Obama united US Osama divided us: The dawn of America’s distrust

OBAMA united US and Osama divided us. It is the truth the whole truth and nothing but the truth. November 4, 2008, Election Day in America, is the day when U.S. Senator Barack Hussein Obama became President-Elect of the United States of America.  In Harlem New York, citizens danced, shouted, kissed, greeted, and waved, finally, the US flag in true patriotic gestures. All over the world global citizens felt relieved from the eight year ruler-ship (2000-08) of a vindictive ‘US Pharaoh’.

After the Election, Americans said in essence “Thank God it’s over. President Bush is gone and Obama is in. America blesses God and God blesses President Obama. The Obama impact is an African American impact and the acceptance of Obama is the recognition of America and Africa in propinquity. This impact was nurtured by two loving Christian White grandparents, a global conscious thinking mother, an inheritance of his father’s genius (May they rest in peace) and a praying Kenyan grandmother. Hallelujah.

News reports state that Barack Obama's 86-year-old grandmother, Sarah Obama, said she will attend her grandson's presidential inauguration ceremony in Washington early next year.  

What challenges do President-Elect Barack Hussein Obama and his government face January 1, 2009?

“Bad Money: Reckless Finance, Failed Politics and the Global Crisis of American Capitalism" has caused the In God We Trust factor to degenerate into a culvert of distrust and niggardliness. Without trust there is no “Federal Reserve Note”. Without a trustworthy Federal Reserve note there is neither letter of credit nor memorandum of understanding, nor consumer confidence or sentiment. Channels of bancassurance in Insurance and Investments ebb from lack of trust. The motto In God We Trust is self revealing; to trust in the dollar as you trust in God is One and the same according to the founding fathers and bankers of America and Britain.  

"The task for the new president is to first restore trust and confidence," said Jim Dunigan, managing executive for investments at PNC Wealth Management. "We saw a little bit of that ... [and] people are hopeful," Dunigan said. "He's got to deliver on that early…Yet Obama could face a budget deficit wider than any seen since World War II, when measured as a proportion of the overall economy. The federal government has already approved a $700 billion bank-bailout package and additional aid may be required to keep financial institutions operating and avert a collapse in lending. Lloyd’s Dow Jones Newswires

"In these times of tremendous information flow it is critical that we communicate the right messages to the right audience and that success is determined not by the volume of information transferred but by the knowledge gained," says Navy Adm. Mike Mullen.

There are vitally two types of trusts in international relationships: a One-Way Trust and a Two-Way Trust relationship.  A One-way Trust is a typical colonial trust. You trust me (colonist) and grant me access to your properties. The one-way-trust integrationist lacks access to the colonist properties and trusts in this perverted one-way-trust relationship.  A civilized trust relationship is a Two-way Trust whereby both trustees’ has agreed upon near equivalent trust and access to each others properties.  

African-centered-leadership must secure control by constantly educating their citizens on the importance of African nationalism & patriotism, Pan Africanism and African cultural identity. The majority of US Bush backed African surrogates of American foreign policy and “Casino Capitalism” will result in financial failure.  African opposition parties and leadership who gamble with debtor governments, who borrow money to fight wars from Asian and Middle East investors, are gambling with their countries fate.  Putting your one-way trust in a debtor nation and not a banker’s trusted nation whom the debtor is indebted to is badly informed.  If America and Europe are now looking East monetarily why would an African politician look West into debtorland?

The Guardian.co.uk, 10/28/08, trillion dollar headline read: “Cost of Crash $2,800,000,000,000” – ‘Bank of England calls for reform, Markets jittery after Asian losses, Brown defends borrowing- Autumn's market mayhem has left the world's financial institutions nursing losses of $2.8tn [trillion], the Bank of England said today, as it called for fundamental reform of the global banking system to prevent a repeat of turmoil "arguably" unprecedented since the outbreak of the first world war.”
 
