Monthly Archives: April, 2010

William Cooper Predicted 911

— April 20, 2010 — This is a short yet important video presenting Bill Cooper’s 9/11 prediction, rare 9/11 footage and audio from his book “Behold a Pale Horse” and the Illuminati agenda. Bill Cooper was one of the top conspiracy researchers, he was active on exposing the Illuminati (secret government) and most importantly the satanic agenda which is tied in with the UFO hoax.

Here is also a list of the 25 Illuminati princples/goals that Adam Weishaupt set up after the Rothschilds started financing the Illuminati conspiracy.

The following 25 goals apply to America and the rest of the world, this is pretty much a step by step manual on how the Illuminati conspiracy works, basically explains all the long term plans they had back at the Illuminati’s founding in 1776.

The 25 Illuminati goals:

1. All men are more easily inclined towards evil than good.
2. Preach Liberalism
3. Use the idea of freedom to bring about class wars
4. Any and all means should be used to reach the Illuminati Goals as they are justified.
5. The right to lie in force.
6. The power of our resources must remain invisible until the very moment it has gained the strength that no cunning or force can undermine it.
7. Avocation of mob psychology to control the masses.
8. Use alcohol, drugs, corruption and all forms of vice to systematically corrupt the youth of the nation.
9. Seize property by any means
10. Use of slogans such as equity, liberty, fraternity delivered into the mouths of the masses in psychological warfare
11. War should be directed so that the nations on both sides are placed further in debt and peace conferences conducted so that neither combatant obtains territory rights.
12. Members must use their wealth to have candidates chosen and placed in public office who will be obedient to their demands and will be used as pawns in the game by those behind the scenes. Their advisors will have been reared and trained from childhood to rule the affairs of the world.
13. Control the press.
14. Agents will come forward after fermenting traumatic situations and appear to be the saviors of the masses.
15. Create industrial depression and financial panic, unemployment, hunger, shortage of food and use this to control the masses or mob and then use the mob to wipe out all those who stand in the way.
16. Infiltrate into the secret Freemasons to use them for Illuminati purposes.
17. Expound the value of systematic deception, use high sounding slogans and phrases and advocate lavish promises to the masses even though they cannot be kept.
18. Detail plans for resolutions, discuss the art of street fighting which is necessary to bring the population into speedy subjection.
19. Use agents as advisors behind the scenes after wars and use secret diplomacy to gain control.
20. Establish huge monopolies that lean toward world government control.
21. Use high taxes and unfair competition to bring about economic ruin by control of raw materials. Organize agitation among the workers and subsidize their competitors.
22. Build up armaments with Police forces and Soldiers sufficient to protect our needs.
23. Members and leaders of the one world government would be appointed by the directors.
24. Infiltrate into all classes and levels of society and government for the purpose of fooling, bemusing and corrupting the youthful members of society by teaching them theories and principles that we know to be false.
25. National and International laws should be used to destroy civilization and enslave and control the people.

High-tech speed cameras which use satellites to track motorists on secret trial in Britain

By Luke Salkeld,  23rd April 2010

SpeedSpike One of the new SpeedSpike speed cameras which has been installed on the A374 in Cornwall

Speed cameras which communicate with each other by satellite are being secretly tested on British roads.

The hi-tech devices can follow drivers’ progress for miles to calculate whether they have broken speed limits.

Combining number plate recognition technology with global positioning satellites, they can be set up in a network to monitor tens of thousands of cars over huge areas for the smallest breach.

Known as SpeedSpike, the system uses similar methods of recognition as the cameras which enforce the congestion charge in London, and allow two cameras to ‘talk’ to each other if a vehicle appears to have travelled too far in too short a space of time.

After a covert national trial which has not been publicised until now, just days after a report showed motorists have been fined almost £1billion in speeding tickets under Labour, authorities hope the new cameras will enable them to re-create the system used on motorway contraflows.

The Home Office is currently testing them at two sites – one in Southwark in London and another on the A374 between Antony and Torpoint in Cornwall.

Details of the secret trials emerged in a House of Commons report and immediately attracted criticism.

Conservative MP Geoffrey Cox, whose Devon constituency is close to the Cornish test site, said fundamental questions had to be addressed before such an ‘alarming’ level of surveillance was extended.

SpeedSpikeThe high-tech devices are an enhanced version of the spy cameras which enforce London’s congestion charge

He said: ‘You always have to ask if it is really necessary to watch over people, to spy on them and film them.

‘We will get to a point where it becomes routine and it should never be a matter of routine that the state spies on its citizens.’

‘We will get to a point where it becomes routine and it should never be a matter of routine that the state spies on its citizens’

SpeedSpike uses automatic number plate recognition technology, which in 2008 took photos of 64 million of motorists in Britain – ten times more than the previous year.

The new cameras have been developed by PIPS Technology Ltd, an American-owned business with a base in Hampshire.

In the company’s evidence to the House of Commons Transport Committee, it boasted of ‘number plate capture in all weather conditions, 24 hours a day’ as well as pointing out the system’s low cost and ease of installation.

The company believes the cameras can be used for ‘main road enforcement for congestion reduction and speed enforcement’, can help to ‘eliminate rat-runs’ and cut speeds outside schools.

It said: ‘We have an urban test site at Salter Road in Southwark and are working in conjunction with the Metropolitan Police.

‘We also have an inter urban test site located on the A374 from Torpoint to Antony at which we are working with the Devon and Cornwall Constabulary.’

The trial is being carried out in conjunction with the police and the Devon and Cornwall Safety Camera Partnership.

Superintendent Tim Swarbrick, chairman of the partnership and head of roads policing, said it was being tested ‘on a live road system to assess how effective and accurate it is’.

He added: ‘Average speed recorders have proved to be very successful in roadworks on the major trunk roads. They have reduced injury and deaths and we would like to replicate this positive effect on more rural roads.

‘To this end we are assisting the Home Office in piloting a new version of this equipment to gauge both its accuracy and operational effectiveness.

‘The equipment is not being used for enforcement purposes, as it is not Home Office approved at this stage.’

The Home Office said it was unable to comment on the trials because of ‘commercial confidentiality’.

Last week a report showed that motorists have been hit with speeding tickets worth almost £1billion under Labour.

But receipts have fallen since police were stopped from keeping part of the money raised from speed cameras.

It suggested that the explosion in the number of cameras was used as a ‘cash cow’ and that forces no longer have an incentive to install them.

Drivers were clobbered with 1.23million tickets in 2008, of which 1.03million were issued by speed cameras, the Home Office report revealed.

