Before 2 months ago, I was a Sean Hannity, Reagan Conservative, until I awoke to the truth of 911 after watching the presentation of Steven E Jones which served to connect a series of dots in my mind left after much reading and study. Dr. Jones was my physics professor at BYU who taught me Newtonian Physics. He also did parallel research along with Pons and Fleischman with "Cold Fusion" or "LENR" low energy nuclear reactions which was made a scandal in the media in the late 80's, but which has been now scientifically verified. Dr. Jones was not directly involved in the scandal because it was the University of Utah who jumped the gun on releasing the information before the peer-review process was complete.
I was also awakened by a study of economics and fractional-reserve banking and the history and consequences of this system, and also a study of environmental science and the man-made global warming claim.
Again, please inform yourself on the truth of 911, because that tragedy provides the greatest evidence and proof of the conspiracy. No steel-framed buildings have every fallen due to fire or being hit by a plane. The fall and pulverization of WTC 1,2,7 at near free-fall speed violates the Newtonian laws of physics and the conservation of momentum. In fact, WTC 7 did not have significant fires, was not struck by a plane, not struck by significant debris from WTC 1,2 yet WTC 7 fell for at least 2.7 sec at video-documented free fall speed which can only happen if explosives had simultaneously blown out all supports. Therefore, the building falls as if there is no resistance to the fall for that time period. Molten iron pools burning at 3000 F under WTC 1,2,7 for a month following the collapse, and unreacted, partially reacted, and fully reacted Thermate chips has been found in numerous WTC dust samples. Silverstein made 5 billion in an insurance policy on the WTC. On a NOVA special, he is quoted as saying he decided to "pull the building". Hundreds of Millions worth of Put options on American Airlines and United Airlines were placed just before 911. . . . . etc. etc. etc.etc.
Please read "Protocols of the Learned Elders of Zion" which is signed by a 33rd Degree Mason but was used to frame the Jews and realize that the game plan for a neo-feudal, world super-government and the rise of their anti-Christ leader is being brought about in exactly the way the described in the document.
We know from the Book of Mormon that a secret combination will exist and that we are specifically told to "awake" to its reality, then to "repent" both of our general sins and also for allowing the corruption of our divinely-instituted constitutional government, and then to "persuade." We have also been wisely instructed by Pres. Monson to beware of anger and we have been instructed to be worthy of the priesthood we hold because the priesthood, the holy ghost, no debt, and a food supply may be our only defense for what is coming.
The seeds of this conspiracy were sown at the founding of this country (wheat and tears). This conspiracy has been very patient in its operation and according to the Doctrine and Covenants resulted in the Civil War and would result in war being poured out upon all nations until there be an "end of all nations" (one world government vs tribes). Despite the patience, some think the internet has provided the pressure to accelerate the plans of the conspiracy because of the inability to control information and the speed at which people in America are waking up.
A civil trial is being held in Harlem, NY against Columbia University on May 14 by James David Manning who is a Baptist Minister and holds a degree from Union Divinity School who attended at the same time that Barrack Obama and is very active in the community and at Columbia University who has already passed grand jury indictments against Columbia University for giving Barrack Obama a degree of a BA in Political Science when there is no record of the president attending the University.
James Manning claims to have evidence that Obama's Hawaii Birth certificate is a forgery, that Obama was born in Kenya, and is an Indonesian Citizen. Manning says that he has evidence that the president spent time in Pakistan during the time he was supposed to be at Columbia, and was attending Alqaeda training camps. What this means is that the president is a CIA asset and a Manchurian Candidate. There are also claims that Barrack Obama's real name is Berry Soetoro and that he is secretly homosexual and allegations have been made by Larry Sinclair that they were partners and used drugs together and some believe that his current "body guy" Reggie Love is his current lover. The charges are that Columbia University fraudulently granted the president a diploma. Manning explains the trial and allegations here: http://www.youtube.com/watch?v=BLx0Kb3MB8c. President Obama discusses his relationship with Reggie Love: http://www.youtube.com/watch?v=0fo-oBgSdn0. I think the point of this is to make the truth so horrible, you cannot believe it.
My concern about this Columbia University trial is 1. something will happen before the trial to distract our attention from it 2. The trial itself will trigger civil unrest, or CIA paid anarchists will trigger civil unrest and a government response. Currently, FEMA has NLE 10 in Nevada which is conducting exercises beginning May 8 regarding a response to nuclear terrorism and particularly a scenario of Iran giving nuclear material to Alqaeda who then set off a nuclear bomb in 2 US cities. I am worried about Kansas City because of prophecy and a desire to create the NAFTA superhighway which will have a hub in Kansas City. I also worry about Las Vegas and Salt Lake City. I worry about Atlanta, GA because of the 500,000 plastic FEMA grave liners being held in a field at Madison, GA. A friend of mine drove out there last week and says they are there and you can see them on youtube.
A possible fulfillment of Daniel is that the American Empire or Pax Americana is an economic empire that is the 4th Beast spoken of by Daniel 7. Barrack Obama is the little horn that follows the 10 horns of the beast. There have been 10 presidents beginning with Truman after the rise of the American Empire over the British Empire with the the victory of the US in WW2 after using the Nuclear Bomb. Remember Spanish-->French-->English-->American. The 3 horns plucked up by the root are the 3 assassinated US presidents: Abraham Lincoln, William McKinley, and John F. Kennedy. All 3 presidents were assassinated by the banking establishment over monetary issues: greenbacks, gold act of 1900, and silver certificates (executive order 11110).
