Larry Summers: Goldman Sacked

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Vatic Note:  Sorry for the lateness of this, but the powers that be gutted my vatic note on the first one up and so I have had to substitute a different one since I don't remember what the first one was about.  I have a stash of stories I had been researching and that is what I take these from and flush them out and add my vatic  note with my thoughts and analysis. So please bear with us, through these incessant harassments of these evil slugs that devour peoples labor and capital.  They apparently don't like my vatic notes, since that is what they attack all the time.

Larry Summers, if most of you remember was the IMF goldman sachs slag that was assigned to go into third world countries and get them into debt and use resources as collateral, and then put in terms that were impossible for the borrowing country to meet.  When that would happen Summers' bankers would end up owning the gold mines, or the oil rights, fertile land for agriculture, or water rights of that third world country.  The result was starvation on an unprecedented scale. 

He was selected for that and was kicked out of Argentina at one time for his shinanigans. And his minions were kicked out of Iceland, so he was more of a lightening rod for the Feds opponents than anything else.  Now you know why they selected him for us as US treasurer.  Goldman sachs and the Fed were his primary stomping grounds for these unethical and inhuman criminal practices. 

Thieves basically......In our blog about the history of  the US, you will find out just how big a role Britain plays over the centuries,  time after time, in trying to bring down the USA.  They have finally joined with the khazar bankers to do the job and they use such slacks as Summers,  Geitner, Paulson,  etc. who are Rothschilds people who worked for Rothschilds Goldman Sachs  to do the dirty work.

Two of our supposed best allies, are in fact our  biggest enemies.  Israel and Britain.  I refuse to call Britain "Great", since it has  proven time and again, they are anything but great.  In fact, the US became great once they got away from Britain and Rothschilds anal retentive controlling repression and sucking the country dry, like they have done to their own country.  They  lack souls, so they also lack creativity and ingenuity  or any leaning toward putting their skills to work for something good instead of raping and pillaging others hard work and wealth generation.

I see them more as an international mafia of criminal activity, than I do as a vehicle for entrepreneurship. I say good riddance to him. 

Larry Summers:  Goldman Sacked
by Greg Palast, US 4 Campaign

Joseph Stiglitz couldn't believe his ears.  Here they were in the White House, with President Bill Clinton asking the chiefs of the US Treasury for guidance on the life and death of America's economy, when the Deputy Secretary of the Treasury Larry Summers turns to his boss, Secretary Robert Rubin, and says, "What would Goldman think of that?"


Then, at another meeting, Summers said it again:  What would Goldman think?

A shocked Stiglitz, then Chairman of the President's Council of Economic Advisors, told me he’d turned to Summers, and asked if Summers thought it appropriate to decide US economic policy based on “what Goldman thought.”  As opposed to say, the facts, or say, the needs of the American public, you know, all that stuff that we heard in Cabinet meetings on The West Wing.

Summers looked at Stiglitz like Stiglitz was some kind of naive fool who'd read too many civics books.

R.I.P. Larry Summers
On Sunday afternoon, facing a revolt by his own party’s senators, Obama dumped Larry as likely replacement for Ben Bernanke as Chairman of the Federal Reserve Board. 

Until news came that Summers’ torch had been snuffed, I was going to write another column about Larry, the Typhoid Mary of Economics.  (My first, in The Guardian, 15 years ago, warned that “Summers is, in fact, a colony of aliens sent to Earth to turn humans into a cheap source of protein.”)

But the fact that Obama even tried to shove Summers down the planet’s throat tells us more about Obama than Summers—and whom Obama works for.  Hint:  You aren’t one of them.

All these Cabinet discussions back in the 1990s requiring the blessing of Goldman Sachs revolved around the Rubin-Summers idea of ending regulation of the US banking system.  To free the US economy, Summers argued, all you'd have to do is allow commercial banks to bet government-guaranteed savings on new "derivatives products," let banks sell high-risk sub-prime mortgage securities and cut their reserves against losses.

