Tag Archives: Freddie Mac

The European Union EU “Dream” Wasn’t Even European, Bank Deposits Confiscation

Posted on by Lan Pham   

The European Union (EU) “Dream” Wasn’t Even European (More Preview to Part II Ideological Subversion of the United States)

Recently, European Commission President Barroso expressed concerns that the European “dream” was under threat from a “resurgence of populism and nationalism.” The “threat” of Italy, Poland, Spain… resurging as sovereign nations? To the EU creators, yes, because the European Union “dream” wasn’t even European.

In September 2000 about two years after the euro became the official currency of the Eurozone, the Telegraph foreign press (link) reported DECLASSIFIED U.S. government documents from the 1950s and 1960s showed U.S. intelligence ran a campaign to advance a ‘united’ Europe, exert pressure to push Britain into the European state. In 1948 the American Committee for a United Europe (ACUE) was created that funded and directed the European federalist movement and covert operations in the European Youth Campaign (“Euro-federalists financed by US spy chiefs.” Telegraph Sept 19, 2000). One memorandum dated July 26, 1950, gives instructions for a campaign to promote a European parliament, signed by General William J. Donovan, head of the American wartime Office of Strategic Services, precursor of the CIA.

Another memo dated June 11, 1965, advises the vice-president of the European Economic Community, Robert Marjolin, to secretly push for the monetary union and suppress debate until “adoption of such proposals would become virtually inescapable.” The ACUE that funded these activities was funded by the Rockefeller Foundation and Ford Foundation.This followed the end of World War II as it was the same wealth behind these Foundations that funded and unleashed Hitler and the “Master Race” upon Europe. Over 400,000 U.S. military men and women died in World War II; total estimated 60-80 million deaths including civilians. One U.S. attorney general at the time used the term “treason”.

For the sake of your nation leave the euro, EU.

In the interests of the United States? As a preview to Part II Ideological Subversion, the Rockefeller Foundation and Ford Foundation together with the Carnegie Endowment were under congressional investigation for their funding subversion of the United States. Confirmed communist spy Alger Hiss was president of the Carnegie Endowment and David Rockefeller joined the Board at his “invitation”. One of the documents found at the Foundation in the early 1900s was their plan to take control of the U.S. State Department. The timing of the design to corral nations in Europe into the EU commenced as several generations in the United States had been deliberately “dumbed-down” and subverted by the 1960s to Marxism-Leninism, the ideology of communism with fascism at the top. In the upcoming Part II, consider who assailed and halted the investigations. Yuri Bezmenov (Part I Ideological Subversion) Soviet subversion expert-turned defector warned U.S. intelligence, politicians and the media and realized he was talking to people who wanted to prevent the American people from understanding the truth (video).

Consider the parallel plunder of the United States and the Eurozone countries in Run Cyprus! Leave the Euro. Consider that what was put forth to the people – the euro – as integration of the European economy was subverted to control.

“Who does what, who decides what, who controls whom and what? And where are we heading to?”—Barroso in earlier quote on April 23, 2013. It seems the answers to these question were designed some 60 years ago as its true intent leaks out from time to time. In 1992 Strobe Talbott, former President Clinton’s Deputy Secretary of State and current member of the Council on Foreign Relations and President of the Brookings Institution, wrote in Time Magazine: “Nationhood as we know it will be obsolete; all states will recognize a single, global authority…” (“America Abroad: The Birth of the Global Nation.” July 20, 1992).

There it is: Aspirations for the “One World” Order, the “single global authority” or as Bezmenov revealed “world domination”. No Mexico. No Spain. No Indonesia. No Australia. No Poland. No France. No Ukraine. No Italy. No Turkey. No India. No Pakistan. No Malaysia. No U.K. No Iran and so on…Nationhood obsolete. Just states asking permission from the ‘single global authority’ to retain some rights. Kissinger expounds on the virtues of this ‘single global authority’ in 2009.

No China? No Russia? It seems there was a minor miscalculation.

