Tag Archives: Congress

WHEN THE NEXT “CRASH” HAPPENS …

(BREAKING NEWS – OP-ED) — The author of this post is republishing a video done by Greg Hunter with Ellen Brown (an attorney and an advocate for public banking) who I have been on the air with.

Take away from this video as you wish, but one of my readers who alerted me to it got the chills when she saw it because Brown’s comments align with several other sources who are confirming the same thing.  Watch the video (22:21) and do the math:

ELLEN BROWN

MY THOUGHT PROCESS … IT’S NOT “DOOM AND GLOOM” … YET!

There is no doubt that this current “crisis” we’re in has us all in a state of confusion as to what to expect for a final outcome.  This is why I spend a lot of time doing research and talking to people about likely scenarios in the event of a cyclical crash. The last major one was in 2008 and between 2009 and the beginning of 2015, there was a huge collateral grab of over 10-million homes in America.

Everything that has happened since 1999 (when the Glass-Steagall Act was repealed) has led up to this mess (where we are now).  Even if we recovered from the 2008 debacle, there is more to come because all of Congress (the folks you put your faith in that keep making promises that your future will be better) has done is “kick the can down the road”.  Congress keeps spending money … and spending money … and spending money … money it doesn’t have.  They borrow it … and borrow it … and borrow it … and the merry-go-round has to stop sometime.

Congress allowed the banks back into the securities markets and Bill Clinton signed off on it.  So the next time you put your faith in your elected leaders, let’s bring this “home to mama”.  Brown makes a statement after being asked to predict when the next crash would happen and made reference to 2015 and her interviewer mentions Barack Obama, which means this video could be a prediction of at least our worst fears of things to come (as it was recorded some time before 2015).

This is a big gamble for over half of U.S. consumers.  There is no argument that we have a fractionalized banking system that gambles with virtual, fiat money on ratios that are (IMHO) way too far outside of what I’d consider smart banking. The FDIC, a corporation which insures every depositor’s account up to $250,000, does not have the reserves to cover all of the depositors’ money, which basically implies that we could be facing what happened in the Great Depression and in Cyprus in 2012.

Every time there’s a crisis (and you can’t argue with me here), everyone demands that our government “do something” to “fix it”.

Fix what?  

We have been conditioned to believe that in order to “fix” things, we just throw money at whatever crisis comes our way and make it stop.  Unfortunately, with the undisciplined behavior continuing to plague America (more than just essential travelers that continue to migrate about for non-essential behaviors), this current “crisis” (based in more than just a common cold thanks to China) is several months from being “over” enough to safely come out of our homes and there’s still no guarantee that it won’t fester up again (into another pandemic). We will still have to think “social distancing” when we’re out and about and most of us will have learned to make our own hand sanitizer and face masks by then.  For at least the next year, plan on making those two things or getting a supply of them at the ready.  One of the conditions we will face is limiting our travel and public exposure.

Congress passed the stimulus package ($2-trillion) and loaded it up with pork (and we let them get away with it).  

If the average person on the street asked where the money was going to come from, they’d have no idea because most of America does not understand finance and derivatives.  They may teach this stuff to MBA’s in college, but the average “Joe” has to learn by experience.  In the last “crash”, over 10-million families were displaced.  Investors were displaced. The economy was upset to the point where tens of billions of taxpayer dollars were “thrown at” THAT crisis in order to make it go away.

This corona-crisis was not of our own doing. However, the same results occurred.  Many of you think this is another “stab” at population control.  But most of you wanted the government to do something. right?  That’s the “conditioning” I’m talking about here. You point fingers and assess blame at everyone and everything, no matter what.  This is where our two-party system has failed us.

After 9-11, another crisis which many think was manufactured as a “false flag” by our own government, we all bleated that we wanted to be more “secure” and the government gave us the USA Patriot Act (without reading it before they passed it).  When a crisis occurs, people think Congress can fix whatever ails the country.  As you will learn in this lifetime (I believe), this Congress cannot fix a Cypriot-style bank raid.

Running to your banks right now and draining all of your money out of it (bank runs) will only precipitate more panic. Having one-month’s worth of funds in your account in M2 (checking) to pay your bills (as Ellen Brown recommends in the video) is only smart because we live in a system we allowed to be created by Congress.  Congress repealed the Glass-Steagall Act and made our futures even more riskier than it was before the Great Depression because we didn’t have the size of population then that we have now.  If and when a panic of this magnitude should occur, it is likely that people will be blowing up Congress’ phone lines demanding an immediate emergency resolution from the very banks that cleaned out our life savings.  However, Congress is the entity that passed the Federal Reserve Act in 1913 and allowed private banking entities to control our economy using a fractionalized, fiat system of “legal tender”.  Ever since then, this country has been plagued by cyclical crashes.

