"The preconditions for USEconomic growth in 2011 remain in place." ~ Ben Bernanke (blind man in clown suit occupying the USFed Chairman seat)
"We cannot solve problems by using the same kind of thinking we used when we created the problems." ~ Albert Einstein.
"We live in an amazing world. Everybody
has big budget deficits and big easy money,
but somehow the world as a whole cannot fully
employ itself& It is a serious question. We
are no longer talking about a single country
having a big depression, but the entire world."
"The war on terror is a mythical historical narrative." ~ Zbigniew Brzezinski (former US National Security Adviser, speaking to the US Senate)
◄$$$ THE 911 FIRESTORM OF DISPUTE HAS
NEVER GONE AWAY. IT IS A CONSTANT REVULSION
REJECTION UNDER THE SURFACE. CONSIDER JUST ONE
ELEMENT, THE AIRCRAFT THAT CRASHED INTO THE
They call them the Unidentified Murder Weapons. The aircraft that crashed on 11 September of 2001 have never been forensically matched to the four passenger planes which were allegedly hijacked that day. Requests under the Freedom of Information Act have met with denials and refusals. The documents which have been produced, allegedly using data from the only three Black Box flight recorders said to have been found, have no serial numbers of the devices listed on them. All flight recorders have serial numbers to identify the aircraft in association. The official investigation reads like a Keystone Cop exercise. See the YouTube video on the subject (CLICK HERE).
My sources indicate that the villainous
flying aircraft laden with explosives match
to Boeing tanker aircraft!! Their silhouette
matches the large underbelly profile of the
tankers used to carry jet fuel in airborne vessels,
the flying gasoline stations. For further comprehension,
check the advanced Raytheon remote guidance
systems for pilotinga, developed in the 1990
decade. Robotic flying is a standard weapon
used in the war theater nowadays. Some of the
other inconsistencies surrounding the 911 event
(Bloody Military Coup d'Etat) extend to arguments
of basic physics expressed by an American consortium
of physicists. They point to problems in the
official report as to gravity, melting point
of structural steel versus burning point of
jetfuel, and demolition propagation footprints.
An American consortium of chemists points to
the residue of thermite found in every single
My conclusion on the US public acceptance of the official 911 Commission Report is that many who accept the official story start with a conclusion and ignore a large heap of contradicting evidence. My conclusion is that those people who start with a clean sheet of paper and build a case based upon evidence and basic scientific facts (called the Experimental Method) find it impossible to accept much of anything about the official story or its report. Precedent for sham reports to cover up the crime and to seal the national wounds go back to the Warren Commission which attempted to close the case on the Kennedy Assassination. In all likelihood, Kennedy was killed by interests that control the US Federal Reserve. He had taken initial steps to re-instate the Silver Certificate Notes, and had fired a top CIA official. That official sat on the Warren Commission. In my opinion, the 911 event was the most carefully planned and best executed Coup d'Etat in world history. The American people (perhaps 95%) still do not know the identity of those who took charge of the USGovt and USMilitary. Think syndicate, as in banks, weapons, narcotics, the chief American swords.
◄$$$ ACCORDING TO THE USGOVT, ANOTHER
AL-QAEDA HEIGHTENED THREAT IN
This is such a dangerous, thorny, and ugly
topic. Fear and threats of terrorism are basic
Nazi propaganda tools. Do some research of Goebbels
from Nazi Germany and his propaganda apparatus.
The basic fact not recognized much by the
The Obama Admin is pressuring Internet Service Providers (ISP) to assist in the censorship of werbsites. The USDept Justice wishes to possess the power to shut down a website due to unlawful content. Intellectual Property Czar Victoria Espinel has been holding meetings with ISPs, registrars, payment processors, and others in a bid to block access to websites dedicated to infringing activities. The definition applied is wide open, vague, and spurious. The USGovt deems such infringement to include political opinions which are antagonistic toward the state, in what appears an obvious extension of 1984-style Big Brother abuse. In the role, Espinel pursues a special relationship between the government and Internet companies in order to "harmonize the efforts of law enforcement at the federal, state, and local levels and strengthen cooperation with the private sector."
Datamation magazine reports that one avenue already pursued, with stated motive, to stop websites that sell gray market pharmaceuticals. Some opposition remains in place. ICANN, which manages the internet domain name system, did not attend the meeting, stating it would be inappropriate. The meeting was convened to serve as a secondary plan for USGovt control of the Internet. The growing unpopularity of the current regime toward Cyber-Security within the COICA bills has led to their tenuous political position for continued survival. The Combating Online Infringement and Counterfeits Act (COICA) would "Establish a path for the Department of Justice to take action against websites dedicated to peddling unlawful content, including leaning on Internet providers, registrars, payment processors, and other Internet players to deny services to the offending sites." Past precedent has demonstrated that the USDept Justice (DOJ) considers unlawful and potential terrorist activity the Tea Party literature posted on public bulletin boards, as well as political lampoons such as the Obama Joker poster. According to a recent memo released by the Bureau of Justice Assistance, a component of what the DOJ considers extremist literature includes political or religious displays, or anything related to abortion, with direct warnings given to radical bookstores.
If the USDept Justice uses wide definitions
on offensive abusive and forbidden material,
the USGovt will possess the tools to effectively
silence political free speech based on their
own definitions of what constitutes extremist
content. Various levels are to function in the
monitor. Federal and state authorities are considering
the implementation of technology that scans
Internet posts and emails for content deemed
to display resentment toward government,
and then passes the information to the relevant
authorities for terrorist surveillance measures.
A past precedent was outlined in March 2010,
when the independent news website The Drudge
Report was accused of serving malware. Digital
rights groups like the Electronic Frontier Foundation
and Public Knowledge have expressed concern
over how the COICA bill offers an inadequate
nebulous definition of what constitutes
a website infringement, opening the door for
the USGovt to shut down political adversaries
arbitrarily. The Obama Admin, like its predecessor,
lusts for control of the Internet. The challenges
are daunting, not only politically but technologically.
Senator Joseph Lieberman is a key supporter
of cyber-security legislation. He has pressed
for a Congressional Bill that would hand the
President power to shut down portions of the
Internet for months with no oversight. In an
interview, he told Candy Crowley at CNN that
the ultimate intention was to imitate the Communist
Chinese system of Internet policing. He said,
The Jackass opinion has long maintained that enemy of the state constitutes enemies and competitors to the ruling crime syndicate, their bank fraud network, and their narcotics organization. Laws that block online sports betting are disguised attempts to obstruct narcotics trafficker competition and their money flow. Regulations that block water bottles onboard aircraft are disguised attempts to obstruct the transport of diamonds. The only true objective unbiased and free flowing news source is the Internet, and the USGovt with the Syndicate at the helm is well aware. The Internet is their enemy. My forecast is for the next supposed terrorist attack, a false flag type like 911, will center on the Internet. Something like an attack to take down the electrical grid in large portions of an entire region. That would incite a public outcry for action and protection, handing greater powers to the USGovt and yielding citizen rights.