The tickets raised more than £73million for the Treasury that year, or £200,000 a day.

In total, 16million tickets have been issued since 1997, raising £913million.
Source: http://www.dailymail.co.uk/

Real Reason for Grounding Commercial Aircraft-April 12 to 22nd-Largest Test of Allied Nato and Partnership Airforces Ever Conducted

U.S. Air Forces in Europe units participate in BRILLIANT ARDENT 2010stranded millions

RAMSTEIN, Germany &8212; The 22nd Fighter Squadron at Spangdhalem Air Base and 351st Air Refueling Squadron from Royal Air Force Lakenheath are partnering with air forces from the Czech Republic, France, Germany, Italy, Poland, and Turkey to participate in the large-scale NATO Response Force Air Live Germany-hosted Exercise BRILLIANT ARDENT 10 (BAT 10) running from April 12-22.

Participation by U.S. air forces in Europe units directly aligns with the command key mission areas of providing forces for global operations and building partnership.

Sixty aircraft ranging from fighters, attack aircraft, helicopters, tanker and airborne early warning aircraft are operating from air bases located in Germany, the Czech Republic, France, Poland, and the UK.

In addition to air assets, tactical employment of theater missile defense and ground based air defense assets will be extensively exercised.

The aim of BAT 10 is to train, test, integrate and validate the interoperability, readiness and capabilities of NATO Response Force (NRF) 15 nominated air forces and associated command structures by exercising NRF missions and tasks in a challenging and realistic scenario.

The exercise is also open to “non NRF” air units from NATO, as well as Partnership for Peace nations, and provides an outstanding training opportunity. The exercise scenario is based around a United Nations mandated NATO-led Crisis Response Operation in a fictitious geo-political setting, a scenario specifically designed for this exercise.

The NRF concept provides the alliance with a robust capability to meet the challenging security environment of the 21st century by providing a highly trained and agile force able to deploy at short notice wherever and whenever directed to do so by the North Atlantic Council.

The NRF comprises deployable NATO land, maritime and air forces provided by nations on a rotational basis. Training of the force is both essential and continual in order to maintain assigned forces at peak readiness. It is only through exercises, such as BAT 10, that NRF forces can be operationally certified as trained, capable and ready to fulfil the NRF mission.

Seize and Liquidate Goldman Sachs

Webster G. Tarpley
TARPLEY.net
April 27, 2010

Today’s Senate hearings, carried on CNBC, Bloomberg, and C-SPAN, represent the first major exposure of the American people to the scandalous frauds of the derivatives casino, including synthetic collateralized debt obligations (synthetic CDOs or CDO²). These are things most people have heard very little about. They begin to open up the shocking reality behind such shopworn euphemisms like “toxic assets,” “exotic instruments,” and “troubled assets.” Reactionaries in general and Republicans in particular have done everything possible to hide the role of derivatives, which must be considered the main cause of the financial panic of September 2008 which brought down Lehman Brothers, Merrill Lynch, and AIG, after felling Bear Stearns in March of the same year. The reactionary legend, repeated yesterday on the Senate floor by financier minion GOP Sen. Gregg of New Hampshire, is that the crisis was caused by poor people taking out subprime mortgages and then defaulting, bringing down the entire Anglo-American banking system and triggering the bailouts. Either that, or too much government spending was too blame.

A mass of kited derivatives blew up in September 2008

This Big Lie has come from such propaganda sources as the Limbaugh Institute of Retarded Reactionary Ranting. But the $1.5 trillion in subprime mortgages were dwarfed by the $15 trillion US residential real estate market, to say nothing of the $1.5 thousand trillion world derivatives bubble. But, starting with Bush-Goldman Sachs Treasury Secretary Henry Paulson, the talk has been of a “housing correction,” not a derivatives panic. It must be pointed out that derivatives are nothing but wagers, bets placed from a distance on securities which themselves are often not mortgages, but rather other derivatives. The bettor buying a synthetic CDO or CDO² does not own the underlying mortgages or mortgage-backed securities, any more than someone who bets on a racehorse owns part of the horse. Blankfein and others tried to portray derivatives as a service to hedgers and end-users, but it’s clear that the vast majority of derivatives involve neither hedgers nor users, but only bettors on both side of the transaction. It is in any case this mass of kited derivatives which blew up in 2008, bringing on the present world economic depression.

Goldman Sachs executives are babbling cretins

The mystique of Goldman Sachs is based in large part on their reputation as the smartest financiers on Wall Street. After today’s hearings, this mystique has permanently dissipated. The Goldman executives babbled. They sounded dumb. They stalled and stammered and went into contortions to avoid giving straight answers to simple questions. They were mendacious and evasive when they did speak. Financial powers around the world will note carefully the refusal of three out of four Goldman executives on one panel to state that they had a duty to defend the interests of their clients. Who will want to do business with such a gang? Goldman Sachs got $10 billion of taxpayer money in low-interest loans under the Bush-Paulson TARP. Part of that money went to pay for obscene bonuses for Goldman executives like the ones on display today. The argument for bonuses is that they must be paid to retain the highly talented personnel, virtual geniuses, who are indispensable for Wall Street speculative success. But these are no geniuses, they are imbeciles. No more bonuses should be paid by banks saved through public money.

Don’t buy any used cars from Lloyd Blankfein

Sleaziest of all was Goldman’s risk-monger in chief, Lloyd Blankfein, who pretended not to know that derivatives are often kept hidden off balance sheet. The morally insane Blankfein testified that his role was to provide the firm’s clients with “the risk they wanted.” Other GS witnesses represented the firm’s role as “distributing risk.” But it turned out that they were manufacturing risk through the very existence and activities of Goldman Sachs, which had the result of pyramiding the total risk of the US financial system into intergalactic space. It is time to regulate much of that unbearable risk out of existence with appropriate regulatory legislation. In the meantime, no sane person would buy a used car from Blankfein. Nor should they believe his assurance that the “recession” has ended.

But when at the end of the day Blankfein finally suggested to Sen. Tester that synthetic CDOs might be outlawed, we should accept his proposal immediately.

Today’s hearings reveal the Goldman Sachs gunslingers and whiz kids as ignorant gangsters and con artists, notable only for their ability to practice massive fraud with impudence. These sleazy mediocrities do not deserve bonuses paid for by taxpayers. Rather, it is time to shut them down and put them in the dock.

If Goldman Sachs had cared about is clients, it would have urgently warned them to unload their subprime risk by late 2006 or thereabouts. Instead, Goldman was busily increasing its clients’ risk by selling them more toxic CDOs out of its own inventory warehouse.