African statesmen should contemplate why “You can't choose the dollar when the world's financial problems radiate from the U.S.,'' according to Hideki Amikura, deputy general manager of foreign exchange at Nomura Trust & Banking Co., a unit of Japan's largest brokerage. ``Credit markets show no signs of settling down and traders are focused on whether other banks will fail.'' Or, maybe you should choose the dollar if you have a stabled Reserve Bank.

Times in America economically are very serious for the poor and middle class. The American government is bailing out and re-investing in the Wall Street war machine not her citizens’ welfare and/nor the poor and suffering globally; that includes Zimbabwe and Africa in general.

What is the present and future U.S. congressional-military-industrial complex’s present objective? Answer: Aging Nuclear Arms is what the American war machine will and always has thought of: War. The installation of war is America’s panacea for economic stimulation. Will President-Elect Barack Obama “Change” this foreign policy of aggression? My answer is no, Mr. Obama will not head Ex-President Reagan’s cliché concerning the middle east by stating “Those people have been fighting since biblical times,” hence withdrawing American troops leaving the Lebanese to solve their own affairs.

The York Dispatch today reported that: “The number of nuclear weapons in the U.S. arsenal is a state secret…and…estimate that the total stood at nearly 5,400 warheads at the start of this year. That includes an estimated 4,075 ready for potential use and 1,260 in backup status.”  When we divide the number of nuclear warheads by every conceivable nuclear weapon owning nation the equation is divide the number of warheads 5400 by 12 nations (plus Iran’s attempt to assemble a nuclear energy) is 13 which equals 415 nuclear bombs for each nuclear nation. This nuclear race in weapons is insanity of the highest order of spiritual, mental, and intellectual development. 

Therefore I am writing this current eventful article with various news media reports as food for thought and what to expect from the The Dawn of America’s Dis Trust.

Kevin Phillips concludes in his latest book Bad Money: "My summation is that American financial capitalism, at a pivotal period in the nation's history, cavalierly ventured a multiple gamble: first, financializing a hitherto more diversified U.S. economy; second, using massive quantities of debt and leverage to do so; third, following up a stock market bubble with an even larger housing and mortgage credit bubble; fourth, roughly quadrupling U.S. credit-market debt between 1987 and 2007, a scale of excess that historically unwinds; and fifth, consummating these events with a mixed fireworks of dishonesty, incompetence and quantitative negligence."

This writer believes the German led European Union, Britain, America, Russia, China, and Japan are assembling war arrangements and strategically positioning themselves monetarily, energytically, and militarily for Global War Three in the theatres of Africa, South America, and Southern Asia.  The war-casualty related medicinal opium and coca producing and shipping countries of Columbia/Peru, and Afghanistan/Pakistan are relatively secure. The world oil shipping lanes are secure while naval practice runs in the Indian Ocean with so-called African hijacking pirates are common.

Los Angeles Times Staff Writer Tim Rutten comments on “Bad Money” and ask ‘Which handles money better? A casino or Wall Street? A look at the reckless financing and political decision-making preceding the current economic crisis.’  His assessment of Phillips strategic thinking is admirable and lends meaning to why the American elite backed Harvard scholar, political scientist, intellectual, and a civilized American Barack Hussein Obama for President of the United States.

‘Who knew, for example, that former KGB agent Vladimir Putin earned the Russian equivalent of a doctorate from a prestigious St. Petersburg mining institute and that the dissertation he defended there dealt with the exploitation of natural resources as an engine of national development? As Phillips glancingly but provocatively suggests, knowing that tells us something instructive about Putin's transformation of Russia into a global oil titan, as well as about his aspirations for further development of a polar oil field with resources that may exceed Saudi Arabia's. (Phillips hasn't lost his talent for phrase making, and "kommissar kapitalism" seems a particularly apt description of Putin's Russia.)’

