As Our Economy is Outsourced to China the Obama Administration Once Again Does Nothing

Once again the U.S. Treasury and President Obama have refused to label China a currency manipulator, this time by delaying their report on exchange rates until after the election. The excuses abound, with the claim the Treasury Department must assess progress via a G-20 meeting, scheduled conveniently in November, to oh gee, the administration doesn't want to start a trade war. Anyone bothering to view the statistics on trade knows the United States has been in a trade war with China for over 12 years and guess what, we lost.

 

yuan dollar exchange rate

 

The yuan is pegged to the U.S. dollar and undervalued by 30%. See any progress in the above exchange rate graph? We don't either. China really laughs in the face of the United States and claims the Yuan is at equilibrium.

China’s currency has reached its equilibrium rate and its value is mainly determined by the market, rather than intervention, Beijing’s central bank chief said Sunday, signaling there is little likelihood of major movement in the yuan’s value in the near future.

Trade with China has cost the United States 2.7 million jobs. We see, consistently that China is roughly 40% of our goods trade deficit and that includes America's biggest problem, oil imports. Currency manipulation also has decimated our economic growth with estimates being equal to our current output gap.

 

output gap

 

Legislation to label China a currency manipulator have passed the Senate yet blocked in the House of Representatives. These bills have a huge number of Congressional representatives as cosponsors, yet are put on hold by Congressional leadership.

Even Wall Street is getting it that China's currency manipulation is a real drag on the U.S. economy. While China's massive buying of U.S. treasuries makes headlines, few realize the reason they do it is in order to keep their currency artificially undervalued.

If China's currency manipulation was confronted and corrected, an estimated 2.25 million jobs in 18 to 25 months would be created. Think about it. That's more job growth than we've had total in the last year and we are still down 4.5 million jobs since January 2008.

Just last week a House Permanent Select Committee on Intelligence report came out that was so damning, it was turned over to the FBI. The report states in no uncertain terms Chinese telecommunications companies Huawei and ZTE are a major national security threat and not to be trusted. The report recommends our government and U.S. private companies should not purchase Huawai and ZTE products or allow these companies access to the United States telecommunications systems and networks.

Another report (pdf) also found China has been making telecommunications infrastructure and cyber warfare a top priority. Not only can China defend their own networks, they can also successfully launch a cyber attack on another nation at the same time.

The Chinese routinely issue DDoS attacks on the United States Internet infrastructure. The Department of Defense just spelled out the threat of cyberwafare.

A cyber attack perpetrated by nation states or violent extremist groups could be as destructive as the terrorist attack of 9/11,” he said in prepared remarks. “Such a destructive cyber terrorist attack could paralyze the nation.

Clearly it makes no sense to invite the Chinese right in, use their telecommunications hardware or let them access our networks. China has been repeatedly cited for stealing our industry secrets and intellectual property theft. Report after report has shown China knows no bounds when it comes to industrial espionage.

Yet when it comes to our economic security, despite the overwhelming statistics of economic devastation by China, nothing happens. The United States is offshore outsourcing our future to China. China is allowed to obtain our manufacturing sector, our advanced R&D, our innovations and most importantly our GDP and our jobs.

Beyond China's currency manipulation, their indigenous innovation policies have been called the biggest threat to the United States economically since the start of the mass exodus of our manufacturing base to China.

The lack of action by the Obama administration was blasted by team Romney, not exactly a bastion of other policies to help the U.S. middle class and U.S. citizen worker. Mitt Romney has promised to label China a currency manipulator his first day in office should he win the election.

Mitt Romney and running mate Rep. Paul Ryan on Saturday tagged China as "cheaters" in the global economy and accused President Obama of being soft on a country whose trade and currency policies are hurting the U.S. manufacturing sector and the middle class.

Why the Obama administration does nothing is no mystery. After all, they also claim bad trade deals are increasing exports, when in fact the opposite is true:

Obama’s claim – that the three trade deals are boosting exports – does not survive a basic fact check. The Panama deal has not even taken effect. Since implementation of the Korea Free Trade Agreement (FTA), U.S. goods exports to Korea have declined by nine percent (a decrease of more than $1.2 billion) in comparison to 2011 levels for the same months, while exports to Colombia since implementation of the Colombia FTA have barely increased (by $358 million). Under the FTAs, the United States has suffered a six percent fall in combined exports to the two new U.S. FTA partners.