Goldman Sachs: bookies who stack the deck and fix the games

As the philandering Sen. Ensign pointed out, comparing Wall Street to Las Vegas is a slander on the croupiers of Las Vegas, where everyone knows or should know that the game is rigged so that the house always wins. To use the comparison introduced by Sen. McCaskill, Goldman Sachs was operating as the gambling house, or the bookie. At the same time, Goldman was betting for their own account. But much worse was the fact that Goldman was stacking the decks, loading the dice, fixing the games on which the bets were placed, and bribing the umpires.

As Ensign put it in a rare moment of lucidity, the subprime mortgage was bad. But the collapse of subprime would not have had anything like its actual destructive effect on the US economy if it had not been compounded by the mass of synthetic derivatives that were piled on top of subprime.

No national or social purpose served by Goldman Sachs and toxic derivatives bets

The broader issue raised by today’s hearing is: what human purpose is served by the existence of Goldman Sachs, which concocts toxic synthetic CDOs for the purpose of allowing speculators, who are often lied to and duped, to bet for or against them. Goldman Sachs can only be described as a speculative parasite which promotes the activities of other speculative parasites, such as the John Paulson hedge fund at the expense of the public and of its other clients. It was a crime to inject $10 billion of Treasury money into Goldman Sachs. It was another crime for the Fed to lend Goldman untold billions (just how many billions Bernanke still refuses to disclose) to keep them afloat and enable more predatory profits. These crimes must stop, and the public money must be clawed back. Most important, it is time to shut down the derivatives rackets.

Goldman got $12.5 billion from taxpayers for AIG credit default swaps

Useful questions from GOP Sen. Coburn pointed to another kind of derivative: the infamous credit default swap (CDS). These CDS are what brought down AIG, whose London hedge fund had issues $3 trillion in derivatives. When the government bailed out AIG, part of that $180 billion of taxpayer money was used for payouts to the CDS counterparties of AIG, biggest among them Goldman, which got $12.5 billion from the US taxpayer. That was 100 cents on the dollar on a mass of toxic CDS. Coburn wanted to know why Goldman got all their money back, while GM bondholders took a bath as GM went bankrupt. That was, of course, a matter of Goldman’s political clout through GS alum Henry Paulson and Obama Car Czar Steve “The Rat” Rattner, backed up by the historic preponderance of finance capital over industrial capital in this country since Andrew Carnegie sold out to JP Morgan over a century ago.

Derivatives and zombie banks: the toll

Thanks to Goldman Sachs, the other Wall Street zombie banks, and their derivatives, the financial panic of 2008 has turned into a world economic depression of unimaginable proportions. The unemployed and underemployed in the US alone are surely in excess of 20 million. Five to six million home foreclosures are already done or in the pipeline, throwing tens of millions of Americans out of their homes. World trade has been seriously impacted. The budgets of California, New York, Illinois, and many other states are in crisis, with massive layoffs of teachers and other state employees. An entire generation is being destroyed. Now, Greek bonds are trading at junk levels under the attack of speculative predators including Soros, Greenlight Capital, SAC, and the protagonists of today’s hearings – Paulson and Co and Goldman Sachs itself. The attack on Greece and the euro represents the leading edge of the second wave of the depression, which is now arriving in much the same way that the second wave of the 1930s depression was unleashed by the Vienna Kreditanstalt bankruptcy in May of 1931, about 79 years ago and just a year and a half into that depression.

The goal of the Republicans is to portray themselves as stern judges of Wall Street, even as they line up in a unanimous phalanx to protect the finance jackals from any meaningful regulation whatsoever — as seen in yesterday’s vote to block cloture on derivatives re-regulation and reform. The goal of the Democrats is to expose the sociopathic evil of Goldman Sachs and the rest of Wall Street while preening themselves as defenders of the public interest, without however banning credit default swaps, banning synthetic CDOs, and imposing a Wall Street sales tax on all remaining derivatives and asset transactions.

To this degree, today’s hearings are being conducted in bad faith by both major parties. However, the dynamic of the resulting spectacle has the result of educating and mobilizing public opinion against the predatory practices which are the essence of Wall Street, even a year and a half after the banking panic of September 2008 and the monster bailout of zombie banks which soon followed. What is required is a new edition of the anti-banker sentiment set off by the Senate Banking Committee hearings conducted from January 1933 to May 1934 by committee counsel Ferdinand Pecora, which unmasked the corruption of Wall Street. Persons of good will need to get active now to push this process as far as possible while these social dynamics are working. It is time to hit the zombie banks, the hedge funds, and their derivatives as hard as possible, before the second wave of the depression hits. The program necessary to fight the depression and break the strangle-hold of Wall Street on the US economy and political system is given on my web site.

Mitch McConnell on the bailout: “Harry, I think we need to do this, we should try to do this, and we can do this.”

During a break the senators filed out, and the GOP reactionary lockstep once again blocked cloture for a final debate on the Wall Street reform bill, weak as it is. Many activists of the Tea Party naively believe that they have been fighting for a year and a half that they have been fighting to take back the Republican Party. If that is what they believe, today’s second cloture vote proves that they have gotten nowhere in their efforts. Despite their charades, the GOP are the bodyguards of the Wall Street predators. Tea baggers who think they can break the Wall Street grip on the Republicans are pathetic dupes, and they need to wake up, pronto.

When Paulson went to the leaders of Congress to demand a $700 billion bailout for Goldman and his Wall Street cronies, GOP Senate majority leader Mitch McConnell was “deeply frightened” by the apocalyptic briefing delivered by Paulson and Bernanke. When Democratic Majority Leader Harry Reid started talking about how difficult it would be to get so much money in a hurry, McConnell urged an immediate bailout, saying: “Harry, I think we need to do this, we should try to do this, and we can do this.” (Andrew Ross Sorkin, Too Big to Fail [New York: Viking, 2009], p. 442) The GOP was the original party of the bailout, and they have not repented, as best seen through the continuance of McConnell, one of the key midwives of the bailout, as Republican Senate Majority Leader. This is the same McConnell who went to Wall Street recently to meet with zombie bankers and hedge fund hyenas, pledging to block derivatives reforms in exchange for big bucks contributed to the GOP’s campaign coffers. Tea baggers who think the GOP has changed or is moving to their side are sadly deluded.

Today, the market fetishism of the crackpot Austrian school has taken a severe blow. Now that Blankfein‘s public image has been soiled by Goldman’s scurrilous and scatological emails, the time is ripe for the radical reform of derivatives and the zombie banks. This is a matter of national survival.

