Tag Archives: Ponzi Scheme

Michael Noonan ~ Banker Grip On Prime Ministers Not Over

To leave the EU or not to leave the EU, that is the question?  Pick any hour, and you will
have an answer that is good until the next hour passes.  While there have been cheers and
encouragement for what the newly elected Syriza party has been telling the EU, that no
more debt enslavement will work for Greek citizens, it could very well turn out that
Greece’s Prime Minister Alexis Tsipras and his Minister of Finance Yanis Varoufakis are
waiting for the best deal for themselves before ensuring that Greek citizens remain so
enslaved.  It is extremely difficult to fight the elite’s system and win.

While this is a rather cynical view, it appears that Greece’s new leaders are doing whatever
they can to stay within the failed EU system instead of maintaining a hard-line by refusing
to take on more debt and not pay the current debts owed to the EU.  An ace up their
sleeve, making a deal with Russia, that could possibly include China pitching in, whereby
Russia would offer putting part of their natural gas pipeline through Greece and ensure
billions of Rubles in income, [fewer and fewer countries want to use the fiat dollar as a
trade basis anymore], is not actively being pursued.  Instead, all of this back and forth
with making an acceptable deal or not is what fills the headlines for this story that
gives rise to our skepticism.

If the Tsipras/Varoufakis duo fold, it will not auger well for silver and gold, at least for a
while longer.  Greece opting to “cut a deal with the devil” will prove that however fragile
the staying power of the European Union, the “dead-man-walking” EU still prevails.  The
message would then still be clear:  people do not matter, only the viability of a [failed]
banking system counts. and PMs remain pawns.

Continue reading

Charles Hugh Smith ~ 2015: Everything Can Be Fixed by Printing More Money

“To question money-printing as the one-size-fits-all solution to every economic problem is to question the power structure of the status quo.” – C H Smith

CharlesHughSmithIt is tiresomely obvious that we live in an era dominated by the idea that virtually all economic difficulties can be fixed by printing more money. There are various means of distributing the new money, but the dominant ideology is really very simple:whatever the problem might be, the solution is to print more money and/or issue more credit.

If the problem persists, clearly, we didn’t print enough money/credit.

That such a simplistic formula might not work cannot be questioned, as money-printing is the source of all political and financial power. To question money-printing as the one-size-fits-all solution to every economic problem is to question the power structure of the status quo.
And that, of course, is not allowed.

Today’s essay on money-printing and power was written by longtime contributor/ essayist Jeff W. Jeff titled his commentary How You Can Tell If You Are Living under the Rule of Money Printers.

Jeff W. ~ How You Can Tell If You Are Living under the Rule of Money Printers

“In most of human history, people have lived under the rule of taxing authorities. The way a taxation system works is easy for anyone to understand. Businesses and individuals pay taxes to the state, and the state spends that tax money on armies, road construction, police, courts and jails, education, propaganda, lavish lifestyles for the top dogs, etc.

Continue reading

Charles Hugh Smith ~ 2015: Now That The Fed Drove Everyone Into Ruinously Risky Bets….

“It is impossible for everyone to sell at the top before the implosion; the assets are owned by someone all the way down.” – C H Smith

CharlesHughSmithThe central bank/state plan for 2015 is a continuation of the same plan that’s been in play since 2009: drive everyone with any cash or capital into ruinously risky bets. The problem for the central bankers/states driving everyone into risk assets is the yields on these bets are entering the exhaustion zone of marginal returns.

In other words, what worked wonderfully for years no longer works at all.

Another way of saying the same thing is apparent stability gives way to instability and apparent predictability gives way to unpredictability. The hubris described yesterday (2015: A World Ruled by Hubris, Willful Blindness and Desperation) arises from the overweening confidence of central bankers that this same tired gambit of pushing assets higher by pushing capital and speculative money into risk assets can be played successfully with no limits.

But there are limits. A short list of limits might include:

1. Marginal borrowers/buyers: the game now is to lower interest rates and mortgages rates so ever-more marginal auto and house buyers can qualify for ever-less prudent loans.

This works until it doesn’t, as marginal borrowers/buyers are last on, first off: they default at the first lay-off, medical emergency, etc. Defaults tend to pyramid in recessions as lay-offs and financial stress spreads quickly through those living paycheck to paycheck. Continue reading

Gerald Celente ~ Guns, Gold, Oil And Peace [Video]


Official Gerald Celente channels: “Gcelente” & “TrendsJournal”.

SF Source Gerald Celente  Dec 3 2014

Pam Martens & Russ Martens ~ Will The New Criminal Probe Against JPMorgan Trigger Its Two-Year Probation Agreement?

