many updates of c-story after sept 23rd
text....... + secondary_sausages_from_the_d.c._sausage_machine
dimanche 28 septembre
2008 10 h 18
firstname.lastname@example.org, email@example.com, firstname.lastname@example.org,
email@example.com, Ken6@Ken-Welch.Com, firstname.lastname@example.org,
LATEST FALSE PROSPECTUS FROM 'PAULSON'S' TREASURY
DECEITFUL TRANSFER OF BANK ASSETS TO BUYER WITHOUT RECOURSE
22nd/ 23 September 2008 (( original text ))
'PAULSON' SCHEME TEARS UP THE U.S. CONSTITUTION, LEGITIMISING FINANCIAL
IT'S AS THOUGH THE ORGANIZED CRIME CONTROL ACT OF 1970 DOESN'T EXIST
A U.S. 'COUP D'ETAT BY INSTALLMENTS', LIKE GERMANY IN 1933
• SECOND UPDATE, 26th
WHO'S BEING 'RESCUED'? THE BANKS? WRONG: THE CROOKS
When 'Paulson' was televised getting down on bended knee in front of
Pelosi, as though he was proposing to her (yuk), what do you suppose he
was saying, apart from possibly asking for a less prominent lamp post?
Here's what he may have been pleading to his co-conspirator:
'PLEASE vote for whatever convoluted version of the Plan comes out of
the works, because quite clearly if you do not, we'll be TOAST on
Monday. I don't care what Congress does, AS LONG AS YOU ALL VOTE FOR
SOMETHING, cuz then Dubya will be able to appear on TV and praise me
for having saved America and the whole world. But the underlying reason
that you MUST DO THIS, darhling, is that it's our pocket money, the
on-the-books cash that we need for our new trading platform, so's we
can continue our hypothecation operations after we get out of this
hellhole, like nothing ever happened. So be a dear, would ya?'
• FACT: The money that Paulson wants
Congress to deliver is indeed the crooks' trading platform money. They
cannot touch the Settlements. They cannot steal money any longer
without getting caught as has happened on multiple occasions. Their own
stolen money is stuck and cannot be brought onto the books because it
is illicit, and most of it is frozen. So they need some more cash so
they can start trading all over. They can turn $700 billion into
several trillion in weeks or less.
• FURTHER FACT: Embedded in this
deception, which has gone so predictably wrong and is being perpetrated
for public consumption, is the lie that the 'rescue' package (ANY OLD
package) will be the 'solution' to the crisis. However the mechanism
that will RESOLVE this hideous crisis is NOT THIS CHARADE, but
something ENTIRELY DIFFERENT, to which is attached a LETHAL DEADLINE.
The 'rescue package' serves an exclusively cosmetic purpose in this
We refer, of course, to the Settlements. This is all we are 'allowed'
to say at this juncture.
At an earlier stage of this Music Hall, 'Paulson' made some comment
about his original Plan 'sticking in his craw'. What will stick in the
craw of the American people, have no doubt, is that these odious crooks
are STILL DECEIVING, because the new money they are after IS NOT needed
for rescuing the corrupt banks at all, but for RESCUING THE CROOKS AND
THEIR CRONIES so that they can all go on playing tiddly winks after
they manage to escape from the Beltway.
But they may be making the arrogant and increasingly pathetic
assumption that they will never encounter any of those lamp posts in an
upside down position. At this rate, the American people may well have
the last word on that score. The game is well and truly up(side down)
when the so-called US Treasury Secretary is seen kneeling before the
Speaker of the House of Representatives like a mediaeval pilgrim
worshipping a saint. Or like Lavrenti Beria, Stalin's Interior Ministry
(MVD) Chief, who, having ordered the murder of millions, broke down and
fell on his knees in floods of tears when his executioners arrived at
his cell to deliver the standard bullet through the temple.
• FIRST UPDATE, 26th
THE AMERICAN PEOPLE EXPERIENCE THEIR LONG-AWAITED AHA! MOMENT:
It is quite obvious from the justifiably angry responses of ordinary
Americans interviewed for TV shows 'as we speak' that the wheels have
come off the 'Paulson'-Bernanke Bravado Circus Wagon.
No-one is 'buying' the criminalist operatives' attempt to bamboozle the
Congress into divvying up the on-the-books bribery and platform trading
money they are seeking so that they can revert to corrupt hypothecation
'dirty financial business as usual' when this disastrous Administration
leaves office (assuming it is not afforded the opportunity to implement
its now floundering 'coup d'etat by installments' scenario both
financially and physically).
Republican legislators are contemplating annihilation at the polls and
personal political oblivion if they vote for whatever package emerges,
which will most certainly NOT be what the two criminalist operatives
thought they could extract from the Legislative Branch by bluster and
stutter. Their plan is in tatters and their duplicity has now impressed
itself where it matters: on Main Street. This is the END of the road
for these crooks, and they know it. 'Paulson's' blackmail ('back us or
be wiped out at the election: be our guest') went down like a huge lead
balloon, as these veteran Congressmen, whatever their faults, are both
individually and collectively NOT STUPID.
They may be compromised, but none of them are sitting on their brains.
Everyone knows that the highest-level criminalist operatives are on the
wrack. There are even those who are now prepared to accept that this
crisis, which has driven Americans from their jobs and homes, with
their sons dying in wars launched for ruthless private gain, is about
one thing only: OPEN-ENDED OFFICIAL FRAUDULENT FINANCE OPERATIONS. The
'subprime mortgage crisis' was a 'slide' [see below].
