The Federal Reserve and Goldman Sachs

To be honest; I had to be dragged, kicking and screaming into this latest postulation. After all, though I have the aptitude to construct any literary composition into unqualified brilliance; an intellectual honesty requires of me passionate fidelity to educated honesty.

To wit; on the back burner of my slothful and mostly incompetent staff, “excluding the hard work and diligence of Travis” has slowly simmered the relationship between the Federal Reserve and Goldman Sachs. Thankfully Glenn Beck and company jogged my memory with a half-hearted attempt at explaining this incestuous cabal and prompted the beating of said staffers into action.

Yet, make no mistake; there belies a panoply of career risks to the author. Because, as everyone knows, we evil conservatives are all protecting of malevolent mega-corporations. And…explaining economics to the 54% of thumb sucking, Oprah watching, wine cooler drinking, quiche baking, sushi eating, and tweed jacket twerps that voted for the Bamster. It’s akin to explaining the shrinkage of space as the speed of light is approached to monkey eating Mubuti pygmies.

Still; I try. Most oft misunderstood is the relationship between Goldman and the Fed. The general thought is that of a symbiotic, incestuous convergence of like minded money grabbers. Not so Skippy; Goldman Sachs is the Federal Reserve…and visa versa.

Let us begin at the most recent history. On September 15th 2008, in the span of three hours, someone(s) or some financial enmity entity began, “cashing out” $billions of dollars in the equity markets. {The market in which shares are issued and traded, either through exchanges or over-the-counter markets. Also known as the stock market, it is one of the most vital areas of a market economy because it gives companies access to capital and investors a slice of ownership in a company with the potential to realize gains based on its future performance} In just over three hours over $500 billion dollars was removed from the markets causing gentle Ben Bernake, “former Goldman executive” and chairman of the Federal Reserve along with the treasury secretary Hank Paulson, “former Goldman Sachs CEO” to rush into President Bush’s office, flushed and panting, hair on fire, well…scalp on fire and frantically inform the President that the American way of life would end by the close of that days business unless these two hair club for men rejects could infuse the capital markets with $trillions of dollars, jiffy quick. In an unrelated story; the presidential campaign, on that day, for some odd reason, changed. The most pressing of issues had been the war in Iraq…yet; now the economy and its certain demise became most topical and pressing. Advantage Democrat and one Kenya native…you guessed it, Barry the Bolshevik.

Most prevalent in the fiduciary school of thought is that a scheme this enormous had to have been orchestrated by a government. Most postulated was a Saudi cabal or a Russian conspiracy. Yet…overlooked was the influence of Goldman and its infinite access to capital via the Feds discount window. The simplest evidence is that most often overlooked. On that day, “September 15th, 2008” Goldman executed just over 46,000,000 trades. In a completely unrelated story a former Goldman Sachs employee was recently released on bond for stealing computer code that allowed for such massive trading. Bloomberg news reported that the prosecutor alleged that were this code to be used by any corporate interest, “other than Goldman” it could wreak havoc on the markets and open the possibility of mischief in the markets. Bloomberg reports, “The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways,” Facciponti said, “according to a recording of the hearing made public yesterday”. “The copy in Germany is still out there, and we at this time do not know who else has access to it.” Yet, though others, using this software could manipulate the markets…nah, Goldman wouldn’t think of such malevolence. Still, they did just post $3billion dollars in profit during the largest downturn in the American economy since the great depression… Just a coincidence, to be sure.

The Flushing of our Economy

Never mind that the pin-prick in the housing bubble came from Goldman, and the free money policies of the Fed exacerbated an oligarchy committed to, “moving on up” the Jefferson’s into homes they could never afford. The gist of the pseudo-governmental groin kick to Wall Street was the hands-off, no nonsense approach to capitalism that allowed Lehman Bros. to fail, Bear Stearns to go belly up and left AIG in the lurch. In an unrelated story, Lehman and Bear Stearns were the only competitors of Goldman Sachs and AIG was indebted to Goldman to the tune of $13 Billion dollars. So…naturally, Lehman and Bear were allowed to fail; AIG was secretly bailed out with the proviso that Goldman was to be paid their $13 billion before the ink was dry from the treasury debit card transaction, via the Fed.

Strange Bedfellows

Never mind that the new, “must have, right now” treasury secretary, little Timmy Geithner, former New York Federal Reserve chief and former Goldman Sachs executive jumped on the nearest soapbox in a declarative statement opined that AIG represented a systemic risk, and must be saved. He then proceeded to tank AIG as insolvent and pursued the paying of debtors, first and foremost, Goldman Sachs.

AIG, “American International Group” mostly an insurer of state risks, credit defaults and chicken thieves was extended $ 113 billion dollars to basically do what the treasury and the Federal Reserve could not. That is, infuse their holders of debt with genuine greenbacks. AIG was never too big to fail; it simply owed money to those who would make you an offer that you could never refuse.

The Metamorphosis

Goldman Sachs, as a company, a corporation; since its inception from a Jewish-German immigrant founder has been an investment bank… or more simply put; a speculator of equity markets… has come a long way. They have entwined themselves so indecently with the Fed as to question where one ends and the other begins. They have access to economic data, “via the fed” that allows them to trade in milliseconds and leave perplexed the Wall Street laggards that exalt them as the second coming.

In the United States House of Representatives over 200 elected leeches have signed on to a bill that would require the Federal Reserve to open their books and be the transparent governmental sponsored entity that B. Hussein Bamster’s teleprompter promised we would have. Yet; the Democrat leadership will not allow a floor vote. Democrats and Republicans a like have demanded that little Timmy Geithner account for $Two Trillion dollars that have yet been spent, but unaccounted for.

This is a scam; Goldman has taken over the Fed with the acquiescence’s of the Fed, as they feed at the feet of Goldman Sachs. Not to mention that all of the players, minus ex-CEO of Goldman Hank Paulson, are former or current Goldman Sachs employees, of course none of this is related; only a coincidence.
Conservative Springfield Staff Writer