Is The U.S. Economy Being Tanked By Mistake or By Intent? by Bill Sardi

Is The U.S. Economy Being Tanked By Mistake or By Intent?

by Bill Sardi

Recently by Bill Sardi: Who Is Left Holding the Bag on US Debt?

The government wants Americans to believe the greatest economic collapse in history was the result of ineptness and mistakes yet still have confidence in their financial institutions.

Should American bankers be let off the hook because they self-declare, before an investigational panel, that the failure of their newly invented risk swaps and other highly leveraged investment schemes was simply due to “mistakes”? Not malfeasance – just every-day mistakes? Bankers just fell asleep at the helm at a critical juncture in American history. Is that what we are being led to believe?

Oh well, it’s just 18 million American homes that now lay empty in the wake of unprecedented foreclosures, and the bankers have collected obscene bonuses for reckless lending of their depositors’ money. It’s like the captain and crew of a ship saying, not to worry, twenty-percent of the passengers were lost overboard, but this was due to unavoidable mistakes, and then being rewarded with bonuses when they reach port.


FULL ARTICLE

Goldman Sachs – THE WORLD’S BIGGEST PONZI SCHEME

Taken from a comment by “Calltoaccount”, which was taken from Institutional Risk Analytics, blogged by http://www.cjr.org

Res Ipsa Loquitor: Here’s the real story that’s been conveniently swept under the rug.

From Reuters: QUESTION: Did Goldman do any due diligence on AIG before buying credit default swaps (CDS) from it?

ANSWER: “We do extensive due diligence on all our counterparties.” –  posted 4/2/09 by Karl Denninger

(Credit Barry Ritholtz and Institutional Risk Analytics, the original source)

WHOAH!

In fact, our investigation suggests that by the time AIG had entered the CDS fray in a serious way more than five years ago, the firm was already doomed. No longer able to prop up its earnings using reinsurance because of growing scrutiny from state insurance regulators and federal law enforcement agencies, AIG’s foray into CDS was really the grand finale. AIG was a Ponzi scheme plain and simple, yet the Obama Administration still thinks of AIG as a real company that simply took excessive risks. No, to us what the fraud Bernard Madoff is to individual investors, AIG is to the global financial community.

As with the phony reinsurance contracts that AIG and other insurers wrote for decades, when AIG wrote hundreds of billions of dollars in CDS contracts, neither AIG nor the counterparties believed that the CDS would ever be paid. Indeed, one source with personal knowledge of the matter suggests that there may be emails and actual side letters between AIG and its counterparties that could prove conclusively that AIG never intended to pay out on any of its CDS contracts.

Read that folks.

Then read it again.

Then read it AGAIN.

More excerpts:

There are two basic problems with side letters. First, they are a criminal act, a fraud that usually carries the full weight of an “A” felony in many jurisdictions. Second, once the side letter is discovered by a persistent auditor or regulator examining the buyer of protection, the transaction becomes worthless. You paid $6 million to AIG to shift risk via the reinsurance, but the side letter makes clear that the transaction is a fraud and you lose any benefit that the apparent risk shifting might have provided.

And finally, the last nail in the coffin:

The key point is that neither the public, the Fed nor the Treasury seem to understand is that the CDS contracts written by AIG with these various non-insurers around the world were shams – with no correlation between “fees” paid and the risk assumed. These were not valid contracts as Fed Chairman Ben Bernanke, Treasury Secretary Geithner and Economic policy guru Larry Summers claim, but rather acts of criminal fraud meant to manipulate the capital positions and earnings of financial companies around the world.

Indeed, our sources as well as press reports suggest that the CDS contracts written by AIG may have included side letters, often in the form of emails rather than formal letters, that essentially violated the ISDA agreements and show that the true, economic reality of these contracts was fraud plain and simple. Unfortunately, by not moving to seize AIG immediately last year when the scandal broke, the Fed and Treasury may have given the AIG managers time to destroy much of the evidence of criminal wrongdoing.