As soon as this factor is understood by the general public, as seems
likely, there will be hell to pay. Applications for a Permit-to-Carry
arms have increased enormously in recent weeks and months, with
correspondents emailing the Editor with observations such as:
'Everyone I've talked to affirms they will die with their guns at their
hands. We'll fight! These people have overestimated themselves and
underestimated us "useless eaters"'.
Our view remains that what is about to change is that THE RULE OF LAW
will be re-established and that these criminal operatives will NOT get
away with their crimes. Certain information, backed by extremely
sensitive 'smoking gun' data, has been in the hands of the appropriate
authorities for about a week, that proves inter alia that these crooks
have engaged in war profiteering on a scale with no historical
precedent, which explains why Bush was never in the slightest
interested in the dead bodies that were and are being buried in
Arlington Cemetery, which ran out of space to take the daily new
arrivals. These people are brought up to INFLICT PAIN WITHOUT FLINCHING.
The intelligence in question is embargoed but it is believed that if
matters are not resolved, there will be an avalanche of revelations the
like of which has never been seen, even in the geomasonic United States
where, every year since the Editor started multiple visits in 1977,
there is ALWAYS a huge scandal raging inside the Beltway. The clear
intention is that with an imminent change of US Administration (just as
happens whenever the European Commission changes) the dirty washing
left by the outgoing Government will be incinerated. But we are not
talking just about dirty linen. We are talking about enormous, multiple
crimes, thefts, embezzlements and two million dead.
The Men and Women on Main Street are saying: 'What do you mean, you
want these dictatorial powers and you want us to pay you because 'Wall
Street got drunk?'', as the drunkard Bush II told the American people
on 24th September. 'YOU have been in power all these years, what
exactly have you been doing?'. The answer to that question is that
these highest-level criminals haven't been GOVERNING. They've been
looking after their criminal investments and spending all day and every
day wriggling and playing for time while drowning in the sewage from
their own cess pool.
The people have finally seen through the criminal duplicity of these
odious creeps, and the bipartisan accord sent to the White House at
about 3.00pm on 25th, followed by the White House Meeting from which
Shelby emerged saying 'There is no agreement', makes it clear that the
Bunker mentality rules. When Pelosi and Reid took 'Paulson' aside (on
camera) afterwards, what did they say to him? Something along the lines
of 'which lamp post do you fancy?' springs to mind.
The key to the new phase of this historically unprecedented crisis is
that the American people have at last experienced the necessary 'Aha!'
moment. It's curtains for these crooks. The curtain at the end of Act
One of Die Meisterschwindlern, starring the full cast of the
Weltkriminalgesellschaft, has collapsed on top of the cast. The lights
have gone out and there is a danger of a serious fire.
The building may have to be evacuated, but the management is drunk in
charge, so everyone is stampeding for the exit. The safety officers
have been asleep for years and now there's no-one around to give any
coherent orders. How are the mighty fallen!
And still no mention of the $14 trillion. Naturlich.
• 'Slide': A prepackaged, falsely
constructed 'consensus' mindset which precludes further analysis or
investigation, yielding a public perception preferred or intended by
• 'Kakocracy': 'Governance' by the worst
elements of society exclusively in their own interests and to the
permanent detriment of all other classes and members of society except
• 'Sib': A sophisticated deception which
reverses normal perceptions. The victim, whether actual or imagined, is
the perpetrator. Beware of those who protest too much, in this context.
• UPDATE, 24th September
DR BEN BERNANKE REFERENCES THE $14 TRILLION TWICE, BUT REDIRECTS
LYING THAT THE SUM RELATES TO THE MORTGAGES, WHICH IS A GRIEVOUS
During the hearings in Washington, DC, this morning, Dr Ben Bernanke
mentioned the aggregate amount of $14 trillion TWICE. However he
indicated that this amount references the total value of mortgages
outstanding. FACT: On 8th September the aggregate total of Freddie Mac
and Fannie Mae mortgages outstanding was $12.4 trillion. Dr Bernanke's
figure of $14 trillion implies that the total outstanding has risen in
two weeks by $1.6 trillion, which is IMPOSSIBLE NONSENSE.
Why did he SUDDENLY start talking about a figure of $14 trillion?
Because he is trying to divert attention from what we publicised in
this report [see below], namely that the $14 trillion sent over to pay
the Settlements is sitting in Citibank and has been blocked by these
criminals, of which Dr Bernanke is one.
Since Senators, officials, the military, Gold Badges and everyone who
is anyone under the sun had copies of yesterday's analysis (which was
distributed by US OFFICIALS for inter alia the hearings), Bernanke has
tried to OBFUSCATE THE CENTRAL ISSUE and to perpetrate the lie that the
$14 trillion references mortgages outstanding, WHICH IS NOT WHAT THE
$14 TRILLION IS FOR. The $14 trillion is the money allocated for the
Settlements. So here's ANOTHER RELATED QUESTION:
• WHY IS NOBODY IN THE CONGRESS OR THE
MEDIA NOW PICKING THIS UP AND EXPOSING THIS GIGANTIC DECEPTION? DO THEY
ALL HAVE A VESTED INTEREST IN COVERING UP THE BLOCKING OF THE
SETTLEMENTS, WHICH ARE THE SOLUTION TO THE ENTIRE FINANCIAL CRISIS
FABRICATED BY THIS WHITE HOUSE? We have SPECIFICALLY identified the
whereabouts of the $14 trillion funding belonging to the Settlements.
Bernanke is trying to deflect this reality by suddenly inventing a fake
figure of $14 trillion which he says is the total of mortgages
outstanding: and his purpose here is to acknowledge that there IS a $14
trillion number 'out there', but that it's to do with the mortgages,
putting everyone off the scent TO STOP THIS SCANDAL CATCHING FIRE.
