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Few can
define fascism. Many cannot recognize it. History provides shocking stories of
its past episodes. But its root structural feature is the tight relationship
between the state and large corporations of a nation, which permit enormous
fraud and lead to grand inefficiency, even while aggression and war accompany
its handiwork in an ugly fabric weave. Nowhere is the bond more scummy and
corrupt than with the banking industry, not in general but in Wall Street
where defense of the USDollar has come. That defense was contracted from the
USGovt to Wall Street, whose ties developed into a vast network of
corruption. That cozy relationship led to the gutting of Fort Knox and its
gold bullion in the 1990 decade of so-called prosperity. The 0% gold leasing
resulted in vast speculation schemes, private multi-$trillion profit, and
absent collateral for the USDollar itself. The other cozy connection is with
the defense contractors, where war generates colossal cash flows, some of
which result in kickbacks to Congress. The Fascist Business Model is a cord
to strangle the neck of a nation. The rage of nationalism, the eradication of
liberties, the pursuit of conjured enemies, the constant sense of alert, the
attack on enemies with alienation of allies, all tend to effectively conceal
the theft and corruption. The other tell-tale infection is of inefficiency,
where the most insolvent lead in policymaking, where the most connected are
not the best in class, where the most corrupt are shielded by cronies in
watchdog posts. These ordinary teams have dominated, not from capability
according to the marketplace forces or Darwinism, but from connection to the
power center.
The
United States of America had been the beacon of capitalism and freedom. In
the last 20 years, it has proven to be the epitome of anti-capitalism, shown
mortal wounds from the NeoCon assault on liberty and the more recent
collectivism assault typical of Soviet regimes. The global revolt against the
USDollar is not just an organized movement to protect against a reserve
currency suffering declining value. It is a movement also intended to avoid a
climax in corruption, the likes of which modern history has never witnessed.
The bright light from the beacon has attracted a deadly swarm of moths, which
tragically have enveloped the light completely, masked its wondrous effect,
and disguised the vile cobwebs of fascism. The historians all too well are
aware that the final chapter of a capitalist nation is embedded in fascism,
as its institutions suffer from profound corruption, as inefficiency depletes
the wealth structures, as the system breaks down, as the rule of law vanishes.
CORRUPT BIG BANKS
One must
begin with the banks, whose leaders have formulated the plan at work. Perhaps
their actions began in the removal of Kennedy in 1963, an obstacle in their
path. Their plan was revealed more in the open with the abandonment of the
Bretton Woods Accord, the basis of the gold standard. The most telling mark
has been the Goldman Sachs grip on the USDept Treasury. The Rubin experience
at the London gold desk was crucial. Goldman Sachs is a key Wall Street
funnel toward the USCongress dole, the Financial Regulatory Bill being the
backfire in reform that granted the bankers more powers. See the power to
dissolve any financial firm that threatens the power structure, and see the
protective cover given to firms deemed financially important. The TARP Fund
congame was a clever ruse, a $700 billion segment of the congame. Hidden from
view was the $138 billion reload of JPMorgan, given cover to handle Lehman
private accounts by the Bankruptcy court that convened at 6am on a Saturday
morning in Manhattan. The climax badge of dishonor and fraud was the phony
bank accounting rules permitted by the Financial Accounting Standards Board,
and blessed into law by the USCongress. The big banks in control of the
USGovt were all hopelessly insolvent, but covered. Their quarterly earnings
reports read like an Orwell chapter, riddled with Credit Value Adjustments
and raids from the Loan Loss Reserves. Once in the news back in 2009, but not
forgotten, the failure to deliver on USTreasury Bonds never went away, only
the publicity and spotlight. Over $1 trillion remains a regular feature for
the practice. Wall Street firms indeed found a source of income to replace
their absent stock IPO and corporate bond issuance business. Sell USTBonds,
take in income, and no bond delivery. What a business! The Facebook IPO is the exception, not the rule.
CORRUPT CENTRAL BANK
A debate
brews as to which body is the actual corner office at the helm of the central
bank in charge, the New York Fed or the Federal Reserve itself. Who cares?