Letting Chinese companies take over United States critical infrastructure is really battle of the lobbyists as well, not concern over us working folk or national security. Large corporate behemoths are really arguing over billions in profits, not those 2.25 million jobs. Us regular folk, who really need those jobs, are clearly an after thought, no matter what party is in power. That's probably why we get nowhere on the trade deficit with China. U.S. multinationals who offshore outsourced many of our jobs, have a vested interest to allow China to manipulate their currency. Cheap labor and cheap production are their goal, no matter what it does to the U.S. economy.

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Too Many Benefit from a High Dollar

From my essay "Learn about life in China before you choose it for your children" -- Economy In Crisis, 18 June 2012:

http://economyincrisis.org/content/learn-about-life-in-china-before-you-...

When you hear people complain about China’s “currency manipulation,” remember that everyone making money on U.S. imports, which totaled $238.6 billion in March alone — beginning with the multinational corporations and banks that control our politics and media — makes more money when China keeps the US$ high. China accomplishes this largely by purchasing our Treasury securities — so we can add “American Politicians” to our eye-opening list of China currency manipulation fans.

Even American consumers, it should now be evident, are bewitched, if unknowingly, by China’s currency manipulation: overpriced real estate and underpriced consumer goods.

The well-intentioned patriots lobbying against China’s clearly criminal currency manipulation have less chance of succeeding than I do of winning this November’s election; but I admire their efforts, if misapplied (they should focus on tariffs). . . .

Every time we buy something made or grown in a foreign country, we support that country of origin and deprive our own United States. We serve their culture, their values, and we neglect our own. It’s a form of treason: a way of saying we want the foreign country to succeed and America to fail.

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right, we mention U.S. multinationals in this article

We don't allow links in anonymous comment due to spammers, so here is the link to your article over on Economy in Crisis. The above mentions similar things but didn't put the emotional impact you are.

I should say our site is officially nonpartisan, but we do Populist rants on policy positions, detail out Congressional hearings, anything to do with our $$ is fair game.

Romney clearly has a chance to win and if that happens, where I would be very surprised, we'll see if another campaign promise is thrown on the dust heap, but it's surprising and refreshing to see this as a major campaign issue. Seems almost out of character.

You're right that corporate controlled politics are the reason nothing has happened, and I think Geithner/Obama have no spine. Someone has given them some doomsday drama scenario and they bought in, which is pretty ridiculous considering the might and power of the United States. I think it is true that the G-20 and the U.S. to act in concert would have even more powerful and less chance of retaliation. That said, we've seen this before and it looks like simply a political blow off tactic, to make the issue get off of the press front pages and from the Congressional floor. "Hush up, please" I think is their motive, but what do we know, we're not in the halls.

Also, the fact China must buy up U.S. Treasuries and our massive debt might also be a motivator to not call the kettle black.

You forgot to mention a VAT as another effective tool to help balance the trade deficit and a VAT can be dynamic, finely tuned even on a daily basis and is also legal under the WTO.

The links in this article are loaded with detail and check out our overview on the trade deficit. We have graphs and details on the China-U.S. goods trade deficit.

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TRADE WAR WITH CHINA

Should Romney be elected president it has been suggested he may start a trade war with China. Hence if China limits their purchase of US treasuries it could tank the dollar, thus spurring US exports. I think China would have to be pushed far to do that because they would be debasing their own dollar reserves. But as the recent conflict with Japan over a meaningless island shows, these things can get out of hand.

It would be interesting to know the pros and cons of an all out trade war with China.

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Those islands and waters in the entire region are very important

Just think about recent history in the region, along with current economic conditions, and the importance of national rights in the East China Sea and South China Sea carry great weight, for countries from India all the way to Malaysia, the Philippines, Vietnam, PRChina, Taiwan, Japan, the Koreas, etc. Currently, these countries desperately need oil and gas to fuel their economies, and vast fields are believed to be under those waters. Also minerals present. Couple that with the Middle East perpetual turbulence, Japan's nuclear disaster (that forces Japan to look outside nuclear and sends warnings to other nations that need as much energy as possible from sources that won't cause such mayhem) Iran nuclear program issue, Syria civil war making everyone choose sides, and oil much closer and more reliable to the Asian nations is something they will certainly be willing to fight for. Fisheries to feed their people, also critically important. Then you throw in recent history of Japan's military starting in the late 1800s showing its might against Russia and exerting itself over the Korean Peninsula, taking part in the colonial carving up of China, and on to Manchuria and Japan's puppet regime there, the Rape of Nanking, the use of "comfort women," WWII, and that's just Japan. Throw in all the other countries, their own histories, views of oppression and other regional + international powers' opinions of them (e.g., Taiwan vs. PRC) and of course they'll take things there very seriously and fight for what they believe are their territories to ensure they aren't the subject of any encroachment by other countries they have historic and current rivalries/issues with.