The largest contributors to the Brookings Institution are the same Ford Foundation and Rockefeller Foundation, Bill & Melinda Gates Foundation, and John L. Thornton. Thornton is the Brookings Chair of the Board and former President and co-CEO of Goldman Sachs. The Brookings Institution is also where Robert Rubin and Lawrence Summers – with former Federal Reserve Bank Chairman Alan Greenspan – who were instrumental in the proliferation of derivatives that collapsed the U.S. economy gather to promote economic growth.

Goldman Sachs is co-founder of the Council on Foreign Relations (CFR, Robert Rubin its co-chairman). Otmar Issing, co-creator of the euro is International Advisor of Goldman Sachs. Rubin, Summers, Greenspan, along with Goldman Sachs’s CEO Lloyd Blankfein, JP Morgan Chase’s CEO Jamie Dimon, Zbigniew Brzezinski of the Grand Chessboard designs on Europe, and U.S. Treasury Secretary Timothy Geithner congregate at the CFR with five Rockefellers (whose Chase acquired JP Morgan, shareholder-owner of the Federal Reserve Bank); also CFR members are former CEOs of Fannie Mae and Freddie Mac (Daniel Mudd, Richard Syron respectively; Frank Raines of Fannie Mae) and Maurice “Hank” Greenberg of AIG – heads of three institutions at the heart of the 2008 collapse.

It appears the CFR has the greatest concentration of the worst failures in the history of the United States, the collapse of its financial system, or its most successful depending on the vantage point. In the previous article, “The Federal Reserve Bank is Naked,” consider in the 2009 QE I mortgage bond purchase program how it is possible that the Federal Reserve Bank paid a handful of its banks $57.7 billion for a $600 million mortgage bond from the 1980s and multiple other similar FRB bond purchases that totaled $1.25 trillion. U.S. State Department Secretary Clinton-U.S. presidential candidate expressed their fortunate proximity to the CFR building as that is where the Department obtains U.S. foreign policy (video), presumably with assistance from Henry Kissinger wielding U.S. military men as “dumb, stupid animals to be used” as pawns for foreign policy (Woodward & Bernstein. (1976). The Final Days, p.194).

From their financing and buildup of the Soviet Union to Hitler’s Third Reich takes us to Bechtel’s build-up of China since the 1950s (see footnote on Hegelian dialectic below), that brings up a curious case at Los Alamos National Laboratory in the late 1990s. In Part II we look at their interests in Russian and Asian art and culture (with AIG’s CIA-esque Maurice “Hank” Greenburg), and an interesting battle over oil that revealed a rather epic Who’s Who of the “One World.” Much has been written about the revolving door between Wall Street and the SEC, the White House and the State Department but perhaps that should be extended to the CIA.

The Telegraph reported the World Gold Council advises Italy to hand over its gold reserves to force a change in EMU policy (“Italy should use its gold reserves to force a change in EMU policy.” Telegraph May 2, 2013).

In place of gold, are Italy, Portugal, Spain…perhaps dusting off those guillotines?

 

 

[Economics Professor Antony Sutton  (1976. Wall Street and the Rise of Hitler) suggested 90% of the Council on Foreign Relations is an outer ring composed of “hangers-on and social climbers”, perhaps the equivalent to what Soviet KGB subversion expert Yuri Bezmenov calls “useful idiots” [Part I Ideological Subversion of the United States]. The CFR members include a Who’s Who of economic academia, whose American Economic Association was annexed to their creation of the Federal Reserve Bank, which Sutton observed has produced more “bootlickers” than researchers. For what Sutton uncovered in declassifying State Department records and research at Stanford University, he faced pressure from the White House, told by Glenn Campbell, President Reagan’s advisor over the CIA, that he was a “problem” and his academic career “you will not survive”.

Sutton traced their roots back to Georg Wilhelm Friedrich Hegel, the German philosopher for State supremacy or Fascism, whose ideas inspired Hitler as well as Karl Marx and Friedrich Engel’s The Communist Manifesto. The enamored wealthy imported this to the United States and financed its propagation, which takes us to Part II…

Their Hegelian dialectic creates conflict, pits countries against the other while financing and controlling the process, and out of destruction and “crises” consolidate control. It is how conflict is created between the left and right in the United States to keep the masses preoccupied while controlling the parameters of conflict and thus the outcome, always towards more State control.

