Aug 28th, 2012 by Terri Linnell
The fiscal cliff our economy is ready to dive off of is actually more like a second subprime tsunami. USG is JPMorgan, which has staged Chase as an economic 'reset button' to collapse the currency. The collapse won’t be the subprime loans, but the Option Arms and Alt A’s that cause it. These have reset some time back, and with the previous ‘subprime’ major court cases done, the banks are now working on processing this next tsunami of bad notes, but first, a little history.
The Deutsche Bank scandal is being repeated. What had happened there was they had taken all their bad IPO’s (where a lot was filled with ‘mortgage securities’) and put them in Gemstone subsidiary company, bolstered the talk on how great Gemstone was, and then tried to sell Gemstone, which they knew was chalked full of bad debt. Although this goes on all the time in business, the company didn’t sell, and it took down the parent company with it when the bad debt became insurmountable, which was only a matter of time. This caused a chain reaction within the whole banking system.
In the Banking Committee’s Congressional Report which examined how the mortgage securities, which were part of the IPO’s discussed, not to prevent a second collapse, but to control a second collapse. Read for yourself:
Recommendations on Investment Bank Abuses
1. Review Structured Finance Transactions. Federal regulators should review the RMBS, CDO, CDS, and ABX activities described in this Report to identify any Violations of law and to examine ways to strengthen existing regulatory prohibitions against abusive practices involving structured finance products.
2. Narrow Proprietary Trading Exceptions. To ensure a meaningful ban on proprietary trading under Section 619, any exceptions to that ban, such as for market making or risk-mitigating hedging activities, should be strictly limited in the implementing regulations to activities that serve clients or reduce risk.
3. Design Strong Conflict of Interest Prohibitions. Regulators implementing the conflict of interest prohibitions in Sections 619 and 621 should consider the types of conflicts of interest in the Goldman Sachs case study, as identified in Chapter VI(C)(6) of this Report.
4. Study Bank Use of Structured Finance. Regulators conducting the banking activities study under Section 620 should consider the role of federally insured banks in designing, marketing, and investing in structured finance products with risks that cannot be reliably measured and naked credit default swaps or synthetic financial instruments.
Instead of taking the report and forming long term solutions, this report clearly gives out ‘exceptions’ for those willing to pay, and for those not lining their pockets, it gives out penalties, or ‘prohibitions’. If their goal was to provide real transparency, why wouldn’t they have stopped all subsidiary companies, required single brands of all subsidiaries, and removed the ‘corporations are legal people’ laws? Why wouldn’t they have stopped corporations from owning our banks? Why wouldn’t they have passed a single law that actually prevented the second collapse, which they knew about?
The mistakes outlined in the Deutsche Bank are now being repeated if someone understands parent and subsidiary companies. Currently, the Gemstone of today is JPMorgan Chase. Since Chase is a subsidiary of JPMorgan, and Chase is FDIC insured, unlike the last tsunami, it is set to be paid for by the taxpayers through FDIC Insurance.
Furthermore, JPMorgan has many other names and stock tickers across the world tied into it, but here we will simply refer to it as JPMorgan, a company most people have heard of in the United States. USG is partnered with JPMorgan. JPMorgan has also created a 37% increase in their holding through paper creation; they hold the notes on many of the major ports in the USA; they have a commanding position to buy and short-sell* gold and silver; and they are heavily invested in RFID subsidiary companies, mandated through ObamaCare; all in order to insure their survival with more bailouts. This scenario is no longer a matter of ‘if’ it happens; it’s a matter of when. With all things considered, many financial advisors have predicted it’s coming quite soon. The question is not if it can be fixed, but if it can be postponed through more manipulation such as the government did in the first tsunami, with the first round of bailouts.
A huge problem is the fact that our government has used currency creation, which causes inflation, to deal with their problems. When a currency collapses, it goes two directions, either into hyper-deflation like it did in the Great Depression, or hyperinflation like it has been doing in many countries now that the world has been off the gold standard since the 70’s. Either way, the banks have run off with the money, paper money is either hard to get or worthless, a barter system is created, and price destabilization occurs.