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exchange rates and Chinese foreign currency reserves

We should also mention there is evidence the Chinese buying up foreign debt isn't just with U.S. Treasuries, they also buy up a lot of Euro debt. An analysis by Bloomberg, (subscription only, here) shows the Chinese have reduced their holdings of foreign bonds and that could cause the Euro to decline in value relative to the U.S. dollar and the sovereign debt crisis will come alive once more.

I'm not sure if this analysis picks up on China buying sovereign bonds through the U.K., so their reserves are hidden from the reported figures.

This posts focuses on trade and labor,after all, that's our middle class bread and butter. That said, I hope to dig into how China's currency manipulation affects sovereign debt, bond prices and exchanges rates.

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Liar, liar, pants on fire

The second Presidential debate just concluded and this post is most timely to show, statistically, Obama just told a bunch of statistical fibs.

Also, U.S. engineers are the most highly trained in the world and they are being subject to labor arbitrage. We do not need "retraining" for PhDs, Masters and Bachelors with highly specialized skills. We need for this government to put their citizenry first in all things. That is educational opportunities financial support and most critical are secure, stable, long term, economically rewarding careers.

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You watched the debate? That's masochistic

No need to watch two self-serving narcissists aka politicians to figure out what they have done, are doing, and will do. They will serve the people with the money that bankroll them, they will help their friends and family and cronies at all costs, including sacrificing the electorate, and they will lie and promise everything and anything to anyone that can help them get elected. And then they will proceed to break every promise when it suits them and lie about what they actually said and promised, even when confronted with taped testimony, transcripts, and DNA evidence. Did I get it right? And I just saved myself the pain of watching it and showing interest in a puppet show that only has one result - we're screwed by someone from a party with red as its color or blue, but with neither one caring about the average American and his/her suffering, work ethic, education, skills, and loss of hope in the American Dream.

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lies, lies and more lies

It was also HORRIFIC in terms of their treatment of the actual people there with these planted questions. The focus was clearly not on them and that was supposed to be the point of a townhall. So, they both lost because they might as well put a mud pit in the room, watered these guys down with fire hoses and let them have at it. About as much accurate information too.

Both lied about the need for more foreign STEM, refusing to acknowledge the labor arbitrage, unemployment of U.S. citizen STEM and what that is doing to America's advanced R&D community. It is international and always has been, but now they are displacing U.S. citizens in favor of foreigners and that...is a disaster. It originally was "in addition to", there would never be a situation where an American would be labor arbitraged and displaced by a foreigner and as anyone can imagine, that pits advanced worker against advanced worker and destroys teams, destroys job security and completely ruins environments which just cannot have these kind of labor arbitrage games to be effective.

Right now they are declaring Obama the winner and I'm thinking, really? It was clear, America is and will be the loser. Anyway, I thought they both came across bad not that I think that matters. What people want are sane economic policy.

Good example is a woman pointed out sex discrimination by the fact women still are making @ 73% in comparison to a man and they both bypassed that fact, although Romeny, surprise, surprise, talked about hiring women...which does happen to be the key, uh, they need the jobs with the corresponding salaries to stop economic sex discrimination. ;)

Ok, here is also a great example of ridiculous "gotchas". They are focused on Romney say "binders full of women" and trying to spin that. It was clear Romney was pointing out he found thousands of qualified candidates who were women.

What's the bottom line on sex discrimination? Getting hired plus keeping the job in high positions with high salaries. That's what needs to happen and in 2012 it has not. There are a host of other issues but if you asking about unequal pay for same work, the solution is to make sure we get equal pay for the same work plus women hired extensively in top level employment positions.

Ok, so out in twitter land and other noise machines, the fact that women and also U.S. domestic minorities, blacks have been wiped out economically, on jobs and on and on.

