I’m going to repost part of an essay which I wrote nearly two years ago to this day. I’m certain someone will feel it’s their civic duty to find 2015 estimates for U.S. GDP and the derivatives market, but I’m not “spinning” this to suit a “liberal agenda.” The reason I think we should reacquaint ourselves with just how precarious our financial situation is — has everything to do with Planned Parenthood. Stay with me.
Carly Fiorina delivered a carefully-scripted, highly-offensive, and patently false statement during her “performance” at the Ronald Reagan Library during the GOP debate. Most in the media said she “won” — a few went so far as to report what she said “wasn’t factually accurate.” Let’s be honest — unless Donald Trump had walked across the stage and punched her right in the kisser, nothing was going to top her pornographically violent depiction of the GOP lies being told about Planned Parenthood.
In a couple of weeks the government will “run out of money” (which is political speak for Republicans in Congress just aren’t doing their job). And once again, just like when I first wrote about our money two years ago, Republicans are planning to throw a hissy fit if they don’t get their way. When our government doesn’t pay its bills, the world financial markets react negatively. It should only take once to learn this lesson, kids.
And lest there be a negative voice bouncing around in your head, just dying to put fingers to keyboard and explain to me how “both sides do it” — please, just stop. Congress is bound by law to appropriate funds and send a budget to the chief executive. They are also bound by Article IV, Section 1 of the United States Constitution, not to send the rest of the world scrambling for their wallets, wondering if the U.S. Dollar is really the best choice as a reserve currency.
“Full faith and credit shall be given … and the Congress may by general laws prescribe the manner in which such acts, records, and proceedings shall be proved” — and each time these spoiled, petulant children hold their breath until they turn blue just to get their way? They’re messing with the “full faith and credit” of the U.S. dollar.
I’ve given this a lot of thought — and to be perfectly honest about it — I can’t for the life of me understand how relatively intelligent people can continue to support Republicans who think it’s just fine and dandy to flush their hard earned tax dollars down the goddamned toilet.
And for what? LIES — and damned lies. We’re not talking about Washington gobbledygook, or political spin, or a simple difference of opinion. These morons are about to screw every single one of us — again — for something that they have to know is completely false. And if they don’t know that the Planned Parenthood hatchet job is a coordinated attack based on deception and lies — they’re just too stupid to serve.
Okay, so here’s the deal: I’m going to talk about money and how the TEA Party and Republicans are messing with it, but I need you to promise me two things. First of all: DON’T PANIC. There’s plenty of evidence that panic is EXACTLY what “they” want you to do. Secondly, even though I’m going to mention dollar amounts, don’t let your eyes glaze over, or skip ahead.
There are approximately 600 trillion dollars in the derivatives market. Yes, I said dollars – and that’s trillion, with a T. Roughly 96% of those derivatives are held here in the United States by JPMorgan Chase, Citigroup, Bank of America and Goldman Sachs. So there’s your first number to memorize: $600 trillion.
If your idiot brother-in-law, or conservative co-worker asks what a “derivative” is – tell them it’s the same thing that caused the Wall Street crash of 2007. With me so far?
The GDP of the ENTIRE planet (that’s the market value of all goods and services produced) was $60 trillion in 2010 (it’s over $70 trillion today … but 60 makes things easy to remember). Here in the United States, everything we make and everything we charge money to do (our GDP) … comes to just under $16 trillion. So there’s three sixes to remember — just think 6-6-6. Remember now – don’t panic.
[Former] Congresswoman Michele Bachmann would tell you it’s a sign from Dog or the mark of the beast or something: 6-6-6 (600 trillion dollars in derivatives, 60 trillion dollars GDP – of which $16 trillion is our share).
The reason we’ll keep repeating 6-6-6, is that it makes the math easy. The four biggest banks in the country are sitting on top of TEN TIMES the amount of risky financial instruments than the entire planet actually MAKES in a single year. Wait, what?
Your investment broker will remind you that companies will do what it takes to pay their quarterly dividends (and he or she is right). They’ll go on to say that leveraged assets, like options and derivatives, are STILL a good investment (even though the relatively small amount of ACTUAL dollars invested in them controls a disproportionately large position).
We’re talking 10 – 20 – 30 (in some extreme cases up to 100) times what might be funded if the banks had to deal in cash. Which explains why banks (and large corporations) are hoarding cash.
When I said the other day that the entire planet is BANKING on us to get our act together and pay our bills – I wasn’t joking. Our U.S. dollar is a global reserve currency; meaning it’s what entire governments BANK ON to hold its value. What House Republicans are saying is: ‘the check’s in the mail.’ That’s not just irresponsible – it’s potentially catastrophic for this planet’s financial house of cards.
Team Obama has been doing what they can, but really they’ve just been slapping dollars onto a paper maché model of “financial stability.” All we REALLY have is our good name and a pretty good line of credit.
If House Republicans allow the government to go into default (as it will at the end of the month), the first thing that happens is foreign investors will attempt to recover their deposits from European banks – which would run out of dollars double-quick. Short-term loan rates would go through the roof and more than a few of them would simply run out of money. We’re talking global bankruptcy.
Do the math: $600 trillion minus $16 trillion equals more than a few people getting absolutely nothing. Now would be a good time to remind yourself that the last time this happened, JPMorgan Chase, Citigroup, Bank of America and Goldman Sachs paid THEMSELVES first – before they worried about you and me.
Okay – I lied. Go ahead and panic. But channel those emotions into ACTION. Pick up your phone and scream bloody murder at your Representative to get off the dime and DO SOMETHING.
This isn’t just about reminding people that NO FEDERAL DOLLARS have been used to terminate an unwanted pregnancy since the Hyde Amendment was attached to an appropriations bill in 1976. This isn’t just about understanding that NOBODY IS SELLING “baby parts” — because that’s illegal, too. This is about the right wing’s ability to sell a LIE to the American people — and their willingness to run our ship of state aground — again — just to get that done. Tell the truth — do it often. Now would be good.