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Those derivatives!

Firstly I should say that I'm soon returning to the Philippines to continue work in empowering the poor through food security, something I spent most of this year doing. I await Father Benigno Beltran http://www.pinoyboomer.com/featured-beltran.html , an activist priest who was among them when the people of the Philippines rose up in the first non violent peoples revolution and defeated the dictator Marcos. He will speak at UCSB's Multi Cultural Center at 7pm on November 17th shortly before we both return to Manila.

Many comments from Occupy friends re: "show how (with research and heart) certain issues are dependent on others"

Once again, and to some progressives surprise, the News Press got the story right. They quote Mr. Mrstik in that the essence of the problem is that our supposed representatives in DC are bought out by corporations and special interests. Money in politics is the tool that the one percent uses! I will try to explain why other issues are dependent upon money in politics, campaign donations and lobbying. Bear with me if you wish. Corporations by their nature are beholding only to their stockholders, unfortunately. John Steinbeck wrote about this in many of his works. This will involve a run on sentence and I apologize to English majors. So IF the government suspends regulations that prohibit dangerous and fraudulent collaboration, as they did with the repeal of Glass Steagall Act, IF lobbyists in government positions, such as Robert Rubin and Larry Summers, prevent regulators from regulating new financial creations like derivatives (including mortgage backed derivatives and CDOs or Credit Default Swaps) from being regulated by the appropriate honest regulators (see "The Warning" http://www.pbs.org/wgbh/pages/frontline/warning/view/ , a Frontline Special about this), which they did, and IF rating agencies rate the fraudulent derivatives as AAA, which they did, then the corporations such as B of A, Wells Fargo etc are doing what they were intended to do. The subsequent bail outs of the banks were caused by the rating by Standard and Poors of the derivatives as AAA investments and the banks utilization of the derivatives as AAA investments. It is my understanding that almost all of the bailouts have been paid back and that the government earned money on them. The packaging of the mortgage backed securities and the phony insurance called credit default swaps that were supposed to cover them were handled by several large financial giants, including Goldman Sachs and JP Morgan Chase. It was a perfect fraudulent storm initiated by the repeal of the Glass Steagall Act and the failure of regulator Brooksley Born to regulate the derivatives (again, see "The Warning"). The results of the bank's holding of the derivatives is not complete, trillions are still held by banks. Goldman Sachs in Athens convinced Greece to use derivatives to shelter growing debt, sparking the financial problems there. The same happened in Iceland where derivatives cooked up by the US financial frauds brought the economy down.

Capitalism is still highly respected among the public. They don't use the term much but currently the most beloved figure seems to be one that created demand for some of the most destructive mining and labor practices in the world while exporting nearly a million jobs that could have been US jobs....Steve Jobs!:

http://blog.redemtech.com/2011/06/conflict-mineral-rare-earth-elements-e-waste-and-you.html

http://www.guardian.co.uk/commentisfree/2010/aug/28/editorial-congo-rapes-mineral-mines

Lastly, recent news and revelations show that the lobbyists still run economic policy, not surprisingly since Larry Summers is still chief economic advisor. In his new book "Confidence Men", Ron Suskind reveals that Obama gave orders to break up the biggest banks but Summers and his team would not obey the President:

http://www.ronsuskind.com/confidencemen/

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