- I have warned again and again about a coming global monetary crisis. To give you a firm schedule is difficult. But we are getting very close to the meltdown. The US$1.5 Quadrillion toxic derivatives problem is about to hit the world. It will be triggered by the fraudulent MBS derivatives. Some estimate that MBS is in the region of US$45 – 65 Trillion, ie these amount of worthless paper is circulating the globe. Many financial institutions worldwide hold them. Many will go bust! US$65T is about the size of the entire world’s GDP. There is simply not enough money around the world to write these derivatives off! QE to infinity is inevitable! USD is toast!!!
The USDollar will suffer. Rather than fall versus other major currencies, the wrecked monetary system will take down all major currencies.
Imminent Big Bank Death Spiral Means Gold Price Will Sky Rocket
The mortgage & foreclosure scandal runs so deep that ordinary observers can conclude the US financial foundation is laced with a cancer detectable by ordinary people. The metastasis is visible from the distribution of mortgage bonds into the commercial paper market, money market funds, the bank balance sheets, pension funds under management, foreign central banks, and countless financial funds across the globe. Some primary features of the cancerous tissue material are mortgage bond fraud, major securities violations, absent linkage to property title, income tax evasion, forged foreclosure documents, duplicate property linkage to single mortgage bonds, NINJA (no income, no job or assets) loans to unqualified buyers, and more. In fact, more is revealed it seems each passing week toward additional facie to high level and systemic fraud. The world is watching. The growing international reaction will be amplified demand for Gold, from recognition that the USDollar & USEconomy have RICO racketeering components extending to Wall Street banks and Fannie Mae mortgage repositories.
The centerpiece question, when the US bond fraud is coupled with European sovereign debt distress, comes down to WHAT IS MONEY? The answer is Gold & Silver and not much of anything else. Other assets like crude oil or farmland are effective hedges against tainted money, but when they contain debt tethers, they too are vulnerable. Huge flows of funds are fleeing traditional asset groups. Some mistakenly still believe the USTreasurys to be a safe haven. A shock of cold water comes to them when that bubble goes into reverse perhaps several months later after reaching 2% yields. The big magnificent epiphany in the last couple years has been that a house is not a hard asset, but rather a debt instrument extension. Important questions have arisen as to what assets are free from counter-party debt risk. The grand demands for physical gold prove that the futures gold contracts are not money either, but tainted Wall Street and London securities contracts that keep the system going.
The big banks have been called too big to fail. What a ruse! They are too big to plow under without removal from power of the bankers themselves. They are too big to permit their balance sheets to be liquidated without a US banking system seizure together, and a 30% to 50% additional housing market price decline. They are too big to send into receivership without igniting a credit derivative sequence of explosions. They are too big to block the widespread practice of fraud and enforcement of law of regulations. However, a wondrous spectacle has begun to shine light. The mortgage & foreclosure scandal could turn out to be the big US Bank tombstone epitaph, as bank revenues from mortgages halt, as home owners refuse to make mortgage payments, as court cases unfold in full view, as class action lawsuits prove racketeering at a systemic level, as MERS and REMICs are frozen by the courts from further activity. Time will tell. Time will reveal extraordinary efforts by the USCongress to pass ex-post facto laws that legalize the bond fraud and contract violations from the past. Remember back in July 2007 when Bernanke claimed this was just a subprime mortgage problem. The Jackass called it an absolute bond crisis.
THE GIGANTIC ACHILLES HEEL EXPOSED
Two critical elements have been identified. The MERS electronic title registry system was designed to facilitate recording of property titles as associated mortgage bonds traded freely and changed ownership hands. Unfortunately, the title database has no legal standing, as declared by several state courts, including some supreme courts. Banks or financial firms holding the mortgage notes cannot team with the title database and force eviction during the home foreclosure process. That is the first gaping flaw. The second is the REMIC funding facility. The Real Estate Mortgage Investment Conduit was designed to facilitate funding mortgages, in particular Fannie Mae mortgages. Unfortunately, the conduit funding vehicle intentionally omitted citation of the mortgage income stream owner, so as to avoid income taxes. The lack of identification means that the Fannie Mae asset backed securities might lack any legal tie to the mortgage loan income stream.