There is not enough “cash” (M1) in circulation to cover this nation’s debt.  M1 (currency) is issued by the U.S. Treasury in the form of a “Federal Reserve Note”.  What is a note?  (a promise to pay)

Pay when? 

When the American consumer loses faith in the banking system in this country and loses faith in the dollar, everyone will realize what “they’re on the hook for”.  American consumers who have money in banks are at risk.  They always have been.  Did you read the checking account rules when you opened your account?  All deposits become the property of the bank.  That means if the bank closes, you lose what you have on deposit. This is why we should never keep more than one month’s worth of debt obligations in our checking accounts at any given moment.  Those who are living hand to mouth will not feel a “cash drain” as much as those who have large amounts of money stashed in multiple accounts in the banking system.

If you’ve read the FDIC’s rules, it may insure up to $250,000 of each deposit account, but it doesn’t have to reimburse you every penny you lost right away.  In fact, with the hordes of consumers demanding their money, it’s likely you’ll be getting checks for $1 a month until you die or your deposits get reimbursed, whichever comes first. Some system of things we’ve allowed Congress to create for us, huh?

Many of us utilize M3 (credit cards) because banks can create credit card funding by securitizing all of the credit card accounts into derivatives. Those of us who maintain high credit card balances will naturally have a lower credit score because they put those derivatives at risk.  Those who use their credit cards responsibly have higher credit scores because they put the derivatives at less risk, especially when they pay more than the minimum payment every month.  Going all out in M3 when a crash occurs doesn’t hurt you directly because the derivatives are going to take the hit.  The investment markets will take the hit instead.  The insurance companies who have to bail them out when you don’t pay your credit card debts (because you’ve got no money to pay them with after the banks close) will also go broke because, like the 2008 crash, the insurance companies got caught in a derivatives “squeeze play”.

Bottom line here … those who are living on M3 right now are actually in a better financial position to survive this crisis because of fractionalized banking working in reverse.  We can always recover from credit extensions because we have bankruptcy courts that can deal with our “excesses”.  We can’t recover if all of our cash reserves are suddenly “seized” by the banks in order to “prop themselves up” during a crash.

Do we know WHEN the next crash will occur?   Nope.  But we know that crashes are cyclical and that another “crash” in coming, largely in part due to this current “crisis”.

What does China have to gain by “poisoning” America?

I can already anticipate a serious trade deficit if not a full embargo from the U.S. government.  Why would we continue to trade with the enemy?  Wouldn’t that violate a whole host of U.S. criminal codes?

I think most everyone agrees that China unleashed a “controlled viral scenario” on its people (as a test of what it could do to the rest of the world) … and contained them (to contain the spread to its own populations) while sending asymptomatic travelers packing to all points throughout the world, where they spread the virus, without informing the world of the harm it would be soon facing, in time enough for the rest of the world to shut it down effectively.  Imagine what would have happened had we had no warning at all?  The warning we got was two weeks late! Thank God it wasn’t two months late!

The problem we have with this “crisis” is that Americans refuse to let a “cold” interfere with their daily ritualistic “tasks” they are so accustomed to performing.  We are conditioned to the point where once that “comfort zone” is upset, we “lose our shit”.  We are not conditioned to “stay put” for long periods of time.  There is not enough law enforcement to control the flow of travelers who might be asymptomatic. Most of the public knows this.  There are not enough jails and concentration camps to hold all of the violators.  Thus, the government has to enlist our cooperation by being “good Americans” and staying home and tolerating this crisis.

There comes a point in time in everyone’s life when serious rationale has to kick in …

Call it Darwinism (survival of the fittest) … call it a “life change” … call it whatever you want. The state of affairs in this crisis is worsening because we are not doing enough to “contain it”.  We keep demanding of government and not of ourselves.  Our forefathers had to demand of themselves, otherwise, they wouldn’t have survived long enough to pro-create … and this is where we are today.

With this latest “crisis”, it appears that the bond markets in America have been “nationalized” by the Fed.  This too is a reality check because the Fed bought up municipal bonds, junk bonds and corporate bonds and treasury certificates.  It’s kind of like collateral to “cover the spread” of the amount of debt it just had to create (virtual debt rooted in M3) “out of thin air” (on paper) by an Act of Congress.

People where I live (in Florida) are now preparing for hurricane season.  So we’re in for a double whammy if a major storms hits us.  We would have-not only a corona-crisis but add to that a severe storm crisis, which could potentially displace a lot more than just the virally sick being cared for in hospitals.  Anything the likes of Hurricane Katrina anywhere in the U.S. could put an entire segment of the population (think of what happened in New Orleans’s 9th Ward) through a major catastrophe to the point where civil unrest is all but certain because people will be too distraught to sanely rationalize anything else but survival even if it means killing someone else for food, water or shelter.

