The Money
Lenders & The Fall Of The USA
Along With The Collapse of Global Economies
Toilet Paper
Money
The Money Lenders: The Real Significance of The
Fed’s Zero-Interest-Rate Policy (ZIRP)
Most definitely watch the
eye-opening videos in the article.
Global Central Banks Acting In Concert-
Disinformation In Financial Dailies To Confuse The People
When The Truth Dawns On Hapless People, There Will Be Blood On The
Streets.
A Warning By IMF!
Democracy never works, even
with a perfect election system. Democracy is mob rule, and it is easy
to get a mob to do as you want, especially when you create the events.
The Murderous
Treachery of America's Past Wealth (video)
INTRODUCTION
The disinformation by the global financial dailies in the last twelve
months as to the cause of the global financial tsunami, serve the same
purpose as the global mass media when they perpetuated the lies that
lulled the people to support the war criminals Bush, Blair and Howard to
launch the barbaric war against Iraq and Afghanistan which resulted in
the genocide of millions, the mutilation of hundreds of thousands,
physically and psychologically, and the devastation of an entire nation.
Not to mention the trillion dollars or more of spent monies.
The wars unleashed thus far, specifically the “War on Terror” were
launched to preserve the shadow money-lenders’ political and military
power.
This War on Terror is the greatest military sideshow that distracted the
American people from the financial rape and plunder of their economy and
the destruction of their Constitution.
Since the Summer of 2007, we have witnessed a concerted effort by the
world’s central banks and global commercial and investment banks to
preserve the central banks, money-lenders, financial power, one that is
founded on fraud and structured in every detail as in the infamous Ponzi
scheme.
In the last seven years, the Ponzi scheme was globalized by the Shadow
Money-Lenders, siphoning hundreds of billions from so-called
sophisticated investors and sovereign wealth funds. At its peak, the
Ponzi scheme was estimated to be worth over $500 Trillion, with the
Credit Default Swap (CDS) portion just under $60 Trillion!
Hidden behind the headlines of the financial destruction that is
sweeping across the globe, lies another story – a dark tale of men who
orchestrated the crisis and have amassed enormous wealth and power at
the expense of the millions who are now unemployed and whose homes have
been foreclosed. This select group of men is in absolute control of the
unfolding events. Who are they?
Posted Comment; July 09; From Cliff Droke:
I've purposely kept my comments concerning the credit crisis at a
minimum since it began dominating the daily news headline. My reasoning
for this is because I knew the crisis was overblown and overstated in
the press and that there had to be a very good reason for it. The only
problem is I didn't know exactly what the reason was.
Time tells all, however, and I knew that sooner or later the truth, or
at least part of it, would leak out!
One thing experience has taught is that every notable market crash,
panic, bear market or financial crisis is the result of careful planning
and forethought by the monetary authorities. With trillions of dollars
at stake, nothing happens without their tacit or explicit approval and
there is simply no such thing as a crisis that happens by "coincidence."
For happenstance to be allowed to run its course in with trillions in
derivates out there would be certain death for the financial system. As
the economist Dr. Stuart Crane was fond of saying, "Things [in the
monetary world] don't just happen to happen. They happen because they
were planned to happen."
Another thing Dr. Crane used to say was that you can always tell the
underlying reason for any crisis by waiting to see what the results of
that crisis are. In the final analysis, the results, as he pointed out,
are in what the crisis fomenters expected to yield as the fruit of their
labors. And it's no coincidence that in every case, a financial crisis
always yields the following results:
1.) Greater consolidation within the banking and financial industry with
the smaller players being merged into the bigger players, or else swept
away;
2.) Greater regulator powers for the monetary authorities.
There has never been an exception to this outcome in the history of U.S.
financial crises.
Posted Comment; June 2009 Anonymous
Capitalism is self destructive...9/11 was an inside
job...the end of America to fascism an inside job.
US dollar went from $25 to almost zero since 1900. Most wars over the
past century were all caused by the elites.
I recently read an article about the American dollar decreasing in
value, and how China was not happy as the value of the money America
borrowed from China would be worth far less on pay back...Do we really
want to make China mad at us?
And after what I watched via internet the twin towers and bldg. 7
facade, it made me want to vomit!
Is it better to let the country fall into a depression than to spend
trillions bailing out the very people causing the problem.?
President Obama stated in one of his speeches that "We need a new
Declaration of Independence"...hmmmm...those should be fighting
words...Our forefathers gave us the right to bear arms, and I really
don't see America having a NEW Declaration of Independence...Those 50
men and their families were hunted down by the British government and
died for aiding in making America independent. I was hoping we would
never have to fight another civil war, but it seems it is
inevitable...the American people will not stand for there freedom being
taken away!!! Southern states and Northern states are stocking up on
guns and supplies...What do you think will happen?
Posted Comment; Sept. 09; Anonymous
"The zionist power elite on Wall Street engaged in
the most massive fraud in America's history. And you know what? Not a
single zionist criminal in that group was arrested by the FBI for what
they did in issuing worthless paper around the world. Tens of hundreds
of the top zionists should have been arrested and charged.
The zionist fraudsters included senior officers of the Federal Reserve,
the auditing companies like Price Waterhouse, the bond rating agencies,
the bond insurers, the investment bankers like Morgan Stanley, Wall
Street insiders, the mortgage companies, the regulators, the politicians
etc..
We are talking trillions of dollars going down the tube because of these
zionist criminals. At the same time these fraudsters made hundreds of
billions in fees. America is now truly impoverished. But those that did
the stealing are jumping with joy - Their vaults are brimming with cash,
gold, silver and diamonds and they now own even more of America and the
world."
Posted Comment; Sept. 09 David Breashears
You probably heard about the massive flooding that
occurred recently on flood plains of Arkansas and Oklahoma that wiped
out the vital winter wheat crop. That was not an act of nature. A levee
was deliberately burst to cause the flooding. This will cause a wheat
shortage at a time when it is most desperately needed. The Gov. has shut
off water to thousand's of California farmers in the guise of protecting
a small fish.
Some organization or group (perhaps Monsanto) is spreading a super
deadly wheat fungus around the globe. It kills 100% of the wheat and
other crops it infects.
THINK GENOCIDE. It's a well known fact that the Rockefellers, the
Rothschilds and the other 10,000 global elitists have determined that
there are just too many of us on planet earth. So they have decided to
cull the population by 4.5 billion. The most effective way of doing it
is by mass starvation. Think of the forced Ukrainian famines of the
early 1930s ordered by Stalin in his collective civilization program.
His Jewish henchmen wiped out half the population of ordinary decent
hard working white Christian Ukrainian folks - 7-8 million perished.
It was a highly effective campaign of genocide done on the cheap.
Today they don't need to resort to violence. Recently the research
biologists have plagued mankind with yet another man-made virus...the
H1N1 and soon they will arbitrate everyone to get a flu shot loaded with
mercury and other harmful, or deadly, compounds. We may die from these
man-made viruses and if not we'll simply starve to death unable to grow
or produce food or fuel. Our only chance for survival is to stand up and
take back America!!! I'd rather die fighting than to live as a cowardly
slave.
Comment; Posted Aug. 2009 Anonymous
There is no "real money." There hasn't been any since
1933.
I used the Fair Debt Collection Practices Act (FDCPA) to get the debt
vultures off my back on a credit card debt. I also used the Fair Credit
Reporting Act (FCRA) to prevent them from ruining my credit rating. When
the IRS filed bogus liens for 3 consecutive years I used the FCRA to
have them removed from my credit history.
The truth of the matter is you don't have to pay anyone and still have a
credit score over 800. But your going to have to get off your ass-etts
and do some study on the FCRA and FDCPA. Or you can chose to remain
blissfully ignorant and go down with the ship.
And you mortgage holders may want to research the Credit River Decision
before you become homeless.
Money makes people
corrupt and the corrupt make money!
Just a few recent
Criminal Corporate Scandals
Enron
Kenneth Lay donates millions to Bush's election, who
then signs a bill giving Enron power to control and set gas and
electricity rates for CA. residents. I, personally remember the
blackouts, the price gouging, the lies coming from Sacramento and the
anger of the people.
Just
before its scandalous collapse, Enron had an $80 billion market
capitalization as one of the world’s most admired companies.
Today, it is bankrupt, with its investors and employees losing billions
of dollars. The collapse arose from bad investments,
over-leveraging, and the revelation of huge obligations that were not
adequately reported in Enron’s financial statements.
Key
figures in the Enron debacle include Chair and former CEO Ken Lay,
President Jeffery Skilling, a main culprit, CFO Andrew Fastow, Chief
Accounting Officer Richard Causey, Chief Risk Officer Richard Buy,
Assistant to the CFO Michael Kopper, and Arthur Andersen Partner David
Duncan.
The
Republicans, especially, Cheney and Bush, loved Enron and Kenneth Lay,
as he donated millions to the careers, that was until the scandal
broke...they then scurried away as fast as they could...like the rats
they are. Watch the below Video of Bush's ties
to Enron.
Enron founder Ken Lay dies
64-year-old former energy executive was awaiting sentencing for fraud.
NEW YORK (CNNMoney.com) -- Kenneth Lay, who rose
from a poor preacher's son to become a millionaire before being
convicted of corporate fraud, died early Wednesday in Aspen, Colo., a
family spokeswoman said. Lay, 64, was awaiting sentencing after being
found guilty of conspiracy and fraud in the Enron trial in May.
It is also noted that all further investigations and law suits again
Lay and his estate will cease. America where freedom and rights are
secured by the wealthy and taken from the working class. A corrupt
country...where laws are written by the wealthy to protect the same.
You have a much higher probability of going to jail for stealing a
candy bar than for white collar crime involving billions $$$.
*Millions of Americans do
not believe that Kenneth Lay just happen to die before sentencing. He
was after all only 64 years old and did have some powerful friends in
the Whitehouse that surely didn't want him singing like a canary.
Supposedly he had a rushed autopsy and was immediately cremated with his
ashes scattered in the Colorado mountains. If dead the court stops all
procedures and again the people get shafted for billions and if he is
alive...he gets away with a few 100 million and Bush and Cheney retire
rich and free of investigation and the American people lose billions
more of their money. Either scenario the people lose. What a scumbag
country America has turned into!!!