If the casual observer concludes that Fannie Mae mortgage bonds have no value, then that observer matches the same thought pattern of the Jackass, and the same as an increasing number of financial experts. The mortgage finance boom was more a racketeering scheme to send financial products through the pipeline, earn fees, set up arbitrage, enable leveraged schemes, and justify executive bonuses. At the same time, the scheme had the perceived benefit of putting money in people’s hands to spend when their jobs were shanghaied on a ship to China. It concealed the destruction of the USEconomy. It made homes very convenient piggy banks to abuse in consumer binges, as people eagerly burned their furniture. Harken back to the Great Macro Asset Economy, a slippery chapter scripted by Greenspan, one of several heretical chapters. Many citizens were turned into paupers who lost all their home equity, while 22% of the nation today lives in homes bearing negative equity overhead. To claim an elaborate Ponzi Scheme seems a fair characterization. The USGovt hands are dirty. The reflection on USTreasurys is filled with risk of a popped bubble. The reflection on the USDollar is filled with risk of downdrafts since a corrosive currency.
The Europeans have their damaged sovereign debt, but the Americans can boast twin beasts in the USTreasury Bond bubble and the USAgency Mortgage Bond scam. The scam involves mortgage bond fraud from improper perfection of property title that ensures revenue stream. The scam involves securities violations from usage of the MERS title database, duplicate properties in multiple bonds, and forged documents. The scam involves faulty finance vehicles (REMIC) with deep intractible flaws in the structure of funding the loans, whose remedy would come with a $1 trillion tax bill due (estimated by bank analysts). Just last weekend, the state of California demanded as part of a class action lawsuit, with MERS at the center, between $60 and $120 billion in unpaid property title recording fees. One might wonder if any potential criminal fraud was avoided in the mortgage industry during the last decade that saved a few bucks and added to bank profit. The MERS & REMIC twins represent the two unfixable banking Achilles Heels. Can the USCongress forgive the fraud with a fresh piece of supercharged legislation?? If they do, then civil disobedience will blossom across the land, in the form of public demonstrations, marches on Washington, non-payment of monthly mortgage bills, and demands to prove property title. The global response will be to sell any bonds with a US$ denomination.
The fallout comes as shattered integrity of the USDollar after broken credibility of the USFed and ruined prestige of Wall Street, all while a sanctioned USTreasury Bond bubble puffs. The full USGovt guarantee of the Fannie Mae clearinghouse cesspool contents bridges the gap between USTBonds and USAgency Mortgage Bonds. One might argue that Agency Bonds differ from USTBonds only in the claim of linkage to mortgage income and ultimately home seizure, except that linkage is being removed in plain view to the public. The USDollar will suffer. Rather than fall versus other major currencies, the wrecked monetary system will take down all major currencies. Each fiat paper currency is being exposed as illegitimate in different ways. The consequences will be:
…. to continue reading click here!
Lindsey Williams: Destruction of Dollar! US$45 Trillion MBS Meltdown, Iran War, Gold Going Up, Up, Up …. (26 Oct 2010)
- If above video does not work properly, try this MP3 link: Lindsey Williams on Rense Radio Oct 2010. See also:
Lindsey Williams: America on the Brink of Collapse! $2-7 Trillion MBS Toxic Derivatives Fraud ! Imminent Dollar Collapse! Middle East War, Gold And Silver Will Skyrocket ….(25 Oct 2010)
Pastor Lindsey Williams: Deathbed Globalist “Spills Gut” On Plan to Destroy America! Iran War In 4-5 Months! Oil Price $150-$200 per Barrel !
Lindsey Williams: Within 2 Years You Will Not Recognize America! Dollar Will Die by 2012! Gold and Silver are All You Can Rely On! War is Planned! The Devil’s Messiah Within 2 Years??
Lindsey Williams: The Elite Speak (Disk 3 of 3), War Is Planned After 18 Months!
Lindsey Williams: The Elite Speak (Disk 2 of 3), Planned Financial and Economic Collapse!
