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The tag team of JPMorgan as the monster and Goldman Sachs as its
harlot represent a powerful pair that is more responsible for destroying the
entire US
financial system than 95% of the American public has any awareness. The
colossus of JPMorgan is a monster, a predator, nurtured by pond scum. It has
gobbled up Chase Manhattan, Manufacturers Hanover, Chemical Bank, Bank One,
and more over the past two decades. Their profound presence in keeping the
USTreasury Bond yields down can never be understated. They do so by managing
85% of the credit derivatives on the planet. They distorted usury prices, as
in price of borrowed money, thus aggravating the LIBOR (London InterBank
Offered Rate) market in a very visible manner.
The oblong usury prices have contributed mightily to
the destruction of the US Economy itself, created bubbles, killed jobs, and
wrecked savings. The ugliest hidden activity for the JPMorgan monster is to
manage the Bank of Baghdad, where they manipulate the crude oil price, where
drug trafficking money is funneled from Afghan sales, under management by the
US Military aegis (guys with no uniform stripes or markings). Maybe such
illicit money offsets Credit Default Swap losses, making America
strong for freedom and liberty. Goldman Sachs is clearly the investment
banking agent for the USGovt, given the privilege of insider trading in
unspeakable proportions.
They manage the Plunge Protection Team efforts to
intervene in financial markets, making America strong for freedom and
liberty. The new kid on the block is the FDIC. The Federal Deposit Insurance
Corp is steering fresh meat into the corralled JPMorgan stockyards for
slaughterhouse feeding. The label of harlot might be too kind, especially
from the perspective of senior bond holders. But JPMorgan requires fresh meat
(capital) periodically, thus making America strong for freedom and
liberty. Never mind the fires caused after its hearty meals and flatulence.
This article discusses the JPMorgan monster, its
behaviour, and teeth revealed. Robb Kirby (see his website, click HERE ) often covers JPMorgan illicit behaviour This article discusses
banking system realignments to destroy savings accounts owned by the people,
and the Coup d'Etat just completed. The criminals on Wall Street have taken
full control of the USGovt financial management, with blank check written by
a thoroughly intimidated US Congress, deceived steadily and easily. Threats
and intimidation are central to the successful coup. The Ponzi Scheme has
been revealed, even as the frail and tattered Shadow Banking System has been
revealed. The key to the bailouts is its continued Top Down approach, which
favors the Ruling Elite and denies all but crumbs to the people, who have
been subjected to a foreclosure revolving door on mortgage loan assistance.
Since nothing has been solved from this approach, a
total systemic breakdown is assured, whose climax will be the current
Administration and the Wall
Street executives in charge of the criminal syndicate riding off into the
sunset in retirement. Rome burns. Much more detail is provided in the upcoming
October report due this weekend. The theme is this subset synopsis article is
of criminality, deception, monster exploitation, market corruption, and the
collapse of a failed system, whose crescendo represents the greatest
financial crimes ever witnessed in modern history. Americans do it big! The
proprietary Hat Trick Letter covers much more of recent events,
interpretation, and analysis, but here, focus on impropriety.
THE MONSTER, ITS BROKER & HARLOT
JPMorgan will require fresh asset meat every several
weeks in order to survive, but the process will result in a sequence of
severely damaging CDSwap fires. Perversely, the FDIC is their investment
banker agent. Two mergers of questionable nature highlight the altered role
of the Federal Deposit Insurance Corp (FDIC), which no longer protects bank
depositors or their investors, but rather serves JPMorgan Chase. When Bank of
America merged with Merrill Lynch, a trend started, one that exposed private
stock brokerage accounts. Officially they can be legally borrowed across
subsidiary lines. The FDIC averted a failure of Merrill Lynch without the
credit default implications.
The other event was more blatant, as the FDIC
steered Washington Mutual out of bankruptcy failure and into the JPMorgan
slaughterhouse. Inside its chambers, JPM gobbled up the WaMu deposits and
benefited from ratio improvements. Senior bond holders were crushed, fully
denied due process from bankruptcy. The FDIC has become an ugly investment
banker lookalike, serving JPM and not the US public. The FDIC owns a
pitifully small $45 billion in funds available for bank bailouts, at June
count. When the dust clears a year or more from now, many multiples more will
be necessary for many bank failures.
