Tag Archives: Federal Reserve Bank

SYNDICATED COLUMN: Investigating the Investigators

IRS Targeting is a Scandal, CIA Targeting is Business as Usual

“We’re fighting for you!” That’s what the Democratic Party tells Democratic voters and what the Republican Party tells Republicans. But even their “battles” reveal how similar the two parties really are.

Case study: what gets investigated.

Less than a week after the news broke that the IRS engaged in ideological profiling in 2011 and 2012 — targeting Tea Party-related non-profits for checks into whether they were violating the terms of their tax-exempt status by spending donor money on political ads — top Democrats joined their GOP counterparts to demand a Congressional investigation. That’s lightening quick for government work — and yet not fast for some. Senator Marco Rubio (R-Florida, ’16 prez prospect) called for Acting IRS Commissioner Steven Miller to resign immediately. President Obama called the IRS’ actions “outrageous” and “contrary to our traditions.” The IRS has already apologized.

This all goes to show that the federal government can turn on a dime when it wants to do something. It’s a matter of priorities. Millions of Americans whose homes were stolen by banks in illegal foreclosures waited five years for $600 settlement checks that bounced; the Fed gave the executives of those banks $7.77 trillion in a matter of days, no questions asked.

So it goes with what gets investigated.

Thrown under the bus in a matter of days, the IRS is already getting ground to mincemeat. Meanwhile, a spectacular panorama of Bush-era abuses have yet to draw the attention of a single Congressional subcommittee.

The 2000 stolen presidential election fiasco? Still no investigation — even though retired Supreme Court Justice Sandra Day O’Connor, the swing vote in the 5-4 decision in Bush v. Gore, now agrees with constitutional lawyers who say the high court had no jurisdiction in the case and thus shouldn’t have heard it.

There still hasn’t been an independent investigation of 9/11.

No one has ever been questioned, much less held accountable, for the invasion of Afghanistan (ostensibly to catch Osama bin Laden, though he was already in Pakistan), the installation by the U.S. of the unpopular Hamid Karzai as a U.S. puppet, huge cash bribes paid to Karzai by Bush and now Obama,  or the lies — an impeachable offense — about Saddam’s WMDs used to con the public into war against Iraq.

People outraged by Bush’s torture program, secret prisons, extraordinary rendition and indefinite detention of innocent people, including children, at post-9/11 gulags at places like Guantánamo, the “salt pit” at Bagram and the Indian Ocean island of Diego Garcia — even on prison ships on the high seas — hoped that President Obama would make good on his campaign promises to investigate these horrific crimes against international law, U.S. law and common decency. Instead, he obstructed justice — another impeachable offense — issuing a directive to his Justice Department and other law enforcement agencies to ignore them. “We need to look forward as opposed to looking backwards,” he told a TV interviewer on January 12, 2009, eight days before taking office.

“At the CIA, you’ve got extraordinarily talented people who are working very hard to keep Americans safe,” he said. “I don’t want them to suddenly feel like they’ve got spend their all their time looking over their shoulders.”

Yes. God forbid our heroic torturers should face any questions about jamming forced enemas up prisoners’ butts. Sorry: I meant our extraordinarily talented torturers.

And, now a flashback to April 14, 2008 — a mere nine months earlier. Candidate Obama told The Philadelphia Inquirer: “If I found out that there were high officials who knowingly, consciously broke existing laws, engaged in cover-ups of those crimes with knowledge forefront, then I think a basic principle of our Constitution is nobody above the law.”

Except the CIA. And the military. And Donald Rumsfeld and Condi Rice and Dick Cheney and John Yoo and, of course, George W. Bush, who explicitly authorized the torture and other high crimes, and is now an elder statesman with his own library and everything.

To recap:

Both parties think it’s bad bad bad for the IRS to target right-wing pseudo-nonprofits for audits.

Both parties think it’s perfectly fine A-OK doubleplusgood to target the buttholes of random Muslims you kidnapped from Afghanistan or Yemen or wherever.

What the IRS did was, of course, wrong. But I’d rather be audited than butt-raped. Butt-raping, especially butt-raping that occurs before illegal auditing, should be investigating before illegal auditing.