“On October 28, 2008, less than two months before Bernard Madoff would confess to his decades-long Ponzi scheme, JPMorgan sent a suspicious activity report to the United Kingdom’s Serious Organized Crime Agency (SOCA). The document reads: JPMorgan’s “concerns around Madoff Securities are based (1) on the investment performance achieved by its funds which is so consistently and significantly ahead of its peers, year-on-year, even in the prevailing market conditions, . . .” – P Marten & R Martens

On January 6 of this year, JPMorgan Chase entered into a two-year probation agreement known as a “deferred prosecution” agreement with the U.S. Justice Department. The deal allowed JPMorgan to avoid prosecution for two felony counts related to its failures in serving as Bernard Madoff’s bank as tens of billions of dollars were laundered between accounts while it made none of the required suspicious activity reports – except one to the United Kingdom.

The deferred prosecution agreement, signed on January 6, 2014, required that for the next two years, JPMorgan had to bring to the attention of Federal prosecutors any knowledge of wrongdoing inside the bank, cooperate fully and in good faith, and agree to “commit no crimes under the federal laws of the United States subsequent to the execution of this agreement…” If JPMorgan broke its end of the bargain, it could not only be prosecuted for new crimes but for the Madoff deferred felony counts as well.

When JPMorgan filed its quarterly report with the SEC on Monday, known as the 10Q, it owned up to the following:

“DOJ is conducting a criminal investigation, and various regulatory and civil enforcement authorities, including U.S. banking regulators, the Commodity Futures Trading Commission (‘CFTC’), the U.K. Financial Conduct Authority (the ‘FCA’) and other foreign government authorities, are conducting civil investigations, regarding the Firm’s foreign exchange (‘FX’) trading business. These investigations are focused on the Firm’s spot FX trading activities as well as controls applicable to those activities. The Firm continues to cooperate with these investigations and is currently engaged in discussions with DOJ, and various regulatory and civil enforcement authorities, about resolving their respective investigations with respect to the Firm. There is no assurance that such discussions will result in settlements.” Continue reading

G E Christenson ~ A Tale Of Two Cities

“A reset seems inevitable and possibly imminent.  As they say, the market always does what it is supposed to, but not when we expect it.” – G E Christenson

This is a work of fiction with a few similarities to the reality we all know and trust, or … the reality that we think we know.

City A in a Paper World

GaryChristensonA financial genius had a plan!  He and his offspring implemented the plan over several hundred years.

Charter a bank.

The government authorizes this bank to create and print paper money, backed by gold or silver. (It took surprisingly little in bribes to convince the government leaders that this Bank was a wonderful idea.)

The Bank accepts gold, silver and other valuables as deposits into its vaults, and then lends paper money, backed by those gold and silver deposits, to governments, businesses, politicians, and individuals.

The debtors borrow paper money but are required to repay in gold.

The Bank owners pay themselves huge salaries, become trusted confidents of government leaders, and pillars of the society. Wealth is transferred to the banker class.

The Bank owners also “encourage” politicians to create wars and other costly programs, and to borrow from the Bank to pay for their adventures and excess spending. (Surprisingly little money is required in payoffs from the Bank to the politicians.)

Debts increase, governments buy votes with promises, and the Bank becomes increasingly important in global affairs.

The Bank also agrees to store gold from many other countries for “safe keeping.” The gold is never audited.  A few people wonder why it is never audited.

So many debts are incurred by governments, businesses, and individuals that the money is transformed into paper, not gold, nor is it redeemable in gold. Of course, it is still “as good as gold.” Continue reading

Pam Martens & Russ Martens ~ New Book: Senator Schumer Was Regular Visitor to Madoff Offices

“On September 9 of this year, Nathan Vardi, writing for Forbes, reported that “Barbara Picower, the widow of the biggest beneficiary of the Bernard Madoff Ponzi scheme, has resumed her role as one of the nation’s top philanthropists, heading a new foundation with more than $2 billion in assets.”” – P Martens & R Martens

Sen. Charles Schumer

Sen. Charles Schumer

New York City has 8.4 million people living in its boroughs. But when it comes to defending those charged with financial crimes, it’s a very small, clubby world of people who are either related to each other or have worked together in the past. And this clubby group has one more thing in common: most of its members seem to be lavishing huge campaign contributions on U.S. Senator Charles (Chuck) Schumer of New York – a man who is in a position to recommend Federal Judge appointments and the Justice Department’s U.S. Attorney who will prosecute the financial crimes – or not.