If a nuclear device was set off in America, Iran would be blamed and the US would go to war with Iran which fulfills Daniel 8 and the Ram going against Medes (Iraq) and Persia (Iran). I know that Daniel 8 refers to Alexander the Great conquest and the creation of the Greek Empire and its subsequent division into 4 after his death. However, I assume that there is a likely latter-day fulfillment of this prophecy as well. However, I don't know how to interpret the "4 notable ones" although there have been 4 US presidents since the staged hostage crisis involving Carter, Reagan, Bush, Clinton. This is when the US and the Middle East began the East-West conflict. I don't know but am concerned about the part about the "daily sacrifice" and the "sanctuary" being put down and "destroy the mighty and the holy people." The part that reads "by peace shall destroy many" may allude to the harm that will come from the false peace promised by the new world order.
Interesting LDS end-times prophecies that exist are:
1. D&C 112:23-26 "upon my house shall it begin"
2. John Taylor's Vision of Destruction that is recorded by Wilford Woodruff Journal Vol 7.
3. Patriarch Charles D. Evans Vision published in the Contributer in 1894 refers to a "letter written by a Jew" which causes great financial confusion. Then "Bankruptcy, Famine, Floods, Fire, Cyclones, Blood (war), Plague." The surviving saints on come to the rescue of the constitution after the tribulation and before a monarchy attempt to take control of America.
4. Joseph Smith's White Horse Prophecy
3 Large Masonic Murals are present in the Denver Airport. The Denver Airport has a huge complex underneath it to house the elite during the time of the tribulation. The first represents 3 girls in caskets (Jew, Native American, Black), with a burning city in the background and a girl looking at a Mayan Codex with a Quetzal Bird over her head. This mural is not speaking of the past but the future. 2012 may not be on God's calender, but it may be on these people's calendar. These people may want another holocaust. The second mural depicts a terrible figure with a gas mask and a sword which is killing the dove of peace and has a trail of women walking on a road carrying dead babies. This trail of women matches a scene in Pres. Taylor's vision. The figure with the gas mask represents martial law. The third mural has children from all over the world delivering weapons to a german boy with an large arm that is beating them into plowshares. Some question why a german boy would take the place of Christ who is supposed to bring world peace.
Thursday, April 29, 2010
Thursday, April 22, 2010
Federal Emergency Power
Anyone think these powers of the Executive Branch are a good idea? Isn't this why the Legislature makes laws in America and not the Executive?
Presidential Decision Directive 51: president given dictator status in times of declared national emergency.
PDD 54/REX 84: FEMA camps: Lieutenant Colonel Oliver North and the Federal Emergency Management Agency ... had drafted a contingency plan providing for the suspension of the Constitution, the imposition of martial law, and the appointment of military commanders to head state and local governments and to detain dissidents and Central American refugees in the event of a national crisis. (Miami Herald, July 5, 1987). Rex 84 allowed many military bases to be closed down and to be turned into prisons.
http://www.globalresearch.ca/index.php?context=va&aid=3010
Operation Trojan Horse: a program designed to learn the identity of potential opponents to martial law. The program lures potential protesters into public forums, conducted by a "hero" of the people who advocates survival training. The list of names gathered at such meetings and rallies are computerized and then targeted in case of an emergency.
Operation Northwoods, or Northwoods, was a false-flag plan that originated within the United States government in 1962. The plan called for Central Intelligence Agency (CIA) or other operatives to commit genuine acts of terrorism in U.S. cities and elsewhere. These acts of terrorism were to be blamed on Cuba in order to create public support for a war against that nation,
Operation Garden Plot is a general U.S. Army and National Guard plan to respond to major domestic civil disturbances within the United States. The plan was developed in response to the civil disorders of the 1960s and is now under the control of the U.S. Northern Command (NORTHCOM). It provides Federal military and law enforcement assistance to local governments during times of major civil disturbances.
Operation Cable Splicer is "the program for an orderly takeover of the state and local governments by the federal government. FEMA is the executive arm of the coming police state and thus will head up all operations. The Presidential Executive Orders already listed on the Federal Register also are part of the legal framework for this operation." [1]
PDD 39/62 : FEMA controls the National Guard.
PDD 67: FEMA is the lead federal agency for coordinating consequence management.
Executive Order #10995: Authorizes seizure of all communication equipment in the United States.
Executive Order #10997: Authorizes seizure of all electric power companies, fuels, fuel sources, and minerals (public and private)
Executive Order #10998: Authorizes seizure of all food supplies, food resources, all farms and all farm lands (public and private).
Executive Order #10999: Authorizes seizure of all means of transportation- including personal cars, trucks, or any type of vehicle; Total control over all highways, roads, seaports, and sea ways.
Executive Order #11000: Authorizes forced conscription of all Americans for work duties under supervision of Federal agents. This section also authorizes the splitting up of family units if deemed necessary by the government agencies in charge.
Executive Order #11001: Authorizes seizure of all health, education, and welfare facilities and their administrations (public and private).
Executive Order #11002: Empowers the Post Master General to register all men, women, and children in the United States for government purposes.
Executive Order #11003: Authorizes seizure of all airports and all aircraft, public, commercial, and private.
