Don’t know how much clout this Wall Street insider has, but it is interesting to read.
Excerpt: Wall Street:Basically what came back to me from these sources was confirmation of what I had heard earlier – the DOJ information. And the confirmation was solid. Discussions had taken place. Communication had come directly from the highest levels of both the Department of Justice and the Obama White House that indicated the legal means of unionizing the United States Military. Word then reached the contractors, and people were beginning to get…the concern was significant. We had just seen what had been done with healthcare – how that had been pushed through. What had been done with the auto unions. Organized labor owns this White House. The possibility of them doing to the military what they had so successfully done elsewhere appeared at that time to be very serious.
After discussing the unionization of the military they went on to the Federal Reserve.
Wall Street: (Long pause)…Money has an inherent value. The borrowing of money is to have an inherent cost. That relationship is to be a symbiotic one. If you take away one, it can kill the other. —Don’t interrupt me here – if you don’t understand I can’t…I won’t be the one to explain it for you. Not at this time.
Ulsterman: Go ahead – I apologize. Please go ahead…
Wall Street: What the Federal Reserve is doing is killing off that relationship – that critical symbiotic component of a free-market economy. We are on this day a more centralized economy than at any other point in our history. Fiscal contagion can spread from nation to nation with a single click. Trillions upon trillions in value has been wiped out of the market by the printing of money with lessening value. When you wonder why Wall Street has succeeded under President Obama while Mains Street continues to struggles is simply because Main Street still exists in some semblance of a free market economy. That relationship between the value of money and the cost of borrowing that value still exists. Wall Street has been allowed to exist outside of that reality. The Fed has made it so, and the result…we are nearing just the beginnings of that result – will be outright economic disaster. 2008? Nothing. 1929? Yes – that is where we are going here. And with that kind of economic chaos – what is soon to follow? Read you history. War. Famine. A total shock to the system, except this time, we have a proliferation of nuclear weapons, countries such as Iran, North Korea, Pakistan, they will be directly involved in this chaos. And of course there is China…the time I could spend on China…
Among the most frustrating things following the collapse of the Soviet Union was the repeated phrase that the Cold War had ended. Not so. China remained. China, who by then was a far greater economic threat to the United States that the Soviet Union – they were conveniently forgotten as part of that Cold War. Our intellectual laziness in that regard has now come home to roost. And we are cutting ourselves. Death by a thousand cuts. Every deficit dollar we print, we come closer to that abyss. We are at 40 or 50 trillion in total debt in this country – and in an economy that is no longer growing anywhere near a pace that can even pretend to accommodate such a debt. The folly of the New Deal and the Great Society and that entire mindset is choking the future of country. Literally choking the life out of us. Me, you, our kids, our grandkids…nothing will be left for them but pieces of what used to be, and a world ready and willing to feed off those scraps.
And these labor unions – the shift from private to governmental unionization…the inherent legacy costs of that scenario is simply unsustainable. The free market cannot withstand the attack. It is collapsing all about us now and too many are simply not paying attention. The only hope for our recovery – the only hope, is our ability to grow our way out of this. That growth, along with massive cuts in government spending, is the only way. Nations such as Greece, Ireland, Italy, Spain …they have come to this understanding, but have only been able to do so with the assistance of other nations who in turn are printing their own deficit dollars in order to do so. That situation cannot be sustained can it? And certainly not without growth. Do you know the number of payroll jobs in 1999 was approximately 130 million? That is the same number as in 2011. Zero growth. This economic stagnation is leading to economic decapitation and it is coming sooner not later. It is happening NOW. If this nation does not elect leaders with the political will to do battle with the entitlement status quo, to do battle with the monster that is the Federal Reserve, we are finished. Done. President Obama does not have the political will to do so. Far from it. Nor does he have the understanding of just how dire the situation is. Far from it. More of the same will only lead to the mutual destruction of both political parties and the nation.
Read full part 3 of the interview here.