Both parties also agree that if there’s ever been something that doesn’t need investigating by anyone, ever, it’s drones. Yes, a whopping 1.8% of Congress recently held an “unofficial hearing” (toothless PR stunt) and politely requested that Obama provide “further clarification of the legal justifications behind drone strikes.”

But no one —not even Vermont’s token “socialist” Bernie Sanders — has called for an investigation into a drone war that ridiculously remains “classified,” a secret to everyone but the dead, the maimed and their survivors. Senator Rand Paul (R-Kentucky, ’16 prez prospect)’s filibuster merely demanded whether Obama planned to drone any U.S. citizens on U.S. soil. (Since he has already droned U.S. citizens on foreign soil, we know the answer to that.)

I’m not Suze Orman, but please let me help you save a few bucks. Whether you’re a Democrat or a Republican, the next time you get a campaign mailer asking you to support them because they’re “fighting hard for you,” chuck that sucker into the recycler. The truth is, the two major parties are on the same page on just about everything.

They’re not fighting for you.

They’re fighting for themselves.

(Ted Rall’s website is tedrall.com. His book “After We Kill You, We Will Welcome You Back As Honored Guests: Unembedded in Afghanistan” will be released in November by Farrar, Straus & Giroux.)

COPYRIGHT 2013 TED RALL

SYNDICATED COLUMN: Lose Your House, Collect $300

Why Aren’t Rioters Burning Down the Banks?

One in ten Americans take such antidepressants as Prozac and Paxil. Among those in their 40s and 50s, it’s 23%. Maybe that’s why we’re so passive.

Like the blissed-out soma-sucking drones of Huxley’s “Brave New World,” we must be too drugged to feel, much less express, rage. How else to explain that furious mobs haven’t burned the banks to the ground?

Last week, as the media ginned up empty speculation about Hillary Clinton’s presidential prospects, and wallowed in nuclear cognitive dissonance — Iran, which doesn’t have nukes and says it doesn’t want them, is repeatedly called a grave threat worth going to war over, while North Korea, which does have them and won’t stop threatening to turn the West Coast of the U.S. into a “sea of fire,” is dismissed as empty bluster, nothing to worry about — the Office of the Comptroller of the Currency and the Federal Reserve released the details of the settlement between the Obama Administration and the big banks over the illegal foreclosure scandal.

Citibank, JPMorgan Chase, Bank of America, Wells Fargo and other major home mortgage lenders foreclosed upon and evicted millions of homeowners between the start of the housing collapse in 2007 and 2011. Millions of families became homeless, including 2.3 million children. The vast majority of these Americans are still struggling; many fell into poverty from which they will never escape.

Disgusting, amazing, yet true: the banks had no legal right to evict these people. In many cases, the banks didn’t have basic paperwork, like the original deed to the house. They resorted to “robo-signing” boiler room operations to churn out falsified and forged eviction papers. In others cases, people could have kept their homes if they’d been allowed to refinance — their right under federal law — but the banks illegally refused, giving them the runaround, repeatedly asking for the same paperwork they’d already sent in. Soldiers fighting in Afghanistan and Iraq, protected from foreclosure under U.S. law, came home to find their homes resold at auction. In other cases, banks even repossessed homes where the homeowner had never missed a mortgage payment.

The foreclosure scandal helped spark the Occupy Wall Street movement.

Promising justice and compensation for the victims, President Obama’s Justice Department joined lawsuits filed by the attorneys general of several states.

Last year, Obama announced that the government had concluded a “landmark settlement” with the banks that would “deliver some measure of justice for those families that have been victims of their abusive practices.” The Politico newspaper called the $26 billion deal “a big win for the White House.” $26 billion. Sounds impressive, right?

So…the envelope, please.

How much will the banks have to pay? What will people whose homes were stolen — there is no other word — receive? Now we know the details.

Remember what we’re talking about. Your house is your biggest asset. You own tens of thousands, in some cases hundreds of thousands of dollars in equity. One morning the sheriff comes. He throws you and your family out on the street. Your possessions are dumped on the lawn. You have nowhere to go. Your kids are crying. If you were struggling before, now you’re completely screwed. And the bank that did it had no legal basis whatsoever to do what they did.

They took your house, sold it, and pocketed the profits.

What would happen to you if you walked into Tiffany’s and stole a $200,000 necklace?