Executive Order #11004: Authorizes seizure of all housing and finance authorities and permits government agents to establish forced relocation sites. The government can declare any area of its choosing as "unsafe" and force the entire area to be abandoned of all persons. Authorizes establishment of new "relocation" communities; building new housing with public funds.
Executive Order #11005: Authorizes seizure of all railroads, inland waterways, and storage facilities, both public and private.
Executive Order #13010 (New): This Executive order is entitled Critical Infrastructure Protection. It established a commission made up of members from Federal government departments and agencies, which will be granted dictatorial powers when an emergency is declared.
Presidential Decision Directive 51: president given dictator status in times of declared national emergency.
PDD 54/REX 84: FEMA camps: Lieutenant Colonel Oliver North and the Federal Emergency Management Agency ... had drafted a contingency plan providing for the suspension of the Constitution, the imposition of martial law, and the appointment of military commanders to head state and local governments and to detain dissidents and Central American refugees in the event of a national crisis. (Miami Herald, July 5, 1987). Rex 84 allowed many military bases to be closed down and to be turned into prisons.
http://www.globalresearch.ca/index.php?context=va&aid=3010
Operation Trojan Horse: a program designed to learn the identity of potential opponents to martial law. The program lures potential protesters into public forums, conducted by a "hero" of the people who advocates survival training. The list of names gathered at such meetings and rallies are computerized and then targeted in case of an emergency.
Operation Northwoods, or Northwoods, was a false-flag plan that originated within the United States government in 1962. The plan called for Central Intelligence Agency (CIA) or other operatives to commit genuine acts of terrorism in U.S. cities and elsewhere. These acts of terrorism were to be blamed on Cuba in order to create public support for a war against that nation,
Operation Garden Plot is a general U.S. Army and National Guard plan to respond to major domestic civil disturbances within the United States. The plan was developed in response to the civil disorders of the 1960s and is now under the control of the U.S. Northern Command (NORTHCOM). It provides Federal military and law enforcement assistance to local governments during times of major civil disturbances.
Operation Cable Splicer is "the program for an orderly takeover of the state and local governments by the federal government. FEMA is the executive arm of the coming police state and thus will head up all operations. The Presidential Executive Orders already listed on the Federal Register also are part of the legal framework for this operation." [1]
PDD 39/62 : FEMA controls the National Guard.
PDD 67: FEMA is the lead federal agency for coordinating consequence management.
Executive Order #10995: Authorizes seizure of all communication equipment in the United States.
Executive Order #10997: Authorizes seizure of all electric power companies, fuels, fuel sources, and minerals (public and private)
Executive Order #10998: Authorizes seizure of all food supplies, food resources, all farms and all farm lands (public and private).
Executive Order #10999: Authorizes seizure of all means of transportation- including personal cars, trucks, or any type of vehicle; Total control over all highways, roads, seaports, and sea ways.
Executive Order #11000: Authorizes forced conscription of all Americans for work duties under supervision of Federal agents. This section also authorizes the splitting up of family units if deemed necessary by the government agencies in charge.
Executive Order #11001: Authorizes seizure of all health, education, and welfare facilities and their administrations (public and private).
Executive Order #11002: Empowers the Post Master General to register all men, women, and children in the United States for government purposes.
Executive Order #11003: Authorizes seizure of all airports and all aircraft, public, commercial, and private.
Executive Order #11004: Authorizes seizure of all housing and finance authorities and permits government agents to establish forced relocation sites. The government can declare any area of its choosing as "unsafe" and force the entire area to be abandoned of all persons. Authorizes establishment of new "relocation" communities; building new housing with public funds.
Executive Order #11005: Authorizes seizure of all railroads, inland waterways, and storage facilities, both public and private.
Executive Order #13010 (New): This Executive order is entitled Critical Infrastructure Protection. It established a commission made up of members from Federal government departments and agencies, which will be granted dictatorial powers when an emergency is declared.
Wednesday, April 21, 2010
Fraud within a Fraud within a Fraud
The job of the FED is to control the money supply in our economy. They do this in several ways by printing money and selling bonds. But due to fractional reserve banking, the total money created in the system is much more that the FED creates alone. When FED member banks borrow 1$ due to the money multiplier they can lend 10$ or even 50$. This is called leverage.
In 2006 the FED stopped releasing important data on the money supply termed M3. Immediately after, the value of M3 ballooned to never before seen levels due to the derivatives markets while the FED was contracting M1. M2 stayed steady. Then in 2008 M3 was sharply contracted which tipped the economy over. Contraction of the money supply has always triggered recessions and depressions. The money supply is the lubricant of the economic machine. If you drain the oil out of the motor, the gear grind to a halt.
At the same time the FED began looking the other way regarding M3, John Paulson a Hedge Fund Manager of Paulson and Co. went to Goldman Sachs with an idea for a new derivative. Long ago commodities markets were created to consolidate and price of raw materials and food stuffs regardless of where these materials like oil, copper, or wheat were produced, mined, or farmed. The problem with the commodities market is that if there is a local drought Oklahoma but plenty of rain in Nebraska, wheat prices overall will be cheap and Oklahoma farmers will go bankrupt. This system which works against producers is good for globalists because bankrupt farms can be bought up my mega-corporations that are more insulated to local ups and downs in the weather and commodities prices.
