Archive for October, 2010

The Fraud Club: Goldman Sachs, the SEC, the CFTC, and the Washington skid greasers

Lloyd Blankfein is doing, as he’s claimed, “God’s work.” Surely this is true. His ability to ignore the law and get away with fraud has been truly superhuman, God-like even. He’s become the very Lord of Fraud. He must be omnipotent, otherwise how could he get away with all this crap!

For example, how many laws did Goldman Sachs and the other Wall Street money-changers break to 1) encourage the writing of bogus mortgages, 2) bundle and sell them as mortgage-backed securities knowing full well they were dog doo-doo, 3) buy up credit default insurance to short the very same toxic mortgages he was selling to his “customers”, and then 4) foreclose on said mortgages with the same fraudulent paperwork he started with in the first place?  Wow Lloyd…that’s a killer business model.

Fiduciary duty my left eyeball!

Gladly exchanging short-term profits for the demolition of the American real estate market, his lordship carries on the proud Goldman Sachs’ tradition of bilking, bubble blowing, and bail-outs in search of fat year-end bonuses.

Of course, when all else fails, he’s got his Demigods of Mercy at the Treasury (Paulson, now Geithner) and the Fed (Ben “easy money” Bernanke)  to bail out his Godliness when  it all flies apart.

What about the SEC and the CFTC? Aren’t they keeping an eye on things? Short answer, no. They’re ten years behind the curve. These “watch-dogs” exemplify the concept of regulatory capture i.e. an agency that supposedly acts in the public interest, instead acts in favor of the financiers that it is charged with regulating.  Current attitude at the SEC these days: “Well, yes, hello there Mr. Dimon and Mr. Blankfein. What can we do to look the other way for you today?”

Yes, these so-called “regulatory agencies” have gone over to the power of the dark side. To wit, when was the last time you saw a big “bankster” trotted out the front door of a big New York bank in hand-cuffs?  No, no…ain’t gonna happen.  This is a club after all. They make the rules.  The unwashed masses need not apply.

You’ll never see tough guys from the FBI or the Justice Department elbowing “the suits” out to the paddy wagon. Goldman Sachs and the other investment banks instead 1) pay fines in lieu of hard-nosed prosecutions, or 2)  get plea bargains tagged with such niceties as, “no admission of wrongdoing.”

Paying fines and wiggling through sham court cases are simply “the cost of doing business” for the big boys.

My advice, don’t bite the Big Apple, it’s full o’ maggots.

Of course, down 1-95 a pace, the politicians spin loopholes that the club can later exploit.  DC’s been bought off, you see. The Constitution is gradually being overwritten by the Unified Commercial Code, effectively supplanting a private citizen’s chance of getting justice in the courts, least of all in New York City.  “The Law” is now a cavern of Byzantine legal-ese, all tilted in favor of the big time lawyers, banks, and multi-national corporations.

He that controls the rules wins the game, after all.

Lord Lloyd likes the rules. He’s a member of the Club.  They make the rules you have to live by, he and the other big wigs and kleptocrats  get to do whatever the hell they want.

The Club gets to screw with the economy for short-term profits.  The Club gets re-write the laws in it’s favor. The Club gets to make tons o’ money when it wins and raids the Treasury when it loses.

Mr. and Mrs. Middle Class America, you’ve been had.

Government of the people, by the people, and for the people is over.

Now it’s government of the club, by the club, and for the club.

Kneel, you fool, and kiss the Lord’s ring!


The world’s fastest way to make money

The world’s fastest way to make money:

1) start a Ponzi scheme (pyramid scheme where new investors pay off old investors, basically a pyramid of fraud)

2) loan money to people who are not credit worthy and incorporate them into the Ponzi (guaranteed growth)

3) leverage up (gamble on the profits)

4) go to jail or get bailed out by your friends in the Congress or the Federal Reserve when the bubble pops (privatize the profits and socialize the loses)

Sound familiar?