The details:

  • Even though they qualified for federal loan modifications, the banks seized 1.1 million homes, making 1.1 million families homeless after they were approved for refinancing. Since the average foreclosed home was worth $191,000, the banks stole $210 billion in homes. Under the “landmark settlement,” these wrongfully evicted Americans will receive $300 or $500 each, the value of a modest night out at a nice restaurant in Manhattan (two tenths of one percent of their loss).
  • 900,000 borrowers who were entitled under Obama’s Make Home Affordable program to refinancing were denied help and lost their homes. They get $300 or $600.
  • 420,000 homeowners who lost their homes while the banks intentionally dithered and “lost” their paperwork get $400 or $800.
  • 28,000 families who were entitled to protection against foreclosure under federal bankruptcy law, but got thrown out of their homes anyway, get $3,750 to $62,500.
  • 1,100 soldiers entitled to protection against foreclosure because of their military status get $125,000.
  • 53 families who weren’t late on their mortgages, never missed a payment, but got thrown out anyway, get $125,000.

So we’ve got more than 2.4 million families — that’s 5 million people — whose homes got bogarted by scumbag banksters. They’re getting a thousand bucks each on average. A thousand bucks for a two hundred thousand dollar theft! Not to mention the heartbreak and stress they suffered.

Why aren’t those five million people stringing up bank execs from telephone poles? It’s gotta be the Paxil.

But what really gets me is the 53 families who are getting $125,000 payouts for losing homes they were 100% up to date on.

Even if you’re a heartless right-winger, you’ve got to have a problem with a bank taking your house when you never missed a payment. Sorry, but these are multinational, multibillion dollar banks. They should pay these families tens of millions of dollars each.

Those 53 families should own Citibank, JPMorgan Chase, Bank of America and Wells Fargo.

Some perspective:

Citigroup CEO Vikram Pandit received $260 million in pay between 2007 and 2012, the height of the foreclosure scandal.

In 2011 alone, JPMorgan Chase CEO Jamie Dimon was given $23 million. In 2012, the company’s board of directors “punished” him for a $6 billion loss in derivatives trading by paying him “merely” $18.7 million.

In 2012 alone, Bank of America paid CEO Brian Moynihan $12 million; Wells Fargo paid $23 million to CEO John Stumpf.

Not bad for some of the worst criminals in history.

That’s how things work in the United States: the criminals get the big payouts. The people whose lives they destroy get $300.

(Ted Rall’s website is tedrall.com. His book “After We Kill You, We Will Welcome You Back As Honored Guests: Unembedded in Afghanistan” will be released in November by Farrar, Straus & Giroux.)

COPYRIGHT 2013 TED RALL

SYNDICATED COLUMN: The Mayors of Brokesville

To Be Young, Technodouchey and Shilly at SXSW

It’s not like I didn’t know what I was getting into.

This was my second year at South by Southwest, the Austin music festival that has morphed into a trilateral Comic Con of the tattered remnants of the music industry, the on-the-ropes independent film sector, and a New Third Thing, the tantalizingly monetizable-for-a-few culturo-fiscal tsunami that left the first two that way, which SXSW hath dubbed Interactive.

Which is, of course, the Internet. Or more exactly, the hapless wretches who want to make money from it because, this being 2013, what else are they going to do – build real stuff and sell it? They seek to profit directly, by coming up with an awesome app like Foursquare which, as every article about this topic is required by law to mention, launched at SXSW in 2009 (and which said articles are never allowed to say, is pretty boring and useless and lame and, anyway, isn’t it kind of sad to have to point back four years to find a Big SXSW Launch?). Either that, or indirectly – by sucking dry a gullible VC (venture capitalist).

In case you’re wondering what goes on SXSW and why you should care, here’s what (why comes later; feel free to skip ahead, I would if I didn’t have to write this):

It’s a bunch of incredibly douchey – you think you know douche? you think you’ve met douches? oh, no, not like these douches you don’t – 25-to-37-year-old wannabentrepreneurs trying to market Webby things, 99% of which are apps for smartphones. And 99% of those 99% of those apps are redundant.

Redundant as in: “You can find restaurants in your area and review them. You can talk to other patrons about them in our online community.”

“Like Yelp?”

“Yeah, well, yes, but…”

“Like Yelp?”

Sad confused face.

I told you they were douches.