In the case of oil, the US depends of foreign oil because we refuse to drill in ANWR, offshore, and the Bakken Formation in Montana and North Dakota. Also, knowing of our huge natural gas reserves, our government has failed to develop our natural gas infrastructure. Retrofitted cars can easily be run on natural gas as petroleum and even switch back and forth with the flip of a switch. Because of our dependence on foreign oil, oil cartels like OPEC have had the power to determine the price instead of the refiners as was the case in the early part of the 20th century.
So, the globalists needed a new system to control prices and take pricing control away from the producers. That is when futures and other derivatives were created. Futures are a way in which producers and consumers can pre-negotiate the price before hand. While this pre-arrangement can be good for producers and reduce risk, sometimes factors in one part of the market can still effect the whole market. In response, other derivatives were born, which allow commodities to be divided up and packaged in all sorts of ways allowing for a greater ability to manipulate prices.
John Paulson went to Goldman Sachs in 2007 with an idea on how to package home loans in a most irregular way. The effect of all this mortgage repackaging and gerrymandering was that some of these derivatives which are very risky and volatile contracts were given a AAA rating. These MBS/CDO's were then offered to banks and even communities as safe investments promising twice the return as traditional safe cooperate and municipal bonds. At the same time Goldman was selling these new CDO's, Paulson's hedge fund was shorting these derivatives knowing that the markets would soon come crashing down. But Paulson is no lone gunman.
When the FED contracted the money supply in 2008 companies stop expanding and hiring. When companies stop hiring, mortgage defaults go up, and the volatile CDO/MBS did as derivatives do and suffered massive swing in price losing 95% of their value. This meant Banks lost all their fractional reserves and therefore could no longer create money to lend. No lending, meant no business expansion, which leads to more layoffs , which led to more bankruptcies and mortgage defaults. People defaulting on mortgages wouldn't normally hurt banks, because they created the money they lent out of thin air anyways. But when the banks lost their fractional reserves, they were dead in the water. This allowed the FED to play god and choose who would live and who would die.
The Big Banks were also hurt and knowingly bought up these CDO/MBSs. But with their people in charge of the FED and the US Treasury, the big banks were bailed out with 10's of trillions of free dollars from the US tax payer. Instead of lending, the big banks turned around and purchased US T-Bills which guarantee 3%. When asked what the banks did with the TARP money, they evade the question. But we know what happened because the FED bought 300 billion in long-range T-Bills recentlly and said it was for the purpose of lowering the T-Bill interest rate and get banks to stop buying T-Bills and to return to their usual lending practices.
Now, here comes the SEC so late in the game filing civil suits against Goldman for selling these CDO/MBS/Toxic Assets and not disclosing that Paulson, their creator, was shorting them. But here is the real rub. Obama comes into the picture talking tough against the banks and wallstreet and wanting to institute comprehensive financial reform. Financial Reform sounds good until you read the bill being proposed. This financial reform bill calls for a value added (ad valorum) tax on all banks and all transactions based on some arbitrary determination of risk. This pool of money is to be set aside to be used for the next banking failure. We are being told that it is better to tax the banks and all transactions along the way so that the tax payers don't get stuck with the bill later. But whether the tax payer bails out the banks at the end or the banks get taxed along the way, the money comes from the people either way because banks pass fees and taxes onto the consumer.
This financial reform bill and its risk-associated value added tax on all transactions, is just like the Medical Reform bill which assigns reimbursement based on an arbitrary quality measure assigned by the federal government. And this is just like the Carbon Cap and Trade bill which gives the federal government the power to determine what businesses can do and can't do. All three of these bills gives the Federal government total control over medicine, banking, and industry.
Barack Obama was selling the financial reform bill today by claiming that strong federal government power is necessary to limit the abuses of the big banks. The president even made mention of the Founding Fathers. However, no action by the Federal government could be further from the vision of the Founder's in limiting the power of the Federal government. The truth is that the Federal government already has the power to solve this problem by getting rid of the FED, and exercising anti-trust legislation to break up big banks and big businesses that are too big too fail and too big to be transparent.
What we don't need is a bigger Federal government that limits personal liberties and usurps power and control over all major sectors of our society. You may say, "come on, why would you suspect that our government would want to abuse their power when their stated intention is to protect us." We forget a fundamental rule that the Founder's and George Orwell in Animal Farm knew well, that "Power corrupts and absolute power corrupts absolutely." Consequently, the Founder's knew that banking, financial, cooperate, and government powers needed to be divided up and distributed among the people as widely as possible.
In 2006 the FED stopped releasing important data on the money supply termed M3. Immediately after, the value of M3 ballooned to never before seen levels due to the derivatives markets while the FED was contracting M1. M2 stayed steady. Then in 2008 M3 was sharply contracted which tipped the economy over. Contraction of the money supply has always triggered recessions and depressions. The money supply is the lubricant of the economic machine. If you drain the oil out of the motor, the gear grind to a halt.
At the same time the FED began looking the other way regarding M3, John Paulson a Hedge Fund Manager of Paulson and Co. went to Goldman Sachs with an idea for a new derivative. Long ago commodities markets were created to consolidate and price of raw materials and food stuffs regardless of where these materials like oil, copper, or wheat were produced, mined, or farmed. The problem with the commodities market is that if there is a local drought Oklahoma but plenty of rain in Nebraska, wheat prices overall will be cheap and Oklahoma farmers will go bankrupt. This system which works against producers is good for globalists because bankrupt farms can be bought up my mega-corporations that are more insulated to local ups and downs in the weather and commodities prices.