The path of JPMorgan growth into a FRANKENSTEIN took
radical changes in course after both the failures of Lehman Brothers and
recognition that Fannie Mae & Fannie Mae had to be taken over by the
USGovt. To halt the run on their bonds, the USGovt acquired the entire F&F
Cesspool. The impact hit the Credit Default Swap market immediately. AIG had
been weakened one week earlier from the technical default of Fannie &
Freddie, which resulted in broad CDSwap payout's. Ripple effects from the
Lehman Brothers failure that followed were deep and broad throughout the
system, killing AIG. The Wall Street central harlot (Goldman Sachs) advised
the USGovt to assume full control and risk of AIG, as GSachs avoided $20
billion in sudden losses in the nick of time, a pure coincidence!
The entire episode with Wells Fargo bidding for
Wachovia, in competition from Citigroup, is steeped in comedy with vampire
stars. The grapevine in Washington and Wall Street passes word that the
Citigroup versus Wachovia wrestling match was actually a sponsored backdoor
bailout attempt to save Citigroup, not just Wachovia. Again, the FDIC was the
matchmaker. My term has been ‘Dead Marrying the Dead' which still holds
true, since Citigroup has been dead for one year. Under the original
Citigroup proposal, the FDIC had arranged for guarantees of $42 billion for
Wachovia debt by the US Fed. The new Wells Fargo deal enabled the US taxpayers
to get off the hook. The reversal by the FDIC to serve the public has caused
gigantic Wall Street problems, as Citigroup now finds itself in a position
more perilous than anyone believed. This battle has flip-flopped once, and
might again. Citigroup would probably have died if not for the USGovt
purchase of bank stocks.
THE TEETH OF THE
MONSTER REVEALED
JPMorgan is a monster predator at work, hidden from
view. After the Fannie Mae experience, covering their giant raft of CDSwap
contracts, making huge payout's, JPMorgan was close to a bankruptcy. They
needed to feed off another bank, to consume private deposits and thus shore
up the balance sheet. Lehman Brothers was let go to fail, but its failure
would surely trigger a gigantic wave of credit market fires. The Lehman
CDSwap resolution has cost roughly $300 billion, paying 91 cents per dollar
of coverage on their failed bonds. The Wall Street Powers permitted Lehman to
fail, so as to prevent a JPMorgan failure, thus risking that the fires caused
could be contained in CDSwap fallout. The irony is that JPMorgan undoubtedly
suffered considerably from that fire in fallout. Now JPMorgan might need
another Wall Street failure, for to consume another block of assets, but with
yet another ensuing CDSwap fire. JPMorgan is a monster predator at work, soon
hungry again. It might be eyeing Morgan Stanley. We might discover a failure
in an unexpected place, like a big insurance firm, whose sector condition is
not well advertised.
With each big bank failure, whether a commercial
bank or investment bank, heavy damage is done to the system. The CDSwap
destruction is mostly hidden, with large pillars burned out. We the people
hear of the destruction only if and when a major bank fails as a result. No
death, no news, however but with potentially significant hidden structural
damage. As financial firms pay out vast sums on CDSwaps as in the Lehman
case, and the Fannie Mae case, and the Freddie Mac case, the system bleeds
capital. Lending suffers. The sequence corresponds to a powerful vicious
cycle. JPMorgan will need more deaths to survive, but each death causes more
deadly CDSwap fires. JPMorgan is a monster predator at work, which leaves
fires on pathways where it last stepped. The best analogy is that CDSwap
contract payout's from bond failures are like mini-Hiroshima events that
might lead to a bigger such event. Ironically, to save JPM the financial
system must destroy the shadow banking system centered in New York City, since Wall Street firms,
plus Bank of America are at its center. The system lacks disclosure and
transparency, just like Wall Street likes it.