WorldCom
The
WorldCom accounting scandal involves many people including CEO Bernard
Ebbers, CFO Scott Sullivan, Chief Accounting Officer David Myers,
Accounting Director Buford Yates, and accountants Troy Norman and Betty
Vinson.
It's
scandalous bankruptcy
cost its investors and creditors billions of dollars, and its employees
their jobs.
Parmalat
Parmalat, Italy’s
largest dairy company, remains under investigation as authorities seek
to unravel a web of fraudulent transactions and shell companies used to
cover financial losses and raise capital. Details of this fraud
continue to emerge as the investigation proceeds. The fraud became
public when Bank of America revealed that a $4 billion US deposit that
Parmalat reported did not exist. This deposit was among the assets
that Bonlat, a Parmalat subsidiary (based in the Cayman Islands)
reported. The fraud will harm Italian dairy farmers, who are due a
collective 120 million euros, and world-wide equity and debt investors
who stand to lose billions.
Parmalat’s
CEO Calisto Tanzi and others were arrested for “promoting, directing and
organizing the operation (BBC News 2003),” as were company accountants
accused of issuing false information about its finances, hiding losses
and debt in special purpose entities under company control, and
fabricating assets and deposits as a basis to raise capital. Its
independent auditors, GT, were also arrested, accused of “suggesting
ways for the company to commit fraud” (Guardian Newspapers, 2003).
GT’s and lower management level accountants’ involvement is especially
puzzling since they face large civil and criminal penalties, and seem to
have had relatively little to gain, e.g., their respective shares of
Parmalat profits, some human capital, their continuing salary and
potential bonuses.
Adelphia Communications
John J.
Rigas, founder and CEO of cable television company Adelphia
Communications, bought a small cable franchise for $300, which became
very large mostly through aggressive acquisitions of existing companies.
Ultimately, he took Adelphia public, garnering countless millions in the
initial public offering of his shares. In 2002, Rigas and his son
Timothy were arrested for seeking to defraud its shareholders.
Both were convicted in 2004 and face up to 30 years in Federal prison.
The Rigas took money from Adelphia to finance their extravagant personal
lives, which prosecutors estimated exceeded $100 million.
The
investor deceptions involved making unreported liabilities totaling over
$2 billion that they shifted to unreported affiliate subsidiaries and
overstated statistics about their growth of cable customers (SEC
2002). While the amounts involved of the fraud may seem large, the
Rigases didn’t need the money as they made millions when Adelphia went
public. However, the family lived a famously extravagant lifestyle
including owning luxurious homes across North America and a personal
jet, and constructing a personal golf course. To finance their
lifestyle, the family treated Adelphia like a personal bank account and
covered up the activity by producing misleading financial reporting.
John Rigas is 79 years old. He was in his 70’s when the worst of
the company looting occurred. These actions will almost certainly
cause him to spend the rest of his life in prison.
Health South
Richard Scrushy took HealthSouth (HRS) public in 1986 to soon become
the
nation's largest provider of outpatient surgery, diagnostic and
rehabilitative healthcare services.
The SEC (2003) claims that at CEO
Scrushy's instructions, HRS inflated its earnings by 4,700%, i.e., over
$2.5 billion, to meet Wall Street analysts' expectations and maintain
its stock’s market price. Scrushy used many methods to perpetuate
these schemes. He threatened to fire chief internal auditor
Rebecca Amick if she delved to deeply into
HRS’s corporate records, and to fire the top management team of
Treasurer (Malcolm McVay), CFO (Michael Martin), Chief Information
Officer (Kenneth Livesay), corporate Vice Presidents (Angela Ayers and
Rebecca Kay Morgan) and Assistant Vice President (Virginia Valentine) if
they didn’t remain complicit in his activities. These officers
would, for example, manipulate the deductibles from its patient’s
insurance companies, and charge patients for individual counseling
sessions, when they actually went to group counseling.
HRS’s team continued to lie
in order to cover-up this scheme. In 2002, Scrushy and Martin
swore that HRC's 2001 Form 10-K contained no "untrue statement of
material fact." The SEC also questioned HRS’s auditors (Ernst &
Young’s) competence, given the many years and massive amounts of this
fraud, including not detecting a $300 million overstatement of cash.
While these frauds brought Scrushy over $170 million and a few
top officers some wealth, they all fell deeper into the morass and knew
that they would face severe penalties for their duplicity. In
fact, all of the accounting officers pled guilty to the fraud, and some
are even now aiding in Scrushy’s prosecution. As in many other
cases, had they earlier acted properly—especially given HRS’s poor moral
environment—they would have avoided these problems.
Martha Stewart
Recently, Martha
Stewart was convicted of conspiracy, obstructing justice and making
false statements to investigators. Her conviction arose from an
investigation of an ImClone Systems stock sale that she ordered, after
learning that her friend, ImClone Chair Sam Waksal, had sold shares with
foreknowledge of a pending Federal Drug Administration (FDA) decision
not to approve an experimental drug for which the company had optimistic
expectations.
Selling the stock
saved Ms. Stewart about $42,000. The stock has since recovered
and, at the time of this writing, trades above the price at which
Stewart sold it. Both she and her broker, Peter Bacanovic were
convicted and sentenced to five months in Federal prison.
Bacanovic, incidentally, had only the stock commission and a potentially
enhanced brokerage relationship with Stewart to gain from his role in
the scandal. Shareholders of Stewart’s company, Martha Stewart
Omnimedia, lost hundreds of millions of dollars due to her damaged
reputation and absence from the business’ operations. As its
principal shareholder, Stewart lost millions herself arising from the
precipitous drop in the value of her stock—and all this for about
$42,000.
Not only does these
unscrupulous companies steal billions from investors and millions more
in tax funded investigations they create the loss of millions of jobs.
____________________________________________________________________________________
America's Sink into
oblivion
Six Million Home Foreclosures and counting
Are FDIC Insured Banks the Next Time Bomb?
Home Foreclosures
A note: "Home values never went up, only the prices. By
lowering the interest rate like they did is basically like printing
money and giving it to everyone. Throughout our history this has been
done and always has the same results. The ability for you to buy a
higher loan increased, not the value of the property. No one's income
went up, in fact many are going down."
Over a year ago the Jewish Hank Paulson declared "The
US Banking System Is A Safe and Sound One", the market's reaction to
that piece of news was to short Fannie (FNM) and Freddie (FRE) into
oblivion. A key issue there was holdings of mortgaged backed securities,
specifically RMBS; valuations of those things depended on (a) their
credit rating, (and once the LTV started to slip the rules said they had
to be downgraded, so the price tanked), and (b) there was a rule of
thumb that the value of those things was what an equivalent Treasury
cost, less the cost of a CDS to insure them; when fear took over, the
cost of a CDS went through the roof, the "market" (it never was a real
market), froze. Then there was Lehman.
What drove that crisis was fear of the future, and the reason so much
money was required to bail out the players
($2.7 trillion so far) was that
previously if you had a "good credit score" you could borrow short-term
Treasures, and buy an RMBS on 100% margin, and make a fortune; then the
margins got called.
Now the future is threatening to arrive:
There are two issues, (a) how much of that $2.7 trillion paid out
mainly by the Fed (largely without any oversight by Congress) will get
paid back, and (b) what's going to happen to the legacy banks who (then)
had the luxury of being able to "take a view" on their portfolios of
"originate and hold", and make a provision.
Right now the "reserves for losses" of FDIC insured banks is $211
billion on a portfolio of $7.625 trillion of loans and leases plus
another $1.365 trillion of RMBS. In the circumstances that looks a tad
light.
But the die is still rolling, and where it ends up will determine how
much the "Too Big To Fail" card-sharks pay back, and how much of the
$1.422 trillion of equity capital of the FDIC banks gets destroyed.
It's sometimes easy to forget that in this war the front line is
foreclosures; although you wouldn't think that from the news. All you
get is occasional pretty charts from the Mortgage Bankers Association
with percentages (it's never quite clear of what), plus sound bites from
the rating agencies like "the cure rate went down last month" or
from RealtyTrac: "total filings went up last month".
From that trickle of managed, massaged and censored dispatches, it
sounds suspiciously like somebody (or some-bodies), is trying to hide
something.
Like a ticking bomb?
Perhaps the bottom in house prices was in May or
perhaps there will be another leg down, but that's starting to be
academic; a bottom is somewhere in the neighborhood. The story now is
foreclosures; that's what drove house prices down to where they are now
and that's what will keep them down. The acid on that cake and the
nightmare for anyone in negative equity, is how many there will be by
the time this is all over?
Since January 2005 over two million homes
in USA have been foreclosed, that's about 1.7% of the total
housing stock.
Many of those were family homes, so that's
probably already directly affected about 3.5% of the American
population.
This is the Bomb:
Right now in the USA there are over two million
mortgages in either the first stage or the second stage of foreclosure;
a large majority of those will end in foreclosure. At the current rate
of "clearance" it will take two years for all of those to be processed.
And that's not counting new ones getting added to the
pipeline at a rate of about 100,000 a month. That's clearly not
something that anyone thought worth mentioning in the one hundred pages
of turgid drivel "The Industry" shoveled out over the past three months;
that I ploughed through to make sure I got it right (dear reader - just
for you).And you wonder why there is a credit crunch?
The News Isn't Pretty
The headline data that is typically released, for
example by RealtyTrac (i.e."360,000 Filings In July") is an
aggregation that has to be disaggregated to make any sense of it, there
are three stages:
Stage 1: A notice of default is posted in the
County Recorder's Office
Stage 2: A Notice of sale is announced
Final Stage: A public auction supervised by
the trustee who transfers the deed.
The borrower can normally "cure" the process at any
point, typically up to five days before the date of sale by making full
payment, although some mortgages give the lender the
power to push through to disposal of the property
as soon as the loan becomes delinquent. In most cases the process
is non judicial and governed by the wording of the mortgage so there is
no requirement to involve the Courts and the only option the borrower
has to stop or delay the process is to pay up.
It's hard to get data, the best source I found was
from RealtyTrac.
So that's 2,100,00 foreclosures still "stuck" in the
system
Feb. 26 (Bloomberg) --
Bank seizures of U.S. homes almost doubled in January, 2009 as property
owners failed to make higher payments on adjustable-rate mortgages.
