unlikely. What made the article interesting wasn’t the source, or the claim, it was the reasoning behind the claim.

 Most post-war recessions were kicked off when car sales and house sales and new construction plummeted.

  There seems to be little risk of a substantial decline in either car sales or house sales and construction, primarily because the levels are already so low….

  Both car sales and housing construction are already so low that they don’t have much room to fall.

 What the author is claiming is “things are already so bad, it’s hard to imagine them getting worse.”

 That’s a very interesting claim, but I doubt the author of the article learned it in an economics class. It sounds more like something he heard in a bar, and seemed to make a lot of sense after a few drinks.

 That’s not to say he doesn’t have a point of sorts. It’s just that his point is that we are in a Depression.

  The world of international finance, as it is practiced today, is a giant Ponzi scheme. The largest and most powerful Ponzi scheme in history. One of the first Ponzi schemes in history to actually be supported by the political leaders of the world.

 However, all Ponzi schemes must end poorly. They are designed to have a built-in failure. A Ponzi scheme only works when increases in value. You can’t have suckers investors selling.