America's recent economic folly, for example, is neatly summarized in a remark that the British colonial secretary, Joseph Chamberlain, made in 1904 to a smug group of his country's financiers: "Granted that you are the clearinghouse of the world, [but] are you entirely beyond anxiety as to the permanence of your great position? . . . Banking is not the creator of our prosperity but is the creation of it. It is not the cause of our wealth, but it is the consequence of our wealth."

“Apocalypse delayed”, by Arnaud de Borchgrave editor at large for The Washington Times and for United Press International, 10/20/08 , writes in his Commentary: No German minister will have held such sway over Germany's economy since Albert Speer was put in charge of the country's entire production capacities by Adolf Hitler in 1942.  According to the Financial Times, such was the power turned over to German Finance Minister Peer Steinbruck last week.

‘Two years ago, congressional committees heard testimony from experts who described derivatives as "a ticking global time bomb."

‘Casino capitalism, crony capitalism or bandit capitalism, call it what you will, except democratic. So a course correction to the left in the United States Nov. 4 will surprise no one. The hedge funds alone produced almost $200 billion for their guilt-edged portfolios - out of $2 trillion. Fund managers take 20 percent of any and all profits on top of 1 percent to 2 percent of assets as annual management fees.’  

‘The first manifestation of this new economic phenomenon was the way the United States forced nine major banks to accept partial nationalization. In jeopardy now is the system that allowed the United States to borrow $2 billion to $3 billion a day from the rest of the world to maintain the world's highest standard of living, based on conspicuous consumption, at a time of growing world shortages.’

‘The presidential election - short of an October surprise - looms as a likely Republican train wreck. The postmortems will run billions of words. The national debt during Mr. Bush's eight years in the White House has almost doubled to $10 trillion. And next year's budget is projected to run a $500 billion deficit, a sharp plunge from the $750 billion surplus projected when Bill Clinton left office. Americans without health insurance have grown by 7 million while average premiums have almost doubled. And U.S. forces have been fighting for a year longer than they did in World War II.’

While President George Bush and Vladimir Putin were enjoying the Beijing Olympics 2008; Russia invaded Georgia. The United States and the European Union did not sanction Russia in the same manner that Zimbabwe is subjected and sanctioned. No official lecturing, no name calling, no media slanderization, and no sanctions of the Russian leadership. Why? Because Mr. Putin is white-skinned and Russia is predominantly Caucasian.

The United States government has nationalized Fannie Mae, Freddie Mac, and AIG which are trillions of dollars in debt.  In the past governments of Africa who demanded majority shares in a foreign owned company doing business in Africa it is called corruption by the EU/US and today it is called a Financial Bailout due to creative accounting and financial engineering. Aka junk bond ponzi three card molly pyramid schemes.  

Last week an LATIMES headline read: “Europeans on left and right ridicule U.S. money meltdown” - They list greed and Greenspan among the culprits, and there are comparisons to . . . Albania. But amid the gloating, there is fear for financial systems in Britain, Spain, Italy and elsewhere. "The financial tsunami that has engulfed Wall Street since the weekend hit these shores yesterday," the Daily Telegraph declared in an editorial Thursday. "It swept away the country's biggest mortgage provider -- and with it, much of the [financial sector's] regulatory machinery. . . . The government has prevented a banking collapse that would have had unimaginable consequences for the economy."

Meanwhile United States Ambassador James McGee claims that the lifting of sanctions against Zimbabwe will be performance based. Mr. McGee also stated that “Washington will measure the success of the agreement, calling for a “ratcheting up” towards adherence to key principles including the restoration of the rule of law, respect for human rights, a crackdown on corruption, and the restoration of a market economy.”

Concerning the Zimbabwe Reserve Bank he said “the uncontrolled printing of money has to stop…to insure that this country is on a sound economic footing.”  