They operate in secrecy and with impunity, according to their agenda. The
FinReg Bill did shed some light on this control box, as the USFed $16
trillion so-called loans plus the $8 trillion additional loans were revealed
in a string of unending grants at 0%. To be sure, the borrowers could
purchase global assets in preparation for the next chapter. Two of their most
important ongoing projects are the Exchange Stabilization Fund and the
Working Group for Financial Markets. The ESFund is charged with defense of
the USDollar, but its actual project load extends far and wide in
interpreting what defense is essential. Their reach includes the FOREX
currency market, the sovereign bond markets, the Gold market, the crude oil market,
the S&P500 market, and much more. Entire books can be written about the
ESF history, a cross between an adventure novel and a spy novel. The other
group is more aptly named the Plunge Protection Team for its regular and
frequent rescues at 10am and 3pm when the stock market reacts to the endless
string of bad economic news, all deemed better than expected. The mantras
focused on confidence and volatility obscure the underlying corporate
insolvency, fraudulent accounting, and pursuit of lower valuations. The spy
novel aspect is furthered by the global financial bodies. The Intl Monetary
Fund and World Bank are commonly filled with non-banker agents operating with
agendas to obtain financial information in foreign lands. They are routinely
used as weapons to maintain dominance. The resentment overseas is huge.
CORRUPT REGULATORS
The
entire financial crisis in its fourth year (never to end until debt defaults)
had its roots in the housing bubble and supporting mortgage finance bubble.
The debt rating agencies granted AAA ratings to mortgage bonds of empty
value, based upon the cockeyed notion that an included derivative in a
package could protect like an insurance policy. It masked the worthless value
instead, cover given by the regulatory system. The Gold & Silver market
is without doubt the most corrupted in the world. The naked shorting by the
Big Banks in New York and London is of such magnitude as to cause shock and
disbelief. Certainly no action has been taken, or will be taken. The naked
precious metals shorting is permitted by the Commodity Futures Trading
Commission. The CFTC offers lipservice on position limits, on halting
non-economic positions, and more. They simply obscure the process and muddy
the waters, offering false hope to the silly observers who expect change, as
they ignore the pattern of deceptions. The CFTC is composed of Wall Street
henchmen, just like the Securities & Exchange Commission. The compulsory
arbitration ploy is their calling card for injustice, like with USGovt contractors
on foreign stations to handle crimes at the camps.
The
latest regulatory lapse can be seen with the derivatives. As the Greek Govt
Bond writedowns began in force, focus was drawn to the debt default event.
The lapdog regulators at the Intl Swaps & Derivatives Assn saw fit to
obediently order a redefinition of a default event. If voluntary, even
coerced, the so-called bond haircut was not declared a default by the body
charged with such enforcement, the ISDA itself. Payouts would start a chain
reaction that would cause widespread bank failures. The non-payment of Credit
Default Swaps was a travesty, one to perpetuate as Italy and Spain, even
France, are next in big bond writedowns. The process actually exposes
something much bigger, the unregulated shadow banking system of derivatives.
Policies were written, huge cash flows were developed, fees were taken, but
no payouts will be permitted. In essence, Rome is burning but no home fire
insurance awards will be paid. In my opinion, the CDSwaps and ISDA corruption
will result in court challenges to force insurance payouts, will result in
subterfuge directed against the big banks that underwrote the bad faith
insurance contracts, and will result in more motivated revolt against the
USDollar itself.
CORRUPT MORTGAGE BUSINESS
The
housing bust was bad enough, what with the lost equity, the lost home ATM
machine for essentials and frivolities alike, the American dream turned
nightmare. The mortgage bond bust was bad enough, what with the lost bank
reserves, their lost ability to function as credit engine to the USEconomy,
the ruined intermediary banking cable lines. The twin damage was the basis of
my September 2008 forecast for an economic disintegration and eventual USGovt
debt default. The forecast was a direct consequence of the entire USEconomy
having grown intentionally dependent upon the housing & mortgage bubbles.
That path is still in effect, the grip of the leash on the fascist dog held
tighter with each passing month and year. They can kick the can down the road
while walking the vicious dog, but the road has become narrow and the can has
gone nuclear. The inner workings of the housing & mortgage debacle must
bring attention to the MERS title database and the profound fraud bound in
the mortgage bonds and Fannie Mae, the clearinghouse. The Mortgage Electronic
Registration Systems enabled the same home titles to be used in multiple
fashion, since run by Wall Street extensions. The MERS permitted easy fast
title transfers as the bonds changed hands rapidly. Since 2009, the database
has been denied legal standing in home foreclosure challenges, labeled a
corrupt practice by several state courts. No remedy is even pursued. The
practice of using home mortgage payment streams in duplicate fashion was
common and rife within the system. The crowning blow to corruption exposure
has been the continued mortgage contract fraud. The courts have been very
occupied with resolutions and punishments.
