Flawed US Economic System Mathematically Guarantees Fraud.

[SteadyMercury]

Our Gov't purposely tried to HIDE THIS SHIT.............Your post shows that it works.........I've found the hidden docs before from the GAO and Reserve. Looking again, as they don't want you to see it.

Good job, you found a link on the economicollapseblog and bought into the hype about 16 trillion.

Even in the current data posted I had to dig a little to find the GAO source.

This one? Took me about 30 seconds, that thing sure is buried all secret like.

http://www.sanders.senate.gov/imo/media/doc/GAO Fed Investigation.pdf

 

[eagle1462010]

Our Gov't purposely tried to HIDE THIS SHIT.............Your post shows that it works.........I've found the hidden docs before from the GAO and Reserve. Looking again, as they don't want you to see it.

Good job, you found a link on the economicollapseblog and bought into the hype about 16 trillion.

Even in the current data posted I had to dig a little to find the GAO source.

This one? Took me about 30 seconds, that thing sure is buried all secret like.

http://www.sanders.senate.gov/imo/media/doc/GAO Fed Investigation.pdf

On post 34 I directed you to the same site posted. Your Sanders site is the same site...............On page 144 it shows the data as POSTED FROM THE BLOG SITE.

What's the problem with the data...................It's there. Are you denying that on page 144 of the very site you posted, which is the site I posted doesn't show the 16 TRILLION.......................

 

[eagle1462010]

Bought into the hype.......................It took years for it to be disclosed. It took a Supreme Court Ruling to force this information out................

On trying to hide it,......................Maybe you are better at searching the internet than I am......................On the Federal Gov't trying to HIDE IT, under Bush and Obama............Your damn skippy they did.

 

[georgephillip]

With a full court press from the Jeckyl Island cabal we were going to get a central bank.

As to war central banking was developed to finance war by the Dutch. when adopted by the Brits in the 1600s it created the largest empire in history.

Sure we could have avoided WWI once the Great Pumpkin was on the case.

"The outbreak of war in 1914 coincided with a recession in the United States.

"By 1915, American neutrality was being criticized as bankers and merchants began to loan money and offer credits to the warring parties, although the Central Powers received far less.

"Between 1915 and April 1917, the Allies received 85 times the amount loaned to Germany. This was good business for American enterprises, notably munitions and foodstuffs."

It doesn't seem too likely that Taft would have turned on those making a profit from the War to End All Wars. The unification of Germany in 1870 generated enough profit to enable Bismarck to cease his reliance on investment banks to finance business or government. It's possible the intricate weave of treaty alliances between European powers between 1870 and 1914 was due to a world banking oligarchy pressuring western governments through control of domestic money supply and foreign exchange.

Effect of Loans & Trade on US Entry in War 1917

 

[SteadyMercury]

What's the problem with the data...................It's there. Are you denying that on page 144 of the very site you posted, which is the site I posted doesn't show the 16 TRILLION.......................

It says 16 trillion, and I've already explained why that is misleading. There was never 16 trillion in outstanding loans, that is the cumulative total of many much smaller loans most of which were paid back in the same day. At the peak of the financial crisis the outstanding balance swelled to over a trillion. It has been paid back.

16 trillion is a number meant to mislead and generate emotion, it is useless as any barometer.

Bought into the hype.......................It took years for it to be disclosed. It took a Supreme Court Ruling to force this information out................

On trying to hide it,......................Maybe you are better at searching the internet than I am......................On the Federal Gov't trying to HIDE IT, under Bush and Obama............Your damn skippy they did.

You're acting like you deserve a Pulitzer for finding something that isn't hard to find.

One of the roles of the Fed is to extend credit to banks as needed, and during a recession where there is a liquidity crisis one would expect more money to be lent. I'm not saying it is a good policy or a bad one but it is one of the things The Fed does so you aren't uncovering some eye-popping secret here.

