Friday, July 17, 2009

Glen Beck on the Goldman Oligarchy

This looks like it is going to be video clip day. Here's another must see video. This one from Glenn Beck. He does a great job of explaining the latest domestic Goldman Sachs machinations.

I should note that it is great that all this exposure of Goldman Sachs is developing. However, if you were a long time reader of EPJ, you would have known this stuff years ago.

I also believe I was the first person to use the term oligarchs in relation to America's financial elite. Simon Johnson followed.

Here's the Beck video. He does an awesome job.


  1. Nobelist Joseph Stiglitz made a comment some months ago that paralleled Beck's analysis, minus the flair for the dramatic and the naming of names.

    See here

  2. In case you missed this one: Jon Stewart is in the game.

  3. Mr. Wenzel,
    This isn't related to Goldman Sachs per se but I follow your weekly take after the Federal Reserve's H1 to H6 releases. Did you notice that on yesterday's report, M2 NSA is sharply up again, up more than 1% from last week while M1 NSA went down.

    Something wacky is going on at the Fed or maybe as someone pointed out in another blog, they are misstating M1 because of the sweep accounts.

    On the deflation argument and gold, here's my thought, maybe you could give me your feedback.

    Temporary price deflation will ultimately result in inflation and higher gold prices. Bill Bonner has a similar take but this is how my mind thinks the mechanism will be.

    Price deflation -> if Bernanke doesn't fire up the presses -> loan defaults and bank failures -> FDIC making insured depositors whole (I'm assuming they'll use the $500 billion credit line from the Treasury and if that's exhausted, the FED will back them up) -> this is inflationary -> depositors with over 250K move assets out of banks for safe keeping but where -> only gold and silver

    This is the course I envision if the FED didn't immediately intervene and print a bunch of money.

    Ultimately, I think we will see inflation via the banks lending to the government rather than to individuals and inflation via FED credit rather than M2 as banks will begin failing en masse.

    Another question for you? I looked at the FED's quarterly Z1 report.

    The total outstanding debt (households + businesses + state govt + federal govt + financial institutions) in the US is about $51 trillion as of 1Q 2009.

    If a majority of that debt is credit based, why isn't it showing up on money supply. Why are M2 and M3 way less than $51 trillion? One person's debt is another person's checking or savings or time deposit, right? If not, where did the money created for the loan disappear?

    Much obliged if you can shed light on my questions. Thanks.


  4. Glenn is correct to be worried.

  5. A short comment on the word ogigarch - I believe Webster Tarpley has been using this as his thesis for many years, at least since 1999. (from his book, Surviving the Cataclysm)

    His podcasts on Sunday mornings are worth a listen, a bit CT slanted, (but hey not much of what was considered CT is now known to be the truth) but very informative.

  6. @Troy

    You can't look at money supply week to week, you have to look at it over at least a three month period. There's too much noise when you look at them week to week.

    Your debt question has more to do with how often money is circulated in a given period. If I loan you $1000 and buy a computer with it, and the seller of the computer loans it out to someone else, and this goes on a few times. You can have quite a bit of debt in the system far exceeding the money supply.