The
reason home loans have never had their balances adjusted for the benefit of
the embattled undewater homeowner is simple. Hardly the unwillingness of
banks to take losses, but rather the reluctance of the big banks to have
exposed the colossal fraud in both duplicate income stream on the mortgage
bonds but also counterfeit bonds. So Fannie Mae & Freddy Mac were
nationalized, put safely under the roof of the USGovt. The corrupt tagteam
firms are the clearinghouse for several $trillion fraud schemes in convenient
manner. The Fannie Mae thefts of $1.5 billion from 1988 to 2000 remain well
documented, complete with retaliations, the finger of accusation pointed at
the White House. When the Hat Trick Letter was started in 2004, certain
people were locked in debate, as the Jackass argued that the USGovt harbors
the largest criminal syndicate organizations on earth. That perception and
accusation has been very clearly confirmed, acknowledge by the informed,
toward which some remain oblivious. The newer phenomenon noticed is that too
many people prefer to ignore the facts and cling to fantasy, in order to
protect their comfort level.
CORRUPT WARS
War is
never good for an economy. It costs much money. It costs materials. It costs
lives. It results in destruction. No trickle down effect of efficiency
results, despite the propaganda about jobs. Relations are harmed, as allies
are often alienated. The endless undeclared wars since 2003 have cost the
USGovt $4 trillion in the last ten years. The creation of enemies and
threats, even locations to spread freedom, have been at best highly
questionable and at worst a total farce wrapped in fabrication. The chief end
product in Iraq is crude oil, whose supply has been guaranteed by the war.
Little publicized were the ample array of oil contracts with China and other
nations, all torn to shreds after the liberation and annexation. Remember the
odd story of yellow painted wooden bars and copper bars found in the Iraqi
Central Bank. All false stories, as their central bank was looted of its gold
bullion by US forces. The prevalent war service contractors led by
Halliburton remain a fixture. Despite numerous court cases proving fraud and
over-charges, they continue with a monopoly on the contract service. Recall
the missing $5 billion from the Iraqi Reconstruction Fund. It was never
found. The USGovt agencies never looked for it. The sitting president called
it an acceptable loss given the magnitude of funds flow and importance of the
war. Little known was a $2.3 billion transfer from the same fund by former
agency head George Tenet. Suspicions swirl that the funds were directed
toward groups designed to bring about a global totalitarian government, whose
guiding light is a former Secretary of State and New York University
political science professor with a funny accent.
Two
indelible marks come from the wars. They further the dominant global
narcotics role for USGovt agencies, and the deep Wall Street dependence upon
money laundering and fees. Some banks have pled guilty to money laundering,
like Wachovia, but the fines were less than 1/30-th of a penny per dollar
involved. The US press provides regular and frequent devoted cover for the
wars. The other indelible mark is the motive for liberating certain nations.
The Libyan War was brief, but the bounty was great. The London and New York
banks benefited from the 144 tonnes of gold bullion seized. It will likely
never be returned to the Libyan people, regardless of any coalition
government formed or pledge toward freedom put to parchment. My open question
continues to focus on how much gold bullion Syria has. Probably not much at
all, since no oil or mineral wealth. Sand has low value. Another more recent
question is how widespread the practice will become for oil trade settlement
with Iran in gold payments. See India and Iran.
CORRUPT EXCHANGE TRADED FUNDS
The Wall
Street and London bankers set up the precious metals Exchange Traded Funds.
They were clever. They have duped many people, including the hopeless scribe
Adam Hamilton. He could not read a prospectus, not a balance sheet, nor an
inventory report to save his soul. To be sure, he is a good man, but as a
forensic analyst, he is Mr Magoo in human form, almost a poster boy for the
gold cartel dupes alongside Dennis Gartman. The backdoor looting of inventory
from both the GLD gold fund and the SLV silver fund are well documented.
Shares are shorted, probably by their custodians, and metal bars are removed
from inventory. Nothing complicated here. Lazy witless investors continue to
invest in both GLD & SLV, without awareness of their deep corruption.
They can buy gold and silver with a mere click, or so they believe. Instead,
they divert demand from physical metal to the syndicate coffers, where the
funds are used to short the metal, and to keep the supply lines coming to
satisfy the rapidly growing demands for delivery. The other many Exchange
Traded Funds do an exemplary job in controlling several important
commodities. See the USO fund for managing the crude oil price. It has lost
over 60% value relative to crude oil in the last decade. See the GDX fund for
controlling the entire precious metal mining sector, managed by Goldman
Sachs. The financial press assists the process by advertising and
recommending the corrupted ETFunds, a valuable fixture in price controls.
Many speculators use the GLD & SLV for their liquidity and ease of usage,
ignoring their illegitimacy. The corrupt ETFunds go hand in hand with the
flash trading corruption, also known as High Frequency Trading. It is insider
trading by any other name, protected by FBI. See the Goldman Sachs unix box case
three years ago that peeked at the order flow. The corrupt ETFunds go hand in
hand with the naked shorting practice directed against mining stocks,
organized by Wall Street firms and executed by associated hedge funds.