 

[georgephillip]

"Fraud is both a civil wrong and a crime and it's when I get you to trust me and then I betray your trust in order to steal from you. As a result, there’s no more effective acid against trust than fraud and, in particular, elite fraud, which causes people to no longer trust folks, economies break down, families break down, political systems break down and such if you don’t have that kind of trust. So that’s what fraud is.

But what my (Bill Black) work focuses on is: what kind of frauds are the most devastating? And it turns out that the most kind of problems that we’re seeing, systemic problems and such, arise when we have, what we call in criminology, control fraud.

"And control fraud simply means when you have a seemingly legitimate entity and the person who controls it uses it as a weapon to defraud others.

"And so in the financial sphere the weapon of choice is accounting and the losses from these kinds of control frauds exceed the financial losses from all other forms of property crime combined...

"George Akerlof and Paul Romer wrote the classic article in economics about this in 1993. And their title really says it all in terms of the dynamic: Looting the Economic Underworld of Bankruptcy for Profit.

"The idea is you have a seemingly legitimate entity, the person at the top is looting it.

"They loot it by destroying it but they walk away wealthy.

"Of course, in the modern era we don’t necessarily, we may bail out the entity.

"So it may not even fail in that sense."

Bill Black: Our System Is So Flawed That Fraud Is Mathematically Guaranteed | Zero Hedge

Does anyone think we can change the dynamic of control accounting fraud by "choosing" between Republican OR Democrat when selecting Representatives and Senators?

 

[Toddsterpatriot]

Unheralded Warnings from the Founding Fathers... | Gather

"Usury has existed for thousands of years, and may have been perpetuated by every worldly creed. Untold multitudes have died in the perpetual struggle against usury. Jesus Christ Himself was crucified soon after His famous demonstration at the temple of the money changers.

In a train of events that would eventually inspire the American colonies to revolution, a German-born embezzler, trained by his father in matters of money and trading that he could become a Rabbi, rose from a Jewish slum to become the present world's father of international bankers. He would change his name from Mayer Amschel Bauer to Mayer Amschel Rothschild.

Mayer Amschel Rothschild and his sons -- equally trained in unearned profit (usury) and its vital complements of corruption, subversion, and deceit -- would comprise the House of Rothschild, intervening upon production, consumer and government altogether, to amass, at the expense of everyone but the perpetrators, the greatest forfeitures of prosperity the world could know.

Thomas Jefferson speaking on the first attempt to establish a central bank in America:

"The system of banking is a blot left in all our Constitutions, which, if not covered, will end in their destruction. I sincerely believe that banking institutions are more dangerous than standing armies; and that the principle of spending money to be paid by posterity is but swindling futurity on a large scale."

"The end of democracy, and the defeat of the American revolution will occur when government falls into the hands of the lending institutions and moneyed incorporations."

"If the people ever allow the banks to issue their currency, the banks and corporations which will grow up around them will deprive the people of all property, until their children wake up homeless on the continent their fathers conquered."

James Madison speaking on the first attempt to establish a central bank in America:

"History records that the money changers have used every form of abuse, intrigue, deceit and violent means possible, to maintain their control over governments, by controlling money and its issuance."

"If the people ever allow banks to issue their currency, the banks and corporations which will grow up around them will deprive the people of all property, until their children wake up homeless on the continent their fathers conquered."

I don't remember the first time I read that particular quote.
The first time I remember understanding what Jefferson meant was during the summer of 2008 when I was homeless and living beneath a bridge just west of downtown LA. My question is, if banks don't issue our currency, who does?

Love that fake quote!

 

[georgephillip]

Unheralded Warnings from the Founding Fathers... | Gather

"Usury has existed for thousands of years, and may have been perpetuated by every worldly creed. Untold multitudes have died in the perpetual struggle against usury. Jesus Christ Himself was crucified soon after His famous demonstration at the temple of the money changers.