The money lenders and the evaluators over value homes
by up to 200% and when home purchases max...they deflate the housing
bubble, drastically dropping home prices, causing mass foreclosures. The
banks then sale the properties as write-offs making even more billions.
U.S. home prices fell last year, 2008, for the first
time since the Great Depression. That made it more difficult for
homeowners to sell or refinance properties encumbered by mortgages
higher than the value of the houses themselves. Sales of existing homes
fell last month to the lowest in at least nine years, the National
Association of Realtors said yesterday.
Defaults among subprime borrowers and those unable to
meet rising payments on adjustable-rate loans drove foreclosure filings
to the highest since August and the second-highest since RealtyTrac
started keeping records three years ago. About $460 billion of
adjustable mortgages are scheduled to reset this year, raising minimum
payments for borrowers, according to New York- based analysts at
Citigroup Inc.
About $190 billion in subprime adjustable mortgages
are slated to reset this year, according Mark Zandi, chief economist of
Moody's Economy.com.
State housing agencies are turning away many applicants because their
homes have lost too much value or they've accumulated too much debt,
according to estimates from Geoffrey Cooper, emerging markets director
at a unit of MGIC Investment Co., the country's biggest mortgage
insurer.
Home prices in 20 U.S. metropolitan areas fell in December by the
most on record, according to the S&P/Case-Shiller home-price
index released today. The measure dropped 9.1 percent from a year
earlier. Nationwide, home prices fell 8.9 percent in the fourth quarter
from a year earlier, the biggest decline in 20 years of Case-Shiller
records.
``With the collapse in housing values, many of these homeowners
realize there's no chance they will ever be a true owner of the home,''
Zandi said. ``They are just handing the keys back to the bank.''
Nevada, California and Florida recorded the highest foreclosure
rates among the 50 states, RealtyTrac said.
Mortgage companies including Fannie Mae and HSBC Finance have joined
a U.S. Treasury Department-led effort to offer 30-day foreclosure
freezes to give delinquent borrowers more time to arrange payment plans.
(30 days...aren't they generous?)
Citigroup Inc., JPMorgan Chase & Co., Bank of America Corp., Wells
Fargo & Co., Washington Mutual Inc. and Countrywide Financial Corp. have
initially agreed to participate in the effort.
All Jewish controlled financial companies.
Foreclosure Rescue Scams:
Another Potential Stress for Homeowners in Distress
Everybody's a crook.
The possibility of losing your home to foreclosure
can be terrifying. The reality that scam artists are preying on the
vulnerability of desperate homeowners is equally frightening. Many
so-called foreclosure rescue companies or foreclosure assistance firms
claim they can help you save your home. Some are brazen enough to offer
a money-back guarantee. Unfortunately, once most of these foreclosure
fraudsters take your money, they leave you much the worse for wear.
Fraudulent foreclosure “rescue” professionals use
half truths and outright lies to sell services that promise relief and
then fail to deliver. Their goal is to make a quick profit through fees
or mortgage payments they collect from you, but do not pass on to the
lender. Sometimes, they assume ownership of your property by deceiving
you, the homeowner. Then, when it’s too late to save your home, they
take the property or siphon off the equity. You’ve lost your home to
foreclosure despite your best intentions.
If you think you may be facing foreclosure, the
Federal Trade Commission (FTC), the nation’s consumer protection agency,
wants you to know how to recognize a foreclosure rescue scam. And even
if the foreclosure process has already begun, the FTC and its law
enforcement partners want you to know that legitimate options are
available to help you save your home.
How the Scams Work
Foreclosure rescue firms use a variety of tactics to
find homeowners in distress: Some sift through public foreclosure
notices in newspapers and on the Internet or through public files at
local government offices, and then send personalized letters to
homeowners. Others take a broader approach through ads on the Internet,
on television, or in the newspaper, posters on telephone poles, median
strips and at bus stops, or flyers or business cards at your front door.
The scam artists use simple and straight-forward messages, like:
“Stop Foreclosure Now!”
“We guarantee to stop your foreclosure.”
“Keep Your Home. We know your home is scheduled to be sold. No
Problem!”
“We have special relationships within many banks that can speed
up case approvals.”
“We Can Save Your Home. Guaranteed. Free Consultation”
“We stop foreclosures everyday. Our team of professionals can
stop yours this week!”
Once they have your attention, they use a variety of tactics to get
your money:
Phony Counseling or Phantom Help
The scam artist tells you that he can negotiate a
deal with your lender to save your house if you pay a fee first. You may
be told not to contact your lender, lawyer, or credit counselor, and to
let the scam artist handle all the details. Once you pay the fee, the
scam artist takes off with your money.
Sometimes, the scam artist insists that you make all
mortgage payments directly to him while he negotiates with the lender.
In this instance, the scammer may collect a few months of payments
before disappearing.
Bait-and-Switch
You think you’re signing documents for a new loan to
make your existing mortgage current. This is a trick: you’ve signed
documents that surrender the title of your house to the scam artist in
exchange for a “rescue” loan.
Rent-to-Buy Scheme
You’re told to surrender the title as part of a deal
that allows you to remain in your home as a renter, and to buy it back
during the next few years. You may be told that surrendering the title
will permit a borrower with a better credit rating to secure new
financing – and prevent the loss of the home. But the terms of these
deals usually are so burdensome that buying back your home becomes
impossible. You lose the home, and the scam artist walks off with all or
most of your home’s equity. Worse yet, when the new borrower defaults on
the loan, you’re evicted.
In a variation, the scam artist raises the rent over
time to the point that the former homeowner can’t afford it. After
missing several rent payments, the renter – the former homeowner – is
evicted, leaving the “rescuer” free to sell the house.
In a similar equity-skimming situation, the scam
artist offers to find a buyer for your home, but only if you sign over
the deed and move out. The scam artist promises to pay you a portion of
the profit when the home sells. Once you transfer the deed, the scam
artist simply rents out the home and pockets the proceeds while your
lender proceeds with the foreclosure. In the end, you lose your home –
and you’re still responsible for the unpaid mortgage. That’s because
transferring the deed does nothing to transfer your mortgage obligation.
Fraudulent foreclosure “rescue” professionals use
half truths and outright lies to sell services that promise relief and
then fail to deliver.
Bankruptcy Foreclosure
The scam artist may promise to negotiate with your
lender or to get refinancing on your behalf if you pay a fee up front.
Instead of contacting your lender or refinancing your loan, though, the
scam artist pockets the fee and files a bankruptcy case in your name –
sometimes without your knowledge.
A bankruptcy filing often stops a home foreclosure,
but only temporarily. What’s more, the bankruptcy process is
complicated, expensive, and unforgiving. For example, if you fail to
attend the first meeting with the creditors, the bankruptcy judge will
dismiss the case and the foreclosure proceedings will continue.
If this happens, you could lose the money you paid to
the scam artist as well as your home. Worse yet, a bankruptcy stays on
your credit report for 10 years, and can make it difficult to obtain
credit, buy a home, get life insurance, or sometimes get a job.
Where to Find Legitimate Help
If you’re having trouble paying your mortgage or you
have gotten a foreclosure notice, contact your lender immediately. You
may be able to negotiate a new repayment schedule. Remember that lenders
generally don’t want to foreclose; it costs them money.
Other foreclosure prevention options, including
reinstatement and forbearance, are explained in Mortgage Payments
Sending You Reeling? Here’s What to Do, a publication from the FTC. Find
it at www.ftc.gov.
You also may contact a credit counselor through the
Homeownership Preservation Foundation (HPF), a nonprofit organization
that operates the national 24/7 toll-free hotline (1.888.995.HOPE) with
free, bilingual, personalized assistance to help at-risk homeowners
avoid foreclosure. HPF is a member of the HOPE NOW Alliance of mortgage
servicers, mortgage market participants and counselors. More information
about HOPE NOW is at www.hopenow.com.
Red Flags
If you’re looking for foreclosure prevention help, avoid any business
that:
guarantees to stop the foreclosure process – no matter what your
circumstances
instructs you not to contact your lender, lawyer, or credit or
housing counselor
collects a fee before providing you with any services
accepts payment only by cashier’s check or wire transfer
encourages you to lease your home so you can buy it back over time
tells you to make your mortgage payments directly to it, rather
than your lender
tells you to transfer your property deed or title to it
offers to buy your house for cash at a fixed price that is not set
by the housing market at the time of sale
offers to fill out paperwork for you
pressures you to sign paperwork you haven’t had a chance to read
thoroughly or that you don’t understand.
If you’re having trouble paying your mortgage or you have gotten a
foreclosure notice, contact your lender immediately.
Report Fraud
If you think you’ve been a victim of foreclosure fraud, contact:
Federal Trade Commission
Your state Attorney General
Your local Better Business Bureau
Screw the Money Lenders;
Your house – lose it. Give up on it (assuming
you are having problems paying for it.) You can buy the same house in 2
years for 2001 prices and get it for a few hundred thousand dollars
less. If you are in duress and having problems with the payment, stop
paying it. Stay in the house as long as you can. Fight the foreclosure
at every turn. Doing the 'right thing' by paying your bills until you go
broke and lose everything anyway is not good economic sense for you and
your family. If you continue to try to keep up you will not only lose
the house but you will be destitute and heading towards homelessness.
Pride destroys finances.
Fight the foreclosure – Answer any papers sent to you by the
bank. You will have 20 days to respond, wait til 18 go by and overnight
it. Complain about the loan and the company and the mortgage broker.
They will have 20 days to respond. And so on and so on. This will give
you 3 to 12 months in your house rent and mortgage free.
The bank is overwhelmed with properties. Law forbids them from owning
too much property. Due to this, the foreclosure could be pushed off for
a long time. You can even try to ‘fake’ sell it with a realtor for some
real high price or some 'never going' to happen short sale.
These methods, depending on the lender could give you 2 years or more in
your house with no payments. Why go broke? Save your money in a hole in
the ground. Help your family survive and forget your 'honor.' The lender
could not care if you lived or died. They knew what they were doing.
Until someone else owns it, it is your property.