FACT: In an exchange with a Pennsylvania legislator, he obliquely
revealed his knowledge of our report when he commented to the effect
that 'national and international studies of the Treasury's Plan had
been undertaken' without any further qualification. He was signalling
to the legislator that he knew about our report, but would he kindly
not ask any further pointed questions about it.
• UPDATE: SEE FOOT OF THIS REPORT
CONCERNING A SEPARATE MISREPRESENTATION
By Christopher Story FRSA,
Editor and Publisher, International
Currency Review, World Reports Limited,
London and New York. For earlier reports, press the ARCHIVE. Order your
intelligence subscriptions and our 'politically incorrect' intelligence
books online from this website.
London, 22nd September 2008 (( original text )):
GREENSPAN’S $14 TRILLION REPORTED LIE TO CNBC’S LEESMAN ON 22ND
US sources inform the Editor that the CNBC’s financial reporter Steve
Leesman stated that Greenspan told him that on Thursday 18th September
2008, the United States ‘almost went bankrupt because there was NO CASH
What Greenspan did NOT tell the CNBC’s Leesman is that Citibank
currently holds $14 trillion which Greenspan, ‘Paulson’, Cheney, Bush
Sr., Bush Jr., Clinton 42, Hillary Clinton, Robert Rubin and other
organised crime operatives posturing as responsible holders of high
office, have hijacked and systematically prevented from being mobilised
for the Settlements.
The funds, sent from abroad, have been resident in Citibank precisely
to finance the Settlements.
FACT: In June and July 2007, we reported that Greenspan had been
arrested. This information was not only posted here, but was publicised
The Editor has on his desk an email from the most senior Trustee level
dated 25th June 2007 and timed at 01:38 am UK time, containing the
‘Christopher, I was able to get confirmation of Greenspan’s arrest.
However, my ‘Group of Eight’ intelligence said he is under house
arrest, not in jail’.
When the Editor read this email over the transatlantic line on 22nd
September 2008 to a contact, he was told: ‘I can confirm the accuracy
of that statement’.
• Of course, the US ‘mainstream media’
never reported that Greenspan was arrested, and have continued to
regard this criminal operative as a guru whose every word must be
revered and treated as holy writ. This places them at something of a
disadvantage when it comes to assessing the accuracy of his statements.
$14 trillion is a lot of liquidity, even by Greenspan’s lying standards.
ANOTHER FRAUDULENT PROSPECTUS FROM THE KING OF OFFICIAL FRAUDULENT
The following summary analysis of the so-called 'unprecedented rescue
plan' unveiled by the US Government to mindless global applause on
Sunday 21st September 2008, represents a fraudulent prospectus that
exploits and perpetuates the very skulduggery that is responsible for
The skulduggery in question revolves around the fact that when bank
loans are securitised and sold on to buyers, usually foreigners who
haven't done adequate due diligence, the sale qualifies as a sale of
assets. The seller (the bank) retains NO RISK OF LOSS from the transfer
of these assets and has NO OBLIGATION TO THE BUYER if:
• The borrowers of the original loans
default on their payments; or:
• Changes in market values of the on-sold
securities take place.
In other words, the risk is transferred from the bank to the owner of
the securities, and if the borrower defaults, it's not the bank's
problem, it's the problem of the owner of the securities.
SEE OUR ARTICLE DATED 26 DECEMBER 2007 ON THE FRAUD UNDERLYING
There is no difference, in principle, between this mechanism and the
fraud model employed to ransack the mortgage sector. In that context,
the bank sold the mortgage either directly or else repackaged as a
securitised pool of assets, to the Government-Sponsored Enterprise
(GSE) of choice (Freddie Mac or Fannie Mae), and walked away clear
having alienated the contract and leaving the so-called 'owner' of the
mortgage without a valid contract (1).
At foreclosure, those mortgage-holders who have had the presence of
mind to notify the Court beforehand that they have requested the
original contract from the bank and have been unable to obtain it in
time for the hearing (because the bank has sold the contract on to the
corrupt GSE in question), have been 'heard' by the Court and have
usually been told that they can hold onto their property and that the
foreclosure is null and void. For further details, please refer to our
report dated 26th December 2007 entitled: 'The 'subprime' 'slide' that
masks fraudulent finance' [Archive].
THE LATEST 'STICKING PLASTER' FRAUD FLOATED BY THE U.S. TREASURY:
As promulgated for public consumption, the latest of these proposals
which the cornered 'brains' in the Treasury and elsewhere have been
coming up with on an almost daily basis as they seek to establish which
sticking plaster has the strongest holding power, the latest 'rescue'
proposal that the US Government is trying to ram through the Congress
would allow the Treasury to buy up 'toxic' debts from recalcitrant
financial institutions, including US branches of foreign banks, to 'try
to stem the worst financial crisis since the Great Depression'
according to The Daily Telegraph. Like the entire so-called
'mainstream' media, this newspaper has STILL failed to grasp that this
crisis arises NOT from a failure of the system, but because of rampant
fraudulent finance and the abject (we would say co-conspiratorial)
failure of the US Regulators to do their job.
None of the plasters have come up to 'scratch' so far because all seek
to bypass the on-the-books Settlements that the US Treasury Secretary
and his accomplices have been blocking in order to try to avoid
incriminating themselves more than they are already incriminated.
Since fraudulent finance is what these 'brains' specialise in, we
should not be surprised that the so-called 'rescue' plan exploits the
fraud outlined above, with the variation that the 'toxic' securitised
assets that will be repackaged for onward sale again, will be given
some falsely determined value created out of thin air and justified by
an official US Government imprimatur.