Speaking of which:

So during SXSW 2012 I wandered down to the lobby of my hotel to get coffee. Some douches were ambling zombie-aimlessly around, heads cocked in the familiar 20°-forward-head-tilt-toward-iPhone position. Other douches were clustered on the floor, deeply engaged in a random hackathon that accomplished little more than stressing the Hilton’s already technorati-overburned wi-fi network. But that still left other douches to notice that I wasn’t wearing shoes.

“Dude,” a tall male douche, about 32 years old, smiled at me. And pointed at my feet.

“What?” I asked, grouchily. Which was appropriate, considering that he was standing between me and the coffee line. Which was long. Shilling redundant apps requires caffeine as well as gall.

“No shoes,” he replied. “What are you promoting?” He actually seemed interested in my answer to his question.

Another douche, apparently the first douche’s comrade, joined us. “Hey, that’s great!” the second douche chimed in. “Are you repping a foot app? A shoe app? What is it? I gotta know! Hey guys” – he motioned toward a small douche-flock – “check it out!”

They were visibly, crushed-like-kids-who-got-lame-presents-on-Christmas-morn disappointed by my explanation, which was boring and simple: I didn’t feel like putting on shoes since I was just going back upstairs to my room. They thought I was lying.

“No one just doesn’t wear shoes,” the first douche accused. “You are promoting something.” Because, you know, the way you promote a product is by refusing to admit it.

To paraphrase Bruce Springsteen and Dave Edmunds, from big dumb things small dumb things one day come. So what came out of tens of thousands of douches dropping millions of dollars into Austin’s tourism industry?

“The breakout star of [the 2012] SXSW was Highlight, a location-aware app that alerts you when people you know are nearby, and attempts to introduce you to people you might want to know,” the Austin Business Journal reported. “Highlight dominated the buzz at the conference and was crowned the winner early on. However, it struggled to expand afterward because it was a battery hog, and it didn’t work as well outside of SXSW’s target-rich environment, where everyone was using it.” Which is why you’ve never heard of it.

So anyway, this year was more of the same. It was depressing and maddening. Except, without anything as thrilling as Highlight. It was also enlightening. Because SXSW is a metaphor for what’s going on in the American economy.

Like most U.S. businesses, SXSW attendees wanted to sell stuff. The problem was, no one wanted to buy, or hire, or invest.

So no one was selling or getting hired or invested in.

If the balance in Austin at SXSW and in the U.S. (and for that matter internationally) were less extreme – if, in Marxist terms, the oversupply of production merely exceeded rather than dwarfed consumer demand – you’d merely have downward pressure on wages and prices. Which, in fact, we’ve seen since the end of the Vietnam War. And isn’t good.

As things stand, the demand side – companies that want to hire people, which increases the number of goods and services consumers want to buy – is virtually nonexistent. And that’s catastrophic. The U.S. economy added 177,000 jobs in January, 237,000 in February, and 158,000 in March. Moody’s Analytics chief economist Mark Zandi estimates that overall growth is running at about 175,000 a month. Since the U.S. needs to add 180,000 jobs per month just to keep up with population growth, the U.S. in “recovery” is losing 5,000 jobs a month. “If that’s the case, underlying job growth is not changed appreciably,” Zandi says dryly.

Sassy ex-Reagan budget chief David Stockman – say what you will about his blame-the-Fed politics, he’s the most thrilling economist-writer ever – says America is doomed because of failed government intervention. “The United States is broke — fiscally, morally, intellectually — and the Fed has incited a global currency war (Japan just signed up, the Brazilians and Chinese are angry, and the German-dominated euro zone is crumbling) that will soon overwhelm it. When the latest [Wall Street] bubble pops, there will be nothing to stop the collapse.”

Stockman is probably wrong about the why – more old-fashioned socialist state control would have avoided or at least mitigated this mess by redistributing wealth, thus stimulating consumer demand – but right about the what. When you’ve got a marketplace full of would-be sellers but no one who wants to buy, you’ve got no market at all.

All that’s left is a bunch of douchebags looking at your feet.

(Ted Rall’s website is tedrall.com. His book “After We Kill You, We Will Welcome You Back As Honored Guests: Unembedded in Afghanistan” will be released in November by Farrar, Straus & Giroux.)

COPYRIGHT 2013 TED RALL

SYNDICATED COLUMN: Recovery? What Recovery?