Permit the pathogenesis to proceed further, and the
majority of Western bank system must be burned in order to leave JPMorgan as
prominent survivor to rule over a scorched empire. This process is a sick
consolidation. The bank conglomerate is a major crime syndicate colossus, and
center of the drug traffic money laundering, coordinated by security
agencies, fully condoned by the US Federal Reserve itself. The AIG story is
nowhere complete, the latest being their expensive parties. AIG has caused
major complications, another monster that will resurface periodically at
feeding time. Personally, my wish is to see the RICO law brought forward, at
least to deposit the monster in a cage. In done my way, not a single
additional US Congressional bill would be approved and granted for a bailout
or rescue without rapid investigation, prosecution, turn to state's evidence,
asset seizure, restitution, and imprisonment for dozens of Wall Street
executives, starting with Hank Paulson.
STOCK
MANIPULATION WITH DEEP MOTIVE
Few analysts, pundits, or anchors are aware of the
mammoth conflict of interest involved with the USTreasury Bond sales required
to pay for all the bailouts. JPMorgan, with the essential aid of Goldman
Sachs, plot to bring down the DJIA index and the S&P500 index whenever
the USTreasury conducts auctions or needs Congressional passage of key
bailout bills. They have sold $194 billion of Cash Mgmt Bills (CMB) in the
last two weeks, today $70B, tomorrow another $60B. The big stock declines
seen recently work to the BENEFIT of the USTreasury and US Fed. as agent for
auctions. TBill yields are down near zero, in case you have not noticed, with
principal prices corresponding almost as high as the bond permits. The USGovt
is conducting auctions for TBills at top dollar prices, when its credit
rating should be caving in radically upon downgrades. These USTreasurys are
destined to enter default at a later date, where the loss to foreign
investors will be maximized. Most of the US public has savings dominated
by stocks, with little in bonds. So the US public is being fleeced,
coming and going, since even money markets contain toxic mortgage bonds. Look
for the stock market decline to come to a surprising end when the USGovt has
completed the majority of their planned emergency supply sales via auction.
The Wall Street tactics have recently turned more
vicious and devious, actually creating volatility, producing fear for
political purpose. They accuse hedge funds of driving up the crude oil price,
rendering great harm to the US Economy and US citizens. So they urged
unsuccessfully the Securities & Exchange Commission to force hedge funds
to reveal their speculative positions. The Wall Street thieves and conmen
wish to learn details on hedge fund positions so as to target them illicitly.
In a queer twist, JPMorgan has benefited from an interesting double kill.
They exploit hedge funds, wreck them, then encourage them into the fold at
JPM in brokerage accounts, where their private accounts are rendered
vulnerable under the new US Fed. rules. JPMorgan is a monster predator at
work, which is permitted to manipulate markets and clients with total
impunity.
There is one more detail. Lest one forget, Goldman
Sachs was exempt from the short rule restriction placed on a few hundred
financial stocks traded. The reason had something to do with market stability
and integrity assurance! Goldman Sachs clearly profited from the ups &
down in the Dow and S&P500, lifting stocks after Congressional
agreements, pulling them down before those agreements. JPMorgan and Goldman
Sachs profit handsomely when the USGovt Plunge Protection Team pushes the
stock indexes up with their usual methods. Of course JPM and GSachs are the
managers of the PPT efforts. YES, IT IS TIME TO PUKE NOW!!!
HIDDEN USGOVT
COUP BY WALL STREET
The US Congress has been subverted by intimidation
and ignorance, maybe bribery. Regulators and law enforcement bodies are mere
accomplices. The entire US banking system has undergone an unprecedented
grand nationalize initiative, including the financial system, when
considering the mortgage and insurance giants. The total bailouts are huge
when put into perspective. This is a hidden coup, complete with deep fraud,
corruption, and ruin for both prosecutors and whistle blowers. The US Dollar
is caught in the middle of a black hole scrambled with fraud. Paulson is the
new Chancellor of US Inc, Bernanke the new Currency Lithography Manager, and
Sheila Bair the Investment Banker (a la Goldman Suchs).
Paulson assumes all powers over the financial state from the president, via
the banking industry control.