The underlying asset will remain trash, but the US Government will say
it isn't trash.
INSTITUTIONS WILL WALK AWAY FROM THE SCENES OF THEIR CRIMES:
Meanwhile the institutions, which have been engaged in fraudulent
finance operations and are therefore no different from criminal
enterprises, will get to walk away from the scenes of their crimes with
a peculiar sum of $700 billion, which just happens to match the
liabilities in a certain Virginia bank that cannot be repackaged in
this manner; and the money will wind up in the pockets of the official
and institutional perpetrators of this latest variation of the fraud
PROPOSED LEGISLATION AMOUNTS TO A DE FACTO COUP D'ETAT:
To make matters far worse, the legislation that is now being rammed
down the Congress's throat, will amount to a coup d'etat reminiscent of
the 'coup d'etat by installments' (2) perpetrated at the outset of
Hitler's Third Reich in Germany. This is because the proposed bill
trashes what little remains of the US Constitution by providing that
one Branch of the American Government, the Judicial Branch, will be
precluded from oversight of what the US Treasury Department, which is a
component of the Executive Branch, will be 'permitted' to do under this
• No single Branch of the US Government
can constitutionally combine with another Branch to nullify powers of
the third Branch, whether such arrangements are labelled 'temporary' or
Since this is precisely what is being proposed, the legislation that
the Congress is being hassled to pass, on the pretext of almost force
majeure, represents a coup d'etat in all but name. Legislators voting
for this measure will incriminate themselves, thereby joining all the
US officials and office-holders who are seeking to perpetrate this
grotesque putsch against the Constitution and who are themselves, as
most legislators know full well, the architects of the crisis that they
are now using as a pretext for the assumption of these near-dictatorial
CONGRESS MUST SAY NO, OR IT DESTROYS ITSELF TOO:
Irrespective of the consequences, the Congress must say NO. This would
be a safe bet anyway, because this proposal won't 'fly' with either the
US taxpayer or in the international financial markets generally. The
main reason for this is that the furore surrounding the endless US
blocking of the Settlements and the consequent destabilisation of the
entire global financial system and economy has had the effect of
causing scales to fall from the eyes of counterparties worldwide.
This will explain why new counterparties are planned, including an
operation in Africa which, we are led to believe, will be headed by
none other than the US Treasury Secretary himself after he has left
office. This man is the primary apparatchik who is responsible for the
According to our sources, he will have at his disposal a considerable
volume of the $700 billion that the US Government is asking the Rest of
the World to provide, ostensibly to extract the US official
perpetrators out of the grave that they have been digging for
themselves thanks to their ongoing determination to perpetuate these
fraudulent finance operations, rather than fulfilling their obligations
to the American people and the Rest of the World to clean up their act.
THE SOLUTION TO THEIR PROBLEM, SERIOUSLY, IS MICHAEL C. COTTRELL'S
For the solution to their problems, after payment of the hijacked
Settlements, please see the simple Plan framed by the US securities
expert Michael C. Cottrell, B.A., M.S., which has been reposted for the
third time on our website (dated 18th September 2008).
ANALYSIS OF THE FRAUDULENT FINANCE LURKING INSIDE THIS LATEST FALSE
We will now analyse the financial fraud that resides at the centre of
the most recent 'sticking plaster' proposals concocted by the US
financial authorities, in more detail.
As will be seen, far from healing the wound, it pours more venom into
the bloodstream, with the certainty that the entire limb will succumb
to gangrene, requiring later amputation at the thigh:
• SECURITISATION: In this context, it
means the conversion of BANK LOANS as well as other assets into
marketable securities for sale to investors (who may not do their due
(1) The securities offered for sale can be purchased by other
depository institutions or nonbank investors. The selling bank is not
fussed who buys the securities, as long as it gets rid of them.
(2) Securitisation can also mean financing through FLOATING RATE NOTES
and Eurocommercial paper, replacing bank loans as a means of borrowing.
This is a form of securitisation, too.
• WHAT SECURITISATION ACHIEVES for
financial institutions (the only parties they care about):
... By securitising bank loans and credit receivables, US financial
institutions are able to REMOVE bank assets from the balance sheet if
certain conditions are met, thereby BOOSTING capital ratios, whereupon
the institution can extend fresh loans from the proceeds of the
securities that have been sold to investors (who are indeed unlikely to
have done their due diligence, not least in this context because they
will be bamboozled by the official US Government imprimatur).
• THE PROCESS: So what this gimmick does,
is it effectively MERGES THE CREDIT MARKETS (for example, the mortgage
market, within which lenders can extend NEW mortgages) with THE CAPITAL
• Bank receivables are repackaged as bonds
collateralised into pools of mortgages, auto loans, credit card
receivables, leases, and other types of credit obligations: AND:
• Since the banks look to investors as the
ultimate holders of the new obligations created via bank lending,
financial institutions as an industry have become more inclined to act
more as SELLERS OF ASSETS, rather than as PORTFOLIO LENDERS which
traditionally keep all the loans that they have originated in their own
portfolio. Banks now operate more as marketing platforms than as
• SECURITISATION also redefines the
standard banking sector definition of ASSET QUALITY, and loan
underwriting standards, because LENDERS are focused on LOAN QUALITY
only insofar as it facilitates MARKETABILITY IN THE CAPITAL MARKETS.
It's all about MARKETING THE NEW SECURITY, rather than the PROBABILITY
OF REPAYMENT by the borrowers of the bank loans.