Plan for your bankruptcy- Don’t go nuts on your credit cards, but
use them up if you cannot pay them. Do not go bankrupt until the month
your house is going to foreclosure sale. This will give you an
additional three months. Even more if you can work something out with
the attorney to delay the proceedings. That is at least 3 more months of
living free. Watch excessive spending on cards or huge items going back
12 months before bankruptcy. Hide your cash.
This is especially important if you lost your job. The bank will not go
under if you do not pay them, but your family will starve if you feel
honor bound to pay the crooks, I mean lenders and credit card companies,
till you are really broke and destitute.
Learn how to send cease and desist orders to creditors you are going to
bankrupt so they leave you alone.
Realize you are talking about surviving here. You need your car
and a roof over your head. You need money to live and eat for you and
your family. Don’t worry about breaking the hearts of the crooks that
made this mess or the credit card companies (read: loan sharks.) Worry
about you.
Feel bad, like you are using the system? These scumbags have
received 100s of billions of dollars of our taxpayers money for being
crooks. And the CEOs made millions more. So, F#ck em, burn em back.
Worry about you and your family not some billionaire. They borrowed the
money to lend to you. They got it at 0.25% interest (that is a quarter
point) and sold it to you on some screwed up plan that is going up to 8%
or more. They will (and are) being bailed out by our loving congress and
the lender still made tons on the interest they earned from you over a
few years.
After your bankruptcy move into a nice rental and relax. You
should have little or no debt. If you still have your job you may be on
a small repayment plan, but you will be fine.
Take care of
yourself and your family first
The prices will soon hit real rock bottom and
stay there for quite a while, 2001 prices. Now you can look into buying
a house, maybe even the same one, at less than half of what you had
originally bought it for. Yea, you will have a bankruptcy, but so will
everyone else. You have some credit, maybe a card or two, a car loan.
Best of all, your family is well fed, safe roof over their head, and you
still have a lot of money in that hole somewhere.
In other words, survive and let the multi billionaires who have ripped
everyone off for so long get some heat. You and your family come before
any crooks like the lenders. Your family first, lenders last.
Wisdom – you did not get out when you could have. The experts,
who have a vested interest in making you spend your money, told you it
would be fine. They lied. Take care of yourself, the next year is going
to be a bitch.
Prices on condos will drop and be close to 2002/3
levels on their way down to 2001 levels. Many small condo complexes will
be bought as apartments or most likely timeshares.
-Home prices will fall and keep falling, then stagnate for at least 4
years. Bargain hunting time (in about 2 years). Loans will suck as 7%
will be the new ‘good fixed rate.’ But your total debt will be a few
hundred thousand less if you buy during the stagnate period.
1- You are not committing fraud by staying in
a house you legally own. Foreclosure is a legal action and until it is
finished it is your home. Everything in that home is yours, you can take
it with you. Lenders do not want empty houses and cannot go to
foreclosure sale very easy right now, so stay in it as long as you can.
2- Paying your bills while knowing that you will be unable to
keep up with them means you spend all your money every month and still
fall behind. Lenders do not care how honorable you are. You are late,
you are screwed. If you do not see a way out, stop paying now.
3- Until the day of the foreclosure sale or bankruptcy discharge
it is your house. You can paint it, modify it, even sell it. You own it.
4- Realizing you are in financial trouble, it is better to start
clean with a bankruptcy. You will get credit and can buy cars and homes
within a very short time, even a day. Depends on your situation.
5- Renting is cheaper. You pay a monthly rent and nothing else.
No insurance, principal, interest, inflated taxes, major repairs, etc.
You will probably save 100 to 1500 a month depending on your situation.
-A whole bunch of fake baloney will happen on capitol hill regarding the
lending industry but nothing will happen, other than your taxpayer money
making sure the lenders did not lose a penny. S of Sept.2009 your
neighborhood Federal bank has counterfeited 2.4 trillion dollars, in
which you, the tax payer, will have to repay...plus another trillion in
accrued interest. But it's better that the Jewish owned Gov. is indebt
rather than you...right!
-All those bankrupt sub prime lenders? Wow, hey, they all started new
companies. Wow, amazing how that worked out. Look for that beginning
next year.
-Wall street and major news outlets will continue to talk about
‘downturns’ and other things to make you feel rosy. That is mostly to
suck the money out of those people who can still be gullible enough to
fall for it. Remember who they work for. It ain't you.
- Gold, silver, and Oil will bankrupt many as it drops to the floor,
bringing dumb investors to their knees. Oh yea, oil is gonna go to two
hundred you say. Hey, it is your money, go ahead and gamble it like a
moron. It has dropped back down to around $34 dollars and as for gold
and silver, if you buy it now you are really stupid.
- Iraq - Now that the 'nuclear peace' is over, things are going
back to the way they were (and have always been) pre- 1945. Big
countries make puppets of little countries. Iraq no longer exists. Many
dictators want it for different reasons. Saudis want a buffer state, or
part of one, to make sure Iran is not their next door neighbor. Syria
and the other little countries want a spot at the table and part of the
spoils. Iran wants a piece of the action and will be part of the
political process (read: puppet) in Iraq. America will not leave Iraq,
America will have a small 'American Iraq' in there somewhere. Iraq as a
country on the world stage is over. And it will be a long time before it
will really be one again, if ever. The question is, which country will
it be a part of in 2020? Or will it be split into other countries? As of
2009 there are speculations of breaking the country into three parts. No
matter which it is, the war in Iraq was over Iraqi oil and nothing else.
Greedy dictators are wringing their hands with excitement over owning
one of the world's largest oil reserves. No mention of the 2 million or
so Iraqis killed!!! Just causalities of America's interest...as always!
______________________________________________________________________________________________
The news's reports daily
that the country is coming out of the recession, but mentions nothing
about the 34 million whom lost their jobs, the millions that lost their
investments or the nearly 2 million that lost their homes. We are not
out of the crisis until every American is back on their feet...
_____________________________________________________________________________________________
THE HIDDEN POWER
The hidden power is almost indestructible because throughout the ages,
any attempt to unveil their hidden agenda and to expose the men behind
the screen has been labeled “a Conspiracy Theory” and those who risk
their wealth and reputation to expose this power are accused of being
“Conspiracy Theorists”
This is notwithstanding the fact that many insiders who were previously
seduced by the power and recanted, have written about such men and their
global agendas.
Please consider the following exposé by renowned insiders.
Napoleon Bonaparte
“When a government is dependent upon bankers for money, they and not the
leaders of the government control the situation, since the hand that
gives is above the hand that takes. Money has no motherland; financiers
are without patriotism and without decency; their sole object is gain.”
Niccolo Machiavelli
“For the great majority of mankind are satisfied with appearances as
though they were realities, and are often more influenced by the things
that seem than by those that are.”
President James Madison
“History records that the money changers have used every form of abuse,
intrigue, deceit, and violent means possible to maintain their control
of governments by controlling money and its issuance.”
President Abraham Lincoln
“The money power preys upon the nation in times of peace and conspires
against it in times of adversity. It is more despotic than monarchy,
more insolent than autocracy, more selfish than bureaucracy.”
President James A Garfield
“Whoever controls the volume of money in any country is absolute master
of all industry and commerce.”
The Rt. Hon. Reginald McKenna – Chancellor of the Exchequer
“I am afraid that the ordinary citizen will not like to be told that the
banks can, and do, create money. The amount of money in existence varies
only with the action of the banks in increasing and decreasing deposits
and bank purchases. Every loan, overdraft, or bank purchase creates a
deposit and every repayment of a loan, overdraft or bank sale destroys a
deposit. And they who control the credit of a nation direct the policy
of governments, and hold in the hollow of their hands the destiny of the
people.”
Sir Josiah Stamp – Bank of England
“Banking was conceived in inequity and was born in sin. The bankers own
the earth. Take it away from them, but leave them the power to create
deposits, and with the flick of the pen they will create enough deposits
to buy it back again. However, take it away from them, and all the great
fortunes like mine will disappear and they ought to disappear, for this
would be a happier and better world to live in. But, if you wish to
remain the slaves of bankers and pay the costs of your own salary, let
them continue to create deposits.”
President Woodrow Wilson
“A great Industrial nation is controlled by its system of credit. Our
system of credit is concentrated in the hands of a few men. We have come
to be one of the worst ruled, one of the most completely controlled and
dominated governments in the world – no longer a government of free
opinion, no longer a government by conviction and vote of majority, but
a government by the opinion and duress of small groups of dominant men.
“I am a most unhappy man. I have unwittingly ruined my country.”
(President regretted signing into law the Federal Reserve Act)
Supreme Court Justice Felix Frankfurter
“The real rulers in Washington are invisible and exercise power from
behind the scenes.”
Louis T. McFadden, Chairman of Banking & Currency Committee In 1932:
“The truth is the Federal Reserve Board has usurped the Government of
the United States. It controls everything here and it controls all our
foreign relations. It makes and breaks government at will …”
In 1933: “Roosevelt has brought with him from Wall Street James P.
Warburg, son of Paul M. Warburg, Organizer and first Chairman of the
Board of the Federal Reserve System…”
In 1950:
“This same Warburg had the audacity and arrogance to proclaim before the
U.S. Senate: ‘We shall have World Government whether or not we like it.
The only question is whether World Government will be achieved by
Conquest or Consent’.”
Senator Barry Goldwater
“Most Americans have no real understanding of the operation of the
international money-lenders. The accounts of the Federal Reserve System
have never been audited. It operates outside the control of Congress and
manipulates the credit of the United States.”
Henry Ford
“It is well enough that people of the nation do not understand our
banking and monetary system, for if they did, I believe there would be a
revolution before tomorrow morning.”
The above is the truth laid bare before your eyes and which the shadow
money-lenders have spent billions over the years for the control of the
global mass media, and paid handsomely specially cultivated economists,
historians and politicians to disseminate lies, divert attention and to
cover up their hidden agenda.
A HISTORICAL DETOUR
To secure their global agenda, the shadow money-lenders needed a
national base to first consolidate their power and to legislate laws
that would secure their monopoly to issue money and credit. The target
country was England and that is why the first central bank was the Bank
of England. Almost all the laws that secured the money-lenders their
unbridled economic and political power can be traced back to the legal
basis for the establishment of the Bank of England as a central bank and
their unfettered right to create “credits”.