The government bailout redemption of $trillion past
fraud closes the loop. Bernanke manages all efforts to use printed money for
the purpose of buying worthless counterfeited and fraud-laced bonds, buying
commercial bonds and posted collateral among businesses, as well as making
printed paper products available to foreign central banks in relief of past
fraud. Bair will act as the director of slaughterhouse traffic for JPMorgan,
which needs a steady supply of bank deposits to offset their destroyed
balance sheet from continued credit derivative implosion, thereby betraying
the chartered FDIC pledge to protect bank depositors and senior bank bond
holders through liquidation procedures, with full recognition of expedience.
Hail to the king, long live the king! The US public seems so dumbstruck
that it cannot demand even full disclosure of the process, let alone private
offshore bank accounts for the new leaders of the successful coup.
The coup formalizes a climax to a Ponzi Scheme. A
pyramid scheme is a non-sustainable business model that involves the exchange
of money primarily for enrolling other people into the scheme, without any
product or service bearing true value delivered. With the ongoing steadfast
support offered by Alan Greenspan, they were able to maintain an incredible
Ponzi scheme. They sold financial toxic waste products in the form of
Mortgage Backed Securities (MBS), Collateralized Debt Obligations (CDO),
Structured Investment Vehicles (SIV), Unidentified Financial Objects (UFO),
and Credit Default Swaps (CDS). My favorite remains the UFOs. The corruption
of politicians in Congress enabled the process, with relaxed guidance by the
Financial Accounting Standards Board (FASB). The two key ingredients for the
Ponzi Scheme are a mythological ideology and a high priest to endorse the
game from a credible pulpit. Alan Greenspan claimed legitimacy of the US banking
system, blessed credit growth and fractional bank practices as beneficial,
and praised risk pricing systems using credit derivatives as sophisticated.
The high priest used to be Greenspan, but now a tag team has replaced him.
Hank Paulson is the spearhead for the great coup of the US financial
system. Usage of short restrictions rules has been key to both instilling
instability at necessary times, and raiding hedge funds. US Fed. Chairman
Bernanke swaps USTBonds for any piece of bonded garbage known to mankind.
Mammoth placements of leveraged trades by Wall Street firms make for some of
the most grotesque insider trading in US history.
DECEIT &
INTIMIDATION
The lies, deceit, backroom pressure, and fleecing of
the American public is deep. Take the Emergency Economic Stability Act. Most
of the initial $250 billion outlay was not devoted to American bankers, but
rather to foreign bankers, primarily in Europe and England,
and to purchase preferred US
bank stocks. The US
public was not told about this redirection, which constitutes misallocation,
misappropriation, and fraud. Tremendous backroom pressure was exerted at
every step. The underlying assets involved in swaps do not even have to be
US-based mortgage bonds. The formerly submitted Paulson Manifesto was revived
in a power grab, complete with considerable infighting and squabbles, since
Morgan Stanley was given favor. The usage of funds to buy investment stakes
in the giant US
banks is yet another direct Fascist Business Model tactic, assisting banks
close to the power center, yet reeking with corruption. The sickening irony
is that they have no more money to disseminate and distribute. They cannot
reveal their lies until they formally request more Congressional funds. Much
discussion has come that the USGovt should adopt the Swedish model in the
resolution of the current crisis. Not in a New York minute!! That would
require heavy stock and bond losses, and more transparency of scum.
Interestingly, the market discounts words as worthless, while bailout actions
fail to produce even a positive reaction for a full day, until Monday last
week when the Dow Jones Industrial index rose over 900 points. That was
clearly Wall Street engineering a profitable short cover rally. Check S&P
futures positions beforehand, if you can. The credibility of the US Fed. is
close to being destroyed. On October 15, the same Dow Jones index fell over
700 points, almost 8%. Even the global rate cut was rejected by stock
markets, a major insult.
Intimidation of the US Congress has been huge and
powerful, similar to when the Patriot Act was passed in 2002. The Congress
was actually threatened by martial law in the cities of the United States
if the big bailout package was not passed two weeks ago! This was not
reported on CNN or CNBC, but C-Span did cover it. The mobilization of the US
Army for civilian control is well known in the past couple weeks. See the
Third Brigade back from combat duty in Iraq. This account came from Rep
Brad Sherman of California.