In the case of oil, the US depends of foreign oil because we refuse to drill in ANWR, offshore, and the Bakken Formation in Montana and North Dakota. Also, knowing of our huge natural gas reserves, our government has failed to develop our natural gas infrastructure. Retrofitted cars can easily be run on natural gas as petroleum and even switch back and forth with the flip of a switch. Because of our dependence on foreign oil, oil cartels like OPEC have had the power to determine the price instead of the refiners as was the case in the early part of the 20th century.
So, the globalists needed a new system to control prices and take pricing control away from the producers. That is when futures and other derivatives were created. Futures are a way in which producers and consumers can pre-negotiate the price before hand. While this pre-arrangement can be good for producers and reduce risk, sometimes factors in one part of the market can still effect the whole market. In response, other derivatives were born, which allow commodities to be divided up and packaged in all sorts of ways allowing for a greater ability to manipulate prices.
John Paulson went to Goldman Sachs in 2007 with an idea on how to package home loans in a most irregular way. The effect of all this mortgage repackaging and gerrymandering was that some of these derivatives which are very risky and volatile contracts were given a AAA rating. These MBS/CDO's were then offered to banks and even communities as safe investments promising twice the return as traditional safe cooperate and municipal bonds. At the same time Goldman was selling these new CDO's, Paulson's hedge fund was shorting these derivatives knowing that the markets would soon come crashing down. But Paulson is no lone gunman.
When the FED contracted the money supply in 2008 companies stop expanding and hiring. When companies stop hiring, mortgage defaults go up, and the volatile CDO/MBS did as derivatives do and suffered massive swing in price losing 95% of their value. This meant Banks lost all their fractional reserves and therefore could no longer create money to lend. No lending, meant no business expansion, which leads to more layoffs , which led to more bankruptcies and mortgage defaults. People defaulting on mortgages wouldn't normally hurt banks, because they created the money they lent out of thin air anyways. But when the banks lost their fractional reserves, they were dead in the water. This allowed the FED to play god and choose who would live and who would die.
The Big Banks were also hurt and knowingly bought up these CDO/MBSs. But with their people in charge of the FED and the US Treasury, the big banks were bailed out with 10's of trillions of free dollars from the US tax payer. Instead of lending, the big banks turned around and purchased US T-Bills which guarantee 3%. When asked what the banks did with the TARP money, they evade the question. But we know what happened because the FED bought 300 billion in long-range T-Bills recentlly and said it was for the purpose of lowering the T-Bill interest rate and get banks to stop buying T-Bills and to return to their usual lending practices.
Now, here comes the SEC so late in the game filing civil suits against Goldman for selling these CDO/MBS/Toxic Assets and not disclosing that Paulson, their creator, was shorting them. But here is the real rub. Obama comes into the picture talking tough against the banks and wallstreet and wanting to institute comprehensive financial reform. Financial Reform sounds good until you read the bill being proposed. This financial reform bill calls for a value added (ad valorum) tax on all banks and all transactions based on some arbitrary determination of risk. This pool of money is to be set aside to be used for the next banking failure. We are being told that it is better to tax the banks and all transactions along the way so that the tax payers don't get stuck with the bill later. But whether the tax payer bails out the banks at the end or the banks get taxed along the way, the money comes from the people either way because banks pass fees and taxes onto the consumer.
This financial reform bill and its risk-associated value added tax on all transactions, is just like the Medical Reform bill which assigns reimbursement based on an arbitrary quality measure assigned by the federal government. And this is just like the Carbon Cap and Trade bill which gives the federal government the power to determine what businesses can do and can't do. All three of these bills gives the Federal government total control over medicine, banking, and industry.
Barack Obama was selling the financial reform bill today by claiming that strong federal government power is necessary to limit the abuses of the big banks. The president even made mention of the Founding Fathers. However, no action by the Federal government could be further from the vision of the Founder's in limiting the power of the Federal government. The truth is that the Federal government already has the power to solve this problem by getting rid of the FED, and exercising anti-trust legislation to break up big banks and big businesses that are too big too fail and too big to be transparent.
What we don't need is a bigger Federal government that limits personal liberties and usurps power and control over all major sectors of our society. You may say, "come on, why would you suspect that our government would want to abuse their power when their stated intention is to protect us." We forget a fundamental rule that the Founder's and George Orwell in Animal Farm knew well, that "Power corrupts and absolute power corrupts absolutely." Consequently, the Founder's knew that banking, financial, cooperate, and government powers needed to be divided up and distributed among the people as widely as possible.
Saturday, April 17, 2010
Goldman Sachs Fraud: Not a Lone Gunman
I have written several posts here talking about how the most recent economic downturn was not directly the fault of subprime mortgage defaults but a result of the inherent instability of fractional-reserve banking and the AAA rating and selling of Mortgage Backed Security Derivatives/Toxic Assets/Collaterized Debt Obligations.
April 16th, the SEC filed a civil suit against Goldman Sachs for knowingly selling these Toxic Assets while at the same time betting against them and buying other derivatives that would increase in value in the event of a housing market downturn. So, while many banks bought up these MBS/ABS/CDO's, Goldman and Hedge Funds like Paulson and Co made billions first selling and then shorting the market. Goldman investors in ABACUS 2007-AC1 lost $10.9 Billion.