In Part II, consider which Ivy League university in the United States was the reputed “nursery for communism” that required naked photos of its freshmen from which a core of its establishment went on to create and fund ideas of the “Master Race” that led to the sterilization of 60,000 “defective” Americans even before Hitler’s gas chambers, to financing his Third Reich, subversion of the U.S., the creation of EU, initiated wars in Iraq, Afghanistan …. ]. The plunder…

 

Bank Deposits Confiscation in the United States  – The Cyprus Blueprint Implemented

Update to the previous article, Run Cyprus! Leave the Euro (April 1, 2013). The Telegraph foreign press reported on April 28, 2013 (link) that Bank of Cyprus has implemented the depositor “bail-in”:

“Bank of Cyprus said it had converted 37.5pc of deposits exceeding €100,000 into “class A” shares [In exchange for depositors not getting their money, depositors are given stocks of the bankrupt bank], with an additional 22.5pc held as a buffer for possible conversion in the future…Another 30pc would be temporarily frozen and held as deposits, the bank said [Depositor can not take money out].”

The Irish Times reported €4.2 billion in customer deposits was raided (link). The “bail-in” is along the lines outlined in a joint paper by the FDIC and Bank of England in December 2012 titled, “Resolving Globally Active, Systemically Important, Financial Institutions” and other documents that suggests several years in planning.

The U.S. media has remained rather silent on what is being planned for the American public. When the time comes, money left in the banks will be taken, as now bank depositors have become unsecured lenders to the banks; 401(k) and other retirement plans are in line. Take GDP and subtract the trillions in QE and The Black Hole reveals itself – it is not complicated. There is no solution to the debt and OTC derivative problems, assuming a solution is the objective.

 

 

The Federal Reserve Bank is Naked: QE 10T Dollar ‘Loans’ Swaps and Naked Mortgage Bonds of Quantitative Easing 1

Posted on by Lan Pham   

More broadly there seems to be a confluence of events as the American public and its treasury are being plundered in parallel to once-sovereign countries of the Eurozone, bound together by debt and much of the over $1,000 trillion in derivatives (money that does not exist). All based on a quasi-private Federal Reserve monetary system that prints dollars (or euros) from nothing in exchange for savings earned and countries as collateral for the privilege of its debt. Smoke plumes rise in the Middle East. From my first post, Welcome to EconomicsVoodoo.com! (October 17, 2012)

The banking and financial crisis emerging in September 2008 is often called a global financial crisis, but to be more precise the data point to a crisis of the Western central banks. I referenced euros previously, so this is the euros companion to Quantitative Easing 0-1-2-3∞ & The Federal Reserve’s Love Affair with its Banks and Mortgage Bonds: Levitating The Black Hole. QE 0-1-2-3 is incomplete as concurrently the Federal Reserve Bank also entered into $10.06 Trillion in dollar ‘loans’ liquidity swaps with foreign central banks that we examine in Section I. Why QE $10T as we look at a few of Europe’s largest banks in Section II, which leads us to the $1.25 Trillion naked reasons behind the Federal Reserve Bank’s Quantitative Easing I purchase of phantom agency mortgage bonds  that we revisit more closely in Section III.

What the Federal Reserve Bank and its largest member banks, some European banks did with the $1.25 trillion Federal Reserve MBS purchase program in 2009 “QE 1” may leave some in disbelief. Consider an example from this MBS purchase program, the Federal Reserve gave a handful of banks $57.7 billion for a $600 million mortgage bond issued in 1980s . For a moment, recall that quantitative easing or ‘QE’ is the printing of dollars (or euros) in digital or paper form beyond the capacity to earn them through the production of goods and services. The banking and financial crisis in 2008 is often attributed to subprime mortgages, but it is not the mortgage loans per se, but the opaque $7 trillion or so mortgage derivative bonds (presumably containing mortgage loans) and $62 trillion in credit default swaps (CDS) ‘insurance’ derivatives built into the bonds and their insurers that make losses exponential.