Only when we understand how AIG came to be involved in CDS and the fact that this seemingly illegal activity was simply an extension of the reinsurance/side letter shell game scam that AIG, Gen Re and others conducted for many years before will we understand what needs to be done with AIG, namely liquidation. Seen in this context, the payments made to AIG by the Fed and Treasury, which were then passed-through to dealers such as Goldman Sachs (NYSE:GS), can only be viewed as an illegal taking that must be reversed once the US Trustee for the Federal Bankruptcy Court for the Southern District of New York is in control of AIG’s operations.

Thank you Timmy, thank you Ben Bernanke, thank you Henry Paulson, thank you George Bush and thank you President Obama.

If this is true every one of you needs to go to prison.

After those of you still in your positions are impeached.

Again, for the simple who need it in one sentence:

AIG was a Ponzi scheme plain and simple, yet the Obama Administration still thinks of AIG as a real company that simply took excessive risks. No, to us what the fraud Bernard Madoff is to individual investors, AIG is to the global financial community.

Distilled to one sentence: The bailout of AIG is equivalent to the US Taxpayer bailing out Madoff’s admitted (and now convicted) Ponzi Scheme.

PS: This isn’t MY analysis, this is the analysis of Institutional Risk Analytics. If you don’t understand who they are, you should – they’re one of the most-respected groups out there when it comes to banking system analysis. If they’re willing to print something this damning….

Posted by Calltoaccount on Sat 18 Jul 2009 at 09:40 AM

Remind all your elected servants that ….

they are bound by the Government Code of Ethics….

Code of Ethics for Government Service

House Document 103, 86th Congress, 1st Session – Passed by the Congress of the United States on July 11, 1958.

ANY PERSON IN GOVERNMENT SERVICE SHOULD:

I. Put loyalty to the highest moral principles above loyalty to persons, party, or Government department.

II. Uphold the Constitution, laws, and legal regulations of the United States and of all governments therein and never be a party to their evasion.

III. Give a full day’s labor for a full day’s pay; giving to the performance of his duties his earnest effort and best thought.

IV. Seek to find and employ more efficient and economical ways of getting tasks accomplished.

V. Never discriminate unfairly by the dispensing of special favors or privileges to anyone, whether for remuneration or not; and never accept, for himself or his family, favors or benefits under circumstances which might be construed by reasonable persons as influencing the performance of his governmental duties.

VI. Make no private promises of any kind binding upon the duties of office, since the Government employee has no private word which can be binding on public duty.

VII. Engage in no business with the Government, either directly or indirectly, which is inconsistent with the conscientious performance of his governmental duties.

VIII. Never use any information coming to him confidentially in the performance of governmental duties as a means for making private profit.

IX. Expose corruption wherever discovered.

X. Uphold these principles, ever conscious that public office is a public trust.

More on ethics including instructions for display of the above, at the Defense Systems Information Agency (DISA) site at the Department of Defense.

Feds To Get Power To Target Websites Making “False Claims”

Paul Joseph Watson
Prison Planet.com
Monday, June 22, 2009

The Federal Reserve refuses to disclose where trillions of dollars in bailout money went and yet the FTC is more concerned about snooping into the financial affairs of bloggers who make a few bucks off affiliate relationships, according to new guidelines set to be introduced later this year that would give the government a foot in the door to regulate and shut down blogs for making “false claims”.

“New guidelines, expected to be approved late this summer with possible modifications, would clarify that the agency can go after bloggers — as well as the companies that compensate them — for any false claims or failure to disclose conflicts of interest,” states an Associated Press report.

Furious that struggling families are supplementing their income by having housewives write blogs about cooking, or individuals posting political opinions and funding their operation by carrying affiliate links to Amazon books, the new FTC regulations would ensure that “Any type of blog could be scrutinized, not just ones that specialize in reviews,” according to the report.

Full Article

How the spooks took over the news

This is an edited extract from “Flat Earth News: an award-winning reporter exposes falsehood, distortion and propaganda in the global media”, published by Chatto & Windus. In his controversial new book, Nick Davies argues that shadowy intelligence agencies are pumping out black propaganda to manipulate public opinion – and that the media simply swallow it wholesale

Onthe morning of 9 February 2004, The New York Times carried an exclusive and alarming story. The paper’s Baghdad correspondent, Dexter Filkins, reported that US officials had obtained a 17-page letter, believed to have been written by the notorious terrorist Abu Musab al Zarqawi to the “inner circle” of al-Qa’ida’s leadership, urging them to accept that the best way to beat US forces in Iraq was effectively to start a civil war.