◄$$$ GLOBALISTS SEEKING WORLD DOMINATION
THROUGH CREDIT PREDATION, WAR PROFITEERING,
MAYHEM, GENOCIDE, EXPLOITATION, NEWS CONTROL,
DEBT SLAVERY, AND FEAR ARE INTERRUPTED BY THE
BREAKDOWN IN THE FINANCIAL AND ECONOMIC SYSTEMS.
A TREND MIGHT BE FIRM TOWARD DE-CENTRALIZATION.
THE CURRENT PATH APPEARS TO BE IN THE OPPOSITE
DIRECTION INTENDED BY GLOBALISTS. WATCH THE
CURRENCY REVERSION EVENTS IN
To preface, these are very dangerous topics
that might best be kept in summary form. My
preference is to touch the surface, then leave
it to individuals to pursue further. Consider
a string of mega-topics, the Globalist themes.
Much detail has been given in past Crisis Coverage
Reports on the swine flu chapter
of world history. Its central players came from
Not soon after the
On the horizon lie three new Globalist themes,
of much different variety, and more likely some
degree of success, with a heavy feedback, a
backlash impact. As the global currency war
and trade war pick up momentum, with epicenter
in the US-China conflict, the movement of capital
controls has become extremely important.
The exit of money from the
The alternative opposition news sources have
led to a slow barely disguised movement toward
Internet censorship, led by the
USCongress. The phony ruse of combating terrorism
has been applied, whether for communication
between villains or attacks against the
A new viral movement has arrived on the scene,
one which has the potential to turn viral in
the hearts & minds of the people, and direct
anger & retribution against the bankers.
Think lawsuits and legal prosecution, even RICO
law applications. The home confiscation
initiatives, aided by assembly lines of document
forgery, false legal claims to foreclose, and
property titles lacking perfection of bond securities,
threaten to send the banker crowd into a much
more defensive position. It might result in
a shift in fashion toward orange jumpsuits,
especially for the contract lawyers at the big
banks. At issue is whether the banks operating
out of Wall Street and their Fannie Mae headquarters,
currently under USGovt supervision, can control
the states. The stubborn states have supreme
courts, legal teams, and an armada of available
attorneys to fight the syndicate. The battle
is raging, with rising volume and intensity
each new day. However, in order to fully
grasp the Globalist challenge, look no further
than the Euro currency. Not only is the
European Union in crisis, on the edge of dismantle
from a faulty foundation, but the Euro currency
is in the process of fracturing. Do not be lulled
into a secure sense from a rise in the Euro
currency exchange rate versus the USDollar.
As the sovereign debt crisis continues to rotate
◄$$$ CAPITAL CONTROLS ARE RATCHETED UPWARDS. OBAMA IS PUSHING TO FORCE REPORTING OF ALL FINANCIAL TRANSACTIONS. NOTE ONE MORE SIGNAL OF SYSTEMIC FAILURE, AS THE POWERZ ATTEMPT TO CAPTURE PRIVATE WEALTH BEFORE ITS CONFISCATION. $$$
The Obama Admin is a mere continuation of the
Bush II Admin as far as bank welfare, war profiteering,
global warming, internet censorship, and capital
controls are concerned. Obama has gone much
farther than Bush II in measures toward capital
control. He has ordered broader cross-border
money flow monitoring. Under the thinly disguised
premise of trying to control organized crime
and terrorism, the Obama Admin has introduced
a proposal that would require US banks and
◄$$$ OUTSPOKEN CRITICS TO BIG GOVERNMENT AND THE BANK SYNDICATE WILL BE SILENCED, REMOVED, OR ELIMINATED. THAT MODUS OPERANDI HAS NOT CHANGED FOR CENTURIES. GLENN BECK WILL STEP DOWN, HAVING MADE HIS MARK. $$$
Witness Glenn Beck and the Silence of the Lambs. Two weeks ago, Beck announced on his radio show that he will be taking a brief leave of absence for medical reasons. He said, "There is something wrong with my voice, and we are not sure what it is. They are going to be doing CATscans and MREs or MRIs and PET scans. They are going to be doing blood work like crazy." A quick monitor of his telephone or management offices might provide a more immediate accurate diagnosis. Surgery might remove syndicate fingers around his throat. A shutdown was ordered by the syndicate. That is my view. The truth will emerge in time.
◄$$$ STUXNET WORMS HAVE INFECTED OVER
100,000 COMPUTERS. THE ORIGINAL TARGET WAS THE
BUSHEHR NUCLEAR PLANT IN
Some have called the StuxNet worm a potential
global black swan. The target was the large
Iranian nuclear reactor facility at Bushehr
and the German built Siemens equipment. However,
the worm spread much farther beyond Bushehr
in the system infections. If constrained
The origin of the cyber attacks is a
◄$$$ A BERKELY PHYSICS PROFESSOR OBJECTS TO THE GLOBAL WARMING DISINFORMATION. WITH HIS INPUT, ANOTHER LEG IS PULLED FROM THE CAP & TRADE FRAUDULENT STOOL. HE IS TOO OLD TO BE SILENCED, KIND OF LIKE CHALMERS JOHNSON. THE CARBON TAX IS THE LAST GASP OF THE ELITE TO SIPHON MONEY FROM THE SYSTEM LIKE GIANT PARASITES. $$$
Harold Lewis is professor emeritus of Physics, University of California at Santa Barbara, and its department former chairman; former member Defense Science Board, chairman of its Technology panel; chairman DSB study on Nuclear Winter; former member Advisory Committee on Reactor Safeguards; former member of President's Nuclear Safety Oversight Committee; chairman American Physical Society (APS) study on Nuclear Reactor Safety; co-founder and former chairman of JASON; former member of USAirForce Scientific Advisory Board; served in US Navy in WW2; author of several books such as technology risk and decision making. He has the solid credentials.
Harold Lewis boldly stated, "It is of course, the global warming scam, with the (literally) trillions of dollars driving it, that has corrupted so many scientists, and has carried APS before it like a rogue wave. It is the greatest and most successful pseudo-scientific fraud I have seen in my long life as a physicist. Anyone who has the faintest doubt that this is so should force himself to read the ClimateGate documents, which lay it bare. Montford's book organizes the facts very well. I do not believe that any real physicist, nay scientist, can read that stuff without revulsion. I would almost make that revulsion a definition of the word scientist."