• NON-RECOURSE: THE SECRET OF PAULSON'S
DECEPTION AND FRAUD MODEL:
SO, IF A BORROWER DEFAULTS, the bank is off the hook because it sold
the loan to a third party and the bank has its money already. The
injured party is the holder of the security (the third party) who is
left holding a worthless asset, and is stuck with the problem of
NON-RECOURSE. The third party cannot claim the value back from the bank
because the bank has washed its hands of the loan when it sold the loan
repackaged as an asset-backed security to the third party buyer.
A subsidiary fraud buried in this deception is that since the
securitised 'asset' consists of a pool of the aforementioned
securities, the borrower's default is glossed over and the third party
doesn't get to know about it. But of course:
• THIS MEANS THAT THE VALUE OF THE
SECURITISED ASSET IS BY DEFINITION UNQUANTIFIABLE...
• WHICH IS BLATANT, OUTRIGHT FRAUD...
• AND A GROSS BREACH OF SECURITIES
REGULATIONS BY THE ISSUING BANK...
• WHICH NONE OF THE ISSUING BANKS WANT YOU
TO KNOW ABOUT.
SO, THE U.S. TREASURY PROPOSES TO INSTITUTIONALISE THESE FRAUDULENT
Therefore, what the US Treasury is proposing is to institutionalise
this fraudulent process and to 'legitimise' it by appending the
imprimatur of the Full Faith and Credit of the United States, as though
the securitised assets in question have suddenly acquired real value,
which is UNTRUE.
By extension, this means that the US Treasury proposes to perpetrate
the same criminal financial fraud model that we have exposed, and to
pass it off as 'legit' on the basis of its expectation that parties
foolish enough to buy these 'assets' won't have done adequate due
SORRY, BUT THERE AREN'T ANY COUNTERPARTIES LEFT WITH SCALES ON THEIR
This is not going to work because, as indicated above, there aren't any
willing counterparties around any more. US skulduggery has gone on far
too long, and the Governments that are being asked to cough up the $700
billion to finance the pocket money that these people covet, are very
unlikely to want to know. Especially after the American Government's
and Treasury's reputation for honourable dealing has been wallowing in
the gutter for the past several years, as a consequence of its
hijacking of the Settlements funds, the stealing of The Queen's gold,
and the misuse of her funds with Citibank to finance deals to make
quick bucks for insiders, contrary to the Rule of Law. Furthermore:
• FOR REGULATORY REPORTING PURPOSES, a
loan that is CONVERTED INTO A SECURITY and SOLD as an ASSET-BACKED
SECURITY qualifies as a SALE OF ASSETS.
• The seller (the institution) retains NO
RISK OF LOSS from the assets transferred, and has no outstanding
OBLIGATION to the BUYER OF THE ASSET-BACKED SECURITY if:
(1) The borrower defaults; or:
(2) Changes occur in the so-called market value of the asset-backed
securities sold on.
• IN OTHER WORDS, THE HOLDER OF THE
ASSET-BACKED SECURITY HAS NO RECOURSE.
• By contrast, asset transfers where the
buyer does have RECOURSE against the selling institution are treated as
FINANCINGS, or else as BORROWING SECURED BY ASSETS.
Source: Thomas Fitch, 'Dictionary of Banking Terms', Third Edition,
Happauge: Barron's Educational Series, Inc., 1997, s.v.,
One other definition will assist comprehension of the fraudulent
finance that the US Treasury wants the US Congress to rubber-stamp:
• SYNTHETIC ASSET: A synthetic asset is a
value that is artificially created using other assets, such as
securities, in combination. Also known as a 'Structured Note'.
Source: John Downes and Jordan Elliot Goodman, 'Dictionary of Finance
and Investment Terms', Seventh Edition, Happauge: Barron's Educational
Series, Inc., 2006, s.v. 'Synthetic Asset'.
THE INTENDED FRAUD IS MULTIPLE FRAUD:
In summary, what is intended is a perpetuation of the following
technical securities frauds:
• It is securities fraud if the lender
fails to inform the borrower that the loan has been sold on.
• It is securities fraud if the lender
fails to inform the buyer of the repackaged so-called asset-backed
security that the borrower has defaulted, may well default, or that the
cashflow from the borrower may be unreliable. Since that is standard
practice with these frauds, the buyer of the asset-backed security pays
a false price for a 'piece of paper' the value of which, by definition,
will remain unknown.
For the US Government to enter into such fraudulent finance operations
as Principal risks destroying what remains of the Full Faith and Credit
of the United States, within a matter of days or weeks. No-one who is
not sitting on their brains is going to buy this 'solution' to the
financial crisis, not least because the whole world is now aware that
the US Government cannot be trusted and that its behaviour over the
Settlements has been criminal.
The only parties who are being bamboozled by this ramp are the stupid
'mainstream' talking heads.
PRECISE DEFINITIONS FOR REFERENCE:
The 'Dictionary of Banking Terms' by Thomas P Fitch [Third Edition,
Happauge: Barron's Educational Series, Inc.,] published in 1997,
defines SECURITIZATION as follows:
'SECURITIZATION': 'Conversion of bank loans and other assets into
marketable securities for sale to investors. Securities offered for
sale can be purchased by other depository institutions or nonbank
investors. More broadly, corporate financing through Floating Rate
Notes and via Eurocommercial paper, replacing bank loans as a means of
borrowing, is a form of securitization.
By securitizing bank loans and credit receivables, US financial
institutions are able to remove bank assets from the balance sheet if
certain conditions are met, boosting their capital ratios, and make new
loans from the proceeds of the securities sold to investors. The
process effectively merges the credit markets (for example, the
mortgage market in which lenders make new mortgages) and the capital
markets, because bank receivables are repackaged as bonds
collateralized by pools of mortgages, auto loans, credit card
receivables, leases, and other types of credit obligations.