The evidence behind this civil suit involved several leaked internal emails discussing the racket. Goldman employee Fabrice Tourre is quoted/exerpted in an email to a friend on January 23, 2007 as saying:
“More and more leverage in the system, The whole building is about to collapse anytime now…"
"Only potential survivor, the fabulous Fab[rice Tourre]…"
"standing in the middle of all these complex, highly leveraged, exotic trades he created
without necessarily understanding all of the implications of those monstruosities!!!”
Similarly, an email on February 11, 2007 to Tourre from the head of the GS&Co structured product correlation trading desk stated in part, “the cdo biz is dead we don’t have a lot of time left.”
Goldman released the following statement: "We certainly did not know the future of the residential housing market in the first half of 2007 any more than we can predict the future of markets today,” Goldman wrote. “We also did not know whether the value of the instruments we sold would increase or decrease...Although Goldman Sachs held various positions in residential mortgage-related products in 2007, our short positions were not a ‘bet against our clients.’ Instead, the trades were used to hedge other trading positions,"
Goldman seems to be arguing that their shorting these CDO's is not much different than playing the "Don't Pass" Bar in Craps. But, even if Goldman Sachs and Paulson and Co take the fall for this, I am of the opinion that this is only the tip of the iceberg. Because although Paulson and Co made billions shorting these CDO's, The Banks who initially lost money and then were given bailout TARP money are the ones making trillions. Banks who received TARP money and additional money in the $11 trillion bailout turned around and bought US Treasury Bonds which earn 3%. And don't forget when a bank gets money from the government, it creates money on that money due to fractional-reserve lending, so that due to the money multiplier that $11 Trillion could have turned into hundreds of trillions. Who knows how many trillions of T-Bills the Banks purchased and how many billions the US government is now having to pay at 3% rate of return.
Again, Goldman and Paulson and Co. are just the tip of the iceberg. Goldman seemed to know from the emails that the housing market balloon was soon to burst in 2008. And that implicates the FED who stopped releasing M3 money supply numbers in 2006 when M3 immediately inflated to record levels and then was sharply contracted in 2008.
My hope is that this investigation does not begin and end with Fabrice Tourre. I have a hard time believing this deal was pulled off by a lone gunman.
Questions:
1. Why were speculative Derivatives/ABS/MBS/CDOs created?
2. How did ENRON abuse derivatives based on internet bandwidth?
3. Why did the SEC institute a "Mark-to-Market" policy for derivatives?
4. How were S&P and Moody's fooled into giving "Tranched" CDO's a AAA rating?
5. Why were banks and cities lured into buying AAA "tranched" collaterized debt obligations instead of the usual safe AAA corporate bonds?
6. Why did the FED stop releasing M3 data in 2006?
7. Why did the M3 money supply immediately balloon 2006 and then contract sharply in 2008?
8. If the FED was no longer watching M3, why did the FED know to contract M1 at the same time M3 was ballooning thus keeping the money multipler M3/M0 constant until M3 was sharply contracted.
9. Why would the FED contract the Money Supply sharply knowing according to Bernake's confession at Milton Freedman's 90th Birthday that contraction of the money supply by the FED caused the Great Depression?
10. What did the Banks do with all the free TARP money they received from US Treasury?
11. If banks operate on fractional reserve lending, how much money did banks create from the trillions of dollars they received in TARP and other programs?
12. According to the FED's recent buying of 300 billion in long-term T-Bills, how many T-Bills did banks purchase and how much money is the US Taxpayer paying our banks to hold T-Bills which were paying 3% up until the FED bought a load of them.
April 16th, the SEC filed a civil suit against Goldman Sachs for knowingly selling these Toxic Assets while at the same time betting against them and buying other derivatives that would increase in value in the event of a housing market downturn. So, while many banks bought up these MBS/ABS/CDO's, Goldman and Hedge Funds like Paulson and Co made billions first selling and then shorting the market. Goldman investors in ABACUS 2007-AC1 lost $10.9 Billion.
The evidence behind this civil suit involved several leaked internal emails discussing the racket. Goldman employee Fabrice Tourre is quoted/exerpted in an email to a friend on January 23, 2007 as saying:
“More and more leverage in the system, The whole building is about to collapse anytime now…"
"Only potential survivor, the fabulous Fab[rice Tourre]…"
"standing in the middle of all these complex, highly leveraged, exotic trades he created
without necessarily understanding all of the implications of those monstruosities!!!”
Similarly, an email on February 11, 2007 to Tourre from the head of the GS&Co structured product correlation trading desk stated in part, “the cdo biz is dead we don’t have a lot of time left.”
Goldman released the following statement: "We certainly did not know the future of the residential housing market in the first half of 2007 any more than we can predict the future of markets today,” Goldman wrote. “We also did not know whether the value of the instruments we sold would increase or decrease...Although Goldman Sachs held various positions in residential mortgage-related products in 2007, our short positions were not a ‘bet against our clients.’ Instead, the trades were used to hedge other trading positions,"
Goldman seems to be arguing that their shorting these CDO's is not much different than playing the "Don't Pass" Bar in Craps. But, even if Goldman Sachs and Paulson and Co take the fall for this, I am of the opinion that this is only the tip of the iceberg. Because although Paulson and Co made billions shorting these CDO's, The Banks who initially lost money and then were given bailout TARP money are the ones making trillions. Banks who received TARP money and additional money in the $11 trillion bailout turned around and bought US Treasury Bonds which earn 3%. And don't forget when a bank gets money from the government, it creates money on that money due to fractional-reserve lending, so that due to the money multiplier that $11 Trillion could have turned into hundreds of trillions. Who knows how many trillions of T-Bills the Banks purchased and how many billions the US government is now having to pay at 3% rate of return.