Now that Goldman Sachs is masquerading as a bank holding company, it is subject to FDIC rules. If Goldman’s derivative hoard is marked to market, it is bankrupt. The FDIC should therefore seize Goldman and liquidate it under chapter 7 of the US Code. Sheila Bair should not wait for Friday.

Frauds And Scandals Follow The Collapse Of The Financial System

The collapse of the financial system is under way, a giant debt that will never be repaid, deliberate destruction of the economy, bailouts a part of the manipulation of the markets, More creative forms of destruction for the economy, Wall street a criminal enterprise, Goldman CEO visits the White House, often, another giant Ponzi in Florida…

As the world faces an ongoing sovereign debt debacle we see an attempt to defuse an oncoming scandal involving Goldman Sachs, Paulson and perhaps others.

The collapse of the fiat money system is underway and each day picks up momentum. The only question is how long it can survive? In the interim we are faced with inflation and perhaps hyperinflation as the privately owned Federal Reserve and other central banks add stimulus and money and credit into their financial systems.

America’s system of finance and economy has been deliberately destroyed via regulation, illegal immigration and free trade, globalization, offshoring and outsourcing. We wrote about these issues and tactics as long ago as 1967. Taxes on both individuals and corporations are still onerous, the exception being the rich who pay far less than their fair share. By the way taxes will increase in the future and government may in the future attempt to take away your retirement plans and replace them with guaranteed annuities. We ask how can a bankrupt government guarantee anything? America and the rest of the world are realizing that you cannot live beyond your means indefinitely. The resultant poverty that eventually results is accompanied by the theft of wealth by inflation, subtly and secretly.

We have witnessed over the past few years a long line of frauds that usually accompany the collapse of a system. They are accompanied by government malfeasance and the arrogance of those who defraud the system with impunity. How can any nation survive if their currency and their bonds are worthless?

Someone’s loss is someone else’s gain and in this turmoil you can do two things. One is to protect your assets and the other is to capitalize on your knowledge. Do not allow the elitists to take your hard earned savings. It is our belief that 60% of sovereign debt will never be repaid.

The government is injecting a minimum of $1.5 trillion into the economy each year, as the Fed is adding at least $1 trillion. We are facing an end to stimulus and further Fed injections. If that happens it will thrust the US economy into a great dark pit a year from now. Then the insolvency of banking, Wall Street and government will become very apparent. What government has done is lie about everything, especially the amount of money they have thrust into the economy, via bailouts of the entire financial sphere and the manipulation of markets.

If they had not done what they did the system would have collapsed long ago. What they have done has only delayed the inevitable. As we look back 50 years all we have seen is one crisis after another. There has never really been a meaningful recovery. The result is that Keynesian economics has had American economy on a roller coaster going nowhere. We have wasted opportunities and have destroyed our financial and economic structure to provide for the enrichment of the elitists who from behind the scenes control our economy and the world economy. G-20 debt is staggering, never mind US debt and worse yet, it is unpayable. The so-called recovery we are having is a sad joke. We have just had an interlude in an inflationary depression. The next phase is higher taxation and even more government control. Need we remind you that fascism is government by regulation and this is what we have in America today. Its evolution is a subtle, secret, strangling process. If only people would read the history of Europe during the late 1920s and throughout the 1930s and 40s, you would truly understand what is in process. You must remember Hitler was created at Versailles. Illuminists in the US, UK and across Europe financed both Hitler and Mussolini. Both did not have a clue they were being set up. This is the same thing that is happening in America today and in other countries as well.

We face one round after another of creative destruction. That is why we have real unemployment of 22-1/8%, almost as bad as during the 1930s. Banks are only selectively lending, so as a result the economy cannot grow. Inflation is 8%; wages are static, so buying power has been crippled. This predicament should be called corporatist fascism or socialism for the elitists and as a result 92% of small business polled said they see no recovery for 14 to 18 months. How can those who hire 80% of workers create new jobs – they cannot and won’t. That means there can be no sustained recovery.

This leads us to the frauds on Wall Street and banking. We have pointed out for some time that Wall Street and banking had turned into a criminal enterprise. They always skated down the edge, but nothing like what we have seen over the past 20 years. Having been in the brokerage industry for 28 years and around it for 50 years we have been in a position to observe it closely. Today it’s massively rife with criminality. The exposure of Lehman’s crimes in hearings has been unprecedented. We wonder how many other firms did the same thing and their actions were covered up by the Fed and the SEC, as well as the CFTC? They are still underestimating debt levels by 40 to 50 percent, which means their focus reports are useless. The spirit of honesty and integrity still doesn’t exist. They are essentially keeping two sets of books and that makes their financial statements useless and fraudulent.

That doesn’t bother the SEC, the BIS, the FASB, the Treasury or the Fed; they supervise the lawbreaking. Debt levels are massively understated by keeping two sets of books and by marking-to-model, fantasy, not to market. All of this is a result of the termination of the Glass Steagal Act. It is all fraud, even if the government sanctions it. They are all acting in concert to screw the investor and the public. These people are all criminals. The excuse is that they are too big to fail. It is all fraud no matter which way you cut it. This is a criminal syndicate that should legally be out of business – bankrupt. They are all being bailed out, but we do not see the public being bailed out. The bailout of banking, Wall Street and insurance is still in process and there is no end in sight. There are two sets of laws. One for the Illuminists/elitist and another for us. Congress won’t do anything about it because most of them have been paid off. That is what campaign contributions and lobbying are all about. We espoused these views in university almost 60 years ago, and the only reason our views were tolerated was that we had two uncles who were professors at the university.

Taxes will rise substantially this year and next year because your representatives and senators know the government is broke. Among other things the medical reform bill is a tax bill as well.

Government is the problem but they are really useful idiots. The real power lies with the Illuminist behind the scenes. The financial sector is broke and it is unfixable. They know that and they are trying to stretch out the problem as far as possible to pick the right date to pull the deflationary plug.

If all this weren’t bad enough the Dodd bill in the Senate would create a permanent bailout mechanism that would create more risky behavior that would lead to perpetual bailouts for the financial industries. This is not financial reform, it is more corporatist fascism. To show you how bought and paid for Senate Banking Committee members are, the bill was voted out in 22 minutes with no amendments and no debate allowed. That is not democracy in action. The bill will now be rushed to the floor and passed.

The bill would also create a $50 billion bailout slush fund controlled by the FDIC and a new FDIC tax would be implemented on banks, which, of course, would be passed onto the public in higher banking costs.