As the banks look to investors as the ultimate holders of the
obligations created by bank lending, banks as an industry are inclined
to act more as sellers of assets, rather than portfolio lenders that
keep all the loans they originate in their own portfolio.
Securitization also redefines the banking definition of ASSET QUALITY,
and of loan underwriting standards, because lenders will be looking at
loan quality more in terms of their marketability in the capital
markets than the probability of repayment by the borrowers.
For regulatory reporting purposes, a loan that is converted into a
security and sold as an asset-backed security qualifies as a sale of
assets. The seller retains no risk of loss from the assets transferred,
and has no obligation to the buyer for borrower defaults or changes in
the market value of securities sold. Asset transfers where the buyer
has RECOURSE against the selling institution, are treated as financings
or a borrowing secured by assets.
Securitization of bank assets is further complicated by Securities and
Exchange Commission [SEC] regulations, and accounting guidelines...'
... And the reason for THIS is that the securities market environment
is far stricter and inimical to financial fraud than the banking sector
environment. The abandoned Glass-Steagall Act legislation will have to
be restored in a new, updated format, as requested by Michael C.
Cottrell, B.A., M.S., in his proposals displayed at www.worldreports.org
dated 18th September 2008 [Archive].
The 'Dictionary of Finance and Investment Terms', by John A Downes,
A.B., and Jordan Elliot Goodman, A.B., M.A. [ 'Dictionary of Finance
and Investment Terms', Seventh Edition, Happauge: Barron's Educational
Series, Inc.], published in 2006, defines ASSET-BACKED SECURITIES thus:
'ASSET-BACKED SECURITIES': 'Bonds or notes that are backed by loan
paper or accounts receivable originated by banks, credit card
companies, or other providers of credit and often "enhanced" by a bank
LETTER OF CREDIT or by insurance coverage that is provided by an
institution other than the issuer. Typically, the originator of the
loan or accounts receivable paper sells it into a specially created
trust [or subsidiary corporation: see below: Ed,] which repackages it
as securities with a minimum denomination of $1,000 and a term of five
years or less. The securities are then perhaps underwritten by
brokerage firms who reoffer them to the public. Examples are
CERTIFICATES FOR AUTOMOBILE RECEIVABLES (CARs) and so-called plastic
bonds, backed by credit card receivables.
Because the institution that originated the underlying loans or
receivables is neither the obligor nor the guarantor, investors should
evaluate the quality of the original paper, the worth of the guarantor
or insurer, and the extent of the protection'. ENDS
SELLING THE ASSET-BACKED SECURITIES ON: WHO TO?
The US and international financial markets are no more enamoured of
this latest attempt by the US Treasury to pull a rabbit out of a hat
full of holes than about any of the earlier 'rescue' operations, which
all have one feature in common: their primary functions are to serve
the interests of a very small clique of criminalist 'insiders' who have
been engaged in ransacking the financial markets for private gain, and
to finance the operations of the 'State within the State', namely the
Intelligence Power, which, due to its power of penetration, controls
all dimensions of Government, starting with the White House itself.
Basically, the latest Treasury proposal, which almost seems to be
withering on the vine before it gathers any traction, is all about the
Treasury acquiring new cash so that the new money can be siphoned off
to 'insider' operations controlled by the highest-level operatives.
MODELS FOR THIS NEW VERSION OF THE SAME OLD FRAUD:
The models for this unconscionable abuse of financial power by
officials and holders of high office relate to Delmarva Timber Trust,
Meridian Investments, Alpha Holdings and the primary slush-fund
operation, Carlyle, which is similar in concept and origin to the
notorious AIG, which has been at the epicentre of CIA fraudulent
finance operations for decades. As another analyst has pointed out, the
$85 billion bridging loan (offset by funding from the Reserve Bank of
Australia) extended by the US authorities to AIG, gives the Government
an 80% share in AIG, 'a move that will prevent external players from
peering into AIG's myriad intelligence operations on behalf of the CIA'
WE 'PEER INTO AIG'S MYRIAD INTELLIGENCE OPERATIONS ON BEHALF OF THE
This entity was chaired, until his enforced resignation, by Maurice
'Hank' Greenberg, a close friend of Dr Henry Kissinger. AIG's
operations in Asia are reported by the same source (3) as having
pre-dated the CIA and its predecessor, the wartime Office of Strategic
Services (OSS). AIG's brand new building in Hong Kong had been intended
as a key outpost for CIA operatives assigned to China.
But Chinese intelligence succeeded in thoroughly wiring the building
with surveillance systems, so that AIG's China operations on behalf of
the CIA were blown. With the US Government now in full control of AIG,
the George Bush Center for Intelligence (Langley) and the Bush Family
will, as this source noted on 18th September, 'breathe a lot easier'.
Well, not actually...
Because any investigative journalist can easily 'peer into AIG's myriad
intelligence operations on behalf of the CIA' by accessing the rollcall
of AIG subsidiaries listed by the State of Delaware. On 21st September
2008, this list contained 747 names, of which an initial sample is
SAMPLE LIST SHOWS THAT AIG DELAWARE SUBSIDIARIES SERVICE THE 'BOX GANG':
It will be noticed that the name 'Baker' appears frequently, and that
there are some entities containing the name 'Chelsea'. Do we need to
explain that 'Baker' entities are connected with George Bush Sr., and
'Chelsea' entities with the Clintons?