CORRUPT COMEX
The MFGlobal
failure and theft of private segregated accounts has indirectly exposed the
corruption of the COMEX itself. The bankruptcy trustee has been tarnished,
having confiscated futures account receipts, thus making proof of theft and
quantity impossible. The MFGlobal case should have been treated as a
brokerage firm collapse, thus granting highest priority to private accounts,
and making them full. Instead, the case was treated as a financial firm
collapse, thus putting the private accounts at the bottom of priorities, and
rendering them pilfered. The MFGlobal thefts will eventually lead to the
COMEX being vacated of participants, since accounts are no longer secure.
Entire Compliance Departments are banning the usage of COMEX accounts in
financial firms and risk management outfits, a signal of the end being nigh.
In time, the COMEX will become a cash & carry supermarket, but distrusted
even for that lowly mart function. They will be devoid of inventory, exposed
as a corrupted paper factory attached as a vital appendage to Wall Street.
CORRUPT ECONOMIC DATA
The
entire system requires the constant banter of recovery, legitimacy, hope, and
integrity. All are sorely lacking, glaringly lacking. The economic numbers
have few honest series of data. My favorite honest series remains the income
tax payroll withholdings, which screams of chronic recession in basic tones.
Focus on three corrupted series. The Gross Domestic Product as calculated by
the USGovt prefers the sequential method of comparing one quarter to the
next, then multiplying by four. But ingrained are the fabled ample hedonics
and imputations. Lifting the numbers from perceived quality improvements and
the payments from right pocket to left pocket for individuals is laughable.
The true GDP is half the size reported when stripped of nonsense fantasy. Its
rate of change has been running at minus 2% to minus 5% growth (powerful
recession) for the last four to six years. That explains the poor job growth
and inability to make home loan payments. The Consumer Price Index routinely
removes home rent when rising, includes home prices when falling, substitutes
chicken for pork, sawdust for grains, stone pebbles for beans, and more. It
also uses the same hedonics of quality improvements to suppress prices in the
calculations. The GDP and CPI methods are interwoven exhibitions of
statistical incest.
The Jobs
Report is a joke each month perpetrated upon the American people.
Inconsistencies abound. The mythical Birth-Death Model is handy for job
creations, supposedly to reflect the uncounted small business sector. That
sector is under great duress. Every March, a revision downward is made
between 300 thousand and 700 thousand jobs, never noted by the financial
press. The correction puts the series back into kilter. The USEconomy remains
the weakest of all industrialized nations. Its corruption remains the highest
in data reporting. See American Airlines for job cuts. See the Manhattan
banking sector for job cuts. See state and local governments for job cuts.
See college and university construction projects for job cuts.
GOLD COIL READY
The
coalition against the gold cartel is making its presence known. They come
from the Eastern realm, not necessarily from China, according to word passed.
They shun publicity, but their handiwork is clear, as the heavily defended
1650 level was over-run and trampled. The upcoming planned event of the Greek
Govt Bond default will be an important chapter in modern history. The
collateral damage to Spain, Italy, and France will not be controllable. The
exposure from the denied CDSwap debt insurance payouts will mark a turning
point in bank corruption. They took in $trillions in contract premium, earned
$billions in fees, and have blocked all payouts by redefinitions and ISDA
strongarm methods. The required recapitalization of the Western big banks is
an unavoidable event. The task will require several $trillions. The backroom
coverage of the CDS payouts, if ever done, will require tens of $trillions.
What is clear is that Quantitative Easing is the mainstay policy, but also
that Global QE will be widely recognized as the device to avoid systemic
collapse. The Gold & Silver prices will rise accordingly, as the paper
monetary system is ruined further. The dons and castle lords will attempt to
replace the failed paper system with another paper system, having given away
their plan at the Davos Economic Summit conference. What a great location to
conduct 300 arrests, a missed opportunity every year.
A unusual
note came from a distant but informed niche, his office in step with gold
corners and their many developments. He has commented in the past on the gradual
pace of corruption taking its toll on the current system. He wrote, "The system will collapse and files
from regulators and law enforcement will be destroyed during the collapse.
The 911 event was an orchestrated event within the reaction matrix, a mega
trial run to see how people would react and how the system would deal with
the destruction. It was also the site one of the biggest gold heists ever.
ScotiaMoccatta's gold in the vaults at the WTC was completely looted, never
to be recovered, a well documented but poorly known story. The coming
collapse is not a question of if but when. Only hard assets such as precious
metal, agricultural assets, and other essentials will survive. Pay little
heed to banks, the CDS contracts, the mortgage fraud, and all the other
schemes these banksters run. The Roman Empire's back was broken. This
cartel's back will be broken too. So just sit back and relax if well
positioned in gold & silver."
THE HAT TRICK LETTER PROFITS IN THE CURRENT
CRISIS.
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