The bill would also bail out creditors of companies. The slush fund would cover that as well. They call this riskless investment for corporate America and any bills would be picked up by the banks and passed on to Americans. We will then have hundreds or thousands of AIGs and GM’s. You ask yourself where does this all end? Read the history of the late1920s and into the 1930s of Italy and Germany and you will find out.

As the Senate and the House do the work of the bankers the bond market is in the process of sinking as yields rise. Higher rates, which we predicted last November, will become reality by the end of the year. A move by the US 10-year note from 3.20% to 4.5% or 5% will be the kiss of death for the mortgage industry. The 10-year yields 3.79% and the 30-year fixed rate mortgage is 5.07%. If 10’s go to 4.5%, mortgages will rise to 5.80% and a 5% ten-year note would work out to a 6.3% 30-year.

An increase in rates from 5.07% to 6.07% would add 19% to the total cost of a home, which means that any long-term recovery in housing is out of the question and that residential values would have to fall further as fewer and fewer people could qualify for loans. In fact, all loans would become more expensive, such as for business, credit cards, auto loans, etc. That 1% will increase debt service for the government by about $150 billion a year. This frankly presents the best of all worlds. If foreigners, such as the Chinese, Japanese or Russians became aggressive US bond sellers rates would climb considerably higher, inflicting even more damage to the economy and to US debt.

Most of you do not remember but mortgage rates hit about 18% in 1981, as official inflation hit 14-1/2%. Gold peaked out at $850, some six months earlier. On today’s mortgages that would triple payments on new mortgages and resets. As happened in 1981 the real estate market came to a standstill. Such an event would come when existing household debt is considerably higher. Debt today is already near 90% of GDP. Government debt is colossal, growing every minute and it is unpayable.

The bond market is going down and yields are going up and that is not good. The rise in interest rates has historically brought about higher gold and silver prices, because higher rates bring higher inflation. As we have said over and over again the only safe and profitable place to be is in gold and silver related assets. The storm is now just getting underway.

The MBA Mortgage Purchase Applications Index is 10.1%. The refi index was up to 15.8% versus 9.0% the prior week. The 30-year fixed rate mortgage was 5.04% and the 15’s were 4.34%.

The Treasury will sell $128 billion in notes next week, which is unprecedented. Talk about crowding out.

Governments worldwide will probably issue $4.5 trillion in debt this year, which is triple the 5-year average for industrial nations. Forty-five percent of that debt will be issued by the US.

We are told Russia and China are selling Treasuries and buying gold.

The US commercial paper market rose $1.5 billion to about $1.076 trillion this week.

Our sources within the banking industry tell us that 3-5 bank, First Source, Horizon and several others are in trouble. These are banks that refused TARP money. They have been told to expect an audit and that no further support can ever be expected from the Fed again. Auditors have already hit some of these banks and threatened them. One bank was told they were under capitalized and they were not. They arranged an additional line of credit with another bank and the Fed backed off. This criminal extortion is part of the move to eventual bank nationalization. The industry is hanging by a thread, as huge interest rate increases loom. The system lives on virtual money and that can only end up in real trouble. Again, do not hold CDs, annuities or cash value life policies, especially large balances. Not only banks will go under, but also so will insurance companies.

McClatchy: While Goldman Sachs’ lawyers negotiated with the Securities and Exchange Commission over potentially explosive civil fraud charges, Goldman’s chief executive visited the White House at least four times.

White House logs show that Chief Executive Lloyd Blankfein traveled to Washington for at least two events with President Barack Obama, whose 2008 presidential campaign received $994,795 in donations from Goldman’s political action committee, its employees and their relatives. He also met twice with Obama’s top economic adviser, Larry Summers.

Lawrence Jacobs, a University of Minnesota political scientist, said that “almost everything that the White House has done has been haunted by the personnel and the money of Goldman. as well as the suspicion that the White House, particularly early on, was pulling its punches out of deference to Goldman and its war chest.

“There’s now kind of a magnifying glass on the administration for any sign of interference or conversations with the regulators and the judiciary,” Jacobs said.

http://www.mcclatchydc.com/2010/04/21/92637/goldmans-connections-to-white.html

Goldman Sachs was both an underwriter and an investor in Lloyds Banking Group’s vast refinancing deal late last year, the FT has learned, highlighting the potential conflicts of interest at the heart of the investment bank’s business model.

According to four people involved in the capital raising, Goldman – a dealer manager on the debt portion of the £23.5bn transaction – demanded last-minute changes to the structure of a deal it was underwriting. This had the effect of benefiting its position as a bond investor.

A Goldman director tipped off Galleon’s Raj Rajaratnam about a $5 billion investment in Goldman by Berkshire Hathaway before a public announcement.

The revelation marks a significant turn in the government’s case against Rajaratnam, the hedge-fund titan at the center of the largest insider-trading case in a generation.

After the SEC tagged Goldman, we opined that Bubblevision, or for that many virtually all pundits and media types, did not mention Buffett’s association with Goldman or how Buffett demanded and got heads after the Salomon-Treasury Auction rigging scandal. Maybe now someone will ask Warren about Goldie.

Buffett spokesman, Thomas Murphy surfaced last night, to say Buffett has ‘great confidence’ in Goldie.

U.S. mortgage applications bounced from three-month lows last week as potential buyers locked in lower borrowing costs before the federal tax credit expires, the Mortgage Bankers Association said on Wednesday.

Thirty-year mortgage rates dropped to hover around 5 percent, stoking home loan demand after applications slid for two straight weeks.

Refinancing picked up by 15.8 percent to represent 60 percent of all applications last week. Demand for loans to buy a home increased 10.1 percent to send the industry group’s total applications index up 13.6 percent on a seasonally adjusted basis.

“Purchase applications continued to increase coming out of the Easter holiday, as we approach the end of the homebuyer tax credit, and are up modestly over last month,” said Michael Fratantoni, MBA’s vice president of research and economics.

Falling Treasury yields, used as a peg for mortgage rates, helped reduce the average 30-year loan rate by 0.13 percentage point to
5.04 percent.

The rate was up to 5.31 percent two weeks earlier, the highest since August 2009, and remains above the record low of 4.61
percent set in March of last year.

Harsh winter weather sapped housing demand in the first months of the year. The initial wave of the homebuyer tax credit, extended and broadened late last year, were seen having robbed some of this year’s demand.

But some signs have emerged that buyers are surfacing to lock in the credit while they can. If they qualify for the incentives of up to $8,000, they need to have home contracts signed by the end of April and close loans by June 30.

Permits to build houses, for example, in April shot up to the highest level since October 2008.