The £ was the currency of choice for world conquest and the result was
the mighty British Empire, where the sun never sets! It was an empire
based on debt. When the £ Ponzi scheme unraveled, Britain outlived its
usefulness and the shadow money-lenders relocated to structure another
Ponzi scheme.
The next target country was the United States and the vehicle was the
Federal Reserve System. It was a long struggle, but the shadow
money-lenders finally prevailed. Thereafter, they established the
greatest financial empire in history, but they are still short of their
ultimate hidden agenda, as arrogantly proclaimed by James P. Warburg –
the establishment of a World Government by conquest or by consent!
Today, the shadow money-lenders have achieved unrivalled military power,
but in the process they have put at risk the fiat money system. This is
because so much money was required to maintain and sustain the military
might of the US and its military bases in client states all over the
world and the occupation of Germany and Japan since their defeat in
1945.
What is important to understand is that the shadow money-lenders are
parasitic in nature and they have to feed on a continuous diet of debts.
The financing of military adventures ensures a continuous stream of
debts and compound interests. Debts beget more debts! When the debts
reach saturation point, the Ponzi scheme will collapse and hence, the
need to revive and or re-establish another Ponzi scheme, failing which
the shadow money-lenders’ financial empire cannot be sustained.
BRETTON WOODS (I) – POST WORLD WAR II PONZI SCHEME
At the end of the Second World War, the United States was the
indisputable super-power and largest creditor.
The shadow money-lenders created various covers for massive lending such
as the Marshall Plan, supposedly to revive the devastated economies of
Europe and Asia. Under the cover of the aforesaid altruistic economic
plan of post war recovery, was the hidden agenda for the establishment
of the US dollar as the one and only supreme currency to replace the
£.Pound.
The shadow money-lenders had under their control the following sovereign
debtors post World War II:
Canada
The countries of the South American Continent
The countries of Europe, west of the then “Iron Curtain”
The countries of the African continent
The countries of the Middle East
The countries of Asia, west of the then “Bamboo Curtain”
Australia and New Zealand
To secure the sovereign debtors’ consent to the use of the dollar as
reserve currency, it was agreed that the dollar was redeemable in gold
at US$35 per oz of gold.
The World's money-lenders never had it so good. Then they got greedy.
Like the goldsmiths of yester-years, the shadow money-lenders created
more credits than there was gold to sustain the dollar reserve currency.
There were also the numerous wars that needed to be financed,
principally the Vietnam War and the proxy wars in Africa and Latin
America. There was a huge drain in the gold holdings at Fort Knox.
This gave rise to a crisis of confidence in the Bretton Woods (I) dollar
system.
To resolve the crisis and to maintain the unrivalled position of the US
dollar, the shadow money-lenders devise a brilliant scheme – a variation
of Bretton Woods (I)
BRETTON WOODS (II) – PURE FIAT MONEY SYSTEM
The dollar would no longer be redeemable in gold as decreed by President
Nixon.
There were two parts to the overall scheme to secure full compliance.
Part 1 was the use of the simple bully tactic. The Cold War was
engineered and intensified to create the myth that the Soviet Union
would unleash a nuclear war against the “free countries” and therefore
there was a need for collective security in which only the United States
could provide the necessary defense, as it was the most powerful nation
in the world.
The quid pro quo for the protection under the umbrella of the US led
collective security was that countries must continue to use the US
dollar in all international trades.
Notwithstanding the fact that the client states agreed to the new
arrangement, there was still the fear by the shadow money-lenders that
sooner or later the debtors will wise up to the fact that they were
holding mere toilet papers. Should this happen, the dollar would be
dumped as toxic waste and that would spell the end of the shadow
money-lending system.
Part 2 was therefore initiated and the man chosen to implement the
con-game was none other than Henry Kissinger. He secured an agreement
with the corrupt Saudi monarch and lesser tyrants in the region that the
oil price would be manipulated to hit the roof and in return for their
untold wealth and financial power, all future crude oil trades must be
denominated in dollars, and the petro-dollars must be repatriated to the
United States, to be invested in dollar assets.
In a warped sense, dollar was now backed by crude oil instead of gold,
as without dollars, no nation could purchase crude oil.
The dollar toilet paper over-night regained its stature and value as the
global reserve currency.
Yet, and once again the shadow money-lenders got greedy. They came to
the insane conclusion that they could create limitless credits (debts)
out of thin air and none would be wiser!
By the late eighties, it was apparent to the shadow money-lenders that
the demand and use of crude oil would not be able to sustain the level
of dollar credits needed to support the debt pyramid.
Plan B, the Yen Carry Trade was put into action – borrowing yen at zero
interest rate to invest in dollar assets, bearing higher interest rates.
The Japanese could not complain, being a conquered race and still under
military occupation, and so for over a decade, they suffered in silence.
The dollar as the global reserve currency was saved, but, not for long.
The instability in the Middle East became a major concern. Saddam
Hussein had grandeur ideas. He aspired to be the regional power but
Desert Storm scuttled his grand designs. Iran having recovered from the
devastation of the eight-year war with Iraq, began to assert itself and
their growing strength was perceived as a threat to the security
interests of the shadow money-lenders and their partners-in-crime, the
big oil companies.
A Plan C was needed. The China card had to be played!
THE CHINA FACTOR
Deng Xiaoping in the 1980s announced to the world that China would
practice socialism with Chinese characteristics. Being Red was not
critical, for the colour of the cat was not important so long as the cat
catches mice!
China wanted to modernize and catch up with the West. It had abundant
cheap labour and a disciplined workforce. But development was slow and
foreign investments were confined to certain regions.
Back home in the US, manufacturing concerns were being clobbered by the
Japanese and the Koreans. Industry after industry became less
competitive and costs were rising. A solution had to be found.
The shadow money-lenders have their share of worries – How to accelerate
the momentum of credit creation in an economy that is slowing down? Less
debts mean less compound interests and therefore less profits. Q.E.D.
The shadow money-lenders realized soon enough that if debt-driven
consumption is the solution, then there must be a manufacturing base
that can produce the massive quantities of goods that would meet the
demands for debt.
China loomed large in the overall scheme of things.
The shadow money-lenders entered into an agreement with the Chinese
along the lines of the petro-dollar agreement. There will be massive
relocation of industries to China, massive investments in plants and
equipment to produce goods for the US and European markets in exchange
for dollar denominated trade. And more importantly, it was agreed that
the dollar trade surplus would be re-invested in dollar assets.
It was an offer that China found hard to refuse. It was the fast track
to economic development and the rapid modernization of China. China
agreed and the rest is history!
Debt exploded in the US and in Europe. Consumers were borrowing as never
before to purchase the goodies from China. The recycled dollars from
China funded the consumer bubble from home ownership to motorcars,
electronic goods, toys, clothing etc. China became the world’s factory
and her economy surged. Within a decade, China accumulated dollar
reserves amounting to $2 Trillion. Other Asian countries jumped on the
bandwagon, and accumulated huge dollar reserves. These huge reserves
must be invested and the US lured them to the exotic investments created
by Nobel Laureates and rocket scientists.
Beware of The
Lenders!
BORROWERS BEWARE; Posted Sept. 20, 2009
In America and across Europe repossessions have gone up 70% since
late 2008, as many of the people buying into the home owning dream have
ended up borrowing more than they can afford.
For instance; Jeannette Sharratt lived under the threat of repossession
for 16 years.
After borrowing £2,500, (British Pounds) the extortionate interest
charges meant the amount she owed grew to over £100,000 and the company
wanted her house.
A financial adviser explains how Britain seems to have the most lax
regulatory regime anywhere in the developed western world.
Posted Sept. 20, 2009
EASY PREY
Millions
of Britain's elderly are up to their necks in debt and women over 60 are
the fastest growing group of people seeking debt advice.
Typical is pensioner Margaret Roberts, who owes £10,000 on a credit card
which is more than her annual income.
Rita Hopkins spent almost £20,000, she did not have, trying to win a
fortune.
Pensioner Margaret Roberts owes
£10,000 on a credit card
Gwen Colbourne, at 72, had 3 store cards, 6 credit cards and 2 loans,
yet had no assets and lived on a small pension.
This is the story of easy money and easy prey as banks and high street
lenders offer an open invitation to get ever more credit to those who
can least afford it.
Posted; Sept. 20, 2009
LOSING IT ONLINE
Last year we gambled £53 billion and one million people bet regularly
online.
Elaine Churchill is one of them, and she lost £45,000 gambling online
during her maternity leave. It nearly cost her marriage, her daughter
and her home.
Ex-postman Neil owes the same amount as his annual salary, money he lost
internet gambling and he is attending Britain's only residential
gambling addiction clinic.
Online betting is now so aggressively marketed that even the government
has stepped in to curb advertisers.
But this has not stopped companies throwing millions in sponsorship to
premier league football clubs in order to lure another generation into
losing it all online.
GOING FOR BROKE
Shiralee Doveston owes £9,000 and is desperate to go bankrupt but does
not have the £310 administration fee.
News agents, Mike and Sue Finch owe £30,000, are losing their business
and could lose their home.
They do not want to be made insolvent.
This is the story of those ensnared in a vicious spiral of debt, a world
of door-step lending, pawn shops and loan sharks.
Britain's poor and vulnerable are paying through the nose for the
privilege of borrowing.
THE DERIVATIVE CASINO
Financial engineering by the money-lenders accelerated further credit
creation. The United States led the way. During the past ten years,
while income stagnated, consumer spending rose to a record $8.34
trillion fueled by cheap consumer loans – home mortgage, credit-card
loans, car loans, holiday loans etc.
The securitization of the growing stream of compound interests from the
wide range of consumers’ debts was the natural and logical step in the
next round of credit creation for the derivative casino. These debts
were sliced and diced into tranches to form CDOs, synthetic CDOs, CLOs,
MBS and CDS etc. and marketed worldwide. The demand for securitization
was so great that banks and mortgage brokers were even willing to lend
to borrowers on the barest of credit information. They were aptly called
“Liars’ Loans”!
In 2004, $157 billion CDOs were issued but rocketed to an amazing $557
billion in 2006. And when there were insufficient mortgages to be
securitized into CDOs, Wall Street created the “synthetic CDOs” – bonds
which have no underlying loans and or security but allegedly have an
income stream based on a parallel contract and on contingencies which
may or may not result in any interest payments. Investment is risk,
stupid! Higher risks, higher payouts!