I. Federal Reserve Bank & European Central Bank’s $8.01 Trillion Dollar-Euro Swaps

At the height of the crisis in the United States, the Federal Reserve Bank extended $8 trillion of the $10 trillion in dollar liquidity swaps to the European Central Bank through the Federal Reserve Bank’s creation of the Central Bank Liquidity Swap Lines [Data] as shown in the Voodoo Swaps Chart 1 below; swap agreements were with 14 foreign central banks. These dollar liquidity swaps in essence were loans, though not technically called loans, but merely a swap or an exchange of currencies between two central banks, neither central bank having $8.01 trillion U.S. dollars and about €6 trillion equivalent to do so.

In doing so, each central bank essentially helped the other to print dollars and euros. Another nearly $1 trillion in dollar swaps was with the Bank of England, equivalent to nearly half of the United Kingdom’s GDP.  The Federal Reserve printed dollars equivalent to 70% of U.S. GDP in 2008.

Banking & Financial Crisis 2008: Federal Reserve $8 trillion in dollar "loan" swaps with the European Central Bank

Voodoo Dollar-Euro Swaps Chart 1. Federal Reserve $8 Trillion in Dollar Liquidity “Loans” Swaps with the European Central Bank

TECHNICALLY, the Federal Reserve and the ECB did not swap $8.01 trillion dollars for euros at one time, as it would look somewhat problematic for the Federal Reserve Bank monetary system and the ECB because these trillions in dollars and euros do not exist. Continue reading →

Quantitative Easing 0-1-2-3∞ & The Federal Reserve’s Love Affair with its Banks and Mortgage Bonds: Levitating The Black Hole

Posted on by Lan Pham   

“A black hole is a region of spacetime where gravity prevents anything, including light, from escaping… Around a black hole there is a mathematically defined surface called an event horizon that marks the point of no return.”—Wikipedia

When Did QE Stop?

To much frenzied media coverage, the Federal Reserve Bank announced a third round of quantitative easing “QE 3∞“ on September 13, 2012. The Federal Reserve will essentially print unlimited quantities of dollars to purchase agency mortgage bonds and maintain nominal interest rates targeted at 0% (“ZIRP”) to keep borrowing costs reasonable for its member banks, among others.

“QE 3∞” in 2012 is the unlimited version of “QE 1” in 2009 following the banking and financial system crisis in September 2008. What does this mean?

QE is simply the printing of dollars in paper or digital form by the quasi-private Federal Reserve Bank, as the Federal Reserve does not have this money. In QE 1 (web), the Federal Reserve Bank printed $1.25 trillion to purchase agency mortgage-backed securities (MBSs). Agency MBSs are mortgage bonds (akin to a mutual fund filled with mortgages, peoples’ homes) issued and guaranteed or held by the quasi-private Fannie Mae and Freddie Mac.

On a practical level this means the Federal Reserve Bank printed $1.25 trillion with a computer stroke and became the owner or recipient of homeowners’ mortgage payments.  The Federal Reserve will do this on an unlimited basis in QE 3 going forward, as it states ‘to foster maximum employment and price stability’.

What is it about the Federal Reserve Bank’s love affair with mortgage bonds that the media and the Federal Reserve will not speak of?

 I.  QE0: Insolvency of the Largest Banks in the Federal Reserve System

Let’s pause for a moment. The most significant QE was not even called QE. It was the suspension of the Financial Accounting Standards Board’s (FASB) mark-to-market accounting rule 157 in April 2009. The rule required banks to value assets on their balance sheets at current market price or fair value, but since 2009, became what the banks hope it is worth or what they paid for it.

Doing so helps insolvent banks avoid the appearance of insolvency by not having to write-down the amount of losses on assets, such as mortgage bonds, assuming there is a willing buyer (There isn’t really). Private sector financing for the housing market through demand for private label MBSs, which are mortgage bonds backed by mostly subprime mortgages reincarnated as prime issued and sold by the largest banks, collapsed since fall 2008.