Behind the New Jobs Numbers, Dull Statistics Tell a Terrifying Story

“Worst U.S. Jobs Data in a Year Signals Stalling Recovery,” The New York Times ran as its lead headline on June 2. The Labor Department reported that the U.S. economy created 69,000 jobs during May. The three-month job-creation average was 96,000. Unemployment ticked up a tenth of a point, from 8.1 to 8.2 percent.

Once again, the media is downplaying a blockbuster story—recovery? what recovery?—by dulling it down with a pile of dry, impenetrable statistics.

Wonder why you can’t find a job or get a raise, and your house has been sitting on the market for years? The new jobs numbers are the key to understanding how bad the economy is—and why it’s not likely to get better any time soon.

Q: If nearly 100,000 Americans per month are finding jobs, why are securities markets tumbling?

A: Because it’s actually a net jobs loss. The U.S. population is growing, so the work force is too. We need 125,000 new jobs a month just to keep up with population growth. “In the last 22 months, businesses have created more than three million jobs,” President Obama claimed in his January 2012 State of the Union speech. True or not, a more straightforward claim would have been net job creation: 350,000 jobs over 22 months, or 15,000 per month. (Politifact rates Obama’s line as Half True.)

Q: If we’re losing jobs, why is the unemployment rate hovering? Why isn’t it going up faster?

A: Discouraged workers, i.e. people who would take a job, but have given up looking, don’t count as officially unemployed. Neither do those whose unemployment benefits have run out, yet haven’t found new work. Ditto for those who are underemployed—a laid-off middle manager who earned $100,000, now scraping by on a fraction of her former salary by taking odd jobs.

The officially unemployed—men and women who lost their jobs recently enough to still collect unemployment benefits—are remaining more or less steady. Since the number of long-term unemployed is rising, however, the unofficially unemployed is growing fast—but neither the government nor the media acknowledges their existence.

To muddy things up even further, the feds have rejiggered the numbers to make it look like there are fewer officially unemployed than there used to be. The respected blog Shadow Government Statistics, which calculates unemployment using the way the Labor Department did until the 1980s, says this Alternate Unemployment Rate is about 23 percent—about the same as at the peak of the Great Depression.

No wonder why there are so many empty storefronts.

The really interesting number is the Labor Force Participation Rate: how many people want a job, but don’t bother blitzing the Internet with their resume? Melinda Pitts of the Atlanta branch of the Federal Reserve Bank points to “marginally attached” “nonparticipants” in the labor force. “A nonparticipant who is marginally attached indicates they want employment or are available for employment. Also, they indicate having looked for a job in the previous year but not actively looking for a job at present,” she says. This group is failing to return to the “real” labor force at higher rates than in the past.

Q: So what’s up?

A: The jobs figures reflect a big structural problem in the U.S. economy. Real wages have been steadily dropping since the 1970s. We’re creating a permanent class of unemployed and underemployed. And there’s no help on the way from government or private sector, both of which are cutting back and laying off. Even if we got “up” to 125,000 new jobs a month, that would still leave at least 8.1 million people who lost jobs between 2007 and 2010 out of work.

That’s a huge hole. Taking Obama at his Half True word of 15,000 net new jobs a month, it would take 45 years to find gigs for the victims of the 2007-to-2010 subprime mortgage meltdown. Only something big and dramatic, like a new FDR-style Works Progress Administration, could fill it. “Normal” post-recession growth can’t do it. And this recovery—if you can call it that—is anemic at best.

Q: Anything else?

A: Yeah. Jobs don’t equal jobs. If you replace a $70,000-a-year job with a $60,000-a-year job, that’s a net decline in income. Politicians will claim that the old lost jobs have been replaced with new ones, but multiply that trend over millions of workers, and you’ll see reduced consumer spending. Among the still-employed, inflation-adjusted wages are dropping.

Oh, and what about the debts people accrued while they were between jobs? Because many employers refuse to hire jobseekers with bad credit, the unemployed are punished for being unemployed with…more unemployment. As for those who return to work, even workers who get the same pay have to pay off credit card bills they lived on.

The economy is a whale of a problem. But politicians of both parties—and the media—are only paying it the thinnest of lip service.