Since the bailouts, borrowing and printing of money has already occurred in the first tsunami, every indicator says hyperinflation is the way the USA currency collapse will happen. –But during hyperinflations a few unique things typically transpire. Food riots because prices increase rapidly, and a revolution. In order to counteract these two things, a government must try to protect the people from the rioters... who are rioting in every city across the nation all at once. The rioters quickly fill the jails and court system to overflowing. With the pesky Bill of Rights in the way, there is simply no way to deal with that many people at once. Therefore, the government must be able to remove the rights of the people with passing laws such as the NDAA to indefinitely detain them, the Trespass bill, HR 347, to stop them from protesting at any government offices, and CISPA to remove any rebel’s communication.
This has happened in Argentina. Argentina is probably the best example of how and why the USA is in the pickle it is in. Big international corporations came in, promising great benefits to the people and hiring thousands. This naturally gave them influence in the government and their ‘Congress’ accepted their bribes. More and more regulations were passed, so the smaller businesses were pushed out. At some point, the government deregulated the banks, and the corporations had access to the people’s money, where they created a housing bubble. The housing bubble is crucial in order to get the people to borrow incredible amounts of money. When the bubble burst, the government bailed out the corporation owned banks, again with the people’s money. Eventually, even that failed and 25% of the people lost all they had in the banks. The banks simply closed their doors. It would have been worse if the US banks had not stayed open. The international companies left the country, leaving the people jobless, with regulations so they couldn’t afford to open new businesses, and the international companies could then keep their market share through importing.
Now what is most interesting is to look at Argentina today. Business taxes are at 78%. No, that’s not a typo. 78%. In order to collect the taxes the government must use Nazi style tactics, with spies galore for those who risk the black market. They clamp down on their people to ensure getting paid.
The natural conclusion is we are in for very bumpy times ahead, worse than this country has ever seen. With a government willing to remove our rights rather than fix the problem, we can only pray to weather the coming tsunami with the grace and the willpower of our founders by throwing out such government, jailing the bankers, and fixing our economy ourselves. With the American Spirit coursing through our veins, we will prevail. We stand United. We are Americans.
Listing of Sources:
Oct 2007, IMF Mortgage Reset Chart (common knowledge in Congress) http://www.calculatedriskblog.com/2007/10/imf-mortgage-reset-chart.html
May, 2011- Banking Committee Report: http://www.hsgac.senate.gov/download/?id=273533f4-23be-438b-a5ba-05efe2b22f71
April, 2012 JPMorgan Libor Scandal: http://www.scribd.com/doc/100104757/Libor-Antitrust-Consolidated-Class-Action-Complaint-Part-1
Other JPMorgan cases: http://dockets.justia.com/search?q=Chase+Home+Finance%2C+LLC%2C+A+Delaware+Corporation
July 18th, 2012 UBS partner of JPMorgan, JPMorgan added a 37% increase in shares of unsecured debt this year, shares suspended, investigation opened. http://www.bloomberg.com/news/2012-07-18/ubs-lists-mlp-note-after-jpmorgan-suspends-shares-in-largest-etn.html
July 20th, 2012 Wolf (Obama’s largest fund raiser) Resigns UBS to form own company. http://money.cnn.com/2012/07/20/news/economy/robert-wolf-ubs-obama/index.htm
July 25th, 2012 JPMorgan linked to medical company http://www.bloomberg.com/news/2012-07-25/mmodal-low-buyout-premium-signals-jpmorgan-bump-real-m-a.html
August 20th, 2012 Goldman to Clients- Get out of stocks before election. http://www.cnbc.com/id/48725644
Argentinian Interviews done in 2007, 2010, 2012.
So with the elections quite close, many who’ve read this far may think they can change this course in our history, but please look further. The money from the bankers is going to both Obama and Romney. Both agree with the NDAA, and both have loyalties to the top executives of big corporations. http://www.opensecrets.org/pres12/index.php
*Short-Selling is basically when a fighter bets against himself and throws the fight.
Note: I did not write this article, but had the author's permission to post it here in it's entirety.