Again, Goldman and Paulson and Co. are just the tip of the iceberg. Goldman seemed to know from the emails that the housing market balloon was soon to burst in 2008. And that implicates the FED who stopped releasing M3 money supply numbers in 2006 when M3 immediately inflated to record levels and then was sharply contracted in 2008.
My hope is that this investigation does not begin and end with Fabrice Tourre. I have a hard time believing this deal was pulled off by a lone gunman.
Questions:
1. Why were speculative Derivatives/ABS/MBS/CDOs created?
2. How did ENRON abuse derivatives based on internet bandwidth?
3. Why did the SEC institute a "Mark-to-Market" policy for derivatives?
4. How were S&P and Moody's fooled into giving "Tranched" CDO's a AAA rating?
5. Why were banks and cities lured into buying AAA "tranched" collaterized debt obligations instead of the usual safe AAA corporate bonds?
6. Why did the FED stop releasing M3 data in 2006?
7. Why did the M3 money supply immediately balloon 2006 and then contract sharply in 2008?
8. If the FED was no longer watching M3, why did the FED know to contract M1 at the same time M3 was ballooning thus keeping the money multipler M3/M0 constant until M3 was sharply contracted.
9. Why would the FED contract the Money Supply sharply knowing according to Bernake's confession at Milton Freedman's 90th Birthday that contraction of the money supply by the FED caused the Great Depression?
10. What did the Banks do with all the free TARP money they received from US Treasury?
11. If banks operate on fractional reserve lending, how much money did banks create from the trillions of dollars they received in TARP and other programs?
12. According to the FED's recent buying of 300 billion in long-term T-Bills, how many T-Bills did banks purchase and how much money is the US Taxpayer paying our banks to hold T-Bills which were paying 3% up until the FED bought a load of them.
SEC charges Goldman Sachs with Fraud
I don't like thinking in terms of conspiracy either . I am still of the opinion that most people in our government are trying to do what was right even if they are misguided. But the truth of 911 really opened my eyes at the same time I was thinking about how to improve our system of economics.
As far as dealing with issues individually or globally. I agree that we need to strengthen individuals and families. Ruth and I have been helping the missionaries teach a deaf investigator. He had his baptismal interview yesterday and has asked me to baptize him this Sunday. But at the same time as a citizen, I hope that we can also be active politically because, as you know, the Proclamation invites community leaders to institute laws and policies that strengthen the family. .
It seems we have been fighting this battle for a long time. The strategy seems to be to exploit macro social problems by instituting oppressive individual micro policies. Health Care is another example of instituting policies that affect individual freedom instead of fixing the real problem which is the facility fee which is a financial problem. Again, there are many manifestations of this thinking that also is found in the government confiscating knitting needles before boarding a plane instead of better dealing with their intelligence and no-fly lists.
While Lord Monckton and others stood up to the false man-made global warming by exposing data falsification in what was called "climategate". Unfortunately, the issue of Carbon Cap and Trade/Tax has not gone away. Newt Gingrich (also a Bohemian Grove member) is the new front man for Man-Made Global Warming and will be running for president as a Republican in 2012.
War on Terror- Instituted Patriot Act allowing warrantless wiretaps and spying on US citizens
Womens Lib- Tax 100% population, and put children in daycare to weaken the family
Balloon Mortgage and low home ownership- inflationary amortized mortgage via FHA,HUD
Banking Failures and Panics- Power over money creation and borrowing given to the Federal Reserve, and removed dollar from gold standard.
Healthcare Costs- Socialized healthcare and quality rating determines rate of reimbursement which means the federal government could arbitrarily lower your rating and reduce your reimbursement.
3rd-World- exploitation of natural resources by so-called free trade and World Bank and International Monetary Fund to set up western banking and usury as a global system without competition.
This just in. I discussed before how it was evident the FED triggered the housing collapse 1. wages not keeping pace with the amortized loan inflation by design. 2. no longer reporting M3 as a measure of the money supply. 3. Expansion of M3 and then sudden contraction. 4. Rating AAA and selling of Mortgage Backed Securities Derivatives to banks to leverage fractional reserves. Yesterday Apr 17 the AP and Wall Street Journal reports that the SEC is charging Goldman Sachs with fraud regarding these MBS. From internal email, it has been discovered, that Hedge Fund Paulson and Co. colluded with Goldman to sell these MBS Derivatives while at the same time betting against the very derivatives that they were selling.
My problem here is, we were told the housing crisis was due to subprime mortgages and the poor enjoying home ownership. This case proves my point that it was not subprimes directly and not the poor primarily that caused the downturn but the MBS and the inherent instability of Fractional Reserve Lending. The initial story was to incite class resentment. My other problem is that I think Obama is rightly behind the SEC clamping down on Goldman. He has stated recently that he was targeting wallstreet despite Goldman Sachs being one of his largest campaign contributers. But I am concerned the investigation will not go deep enough. I hope the depth of the fraud is uncovered completely and we don't just end up with a fine and a couple of fall guys going to jail. This thing was well orchestrated involving rating agencies like S&P and Moody, SEC looking the other way, FED and M3, Goldman, etc.
