The Solution For Greece (Max Keiser, Matt Taibbi and Catherine Austin Fitts)

Create the Path Forward

max-keiser_matt-taibbi

Today, Matt Taibbi describes Max Keiser’s proposal that Greece should nationalize their banks, abrogate debts that were criminally originated and work through the painful adjustment of rebuilding their real economy:

The No Pay Movement:

Often also called an activist, Mr. Keiser created quite a stir a few days ago when, on an Al Jazeera program, he claimed that Greece, for the past decade, has fallen victim to the “economic terrorists” of the Wall Street banking systems and the IMF. In the interview which followed, he claimed “if the Greeks want to be protected from the IMF, then they should nationalize their banks thus establishing government owned institutions so as to revive the banking system”, while at the same time “ceasing to pay back the loans which were issued illegally” via “cooking the books” of the Greek economy by Goldman Sachs. He proposed the expulsion from the country of American banks as well as the IMF. The consequence will be “two or three years of heavy recession”, during which time Greece will be able “to rebuild its economy”, ensuring its economic independence.

via The IMF Flag Reads: ECONOMIC SLAVERY.

Matt invites comment on the merits of this plan.

Max’s proposal is sound. First, it moves us towards a fundamentally healthy and sound economy. Second, it is in accordance with age old financial and legal principles. If a debt is “fraudulently induced,” it can be invalidated in whole or in part.

Look up “fraudulent inducement.” My position as the former Assistant Secretary of Housing-Federal Housing Commissioner and then as lead financial advisor to the U.S. Department of Housing and Urban Development is that the majority of the mortgages originated in the United States after 1996 were fraudulently induced.

The way to deal with criminals is to treat our contracts with them in a manner reciprocal to how they have treated their contracts with us.

Will a growing movement to abrogate contracts with institutions who have broken the law be disruptive? Yes. Will that require painful adjustments? Yes. That is the price we pay to deal with the challenges we face. This includes the fact that the banks have sold criminally originated debts to our pension funds and retirement accounts as well as to allies and institutions around the world.

Read moreThe Solution For Greece (Max Keiser, Matt Taibbi and Catherine Austin Fitts)

On the Edge with Max Keiser and Catherine Austin Fitts, former Assistant Secretary of Housing (06/26/09)

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Read moreOn the Edge with Max Keiser and Catherine Austin Fitts, former Assistant Secretary of Housing (06/26/09)

The Fed Did Indeed Cause the Housing Bubble

More from Catherine Austin Fitts:
Former Assistant Secretary of Housing: The U.S. is the Global Leader in Illegal Money Laundering
Rethinking Diversification

This is a MUST-READ.


To: The Wall Street Journal

Re: “The Fed Didn’t Cause the Housing Bubble”

By: Alan Greenspan, former Chairman of the Federal Reserve

Dated: Wednesday, March 11, 2009

Ladies and Gentlemen:

In his article on your opinion page, “The Fed Didn’t Cause the Housing Bubble,” Alan Greenspan attributes the housing bubble to lower interest rates between 2002 and 2005. That’s amazing to me.

My company served as lead financial advisor to the Federal Housing Administration between 1994 and 1997. I watched both the Administration and the Federal Reserve aggressively implement the policies that engineered the housing bubble. These are described at my website and in my on-line book,Dillon Read & the Aristocracy of Stock Profits (http://www.dunwalke.com).

One story, for example, is the following:
“In 1995, a senior Clinton Administration official shared with me the Administration’s targets for Fannie Mae and Freddie Mac mortgage volumes in low- and moderate-income communities. We had recently reviewed the Administration’s plans to increase government mortgage guarantees – most of these mortgages would also be pooled and sold as securities to investors. Even in 1995, I could see that these plans would create unserviceable debt loads in communities struggling with the falling incomes expected from globalization. Homeowners would default on mortgages while losses on mortgage-backed securities would drain retirement savings from 401(k)s and pension plans. Taxpayers would ultimately be hit with a large bill . . . but insiders would make a bundle. I looked at the official and said that the Administration was planning on issuing more mortgages than there were houses or residents. “Shut up, this is none of your business,” the official snapped back.”

Read moreThe Fed Did Indeed Cause the Housing Bubble

Former Assistant Secretary of Housing: The U.S. is the Global Leader in Illegal Money Laundering

If you want to understand the current crisis, listen to Catherine Austin Fitts.

Catherine Austin Fitts at the IRTA 08 Barter Convention

Added: 09.10.2008
Source: Google Video

Related information:

Marc Faber: The U.S. is pursuing the Zimbabwe School of Economics

Bush administration overpaid banks tens of billions of dollars in bailout, watchdog says

Ron Paul on Glenn Beck: Destruction of the dollar

Peter Schiff: Stimulus Bill Will Lead to “Unmitigated Disaster”

– Former Assistant Secretary of the Treasury Paul Craig Roberts On The U.S. Leadership: “They Are Criminals” – The Potential Here Is Far Worse Than The Great Depression

Congresswoman Kaptur Points Out The Revolving Door Between Wall Street & The White House

Paul Craig Roberts: Another real estate crisis is about to hit

Gerald Celente: The Collapse of 2009; The Greatest Depression

Financial Coup d’Etat

In the fall of 2001 I attended a private investment conference in London to give a paper, The Myth of the Rule of Law or How the Money Works: The Destruction of Hamilton Securities Group (PDF).

The presentation documented my experience with a Washington-Wall Street partnership that had:

  • Engineered a fraudulent housing and debt bubble;
  • Illegally shifted vast amounts of capital out of the U.S.;
  • Used “privitization” as form or piracy – a pretext to move government assets to private investors at below-market prices and then shift private liabilities back to government at no cost to the private liability holder.

Other presenters at the conference included distinguished reporters covering privatization in Eastern Europe and Russia. As the portraits of British ancestors stared down upon us, we listened to story after story of global privatization throughout the 1990s in the Americas, Europe, and Asia.

Slowly, as the pieces fit together, we shared a horrifying epiphany: the banks, corporations and investors acting in each global region were the exact same players. They were a relatively small group that reappeared again and again in Russia, Eastern Europe, and Asia accompanied by the same well-known accounting firms and law firms.

Clearly, there was a global financial coup d’etat underway.

Read moreFinancial Coup d’Etat

Rethinking Diversification

For our entire lives, most of us have depended on highly centralized systems. Our food comes from a thousand or more miles away. Our savings is shipped into distant financial centers and invested by strangers in enterprises run by strangers. We watch highly scripted news that serves the same spin no matter how many channels we try. We bank at impersonal global banks with criminal records that would make a felon blush and have no idea where our money goes, just that the government guarantees that we will get it back.

Within this centralized system, diversification means having your financial assets deposited into a “one-stop-shop” brokerage account invested in securities representing different global industries, the idea being when one industry is doing poorly, another “countercyclical” industry would be doing well.

But suddenly, we find that we may not be able to trust these centralized systems. Suddenly, traditional portfolio theory no longer addresses our anxiety. This is because we need to shift from diversification within a centralized system to real diversification in a decentralized, possibly “out of control” world.

Read moreRethinking Diversification