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AdirondackFund (< 20)

Goldman Sachs and The Usury Chain

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July 14, 2009 – Comments (12) | RELATED TICKERS: GS , S

Very few people genuinely understand the inner workings of economies and what makes them function.  Goldman Sachs would be the exception.  To simplify the explanation somewhat, it is an unnatural act to begin with.  The basic tenet behind any Usury Chain is the need to create demand itself, whether that demand is real or imagined.  The building blocks of the Usury Chain begin within Government itself, or The Bank, since it has the money and has the power to regulate money through Tax and Spending Policy and through the issuance of Debt.  Our current rendition of The Usury Chain began in the Reagan Administration with wholesale Tax Cuts for Businesses and Individuals.  These Tax Cuts automatically put more money in the hands of Businesses and Individuals once Tax Rates were reduced, that money in Individual Budgets and Business budgets then went to work bidding up asset values in order to strengthen Balance Sheets with 'paper profits'.  This was the spark that lit The Usury Chain.  This Chain then ratchets up prices and assets until there is NO MORE MONEY to bid prices higher.  The net effect of The Usury Chain is to create demand in an unnatural way and then as a result of doing so, to then charge INTEREST which rises on a compounded rate which exceeds the worth and value of asset prices, or even their ability to rise to parity with Interest Compounded.  Simply because the Interest Component is removed from the economy, never to return again, except in the Formation of Newer Debt, asset prices become stalled in value and once owners of property recognize this, Panic sets in.  Why does this happen?  Because eventually Interest removes money from economies at an ever accellerating rate, based simply on the compounding nature of Debt.  You see, it wasn't that we lived beyond our means, it is that we were forced to live beyond our means simply because of a Usury Chain that was put into practice for the purpose of raising prices on everything from soda pop to Housing.  This system has now prospered again by profiting off of the misfortune created by The Bank to begin with.

Charles Dicken's story 'A Christmas Carol' explains the Usury Chain in bold enough detail in order to make it's point.  Scrooge not only owned the Farms, which he then rented out to sharecroppers, he bought their wheat, made the market in the wheat, owned the Housing that the sharecropper lived in, and controlled the Income of the Sharecropper through markets he controlled, thus insuring the sharecropper's demise.  The reason why this demise was inevitable is simply because the rate of Interest exceeded the rate of increase in Income.  Does this sound familiar to anyone?

Now that Goldman Sachs has reported their Record Income; yet again, it is sourced from the same Daisy Wheel that created the circular flow of money in the first place.  Goldman is now Bailing out Municipalities and Banks after having caused them to become Bankrupt in the first place. They accomplished this feat by overbidding for Housing within their own Communities to a level far in excess of the average member of that community to earn and the waves of this effect spread outward into the community fostering greed in The People themselves.  Adding insult to injury, they are doing it now with our Grandchildren's money, borrowed from the FED, under the guise of a Crisis which is designed never to effect them.  You see, as makers of markets, GS also has the option of dumping it's own shares, at precisely the right moment to insure Panic in Markets.  This is not what Chief Justice Marshall had in mind when declaring it unlawful to scream "Fire" in a crowded Movie Theatre.  Goldman does this all the time.  It is their schtick.

Unfortunately, there are only two possible outcomes in this Daisy Wheel economy that they have created.  The first outcome is an 'Egghead Contrived Depression' which results in the wholesale loss of weath by every American.  The second outcome, and one which will solve the problem is a wholesale BOYCOTT of all GS Business interests, and/or an Anti-Trust Prosecution, thus ensuring the demise of The White Wolf that preys deliberately upon The People.  The dominoe effect of the single actions as a single Firm ought not control the destinies of The People.  But it does.  And therein lies the crime, just as Judge Marshall expected it to be.  We have been here before.  America has seen these problems before, just as Dickens saw the same problems in his time.  Until the practice is outlawed, and prosecuted, it will continue unchecked until the last dime is extracted from the US Economy, rendering all others broke.  And then what?  A Revolution to solve the Crime?     

     

12 Comments – Post Your Own

#1) On July 14, 2009 at 1:39 PM, bigpeach (27.61) wrote:

Are you suggesting that GS hatched some nefarious plot years ago to single handedly engineer this recession in order to profit from it?

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#2) On July 14, 2009 at 1:56 PM, AdirondackFund (< 20) wrote:

 @bigpeach

 Actually, no, I am suggesting that Donald Regan, who was the Former Chairman of Merrill Lynch, and served as Ronald Reagan's Chief-of-Staff did, and at the behest and interest of other Wall St. Banks, including Goldman Sachs.  This is probably why Nancy Reagan had her frequent run ins with Donald Regan, disliked him to the core, simply because she knew what effect he had on her husband and the very bad outcomes that would result from it.  She was right.  We had the Crash of 1987, led by Goldman Sachs 'program trading', which is now outlawed. 