These are the findings in a new on-line book, JPMadoff: The Unholy Alliance Between America’s Biggest Bank and America’s Biggest Crook, being offered free as a chapter a month by attorneys Helen Davis Chaitman and Lance Gotthoffer. (Chaitman is a nationally recognized litigator who was swindled by Madoff and is passionate about getting an unabridged recital of facts out to the public, including details about the extensive involvement in the fraud by the big Wall Street bank, JPMorgan Chase, and Madoff clients that the authors believe to have been co-conspirators.)

Chapter 3 is now up on the web site and delivers this nugget: “Senator Schumer was a frequent visitor to Madoff in his office in New York’s Lipstick Building.” This information came to Chaitman in 2009 from Madoff employees and is confirmed by a 2014 interview with Madoff himself by Politico’s MJ Lee, indicating that Schumer paid personal visits to Madoff  to collect campaign contributions.

In the March Politico article, Lee adds this: “Approached in a Senate hallway last week, Schumer seemed willing to talk to a reporter — until the subject of Madoff came up. ‘I’m not commenting,’ the New York Democrat said as he walked away. ‘I am not commenting.’ ”

The web of relationships unveiled in the book include the following: Continue reading

Ellen Brown ~ You Can’t Taper A Ponzi Scheme: Time To Reboot

“Our financial leaders, in conjunction with our political leaders, have continually re-created the web of money and credit that knits our economy together. But they have often taken only their own interests and those of the wealthiest citizens into account, not those of the general public. It is up to us to educate ourselves about money and banking, and to demand a system that is accountable to the people and serves our long-term interests.” E Brown

Ellen Brown

Ellen Brown

One thing to be said for the women now heading the Federal Reserve and the IMF: compared to some of their predecessors, they are refreshingly honest. The Wall Street Journal reported on July 2nd:

Two of the world’s most powerful women of finance sat down for a lengthy discussion Wednesday on the future of monetary policy in a post-crisis world: U.S. Federal Reserve Chairwoman Janet Yellen   and International Monetary Fund Managing Director Christine Lagarde. Before a veritable who’s-who in international economics packing the IMF’s largest conference hall, the two covered all the hottest topics in debate among the world’s central bankers, financiers and economists.

Among those hot topics was the runaway shadow banking system, defined by Investopedia as “The financial intermediaries involved in facilitating the creation of credit across the global financial system, but whose members are not subject to regulatory oversight. The shadow banking system also refers to unregulated activities by regulated institutions.” Examples given include hedge funds, derivatives and credit default swaps.

Conventional banks also engage in “shadow banking.” One way is by using their cash cushion as collateral in the repo market, where they can borrow to invest in the stock market and other speculative ventures. As explained by Bill Frezza in a January 2013 Huffington Post article titled “Too-Big-To-Fail Banks Gamble With Bernanke Bucks”:

If you think [the cash cushion from excess deposits] makes the banks less vulnerable to shock, think again. Much of this balance sheet cash has been hypothecated in the repo market, laundered through the off-the-books shadow banking system. This allows the proprietary trading desks at these “banks” to use that cash as collateral to take out loans to gamble with. In a process called hyper-hypothecation this pledged collateral gets pyramided, creating a ticking time bomb ready to go kablooey when the next panic comes around.

Addressing the ticking time bomb of the shadow banking system, here is what two of the world’s most powerful women had to say: Continue reading

Charles Hugh Smith ~ The Rot Within, Part I: Our Ponzi Economy

“The stock market has been made the official metric of the nation’s economic health; too bad it’s a Ponzi scheme. Financial bubbles are what economist Robert Shiller calls “naturally occurring Ponzis” because the psychology of ever-rising prices and profits fuels an inflow of greater fools that sustains the bubble until all available greater fools have sunk their cash and credit into the bubble.” C H Smith

CharlesHughSmithAll the conventional policy fixes proposed by Demopublican politicos, technocrats and the vast army of academic/think-tank apparatchiks are the equivalent of slapping a coat of paint on a fragile facade riddled with dryrot.
All these fake-fixes share a few key characteristics:

1. They focus on effects and symptoms rather than address the underlying causes, i.e. the dryrot at the heart of our government, society and economy.

2. They maintain and protect the Status Quo Powers That Be–no vested interests, protected fiefdoms or Financial Elites ever lose power as a result of these policy tweaks.

3. They are politically expedient, meaning they assuage the demands of vested interests rather than tackle the rot undermining the nation.

4. They ignore the perverse incentives built into current systems and the incentives of complicity, i.e. to cheer another coat of paint on the dryrot rather than face the costs of real reform.

The financial underpinnings of the economy and society are rotting from within:finance, higher education, defense, healthcare, law, governance, you name it. Continue reading