At best, though, housing is widely seen hovering around current weak levels at least through the year. The market still needs to work through a record stockpile of foreclosed properties, which RealtyTrac forecasts could drag into 2013.

Jack Pritchard, Charlotte, North Carolina-based co-founder of Refinance.com, sees rising mortgage rates later this year and the expiration of the tax credits cutting into home sales and refinancing.

“The spring housing season, even with the tax credit, would be considered stable — but stable at the bottom,” he said.

“You’ve got a consumer trying to time the ultimate bottom in real estate prices and you still have extremely tight credit standards for consumers to qualify,” Pritchard added.

FOX Business Network has expanded its quest for documents from the Federal Reserve in order to shed light on which financial firms borrowed funds during the financial crisis.

The network filed its new suit this afternoon in New York requesting documents from the Federal Reserve Board of Governors that will name each financial institution that borrowed from the various emergency lending facilities from November 1, 2008 through March 1, 2010. FOX Business originally sued the Fed for those documents but for a time period that ended on November 1, 2008.

The network scored a major victory in the original suit when the second circuit court of appeals ruled that the Fed had to turn over the requested documents. The Federal Reserve is expected to ask the court to reconsider the case and has said it is willing to take the case to the Supreme Court if necessary to protect the identity of the firms which received billions in taxpayer-backed guarantees.

The new suit expands the date through 2010 to learn which firms continued to seek emergency lending after the initial crisis had passed. FOX Business is also attempting to learn how much each individual institution received.

The U.S. Federal Reserve said on Wednesday it transferred a record $47.4 billion to the U.S. Treasury in 2009 as a result of its programs to help the economy and financial firms during the financial crisis.

The increase in income was primarily due to interest earnings on mortgage-backed securities issued by government supported mortgage finance agencies, the Fed said.

Some of the data in the Fed’s 2009 annual financial statement revises estimates released in January.

The 12 Fed regional banks are required to transfer their profits to the Treasury after paying dividends to member banks and retaining some of their surplus.

Fed officials said the U.S. central bank’s payment to the Treasury in 2009 was a $15.7 billion, or 50 percent, increase over 2008. The previous record was $34.6 billion in 2007, and the pre-crisis level was around $20 billion, Fed officials told reporters.

The Fed took unprecedented actions to prop up the economy during the storm but has been under fire from lawmakers on Capitol Hill over financial firm bailouts and regulatory lapses.

The credit risk on the Fed’s balance sheet is down sharply as its loans have decreased and Treasury and government-sponsored mortgage finance agency securities make up a larger share of the central bank’s assets, a Fed official said.

Financial reforms are a top priority for President Barack Obama, and news that the U.S. central bank has been profitable for taxpayers may strengthen the Fed’s hand as lawmakers decide whether to enhance its powers over banks.

A Senate committee on Wednesday approved a bill aimed at reforming the derivatives market, moving the Senate one step closer to passing sweeping regulation over the $450 trillion derivatives market.

The Senate Agriculture Committee approved the legislation by a vote of 13 to 8, with one Republican, Charles Grassley, breaking ranks to vote with Democrats.

The measure, part of the Democrats push to crack down on Wall Street, is expected to be merged into a broader bill from the Senate Banking Committee. A full Senate debate is expected by next week.

Its passage through the committee was a first test of how strongly Democrats are willing to push reform and how easily Republicans may be prepared to play ball.

Regulators charged a Miami Beach, Florida, philanthropist with fraud for allegedly running a $900 million Ponzi scheme, the Securities and Exchange Commission said on Wednesday.

Nevin K. Shapiro, a major donor to the University of Miami’s sports program, sold investors securities that he claimed would fund his Capitol Investments firm’s grocery business and touted returns as high as 26 percent annually, the SEC said.

Instead, Shapiro repurposed funds, making extravagant donations to charities and running a Ponzi scheme where he used funds from new investors to pay the principal and interest to earlier investors, the SEC said.

The 41-year-old Shapiro surrendered to authorities Wednesday morning in New Jersey, his lawyer said. According to the SEC, Shapiro used at least $38 million of investor funds to finance other business activities and a lavish lifestyle, including a $5 million home in Miami Beach, expensive clothes and season tickets to sporting events.

To raise funds, Shapiro attracted investors through word of mouth from friends and business associates, and reassured investors by boasting of his wealth, the SEC said.

When investors questioned Shapiro, he showed them fabricated invoices and purchase orders for nonexistent sales, the SEC said.

Existing home sales increased by 6.8%, good for a total of 5.35 million units, in March, thereby reversing three months of declining sales. This growth beats market forecasts of a more modest 5.6% increase. ??In related data, the US housing price index fell 0.2% in February. This marks the third consecutive month of falling home prices.

The Producer Price Index for the US grew 0.7% in March, beating forecasts of a 0.5% rise over February’s 0.6% decline.

Year-over-year, the PPI increased 6.0% in March compared to February’s annual 4.4% boost. This growth is in line with expectations. ??The PPI excluding food and energy prices rose an expected 0.1% in March, thereby matching February’s rate. ??Year-over-year, the PPI excluding food and energy increased as forecast by 0.9% in March, slightly down from February’s 1.0% growth.

February Housing Price Index declines 0.2% MoM in March vs a 0.6% decline in February

The number of Americans filing claims for unemployment benefits fell last week as the rebounding economy prompted companies to make fewer job cuts.

Initial jobless applications dropped by 24,000 to 456,000 in the week ended April 17, the Labor Department said today in Washington. The number of people receiving unemployment insurance and those getting extended benefits also fell.

Employers enjoying improved sales and profits may be gaining confidence in the economy and retaining staff. A transition from less firing to consistent job growth will ensure the recovery from the deepest recession since the 1930s is sustained.

“The state of the job market is firming,” said John Herrmann, a senior fixed-income strategist at State Street Global Markets LLC in Boston, who forecast claims would fall to 458,000. Companies are “actually retaining headcount and growing.”

Economists anticipated claims would fall to 450,000 from a previously reported 484,000 the prior week, according to the median of 47 projections in a Bloomberg News survey. Estimates ranged from 430,000 to 480,000.

Sales of U.S. previously owned homes rose in March for the first time in four months as buyers took advantage of a government tax credit and the weather improved. Purchases climbed 6.8 percent to a 5.35 million annual rate, exceeding the median forecast of economists surveyed by Bloomberg News, data from the National Association of Realtors showed today in Washington. New applications for jobless benefits declined and producer prices rose, Labor Department reports showed.

A homebuyer incentive worth as much as $8,000 for contracts closed by the end of June may provide a short-term boost to the industry that helped trigger the worst recession since the 1930s. Housing’s outlook for the second half of the year will be linked to a rebound in hiring, indicating a recovery will probably take years to develop as foreclosures climb.

