Posted by: graemebird | October 13, 2008

Henry Paulson.


Henry Paulson is a criminal. He ran Goldman Sachs at a time when the most lucrative part of its book was naked short-selling. This is an activity that destroys and or hampers the expansion of important new small companies. He’s a bigshot with the Chinese as well which is not helpful.

Perhaps Goldmans is using this crash to rectify all its naked shorts that were made under Paulson. Who knows. But the son of a bitch is in no way acting in the interests of the US.

None of these banks have gone bust in the traditional sense. They are supposed to go bust and their books opened for line by line examination, their assets sold off in small pieces. What Paulson has made sure of is that the books are never opened except by people in the same racket.

Everything that Paulson has done is against the interests of the US.  As Goldman Sachs head he was one of the coterie that showed up to pressure the regulators into letting all these banks leverage themselves up from 12 times to like maybe 40 times. He is therefore one of the engineers of this crash.

They’ve got to open up everything, find out what these guys have been up to, and start imprisoning folks. Lehman was taken down because they had been getting themselves within the law under supervision. So there was no need to keep them alive, hide their books, or provide financing for a crooked outfit to take them over.

He apparently has made 70 trips to China. Unbelievable. You can trace some of the behaviour of this assclown from this here recording from a few years back. Time to arrest this guy and lock him up before he does more damage. It doesn’t matter if Goldman manages to clean up all its naked shorts during this crisis and with Buffet and Federal Reserves loans. Its still criminal behaviour and he was a driving force behind it.

This is a recording from 2007. Its clear that if you Americans can take down the biggest criminal you can fix your capital markets and have an entrepreneurial society again. All your small micro-cap companies that should be on their way to being market leaders have been held back or destroyed by criminals like Paulson:

Now there is this idea out there that we here in Australia might have something to gain from this bailout. But this is insane. Paulson isn’t bailing out the American economy. He’s speeding up its ultimate bankruptchy and ensuring hyperinflation.

The only chance we had for them to avoid hyperinflation was for the banks to go under and all their debts with them. Paulson is adding debt to America at an astonishing rate.

Its not a question of stealing for a worthy cause. He’s a wrecker. He’s just a public menace.

If Paulson had done the right thing and tried to get rid of every last bit of debt he could find, increased the reserve asset ratio, increased cash to stop this being deflationary, and basically just let every bank, with all its foreign debts collapse than they might have avoided hyperinflation.


Just attempt to think of what could happen to avoid hyperinflationary depression from here on in? What possible set of tricks, or combination of measures, could the Americans take to avoid hyperinflationary depression? How can they do it? They had their chance and Paulson and Bernanke cocked that chance up.

I’m a smart guy. And it is entirely beyond me how they could avoid hyperinflationary depression now that Paulson has closed off the last possibility of it.

There is another crazy idea that we have to keep these banks lending. This is insane. Yes we need the real economy maintaining its spending. But these lunatics who run the US banks ought not be getting themselves into more debt. These clowns have made 62 trillion in credit default swaps. Why would we want these guys creating more debts that ultimately the American taxpayer will have to pay unless these banks are liquidated?

These guys are saying these guys ought to have their bonuses capped. My goodness. The bleeding ought to stop immediately. These people are a generation of incompetents. If you bankrupt these guys straight up you are saving money from day one.



  1. I love communism

  2. Henry. I would have thought that was rather old news.

  3. The level of criminality of Goldman Sachs is such that retrospective law is entirely appropriate to recover funds if these funds are part of a comprehensive debt reduction plan.

    The average salary this year for a Goldman Sachs employee is about 770,000 USD. About half these salaries, going back to 2004 ought to be recoverable. Simple criminal behaviour on the part of a few of them could not justify such measures. But they really overstepped the line from charlatans and law-breakers, to flat out organized crime when they pocketed Washington and bent that city to their will.

    Obviously such drastic measures are not in order for the normal level of unethical behaviour or for lawbreaking in an atmosphere where regulation books stack up to the ceiling. It is the banksters bribes, payoffs and kickbacks taken all the way to Washington, on an unprecendented scale, and in such a way to scuttle the Republic and raid its treasury, that justified getting at least half employee earnings going all the way back to 2004. This before even taking the shareholder out.

    Here we see also why debt financing and limited liability ought never go hand in hand. A stipulation which would make all bankers without this sort of protection. And banking a local undertaking in the service of the sole trader.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s


%d bloggers like this: