From Greenspan To Bernanke To Perdition

Perdition Prediction: There are many who believe Perdition (Hell on earth) will begin this coming week as Greek bonds are sold and CDS (Credit Default Swaps) are triggered. A lot of Nervous Nellies are fretting over a few hundred trillion dollars in CDS being paid out. A CDS is a hybrid between a derivative which is a bet on the future value of a bond or a commodity and insurance. New York banks have hundreds of trillions of liabilities due for the decline in the valuation of European bonds. I say do not worry. Ben Bernanke has been buying mortgages to keep mortgage rates down. Do not worry. Be happy. Helicopter Ben will keep bond prices up by buying tens of trillions of dollars in bonds in Europe and the US. I think Bernanke can keep this scam going so Perdition will not go into full force until after the elections though interest rates and inflation will rise steadily until then. I will write an update and issue an apology if  Hyperinflation begins before election day.

William K Black who sent more than 10,000 criminal referrals for prosecution to the Department of Justice during the Savings and Loan crisis, first  encountered Alan Greenspan in the 1980s when  he was lobbying the Congress in behalf of  Charles Keating. Keating had paid 1.3 million dollars to 5 Senators to keep the regulators away from his Lincoln Savings and Loan bank which did eventually collapse in 1989.  I would compare Greenspan’s nomination to that of Zoe Baird to be Clinton’s Attorney General. She had been Michael Milken’s judge and allowed the Junk Bond King to keep a few billion dollars of the money he took. Clearly. Presidents are looking for a confirmed history of larceny in their appointments.

Alan Greenspan is probably most famous for the Greenspan Put (now called Moral Hazard) which was the doctrine that if the stock market declined as it did shortly after his conformation as Federal Reserve Chairman in June of 1987., he would print dollars and make things all better. The doctrine essentially is that the Federal Reserve will print money and send asset prices up until it is impossible to lose money in the stock market. Please consider what this did to financial markets. It divorced them from the real economy and turned them into gambling casinos. Professor Steve Keen and others have said what Greenspan did in 1987 was to delay a recession turning it into an eventual Depression of tremendous magnitude never before seen in human history. It is that Hyperinflationary Depression which I am expecting next year.

Greenspan served Richard Nixon as his coordinator on domestic policy in 1968 and Ford as  Chairman of the Council of Economic Advisers. He was a director of the  Council on Foreign Relations between 1982 and 1988 so he is well aware of the plans the elite have made for us. President Clinton reappointed Greenspan as FED Chairman.

It was Greenspan who together with Clinton, Al Gore and Newt Gingrich presided over the systematic destruction of the real American economy. This had been the goal of the CFR, the Trilateral Commission and the Bilderberg Society which boasted of them as members.

Everyone knows that NAFTA sent 50,000 manufacturing plants overseas. But few remember  the follow up decision by the Chinese government to devalue the yuan which destroyed the smaller Asian economies in the late 1990s and rapidly accelerated America’s  industrial decline. And few appreciated the role Greenspan played. He allowed NAFTA to pass without opposition but he also  opposed tariffs or any other plan to protect American jobs and businesses from the predatory devaluation of Chinese currency. U.S. workers displaced by trade with China should be compensated, Greenspan said, through unemployment insurance programs and retraining. If bankers and not factory workers were retrained to work as hamburger flippers at McDonalds, Greenspan would have seen the light. But he obviously does not care about mere mortals struggling to make a living and to support their families.

In 1999 there were a series of economic proposals euphemistically called deregulation. One was the repeal of Glass Steagall which had been passed in 1933 and forbade commercial banks to act as investment banks so depositors would be protected against gambling losses made by banks. That law was repealed. Greenspan argued that free market competition was more effective than government regulations against fraud to protect investors.

Also in 1999 Brooksley Born, the CFTC Chair, who previously had been a high powered corporate lawyer tried to regulate CDS. Alan Greenspan and three other Jews Robert Rubin, Larry Summers (Samuelson) and Arthur Levitt called on her and told her she could not regulate them despite her jurisdiction over derivatives. CDS do not require the person insuring Greek bonds to set aside cash to settle losses. The sale of a CDS does provide money for bonuses but it does subject the taxpayer to tens of trillions of dollars in risk. Bank of America famously moved 72 trillion dollars from one subsidiary to another recently so the taxpayers could pick up the losses under FDIC bank deposit insurance. This could not have happened without Greenspan’s participation in deregulation during the Clinton era. In 2008 Greenspan issued an apology over deregulation after AIG went belly up costing the taxpayers 186 billion dollars in Bailouts. In 2010 Greenspan had reversed himself when the Dodd-Frank bill was to be passed. I find it useful to translate 186 billion dollars into hours worked by the person you are talking to. How many miles would a million truckers have to drive to pay that much money in taxes?

I have remarked before that I had told my friends back in Silicon Valley a year before the 2000  elections that Greenspan was going to take the stock market down so he could elect George Bush president. The elite I said had determined that America really needed to get into a war. I had previously said almost 30 years before when I was still in college that the bankers wanted America to lose World War III so I was expecting nothing good from the Bush administration.

Greenspan raised interest rates and the stock market tanked. Bush barely won the election and proceeded to help Israel take down the World Trade Center Towers allowing more than a billion dollars in gold and silver bullion to be stolen from the COMEX vaults at the WTC on 9-10-2001. Nanothermite which is not available outside above top secret American and Israeli labs was used to take down the Towers. An unknown high grade explosive instantly turned a million tons of reinforced concrete into dust in 2 seconds. This could not be done from a cave in Afghanistan.  Less than a month after 911 Bush and Cheney had given the Pentagon a list of 7 Muslim nations to invade including Libya, Syria, and Iran. Obama is just now following through on Bush’s To Do List. This is evidence of a bi-partisan foreign policy: Everyone in Washington does what Israel tells them to do.

After 911 anthrax was released from government labs. This scare made return to the old gambling casino atmosphere of the Dot Com bubble difficult to reignite. But he did set the mortgage market ablaze with abusive Liar Loans, Mortgage Backed Securities and fraudulent ratings made possible by CDS which he so presciently had forced to remain unregulated. Greenspan presided over two enormous Bubbles and the destruction of the real economy through NAFTA and the devaluation of the Chinese yuan. It was Greenspan who introduced the War on Terror as our latest Bubble by electing Bush. The transition of America from the Bubble economy to Perdition is being managed by Ben Bernanke who took over the Federal Reserve in 2006.

Bernanke attended Harvard University, where he lived in Winthrop House with the future CEO of Goldman Sachs, Lloyd Blankfein, His thesis adviser was the future governor of the   Bank of Israel, Stanley Fischer. When Bernanke served as a member of the Board of Governors of the Federal Reserve System, he made a famous speech for inflation as the solution to everything on 11-21-2002. In June 2005, Bernanke was named Chairman of President George W. Bush’s Council of Economic Advisers, and resigned as Fed Governor. What is Ben Bernanke most famous for? He is the man who hyperinflated the dollar to cover bank fraud and to counteract the decline in asset prices due to bad decision making by the elite. A Foundation did a study which detailed the amount if money the Federal Reserve spent on Bailouts. This should be emphasized is completely separate from the TARP and the auto Bailouts. The FED alone spent $29.616 trillion dollars before the reporting period December 2011. He has created additional trillions of dollars in 2012 which are not part of this figure. Included in that nearly 30 trillion dollar figure was 6.3 trillion dollars Ben gave to the European banks who had been defrauded of that amount and more by the New York banks. Actually Ben only gave money to politically connected Europeans leaving many pension funds and Savings and Loans pit in the cold with worthless fraudulent securities.

Currently Bernanke is creating trillions which he calls currency swaps but that is a lie. That money is an outright gift not from your purchasing power. His policy is to keep asset prices high and interest rates low. This transfers wealth from us to the bankers as he hyperinflates our paychecks and pensions and savings to zero purchasing power value.

After the elections interest rates will probably go up. Also on the upswing will be Austerity cuts. Bernanke favors cuts to Medicare and Social Security. He also said recently he sees America falling off a financial cliff in January of 2013. With respect to Austerity there was a blurb in the press last week saying that Goldman Sachs had the understanding that if the government runs out of cash they will pay the banks before the pensioners are paid.

For the benefit of new readers I must point out that I define Hyperinflation as beginning at 25% for an international reserve currency like the dollar. Paul Volcker whose mother had a Jewish last name cured America of inflation by raising interest rates to 15 1/2% on home mortgages. I believe the Federal Reserve will never be able to recover the dollar’s preferred trading position when inflation passes 25%. Bernanke knows this. Foreigners will begin dumping the dollar as they lose millions and billions daily. The dollar’s purchasing power will steadily decline. until an International Conference is called and exchange rates are stabilized with the dollar going way down and the yuan and Deutschmark going up.

The Congress has been obediently chipping away at the Bill of Rights ever since Israel did 911 hoping that the voters will be easily controlled after Judaica has cut their wages 50%. Dream on fellows.

I think that will be a tough sell. More likely is an Unknown Change after the elections. I an confident enough to repeat this:  We will win. They will lose. The bankers have been plotting against America ever since 1913 only to fail.

Notes: This first article was posted over the weekend but did not receive the attention it deserved.

Correction Please Mr Obama

Correction Please Mr Obama

The next article was my most popular of recent days.

War Clouds On The Potomac. No Not Iran. War Declared On You.

War Clouds On The Potomac. No Not Iran. War Declared On You.

Please consider this:

Hit The Media At Their Weak Point: Pull Their FCC Licenses

Hit The Media At Their Weak Point: Pull Their FCC Licenses

This makes you think about just what they plan to do to you after they have stolen all of your money.

Catherine Austin Fitts On Genocide And The Looting Of America

Catherine Austin Fitts On Genocide And The Looting Of America

This is a reference to the 30 trillion dollars Bernanke gave away prior to the end of 2011.

http://www.huffingtonpost.com/l-randall-wray/bernankes-obfuscation-con_b_1147291.html

This video is from a different perspective coming to the same conclusion. The bond markets are doomed. Bernanke cannot print enough money to prop up the global bond markets.