Bob Chapman on The International Forecaster.com
Posted: April 24 2010

Fight the Derivatives Cancer with a Wall Street Sales Tax, Plus Bans on Hedge Funds, Credit Default Swaps, and Synthetic CDOs

Webster Tarpley.net, April 24, 2010

The Obama administration has been posturing this week about the life and death issue of Wall Street reform. Obama’s predicament is that of a Wall Street puppet who has been put into the White House thanks among other things to almost $1 million of contributions from the infamous Goldman Sachs – but who now needs to make a show of fighting his own Wall Street patrons for political reasons. Of course, Obama’s health-care reform was largely a bailout of insurance companies, which are themselves a key part of Wall Street. But Obama is now pretending to quarrel with Wall Street to shore up his waning credibility, partly because many House Democrats are desperately seeking anti-banker, economic populist street creds in order to avoid defeat in November. So far, the results have been largely feckless and inadequate.

The urgent problem raised by all this is the $1.5 quadrillion derivatives bubble. The financial crisis which struck the United States and the world in September and October 2008 was in fact a world a derivatives panic. This panic marked the first phase of a world economic depression caused by derivatives speculation. The second phase of this depression, which is now beginning, can also be attributed in large part to derivatives, since derivatives are the main tool being used in the speculative attacks on Greece, Spain, Portugal, Italy, Ireland, and other nations, building up towards a chaotic collapse of the euro.

Derivatives are the Cause of the World Depression of Our Time

Far from being some arcane or marginal activity, financial derivatives have come to represent the principal business of the financier oligarchy in Wall Street, the City of London, Frankfurt, and other money centers. A concerted effort has been made by politicians and the news media to hide and camouflage the central role played by derivative speculation in the economic disasters of recent years. Journalists and public relations types have done everything possible to avoid even mentioning derivatives, coining phrases like “toxic assets,” “exotic instruments,” and – most notably – “troubled assets,” as in Troubled Assets Relief Program or TARP, aka the monstrous $800 billion bailout of Wall Street speculators which was enacted in October 2008 with the support of Bush, Henry Paulson, John McCain, Sarah Palin, and the Obama Democrats. Continue reading Fight the Derivatives Cancer with a Wall Street Sales Tax, Plus Bans on Hedge Funds, Credit Default Swaps, and Synthetic CDOs

EU Flights Grounded For Purely Political Reasons

By: David Noakes

Iceland volcanic ash cloud: a bogus excuse

David Noakes, author of http://eutruth.org.uk. Exposing what the press conceals

Pilots and airline Directors are scratching their heads as to why EU airspace has been closed for no good reason.  Airline CEOs have been flying around in their 747’s wondering why there is absolutely no problem, and why the EU government doesn’t listen when they tell them the air’s lovely up here. Meanwhile, British Airways in particular is losing a million pounds an hour, and it cost the UK economy 1.5 billion in the first 4 days.

Aviation experts wonder why all flights are banned, when the ash cloud is all above 20,000 feet, superbly mapped, and pilots can fly around it – with far better information than they have to fly around thunderstorms every day.  So in the worst case a trip across the pond to the USA might involve staying below 20,000 ft for the first 500 miles, then climbing to 37,000 ft as usual.

Students of the Bilderbergers or the NWO, however, know exactly what it is.  It is NWO/EU military manoevres to see if they could shut down the airspace for 5 days as they did in the USA, when they used 9/11 as the excuse, adding a year to the recession there.

Closing airspace is deliberate sabotage of our economy by our corrupt governments, who are public enemy No.1.  It will take a little time for the military reasons to become obvious, but it has got the airlines used to accepting orders from the EU dictatorship, and the NWO now knows how many weeks it must shut our airspace for to destroy our economies completely, and has tested and proved it has the power to do so.

This test was necessary, because under our written British Constitution, the laws and edicts of the EU are illegal, so it needed to check that its illegal edicts were obeyed throughout the EU.

(And if you believe the British Constitution is unwrittten, you have fallen for a successful EU Frankfurt School subversion technique. See http://eutruth.org.uk/subversion.htm )

See this link for the confused bewilderment of airline CEO’s:

http://www.google.com/hostednews/ap/article/ALeqM5jh7lQ-qBxQMPzPd3Iap7_s3YDBfQD9F60IQO0

Keiser Report №35: Markets! Finance! Scandal!

This time Max Keiser and co-host Stacy Herbert examine the qualities of a banana republic and also look at the scandals of Lehman’s alter ego; Magnetar’s bin…<

Vodpod videos no longer available.

Hollie Greig – The Big Picture

Vodpod videos no longer available.

fknnewz – April 02, 2010

Satanists ? or Monkeys with dicks for brains? Human trafficking for sex is big business but its not elite satan worshipers getting a blow job for 50c in a Vietnamese flop house..is it. Its husband fathers sons and their petty mortal desires.

2010 Bilderberg Meeting Location Exposed!

BILDERBERG FOUND!
By James P. Tucker, Jr.

The Bilderberg Group

The Bilderberg group will conduct its annual meeting June 3-6 in Sitges, Spain (a small, exclusive resort town about 20 miles from Barcelona) behind a wall of armed guards who will seal off the resort in a futile attempt to keep the event secret.

Bilderberg’s meeting will follow that of its brother group, the Trilateral Commission, which will gather at the Four Seasons Resort in Dublin, Ireland May 6-10. Leaders of Bilderberg also attend the Trilateralists’ meeting to map their common agenda. About 300 attend Trilateral Commission meetings, which are conducted behind sealed-off, guarded floors of their hotel. About 100 will attend Bilderberg, which seals off the entire resort behind platoons of uniformed police and private security.

Bilderberg hopes to keep the global recession going for at least a year, according to an international financial consultant who deals personally with many of them. This is because, among several reasons, Bilderberg still hopes to create a global “treasury department” under the United Nations. Bilderberg first undertook this mission at its meeting last spring in Greece, but the effort was blocked by nationalists in Europe and the United States. “Nationalists” (a dirty word in Bilderberg) objected to surrendering sovereignty to the UN.

AFP’s source pointed to the words of French President Nicolas Sarkozy in a March 29 speech at notoriously left-wing Columbia University, where he said, “We should invent a new global monetary order.”

He was clearly referring to the recently proposed world “treasury department.”

Bilderberg’s ultimate goal remains unchanged: Turn the UN into a world government with “nation-states” becoming merely geographic references. The European Union is to become a single political entity, followed by the “American Union” and, finally, the “Asian-Pacific Union.” The “American Union” is to include the entire Western Hemisphere, including Cuba and other offshore islands.