In the first quarter of 2007, the creation of CDOs surged further, led
by Merrill Lynch which sold nearly $29 billion in February and March,
sixty per cent more than the preceding two-month period; Goldman Sachs
pushed $10 billion in March which more than double the value in February
and Citigroup sold $9 billion in March, one third more than the previous
month. CDOs were the rave and the ticket to glorious wealth.
The US, specifically Wall Street became the “Mecca of debts”
The rest of the world jumped on the bandwagon. So much CDOs were
packaged and sold so quickly that no one even had the time to determine
which and what securities were being securitized in the CDOs. “Just do
the trade, just do the trade” was the chorus line for the traders.
The following table says it all – the Sub-Prime Fiasco.
The Shadow Money-lenders also came up with a scheme to protect investors
and which brought another massive stream of revenue. The scheme was
called “Credit Default Swaps” (CDS).
Total Face Amount of CDS was estimated as follows:
2001 $918.9 Billion
2002 $ 2.2 Trillion
2003 $ 3.8 Trillion
2004 $ 8.4 Trillion
2005 $ 17.1 Trillion
2006 $ 34.4 Trillion
2007 $ 54.6 Trillion
2008 $ 62.2 Trillion, as of June 2008
2009 $ ????
The world is addicted to debt!
Then the housing bubble busted, and with it the gigantic Ponzi scheme.
Creditors are now faced with a dilemma, what to do with the loads and
loads of dollar toilet paper, now derisively referred to as “toxic
wastes” – stand pat, sell down, continue to be paid in dollar toilet
papers or shut down the printing press?
We are now at this juncture.
THE MONEY-LENDERS’ LAST GAMBIT
The Fed’s decision to cut the Fed Fund Rates to 0.25 percent means that
the Fed has embarked on a Zero-Interest-Rate Policy (ZIRP) and to
proceed with the policy of Quantitative Easing (QE) – to turn on the
spigot for “limitless supply of credit”.
In layman’s jargon, to encourage more debts – mortgage debts,
credit-card debts, car loans, and more importantly to revive the
derivative casino, presently on life support. This was the drug
addiction that sustained the global financial system in the last twenty
years and more intensely in the last seven years!
The announced policy (ZIRP / QE) is the last bullet in the Fed’s arsenal
or as I have stated earlier, using another analogy, the final gamble,
the last chip on the betting table. There will be no more ammunition
left after this.
This huge gamble will take six months to play out but it will end in
failure as surely as the sun will rise in the East tomorrow.
But a more sinister aspect of the zero-interest-rate policy which has
not been highlighted by any economist or financial commentator is that
the United States under the present Bush regime has declared to the
entire world that the United States cannot and will not service anymore
interest payments on the nation’s outstanding debts amounting to
trillions.
Bush has declared that the United States for all intent and purposes is
bankrupt and have no means to service the interest due, what more the
principal sum.
Bush, Bernanke and Paulson have therefore collectively agreed to give
the “two-finger sign” to the world’s creditors and in no uncertain terms
are saying that:
The whole bloody world knows that the US of A has no income to even
service the interest which amounts to a few hundred billion a year.
So let us stop the pretense. We owe trillions and interest on top of
that runs to hundreds of billions, which when unpaid is capitalized. And
every year we have to borrow from the Fed, China and others just to pay
the interest so as to avoid a call on default. There were so many
occasions when the US defaulted, but they allowed us to roll over to
maintain the facade that the US of A is still floating.
We aren't floating...we are already underwater.
You guys should be more than happy with so much interests already
accruing on the outstanding. All these years, you guys have been only
too happy to see us print the toilet papers in payment of your goods and
to service the interests. It was an incredible con and what a free ride
we had all these years. You guys were part of the con as well.
If you insist that I continue to pay you in toilet papers, why do you
insist that we issue more toilet papers as interest payments? It is just
more toilet papers. You guys are swarmed with toilet papers!
The toilet paper is worthless. So what is the point of paying “toilet
paper interest” on outstanding toilet papers?
This is it! We are not paying anymore toilet paper interest. We are
going to print more toilet papers to pay for whatever we want to
purchase. If you want to sell to us, you will get toilet papers but with
no interest. Period!
This is the greatest irony. The Fed, the world’s biggest money-lender
and its partners-in-crime are telling their creditors to stuff it! When
debtors cannot pay the exorbitant interests and the principal, these
financial predators demand that the debtors give their pound of flesh in
lieu of cash. But when they borrow, they repay in toilet paper money and
get away with it!
And now they even have the audacity to give an ultimatum:
We are the biggest buyers in town. If you don’t want toilet papers from
us, that is fine by us. You can get tissue papers from the Europeans,
bamboo papers from the Japanese and whatever paper is available. Who is
going to argue whether tissue paper would do a better job than plain
toilet paper? Hey, this is a free market. Pick your choice!
This is the ultimate poker game. Bush, Bernanke and Paulson, and now
Obama and his cohorts, are betting that no one will call their bluff,
turn away and stop selling anymore goods to the US of A. The feds are
counting that the fear of recession and or social unrest in the
creditors’ countries will force the creditors to capitulate.
Unfortunately, this gambit will fail. The reason is simple. The US
cannot supply the goods that the American consumers want, even the most
basic stuff. The manufacturing industries are all anemic, while others
are on life support. Without imports, the United States will have to
shut down.
When it happens there will be massive riots all over the US, with people
killing for food and other basic necessities. Basic raw materials,
commodities for manufacturing etc. will be unavailable. There will be no
more cars on the freeways! Millions of Americans licensed to carry arms
will stalk the streets for whatever scrap they can get their hands on.
If the Money-Lenders system is threaten they will order the puppet US
Gov. to impose martial law.
Preparation is already on the way.
Past President Bush's STARK WARNING
On Tuesday, December 9th 2008, President Bush in fascist speak stated
that, “I have abandoned free market principles to save the free market
system.” If you guys out there still don’t get it, this is what Bush was
declaring:
That the country we knew was changing and quickly.
This is because the opposite of “free market” according to conventional
wisdom is “state-control economy”. In a word, Socialism – Big
Government.
The Fed and the Treasury, in connivance with Congress, have already
approved and financed big time, the acquisition of the major banks in
Wall Street through the Troubled Asset Relief Program (TARP), the Term
Asset-Backed Securities Loan Facility (TALF), and the $700 Billion
bailout plan. Several US financial commentators have already conceded
that this is outright nationalization of the financial institutions.
Soon it will be the nationalization of the big corporations like GE, GM,
Ford and Chrysler, all too big to be allowed to fail.
Too far fetched? Just look back to the events leading to World War I and
World War II and to the dictatorships in Latin America in the 1970s.
How did Franklin Roosevelt get out of the 1930s mess if not for big
government policies and engaging in the wars in Europe, against Germany
and Japan in Asia? He even decreed Americans could no longer own gold in
any form. It was all confiscated. President Roosevelt ruled with an iron
fist, and don’t you believe otherwise.
Now that the entire world knows that the Federal Reserve Note (the
dollar bill) is toilet paper and even though in law is “legal tender”
(i.e. by law the toilet paper must be accepted as full payment of any
debt, failing which the debt is deemed paid), the Shadow Money-Lenders
cannot afford the risk of an armed open rebellion and the fiat money
system to be overthrown. It is therefore necessary in these
circumstances to enforce the use of the US dollar toilet paper by
military rule and brutality.
To those who are not attuned to “dictatorship speak”, there is no
clearer message to prepare the elites for the coming catastrophe that
the announcement that free market principles will no longer apply. The
emphasis is on the word “free” and not the word “market”.
We can argue till the cows come home whether my reading of events is
correct. Time will be the final judge.
WORLD GOVERNMENT BY CONQUEST OR CONSENT
James P. Warburg, the son of Paul M. Warburg (first Chairman of the
Board of the Federal Reserve System), had proclaimed that world
government is their ultimate objective. But that objective cannot be
achieved unless and until the United States is completely subdued. A
world government can only come about if there is created a crisis that
will engulf the entire world, starting from America. Such a crisis will
not and cannot be resolved by any one country. It will have to be a
global solution. And since countries can only work through a common
mechanism, there is therefore a need for an international institution or
mechanism.
The United Nations is the precedent from which a new world government
will emerge.
Henry Kissinger, since the onset of the crisis, has been calling and
cajoling world leaders to submit to such an endeavour if the world is to
avoid a global calamity.
And it will be a socialist world government. Before anyone protest and
declare that I have gone insane, let me state here once and for all, I
am in full command of my faculties. I have done my research.
Capitalism and Socialism are two sides of the same money-lender’s coin.
Both ideologies serve a common master - the global money-lenders.
For doubting Thomases, please consider the following facts:
1) The Russian October Revolution, led by Lenin was financed by bankers,
to be precise, the bankers in New York and Berlin. In New York, the
money was organized by the banking firm of Kuhn, Loeb & Co whose
directors included Mr. J. Schiff and Mr. Warburg, founder of the Federal
Reserve System. In Berlin, the German banker was the brother of the New
York Warburg.
2) On January 16, 1962, the Look and Life magazine published the
following statement by David Ben Gurion, the first Prime Minister of
Israel who was then still in office:
“The image of the world in 1987 as traced in my imagination: The Cold
War will be a thing of the past. Internal pressure of the constantly
growing intelligentsia in Russia for more freedom and the pressure of
the masses for raising their living standards may lead to a gradual
democratization of the Soviet Union. On the other hand, the increasing
influence of the workers and farmers and the rising political importance
of men of science, may transform the United States into a welfare state
with a planned economy. Western and Eastern Europe will become as
federation of autonomous states having a socialist and democratic regime
… countries will become united in a world alliance, at whose disposal
will be an international police force. All armies will be abolished and
there will be no more wars.
3) On the success of the Russian October Revolution and the abdication
of the Czar Nicholas II, the British Premier David Lloyd George said in
Parliament, that Britain had achieved one of its major war aims.
4) The principal aim of Capitalism and Socialism is the centralized rule
of an elite political group which owns and or controls all the means of
production and the issuance of money and credits – in the case of the
former, through various forms of monopoly and in the case of the latter,
public monopoly.