What should we outlaw next to keep their hand out of our collective pocket?  

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#3) On July 14, 2009 at 1:58 PM, caterpillar10 wrote:

not so much plot as seeing the posibility and letting it ride knowing they could benefit should the scenario play out which it did.    

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#4) On July 14, 2009 at 3:55 PM, abitare (88.86) wrote:

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#5) On July 14, 2009 at 4:04 PM, tfirst (27.57) wrote:

GS just learned it from the Federal Reserve Bank! But don't look to me for a solution.....torches and pitchforks. Our own military is preparing for it.

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#6) On July 14, 2009 at 5:19 PM, kfisherprotege (30.95) wrote:

This Rolling Stone article (crass language warning) is along the same lines... 

The second outcome, and one which will solve the problem is a wholesale BOYCOTT of all GS Business interests, and/or an Anti-Trust Prosecution

Not a likely outcome in the near-term, as they've got well positioned backers in every level of government and regulating body up to and including the Oval Office and the World Bank!

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#7) On July 14, 2009 at 5:24 PM, PrestonCheek (32.53) wrote:

Great article Adi.

I hope things are going good for you.

Preston

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#8) On July 14, 2009 at 7:08 PM, AdirondackFund (< 20) wrote:

Hey Preston.

It's kind of funny.  I know these guys from the neighborhood.  There was a reason why I wouldn't set foot on Geithner's Yacht at the Larchmont YC.  I am telling you that I wouldn't trust these guys with my grandmother....so why are they cutting themselves Government checks now that they have ruined the Public Sector of the Economy by Kiting Debt?  Kiting Checks is a crime, but Kiting Debt is not?  Isn't that convenient. 

And who, really, doesn't enjoy jabbing their pen in their neighbor's eye, the exact moment their neighbor has committed a crime?

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#9) On July 14, 2009 at 8:27 PM, AdirondackFund (< 20) wrote:

Hey Preston,

Here's another funny one for you.  Geithner used Ulmer Sails on his Yacht.  Now, in competitive circles, Ulmer Sails are not competitive.  The reason why is because Charlie Ulmer builds sails from patterns, not design, at least he used to and nobody knew, except me of course.  Now, on the other side of the street is Hard Sails which were designed by Jerome Milgram, the Dean of the MIT School of Naval Architecture and clearly the brightest man in the room.  When we set the World Speed Record for a sailboat (it was a hydrofoil sailboat), in 1978 in Port Jefferson, LI we won because we designed the craft and built the sails so that they would win.  You see, you can actually figure these things out using computer models.

To make a long story short, I never had much respect for Mr. Geithner's intelligence from that day on.  Anyone who would go to the trouble, time and expense of competing should have some eye for technology and Mr. Geithner clearly does not.  He has proved as much in his selection of Sailmakers.

When I told a friend what the problem was with the Ulmer Sails, that they were 'without design' and where our designs came from, they of course ran out and bought the design so they could implement it into their new patterns.  What they failed to realize was that I forgot to tell them about the deformation and rate of change formulas (the Hard Sails logo was a Delta, it should have been a hint) that were required to maintain the shape.  As a result every one of their sails fell apart and whatever shape they had built into them had blown out after the first or second use. 

You can imagine my giggles.   These people are simply not very smart to begin with.  And now they have just got themselves caught by the American Public.  I am not the least bit surprised.  I caught them too, a long time ago, at the age of 19.  Talk about picking on your big brother.....LOL.     

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#10) On July 14, 2009 at 10:34 PM, AdirondackFund (< 20) wrote:

@ Abitare

Real good Vid.  Thanks for putting that up there.  I must admit, I am a Spitzer fan.  I hope he returns to Public Office.  We need him. 

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#11) On July 15, 2009 at 1:52 PM, givmeabreak (29.15) wrote:

Hey AD, could you expand on how you think they were caught by the American Public? If this were true, I would think they would all be behind bars by now.

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#12) On July 19, 2009 at 12:21 PM, AdirondackFund (< 20) wrote:

@gimmeabreak

Well, to use the 'shark' analogy....there's plenty of blood in the water.  GS's recent profit statement is proof of that.  Now....fools are maybe a tad smarter than the average fool, and many articles are now appearing here at the motley fool about the rise of Economic Fascism in America, GS being the foremost proponent, simply because they are looking  for guaranteed returns.  The only guaranteed return GS can receive is from the Treasury Department, so they have gone off and infilitrated Treasury in order to rescue themselves AT EVERYONE ELSE'S EXPENSE.  This is not American Justice, it is an American Crime.

Some years ago, I ruined GS's Mergers & Aquisition Business by uttering 3 words...."Stock Swap Merger'.  We want to bring back the Stock Swap Merger and Bankrupt the boys before they pick the Treasury clean, which it seems they have already done a very good job, so far. 

'You don't need a weatherman to know which way the wind is blowing'.  

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