As Ambassador McGee was proselytizing to the Zimbabwe government; here in America the following financial meltdown of Wall Street was taking place:

Breitbart.com News:  “Fed announces $180bln cash flood to fight crisis”:
= The US Federal Reserve announced a 180-billion-dollar cash line to fight the racing fires of global financial crisis Thursday, as leading central banks said they would join in.
= The Federal Reserve said it was expanding its temporary arrangements for banks to obtain dollars by 180 billion "to provide dollar funding for both term and overnight liquidity operations by other central banks." The move was to fight "continued elevated pressures in US dollar short-term funding markets," the Federal Reserve said.
= The Fed's statement concerned "reciprocal arrangements", which several central banks had authorised to run up to January 30, 2009, or for another four and a half months.
= Americans who have ploughed their savings into life insurance and annuity-linked pension funds were running scared as financial titans collapsed around them.”

Ron Paul, United States Presidential Candidate and Texas Congressman:
= “The Federal Reserve Monopoly over Money April 9, 2007. Recently I had the opportunity to question Federal Reserve Chairman Ben Bernanke when he appeared before the congressional Joint Economic committee.  The topic that morning was the state of the American economy, and many of my colleagues raised questions about how the Fed might better "regulate" things to ease fears of an economic downturn.  The tenor of my colleagues' questions suggested that Mr. Bernanke's job is nothing less than to run the U.S. economy, like some kind of Soviet central planner.
= ‘Why do we accept without objection that a small group of people on the Federal Reserve Board wields so much power over our economic well-being?  Is centralized, monopoly control over our money even compatible with a supposedly free-market economy?
= ‘The greatest threat facing America today is not terrorism, or foreign economic competition, or illegal immigration.  The greatest threat facing America today is the disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation.  It is this one-two punch--Congress spending more than it can tax or borrow, and the Fed printing money to make up the difference-- that threatens to impoverish us by further destroying the value of our dollars.”

BBC, 09/18/08: “The US Federal Reserve has announced an $85bn (£48bn) rescue package for AIG, the country's biggest insurance company, to save it from bankruptcy.” The US Treasury Secretary Henry Paulson refused to bail out America's fourth-largest investment bank Lehman Brothers after it filed for bankruptcy protection on Monday.

AP Business Writer: “Federal bank insurance fund dwindling” - WASHINGTON - Banks are not the only ones struggling in the growing financial crisis. The fund established to insure their deposits is also feeling the pinch, and the taxpayer may be the lender of last resort. The Federal Deposit Insurance Corp., whose insurance fund has slipped below the minimum target level set by Congress, could be forced to tap tax dollars through a Treasury Department loan if Washington Mutual Inc., the nation's largest thrift, or another struggling rival fails, economists and industry analysts said Tuesday.

MOSCOW (AFP) - “Russia suspends stock trading to stop market meltdown” - Russia suspended trading on its two main stock markets for a second day Wednesday as shares nosedived and officials pledged 44 billion dollars to fight collapsing investor confidence.

Voice of America:  “Global Markets in Disarray Despite US Government Efforts to Reverse Decline.”  Equity markets in Europe and the Americas declined sharply on Wednesday as investors worried that the overnight decision by U.S. authorities to take over the troubled insurer American International Group, or AIG, may not be enough to stem the financial crisis.  Analyst Peter Boockvar says the loss of billions of dollars of wealth in the stock market decline will have an adverse impact on the U.S. and global economies. "Don't be lulled into thinking there are not going to be any more AIGs or Fannie Maes, no more Lehmans [Lehman Brothers], and that everything is OK," he said. "There are going to be repercussions from this that last a long period of time."

Recent Bloomberg.com News:  “On the bailout itself, I didn't want to do that,'' the former Republican presidential nominee said on ABC's “Good Morning America''.
= "But there were literally millions of people whose retirement, whose investments, whose insurance were at risk here, and they were going to have their lives destroyed because of the greed and excess and corruption."
= Bank Lending Freezes - More than $19 trillion has been wiped off global stock market value since a high on Oct. 31 as the worst U.S. housing recession since the Great Depression and a resulting global credit crisis slowed the world economy. This week, Lehman Brothers Holdings Inc. filed for bankruptcy and the U.S. government had to take over American International Group Inc.
= "The dollar fell for a second day against the euro.