(Ted Rall’s next book is “The Book of Obama: How We Went From Hope and Change to the Age of Revolt,” out this week. His website is tedrall.com. This column originally appeared at MSNBC.com)

(C) 2012 TED RALL, ALL RIGHTS RESERVED.

SYNDICATED COLUMN: The Corpse-Urinating Kids Are Alright

More Jobs for Our Valiant Marine Heroes

“Eighteen, 19-year-old kids make stupid mistakes all too often and that’s what occurred here.”

This was the nuanced reaction of Rick Perry, governor of the supposedly important state of Texas, who has signed dozens of death warrants (at least one for an innocent man), who thinks he deserves to be president, to a video of Marines in U.S.-occupied Afghanistan peeing on dead Afghan resistance fighters.

“Golden, like a shower,” says one.

Nice.

Amazing to watch how ten years and the catastrophic American military defeats in Iraq and Afghanistan have changed our views about the shock troops of American militarism. After 9/11 our sainted soldiers could do no wrong. They were inherently noble. They were heroes. Even liberals said so.

Uneducated and ignorant, yes, but these brave young men and women deserved our gratitude for defending our freedoms against the Islamofascist hordes lest a land bridge somehow appear between the Old and New Worlds. Who cared 85 percent of U.S. troops in Iraq told a 2006 Zogby poll that their mission was “to retaliate for Saddam’s role in the 9/11 attacks”?

They had big hearts. And small brains. The rapists of Abu Ghraib and Guantánamo, the murderers of Bagram, the rapist-murderers of Haditha? Just a few bad apples.

No longer. Defeat has followed defeat. Each “successful” drone strike against “enemy militants” in Afghanistan and Pakistan gets followed by a sheepish “well, yeah, they were all innocent women and children” press release. War grates on the nerves; losing wars are worse. Why, broke and jobless Americans, are we still spending $1 million a year per soldier to chase down one Al Qaeda #2 after another?

America’s glorious crusade is over. We know the U.S. mission in Afghanistan is to subjugate, terrorize and brutalize the local population. Even state-controlled media admits it.

“There is no question that the Taliban are brutal, including against their own people,” opines The New York Times editorial board. “The 1,000-man battalion lost seven men during its seven months in Helmand. But the stress of combat cannot excuse desecrating corpses—not to mention filming it.”

Love that last emphasis.

How many zillions of times have similar or worse outrages been carried out by soldiers smart enough to keep their camera cellphones in their pockets?

Not to mention the disproportionality. It sucks to lose seven people. Especially if you’re one of them. How many Afghans did that unit kill during those same seven months? They killed four—the ones they peed on—in a single day. As for Taliban brutality—well, they are Afghans. What are we doing over in their country?

Memo to U.S. forces: OK to invade foreign nation that posed no threat. OK to occupy said country for years. OK to impose a corrupt puppet government. OK to kill the locals. Probably OK to piss on them. Just don’t film it.

Of all the many stupid things Rick Perry has said during his political career his defense of the piss-and-vinegar marines rank among one of the smartest. Perry is right: they are dumb kids.

Which prompts a Big Question. We don’t trust kids to drink. Hell, you can’t even rent a car until you’re 25. So why do we outfit a bunch of dumb 18- and 19-year-old kids prone to making “stupid mistakes all too often” with high-powered automatic weapons, then unleash them with a license to kill hapless foreigners?

Thanks to Rick Perry, the answer is clear:

Plausible excusability.

War crimes is just what dumb kids does. No one’s fault. Just is.

This blame-the-brats approach has a lot of potential for America’s hapless ruling class. Like, get rid of the weird cabals of angry old country-club neo-cons. The next time we want to gin up a quagmire from thin air, let’s assign the job of choosing the target and marketing the war to a bunch of dumb 18- and 19-year-olds from West Virginia. Whatever goes wrong won’t be anyone’s actual fault.

Plausible excusability—they’re just dumb kids!—works for domestic policy too.

Whenever the government is in the mood to shovel hundreds of billions of taxpayer dollars into the coffers of giant banks while ignoring the plight of the un- and underemployed, keep the gray old men of the Fed out of it. Roll a few kegs over to the nearest frat and let the freshman and sophomore econ majors have at it. So the global economy tanks. Who cares? Just a buncha stupid kids doing stupid kid stuff.

What’s that?

Don’t blame me if this column is stupid. I took the week off.