Let’s give this FASB suspension of mark-to-market accounting event a name, QE0 , to mark the point of no return in April 2009 about six months after the banking and financial collapse in September 2008.

Following the collapse, lawmakers in the U.S. House of Representatives lined up to threaten FASB in a series of hearings to suspend mark-to-market accounting, as Representative Michael E. Capuano (D-Mass.) warned FASB’s chairman in March 2009: “Do not make us tell you what you have to do.” (Transcript of the U.S. House of Representatives Mark-to-Market Hearing, March 12, 2009). The American Bankers Association, Citigroup, and the Bank of New York Mellon Corp., the world’s largest custodian of financial assets, also pressured for the rule change (web).

[On a side note:  MIT finance professor-CBO chief economist revised my memo to say that assets may already fully reflect market values. After I was fired I learned that MIT Professor Deborah Lucas called by the U.S. President to CBO in 2009 (web) has a CBO economist sit on FASB. This CBO economist and CBO Director Elmendorf are part of the Hamilton Project at the Brookings Institution. Robert Rubin is the project’s founder and Dr. Lawrence Summers, once chief advisor to the U.S. President, sits on its Advisory Council to promote economic growth and health care. Former Federal Reserve Bank Chairman Alan Greenspan, Robert Rubin, and Lawrence Summers were instrumental in the proliferation of derivatives in the late 1990s. ]

Let’s look at a few simple charts. What does QE0 FASB look like for the largest banks?

Voodoo Assets and Liabilities Chart 1:U.S. Commercial Banks Net Worth: Assets minus Liabilities - Can you spot the banking and financial crisis?

From Voodoo Chart 1, was there a banking and financial crisis in 2008 that froze global markets? From the crisis in fall 2008 to 2009, there is no change between assets and liabilities! No change, for what has been considered the worst banking and financial crisis in a century (a few?). Continue reading →

Welcome to Economics Voodoo!

Posted on by Lan Pham   

It was not long ago in fall 2010 that I was a senior congressional staffer financial economist at the Congressional Budget Office (CBO) when I was fired after 2 ½ months for writing about the damage from the banking and financial system collapse since fall 2008. The writings included ‘robo-signing’ foreclosures as symptomatic of deeper problems in the securitization of $7 trillion mortgage bonds that CBO denied was a problem and the condition of the nation’s banks.

I was told that CBO should take the lead in treating foreclosure problems as “the kind of event of the moment where we should be adding skepticism, not just repeating the hype in the press”  and my writing about it showed “poor judgment about what is important and what isn’t.” This came from my direct report, then-CBO assistant director and chief economist, currently MIT Professor of Finance Deborah Lucas who was called by the U.S. President in 2009 to serve in a leadership role at CBO. CBO Director Douglas Elmendorf, a Harvard Ph.D. economist, agreed that such writings lacked knowledge of economics and poor communication skills for not understanding what it meant to remove them.

For those unfamiliar, CBO is a small federal agency that scores (produces cost estimates) Congress’s bills and can make or break them with its scoring. CBO’s panel of economic advisors includes Goldman Sachs, Morgan Stanley, former Federal Reserve economists, and distinguished economists from academia who are or were former scholars of the Federal Reserve.

Closure to the Congressional Inquiry

After over a year of congressional inquiry, my story was first made public in the Wall Street Journal, “Congress’s Number Cruncher Comes Under Fire,” (Feb. 2, 2012) what the Journal allowed the public to know. When the true nature of the issues would not come out, I was stunned that the congressional inquiry led by Senator Grassley, Ranking Member of the Senate Judiciary Committee, also declined to release my letter to the public to expose the issues. This happened during the week the New York Attorney’s General announced the lawsuit against MERS, but that too went silent a few days after the nationwide foreclosure settlement. All understood the ramifications of the NY AG lawsuit against MERS. Continue reading →