Lewis continued to hypothesize what is happening
and with what motive. The motive is tied to
money, fame, and travel perks. He stated, "I
do feel the need to add one note, and this is
conjecture, since it is always risky to discuss
other people's motives. This scheming at APS
headquarters is so bizarre that there cannot
be a simple explanation for it. Some have held
that the physicists of today are not as smart
as they used to be, but I do not think that
is an issue. I think it is the money, exactly
what Eisenhower warned about a half century
ago. There are indeed trillions of dollars
involved, to say nothing of the fame and glory
(and frequent trips to exotic islands) that
go with being a member of the club."
See the Cryptogon article (CLICK HERE).
My viewpoint is simple. Wall Street and
◄$$$ MARK MOBIUS OF TEMPLETON IDENTIFIES
A GLOBAL DEPRESSION THREAT AS A CONSEQUENT RISK
FROM TRADE WAR, CURRENCY WAR, CAPITAL CONTROLS,
AND MORE. TOO MUCH ATTENTION IS DIRECTED AT
The world risks a global depression if currency
tensions escalate. Nobody seems to give heed
to the lessons of the Smoot-Hawley experience
of the Great Depression. History is repeated,
not learned from. Rising tensions stirred
by an escalating global currency war has sparked
talk of capital controls. The effect on financial
markets would be dire, claims Mark Mobius,
executive chairman of Templeton Emerging Markets
Group. If enacted, currency controls spawn trade
wars accompanied by the strangulation of trade
restrictions. A transformation is being implemented.
Mobius expressed the viewpoint that currency
appreciation is not necessarily a bad thing
for importers of raw materials, and can provide
a structural stimulus toward greater domestic
economic development from realignment. He was
Mark Mobius said, "We could really
move into a depression globally. I think the
linchpin of this is
Fears of global currency and trade wars are
top of the agenda at IMF and World Bank meetings.
The preliminary Group of Seven meeting last
week had a focus on the defuse of currency tensions.
But with the US Federal Reserve expected to
introduce further Quantitative Easing measures,
the flood of easy money is set to weaken the
USDollar and trigger an appreciation in other
currencies. US policies aggravate currency tensions
mightily. The main actor in the Competing
Currency War is the
◄$$$ THE INCONGRUITY OF THE RATING AGENCY
POSITIONS HAS BECOME NOTICEABLY TILTED AND RIDICULOUS.
THE UNITED STATES AND
The farce of the rosy credit ratings given
to the USGovt and UKGovt debt has been exposed,
as the fundamental data provide a telling story
in inequality. The
One nation conspicuously stands out as NOT
participating in any austerity measures, any
budget cutbacks, any retreat in government size.
That is the
THIRD WORLD DESTINY
◄$$$ PAUL CRAIG ROBERTS DESCRIBES A THIRD WORLD ECONOMY ENGRAINED IN THE UNITED STATES. NEW EMPLOYMENT IN THE PRODUCTION OF TRADEABLE GOODS HAS GONE OFFSHORE. NEW EMPLOYMENT IN DOMESTIC SERVICE BOUND ONSHORE REMAINS THE GROWTH PATCH. THOSE JOBS TEND TO BE LOW INCOME, LOW SKILL, LOW SECURITY, LIKE THE CORE OF THIRD WORLD ECONOMIES. $$$
Paul Craig Roberts served as Assistant Secy
Treasury in the Reagan Admin, and former associate
editor of the Wall Street Journal. He put forth
a harsh editorial that describes the labor force
into a proper perspective. "The wage
and salary cost savings obtained by giving Americans
jobs to Chinese and Indians have enriched corporate
CEOs, shareholders, and Wall Street at the expense
of the middle class and
◄$$$ CALLS OF
An interesting debate on CNBC was presented
in early October on whether the
My view runs parallel but deeper, consistent
with the emerging market, but with a different
Norman Augustine of Lockheed Martin recently
completed a Competitive Educational study on
My personal experience at Carnegie Mellon Univ
in the graduate program (ended in 1980) revealed
that half of students in the doctoral program
were foreigners, and several were my friends.
Only one professor was foreign born, a man from
◄$$$ DEBT IN THE UNITED STATES IS GROWING MUCH FASTER THAN INCOME. AN EVENT IS COMING TO SHOCK THE SYSTEM, A CERTAIN KICK INTO THE THIRD WORLD. INCOME IS SOON TO HAVE FURTHER DOWNWARD SHOCKS FROM ACCELERATED JOB LOSS AND BUSINESS SHUTDOWNS. AT HEAVY RISK IS LIFE SAVINGS. THE GAP BETWEEN DEBT AND INCOME IS WIDENING, TO A SHOCKING LEVEL, A FACTOR TO DICTATE A BREAKDOWN IN THE SYSTEM. $$$
◄$$$ THE UNITED STATES LEADS THE WORLD IN DEBT/REVENUE RATIO. MANY ANALYSTS FOCUS ON CUMULATIVE DEBT/ECONOMY RATIO, WHICH IS FINE. OTHERS FOCUS ON ANNUAL DEFICIT/ECONOMY RATIO, WHICH IS ALSO FINE. BUT REVENUE INCLUSION GIVES THE ALL IMPORTANT INDICATION OF FOREIGN FUNDED DEBT. $$$
John Mauldin makes a fine argument on revenues
serving the most important indication. From
the inception of the Hat Trick Letter, a mainstay
Jackass argument has been that foreign funded
debt would eventually undermine national sovereignty.
In other words, the nation must cater to foreign
interests and constantly bend, even in secret
fashion, so as to maintain deficit finance.
Although pressures are present here and now
from foreign priorities, the USGovt, being of
a fascist nature and combative to ally and enemy
alike, has turned hostile to USTreasury creditors.
The revenue inclusion dictates the health story,
since deficits not covered by internal revenue
must be financed by foreigners. In fact, modern
history teaches that foreign flight paves the
way to national ruin. In the case of the
John Mauldin wrote, "It is not GDP
but government revenues that matter. Whatever
the size of a government's liabilities, what
matters ultimately is how they compare to the
resources available to service them. One
benefit of sovereignty is that governments can
unilaterally increase their income by raising
taxes, but they will only ever be able to acquire
in this way a fraction of GDP. Debt/GDP therefore
provides a flattering image of government finances.
A better approach is to scale debt against
actual government revenues. An even
better approach would be to scale debt against
the maximum level of revenues that governments
can realistically obtain from using their tax
raising power to the full. This is, inter alia,
a function of the people's tolerance for taxation
and government interference. Seen from this
◄$$$ THE BREAKDOWN SEQUENCE WILL GATHER MOMENTUM AND OCCUR MORE QUICKLY THAN MOST PEOPLE IMAGINE. COMPLEX SYSTEMS ARE COLLAPSING BEFORE OUR EYES. LINEAR PATHWAYS HAVE ENTERED WARP ZONES. UNPREDICTABLE EVENTS ARE IN PROGRESS. AN AVALANCHE OF DEBT IS READY TO COME DOWN THE MOUNTAIN. INSOLVENCY WILL MAGNIFY TO MUCH GREATER LEVELS, ONLY TO BECOME DEPENDENT ON PRINTED MONEY. GOLD & SILVER ARE THE PREPARATIONS FOR SURVIVAL. $$$
Chris Martenson lays out a brief but poignant article that cuts directly to the core of the numerous problems. He summarizes them well. The main theme he presents is that moments of discontinuity are coming soon, if not already. More financial breakdowns are imminent, perhaps bigger than previous crisis events. Hard walls will be encountered to the usual remedy policies. No linear pathways will be available. The problems will seem to accelerate, both with greater frequency and greater intensity. He said, "When the next moment of discontinuity finally arrives, events will unfold much more rapidly than most people expect... But far too many people expect events to unfold in a more or less orderly manner, with plenty of time to adjust along the way. In other words, linearly... We still face the convergence of multiple trends, each of which alone has the power to permanently transform our economic landscape and standard of living." He cited peak oil as a major challenge, but my focus is on the mention of sovereign insolvency and currency debasement. A big breakdown toward systemic failure is nigh, but its timing is as difficult to predict as when an avalanche of snow strikes the lower grounds. The accumulation of debt creates the risk. Its mass of hardpacked snowy debt will cause unspeakable damage.
In sovereign debt, most nations have set up pension and entitlement programs that render their states as insolvent on a chronic basis. Any shortfalls can be funded only with a bright economic future, and strong recoveries. But huge future deficits are built in. The USGovt official deficit is likely to grow by $9 trillion in the next decade. A string of sovereign defaults lie in the future, whose fuses are criss-crossed from interconnected borrowings. This topic was addressed in Hat Trick Letter reports earlier this year. Each nation's banks own debt from other neighbor nations. Each nation has significant trade with other neighbor nations. Martenson warns that attention must be directed to the shape, timing, and severity of the aftermath of economic wreckage that is certain to come from upcoming sovereign defaults.
In the currency wars, one of my key themes,
nations have resorted in knee-jerk fashion to
printing money in order to attempt to find relief
from both economic distress and banking system
insolvency. Currency debasement results. Martenson
describes the Competing Currency War, and reminds
that all nations cannot win simultaneously
in the battle to debase currencies, yet they
will try. He misses a great big point though,
since all nations will lose, with no winners
at all!! Political support is easy to muster
for printing money to dig a way out of the morass.
He urges preparation for a global program of
currency debasement as a guaranteed aspect of
the economic future. My view extends to the
effect of the currency war, the race to the
bottom, which results in a uniformly higher
cost structure, further ruin of the capital
base, lower incomes, finally a corporate breakdown
and economic failures. The quantum drop
in standard of living will be the grand shock,
and the ticket stub to the trip into the
◄$$$ THE USFED INSOLVENCY WILL BECOME A STARK REALITY SOON, VISIBLE AT A GLOBAL LEVEL, LIKE IN A FISHBOWL. THE MORTGAGE FORECLOSURE SCANDAL WILL TURN MUCH MORTGAGE BOND PAPER INTO WORTHLESS HANDI-WIPE TISSUES. THE USFED BALANCE SHEET WILL QIUCKLY APPROACH MINUS $1 TRILLION WITHIN A YEAR. PRESSURE TO CONTINUE THEIR FUNCTION WILL BECOME ACUTE IN THE COMING MONTHS. $$$
USFed insolvency and quitting never enters
the minds of analysts. My forecast in mid-2009
was for the USFed to move from a $500 billion
hole on their balance sheet to a full $1 trillion.
The stage is set for precisely that next quantum
leap in red ink flow with large holes blown
in their balance sheet. The mortgage bonds they
bought at phony high value have lost much value.
They will lose much more value in the coming
months. They must find a way to dump toxic debt
on the ever-willing USGovt, like in the Fannie
Mae back door. That is surely another big reason
why it was nationalized. The Chinese forced
the nationalization in summer 2008, if truth
be known. The White House chooses not to
jump on the populist bandwagon to halt all foreclosures
in a moratorium, since their masters own the
USFed. They do not wish to accelerate the lethal
powerful losses on their increasingly acidic
balance sheet. The accomplice USDept Treasury
is equally worried about the asset backed bond
market. Mortgage bonds hold the foundation for
the entire housing market, with home loans the
connective tissue. The Fannie Mae cesspool just
turned a couple points higher on pH acidity
level. The USGovt is on the hook for the Fannie
Mae gigantic vats that they fully adopted. Regard
the Treasury Secy Geithner as the custodial
officer of the Fannie Mae fields of financial
effluent of the most toxic variety. Thus
he will defend their vats. The USGovt has given
a formal guarantee, no longer quasi or implicit,
but rather an explicit guarantee on $trillions
in Govt Sponored Enterprise bonds, the Fannie
Mae and Freddie Mac mortgage bonds supposedly
backed by properties. However, developments
during the last few weeks have highlighted the
dubious linkage to any title claims at all.
Calling a moratorium on foreclosures would accelerate
the fracture that has already grown as wide
The USFed owns nearly $1.5 trillion of toxic assets that have no bid, no market, and no integrity. That is a giant hole burned in their balance sheet. By being without a bid, that means any bond professional has an extreme challenge to argue or justify any inherent value whatsoever. Only the USFed offered demand for them, since the mortgage bond market was at high risk of near total collapse. The nation has returned to the same critical point two years later, since nothing was fixed. Now the USFed and USDept Treasury do not want to undermine the broken mortgage bond market, by adding greater uncertainty about the home loans that serve as their backbone. If foreclosed homes cannot be sold because of fraudulent paperwork, imagine the difficulty in selling assets chockfull of faulty or fraud-ridden loans. Chaos would ensue in the bond market, with ripple effects to USTreasurys. The nation is gripped with the challenge or finding a property title for a foreclosed home, and some homeowners are demanding proof of title before evacuating during foreclosure. Others have stopped mortgage payments until they are satisfied the bank actually holds the title. The next chapter to this nightmarish systemic national scandal is verification of the related home loans within asset backed securities, a key income stream claimed. Then further still, an impossible challenge comes in removing the home loans out of a pyramid of securities sitting on top of it. Think Collateralized Debt Obligation, heavy leverage, and unaccountability. We are witnessing perhaps a financially violent transformation into a communist society, starting with individual property rights!!
The USThe banking industry is exposed for $3
trillion in losses from mortgage bonds that
have tenuous if not absent linkage through viable
claims to properties, their residual sale value,
their mortgage payment revenue stream, or even
their rental income stream upon reclassification
to rental properties after separation from homeowners.
The USFed and USDept Treasury do NOT wish
to throw gasoline on the mortgage bonfire that
has spontaneously erupted. This bonfire
will erupt naturally on its own, and the bank
leaders know it. The Treasury is directly backing
$400 billion of GSE securities, and is indirectly
backing another $6.8 trillion by virtue of mortgage
insurance. Given the tight link guarantee between
the Fannie Mae bonds and the USGovt, one can
hardly distinguish them from USTreasury Bonds.
If the linkage is further removed from
the asset in securitization, the Fannie Mae
bond reverts to a USTreasury Bond. Thus
the chain link threat to the USDollar. Thus
the revulsion by foreign creditors to the
Fannie Mae wishes to avoid the entire home foreclosure process. That is why Fannie cleverly offers the home rental option. Just give the USGovt your tired, your poor, your huddled masses of property titles and the US Constitution provision of personal property rights will be one step closer to total shredding, an Elitist objective. One nation under banks, by the banks, and for the banks. This is no joke!! One can be most assured that the contract and document paperwork at Fannie & Freddie is a big pile of melted rotten spaghetti with rancid meat sauce. Anyone who would challenge the USGovt to produce their property title before making a single additional monthly mortgage payment, well, that would be too nasty and even revolutionary. Maybe it is justice. Henry David Thoreau would be proud of the civil disobedience, the title of his famous essay, one had a profound effect on the young Jackass.
◄$$$ BERNANKE WARNS IN A LONG DETAILED SPEECH OF FINANCIAL AND ECONOMIC COLLAPSE IN PROGRESS. SUCH AN HONEST ASSESSMENT COULD NEVER BE GIVEN BY HIM IN FRONT OF THE USCONGRESS. SOME MIGHT ACCUSE BERNANKE OF A LAPSED FIT OF LUCID HONESTY. OTHERS MIGHT CONCLUDE THAT BEN COMPREHENDS THAT USGOVT FINANCES AND USBANK FINANCES ARE BOTH ON DEATH ROW. BEN MIGHT HAVE EXPERIENCED AN EPIPHANY OF PURE LIGHT AND TRUTH. BERNANKE MUST REALIZE THE UNITED STATES IS ON THE BRINK OF FINANCIAL CATASTROPHE. DEAD AHEAD IS THE THIRD WORLD. $$$
Credit must be given where due. The
Bernanke believes that future budget deficits
and debts could rise indefinitely. "Almost
by definition, unsustainable trajectories of
deficits and debts will never actually transpire,
because creditors would never be willing to
lend to a country in which the fiscal debt relative
to the national income is rising without limit...
The needed fiscal adjustments will be a rapid
and painful response to a looming or actual
fiscal crisis... Countries that continually
spend beyond their means suffer slower growth
in incomes and living standards and are prone
to greater economic and financial instability."
He referred loosely to the shock from some form
of USTreasury debt default, with restructure.
He admitted to the severe budgetary pressures
to the state governments and the federal government.
He described the deterioration of the USGovt
finances, with lower revenue due to the recession
and greater costs to alleviate the recession
and stabilize the financial system. The current
wretched fiscal condition resembles the period
immediately following World War II. He admitted
that the budget deficit is large. "Economic
conditions provide little scope for reducing
deficits significantly further over the next
year or two... If current policy settings are
maintained, and under reasonable assumptions
about economic growth, the federal budget
will be on an unsustainable path in coming years,
with the ratio of federal debt held by the public
to national income rising at an increasing pace.
Moreover, as the national debt grows, so
will the associated interest payments, which
in turn will lead to further increases in projected
deficits. Expectations of large and increasing
deficits in the future could inhibit current
household and business spending." He
mentioned how the constant fiscal duress within
the federal budget constrains the flexibility
of fiscal policy to respond to current or new
economic conditions. He expects Obama Health
Care coupled with an aging population to greatly
aggravate the fiscal situation. Medicare and
Social Security are entrenched hemorrhages.
He painted a bleak picture for the global economy
and foreign fiscal condition as well. He pointed
out that Europe and
Bernanke emphasized the heightened risk to
the overall USEconomy. He gave stern warning,
but ironically he must heed his own warning.
Monetary inflation is eroding capital, which
he must realize. "Failing to address
our unsustainable fiscal situation exposes our
country to serious economic costs and risks...
In the longer term, a rising level of government
debt relative to national income is likely to
put upward pressure on interest rates and thus
inhibit capital formation, productivity,
and economic growth. Larger government
deficits increase our reliance on foreign lenders,
all else being equal, implying that the share
After an impressive steady stream of lucid
logic bound in realism, Bernanke concluded with
delusion and wishful thinking. He identified
ways the USCongress could rein in spending and
make the tax system more efficient. He must
not realize that the august body has no motive
to do so, nor ability, and certainly every bribed
incentive to continue its servitude to the banking
industry. Banks donated $200 million to shape
(if not write) the Financial Regulation Bill.
The jist of his speech was his dire warning
of the financial crisis just ahead. See the
Economic Policy Journal article (CLICK HERE).
To catch a hint of the deep risk for USGovt
debt shock, contrast the meter of private debt
resolution versus the absence of federal debt
resolution. The federal bubble has yet to burst.
When it does, all hell will break loose, and
◄$$$ THE FASCIST BUSINESS MODEL LIES AT THE HEART OF THE NATIONAL ECONOMIC PATHOLOGY. THE BIGGEST BANKS ARE BEING SAVED AS A NATIONAL PRIORITY, AT THE RISK OF ECONOMIC COLLAPSE. FEAR OF DEPRESSION IS WIDELY SPREAD IF THEY ARE PERMITTED TO FAIL. THE NATION WILL PLUNGE INTO A DEPRESSION IF THEY DO NOT FAIL. THE OUTLET IS THE FAVORITE FASCIST DEVICE, NAMELY WAR. THE CONSTANT IS ANOTHER FASCIST DEVICE, PROMOTION OF AND PREOCCUPATION WITH TERRORISM. $$$
Almost every prominent independent economist
has concluded that the giant banks must be broken
up, in order to enable the national economy
an opportunity to recover. They are clogging
the entire credit system, the credit markets,
and the credit generation. Midsized and small
banks actually lend more to businesses than
the mega-banks, and thus serve the USEconomy
more effectively. The foreclosure scandal
is just the latest episode of Wall Street corruption
in a long skein. Unless the big
◄$$$ THE I.M.F. ADMITS THAT THE WEST
IS STUCK IN NEAR DEPRESSION, AND AUSTERITY MEASURES
WILL LIKELY BACKFIRE. THE WOES OF
Bring to the table the interpreter to filter
the latest Intl Monetary Fund report. In Chapter
Three of the IMF World Economic Outlook offers
a bleak forward view that condemns Southern
Europe to death by slow suffocation and leaves
little doubt that fiscal tightening will trap
◄$$$ JIM GRANT DELIVERS A HARSH INDICTMENT OF THE USFED FOR ITS LETHAL INTERVENTIONS INTO THE USECONOMY. THE BREADTH AND DEPTH OF THEIR INVOLVEMENT HAS CREATED CONDITIONS THAT REQUIRE A PERMANENT ROLE. THEIR REMOVAL FROM A HEAVY ROLE PLAYED INVITES A SYSTEMIC COLLAPSE. HE PAINTS A PICTURE OF THE AMERICAN POLITBURO.
Jim Grant of the Grant Interest Rate Observer
delivered an unusually harsh crticism. Couple
it with the Volcker diatribe, and the criticism
is at shrill levels. Grant accused the USFed
of Lethal Intervention and widespread manipulation
of the USEconomy. He stopped short of claiming
the nation's economy and financial system have
failed. He implied that without their continued
prop role, the
◄$$$ AMBROSE URGES TO SHUT DOWN THE USFED, WHICH IS REVIVING PROVEN DESTRUCTIVE IDEAS. THEY ARE DOING ONLY WHAT THEY KNOW, INFLATE. THEY CONTINUE TO DO WHAT THEY HAVE ALWAYS DONE, DESTROY. THEY WILL PRODUCE A HIGHER COST STRUCTURE WITHOUT HIGHER NATIONAL WAGES. MONETARY THEORIES BEHIND KEYNESIAN PRINCIPLES ARE BEING SEQUENTIALLY DISCREDITED. $$$
As preface, one must focus on the claim that
USFed Chairman Bernanke called the USDollar
Printing Pre$$ an efficient electronic tool
that spews out money at zero cost, useful in
crisis prevention. He was boasting of the extreme
Ambrose Evans-Pritchard has undergone a transformation
with linked awakening. He finally comprehends
the destructive power of the USFed. For a full
year, he has defended their emergency stimulus
policies. He has argued vigorously that "the
USFed would not succumb to drug addiction, political
abuse, and mad intoxicated debauchery, once
it began taking its first shots of Quantitative
Easing. My pathetic assumption was that Ben
Bernanke would deploy further QE only to stave
off DEFLATION, not to create INFLATION.
If the Federal Open Market Committee cannot
see the difference, God help
Ambrose traces blame back to abandonment of the Inflation Target, a new turn in policy by Bernanke. It is evident from their active desire to generate more inflation. Harken back to 1996, fourteen years ago. His predecessor Alan Greenspan abandoned controls placed on monetary growth in favor of monitoring the price inflation. The Inflation Target was born, a travesty, like the alarm bell turned off, or the window given a facade painting to mask the horizon view. They watched the CPI doctored to stay low in the late 1990 decade, then proceeded to generate one asset bubble after another until the banks died, households went insolvent, jobs vanished, and federal deficits shot over $1.5 trillion annually. THAT IS THE GREENSPAN LEGACY!! The Greenspan decision to place careful focus on the distorted CPI to warn of price inflation turned out to be disastrous. Now Bernanke plans to drop the Inflation Target, and to pump the monetary press until the banks revitalize to show a stronger balance sheet, or until the consumer demand revives, or until job growth returns. They are blind fools, heretics in high priest robes, economic morons. The USFed is going down the same path as the Weimar Republic, rationalizing its steps, ignoring the risks, after having done revisionist history tabloid writing. See Von Havenstein, head of the Weimar Reichsbank, who knew his path would lead to wreckage, aside Bernanke, who is ignorant of each demon that appears around the next corner. Bernanke has missed every single turn in the financial crisis, which the Jackass has laid out, all in progress and in advance. Ben looks to be praying not to preside over catastrophe. It reminds me of a man whose PhD dissertation is being refuted convincingly.
Ambrose admits his errors in defending the hyper-inflating establishment cabal. He tips his hat to critics who sent a steady stream of negative if not nasty emails to the UK Telegraph. He admits the USFed is out of control, having lost its way. He describes the current justification with an historical light. He shows confusion though in accepting Friedmanite preachings, as the Quantitative Theory of Money has been blown to smitherines. The adopted rationale has been laid out. Ambrose summarized it, saying "The dangers of tipping into a debt compound trap, as described by Irving Fisher in Debt Deflation Theory of Great Depresssions in 1933, outweigh the risk of an expanded money stock catching fire and setting off an inflation surge later." He incorrectly calls Debt Deflation a toxic process that can and does destroy societies as well as economies, which is not to be trifled with. Debt deflation kills off the guilty banks, a necessary process to eradicate corruption, which he overlooks. He sees the destructive path of hyper-inflation from monetary growth, while missing that debt deflation has a great tremendous positive outcome as in the bankruptcy tunnel. The problem with debt deflation, known by many as liquidation of bad debt and toxic assets, is that the process removes from power the main control agents of the USGovt and UKGovt, and at the same time invites a series of nuclear financial explosions lit from the basement of credit derivatives. By abhoring the debt cleanup process, Ambrose ignores the entire bankruptcy gift to recovery pathways, a key cornerstone of capitalism. He leans favorably on a pickup evident in the money velocity, when it is like saying the dead man has crawled out of the gutter to the edge of the sidewalk.
Ambrose closes with a reference to the Competing
Currency War heating up. The Bank of Japan has
embarked on unsterilized currency intervention,
which amounts to stimulus. That means they do
not neutralize one currency infused by purchase
of the other's bonds in offset. The USFed and
the Bank of England are signalling fresh Quantitative
Easing initiatives. Their previous efforts failed,
so do it again. Ambrose advises "If
The passage of time will bring continued economic breakdown and systemic failure. A QE2 will bring about a few months of relief but with heavy burden immediately of a higher cost structure, a point missed by economists. The same economic breakdown and systemic failure will occur, but with a higher cost platform. My forecast is for at least two more QE initiatives, a QE2 starting this December, and a QE3 starting one year later. Each will lift the cost structure. Neither will aid the income levels, just as the QE1 never touched the income level. Neither will promote job growth, the constant nightmare. Ambrose raises the specter of the Americans and the British being so decadent that they will refuse to take their punishment, opting to default on their debts by stealth. This is the Chinese accusation. See the UK Telegraph article (CLICK HERE). Analogies are helpful at times. It reminds me of a drunk sleeping in the gutter because he can drink runoff water. The drunk returns to the bottle of booze because it is so familiar, and it seems cleaner. One of the most amazing human characteristics is the attraction of the familiar, even when it is clearly destructive, even when it is killing the person. In time, death is welcomed as an end. Recovering addicts are familiar, as this allegory is old school.
◄$$$ MARTIN HUTCHINSON ACKNOWLEDGES CAPITAL
DESTRUCTION AND THE MARCH TO THE THIRD WORLD.
THE HEAVY COST OF PROMOTED ASSET BUBBLES IS
ABANDONED, LIQUIDATED, AND UNKEPT CAPITAL.
Martin Hutchinson is a fine analyst, with association
to the Prudent Bear. Hutchinson forecasts
a powerful USEconomic recession, and ongoing
haphazard attempts to manage wreckage from a
sequence of failed asset bubbles. He makes
a point consistent with the Jackass, that the
chronic strong monetary inflation has destroyed
significant capital, which he called de-capitalization.
Americans were lured repeatedly into asset bubble participation instead of saving. They gambled instead and now find themselves largely without pensions or much in life savings. The savings would have supplied industry, which has also mostly left town and left the country. When imagining de-capitalization, bring to mind cutting the head off industry, the legitimate engine of income.
John Mauldin received an anonymous commentary on the mortgage and foreclosure scandal that is extremely comprehensive and well worth the time to read, review, and absorb. The source comes from inside the financial services business. It was written out of disgust and dismay, heavily edited by Mauldin himself to remove angry profanity. Quotes will not put be in place. The entire commentary is presented from his source verbatim, delivered by Kotok. It is not a Jackass interpretation or analysis. Many thanks to Mauldin for its publication. What follows comes from inside the bank world:
Homeowners can only be foreclosed and evicted from their homes by the person or institution who actually has the loan paper. Only the note holder has legal standing to ask a court to foreclose and evict. Not the mortgage, the note, which is the actual IOU that people sign, promising to pay back the mortgage loan. Before mortgage backed securities, most mortgage loans were issued by the local Savings & Loan. So the note usually did not go anywhere. It stayed in the offices of the S&L down the street. But once mortgage loan securitization happened, things got sloppy. They got sloppy by the very nature of mortgage backed securities. The whole purpose of MBSs was for different investors to have their different risk appetites satiated with different bonds. Some bond customers wanted super safe bonds with low returns, some others wanted riskier bonds with correspondingly higher rates of return.
Therefore, as everyone knows, the loans were bundled into REMICs, Real Estate Mortgage Investment Conduits, a special vehicle designed to hold the loans for tax purposes, and then sliced & diced, split up and put into tranches, according to their likelihood of default, their interest rates, and other characteristics. This slicing and dicing created senior tranches, where the loans would likely be paid in full, if the past history of mortgage loan statistics was to be believed. And it also created junior tranches, where the loans might well default, again according to past history and statistics. A whole range of tranches was created, of course, but for the purposes of this discussion we can ignore all those countless other variations. These various tranches were sold to different investors, according to their risk appetite. That is why some of the MBS bonds were rated as safe as Treasury bonds, and others were rated by the ratings agencies as risky as junk bonds.
But here is the key issue. When an MBS was first created, all the mortgages were pristine. None had defaulted yet, because they were all brand new loans. Statistically, some would default and some others would be paid back in full. But which ones specifically would default? No one knew, of course. If I toss a coin 1000 times, statistically, around 500 tosses the coin will land heads. But what will the result be of, say, the 723rd toss? No one knows. Same with mortgages. So in fact, it was not that the riskier loans were in junior tranches and the safer ones were in senior tranches. Rather, all the loans were in the REMIC, and if and when a mortgage in a given bundle of mortgages defaulted, the junior tranche holders would take the losses first, and the senior tranche holder last. But who were the owners of the junior tranche bond and the senior tranche bonds? Two different people. Therefore, the mortgage note was not actually signed over to the bond holder. In fact, it could no't be signed over. Because, again, since no one knew which mortgage would default first, it was impossible to assign a specific mortgage to a specific bond. Therefore, how to make sure the safe mortgage loan stayed with the safe MBS tranche, and the risky and/or defaulting mortgage went to the riskier tranche?
Enter stage right the famed MERS, the Mortgage Electronic Registration System. MERS was the repository of these digitized mortgage notes that the banks originated from the actual mortgage loans signed by homebuyers. MERS was jointly owned by Fannie Mae and Freddie Mac, like the chlamydia and the gonorrhea of the financial world. The purpose of MERS was to help in the securitization process. Basically, MERS directed defaulting mortgages to the appropriate tranches of mortgage bonds. MERS was essentially where the digitized mortgage notes were sliced and diced and rearranged so as to create the mortgage backed securities. Think of MERS as Frankenstein's operating table, where the beast got put together. However, legally, and this is the important part, MERS did not hold any mortgage notes. The true owner of the mortgage notes should have been the REMICs. But the REMICs did not own the notes either, because of a fluke of the ratings agencies. The REMICs had to be bankruptcy remote, in order to get the precious ratings needed to peddle mortgage backed Securities to institutional investors. So somewhere between the REMICs and MERS, the chain of title was broken.
Now, what does 'Broken Chain of Title' mean? Simple: when a homebuyer signs a mortgage, the key document is the note. As I said before, it is the actual IOU. In order for the mortgage note to be sold or transferred to someone else, and therefore turned into a mortgage backed security, this document has to be physically endorsed to the next person. All of these signatures on the note are called the 'Chain of Title.' You can endorse the note as many times as you please, but you have to have a clear chain of title right on the actual note. I sold the note to Moe, who sold it to Larry, who sold it to Curly, and all our notarized signatures are actually, physically, on the note, one after the other. If for whatever reason any of these signatures is skipped, then the chain of title is said to be broken. Therefore, legally, the mortgage note is no longer valid. That is, the person who took out the mortgage loan to pay for the house no longer owes the loan, because he no longer knows whom to pay. To repeat: if the chain of title of the note is broken, then the borrower no longer owes any money on the loan. Now you see the can of worms that is opening up.
The broken chain of title might not have been an issue if there had not been an unusual number of foreclosures. Before the housing bubble collapse, the people who defaulted on their mortgages would not have bothered to check to see that the paperwork was in order. But as everyone knows, following the housing collapse of 2007 to 2010 and counting, there has been a boatload of foreclosures, and foreclosures on a lot of people who were not sloppy bums who skipped out on their mortgage payments, but smart and cautious people who got squeezed by circumstances. These people started contesting their foreclosures and evictions, and so started looking into the chain-of-title issue, and that is when the paperwork became important. So the chain of title became crucial and the botched paperwork became a nontrivial issue.
Now, the banks had hired 'Foreclosure Mills,'
law firms that specialized in foreclosures in
order to handle the massive volume of foreclosures
and evictions that occurred because of the housing
crisis. The foreclosure mills, as one would
expect, were the first to spot the broken chain
of titles. Well, what do you know, it turns
out that these foreclosure mills might have
faked and falsified documentation, so as to
fraudulently repair the chain-of-title issue,
thereby 'proving' that the banks had judicial
standing to foreclose on delinquent mortgages.
These foreclosure mills might have even forged
the loan note itself. Wait, why am I hedging?
The foreclosure mills did actually, deliberately,
and categorically fake and falsify documents,
in order to expedite these foreclosures and
evictions. Yves Smith at Naked Capitalism, who
has been all over this story, put up a price
list for this 'service' from a company called
DocX. Yes, a price list for forged documents.
Talk about your one-stop shopping! So in other
words, a massive fraud was carried out, with
the inevitable innocent bystanders getting caught
up in the fraud. The guy who got foreclosed
and evicted from his home in
Now, the reason this all came to light is not
because too many people were getting screwed
by the banks or the government or someone with
some power saw what was going on and decided
to put a stop to it. That would have been nice,
to see a shining knight in armor, riding on
a white horse. But that is not how
The fact that Ally Financial (formerly GMAC), JP Morgan Chase, and now Bank of America have suspended foreclosures signals that this is a serious problem, obviously. Banks that size, with that much exposure to foreclosed properties, do not suspend foreclosures just because they are good corporate citizens who want to do the right thing, and who have all their paperwork in strict order. They are halting their foreclosures for a reason.
The move by the United States Congress last week, to sneak by the Interstate Recognition of Notarizations Act? That was all the banking lobby. They wanted to shove down that law, so that their foreclosure mills forged and fraudulent documents would not be scrutinized by out-of-state judges. The spineless cowards in the Senate carried out their master's will by a voice vote, so that there would be no registry of who had voted for it, and therefore no accountability. And President Obama's pocket veto of the measure? He had to veto it. If he had signed it, there would have been political hell to pay, plus it would have been challenged almost immediately, and likely overturned as un-Constitutional in short order. But he did not have the gumption to come right out and veto it. He pocket vetoed it. As soon as the White House announced the pocket veto, the very next day, Bank of America halted all foreclosures, nationwide.
Why do you think that happened? Because the banks are in trouble, again, over the same thing as last time, the damned mortgage backed securities! The reason the banks are in the tank again is, if they have been foreclosing on people they did not have the legal right to foreclose on, then those people have the right to get their houses back. And the people who bought those foreclosed houses from the bank might not actually own the houses they paid for. And it will not matter if a particular case, or even most cases, were on the up & up. It will not matter if most of the foreclosures and evictions were truly due to the homeowner failing to pay his mortgage. The fraud committed by the foreclosure mills casts enough doubt that, now, all foreclosures come into question. Not only that, all mortgages come into question.
People still have not figured out what all this means. But I will tell you. If enough mortgage paying homeowners realize that they may be able to get out of their mortgage loans and keep their houses, scott-free!! That is basically a license to halt payments right now, thank you. That is basically a license to tell the banks to take a hike. What are the banks going to do, try to foreclose and then evict you? Show me the paper, Mr Banker, will be all you need to say.
This is a major, major crisis. The Lehman bankruptcy could be a spring rain compared to this hurricane. And if this is not handled right, and handled right quick, in the next couple of weeks at the outside, this crisis could also spell the end of the mortgage business altogether. Of banking altogether. Hell, of civil society. What do you think happens in a country when the citizens realize they do not need to pay their debts ???
◄$$$ SOME FINAL COMMENTARY, WRITTEN BY
THE JACKASS WITH GREATLY MIXED EMOTIONS. THEY
ARE SADNESS, SHOCK, DISAPPOINTMENT, SHAME, EXCITEMENT,
SATISFACTION, DISGUST, ANGER, DISBELIEF, AND
DESIRE FOR JUSTICE. SYSTEMIC FAILURE IS IN PROGRESS
BEFORE YOUR EYES. ITS DRIVING FORCE IS BANKER
CRIMINAL BEHAVIOR. SEVERAL MONTHS FROM NOW,
CALLS WILL COME FOR
The kiss of death is the fraudulent MERS
title vehicle. Later, the kiss of the funeral
coffin will be the fraudulent REMIC finance
vehicle. The class action lawsuits just
received a huge energized positive push. A systemic
risk to the
The scandal is going viral in my view, possibly to result in a global boycott of USTreasurys, but starting with a boycott and dumping of USAgency Mortgage Bonds. If the truth of premedicated fraud with concerted coverup is exposed, understood, and accepted, the USTreasury and USDollar will collapse within a month or two. The site of greatest risk is Fannie Mae, being the collector of toxic waste in bond securities. If mortgage bonds are declared worthless by the courts, a tipping point for a USTreasury Bond default could be progress of occurring. The bridge to chaos is the potential for Civil Disobedience, people refusing to make their mortgage payments. If hundreds of thousands of home loan holders consult with lawyers to demand proper title before continuing to pay on mortgages, the chaos could accelerate. In a year, perhaps 50% of people will not pay their mortgage!! This is a potential systemic failure lever event in the making. Never lose sight of the fact that the USFed holds $1.5 trillion in mortgage bonds. If they are declared worthless, the USFed dies!! That could be the inroad to USTreasury default!!
A sense of reassurance comes to see at least three State Supreme Courts take action. They have imposed a moratorium freeze on home foreclosures. The states have been obstructed in their Tenth Amendment initiatives to separate from the USGovt over the Wall Street fraud and federal bailouts. However, imposition of state rights on foreclosure gives them the avenue to cut some cords. The properties lie in the states, which have direct jurisdiction. The cords are from Wall Street firms though in the challenged foreclosure cases. Given the tight linkage between USGovt finance ministry control by Wall Street, the state challenges to the USGovt authority can be more successful through the Wall Street front. If the USCongress forgives $trillion fraud in full view, the states might declare some unique independence from the federal system, on the basis of federally sponsored racketeering.
The battle will be inside the USCongress over sweeping amnesty of Wall Street firms. No potential exists for out of court settlements on a meaningful scale unless they are done in class action cases. Watch Fannie Mae, both a fraud participant but a potential recipient of mortgage payments in doubt. The big banks might be forced to assign rights over to Fannie Mae in resolutions, like in exchange for forgiveness of broad committed fraud. The most egregious Robo-Signed document was the Patriot Act, which in fact few legislators read admist coercion and vivid palpable threats. Most USCongress Bills are not read, just signed, since their marching orders are contained within, after the banks or insurance firms or defense contractors or pharmas write the bill. The systemic failure that the Jackass has written about in the last three years is coming to center stage, with broad recognition, and acceptance in shock.