Corruption in Fascist Business Model

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."

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