Why War is inevitable!
To prove the point, let me use a simple analogy.
It is often reported in the headlines of newspapers that a certain
gentleman or woman had been brutally beaten up for failing to pay the
debts due to a money-lender. In Malaysia, money-lenders are often
referred to as “Ah-Longs”. This is even the case when the debt is
paltry. If the money-lender adopts the “soft method” in recovering a
loan, it may encourage defaults and non-payments. Brutality ensures full
compliance!
So is the case with nations. When the very survival of a nation is at
stake because of economic and or currency warfare, do you really think
that the nation at risk would not go to war?
The US invaded Iraq not because of the threat of Saddam’s WMD but for
the crude oil and because Saddam was selling crude oil in Euros instead
of the dollar toilet paper.
The money-lenders are in a desperate situation and they will start a
world war to avoid the collapse of the fiat money system. The war will
be financed by the major central banks and their proxies – the 8 to 10
global commercial and investment banks. As in World War I and II, the
elites of the City of London and Wall Street will be the primary movers
of this insidious plot.
Anyone who doubts this scenario need only to ask one simple question –
Do you think the financial powers centered in the West would accept and
tolerate their loss of financial power?
I am using such graphic terms because the average American have yet to
appreciate the full import of the recent announcements by President Bush
that the US will abandon “Free market principles”, and by Bernanke of
the Fed’s Zero-Interest-Rate Policy. Worst still, the majority of the
political leaders of the third world are equally ignorant. This was
evident in the APEC Summit in Peru. Like the average Joe Six-Packs,
these leaders have no idea how the fiat money system works. When
Washington and London say “print”, “open the spigots”, “lower interest
rates”, and vice-versa they just follow blindly. There was just one rare
exception, when Malaysia opted out during the 1997 financial crisis.
Even then, this was temporary as the new Badawi regime has succumbed to
the old ways.
Can this total collapse be stopped?
There is a slim chance. If American people find a way to close the
federal Reserve and strip power from the central banks.
The IMF has already warned that if the US fails to resolve the crisis,
there will be massive social unrest. There will be blood flowing on the
streets! Military power would be pitted against the people with a proud
tradition of having built a great country and having once defeated the
mighty British colonial power. Dare we hope for a second American
Revolution?
Matthias Chang is a frequent contributor to Global Research.Global
Research Articles by Matthias Chang
During a 2002 speech given for the 90th birthday
party of the famous economist Milton Friedman, Ben Bernanke admitted
that the Federal Reserve caused the Great Depression. He said, and I
quote:
“Let me end my talk by abusing slightly my status as an official
representative of the Federal Reserve System. I would like to say to
Milton and Anna: Regarding the Great Depression. You're right, we did
it. We're very sorry. But thanks to you, we won't do it again.”
So, now we all know the dirty truth… the Fed caused the Great
Depression. But, apparently, that’s not the end of it. Having created
artificial 1% interest rates, early in the 21st century, it proceeded,
under the Chairmanship of Alan Greenspan, to create the biggest asset
bubble in history. That has set the stage for Great Depression II, Great
Hyperinflation I, or a repeat of the type of severe stagflation we saw
1970s, depending on what decisions are made now. The events in progress,
whatever their ultimate outcome, are clearly a direct result of repeated
attempts by the Federal Reserve to micro-manage the economy. We must
stop them from continuing to do that. Because of the existence of the
Federal Reserve, we have widespread systemic problems that cannot be
cured simply by throwing $700 billion dollars around. The problem is not
one purely of money, and errors by big banks, but, rather, arises out of
the fundamental manner in which our financial system is constructed. One
thing is sure. In this mess, all roads lead back to the Federal Reserve.
Many politicians, most notably the previous Treasury Secretary Henry
Paulson, and the now Timothy Geithner, have stated that they want to
confer more regulatory power on the Federal Reserve. This a serious
mistake. The over-concentration of economic power, in the hands of a few
unelected men and women, is the root of our troubles. The Federal
Reserve does not need more power. It needs less. It has had more than
ample regulatory power for many years to have done everything needed to
prevent the crisis that we are now experiencing. Instead it was
instrumental in collapsing our economy. It could have issued banking
rules that would have stopped the creation of toxic mortgage
instruments, including, but not limited to, CDOs, CDSs, subprime
mortgages, Option-ARM mortgages, Alt-A, etc. Instead, it encouraged
banks to create them. The Fed allowed and inspired banks to do as they
pleased.
As a result, bank executives peddled irresponsible behavior, and
irrational debt levels. All of this was done in pursuit of short term
profits, especially those that came in the form of bonuses and benefits.
This is all the result of influence peddling in Washington DC. Because
the Fed Board is indirectly controlled by the Federal government, Wall
Street based bankers have been able to gain effective control over Fed
policy choices by virtue of getting their choices for the Board
appointed.
The Federal Reserve is a quasi-private institution, capitalized and
supported with taxpayer dollars. However, for years it has been used as
a slush fund for private banks on Wall Street. Over the past year, the
banks managed to unload about $777 billion worth (in terms of par value
at maturity) of their most toxic debt paper onto the Fed balance sheet.
No rational private industry player would have agreed to have its
balance sheet polluted by the combined mistakes of its clients. However,
according to the Wall Street Journal, the Fed was willing to take in
this toxic waste “collateral” on a non-recourse basis, giving the banks
cold hard cash, or valuable T-bills in return. Non-recourse is a legal
term which means that if the borrower fails to pay back the loan, the
only thing the Fed can do is sell the collateral. The other assets of
the bank, are immune from attachment. The bad collateral consists of
mortgage backed paper and other currently depressed paper instruments,
worth about $0.22 on the dollar, or much less, on the free market. I use
the $0.22 figure, because that is the price obtained at a recent sale of
such assets by Citigroup. Yet, in spite of the free market value of this
collateral (and $0.22 on the dollar is being very liberal about
valuation), the Federal Reserve has paid 90% of par value for this
trash.
Lehman Brothers is an example of a bank which was allowed to use its
close connections at the New York branch of the Federal Reserve, to
borrow tens of billions of dollars, based on bad collateral. During the
time it borrowed money, everyone had to know, including Timothy Geithner,
President of the New York Federal Reserve Bank, that the company was
insolvent. Now, Lehman is officially bankrupt. It will never pay back
the debt. In short, under the leadership a Board of Governors heavily
influenced by Wall Street, the Fed has already managed to lose a fortune
of taxpayer money.
Ben Bernanke claims that the Fed took a “haircut” to protect itself. A
haircut is the percentage difference between the alleged “market value”
of the collateral and the amount that can be borrowed. The “margin” is
the difference between the price that the Fed can get for the collateral
if it needs to sell it, and the cash given out. Margin is supposed to
protect from loss. But, with respect to the cash given in return for
this worthless collateral, there is no margin. Instead, there is
immediate loss. As I said, they’ve been paying 90% of par value, when
these assets are really worth less than about 22%.
The Fed has repeatedly renewed the loans so that the banks never need to
pay them back. What has been characterized as “loans”, therefore, are
really gifts. The Fed lost money the very instant it gave the banks cash
in return for this trash. There is no active market for this worthless
paper. No sane business wants it. Only the Fed will accept it. That
because the Fed Board of Governors is an unelected group that puts
taxpayers at risk, not their own pockets. Do you think they would buy
such bad paper at a 90% valuation, for their own personal accounts? Not
a chance! But, the Fed serves as a “slush fund” for the big banks. It is
a model for structural corruption.
As you can plainly see, the “haircut” for mortgage
backed securities for which “market price is not available” is 90% of
par value. That is what they’ve been paying for nearly worthless
assets. In other words, under the incompetent leadership of
Chairman Ben Bernanke, the Federal Reserve has paid banks $700 billion
for securities that have a par value at maturity of about $777 billion.
Let’s give them the benefit of the doubt, and access the value at $0.22
per dollar. That means the collateral is worth about $171 billion.
It also means an immediate net loss to the taxpayers, and a subsidy
payment, going into the pockets of Wall Street bankers, of $606 billion.
How can this be described as anything other than outrageous?
The only good thing to come of this is that the
Federal Reserve slush fund is now so tied up with toxic assets that it
is close to insolvent. Very soon, absent the Congressional
bailout, it will be insolvent. By virtue of that insolvency, it
will have no money left to help its friends, and harm American
taxpayers. If, however, we shift this toxic debt burden to the U.S.
Treasury, the Fed balance sheet will be free again. It will be
free to start giving away even more taxpayer money.
Right now, the toxic paper simply sits on the Federal Reserve balance
sheet. It is not a direct obligation of the U.S. government.
It should either stay there, or, more appropriately, be handed back from
whence it came, with a demand to return the cash. If we allow the
$700 billion bailout for billionaires, we will have privatized gains,
and socialized huge losses. We will free the Federal Reserve to do more
damage to our economy.
The Fed has become so low on cash that the U.S.
Treasury had to use its existing authority to sell another $158 billion
worth of T-bills to recapitalize it, just last week. This money may have
already been used by the Fed to micromanage the stock market, catalyzing
a rise in the latter half of last week. The Fed balance sheet
shows that it injected a total of about $262 billion, probably into the
stock market, over the last two weeks, pumping up prices on Wall Street.
The practical effect will be to allow people in-the-know to sell their
equities at inflated prices to people-who-believe-and-trust, but don’t
know. Sending so much liquidity into the U.S. economy will stoke
the fires of hyperinflation, regardless of what they do with interest
rates. In a capitalist society, the stock market should not be
subject to such manipulation, by the government or anyone else. It
should rise and fall on its own merits. If it is meant to fall,
let it do so, and fast. It is better to get the economic downturn
over with, using shock therapy, than to continue to bleed the American
people slowly to death through a billion tiny pinpricks.
With respect to the Federal Reserve, we must remember
the warnings of one of our greatest American Presidents, Thomas
Jefferson, who stated:
"I believe that banking institutions are more
dangerous to our liberties than standing armies. If the American
people ever allow private banks to control the issue of their
currency, first by inflation, then by deflation, the banks and
corporations that will grow up around will deprive the people of all
property until their children wake-up homeless on the continent their
fathers conquered. The issuing power should be taken from the banks
and restored to the people, to whom it properly belongs."