Stupid kids.

(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)

COPYRIGHT 2012 TED RALL

SYNDICATED COLUMN: 7-7-7

Jobless? Face It: Obama’s Not That Into You

Forget Herman Cain’s 9-9-9. The battle cry for every American ought to be 7-7-7.

7-7-7: for the $7.7 trillion the Bush and Obama Administrations secretly funneled to the banksters.

Remember the $700 billion bailout that prompted rage from right to left? Which inspired millions to join the Tea Party and the Occupy movements? Turns out that that was a mere drop in the bucket, less than a tenth of what the Federal Reserve Bank doled out to the big banks.

Bloomberg Markets Magazine reports a shocking story that emerged from tens of thousands of documents released under the Freedom of Information Act: by March 2009, the Fed shelled out $7.77 trillion “to rescuing the financial system, more than half the value of everything produced in the U.S. that year.”

The U.S. national debt is currently a record $14 trillion.

We knew that the Fed and the White House were pawns of Wall Street. What’s new is the scale of the conspiracy.

Even the most jaded financial reporters were stunned at the extent of collusion: “The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates.”

Citigroup earned an extra $1.8 billion by reinvesting the Fed’s below-market loans. Bank of America made $1.5 billion.

Bear in mind, that’s only through March 2009.

“Many Americans are struggling to understand why banks deserve such preferential treatment while millions of homeowners are being denied assistance and are at increasing risk of foreclosure,” wrote Representative Elijah Cummings, a ranking member of the House Committee on Oversight and Government Reform who is demanding an investigation.

Indeed we are.

This stinks. It’s terrible economics. And it’s unbelievably cruel.

First the economics. The bank bailouts were supposed to loosen credit in order to encourage lending, investment, job creation and ultimately consumer spending. It didn’t work. Banks and corporations alike are hoarding cash. President Obama, who promised 4 million net new jobs by earlier this year, has been reduced to claiming that unemployment would have been even higher without the bailouts.

Ask any business executive why nobody is hiring and they’ll blame the lack of consumer demand. If the ultimate goal is to put more money into people’s pockets, why not just, you know, put more money into people’s pockets?

Bank executives used federal taxdollars to pay themselves tens of billions in bonuses and renovate their corporate headquarters. We the people got 0-0-0. What if we’d gotten 7-7-7 instead?

Every man, woman in child in the United States would have received $24,000.

A family of four would have gotten $96,000.

And that’s without an income test.

New data from the U.S. Census Bureau shows that 100 million American citizens—one of out of three—subsists below or just above the official poverty line. Demographers, statisticians and economists were stunned. “These numbers are higher than we anticipated,” Trudi J. Renwick, the bureau’s chief poverty statistician, told The New York Times. “There are more people struggling than the official numbers show.”

For four decades progressive economists have warned that the middle-class was being eroded, that the United States would become a Third World country if income inequality continued to expand. They can stop. We’re there.

These poor and “near poor” Americans comprise the vast majority of the uninsured, un- and underemployed, and foreclosure victims. If Bush-Obama’s 7-7-7 Plan had gone to each one of these 100 million misérables instead of Citigroup and Bank of America, the IRS would have mailed out 100 million checks for $77,700 each.

This would have paid off a lot of credit cards. Kept millions in their homes, protecting neighborhood property values. Allowed millions to see a doctor. Paid for food.

A lot of the money would have been “wasted” on new cars, Xboxes—maybe even a renovation or two. All of which would have created a buttload of consumer demand.

If you’re a “99er”—one of millions who have run out of unemployment benefits—Obama’s plan for you is 0-0-0.

If you’re one of the roughly 20 million homeowners who have lost or are about to lose your house to foreclosure—most likely to a bank using fraudulent loan documents—you get 0-0-0.

If you’re a teacher asking for a raise, or a parent caring for a sick child or parent, or just an ordinary worker hobbling to work on an old car that needs to be replaced, all you’ll get is 0-0-0.

There isn’t any money to help you.

We don’t have the budget.

We’re broke.

You can’t get the bank to call you back about refinancing, much less the attention of your Congressman.

But not if you’re a banker.

Bankers get their calls returned. They get anything they want.

There’s always a budget for them.

They get 7-7-7.

(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)

COPYRIGHT 2011 TED RALL