To achieve supposed financial stability, the nation succumbed to
totalitarianism by Wall Street thieves, conmen, fraud kings, and criminals.
Instead, the bailout only covered up $trillion fraud. My position has been
very stable and consistent, that such tactics are typical characteristics of
the Fascist Business Model. The state merges with the large corporations, who
proceed to terrorize the citizenry after unspeakable protected corruption and
theft. To object is to be labeled unpatriotic!
TOP DOWN SOLUTION
FAVORS THE ELITE
The top-down approach used to date aids the wealthy
bankers, while the homeowners are denied aid. That aid is promised but rarely
arrives. The fundamental problem here is that billion$ are devoted to shore
up insolvent banks, to redeem their worthless (or nearly worthless) bonds,
and to give a giant pass to the executives. Trust has eroded throughout the
system. Banks distrust each other's collateral. The result is that eventually
the US Economy will enter not a recession, not a depression, but a DISINTEGRATION
PHASE. Despite Bernanke's studious efforts, borrowing from revisionist
history, his liquidity is nothing more than bailouts at the top for the
perpetrators of the housing bubble and mortgage debacle. The bank system
benefits little inside the US
walls of finance. A bottom-up approach might have had a chance to succeed,
but a top-down approach is a sham. To expect a top-down solution that
actually relieves the housing inventory logjam is insane. That is like
feeding a teenager with meals placed inside the human rectum, expecting
nutrients to find their way to the rest of the body! The credit mechanisms do
not travel upward within the pyramid, but rather in the downward direction,
starting with a borrower, a good collateralized risk, and an underwritten loan,
when plenty of lending capital is available. The US public has bought this stupid
‘Trickle Down' philosophy for years, learning nothing. The US Economy
is on the verge of collapsing. Short-term credit is being denied at key
supplier intermediary steps, soon to result in recognized disintegration.
The primary practical objective of this corrupt trio
(JPM, GSax, FDIC) is to avoid Credit Default Swap fires, which would bring an
end to their reign of terror. This US Economic failure is in progress and is
unstoppable. The 1930 Depression resulted after monumental credit abuse from
the bottom up, as hundreds of thousands of people leveraged investments 10:1
with stocks primarily. The 2000 Depression will come after monumental credit
abuse from the top down, as hundreds of big financial firms leveraged
investments by 7:1 and 20:1 with bonds primarily. The most absurd of all is
the CDO-squared, leveraging upon leverage. Total seizures have crippled the
banking system. Short-term credit has largely vanished, as letters of credit
are routinely not honoured at ports in the United States. The panic will
continue, especially when supplies dry up.
GOLD & SILVER
AWAIT THEIR EXALTED STATUS
We are witnessing the disintegration cited in my
recent forecasts. It is a systemic failure, marred by lost confidence and
trust in the entire financial system. Expect foreigners soon to pull the rug
from under the American syndicates in control. Several key meetings have
already concluded, totally unreported in the US
press, which occurred in Berlin Germany.
Consider it the Anti-G7 Meeting. Implications are profound, and involved the
Shanghai Coop Org tangentially, since its member nations possess so much new
commodity supply. Consider it the Anti-NATO group. An important and powerful
alternative financial system is soon to spring into action, including
high-level bilateral barter. Those who expect the current US Regime to
continue their financial terror are in for a big surprise.
Expect defaults in the COMEX with gold & silver,
whose prices for paper vastly diverge from physical, to the anger of
foreigners watching. They hold massive precious metals assets. Disparities
now contribute to powerful forces, sure to break the current system. Grand
systemic changes come. THE RESULT WILL BE A BREATH-TAKING DISCONTINUITY
EVENT.
Ironically, the more inner anguish felt on the
falling gold & silver prices, the closer we are to a new financial
framework, with the US Dollar relegated to a Third World role. A REPLACEMENT
GLOBAL RESERVE CURRENCY HAS ALREADY BEEN DECIDED UPON. Its launch awaits the
proper moment. The Americans are last to know, as usual. The US leaders
are under the illusion of being in control!
THE HAT
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Jim Willie CB
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