What could possibly go wrong?
Stiglitz, who would go on to win the Nobel Prize in Economics, tried to tell them exactly what would go wrong.  But when he tried, he was replaced and exiled.
Summers did more than ask Rubin to channel the spirit of Goldman: Summers secretly called and met with Goldman's new CEO at the time, Jon Corzine, to plan out the planet’s financial deregulation. I’m not guessing:  I have the confidential memo to Summers reminding him to call Corzine.

[For the complete story of that memo and a copy of it, read The Confidential Memo at the Heart of the Global Financial Crisis.]

Summers, as Treasury official, can call any banker he damn well pleases.  But not secretly.  And absolutely not to scheme over details of policies that could make a bank billions.  And Goldman did make billions on those plans.

Example:  Goldman and clients pocketed $4 billion on the collapse of “synthetic collateralized debt obligations”—flim-flam feathers sold to suckers and dimwits i.e. the bankers at RBS.  (See Did Fabrice Tourre Really Create The Global Financial Crisis?)

Goldman also cashed in big on the implosion of Greece’s debt via secret derivatives trades permitted by Summers’ decriminalization of such cross-border financial gaming.
The collapse of the euro-zone and the US mortgage market caused by Bankers Gone Wild was made possible only by Treasury Secretary Summers lobbying for the Commodities Futures Modernization Act which banned regulators from controlling the 100,000% increase in derivatives assets, especially super-risky "naked" credit-default swaps.

The CMFA was the financial equivalent of a fire department banning smoke alarms.

Summers took over the Treasury's reins from Rubin who’d left to become director of a strange new financial behemoth:  The combine of Citibank with and an investment bank, Travelers. The new bank beast went bankrupt and required $50 billion in bail-out funds.  (Goldman did not require any bail-out funds–but took $10 billion anyway.)

Other banks-turned-casinos followed Citi into insolvency.  Most got bail-outs ... and got Larry Summers–or, at least, Larry's lips for "consulting" or for gold-plated speaking gigs.

Derivatives trader D.E. Shaw paid Summers $5 million for a couple of years of "part-time" work.  This added to payments from Citigroup, Goldman and other finance houses, raising the net worth of this once penurious professor to more than $31 million.

Foreclosure fills the Golden Sacks
When Summers left Treasury in 2000, The New York Times reports that a grateful Rubin got Summers the post of President of Harvard University—from which Summers was fired. He gambled away over half a billion dollars of the university’s endowment on those crazy derivatives he’d legalized.  (Given Summers’ almost pathological inability to understand finance, it was most odd that, while President of the university, he suggested that humans with vaginas aren’t very good with numbers.)

In 2009, Summers, Daddy of the Deregulation Disaster, returned to the Cabinet in triumph. Barack Obama crowned him “Economics Tsar,” allowing Summers to run the Treasury without having to be questioned by Congress in a formal confirmation hearing.

As Economics Tsar in Obama's first term, did Summers redeem himself?

Not a chance.

In 2008, both Democrat Hillary Clinton and Republican John McCain called for using the $300 billion remaining in the "bail-out' fund for a foreclosure-blocking program identical to the one Franklin Roosevelt had used to pull the US out of the Great Depression.  But Tsar Larry would have none of it, although banks had been given $400 billion from the same fund.

Indeed, on the advice of Summers and his wee assistant, Treasury Secretary Tim Geithner, Obama spent only $7 billon of the $300 billion available to save US homeowners.

What would Goldman think? 
As noted, Goldman and clients pocketed billions as a result of Obama’s abandonment of 3.9 million families whose homes were repossessed during his first term.  While American homeowners were drowning, Tsar Summers torpedoed their lifeboat:  a plan to prevent foreclosures by forcing banks to write-off the overcharges in predatory sub-prime mortgages.  Notably, Summers’ action (and Obama's inaction) saved Citibank billions.

