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Posts Tagged ‘Goldman Sachs’

President Barack Obama and Warren Buffett in t...

I didn’t have as much patience as some did, and tuned out near the beginning when he talked about spending money to hire teachers and police officers, and instructed the States that they need to make high school mandatory until age 18.

Here in Canada, our Prime Minister wouldn’t dare get involved in the provincial issue of education to the degree Obama did.

He indirectly brought up Warren Buffett, who pays a lower effective tax rate that his secretary. I wrote an article in 2010 about Buffett’s three major inconsistencies. He said derivatives are weapons of financial mass destruction, yet subjected his shareholders to billions in losses from them, he said you shouldn’t buy banks, since they can cook their books 10 ways from Sunday, yet he bought a big share in Goldman Sachs and then Bank of America, and he said not to invest in capital-intensive businesses, only to make his largest-ever investment in a highly capital-intensive railroad.

Since then, Buffett has claimed that making Tim Geithner the Treasury Secretary was an excellent decision, and that Bernanke did a great job since the 2008 financial collapse, and deserved his reappointment.

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Gold Key, weighing one kilogram is used to acc...

Appearing on the Christmas Day 2011 broadcast of The Alex Jones Show, Porter Stansberry of Stansberry Research said in response to MF Global leveraging themselves 38 to 1 and going bankrupt (starting at 52:03):

This is how the system worked for 40 years. Ever since we left gold in ’71, this was the path to wealth. You borrow unlimited amounts of money and if you get in trouble, you will get bailed out, and you just borrow more money — that’s the secret. That is how Corzine made Goldman Sachs the biggest bank in the world — by leveraging everything, and getting bailed out anytime there was trouble.

The main factor in that case was likely outright theft, and regarding U.S. government policy, Congress’ repeal of Glass-Steagall under the Clinton administration in 1999 and the repeal of the ban on most derivatives under the Reagan administration were the real factors involved.

Stansberry is referring to Nixon ending the international gold exchange standard, which allowed foreign central banks to convert their USDs to gold at $35 an ounce, and there wasn’t anywhere close to 100% backing of the dollars held by other countries, so they were already lending out more dollars than was backed by gold.

Furthermore, Goldman Sachs is not the largest U.S. bank. Market capitalization, for Goldman Sachs, according to Yahoo Finance, was $46.17 billion as of December 23, while J.P. Morgan Chase was valued at $127.49 billion. The net income available to common shareholders of J.P. Morgan was $18.55 billion, while it was only $3.76 billion for Goldman Sachs.

For more on Porter Stansberry, see my article, Porter Stansberry’s prediction that the U.S. dollar will cease to be the world’s reserve currency in 2011 likely not to come true.

For more on the bankster gold standard, see my article, The gold double standard.

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The Big Five Canadian banks and their stocks: Royal Bank of Canada (RY), Toronto-Dominion (TD), Bank of Nova Scotia (BNS), Bank of Montreal (BMO) and Canadian Imperial Bank of Commerce (CM), have been paying common dividends since the 1800s.

BMO, Scotiabank, TD, CIBC, and RBC haven’t missed paying dividends on common shares since 1829, 1832, 1857, 1868, and 1870, respectively.

That is, through WWI, WWII, the Great Depression, all the U.S. and international financial crises, and with and without a central bank.

As of June 30, 2010 prices on the NYSE, their annual dividends are:
RY 3.80%, TD 3.40%, BNS 3.90%, BMO 4.70%, CM 4.90%

Whereas the big five U.S. banks (JP Morgan, Bank of America, Wells Fargo, Citigroup and Goldman Sachs)  are only paying:
JPM 0.50%, BAC 0.30%, WFC 0.70%, C 0%, GS 1.00%

They are also listed on the Toronto Stock Exchange, so you can buy in Canadian dollars to hedge against a declining USD, when appropriate.

In February 2009, I wrote how the Big Five Canadian banks were on pace to dwarf the five biggest U.S. banks, with the the five biggest U.S. banks having twice the market capitalization of the five biggest Canadian banks, despite the U.S. economy being nine times the size of the Canadian economy.

As of the end of June 2010, the five biggest U.S. banks are still less than three times the market capitalization of the five biggest Canadian banks.

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On Sunday, November 8, 2009, in The Sunday Times, Goldman Sachs’ CEO, Lloyd Blankfein, said he was doing “God’s work.” How accurate is his claim?

Mr. Blankfein is Jewish, as this jinsider.com article states, entitled, “Top Wall Street Jew: Lloyd Blankfein.” The oldest and most authoratative source to test his claim would be the Torah — the five books of Moses.

In the Torah, specifically in Deuteronomy, chapter 15, verses 1 to 3, we have the following English translation from the New International Version:

1. At the end of every seven years you must cancel debts.
2. This is how it is to be done: Every creditor shall cancel the loan he has made to his fellow Israelite. He shall not require payment from his fellow Israelite or brother, because the LORD’s time for canceling debts has been proclaimed.
3. You may require payment from a foreigner, but you must cancel any debt your brother owes you.

Therefore, in order for him to be doing God’s work, according to his religion, every seven years, he’d have to cancel all debts to fellow Israelites, now Jews, and keep them for all non-Jews. Where is the evidence Goldman Sachs is doing this? I can’t find any. In fact, I can only find evidence to the contrary. Namely, that all debts are kept past seven years for Jews and non-Jews alike.

For those who will argue that the Torah no longer applies to Jews, or that they can pick and choose which commandments to follow, that would indeed come as a surprise to Orthodox Jews, who I believe, rightly follow all of the Torah. Otherwise, what authority does anyone have to pick and choose which commandments of God to follow, if indeed they all be from God, as Orthodox Jews claim. If the Torah is inauthentic, in whole or in part, then Mr. Blankfein needs to cite his evidence to justify his claim that he’s doing “God’s work,” when he’s not following one of his God’s commandments.

To those who would say that God’s commandments in the Torah don’t apply to the actions of those working as employees of corporations, one need look no further than Exodus 32, to see that such an excuse doesn’t wash. Cite me a single verse that shows the actions of individuals were excused as a result of their participation as a group. Indeed, Aaron was held accountable for the actions of his fellow Israelites in worshipping the Golden Calf, when Moses was up on Mount Sinai.

Finally, to those who would say that all religions are fantasy, including Judaism, I say to them, that’s irrelevant to whether Mr. Blankfein’s claim that he’s doing God’s work should be held up to scrutiny, based on his own beliefs about God.

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