Romney clearly doesn't get that single women need jobs and support for kids, way more than what is going on. That's where his sexism came in. But is team Obama doing anything for single mothers? Uh, no, millions more thrown into poverty because they are single with kids, something that should be commended and they should get help and support on raising those kids.

So....ugh. Good example of who just lost that debate is single moms trying to raise their kids!

Be glad I don't put up a post on it and the reason is I'm with you, who can keep up with the noise when it's facts and policy that matter.

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Lilly Ledbetter Act is not "fair pay"

Wiki on it here.

It's a bill to remove the 180 "complaint" time window when one discovers they are getting the shaft on wages and being discriminated against. SCOTUS had ruled that the 180 complaint time window, or statute of limitations applies from the 1st paycheck that wage discrimination occurred and the bill changed that to the last paycheck issued.

It's a good bill and Obama did sign it, but there is a long way to go for women and sex discrimination.

I've overviewed poverty statistics and the one thing that has really stood out are single mothers. It's like the financial kiss of death to have a child and for whatever reason "dear Dad" is out of the picture. Employers discriminate against single mothers because OMG they need to also take care of their kids. That needs to change.

Romney's answer that we should have "two parent" families is all fine, that's true, but there is a problem here in that a woman may not want to be married to some guy for whatever reason and that really shouldn't harm her economically for being a single parent.

Single Dads are not anywhere near as bad off as single Moms either.

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GasLand Financed by $750bn Credit from PRC- Guess What They Want

The Louisiana part of the GasLand boom/bust is paid for by a credit line of $750bn of Chinese credit. What they want should be clear from the location: New Orleans oil and gas terminal. Sweep away the talk of the chemical plants in Louisiana. If China has access to inexhaustible American natgas, there is no limit to China's next leg of new exports to the U.S. This should further reduce the U.S. to Third World status and further uplift China as the premier world economic power.

The XL pipeline of Canadian Bitumen, derived by clear cutting arboreal forests in Alberta, should provide the Chinese leadership with the remaining petrochemicals, once refined in the Gulf refineries.

The oil and gas shipped to China will return to the U.S. in the form of higher value exports like computer and telecom equipment, no longer produced in the U.S.

http://www.nytimes.com/2012/10/21/business/energy-environment/in-a-natural-gas-glut-big-winners-and-losers.html?pagewanted=2&ref=business

 

 

 

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Burton Leed

And no limit on Chinese workers working on this

When the Chinese work overseas in countries outside China, they ensure they have Chinese there in management positions. Now, if you have a Chinese manager, a nice scam would be to require that those working under the Chinese manager have to understand Mandarin, Cantonese, whatever. Not necessarily English, but the Chinese dialect. English in addition would be nice, but not necessary in every position. So, job requirement now becomes "Must understand Cantonese and/or Mandarin, recent experience living in the PRC for 5+ years and/or working for a PRC company in the PRC or overseas, etc." HR of course wouldn't have to fit any standards, just the ability to eliminate all Americans no matter how much they need work, how many degrees they have, how much experience they have, etc. What's that? Can't find American citizens that fit the bill? Oh well, courtesy of DHS, State, Commerce, Interior, Energy, etc. you can now have America's natural resources being taken out of American soil, or transported across the US from Canada, then refined in the US by foreigners, and then sold on the open market where American citizens, with ever decreasing $ and jobs, can try to buy it at the market rate. And when asked about these policies, business will repeat, we owe the US nothing, we seek PROFITS at all costs, that's our mantra. And when US politicians and govt. officials are asked about this, they will say, if Americans can't compete, than they need to retrain and learn how to be leaner and do without and US companies owe "lazy Americans" nothing, just ask Galt. Murdoch's talking heads at Fox and soon to be in the LA Times and in Chicago (I guess antitrust laws no longer apply when phone-hacking/police bribing moguls seek to own all media outlets) and CNN and everyone else in the media will go along with what their corporate owners tell them to parrot. And the Chinese when asked will say they owe nobody anything, if American politicians can be bought, so be it.

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Another Word For HuaWei

Trojan Horse. Once inside the walls of Troy, there is no DDOS attack they could not perpetrate. Once inside the U.S. there is no intelligence they could not gain. The DDOS attacks ordered by the Politboro will not have fingerprints of China
based IP addresses when launched from U.S. soil.

China has all of its 200 MIRVed ICBMs pointed at only one country. Call of Duty one day, will not be just a video game.

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Burton Leed

What's Geitner is Up to These Days: India, China, Iran

Geitner has shown up in India telling India how they can have far more H1 Visas and even more offshore outsourcing, after the November elections.Geitner told Obama to give the banksters a free pass when their necks were on the line in April of 2009.

We need to focus on the pure perfidy of India with Iran. India ignores the Iran sanctions and gets Iranian oil by bartering textiles. While Iran gets no hard currency, the oil production is crucial to breaking the sanctions. With very low production due to sanctions, Iran's oil fields are in danger of structural collapse, like Iraq's under Sadam due to very low production.

No surprise that China is buying from Iran also. Without the 2 countries who kill our jobs most, the sanctions against Iran would have real bite. Iran has lost 50% of the value of the Rial.

http://www.thehindubusinessline.com/industry-and-economy/info-tech/artic...

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Burton Leed

Tim Geithner gives away our jobs to India?

We expect significant increase in the visas.

The "fear of outsourcing" will diminish after the election?

We all know the Obama administration hasn't even implemented the swiss cheese Dodd-Frank legislation and it's five years after the financial crisis but this one takes the cake!

This isn't even "Bush lite".

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Now it's time for Americans to leave like past emigres

Of course I hope we never have to come to this, but things aren't looking good. It seems everyone that sees what's going on and wants to stop it and reverse course is purposely locked out of the democratic process - something that should be impossible in our Republic. Look at USA 2012, it's being purposely destroyed from the inside. All those folks in the massive immigrant waves from Western, Central, and Eastern Europe fleeing for prosperity because they were locked out of better livings because of no jobs or discrimination? Preferences for certain groups? Welcome to it. How about all those folks from the CIS that fled during the 1970s, 80s, and 90s that were engineers, doctors, etc. but had to flee and are now "overqualified" taxi drivers and grocery clerks in the US? Well, that's what we will be very soon, and in our own country if we are lucky, otherwise we can be like Greeks reported to be cleaning toilets for Swedes. How about the Roman Empire, the British Empire, and so many other empires that kept stratifying their classes into the oh-so-content elites and the ever-growing have-nots (despite their work ethic, experience, and desire to make a better life for themselves and their Nation)? The constant foreign wars that bled treasuries dry? Yup. Remember arming the Taliban and Al-Qaeda vs. the Soviets with Stingers and then that bit the policy makers in the ass 20 years on? Well, we moved on to Afghanistan and then had to fight our own creation. And then Iraq. And now we are arming rebels in Syria in 2012 that include Al-Qaeda. Now, we are using US $ to arm people that will turn on us as soon as Assad goes. And the PRC can swoop in after the war is over and buy up/manage the commodities flow that we helped secure. And both parties are okay with it. And we can have yet another endless war that bleeds us dry. Obama and Romney have already set these positions and will go along with this "history repeats itself" so why should intelligent, honest Americans even read and learn history anymore, the plutocrats and policymakers will screw us anyway. Jobs? No. Arms for people that will turn on us (or actually are fighting us in multiple theaters) using our $ that we borrow? Check. Borrowing money from our non-allies while outsourcing everything to them so we can buy it back (win-win for other countries, not us)? Check. Forcing Americans to become unemployed after spending fortunes on education and living to be replaced by foreigners here and abroad? Check. Circuses? Check, just turn on the TV or read a corporate owned paper.

Stick a fork in us. Through no fault of the average American, we are done, or almost there.

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Indian outsourcing beneficiary Tata's 2Q profits up 44%

Tata's 2Q profits rose 44% - but American companies and their outsourcing partners are looking out for America and Americans, trust them. But, but, job creators need tax cuts here, immediately, otherwise Tata won't be able to create even more jobs in India and for Indians on visas here. Come on, job creators, give them a break. Otherwise Bill Gates might cry some more, oh not for American citizens, but for people just like them, e.g., convicted insider trader/ex-Government Sachs bankster Gupta.
http://www.bloomberg.com/news/2012-10-13/bill-gates-annan-urge-leniency-...

By the way, has anyone seen Gates, or Annan, or anyone else begging for help for the common man and woman that is being destroyed by austerity, unemployment, outsourcing, etc. Damn, these people really have no shame. They are in a special club and will look out for each other even when it really is none of their business. Since when did Gates' and Annan's opinion matter one iota in our national justice system. Annan, last time I checked, isn't even an American. Gates just plays one on TV. The rest of us, I guess we can just die because they don't give a sh*t. Next time Joe Average is busted for insider trading, bribery of one local official, failing to pay a minor amount in taxes, be sure to call Gates and Annan, I'm sure they'll help out. No shame, none.