Loan Shark Larry
The deregulation disaster machinery is not done with mangling Americans.  While not-for-profit credit unions, lenders of last resort for working people and the poor in the US, have been under legal and political attack, a new kind of banking operation has bubbled out of the minds of the grifters looking for a way to make loan-sharking legit.

One new outfit, for example, called “Lending Club,” has figured out a way to collect fees for arranging loans charging as much as 29%.  Lending Club claims it cannot and should not be regulated by the Federal Reserve or other banking police.  The recent addition to its Board of Directors:  Larry Summers.

If you want to know why Obama would choose such a grifter and gamer to head the Fed, you have to ask, Who picked Obama?  Ten years ago, Barry Obama was a nothing, a State Senator from the South Side of Chicago.

But then, he got lucky.  A local bank, Superior, was shut down by regulators for mortgage shenanigans ripping off Black folk.  The bank’s Chairwoman, Penny Pritzker was so angry at regulators, she decided to eliminate them:  and that required a new President.

The billionaires connected Obama to Jamie Dimon of J.P. Morgan, but most importantly to Robert Rubin, former Treasury Secretary, but most important, former CEO of Goldman Sachs and mentor of Larry Summers.  Without Rubin’s blessing and overwhelming fundraising power, Obama would still be arguing over zoning on Halsted Street.

Rubin picked Obama and Obama picks whom Rubin picks for him.

Because, in the end, Obama knows he must choose a Fed chief based on the answer to one question:  What would Goldman think?

Special thanks to expert Lori Wallach of Public Citizen without whom our investigation could not have begun.

For the complete story of the investigation of Larry Summers, the "End Game" memo and the finance crisis, see Palast's highly acclaimed book Vultures' Picnic.
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Greg Palast is also the author of the New York Times bestsellers, Billionaires & Ballot BanditsThe Best Democracy Money Can Buy and Armed Madhouse.
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Anonymous said...

I have to disagree on the part of who picked Obama, cuz all articles within the past 5 years or so point to the fact that he was groomed for that position long ago. Given all the circumstances surrounding us now. That seems plausible and undeniable.

Vatic Master said...

You are absolutely right. We did several blogs on that issue. His grandfather was a dual Israeli citizen and his grandmother was a bank President in Hawaii who helped to launder money for the global elite through her bank. They raised Obama since he was 11 and prepared him for all this that is going on now. He was selected even longer ago than most think and managed and handled all the way through school and college. Zbig was his handler in School.

Good call. Notice on our blog about the men who crashed the financial markets in 2008, that they go more in depth and notice they talk about the world leaders all doing what Obama did, they pushed deregulation at exactly the same time that allow criminal, unethical and destructive financial acts to be done that would lead to what their true objective is which is globalizing with them running the globe. Its in the protocols written in 1897. That is how long this has gone on. Good call on your part. Thanks

Kona Occupy Discloure said...

I first learned of how Barry was groomed to be president at a 2011 Time Travel and Teleportation Symposium in Kona, when whistle blower Andrew Basiago shared how he was in Barry's class in 70's (a Military Industrial Complex operation). Everyone in that class had been hand picked via their secret looking glass technology (that whistle blower Bill Wood/Brockbrader, now in jail, talked more about in 2012) as a future president. During the 2011 symposium, I asked Alfred L Webre (war crimes lawyer) what he was seeing about Barry, now Obama, and he said they have cloned him. So I looking forward to when the real Barry can come forward soon, I hope! Thank you for your amazing articles!

Vatic Master said...

Kona, you are certainly most welcome. Thank you for your kind words about our work. We must be doing something right since they are now harassing us persistantly. LOL They are practicing their cyber shut down, since now I am unable to reach pay pal, my bank, and my email account. What does that tell you? I would read as much of this blogs info as you can before they take it down. I think that is what they are getting ready to do. We will see. If they do, it means we start going out into the field like the underground did in Europe during WW II.

Just a caustionary note. Andrew WEbre is a graduate of the elite Israeli secret society school called "Harvard", so be careful. Same school Obama supposedly attended.