Let Paulson Go … And Free the Alternative Media, Too!
By Staff News & Analysis - November 30, 2011

How Paulson Gave Hedge Funds Advance Warning … After a perfunctory discussion of the market turmoil, the fund manager says, the discussion turned to Fannie Mae and Freddie Mac. Paulson said he had erred by not punishing Bear Stearns shareholders more severely. The secretary, then 62, went on to describe a possible scenario for placing Fannie and Freddie into "conservatorship" — a government seizure designed to allow the firms to continue operations despite heavy losses in the mortgage markets … Paulson explained that under this scenario, the common stock of the two government-sponsored enterprises, or GSEs, would be effectively wiped out. So too would the various classes of preferred stock, he said. The fund manager says he was shocked that Paulson would furnish such specific information — to his mind, leaving little doubt that the Treasury Department would carry out the plan. The managers attending the meeting were thus given a choice opportunity to trade on that information. – Bloomberg

Dominant Social Theme: Paulson is a crook and he ought to be prosecuted to the full extent of the law.

Free-Market Analysis: Here come the Pecora Hearings! The powers-that-be are efficiently and cold-bloodedly preparing the guillotine for Wall Street. Good! The libertarian alternative media rejoices. Say what?

Yup … With the possible exception of Lew Rockwell, almost every libertarian in the US seems on board with this specific dominant social theme: Hanging is too good for Paulson, et al. The guillotine is a much better idea! Rosie O'Donnell said it herself!

We humbly beg to disagree. We've been doing this formally for a decade now and we've never seen anything like it. Major websites that have spent years decrying the current system suddenly want to use every part of it.

That's right. Major alternative media that catalogued the decline and fall of freedom in America are now actively writing and posting articles about how Wall Street crooks should be tried by Fedgov and the full "penalty of the law" ought to be exercised.

Paulson, for instance, may be guilty of passing along insider information (which wasn't even a "crime" 20 years ago). Goldman Sachs, Merrill Lynch, JP Morgan … the bankers that work for these organizations are guilty as charged … string 'em up. Doesn't matter why. Use the full power of Fedgov to punish them!

Chop off their heads. Failing that, lock 'em up and throw away the key. Put them in cells where they will be raped and beaten up. Leave them to the mercies of the US prison-industrial complex. Use the full force of current authoritarian resources to make sure they never come up for air again.

So much for principal, eh? Sure, the American system of finance and justice is rotten to the core. The West as a civilization is failing. Its elites have betrayed us. That seems evident and obvious.

But why is the alternative media so keen on employing the instruments of the West's corruption? Sure, as has been pointed out, it's an outrage that police officers are tasering people and killing them. But when it comes to Wall Street bankers, send in the police!

Sure, the judicial system is corrupt and broken. But when it comes to Wall Street bankers, use it to the full extent of the law.

Sure, the laws themselves are propounded by an out-of-control elite. But when it comes to Wall Street bankers, use those laws and to punish any and every evidence of a "crime."

The current protest movements attracting attention seem part of a larger case of directed history to us. But this doesn't seem to be stopping the alternative media that is tracking every move as if it is legitimate.

Yes, there are PEOPLE within the movement who understand that OWS ought to be fighting for freedom, not for using the state itself and all of its painfully acquired paraphernalia for purposes of further punishment. There are surely alternatives. One could, say … return to the PRIVATE justice systems of the past 25,000 years.

This public system, in which the state is legislator, poice authority, prosecutor, jury, judge and penal warden (sense any conflict of interest?) has only been around about a century or two. It is extraordinarily expensive, however, and thus won't be around for long we figure. Too bad. People will have to pay their VICTIMS in the future instead of paying their "debt to society" whatever that means.

But the larger movement, including the nascent libertarian movement, seems to us to be baying for blood; many of the largest of the so-called libertarian "alternative media" sites are going right along with it. In fact, that's why we've been running articles comparing what's going on to the French Revolution.

We've been trying to point out that when you use the instruments of the state to punish people that you don't like, you're playing into the hands of the power elite that has cleverly set this trap just for you. Here are some articles we've written on the subject:

The Real Reason Bloomberg Sued to Open Up Fed Records?