One way that such entities are financed is through the issuance, for
instance, of AIG shares to the subsidiary, which then uses the shares
as collateral for bank loans. The proceeds are then placed into trading
programs for private enrichment and off-off-budget financing (also
known as 'Black' Budget') purposes. Hence, the earlier exotic 'rescue'
of AIG represented (as is the case with each successive, ever more
'exotic', US official initiative to get the official perpetrators of
financial fraud off the hook), a 'backside protection operation', to
escape, for instance, Chapter 11 proceedings and the appearance on the
scene of Trustees, who would expose the fraudulent finance that has
been going on and would be legally obliged to report such glaringly
criminal operations to US law enforcement authorities.
Entities such as the AIG Delaware corporations shown here represent
improperly audited CIA and 'Black Ops' enterprises to which securitised
assets such as those reviewed above, might be on-sold. An immense
amount of 'smoking gun' information along similar lines is available to
be mined; and relentless exposure of such fraudulent finance activities
must accompany wholesale reform of the system, for example along the
lines proposed by Michael C. Cottrell, B.A., M.S., and reposted on this
website on 18th September 2008, if the Republic is to stand even a
slight chance of ever hoping to redeem its tarnished reputation with
the Rest of the World:
FILE NUMBER + ENTITY NAME
2143191 AIG ACQUISITION CORP.
2227137 AIG ACQUISITION CORP.
3304183 AIG AJV, INC.
4252940 AIGALON CAPITOL, LLC
3311083 AIG ALTA GREEN, L.L.C.
4283528 AIG ALTARIS HEALTH CAPITAL, LLC
4323757 AIG ALTARIS HEALTH PARTNERS II, L.P.
3574541 AIG ALTARIS HEALTH PARTNERS, L.P.
4295554 AIG ALTARIS MASTER GP, L.P.
3034312 AIG AMB GREENFIELD INVESTMENT ALLIANCE, L.L.C.
'Only by banning the Communist deputies and by resorting to
intimidation and mendacity did Hitler secure on March 23 the necessary
two-thirds vote in the new Reichstag for an Enabling Act that
transferred legislative authority to his Cabinet, ostensibly for four
• BE AWARE that the 'Paulson, 'rescue
plan' is supposed to be TEMPORARY. DON'T BELIEVE IT.
'A wave of Nazi purges followed, as one institution after another was
subjugated. Arbitrary rule replaced government by law in what has been
aptly termed a "coup d'etat by installments"'.
• UPDATE, 24th September
2008: It has been
falsely asserted that the Editor of this service has highlighted US
official financial corruption 'in order to mask' parallel corruption in
the United Kingdom in general, and at the Bank of England in
particular. This is a deliberately concocted diversionary allegation
and non-sequitur which has no basis whatsoever in fact.
On the contrary, the Editor is as furious and distraught about official
and financial corruption in the United Kingdom as about the
giga-corruption scandal that we have helped to expose in the United
States. In 2007 not only did we publicise the arrest of Greenspan, but
we likewise publicised the fact that Eddie George, the former Governor
of the Bank of England, had been arrested, as well.
Furthermore, we displayed mugshots of these two operatives side by side
in our financial journal International
copies of the relevant issue of which are always available from this
website at any time, and may be inspected at many libraries in the
United States. We would hardly have exposed the former Governor of the
Bank of England if we had been somehow seeking to cover up parallel
corruption in the United Kingdom. We are not double-minded.
One problem in Britain is that the UK Establishment* is much 'tighter'
and so harder to expose for corruption than is the case in the United
States, where the 'freedom' tradition is deeply embedded. It is indeed
a huge tribute to the ongoing resilience of this US tradition that it
has been possible to destabilise these US criminalist rats to the
extent that has now become universally apparent.
In addition, the British people have the problem that we have TWO
Governments, due to the treachery of elements of the political
Establishment, the European Commission (EC) being the overriding one.
The EC is a snakes' nest of horrendous internationalist corruption
which has developed an armoury of spurious techniques for fending off
investigations and exposure.
On the preceding occasion that we exposed this vast EC corruption, the
British 'mainstream' media avoided all reference to these exposures. We
subsequently published the complete list of those feckless British
journalists who had received the relevant information and had ignored
all of it, and exposed them for the mind-controlled cowards that they
are, as well.
It is a malicious non-sequitur to suggest that the Editor has exposed
US official corruption in order to divert attention from parallel
financial corruption in Britain. On the contrary, we cannot and will
not rest until the necessary parallel exposures occur here too, however
they may materialise.
*The Editor was educated at Eton and Christ Church, Oxford, so he can
hardly be accused, either, of being anything other than a strictly
objective observer in this context. He has contacts all over the place,
including intelligence, but is completely free-standing and cannot be
told what to do by anyone. That is the whole and absolute purpose of
these services. Independence is the key.(...)
SECONDARY SAUSAGES FROM THE D.C. SAUSAGE MACHINE
WASHINGTON THEATRE DIVERTS ATTENTION FROM THE PRIMARY SAUSAGES
September 2008 20:40
By Christopher Story FRSA,
Editor and Publisher, International
Currency Review, World Reports Limited,
London and New York. For earlier reports, press the ARCHIVE. Order your
intelligence subscriptions and our 'politically incorrect' intelligence
books online from this website.
London, 27th September 2008:
WHATEVER FLAVOUR WAS ORDERED, WON'T BE DELIVERED
Last week, the newly installed Washington-based sausage machine was
primed by the Chief Sausage Makers, Messrs 'Paulson und Bernanke', to
bring forth a splendidly flavoured batch of sausages with a long
shelf-life, so that the manufacturers themselves could stock up with
food for the winter months ahead, without having to worry about how to
make ends meat (oops, meet).
Having primed this sausage machine, it cannot now be turned off until
it has completed the cycle, so the manufacturers are lumbered with
having to accept whatever flavour of sausage comes out.