In a train of events that would eventually inspire the American colonies to revolution, a German-born embezzler, trained by his father in matters of money and trading that he could become a Rabbi, rose from a Jewish slum to become the present world's father of international bankers. He would change his name from Mayer Amschel Bauer to Mayer Amschel Rothschild.

Mayer Amschel Rothschild and his sons -- equally trained in unearned profit (usury) and its vital complements of corruption, subversion, and deceit -- would comprise the House of Rothschild, intervening upon production, consumer and government altogether, to amass, at the expense of everyone but the perpetrators, the greatest forfeitures of prosperity the world could know.

Thomas Jefferson speaking on the first attempt to establish a central bank in America:

"The system of banking is a blot left in all our Constitutions, which, if not covered, will end in their destruction. I sincerely believe that banking institutions are more dangerous than standing armies; and that the principle of spending money to be paid by posterity is but swindling futurity on a large scale."

"The end of democracy, and the defeat of the American revolution will occur when government falls into the hands of the lending institutions and moneyed incorporations."

"If the people ever allow the banks to issue their currency, the banks and corporations which will grow up around them will deprive the people of all property, until their children wake up homeless on the continent their fathers conquered."

James Madison speaking on the first attempt to establish a central bank in America:

"History records that the money changers have used every form of abuse, intrigue, deceit and violent means possible, to maintain their control over governments, by controlling money and its issuance."

"If the people ever allow banks to issue their currency, the banks and corporations which will grow up around them will deprive the people of all property, until their children wake up homeless on the continent their fathers conquered."

I don't remember the first time I read that particular quote.
The first time I remember understanding what Jefferson meant was during the summer of 2008 when I was homeless and living beneath a bridge just west of downtown LA. My question is, if banks don't issue our currency, who does?

Love that fake quote!

Can you be a little more specific?

 

[CrusaderFrank]

Funny how the S&L Crisis started a decade after the invention of Freddie Mac; it's the twin of Fannie Mae, except it was supposed to but loans from S&L's

 

[keyboardwarrior]

informative article.

 

[Toddsterpatriot]

"If the people ever allow banks to issue their currency, the banks and corporations which will grow up around them will deprive the people of all property, until their children wake up homeless on the continent their fathers conquered."

I don't remember the first time I read that particular quote.
The first time I remember understanding what Jefferson meant was during the summer of 2008 when I was homeless and living beneath a bridge just west of downtown LA. My question is, if banks don't issue our currency, who does?

Love that fake quote!

Can you be a little more specific?

"If the people ever allow banks to issue their currency, the banks and corporations which will grow up around them will deprive the people of all property, until their children wake up homeless on the continent their fathers conquered."

^
^
^
Never said by Thomas Jefferson.

 

[georgephillip]

Love that fake quote!

Can you be a little more specific?

"If the people ever allow banks to issue their currency, the banks and corporations which will grow up around them will deprive the people of all property, until their children wake up homeless on the continent their fathers conquered."

^
^
^
Never said by Thomas Jefferson.

Nor were the words ever written by Jefferson, apparently.

"Comments: This quotation is often cited as being in an 1802 letter to Secretary of the Treasury Albert Gallatin, and/or 'later published in The Debate Over the Recharter of the Bank Bill (1809).'

"The first part of the quotation ('If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered') has not been found anywhere in Thomas Jefferson's writings, to Albert Gallatin or otherwise.

"It is identified in Respectfully Quoted as spurious, and the editor further points out that the words "'nflation' and 'deflation' are not documented until after Jefferson's lifetime."

Private Banks (Quotation) « Thomas Jefferson?s Monticello

What do you know about Bastiat?

“When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it."

Bill Black: Our System Is So Flawed That Fraud Is Mathematically Guaranteed | Zero Hedge

 

[Toddsterpatriot]

Can you be a little more specific?

"If the people ever allow banks to issue their currency, the banks and corporations which will grow up around them will deprive the people of all property, until their children wake up homeless on the continent their fathers conquered."

