The World’s Largest Money-Laundering Machine: The Federal Reserve - FORECLOSURE FRAUD

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The World’s Largest Money-Laundering Machine: The Federal Reserve

The World’s Largest Money-Laundering Machine: The Federal Reserve

Zero Hedge-

The Fed policy’s first-order effect is to issue hundreds of billions in “free money” to banks; the second-order effect is to destroy the rule of law in the U.S.

Let’s start with a few questions about the proper role of the Central State and Central Bank: why should they bail out private banks? The answer boils down to something like this: “If the private banks absorbed the losses that are rightly theirs in a capitalist system, they would implode. Since the State and Central Bank have enabled these private banks to infiltrate and dominate the nation’s financial system, that system is now hostage to these private ‘too big to fail’ banks.”

In other words, “capitalism” in America now means socializing losses and privatizing profits generated by State and Central Bank intervention. Imagine for a moment the “beauty” of this system for owners of private banks: in a truly socialized banking system, the taxpayers would absorb any losses, but the State would also benefit from any future bank-sector profits. In the U.S. system, the losses are socialized but the people draw no benefit; the profits flow to the top 1/10th of 1% private financiers.

This is the perfection of State-financier crony capitalism.

Let’s next ask why the Central State and Central Bank should subsidize and bail out the mortgage industry, a major component of private banking. Once again we find losses are neatly distributed to the citizenry while the profits all flow to private hands. Given that 98% of all mortgages are backed or guaranteed by Federal agencies (Fannie Mae, Freddie Mac, Ginnie Mae, FHA, VA, FmHA, etc.), the mortgage market is already completely socialized: the taxpayers are on the hook for any and all losses, but the profits from originating and servicing the loans are all private.

Oh yes and it goes to mention MERS:

In a nation in which rule of law existed in more than name, here’s what should have happened:

1. The scam known as MERS, the mortgage industry’s placeholder of fictitious mortgage notes, would be summarily shut down.

2. All mortgages in all instruments and portfolios, and all derivatives based on mortgages, would be instantly marked-to-market.

3. All losses would be declared immediately, and any institution that was deemed insolvent would be shuttered and its assets auctioned off in an orderly fashion.

4. Regardless of the cost to owners of mortgages, every deed, lien and note would be painstakingly delineated or reconstructed on every mortgage in the U.S., and the deed and note properly filed in each county as per U.S. law.

[ZERO HEDGE]

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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2 Responses to “The World’s Largest Money-Laundering Machine: The Federal Reserve”

  1. Sarah says:

    Well, this is all nice and alarmist, but if 0Hedge were a bit less sensationalistic,and not that these ideas don’t sound good (and expensive in a different way) there has been one form of state financed crony capitalism or another since the country began. The largest corporations are intimately tied to the state, 0Hedge is never honest about this, and instead pushes some childish idea of Darwinian brutalism. Total red herring. Remember, “Wall Street” steals, not some public employee driving a snow plow. Unions, human rights, housing – these are all evil according to these opiniated and quite hate filled screeds that pop up on Hedge.

    Finally, sober, but corrupt decisions were made to benefit industries, whether it be automotive or banking, based on the idea that if these failed there would be serious damage.

  2. Don Day Sr. says:

    Rule of law…..perpetrators of Fraud should not be allowed to profit from that fraud. If the fraud involves a mortgage, and no fault is found on the borrowers part, then the mortgage should be declared “Null”. If the note was sent one way while the mortgage was sent another then the note is, by definition, an unsecured loan. It may be collected on through court action but may not be used to take your home. But, alas, common sense approaches do not work in the court because we are now a society where the Rule of Law is the exception rather than the rule. They were “Too big to fail and we, the American People, are too small to save.”

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