Lindsey Williams: The Elite Speak (Disk 1 of 3), The Coming 12 Months.
Lindsey Williams: Reality Disk 3. World War Planned After 2 Years. It Will Be Triggered In The Middle East!
Lindsey Williams: Hope Disk 2. Within 2 Years The Dollar Will Be Worthless. Gold And Silver Are The Currencies Of The Elite!
Lindsey Williams: Tragedy Disk 1. The Illuminati’s Plan For The Next 2 Years!
Lindsey Williams: What The Illuminati Elite Plan For 2010 and 2011!
Lindsey Williams: What Will Happen To America in 2010!
- Who are these people working for ? ’666′ !!
Daniel 11:37-39 (New King James Version)
37 He shall regard neither the God[a] of his fathers nor the desire of women, nor regard any god; for he shall exalt himself above them all. 38 But in their place he shall honor a god of fortresses; and a god which his fathers did not know he shall honor with gold and silver, with precious stones and pleasant things. 39 Thus he shall act against the strongest fortresses with a foreign god, which he shall acknowledge, and advance its glory; and he shall cause them to rule over many, and divide the land for gain.
- Not only were a large portion of the original mortgages fraudulent, the MBS that were sold were fraudulent. There are cases of the same MBS sold to multiple parties. How can this be? Massive derivatives fraud spread globally. This MBS fraud is in trillions of dollars and much bigger than the original mortgage amount. No one knows for sure how much fraudulent MBS is in the world. It can bring down the entire banking system. QE to infinity is a foregone conclusion. How can the USD not become toilet paper?
“The Fraud Perpetrated Upon Investors and Insurers Due to Multiple Pledges of Collateral Could Be Massive”
… We really like the 4th from last paragraph, the one about the standard practice of Florida bankers to destroy the original note when an electronic form was created, to “avoid confusion.” ….. Is it just possible that creative Florida bankers discovered they could “sell” mortgages many times by conveniently delivering a “copy” of the electronic note for each subsequent sale? By delivering a “good” electronic note to each purchaser, the seller/servicer could kite the Ponzi scheme to the sky …. We know people in the servicing sector and related legal specialties who think that the fraud perpetrated upon investors and insurers due to multiple pledges of collateral could be massive.
Mortgage Crisis: The Six Trillion Dollar Problem
…In the case of the recent mortgage crisis – “Foreclosuregate,” …. It has been widely reported that there are a little more than 60 million home mortgages in the Mortgage Electronic Registry System (MERS). If every one of the 60 million mortgages are worth $100,000, that would mean a total of at least $6 trillion in home mortgages that are electronically filed. In MERS, there is no physical written record of a “Promissory Note.” In almost all states, you need that original “Note” to prove ownership of a home. That means in almost every single state, the banks cannot legally foreclose on your home without this document. Some say the loan documents were lost on purpose because the bankers did not want their massive fraud to see the light of day. Whether or not the “Notes” were lost on purpose or accident, the fact is the original “Notes” are nowhere to be found. That is what the “Robo Signing” part of the story is all about. It has been widely reported that “foreclosure mills” were creating massive amounts of counterfeit Promissory Notes so banks could legally foreclose on homeowners.
In the post I did earlier this week called “The Perfect No-Prosecution Crime,” I laid out several layers of fraud and white collar crime of mortgage and foreclosure fraud. The lack of the Promissory Note is the biggest of all the problems in this chain of chicanery. Here’s why. A Promissory Note is a financial instrument. It is in the same family as a Federal Reserve Note. For example, if you copied a $100 bill and then tried to spend that copy in a store, because you lost the original, is it still money?–Of course not. You need the original financial instrument (in this case, $100 Federal Reserve Note) to make a legal transaction in a store. The same is true for a Promissory Note. You need the original Promissory Note to legally complete a foreclosure. A counterfeit, or copy, of a Promissory Note is not a financial instrument, just like a counterfeit or copy of a $100 bill is not a financial instrument!