^
^
^
Never said by Thomas Jefferson.

Nor were the words ever written by Jefferson, apparently.

"Comments: This quotation is often cited as being in an 1802 letter to Secretary of the Treasury Albert Gallatin, and/or 'later published in The Debate Over the Recharter of the Bank Bill (1809).'

"The first part of the quotation ('If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered') has not been found anywhere in Thomas Jefferson's writings, to Albert Gallatin or otherwise.

"It is identified in Respectfully Quoted as spurious, and the editor further points out that the words "'nflation' and 'deflation' are not documented until after Jefferson's lifetime."

Private Banks (Quotation) « Thomas Jefferson?s Monticello

What do you know about Bastiat?

“When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it."

Bill Black: Our System Is So Flawed That Fraud Is Mathematically Guaranteed | Zero Hedge

“When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it."

Sounds like he's talking about government.

 

[georgephillip]

Funny how the S&L Crisis started a decade after the invention of Freddie Mac; it's the twin of Fannie Mae, except it was supposed to but loans from S&L's

Fanny and Freddie made their greatest contributions to our Great Recession after Clinton's and Gramm's repeal of Glass-Steagall.

How do you account for the differences in how the federal government responded to the S&L lootings compared to the mortgage/credit meltdown of 2008?

"A warning: there's much revealed in this interview to make your blood boil. For example: the Office of Thrift Supervision. In the aftermath of the S&L crisis, this office brought 3,000 administration enforcements actions (a.k.a. lawsuits) against identified perpetrators.

"In a number of cases, they clawed back the funds and profits that the convicted parties had fraudulently obtained.

"Flash forward to the 2008 credit crisis, in which just the related household sector losses alone were over 70x greater than those seen during the entire S&L debacle.

"So how many criminal referrals did the same agency, the Office of Thrift Supervision, make?

Zero."

Bill Black: Our System Is So Flawed That Fraud Is Mathematically Guaranteed | Zero Hedge

 

[georgephillip]

informative article.

Bill Black's front row seat during the S&L investigations seems to give him a good sense of how unintended consequences affect society in ways that are unseen or ignored

"Bastiat's original parable of the broken window from Ce qu'on voit et ce qu'on ne voit pas (1850):

"Have you ever witnessed the anger of the good shopkeeper, James Goodfellow, when his careless son has happened to break a pane of glass? If you have been present at such a scene, you will most assuredly bear witness to the fact that every one of the spectators, were there even thirty of them, by common consent apparently, offered the unfortunate owner this invariable consolation – 'It is an ill wind that blows nobody good. Everybody must live, and what would become of the glaziers if panes of glass were never broken?'

"Now, this form of condolence contains an entire theory, which it will be well to show up in this simple case, seeing that it is precisely the same as that which, unhappily, regulates the greater part of our economical institutions.

"Suppose it cost six francs to repair the damage, and you say that the accident brings six francs to the glazier's trade – that it encourages that trade to the amount of six francs – I grant it; I have not a word to say against it; you reason justly.

"The glazier comes, performs his task, receives his six francs, rubs his hands, and, in his heart, blesses the careless child.

"All this is that which is seen.

"But if, on the other hand, you come to the conclusion, as is too often the case, that it is a good thing to break windows, that it causes money to circulate, and that the encouragement of industry in general will be the result of it, you will oblige me to call out, 'Stop there! Your theory is confined to that which is seen; it takes no account of that which is not seen.'

"It is not seen that as our shopkeeper has spent six francs upon one thing, he cannot spend them upon another. It is not seen that if he had not had a window to replace, he would, perhaps, have replaced his old shoes, or added another book to his library. In short, he would have employed his six francs in some way, which this accident has prevented."

Parable of the broken window - Wikipedia, the free encyclopedia

Black was among the relatively few voices giving advance warning of the impending Great Recession, and he's warning about the next one that's coming closer by the day.