Like the EU, the “AU” will have a legislature, executive commission and head of state which can impose laws on member nations. There is to be an EU-like common currency, removing each member state’s symbol of sovereignty. The “Asian-Pacific Union,” or “APU,” is to follow a similar path.

But growing public awareness of the evil agenda of Bilderberg and the Trilateralists has emerged as a significant barrier. For decades, until 1975 when The Spotlight emerged, the blackout was 100 percent complete worldwide. (The Spotlight is AFP’s lineal ancestor.)

Today, in Europe, major metropolitan newspapers and broadcast outlets give both groups heavy, front-page attention. In the United States, independent newspapers and broadcast stations give Bilderberg extensive coverage.

But the major newspapers and network broadcasters maintain a complete blackout in the United States. That’s because their executives have attended these meetings on lifetime promises of secrecy. The hypocritical owners of The Washington Post have attended since 1954. The Post’s chairman, Donald Graham, and associate editor, Jimmy Lee Hoagland, have attended each meeting for years.

But as public awareness grows, so does patriotic resistance. There is strong resistance throughout Europe to increasing the powers of the EU at the cost of national sovereignty. In the United States, there is growing resistance to the proposed North American Free Trade Agreement, which would eliminate borders between the United States, Mexico and Canada. NAFTA is to expand, under Bilderberg-Trilateral plans, to include the entire hemisphere and evolve into the “American Union.”

In the 1990s, Bilderberg was confident that the “American Union” would be established by the year 2000. A decade later, they are still fighting—and losing— the battle.

AFP correspondent James P. Tucker Jr. is a veteran journalist who spent many years as a member of the “elite” media in Washington. Since 1975 he has won widespread recognition, here and abroad, for his pursuit of on-the-scene stories reporting the intrigues of global power blocs such as the Bilderberg Group.

Posted on 09 April 2010. Tags: , , , ,

Source: Jim Tucker at We Are Change

Greek Curve Goes Apeshit: Bloomberg Reports 3 Month Bid At 21.3%

If this information is correct, it is all over. Bloomberg calculates the yield on the Greek 3 Month as determined by the bid, or where investors are willing to buy it, based on BVAL sources at 21.3%. In all honesty the bid/offer market in the 3 Month are all over the place. HDAT gives it as 99.650×99.840, BVAL is at 99.470×99.773. The HDAT bid implies a yield of 14.049%, which is still game over for Greece.

Another way to see the carnage is the Greek CDS curve: 3M-5Y is at -185 bps!

Why is all of this relevant? Because as Market News confirms as we initially noted, Greece plans to sell €600 million in 6 Month and €600 million in 12 Month Bills on April 13. Sorry, if the 3M is anywhere close to 14% bid (let alone 21%), this is not happening.

In addition, the country faces E8.22 billion in bond redemptions on Apr 20, E1.585 billion in T-bill redemptions on Apr 23, a E2.278 billion coupon payment on May 10 and E8.086 billion in bond redemption on May 19. The PDMA debt chief Petros Christodoulou has already hinted that April’s funding needs are taken care of, but that the country needs to raise E11.6 billion by May.

Also, apparently the American syndication is not going too hot. Greece has now moved on to the bubble of last resort: Asia.

Christodoulou added that Greece will soon do a roadshow in Asia and the U.S. Soon after that, at the end of April or the very beginning of May, “we could be in the market with a global bond deal in dollars,” he said.

Tyler Durden's picture

Submitted by Tyler Durden on 04/09/2010 07:47 -0500

The No-Pay Movement

By MATT TAIBBI
http://trueslant.com/matttaibbi/2010/04/06/the-no-pay-movement/

Often also called an activist, Mr. Keiser created quite a stir a few days ago when, on an Al Jazeera program, he claimed that Greece, for the past decade, has fallen victim to the “economic terrorists” of the Wall Street banking systems and the IMF. In the interview which followed, he claimed “if the Greeks want to be protected from the IMF, then they should nationalize their banks thus establishing government owned institutions so as to revive the banking system”, while at the same time “ceasing to pay back the loans which were issued illegally” via “cooking the books” of the Greek economy by Goldman Sachs. He proposed the expulsion from the country of American banks as well as the IMF. The consequence will be “two or three years of heavy recession”, during which time Greece will be able “to rebuild its economy”, ensuring its economic independence.

via The IMF Flag Reads: ECONOMIC SLAVERY.

Since I started covering the financial crisis a year and a half ago, I’ve been getting a lot of letters that say things like, “This all sucks. But what should we do about it? If you don’t have any answers, what’s the point?”

I don’t want to get into this too much since I have more on this coming out in my book, but I would like to point out some of the answers other people are providing to this question. One is this above plan from the hilariously blunt Max Keiser, whose “Goldman Sachs are scum” interview was one of the comedy highlights of 2009.

Keiser in an interview basically says that the debts countries like Greece owe to banks like Goldman, Sachs for loans and rate swaps are illegitimate since they were criminal deals, made with the intent to cook Greece’s books and defraud the citizens of Greece out of their tax money. He therefore proposes that Greece should simply stiff Goldman for those obligations and that, furthermore, American banks should be expelled from the country while the government temporarily nationalizes its banking system and establishes its independence from the financial services industry.

I’m not sure I know enough about what the consequences of a plan like that would be to say whether this is feasible or not. But I think Keiser’s idea does underline an important point about the situation, which is that as powerful as these Wall Street banks may seem, they are also exquisitely vulnerable. Right now virtually all of them are dependent upon the government keeping accounting standards lax enough for all of them to claim to be functional businesses. It is generally accepted that if the major banks on Wall Street were forced to mark all of their assets to market tomorrow, they would all be either insolvent or close to it.

Thus their “healthy” financial status is already illusory. So imagine what would happen if large numbers of those dubious loans on their balance sheets that they have marked down as “performing” were suddenly pushed ahead of time into the default column. What if Greece, and the Pennsylvania school system, and Jefferson County, Alabama, and the countless other municipalities and states that are wrapped up in these corrupt deals just decided to declare their debts illegitimate and back out?

I think it’s an interesting question and would like to hear what knowledgeable people in the field have to say about it. But the big picture, to me, is that these companies are almost totally dependent not only upon the continued good faith of aggrieved debtors, but upon the government recognizing the (sometimes fraudulent) loans made to those debtors as fully performing. I’m waiting for some canny politician to use those two facts as a hammer to make them all get in line. Thoughts?

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