Tag: "fraud"

Goldman and the SEC. Bigger than you might think.

This is a long one, so grab a cup of coffee…

Well, well.  With the SEC today coming out and accusing Goldman Sachs of fraud in their involvement with the toxic assets spewed from sub-prime mortgages, we have likely entered yet another phase in the great destruction of our ponzi fiat money system.  I do not wish to overstate this event, however time will tell if what is written here may be an understatement.

In July of 2008 I wrote this regarding the looming financial crisis:

“What we have coming now (by now, I mean in the next few weeks to a couple of months at best) appears to be the next major period of this financial crisis. It is becoming increasingly evident that the world’s central banks, and our Fed in particular, have not begun to solve the problems associated with the crisis. The Fed has announced that they will extend the time frame which financial institutions can “borrow” the Fed’s assets in exchange for their junk (CDO’s, CDS’s etc). This is just a confirmation that they cannot ever give this junk back to the banks. The Fed will hold it, as it is worthless. And likely someday in the not too distant future, they will monetize it when it is clear that the value is never coming back. By then they hope it will be forgotten.

Add to that, the downgrade of MBIA and AMBAC a few weeks ago (and warned about for months here that it would be a BIG deal when it happened), and the problems associated with those downgrades now making their way into the headlines. (Municiple Market “Fire in the Disco” Burns Borrowers) Now you have MBIA and Ambac beating a retreat…

Add to that the investigation of Moodys and S&P for their ratings of this toxic junk (SEC Rating Probe Reveals Conflicts in Grading Debt). What the financial crisis does not do to cause the bankruptcy of dozens of entities, litigation will.”

In a minute I will explain why I believe that statement to be accurate. But first let’s look at the day’s events. Do you think today’s announcement by the Securities and Exchange Commission and Obama’s announcement of new banking reform were coincidence?  Not a chance.  You see, Washington knows that people are plenty angry at the Fed, big banks, bailouts, and the like.  The Tea Party movement that Obama finds “amusing” actually does have their attention.  So, it is time for them to dust off the old “The public is mad at Washington.  The public thinks bankers are bad – what to do about it” playbook.

For over a century, when the public has become unhappy with the banksters they call an old reliable play, and it looks like this.  1)  Set up their own opposition within Washington, by having some politicians call the bankers “greedy,” “out of control” and in need of “regulation” or “reform.”  2). Run a dog and pony show as they “get tough” with those evil bankers.  3) Slap a few wrists, let a couple of execs “retire” or leave for “other opportunities.”  4) Fine the bank (or banks) in question a few million dollars (not that long ago a “million”  seemed like a big number).  5) Maybe even pass some toothless legislation. Presto!  Touchdown!  The public anger would subside.  Back to the business of fraud and cronyism.

Sorry – not going to happen this time.  When you call a trick play too often, it gets stuffed.  This one is going to get stuffed in a big way.   Here’s why…

1) This time is different. Unlike the past, there are a number of factors in play now that will not allow the public anger to subside with mere grand standing and political posturing.

2) The numbers are too big. We are talking about fraud in the trillions when OTC derivatives are factored in. It was stated right after the Madoff scandal broke that the ponzi scheme the big banks were running would make his operation look like a drop in the ocean if it were ever to come to light.  It now will.

3) There is a political backlash that has people organized and mobilized. And it isn’t just about the bankers, bailouts and taxes.  The distrust the public has of Washington in the aftermath of the health care debacle has caused them to begin to look into every aspect of government.  And…

4) The public is – gasp! – becoming informed on the real issues of the day. That is never good for Washington. While there is considerable noise on the internet that must be filtered through, a much larger segment of the American public is digging deeper into the issues of fraud, corruption, control, plans for a new world order, the history of fiat money, the original intent of the Constitution, and the remedy’s “we the people” were given when the Federal government gets out of control, which leads to a big one…

4) States are under growing pressure to stand up to Washington on a host of issues. This at the same time most states are on the verge of bankruptcy (the actual kind – where people know about it).  There are many a state politician (including some aggressive state Attorneys General) who will see this as a golden opportunity to 1) litigate and to go after hundreds of billions in settlements. Remember the whole tobacco company fiasco not that long ago?  Think that, only much, much larger and at a time when the states really need the money and 2) make their political careers.  Just think how popular one would be if they were responsible for exposing the banksters fraud, getting some of them thrown in jail and at the same time bringing home billions.  High motivation indeed. That leads to the REALLY big one.

5) The discovery process will expose the entire derivatives fraud. As long as these lawsuits stayed in the second tier banks and non-banking entities, the fraud could be kept from public site.  But Goldman?  If the AG’s are any good, they will bring to light the entire fraud of the off balance sheet OTC derivatives market and the unbelievable risk the banksters played with the future of this nation, knowing if they were wrong, they would be bailed out.  All that needs to happen to call “checkmate” on our fiat ponzi scheme is to bring OTC’s into the full light.  Discovery of a suit against Goldman on these very securities will do just that.

So.  There it is.  I believe what we saw today is bigger than most people think.  Will it play out this way?  I don’t know, but I doubt it.  What happened today simply set in motion the above scenario, which in itself would unfold over a few years.  I doubt we will see it fully play out – at least not in any organized manner.   The economic and social implications are too great. At some point if the economy goes completely off the tracks and/or there is significant social unrest, the process could be re-routed in any number of directions.  Few of them good in the short term.  But we still have hope.  In the aftermath of this, we WILL have a different nation.  Your actions and mine between now and then will in large part determine what that nation looks like.

The love of money….  Does anyone still doubt 1 Tim 6:10?

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