Why sanctions on Zimbabwe?  In the present investors’ climate gold is valued, mineral resources and strategic rare metals are the real money-trust and/or sound investments.

“The Cycles of Financial Scandal” by Kevin Phillips - July 17, 2002 in the Common Dreams News Center writes that:

‘America is at a turning point. Corporate scandals, the fall of the stock markets, the sudden mobilizations in Washington of the last few weeks to legislate against some of the more egregious corporate abuses: they all indicate that the nation's attitude toward business is changing. It is potentially a bigger change than many politicians realize. What's unnerving them is that the payback from the market bubble of the late 1990's is becoming apparent to Main Street. The charts of the downside since March 2000 are starting to match the slope of the earlier three-year upside.’

‘Near the peak of the great booms, old economic cautions are dismissed, financial and managerial operators sidestep increasingly inadequate regulations and ethics surrender to greed. Then, after the collapse, the dirty linen falls out of the closet. Public muttering usually swells into a powerful chorus for reform — deep, systemic changes designed to catch up with a whole new range and capacity for frauds and finagles and bring them under regulatory control.’

‘Part of the new clout and behavior of finance is so deep-rooted, however, that it raises questions that go far beyond the excesses of the bubble. In the last few decades, the United States economy has been transformed through what I call financialization. The processes of money movement, securities management, corporate reorganization, securitization of assets, derivatives trading and other forms of financial packaging are steadily replacing the act of making, growing and transporting things.’

‘Supported so openly, rescued from the stupid decisions and market forces that pulled down other industries, the finance, insurance and real estate sector of the economy overtook manufacturing, pulling ahead in the G.D.P. and national income charts in 1995. By 2000, this sector also moved out front in profits. It also became the biggest federal elections donor and the biggest spender on Washington lobbying. In the new management handbook as rewritten by finance, the concerns of employees, shareholders and even communities could be jettisoned to raise stock prices. Major companies could make (or fake) larger profits by financial devices: writing futures contracts, investing in stocks, juggling pension funds, moving low-return assets into separate partnerships and substituting stock options for salary expenses. Enron was only the well-publicized tip of a large iceberg'.”

“Wall Street Hustlers Built a $100 Trillion House of Cards and Stuck You with the Fallout” By Joshua Holland, AlterNet – 10/22/08. ‘People certainly got in over their heads, but the ultimate responsibility for that lies with the investment bankers who cooked up exotic new ways to make risky investments look more secure than they actually were. While the U.S. housing market is worth somewhere in the neighborhood of $10 trillion, it was Wall Street's wheeler-dealers—and their lobbyists and allies who kept regulators out of their business—who built a house of cards out of "exotic" mortgage-backed products and other "derivatives" worth as much as 60 times that figure—paper wealth backed by little more than the irrational belief that what goes up will never come down.

It was the investment bankers who pushed those debt-backed securities hard to investors who were looking for huge returns on their dollars -- much better than they could get putting their money in old-school investments like stocks and bonds. Their hard sell created so much demand that it encouraged lenders to write loans to just about anybody for just about anything; loans, after all, were the raw material for the alphabet soup of "exotic" investment vehicles -- the "collateralized debt obligations," "credit default swaps" and other innovative products that have now turned "toxic."

Business reporter Andrew Leonard scoffed at the idea that at the heart of the crisis were either borrowers getting in over their heads or lenders writing sketchy loans. Beginning in the 1990s, he wrote, "the incentive for everyone to behave this way came from Wall Street ... where the demand for (securities based on subprime loans) simply couldn't be satisfied. Wall Street was begging the mortgage industry to reach out to the riskiest borrowers it could find, because it thought it had figured out a way to make any level of risk palatable." He added: "Wall Street traders, hungry for more risk, fixed the real economy to deliver more risk, by essentially bribing the mortgage originators and ratings agencies to ... make bad loans on purpose. That supplied (Wall Street) speculators the raw material they needed for their bets, but as a consequence threw the integrity of the whole housing sector into question."