Paris Hilton Buys a Ferrari: Off With Her Head

And, yes, we think it IS a trap of sorts. In yesterday's article, "The Real Reason Bloomberg Sued to Open Up Fed Records," we pointed out that the result of what the organization has found seemed to be focusing more wrath not on the Fed (the root of the problem) but on Wall Street, which is basically an intermediary, a transactional business (and would be, again, absent central bank Money Power).

This article on Paulson just seems to reinforce the meme. Every day it becomes clearer. Anger is being whipped up deliberately. And when people are angry they want to use the very tools of repression that have so hurt and damaged America and the West.

How sad. How clever! You know, we once were kinda amused by Bloomberg. It looked like a wire service and employed lots of people "breaking news" but the news it broke was never all that compelling, or not to us anyway. Boy, has that changed …

In a series of blockbuster reports, Bloomberg is just coming out with incredible exposés. It sued the Federal Reserve and now we know that corrupt Fed honchos gave away US$16 trillion to their "best buds" at failing commercial banks.

And now there is this astonishing blow-by-blow exposé about how Hank Paulson managed to provide "inside information" about what was going on just before TARP was generated by the Bush Administration, which ended up giving US$700 billion to a variety of failing financial entities.

So what's changed? Why is Bloomberg suddenly one of the hottest, toughest, wire services around? Because, as we pointed out yesterday, the idea is likely to whip people up. Here's what we wrote:

Over and over on these modest pages we've written that the real power resides with the power elite and its ability to print money-from-nothing using central banks. These people want to run the world (formally as opposed to informally) and they have created a faux reality we call "dreamtime" in order to facilitate their cause.

Part of that reality includes a kind of rhetorical escape hatch. When this turgid, unstable central-banking system collapses (as it does over and over again) the powers-that-be point their collective finger at their favorite scapegoat: the Securities Industry – especially in America where it is most powerful.

In fact, here is how you can tell an apologist-for-the-system from a freedom-fighter in this "sophisticated" day and age: They will claim the problem lies with Wall Street crookery rather than with the larger system of printing counterfeit money (central banking).

And thus our conclusion as regards Bloomberg. Mike Bloomberg himself is surely a card-carrying member of the elite, isn't he? His firm was given tremendous advantages by Merrill Lynch that initially held 30 percent of his firm and supposedly in return gave him insider prices on long Treasuries from their Desk. That's why people bought his machines initially, as we understand it, not for their "technology."

So Mike does what's necessary to save the franchise, in our humble opinion (the Fed franchise). He even sues to force the US Federal Reserve to open up its books about its 2008 bailouts. (Yes, we know, during the course of the legal action the reporter from Bloomberg who initiated it died of a heart attack but Bloomberg as a corporation persevered).

As a result, we now know that the Fed disbursed some US$13 trillion to American commercial banks! This has caused a firestorm. But watch … The powers-that-be, the manipulators behind this latest elite meme will NOT blame the Federal Reserve. They will chase after the "crooks" on Wall Street.

Yeah, we think we "get it." Of course, people will say that Paulson and Goldman and JP Morgan are part of the "power elite" – and they will be wrong. The power elite and its system is one thing … MONEY POWER, the ability to print money-from-nothing via central banks and control that process.

Last time we looked Goldman, Paulson and the others didn't have that power. We know who has it, though, or we think we do. Anything else is just a distraction. (And, yes, Bloomberg probably doesn't have REAL power either, but we figure in this case, he's carrying the "right water," for now anyway.)

The idea is to make people so mad that will use the system AS IT IS to attack the "corruption" that is being reported (on purpose) to make them angry. This sort of reporting is supposed to be POLARIZING, and it is. People are supposed to fall in line behind the very aspects of Money Power they've spent years criticizing!

No more questions about the SEC. Beef it up! No more questions about Barack Obama or the US Justice Department. Use it and prosecute to the full extent of the law. No more questions about the US penal-industrial complex and its slave labor. Throw the bad guys in the Gulag and let them rot!

After Thoughts

So much for America's libertarian movement. Sure, the system is increasingly authoritarian, operates like a Gulag and threatens EVERYONE'S freedom. But, hey … let's use it for all its worth to beat up "crooks." Let's get behind it! We'll change it later …