Dr. William Black, chief prosecutor during the 1980’s S & L crisis, discusses the MBS/Derivatives fraud:

Banking and Securities Fraud 101

Your lethal education: Part 2

Economists say money is a “medium of exchange.”  This is damnable lie. Pure propaganda.

Although money can be viewed as “currency” to exchange goods and services, it’s really much more than that.  Here’s the truth:  real purpose of “money” is to provide the banks with social and political power.

Even a rookie like me can see that money lets people buy and do things they want, including buying and controlling other people, i.e. power politics.  Less money = less power.  More money = more power. If you can enslave a person, a business, or even a government with debt, you own them.  This is the goal of the banking cartel: to enslave the globe in debt.

The banks have set up the whole system to conserve and increase their power and deny you of it.  Money, especially of the debt-based, fiat-Ponzi scheme variety, is in reality, a form of coercion. Since the banks create it, inflate it, and deflate it, they force us to play the game their way.

Their way = you work for us, we control you, get used to it.

“Give me control of a nation’s money and I care not who makes the laws.” (Mayer Amschel Rothschild, a.k.a the original banker from hell)

How the U.S. avoided socialism by capitulating to fascism

Headline: Merger! merger! Major merger! The biggest merger in the history of the world!

No, Google hasn’t merged with Apple.  No, Verizon hasn’t merged with AT & T.  No, Coca-Cola hasn’t merged with Pepsi Co.

No. None of the above. Here’s the big news:

The U.S. government has merged with the Wall Street Banks. (This happened quite awhile ago of course, but it dawned on me just recently.)

At least in a socialist country, the government controls the banks.  But here in the good ol’ U.S. of A, the banks control the government.

Here’s a short list of the latest crop of conspirators:

  • Hank Paulson
  • George H.W. Bush
  • Alan Greenspan
  • Dick Cheney
  • Tim Geithner
  • Ben Bernanke
  • Barack Obama
  • Larry Summers
  • Lloyd Blankfein
  • Jamie Dimon
  • Robert Rubin

You see, if you’re a rich, globalist, neo-liberal (like Soros) or a blood-for-oil-magnate (sit on the Halliburton board of directors) or a private-security-mercenary-CEO (like Erik Prince) that also just happens to be American, then hey, they’ve got your back.

If you’re not in the club, however, you literally work for them. Poor Joe the Plumber, doomed to work twice as hard for half the pay so Tim Geithner and Ben Bernanke  can flood the Too-Big-To-Fail banks with freshly printed cash while Barney Frank tends shop over at the Congress.

As the former Italian dictator Benito Mussolini explained, “Fascism should more appropriately be called corporatism because it is a merger of state and corporate power.”  Surely, such a merger is a fait accompli in the former republic – previously known as the United State of America. Washington and Wall Street are essentially indistinguishable. From a distance, the FED, the Treasury, and the Wall Street Banks are simply separate heads of the very same Leviathan.

Nice system you guys got set up.  You control the money, interest payments, pensions, bond markets, stock markets, and the taxes…basically, the entire labor of the people. Hum…and I grew up thinking you “public servants” worked for me. Boy, did I have it backwards.

Your lethal education: Part 1

Society teaches you that the environment has an unlimited supply of energy and raw materials to drive exponential economic growth.  Growth, growth, growth…it’s all we ever hear about.  Politicians preach it.  Bankers subsist on it. Economist-morons sell it.

Their power depends on the status quo remaining well…the status quo.  That means exponential growth at all costs. The rest of the world be damned.  This is a grotesque lie. Millions are likely to suffer from it.

Harsh? Well, the powers-that-be are either lying, grossly misinformed, or at the very least…uh, creatively myopic.

These morons think energy and raw materials are just sub-systems of the economy:

Reality is the complete opposite:

The economy doesn’t just pop into existence ex-nihilo now does it?  No, that’s impossible.  It would be the first known rebuttal of the first law of thermodynamics if it did.  Energy can be transformed, i.e. changed from one form to another, but cannot be created or destroyed.