Unfortunately, due to a strike, or several strikes, on the shop floor,
the production line has, the manufacturers now contend, been sabotaged,
to such a degree that unwanted ingredients have been inserted into the
mix, which will now deliver sausages with a bitter taste from the
purveyors' perspective. And since they cannot turn the machine off
until it has completed its cycle, they are stuck with whatever flavour
of sausage is delivered the other end.
This is very embarrassing, as the sausage manufacturers had informed
their entire marketplace that the sausages in question will taste very
nice, even though they will be the most expensive sausages ever made
(costing an estimated $700 billion). Accordingly, since the entire
marketplace is expecting sausages to be delivered (because they have
been so advised), the manufacturers have no choice but to proclaim the
success of their new recipe (even though when they come to sample the
new sausages they may choke and regret that they ever started up the
PREVIOUSLY SHUT-DOWN SAUSAGE EQUIPMENT BROUGHT BACK INTO PRODUCTION
They will do this, in reality, in order to cover up the fact that the
older sausage-making equipment, which the manufacturers themselves took
out of service in June 2006, finally had to be started up again in
recent days because huge orders for sausages that had accumulated over
the years have to be fulfilled, in the face of sanctions that have been
threatened by the International Association of Sausage Makers
headquartered in key foreign capitals, should the long overdue
consignments of sausages not be delivered by the time the Pacific Rim
sausage markets open on Sunday evening.
The Washington-based sausage manufacturers have been collectively
informed that should the veteran sausage-making equipment be
compromised by the manufacturer for his own purposes on this occasion,
the entire sausage market may be closed to American sausage
distributors with no further warning. This is one reason why a
SECONDARY sausage manufacturing cycle was initiated.
PERCEPTION MANAGEMENT PURPOSES OF THE SECONDARY SAUSAGE PRODUCTION LINE
The 'success' or 'failure' of this secondary sausage-making cycle will
provide the 'deep' cover that the manufacturers need, to enable them to
micromanage either the rehabilitation of the worldwide sausage market,
or its collapse. In the event that the secondary production line can
complete its cycle successfully, then all the praise will be heaped
upon the manufacturers and their most senior Executives alone. But
should the secondary production cycle be interrupted, fall seriously
short of expectations or fail in any way, shape or form, the
manufacturers will, they believe, be in a position to deflect all the
blame from themselves and to redirect it to targets of their own
Although the sausages to be delivered from the expensive new equipment
will have a bitter taste, the Board concurred at its meeting in
Washington on 26th September with the decision of Quality Control to
the effect that, in the grim circumstances, ANY flavour of sausage
delivered by the new equipment will be acceptable, notwithstanding that
Members of the Board won't like the new taste.
It is understood that the Ingredients Department is still, even at this
late stage, experimenting with various flavours, although the
production line was programmed to deliver a pre-specified range.
The Managing Director did make an unfortunate remark about 'this sucker
going down', but it is understood that he may have been referring to
rubber suckers that got stuck in the main sausage duct, which engineers
should remove just in time for the secondary sausages to be delivered.
Given the narrow choice he faces, it is assumed that the Managing
Director will choose to exploit the theatrical delivery of the costly
emergency sausages, since this 'achievement' will provide the Board, as
intended, with an opportunity to pull a pigs' ear out of the new
equipment so that it can be waved about in triumph before the entire
marketplace amid a hurriedly orchestrated advertising campaign
proclaiming that the new sausages are absolutely delicious and will
keep the world fed for many years to come. The fact that the new
sausages, as opposed to the bulk consignments, will taste absolutely
disgusting, at least to the Board, will not be revealed, even though
the advertising campaign will probably contravene all relevant trades
descriptions legislation on the Statute Book.
THE BOARD RECEIVED A FINAL DEMAND TO FULFIL THE OLD SAUSAGE CONSIGNMENTS
What the Board will not reveal, of course, is that it ran out of
options and had to start up the older equipment in order to fulfil the
orders that it had perversely suspended, within the extremely tight
timeframe alluded to above. The London office of the International
Association of Sausage Makers is reported to have delivered its FINAL
DEMAND a week ago, setting precisely one week for total completion of
the delayed bulk sausage orders, failing which the Board and all US
sausage outlets may be hit with consequences far more drastic than the
world sausage industry ever thought likely.
Although the secondary sausages will have a bitter taste, any primary
consignments from the older equipment will be received with joy and
gladness throughout the international sausage market, so that the
Managing Director of the Washington sausage purveyor will bask in
Knowledgeable observers of the global sausage market will be revolted
at the Managing Director's prospective (as with his past) behaviour,
but pragmatists take the view that this is a small price to pay for the
final consignments of delicious sausages that should have been
delivered years ago.
Those present at the Board Meeting on 26th September 2008 who knew what
is really intended were 'Paulson', Cheney, the Managing Director (Bush
II), Mr Cain and Obama, and probably Pelosi and Reid. The other
observers at the meeting may not have been aware of the specifics,
which, in a nutshell, entail the proclamation of a sausage deal that
will divert the market's attention from the primary, long delayed
sausage consignments, and will enable Mr Cain and Obama to be
'separated from' the Managing Director, whose future will be decided
either next week (should this stratagem and course of events prove
disastrous), or at a future date.
As you probably know, sausage manufacturing factories are very smelly
places to work in.
Furthermore, in an environment as smelly and dirty as this, protective
clothing must be worn at all times. For this reason, the Editor accepts
no responsibility for any smells that may arise from this considered
assessment, which nevertheless conforms to our usual Health and Safety
PS: Paulson und Bernanke GmbH are purveyors of toxic sausages to
Chancellor Angela Merkel.