SCREWING AMERICA

When I refer to America in this column, I refer to the America of today. The 1 percent / 99 percent population. The gist is to further expose the 1 percent who have brought America to this unbalanced position. The banks, major corporations, and drug companies.

Timothy Geithner was President of the Federal Reserve Bank of New York during the last five years of  Bush 2's time in the White House. When Obama became President, he nominated Geithner Secretary of the Treasury.

The last five years of Bush's time as President were when the seeds were planted giving rise to the  mortgage collapse of 2008. The cause of the greatest recession in the United States since 1929. 

Geithner's years as Secretary of the Treasury were those years when the country was trying to dig itself out of the recession. The years the banks were bailed out, the years the banks survived stronger than ever, the years the banks were too big to fail, the years the banks were too big to prosecute.

I thought Obama's choice of Geithner as Treasury Secretary at the time was a bad move. Appointing a major banking person gave the impression Obama favored the banks over the people. He favored the wrongdoers. Geithner was incapable of understanding the plight of Main Street. He had spent too many years on Wall Street. He was cozy with banks. He was the wrong man. 

Time has proven my thoughts correct.

Geithner wrote a book about his experiences. He titled it Stress Test. Subtitled it Reflections on the Financial Crisis.

I have not read the book as yet. However excerpts are flying all over the place. In newspapers, magazines and on the Internet. Two excerpts clearly reflect Geithner was off base when he considered the well being of the banking industry rather than the American people.

One is "You have to do things that look deeply unfair. It looks like you're rewarding the arsonists....." He did. The banks came out better than ever and the American people got diddly dip.

The other was his concern that preventing a depression was "most important." He did prevent a depression. A depression for the banks. Again,  they survived and came out better than before. While at the same time, the people were and still are suffering from the effects of the recession. Many people have lost their homes and jobs. Many of those employed are working for McDonald type wages.

I want to stay with banks for a moment. What is about to be discussed has nothing to do with Geithner. I do not know if he knew and did nothing or did not know. I accuse him of no wrongdoing.

Money laundering is of great concern today. Especially, drug monies.

For the past several years, the big banks in the United States and world wide have been cleaning illicit profits from the drug trade. Mexico is replete with drug cartels. The cartels are earning huge amounts each year. It is estimated that the Mexican cartels make $20-30 billion dollars a year from drugs sold on the streets of America.

The money is of no value to the drug lords unless it can get into the economic stream. American and European banks have branches in Mexico. The drug monies are deposited in accounts in those banks. The banks' major banks are located in the United States. Once deposited in Mexico, the money can be obtained from the American bank affiliate. Or, a European one doing business in the United States. The money is in the process of being laundered. 

The banks make a ton of money off drug deposits. They charge fees. Banks as we all are aware have a fee for everything. The fees run into the millions and billions of dollars each year. One English bank with branches in the United states and Europe is HSBC. It was reported that HSBC has concerns it might lose these fees. It is estimated HSBC yearly fees from cartel monies is $2.6 billion.

Have you heard of any bank or bank officer being arrested for drug money laundering? No. It has not happened. The banks take the position they do not know where the money comes from and if they did, it is not criminal to accept the deposits.

I disagree. To me, the banks engaged are complicit in an improper activity and should bear responsibility for their actions.

Taxes are a constant problem in the United States. Congress wants to  cut milk to babies, lunches to school children, Social Security, Medicare and Medicaid. The Republican cry is the budget has to be balanced.

What about the major U.S. corporations that accumulate profits in off shore accounts in other countries so they do not have to pay U.S. taxes?

It is estimated that the top fifteen corporations involved in off shore activity have accumulated $1 trillion. $1 trillion that yet has to be taxed by the United States. The five top corporations are reported to be GE, Microsoft, Pfizer, Merck, and Apple.

How did this tax loophole come about? Easily answered. Congress over the years has passed laws permitting the offshore deposits by corporations. Our Presidents over the years have signed legislation permitting the activity. No one is without sin.

The cost of pharmaceutical drugs purchased in the United States is a disgrace. We constantly are being forced to over pay. Prescription drugs are a health necessity. There is no choice involved on the part of the consumer.

The population of the United States is 5 percent of the world population. Yet, Americans pay for 50 percent of all drugs purchased world wide. Five per cent of the people world wide paying 50 per cent of the world drug tab. Outlandish!

Jeff Hays recently did a documentary film Doctored. The documentary indicated that the real drug pushers in America are not the drug dealers on the streets. Rather, it is the pharmaceutical companies. He reported there are one dozen huge corporations that keep America ".....popping pills." The cost of which is in the billions.

An example is Humira which is produced by Abbott. Humira is a cancer tumor inhibitor. If a person needs it, they need it. It is claimed that Abbott's sales were $9.3 billion for one year.

There was a time when many Americans were buying their drugs from Canada and Europe. The same brand name drugs at a considerably cheaper price. Federal laws passed in recent years have almost totally closed that door to the American public.

Obamacare supposedly helps Americans with the drug cost problem. The doughnut is being worked on so that by 2020 its impact will be considerably less. The doughnut is only possible because of federal legislation. It has been going on for years. It stiffs seniors, those who have less income in their later years.

The drug industry has basically had a free ride for years. Approved and made possible by various Congresses and Presidents.

The American people are being beaten up by the big guys generally. It has to stop. The 1 per cent will stay 1 percent unless something is done. The middle class will never return unless something is done. What, I do not know. Congress is basically bought by industry lobbyists with huge political contributions. A President cannot sign into law legislation that cannot get through Congress.

It is said a people can only be defecated upon so long. Then something has to happen. Something will happen. 

I don't know.