It follows that man does not make anything.  We simply re-fashion what nature provides. Therefore, there’s no such thing as man-made capital. It’s obvious that the economy is 100% dependent on the environment.  Anyone saying otherwise is a liar or smoking his own belly-button lint. (Hat tip: Max Keiser)

Allow me a few illustrations:

Giant copper nuggets and easy-access oil are gone.

Here’s how we get copper and oil now-a-days.

Looks a wee-bit harder now compared to the good old days now doesn’t it? Not only are critical raw materials getting more and more scarce, but it’s also requiring more and more energy to get them out of the ground.

So eventually it will come down this. If it takes more energy to get the stuff than you’re ever going to get out of it, why bother?

But until then…repeat after me: growth at all costs, growth at all costs, growth at all costs! We chant it over and over with the Keynesian High Priests that have become gods unto themselves and also lord over all of us sheeple.

Just one problem. Nature, the ultimate lender-of-last-resort, has a balance sheet problem: depletion.

The powers-that-be deny all this. They are a bunch of greedy cowards.

Wake up fellas. Growth is now a curse. In a finite system, exponential growth is a oxymoron.

Contrary to what they preach in Washington and Wall Street, our current economic system destroys the basic resources it depends on to survive.  They don’t get it. By making us slaves to growth, they force us to commit environmental, and by extension, economic suicide.

Shark attack!

Do you ever feel like a little fish swimming in a shark tank?

One little fish yells, “Hurry, swim over here. It’s safer.” (U.S. treasury buyers?) Then another says, “No, hurry and swim up this way.” (Dow buyers?) Then some wise fish says, “No, swim up and then down, just stay ahead of the shark.” (Traders?)  Some brave fish yell, “Screw you shark!”, right before they get munched. (Tea Party’ers?) Others say, “Hurry, get over here by the shark’s tail. Then he can’t eat you.” (Gold buyers?)

Bottom line is this: The shark is bigger, faster, and has row upon row of nasty sharp teeth (in the form of Geithner, Summers, Paulson, Bernanke, Goldman, Morgan Chase, Bush, Obama,  et. al).

The question is this: Will the shark eat us all eventually?

Or will he save a few minnows as breeding stock to ensure perpetual feeding?

Here’s how the shark stays big and mean: “By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens… There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” ~ John Maynard Keynes

Millions of little fish are getting eaten. Be that “one in a million” fish that sees the shark for exactly what it is. A ravenous killer with no goal but power and survival.

One bank to rule them all

We live in a sham democracy. The real power is with the Federal Reserve and it’s crony banks. Since 1913, the sovereignty of the United States has steadily eroded as globalist banks and multinational corporations steadily sucked power and wealth out of the republic.

Banking magnate Baron M.A. Rothschild said, “Give me control over a nations currency, and I care not who makes its laws.” As you may have noticed, it doesn’t matter if the Democrats or Republicans hold office. That’s because the real power lies with the banks, notably the Federal Reserve, and its evil spawn, the Federal Reserve Bank of New York.

Grayson, Paul, and Kucinich seem to be on to this scam (at least they still get to ask questions), but the powers-that-be successfully muzzle and marginalize them.  These are brave fellows: a tide of corruption, lies, propaganda, and money, money, money constantly floods over their efforts.

Our founding fathers warned of just this state of affairs. Thomas Jefferson reportedly said, “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 [the banks] 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.” Jefferson’s sentiments must ring particular true to those who’ve been forced from their homes by the big banks.

I fear the future of America is no longer in the people’s hands. Claim to the future is the exclusive domain of the banks, the multi-national corporations, and the military.  They’ve created such a fog of propaganda that “we the people” can’t purge the rot because we can’t see where it’s coming from.

They siphon off your tax dollars through bailouts. They run a fiat-money Ponzi scheme. They debase your currency through quantitative easing.  They rig the markets through POMO, HFT, and outright fraud.

Wall Street is Mordor.  The Federal Reserve is Mount Doom. Bernanke wears the ring of power. One bank to rule them all!

The Bank owns your debt, your money, your pension, your labor, your taxes, your government…your life.

It owns you.

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