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throw the book at him, lovely

Who knew he also enabled more jobs being offshore outsourced. Right, no surprise Gates is pleading for mercy, you can bet he wouldn't do that if Gupta had been born in the U.S., fighting for U.S. jobs and busted for insider trading. Wow, I did not know that, maybe we need to dig around in these cases...is there a connection to offshore outsourcing as well going on? The two seem so disconnected and he's a small fish while the big fish go completely unpunished.

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Something is definitely odd - if the USAO had balls, they'd dig

This is beyond George Carlin's "big club and you ain't in it." Someone somewhere could speculate that someone owes favors to someone or some group or philanthropy. Who knows. But Annan, Gates people that like to travel around the world living the high-life pretending to care about poor people with malaria or trying to settle wars (and failing time and time again while earning megamillions), yeah, why stick your neck out in an insider trading case that is being prosecuted in the name of The United States of America? Victim impact statements, I wonder, do all people screwed over because of unfair transactions and piss-poor transparency in the stock markets get to chime in? Because that could number in the millions of people that want to voice their opinion that banksters like Gupta need to go away for the max - and that's just a start to bring any level of accountability back to the markets along with locking up a criminal as well as deterrence for other bankster ilk. As far as redeeming our legal system, people like Gates and Annan should STFU. While the streets are exploding with anger over the two-tiered economic and legal systems, these folks really do have no clue about how their actions just reinforce the idea that they obey different rules and laws that screw us.
The DOJ and local US Attorney prosecuting the case, if they had any integrity, would chase after why Gates and Annan were contacted, put their names on this plea for leniency. Was money paid by an attorney or promises made to help out philanthropies, etc.?

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Gupta only got 2 years! Bankster crime pays - rule of law dead

http://www.reuters.com/article/2012/10/24/us-goldman-gupta-sentencing-id...
Each fraud count he was convicted of exposed him to up to 20 years and conspiracy up to 5 years. But that's not the way bankster law works, thus, 2 years total. Plus he didn't admit his guilt and took it to trial, costing a lot of time and money, and that is supposed to work against defendants under federal sentencing guidelines (the non-bankster edition) once convicted. Just confirming the fact that the rule of law is dead in the US. If a non-Goldman, non-bankster pulled a fraud of this financial magnitude, or grand larceny over a period of two years, he might be facing a very long time in prison in many states (at least 10-20 years, with a minimum of at least 10 in a real prison with high walls and violent criminals as neighbors because the length of the sentence determines the facility in many states, unlike the federal system), depending on the number of victims, total theft, etc. And the judge spoke for 30 minutes about this guy's philanthropy and other matters during sentencing? What the Hell is going on in federal court that a judge can drone on in an insider trading case for 30 minutes? Does the US Attorney bring one case per month because it appears the federal judge presiding over this sham needs more work to earn his bloated salary and lifetime tenure, much more work. 30 minutes talking about philanthropy? Come on, who cares. Plenty of criminals try to say they were angels, guess what, it almost never works (I speak of non-banksters, non-1%ers of course, because different rules apply). Philanthropy? What philanthropy? He made loot at a bankster organization and then gave a minute amount of it to philanthropies, that's why Gates and Annan spoke for him - payback. If someone steals $500 million working for a criminal organization, or sells drugs and makes $1 billion, and then donates 1% or 5% or 50% of it to philanthropies, will the judge kiss his ass before giving him a joke of a sentence? Or does that only work for banksters and their colleagues?

Rule of law, fair treatment, equal before the law . . . Exhibit 1 (or is it Exhibit 50,000 by this time) - it's a joke. Because guess what, get busted possessing forged bills you had no idea were forged, or not pay exactly what the IRS demands you pay despite your honest belief you paid the amount owed, or caught bringing back prescription pills for your relatives from Mexico because they can't afford them in the US, you might actually be eligible to serve more time than this guy. Fantastic, quite the mockery we have going on nowadays. Hopefully you have Bill "I love visas and outsourcing, but I don't like American citizens" Gates and Kofi "UN sanctions shouldn't affect my family's activities" Annan as friends and beneficiaries of your activities. If not, see you on the inside. Maybe Gupta can join Milken after "paying his debt to society" and start another philanthropy and make even more money. They always seem to find jobs (and jobs that pay millions) no matter how many laws they break or people they harm, unlike the average law-abiding American that can't find jobs, let alone good ones, and still gets blamed for everything despite following all the rules and regulations.

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who you know vs. what you know

I'm in process of doing an update on all thing in Banksterdom and this is one of them. Bill Gates comes to the rescue, who cares this guy gave insider information at the height of the crisis on Goldman Sachs, right?

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Connections and the cutthroat BS = rewarding the worst

It's true, when connections/nepotism/cronyism, etc. trump knowledge, all the worst things in our society trump the very best. Over in the UK, Murdoch's Rebekkah (sp?) Brooks made it a point to ingratiate herself with possible bosses, pretended to have an interest in things they did, hung out where they hung out. She wasn't looking out for her subordinates, or learning some cutting edge new ways to boost readership legally and convince others of her ideas' worth. Instead, she was spending her time learning how to get promoted. Obviously some bosses (and hopefully the ethical, honest ones) would frown on that crap because someone without a fragile ego would view that as sickening and look to everyone in their ranks, to their ideas, to the people busting ass honestly while still spending time with their families. But we see that's becoming rarer. Now it seems kissing ass and spending 100% of the time looking good at others' expense is the key to getting hired and promoted. That means taking credit for other people's work, calling endless meetings where people with nothing to say get to speak out the loudest, endless group projects where dimwits can piggyback on others' work. That's why we see this endless hype on "networking." If there aren't enough jobs, networking helps get those playing sick games get hired and promoted, with huge numbers of hard workers left locked out. But if idiots can get their friends and relatives to hire them, or payoffs results in jobs, then "networking" of course will be pushed as a viable means of hiring. Who doesn't benefit? Well, the worker bees that just want to work hard, share credit when it's due, get their degrees, and put them to use without asskissing (aka the honest, quiet necessary workers). Add to that "Survivor," "Trump's Apprentice," "Big Brother," etc., etc. where everything is a competition, only one winner can be chosen, and cooperation or honesty is actually punished, and we see how twisted the workplace and American society have become and will become if there aren't massive changes. You've also mentioned this. Go back and watch shows from the 1950-1980s. The way families and work and ethics were treated vs. TV in the last 20 years. Now it's all about self-promotion and competition from youth on up.

By the way, notice how our natural resources are seen as critical to our future (vs. our American labor pool), how foreigners can come here and manage the projects despite Americans skills and need for jobs, how politicians now serve those foreign interests, and the plutocrats and politicians enjoy special protections and priviliges while hard work and education mean nothing if you are an average citizen? That is absolutely how "Third World" nations used to be. Ironic, planned of course by plutocrats, but ironic nonetheless.

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Murphy was wrong: this is how pigs sound when they sing

Nobody from the Brahmin class, like Gupta, no rich white lady like Martha Stewart will spend any amount of time in a real prison in the U.S. Martha got a real harsh sentence in Camp Cupcake. Gupta will never spend 2 years in jail. Real prisons are for non-whites or poor whites.

For Martha and Gupta to be free, you need the chorus of piggies. We know the sweetest pig chorus is the 9 Henchmen of the Oligarchy. This chorus never gave legal standing to the suit by Immigration Reform and Programmer's Guild when they sued the government for violating the Homeland Security's own rules for H1B visas. The suit was never allowed standing, not in a single court. Evidence of ruined careers and destroyed lives fails to move the corrupt legal establishment. As I recall, it did not work out so well for the French Legal Establishment in 1793.

Remember how Gordon Gecko mused about insider trading as a "victimless crime" in The Money Never Sleeps? Gupta and Gates see the world this way. Rules are for suckers. Those on top make rules for others, and do as they please. This is why only violent social upheaval will ever change anything. It's coming, sooner than they think.

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Burton Leed

Martha Stewart

If you think about what she did in comparison to the many outrageous crimes which literally collapsed the global economy, it's peanuts. She answered the phone and sold some stock. No comparison to what this group did or Goldman Sachs stuffing a CDO with bad mortgages and hiding them. Selling them off to their unsuspecting Muppet clientèle.

Think about Martha Stewart being a brand, just on the cusp of challenging major retailers and then think about how that prosecution destroyed her brand. Hmmm.