Can you see how big this problem really is for the banks? This is $6 trillion in real estate that fat cat bankers cannot legally prove they own. Likewise, that means trillions of mortgage-backed securities HAVE NO BACKING. I think this is the biggest financial fraud in history. This was not an accident made by someone pressing the wrong button or a few documents that weren’t handled properly, but fraud on a massive scale that took years and tens of thousands of people to pull off. Ironically, this is all playing out against a backdrop of outrageous Wall Street pay. This year the big banks are going to pay a record $144 billion! (Click here for more on that story.)
One of my regular readers thinks Congress can simply pass a law and make all the crimes retroactively legal. To that I said, “So Congress is going to change hundreds of years of real estate document law in each and every state? Along with IRS tax laws broken, trust laws broken, security laws broken and on top of that, make crimes retroactively not crimes anymore? That’s a lot even for Congress. I think the path of least resistance is more likely printing money to paper over the problem. . . . I hope you are wrong on Congress because if they do change all of these laws to comfort the criminal banksters, we might as well change the name of the country to the United States of Crime.”
Two very big things are going to happen because of this enormous financial fraud. The banks are, once again, going to play the “Financial Armageddon” card and scream for a bailout to save the world. You see, owners of all those mortgage-backed (or un-backed) securities will force the big banks to buy them all back. The big banks do not have that much money and, thus, many experts are predicting another monster bank bailout is on the way. How is that going to be paid for?—with money printed out of thin air, that’s how.
The second big thing, the banks are going to have to get tens of millions of homeowners to sign new “Promissory Notes.” Then, and only then, will the banks have the legal right to foreclose and mortgage backed securities will actually be backed. One of my favorite writers, Jim Willie of the Hat trick Letter, predicts underwater homeowners will be demanding something in return for this bailout. Willie wrote, “The total $1 trillion bank aid package would cause a firestorm. A key provision to win over public support will be promises by the big banks to finally give home loan balance reductions, what the people demand. That will enable the American public to agree to the package, except one year later they will be shown more revolving doors and dead end corridors.” (Click here for the entire Jim Willie article.)
This $6 trillion problem may or may not sink the banks, but the next bank bailout will surely submerge the dollar. That will trigger very big inflation. Keep in mind, this is not an event, this is a process that will take a long time to work through.
- This is the clearest indication that senior management in large corporations do not buy the everything is going to be A OK story. Why are they all selling? Because they expect the economy to become worse.
Insider Selling Volume at Highest Level Ever Tracked
The overwhelming volume of sell transactions relative to buy transactions by company insiders over the last six months in key leading sectors of the market is the worst Alan Newman, editor of the Crosscurrents newsletter, has ever seen since he began tracking the data.
The strategist looked at insider trading activity amongst the top ten companies that make up the Nasdaq such as Apple [ AAPL 307.83 -0.22 (-0.07%) ], Google [ GOOG 616.47 -2.13 (-0.34%) ] and Amazon [ AMZN 167.51 -2.44 (-1.44%) ].
Then he analyzed the biggest members of the Retail HOLDRs ETF like Gap [ GPS 19.34 -0.34 (-1.73%) ], Target [ TGT 52.73 -0.41 (-0.77%) ] and Costco [ COST 62.98 -0.70 (-1.10%) ], as well as the top insiders in the semiconductor industry at companies such as Altera [ ALTR 31.04 +0.71 (+2.34%) ], Broadcom [ BRCM 41.56 +4.34 (+11.66%) ] and Sandisk [ SNDK 37.87 +0.68 (+1.83%) ].
The largest companies in three of the most important leading sectors of the market have seen their executives classified as insiders sell more than 120 million shares of stock over the last six months. Top executives at these very same companies bought just 38,000 shares over that same time period, making for an eye-popping sell to buy ratio of 3,177 to one.
The grand total for the three sectors are “as awful as we have ever seen since we began doing this exercise years ago,” said Newman, who was ahead on such trends as the dangers of high-frequency trading and ETFs before the ‘Flash Crash’. “Clearly, insiders are seeing great value only in cash. Their actions speak volumes for the veracity for the current rally.”
But the overall market doesn’t seem to care. The S&P 500 is up 16 percent since its 2010 low hit on July 2nd on the back of strong earnings driven by cost-cutting and the hopes for even more quantitative easing from the Federal Reserve.