Spend time looking at the entire scenario surrounding Hurricane Katrina.  Like this crisis, the government took too long to respond. With the lack of timely response, everyone is now pointing fingers again, starting with the media who is “creating controversy” and “fake news” to polarize America far worse than what the attempted “impeachment” crisis did.

The amount of casualties surpassed 9-11.  A lot of New Orleans law enforcement “bugged out” with their families (i.e., “Screw this! I’m not sticking around here and getting killed by this storm!”) and left the city with lack of safety support.  The Superdome turned into a rape center of feces and corruption.  Mercenaries had to be brought in to quell civil unrest.  People were shot to death.  Deal with that in your neighborhood.

If this worst-case scenario were to play out … the banks close … you lose all your money … you have no real “reserves” at home to pay for immediate needs with … your food supplies run out and the grocery store shelves are empty (toilet paper will be the least of your concerns) … your utilities get shut off … you start getting default notices from your bank on your mortgage … your insurance company denies your damage claim from a storm and you’re displaced all because you couldn’t pay your premium … are you prepared to deal with that?

Over 60% of Americans are not!

Just look at the current crisis and see how you’re holding up.  Now factor in the variables I just talked about in the last paragraph and re-evaluate your scenario.

We as Americans can no longer afford to “kick the can down the road”.  This will come back to bite us … and it will hurt. Take whatever precautions you can and be “the responsible one”.

The life you save may be your own.

BTW … HAPPY EASTER!

 

 

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Filed under BREAKING NEWS, OP-ED, Securitization Issues

FIFTH U.S. CIRCUIT RULES FHFA UNCONSTITUTIONAL!

BREAKING NEWS — OP-ED — This just received out of New Orleans … 

Collins et al v Mnuchin et al, 5th App Cir No 17-20364 (Jul 16, 2018)

The 5th Circuit Court of Appeals denied damage awards to three investors who claim they lost money as shareholders in Fannie Mae and Freddie Mac due to the toxicity of the 2008 mortgage markets and challenged the constitutionality of the Federal Housing Finance Agency.  The Fifth Circuit failed to award damages (as expected) to the investors but ruled that the FHFA, by its very structure was unconstitutional due to the way it was structured to act as a conservator for the two GSE’s and thus violating the Separation of Powers Clause.  You can bet that the FHFA will appeal this ruling to save its own ass.

As you recall, the CFPB met similar fate in a ruling issued by a federal judge in New York.  The ruling is here:

CFPB et al v RD Legal Funding et al, U.S. S.D. NY No 17-Civ-890 (Jun 21, 2018) 00890-Order

Why doesn’t any of this surprise me?  This is why we need public banking.  The U.S. Government has set up legislation to protect the banks under 12 U.S.C. but it shows a poor example of financial leadership when its own GSE’s operate without transparency, hiding behind a wall of assignments and secrecy in the land records.  Most people recognize that when you put money into an investment vehicle, you risk losing it, which is exactly what happened to the three investors who sued Fannie and Freddie through the FHFA.

Tough toodles on the investors, huh?  Why do people keep trusting that the U.S. Government is managed by sound financial policy when its own Congress is self-serving and bipolar in its very nature.  This is why we need public banking and to hell with the federal reserve.  We have one public bank (The Bank of North Dakota) that IS properly managed and is financially sound (which represents the interests of business and consumers in that State).   However, that being said, fiat currency is fiat currency and as long as we have Congress writing checks its body can’t cash, further driving us as a nation into debt, taxing its citizens into oblivion, using “Federal Reserve Notes” (promises to pay) as legal tender, this country is in trouble, because there’s nothing backing that debt.  We went off the Gold Standard in 1975 (thanks to Nixon).

Most people also do NOT recognize that Fannie Mae and Freddie Mac are administrators for their own REMIC trusts, despite the fact that when properties are converted by assignment and “alleged transfer” to a given GSE that it is likely that the actual REMIC it manages it never mentioned.  Thus, it raises suspicions that the quasi-government entities created to back the mortgage and housing markets are swindlers on paper!

MORE BREAKING NEWS — 

Tonight at 6:00 p.m. EDT, hear Dave Krieger and co-host R.J. Malloy on WKDW-FM Radio (listen live at kdwradio.com; click the LISTEN LIVE button and wait for the show to start) to discuss news of the day as well as what attendees are going to learn at this weekend’s Foreclosure Defense Workshop in Orlando, Florida.  What we’re teaching may shock you, but we’re talking “risk aversion” and this means something to state and local governments whose judges are ruling for banks using phony documents and making false misrepresentations through their legal counsel to steal property across America!  This is NOT for the pro se litigant, so don’t even try.  We have a “game plan” set into motion involving attorneys and specialized witnesses to do the “takedown” in open court!  This show is a MUST LISTEN!

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Filed under BREAKING NEWS, OP-ED, Securitization Issues, workshop