The letter argued that al-Qa’ida, which is a Sunni network, should attack the Shia population of Iraq: “It is the only way to prolong the duration of the fight between the infidels and us. If we succeed in dragging them into a sectarian war, this will awaken the sleepy Sunnis.”

Later that day, at a regular US press briefing in Baghdad, US General Mark Kimmitt dealt with a string of questions about The New York Times report: “We believe the report and the document is credible, and we take the report seriously… It is clearly a plan on the part of outsiders to come in to this country and spark civil war, create sectarian violence, try to expose fissures in this society.” The story went on to news agency wires and, within 24 hours, it was running around the world.

There is very good reason to believe that that letter was a fake – and a significant one because there is equally good reason to believe that it was one product among many from a new machinery of propaganda which has been created by the United States and its allies since the terrorist attacks of September 2001.

For the first time in human history, there is a concerted strategy to manipulate global perception. And the mass media are operating as its compliant assistants, failing both to resist it and to expose it.

Full Article

Web.bot and 2012

This is a must see video. I haven’t been able to find any major news articles supporting it, however the media is typically the last to report things, always when its too late for the people to respond. I believe this is the article that the gentlemen in the video is referring to…

From UK Telegraph ” Sun’s protective ‘bubble’ is shrinking”

But Dr McComas added that it was still unclear exactly what would happen if the heliosphere continued to weaken or what even what the timescale for changes in the heliosphere are.

He said: “There is no imminent danger, but it is hard to know what the future holds. Certainly if the solar wind pressure was to continue to go down and the heliosphere were to almost evaporate then we would be in this sea of galactic cosmic rays. That could have some large effects.

If you read the text closely, he is not sure what is going to happen. Nobody on Earth knows. So therefore, you cannot guarantee that any of this will NOT happen. We know that the world is in turmoil. And our all knowing, all powerful leaders in Washington and around the world have NO idea what to do except pump fictitious money into our “designed to collapse” economy. Whether or not you think something will happened, it is always wise to be prepared.

Meddling with the Middle Class

FactsNews – Dear Mr. Biden, Please leave the middle class alone!

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Reposted from CampaignForLiberty.com

Middle Class Task Force and the Federal Reserve

Posted by pensotti on 05/28/09

Vice President Biden is charged with a Task Force on the Middle Class. The stated objectives of the Task Force are:

  • Expanding education and lifelong training opportunities
  • Improving work and family balance
  • Restoring labor standards, including workplace safety
  • Helping to protect middle-class and working-family incomes
  • Protecting retirement security
  • While I do not believe that the Federal Government should be in charge of our education, our work life balance or labor standards, I do believe that if the Federal Reserve System was abolished we could accomplish the last two stated goals through a free market monetary system of non fiat currency. Dr. Paul explains this best in his article titled The Inflation Tax, which can be found here:

    http://www.lewrockwell.com/paul/paul334.html

    The task force is asking for comments and ideas to help it with its stated goals. I say we all send our Vice President a nice email about the troubles of our Federal Reserve System and how it has ruined the middle class through inflationary monetary policy. Follow this link to submit your comments:

    http://www.whitehouse.gov/strongmiddleclass/

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    FactsNews’ message to Biden…

    You can start helping the middle class by eliminating the Federal Reserve and answering questions about 9/11. I saw the video of Biden squirm and run away when confronted about the conclusive scientific evidence that nano-thermite was found in the rubble. You will not take over the middle class. We are fine by ourselves and do NOT need any more government meddling. If you want to help the middle class, let us keep our guns, get rid of the income tax, Federal Reserve, and let us grow our own healthy food and take care of our own healthcare. Please leave the middle class alone and take your financial manipulations elsewhere. BTW – What ever happened to MoveOn? Weren’t we against the Iraq war a few months ago?