The insider data “is good reason for considerable caution once the price action fades,” said Simon Baker, CEO of Baker Asset Management. Still “insiders normally buy early and sell early too. Longer term — 12 months out — it is more of a red flag.”
Newman isn’t alone in warning about insider selling. The latest report from Vickers Weekly Insider, a publication that makes investments based upon these transactions, shows that total insider sell transactions relative to purchases on the New York Stock Exchange are running at a ratio of more than four to one over the last eight weeks. The normal reading, because of options selling and other factors, is about 2 sales for every buy, according to Vickers.
To be sure, many investors feel the heavy insider selling is just an anomaly based on other reasons. “These are folks that have had to dip into their stocks for the first time in years, as their salaries have been cut and their bonuses, outside Wall Street, have been significantly curtailed,” said J.J. Kinahan, chief derivatives strategist for TD Ameritrade. “ This may speak more to a cash flow problem, then a market belief.”
Still Newman, who is also a favorite commentator of Barron’s columnist Alan Abelson, sees the insider selling as just the latest reason, along with the mortgage foreclosure mess and fully invested mutual fund managers with no fresh powder to put to work, to be cautious on the market. “At the risk of sounding like a broken record, we expect a significant correction,” said the newsletter editor.
- Yes, it is true. Who is working with BlackWater (Xe), who pays them? The Illuminists owned/controlled CIA. Most terrorism are initiated by Illuminists in these intelligence agencies: CIA, MI5/6, Mossad and even KGB/FSB . Don’t get me wrong, I am not saying that everyone working in these agencies are Illuminists. It is the owners/controllers right at the top echelons who are Satanists. False flag terrorism is just an excuse for their world conquest, for the remaking of the world to destroy national sovereignties towards–>One World Government.
- Hamid Karzai, the ex Unocal Oil executive, is just another Illuminist controlled puppet president. Maybe, his conscience is finally waking up, as he sees the Afghan people being systematically massacred. See also:
Karzai’s brother is said to be on CIA payroll. Afghan president’s sibling is suspected player in nation’s illegal opium trade
Opium and the CIA: Can the US Triumph in the Drug-Addicted War in Afghanistan? The Afghan state of Hamid Karzai is a corrupt narco-state
Karzai: Blackwater behind terrorism
Afghan President Hamid Karzai has said US private security firms, including Xe Services LLC, formerly known as Blackwater, are being behind terrorism in the country. At a press conference in Kabul, Karzai said that US security companies have been behind explosions that have claimed the lives of women and children.
The Afghan president added that they have caused “blasts and terrorism” in different parts of Afghanistan over the past months. The Afghan president said his administration cannot even distinguish between the bomb blasts carried out by US security firms and those of the Taliban militants. “In fact we don’t yet know how many of these blasts are by Taliban and how many are carried out by them (US security companies).”
Blackwater has been involved in the murder of several Afghan citizens over the past years. The company has also been struggling with a trail of legal cases and civil lawsuits, including one for killing 17 Iraqi civilians during a Baghdad shootout in 2007. Earlier in June, the CIA reportedly admitted that Blackwater had been loading bombs on US drones that target suspected militants in neighboring Pakistan.
The Afghan president has also pointed out that American private security firms are corrupt and have fueled nine years of war. “Deals under the name of private security companies are cut in the hallways of American government buildings. It involves 1.5 billion dollars,” he said. Karzai has accused security companies of running what he called an economic mafia based on crooked contracts.
“The money, 1.5 billion dollars, is being distributed there (in the United States) on Blackwater [sic] and this and that.” The developments come as the notorious Blackwater has been awarded a five-year State Department contract worth up to USD 10 billion for operations in Afghanistan. In August, Karzai ordered all security firms to disband before the end of the year.
Some diplomats and military officials say Karzai has been under intense pressure to reconsider his decision. However, Karzai says he is steadfast in his decision to dissolve foreign security firms in the country despite US pressure to reconsider the decision. The private companies are said to be in charge of providing security for foreign officials and embassies as well as development projects in Afghanistan. Karzai has blamed mercenaries for civilian deaths and corruption in the troubled region.