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Yes, the "Teeny Fry"

Indeed, Martha (a ‘female’ minnow (with odd fangs for a female and/or minnow), in a shark tank) was easy prey (I note that, while still holding her in disdain), and certainly Madoff had to be slayed for ‘feeding on his own ilk’ ... his son, hanging himself by a dog leash (I do wonder, did he have help?), while his son (was his son (Madoff’s grandchild) less than a year old?) ‘slept’ ..close by.

On the other hand, ....my, “The Milken Institute” .... , talk about the united states of amnesia - where most, who snitch a cheap loaf of bread, to feed those they love, can never recover from that indictment, - there are those, like Milken (if you’re young, look up: “Den of Thieves”), who, like scum, always appear to ‘rise’ ....... to the top ........

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We've lost control of far more than that

actually, "we" have lost control of the essence of the kind and profound side ...of human mammals ...

witness, for an instance, the hideous Singularity Institute, ... in Mountain View, California, neighboring: the “Googleplex;” NASA (historically lead by escaped and pardoned Nazis); the “AI” (Alien Intelligence ) branch of CMU (Pittsburgh PA’s, C Carnegie Mellon Institute”) and Gopper/”Paypal” founder, Peter Thiel’s office on subsidized Federal Property (despite Peter’s supposed ideal, where one does it all on their own with no assistance, versus via the citizen’s ‘dime’ (as in subsidized Federal property) where the Hope , and premise, is that human mammals become Machines.

Most well meaning humans would not wish that on their cat and dog (etcetera) mammal companions, why has it been acquiesced to for human mammals, by supposed 'human mammals'?

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Everyone - who believes the "American Dream" is real? Few

Everyone out there in EP land, ZH land, everywhere where dreams of iPads and iPhones and "American Idol" don't fill brains. Everyone that doesn't think wearing a flag lapel pin makes one a patriot, especially when criticizing those that express their First Amendment rights. Bill O' come on, even those that serve their country in public service here and abroad can disagree? Or are we all unworthy of your teleprompter-reading greatness? Bill O', by the way, you went to Marist undergrad, why do you never mention it? Are you ashamed? Did Marist screw you? Why affiliate yourself with liberal Harvard? Eh, Bill? Are you envious of Harvard's Kennedys in your core? Ha ha. Tragic.

Who honestly believes hard work + being good/ethical/fair to others/"The Golden Rule" + education (degrees + natural curiositiy + continguing education) = a chance at success, or an income that could provide for a spouse or at least for one person (at a minimum)? Of course I must exclude Forbes, because from top to bottom, that craphole loves nepotism. But Steve, tell us all about how family connections don't matter. Daddy says what? Murdoch says what? James Murdoch was the most qualified of the thousands that applied to run the criminal syndicate known as News Corp.? Of course he was.

Now vote carefully. Let us tally the votes. Oh my, it seems the tally is = The American Dream = BULLSH** in 2012. And for those blaming Obama, or Socialism, stop. Those same people that helped finance Obama in 2008 (Government Sachs, JP White Whale Dimon, etc.) now support Romney/Ayn Rand, so they supported a "Socialist" in 2008, so go ask them why. Were they Communists in 2008?! Goldman, JP Morgan in 2008 were Commies?! Damn, someone better tell Blankfein and Dimon at their Hamptons compounds. USA 2012, it'd be funny if it wasn't so freaking tragic. If only some people warned us about the corrupting power of corporations, political parties, foreign alliances, the military-industrial complex, etc. Gosh, history, history, if only the plutocrats would let us read history. Because then I might remember something some people might have said about those topics. Or even far longer in the past, something about absolute power corrupting absolutely. No worries, Murdoch is dictating visa policies along with fellow plutocrat/oligarch Bloomberg. They look trustworthy, plus they would never practice cronyism or nepotism. Just kidding. Hey, grads from 1980-2012, how you feeling? Got those degrees in hand and debt to prove it? Wanted to prove yourself? Wanted to learn new things and rise in the ranks just by hard work? Treated everyone fairly and wanted to be judged by work alone, not politics? Yeah, that used to work. But nowadays it's all cronyism and nepotism and stepping on everyone else to promote yourself. Plutocracy or treat!

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velocity of money

If one doesn't have high velocity, the supply doesn't matter. Also, the exchange rate is what has to do with China currency manipulation, not the money supply, which because US is safe haven, hasn't changed much.

MV=PQ, V decrease, M increase = same C.

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