Nobel Laureate Joseph Stiglitz neatly summed up the environment in which this took place: The mortgage brokers loved these new products because they ensured an endless stream of fees. They maximized their profits by originating as many mortgages as possible, with frequent refinancing. Their allies in investment banking bought them, sliced and diced the risk and then passed them on -- or at least as much as they could. Our bankers forgot that their job was to prudently manage risk and allocate capital. They became gambling casinos -- gambling with other people's money, knowing that the taxpayer would step in if the losses were too great.
They wouldn't have been able to do it without reckless deregulation for deregulation's sake -- a bipartisan affair. Human greed and the herd mentality are constants, after all.

As financial reporter Gillian Tett detailed in the Financial Times, a crucial moment in the development of the crisis occurred back in the mid-1990s, when JP Morgan was struggling to deal with the huge number of loans on its books and needed large reserves of cash in case those loans went belly-up. It was then that two groups of young Wall Street hotshots -- one that was creating those exotic new investments and another that was knee-deep in "subprime" loans -- started talking with one another and realized they could essentially launder risk by slicing and dicing bundles of sketchy home loans.

As others have noted, that discussion could not have come to fruition without the demise of the Glass-Steagall Act -- which forced firms to choose between writing loans and investment banking -- in 1999. But there has been less discussion of the massive lobbying effort that investment banks undertook after the last time one of these bubbles of national wealth popped.

But the International Swaps and Derivatives Association fought back furiously, arguing that a regulatory clampdown would not only run counter to the spirit of capital markets, but also crush creativity. Their aggressive lobbying campaign was effective: By the mid-1990s, regulatory pressure had died away.

Then, as the new century dawned, with little public debate, a group of lawmakers -- Republicans and "blue-dog" Democrats -- led by John McCain's former chief economic adviser, Phil "Nation of Whiners" Gramm, pushed through the "Commodity Futures Modernization Act of 2000," which put the final nail in the regulatory coffin. The legislation provided us with the infamous "Enron Loophole" -- which exempted most energy trading from oversight -- but it also assured Wall Street's whiz kids that their new products would be free of pesky regulation, and the popularity of those investments soon exploded.

“What The Hell Is Going On”? -  Sam Smith of Swampooodle Report, 10/24/08, wants to know.

‘Never in the history of the United States has so much public money been spent with so little accounting of where it is right now and where it's going next. Never has so much public money been spent by order of officials who helped to create the crisis the money is supposed to resolve. Never has so much public money been spent by officials for the benefit of so many former colleagues. Never has so much public money been spent with so little explanation by the media. And never has so much public money been spent with so little debate over possible alternatives.

‘Given that the crisis grew out of the world's greatest Ponzi scheme, it is perhaps not surprising that we are being handed solutions that reek of the same larcenous craft. Given that our most honored politicians, economists and media failed to warn us of the problem, it is perhaps not surprising that their present explanations are so vague and vacuous.’

Lloyds noted, "Whilst no bank has been immune to the recent market turbulence and economic downturn, the impact on the Group's core trading continues to be manageable."

When Sen. Carl M. Levin (D-Mich.), chairman of the Senate's Permanent Subcommittee on Investigations, convened a hearing on the subject in July, he estimated that the abuse of offshore havens worldwide costs the United States about $100 billion annually. The U.S. government isn't the only one concerned. Last month, when representatives of 17 nations met in Paris to discuss international financial transparency, German and French ministers said Switzerland should be added to a blacklist of tax havens, the Swissinfo news service reported.

United States President-Elect Barack Hussein Obama will preside over the greatest war-machine ever devised and a corrupt monetary & banking investment establishment built on commercial sanctity of faith and trust. Can Obama civilize the gods of money and greed?  Will America nationalize and become patriotic around an upgraded version of the United States Constitution 2009? Will America do as Chairman Moa of China recommended in times of trouble: take two steps back and one step forward?