The American People do not understand the level of fraud surrounding the bailout. The Government didnt just hand out 700 billion, This is just 1 of 3 bailout amounts in the total program. But due to fractional reserve lending the banks create hundreds of trillions of dollars from this money, and they went and didn't lend but instead bought trillions in TBills. Now the big banks own trillions in TBills and we are now paying them a perpetual 3% on top of the free money we gave them. We paid the banks to take our money and not the other way around.
This is like a chess match to these people. And once you realize the truth of 911, and what kind of murderous intentions a minority in power have, it is not hard to realize that they got what they wanted by playing Obama to push through Health Care Socialism. They want government control over the individual and government inaction when it comes to business and banking. The abuses of Big Business and Wall Street end with more government control over individuals but not more oversight of the Banks. Both the Republicans and Democrats end up as pawns in this game.
The Tea Parties held on Tax Day April 15th were originally a Ron Paul, Libertarian, Independent movement. Now they have been taken over by FOX news and Sean Hannity where the kinds of things I am saying can no longer be said.
As far as dealing with issues individually or globally. I agree that we need to strengthen individuals and families. Ruth and I have been helping the missionaries teach a deaf investigator. He had his baptismal interview yesterday and has asked me to baptize him this Sunday. But at the same time as a citizen, I hope that we can also be active politically because, as you know, the Proclamation invites community leaders to institute laws and policies that strengthen the family. .
It seems we have been fighting this battle for a long time. The strategy seems to be to exploit macro social problems by instituting oppressive individual micro policies. Health Care is another example of instituting policies that affect individual freedom instead of fixing the real problem which is the facility fee which is a financial problem. Again, there are many manifestations of this thinking that also is found in the government confiscating knitting needles before boarding a plane instead of better dealing with their intelligence and no-fly lists.
While Lord Monckton and others stood up to the false man-made global warming by exposing data falsification in what was called "climategate". Unfortunately, the issue of Carbon Cap and Trade/Tax has not gone away. Newt Gingrich (also a Bohemian Grove member) is the new front man for Man-Made Global Warming and will be running for president as a Republican in 2012.
War on Terror- Instituted Patriot Act allowing warrantless wiretaps and spying on US citizens
Womens Lib- Tax 100% population, and put children in daycare to weaken the family
Balloon Mortgage and low home ownership- inflationary amortized mortgage via FHA,HUD
Banking Failures and Panics- Power over money creation and borrowing given to the Federal Reserve, and removed dollar from gold standard.
Healthcare Costs- Socialized healthcare and quality rating determines rate of reimbursement which means the federal government could arbitrarily lower your rating and reduce your reimbursement.
3rd-World- exploitation of natural resources by so-called free trade and World Bank and International Monetary Fund to set up western banking and usury as a global system without competition.
This just in. I discussed before how it was evident the FED triggered the housing collapse 1. wages not keeping pace with the amortized loan inflation by design. 2. no longer reporting M3 as a measure of the money supply. 3. Expansion of M3 and then sudden contraction. 4. Rating AAA and selling of Mortgage Backed Securities Derivatives to banks to leverage fractional reserves. Yesterday Apr 17 the AP and Wall Street Journal reports that the SEC is charging Goldman Sachs with fraud regarding these MBS. From internal email, it has been discovered, that Hedge Fund Paulson and Co. colluded with Goldman to sell these MBS Derivatives while at the same time betting against the very derivatives that they were selling.
My problem here is, we were told the housing crisis was due to subprime mortgages and the poor enjoying home ownership. This case proves my point that it was not subprimes directly and not the poor primarily that caused the downturn but the MBS and the inherent instability of Fractional Reserve Lending. The initial story was to incite class resentment. My other problem is that I think Obama is rightly behind the SEC clamping down on Goldman. He has stated recently that he was targeting wallstreet despite Goldman Sachs being one of his largest campaign contributers. But I am concerned the investigation will not go deep enough. I hope the depth of the fraud is uncovered completely and we don't just end up with a fine and a couple of fall guys going to jail. This thing was well orchestrated involving rating agencies like S&P and Moody, SEC looking the other way, FED and M3, Goldman, etc.
The American People do not understand the level of fraud surrounding the bailout. The Government didnt just hand out 700 billion, This is just 1 of 3 bailout amounts in the total program. But due to fractional reserve lending the banks create hundreds of trillions of dollars from this money, and they went and didn't lend but instead bought trillions in TBills. Now the big banks own trillions in TBills and we are now paying them a perpetual 3% on top of the free money we gave them. We paid the banks to take our money and not the other way around.
This is like a chess match to these people. And once you realize the truth of 911, and what kind of murderous intentions a minority in power have, it is not hard to realize that they got what they wanted by playing Obama to push through Health Care Socialism. They want government control over the individual and government inaction when it comes to business and banking. The abuses of Big Business and Wall Street end with more government control over individuals but not more oversight of the Banks. Both the Republicans and Democrats end up as pawns in this game.
The Tea Parties held on Tax Day April 15th were originally a Ron Paul, Libertarian, Independent movement. Now they have been taken over by FOX news and Sean Hannity where the kinds of things I am saying can no longer be said.
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