Thomas Jefferson, Letter to the Secretary of the Treasury Albert
Gallatin (1802) 3rd president of US (1743 - 1826)
Later, another patriotic President, Andrew Jackson,
vetoed legislation in 1831, that would have extended the charter of the
Second Bank of the United States. In 1833, he announced that the
U.S. Treasury would no longer deposit federal funds at the bank.
Like Jefferson, Jackson warned that allowing a central bank to hold
sway, by manipulation of the nation’s currency, would push the people
into a world of perpetual debt, while enriching the fortunes of a small
minority of people. Since the creation of the Federal Reserve
Bank, in 1913, that is exactly what has happened.
Banks serve essential functions in our economy.
We cannot do without them. However, we must insure that all banks
are treated equally, and that those on Wall Street are not favored over
others. This is impossible so long as the Federal Reserve
continues to exist. The continued existence of the Federal Reserve
Bank insures that a small minority of bankers will continue to twist the
President, Congress and the entire American economy into knots, by using
government funds, to assist in creating private profits, and/or to save
them from their foolish mistakes
The Federal Reserve was formed in 1913 in the hope
that it would reduce instability. Just twenty years later, it caused the
Great Depression. Now, its continued attempt to substitute the
opinions of a few men for the conclusions of the markets as a whole,
have caused another potential catastrophe. Too much power has been
placed in the hands of a small group of unelected men and women.
We have foolishly endowed them with the ability to use our money to
manipulate our money, however they see fit, including altering interest
rates, and intervening in the stock, bond and commodity markets to
assist their primary dealers. The results of this liberalism are
in. Instead of a stabilizing force, the Federal Reserve is a
destabilizing one.
We do not have a credit crisis. We have a lack
of transparency. The money market is flooded with cash. The
Federal Reserve, ECB and other central banks have seen to that.
Banks are simply afraid to lend it out, because they fear that other
banks are lying to them. That is one of the fundamental problems
with central bank activity. They create money when and where it is
not needed. We must address this problem by increasing
transparency, not by increasing the money supply. We don’t need a
central bank to accomplish that goal. Once transparency is restored, and
everything is out in the open, banks will feel confident like never
before. All shaky banks must be closed. Remaining banks will
be eminently credit worthy. Credit markets will be freed up, in a
free market, without creating additional moral hazards.
Congress should pass groundbreaking reform
legislation. However, it should reject the $700 billion dollar bailout
for billionaires. On the contrary, we need legislation that will allow
the Federal government to send out an army of auditors. The
auditors must use their government authority to carefully examine the
books of, and shut down all insolvent and shaky savings, commercial and
investment banks, as soon as possible. The process of shutting
them down should be handled much like the shutdown of Washington Mutual.
The assets of the banks that are closed must be immediately sold to the
highest bidder, with the government absorbing some of the shortfall.
This will cost money, but not $700 billion. In the course of
selling WaMu, for example, the government incurred no loss at all.
Meanwhile, Congress needs to revoke the charter of the Federal Reserve.
The Fed must be closed down before it can do more damage.
President Kennedy
Tried Closing Down The Federal Reserve
And we all know what happen to him!
On June 4, 1963, a little known attempt was made to strip the Federal
Reserve Bank of its power to loan money to the government at interest.
On that day President John F. Kennedy signed Executive Order No. 11110
that returned to the U.S. government the power to issue currency,
without going through the Federal Reserve. Mr. Kennedy's order gave the
Treasury the power "to issue silver certificates against any silver
bullion, silver, or standard silver dollars in the Treasury." This meant
that for every ounce of silver in the U.S. Treasury's vault, the
government could introduce new money into circulation. In all, Kennedy
brought nearly $4.3 billion in U.S. notes into circulation. The
ramifications of this bill are enormous.
Do most people even know about this executive order issued by John F
Kennedy? Executive Order 11110 gave the U.S. the ability to
create its own money backed by silver.
This order was never repealed so why didn't any of the preceding
presidents carry his order through?
Perhaps the assassination of JFK was a warning to future presidents who
would think to eliminate the U.S. debt by eliminating the Federal
Reserve's control over the creation of money. Mr. Kennedy challenged the
government of money by challenging the two most successful vehicles that
have ever been used to drive up debt - war and the creation of money by
a privately-owned central bank.
Watch the below
video and learn who actually controls our world...
Monopoly Men (Federal
Reserve Fraud) Liberty International
Entertainment
The Debt Bailout
1.
NO REFORM: The plan attempts to mask, rather than reform,
imbalances in credit markets and in U.S. economic public policy.
The plan props up reckless and failed banks by buying “troubled
assets” instead of focusing on real reforms that go after
government sponsored culprits, Citi Group, AIG, Fannie Mae and
Freddie Mac, and sustainable policies that will increase the
availability of private capital and expanded economic growth.
2. TREASURY POWER GRAB: The plan raises
Constitutional concerns by dramatically expanding the power of the
current and future Treasury Secretaries, giving the government
agency power to directly purchase assets from for-profit financial
and non-financial firms.
3. STUNNING PRICE TAG: The declared $700+
billion recent bailout is not the real amount, as it is over 2
Trillion USD. Even the low bailout figure is as much money as the
combined annual budgets of the Departments of Defense, Education
and Health and Human Services. It amounts to $2,300 for every man,
woman, and child in America. The real amount is well over $3,000
per person. If you added the total US debt, which now exceeds 60
Trillion...every American is in debt over $90,000 USD.
4. INCREASES NATIONAL DEBT: Instead of cutting
spending elsewhere, Congress will borrow all $700 billion on
global capital markets, and the bill raises the national debt
ceiling to a staggering $11.3 trillion, which does not include all
foreign debt, obligations and interest payments.
5. GLOBAL BAILOUT: The plan includes taxpayer
purchases of distressed assets from foreign banks.
FILE -- In this March 24, 2009 file photo, Treasury Secretary
Timothy Geithner, left, talks with Federal Reserve Chairman Ben
Bernanke on Capitol Hill in Washington before the start of a House
Financial Services Committee hearing.
Shouldn't we be concerned when Timothy Geithner
didn't pay his past due $34,000 in taxes, but was still appointed
US SEC. of Treasury by Obama?
6. HURTS RESPONSIBLE AMERICAN BANKS: The plan
punishes responsible U.S. banks by keeping reckless, insolvent
investment banks in business. As BB&T CEO John Allison wrote in a
letter to Congress on Sept. 23rd, “….this is primarily a bailout
of poorly run financial institutions…. Corrections are not all
bad. The market correction process eliminates irrational
competitors.”
7. FLAWED PROCESS: Members of Congress and the
public will have less than 24 hours and no hearings to discuss and
understand the impact of this sweeping plan. This rush to pass a
wildly unpopular plan without benefit of significant public debate
and input will also undermine its legitimacy and effectiveness.
8. BY WALL STREET, FOR WALL STREET: Treasury
Secretary Paulson, the architect of the plan, was formerly the
head of Goldman Sachs, one of the firms responsible for the mess
and a direct beneficiary of the bailout. Further, the advisers
managing the bailout auctions and assets will be Wall Street firms
and will likely receive billions of tax dollars in fees.
9. OTHER OPTIONS NOT EXHAUSTED: The idea that
taxpayers will make money on the bailout is not credible. There
are ready buyers for these “troubled assets” — Merrill Lynch sold
its entire portfolio of mortgage backed securities in July–
provided the price is low enough. If a profit was possible,
private speculators would readily buy these troubled assets.
10. MORALLY OFFENSIVE: The plan violates basic
principles of American capitalism and honest governance by
creating a system of “private profits, socialized losses” that
transfers money from taxpayers directly to Wall Street investment
banks. Free market capitalism only functions if individuals and
firms are held accountable and are allowed to both succeed and
profit, and also to sustain losses and even fail.
The Federal Reserve, or the Fed
as it is lovingly called, may be one of the most mysterious
entities in modern American government. Created during Wilson's
presidency to protect the economy in times of financial turmoil,
its real business seems more intent in controlling not only our
markets, but our revenue and debt, as well. During the Wilson
presidency, the U.S. government sanctions the creation of the
Federal Reserve. Thought by many to be a government organization
maintained to provide financial accountability in the event of a
domestic depression, the actual business of the Fed is shrouded in
corruption and greed.
Many Americans will be
shocked to discover that the principle business of the Fed is to
print money from nothing, lend it to the U.S. government and
charge interest on these loans. Who keeps the interest? The
Federal Reserve, which then lends the money out to central banks
over and over again. They, along with the SEC, The Treasury and
Wall Street have been lovers from the start.
Visas: Most visitors to
the US require a visa. However, Canadians need only proof of
citizenship and a reciprocal visa-waiver program allows citizens
of the UK, Australia, New Zealand, Japan, Austria, Belgium,
Denmark, Finland, France, Germany, Italy, the Netherlands,
Slovenia, Spain, Sweden and Switzerland to stay up to 90 days
without a visa if they have an onward ticket. Health risks:
None, apart from the high cost of medical care.
Disclaimer; Travelers Digest makes no claims to
or necessarily agrees with the above article. It is posted simply
as a Public Service.
We do not require or seek the readers
permission in the posting of any article or commentary and
defend our right to post thought provoking editorials that we
feel may provide a public service. We will not respond directly
to any abusive correspondence and any conceived to be a direct
or indirect threat against any person, place or thing will be
reported to the proper authorities.
Fair Use Notice:
This document may contain copyrighted material whose use has not
been specifically authorized by the copyright owners.
We believe that this not-for-profit,
educational use on the Web constitutes a fair use of the
copyrighted material (as provided for in section 107 of the US
Copyright Law). If you wish to use this copyrighted material for
purposes of your own that go beyond fair use, you must obtain
permission from the copyright owners.
Millions
of Britain's elderly are up to their necks in debt and women over 60 are
the fastest growing group of people seeking debt advice.
1.
NO REFORM: The plan attempts to mask, rather than reform,
imbalances in credit markets and in U.S. economic public policy.
The plan props up reckless and failed banks by buying “troubled
assets” instead of focusing on real reforms that go after
government sponsored culprits, Citi Group, AIG, Fannie Mae and
Freddie Mac, and sustainable policies that will increase the
availability of private capital and expanded economic growth. 
