-- Posted Friday, 26 March 2010 | | Source: GoldSeek.com
By R. D. Bradshaw
The Washingtonexaminer.com had a major story in early February by David Freddoso on “Barofsky's warning: We're all on welfare now.” This report was based on the testimony of Inspector General Neil Barofsky before Congress in late January 2010.
Per Freddoso, Barofsky oversees the Troubled Asset Relief Program (TARP). His report to Congress seemingly focused on the incompetence of Treasury Secretary Tim Geithner and said “According to Federal Reserve net borrowings data, the federal government and the organizations it backs now guarantee or issue almost all net new borrowings for mortgages and MBS.” Thus, the federal government has nationalized the housing industry. Almost every new mortgage today is a government mortgage.
Freddoso added that “Over the last two years, government mortgage and mortgage-backed holdings have grown on net by nearly $1 trillion. Private investors and institutions have shed more than $1.5 trillion -- through foreclosure losses, pay downs, and by selling to government. The effective result is a government-run housing market.” Despite this government backing, home sales continued to decline in early 2010 (and there was further bad news on Mar 23, 2010 from the IG that the government sponsored Home Affordable Modification Program is also failing to modify existing mortgages and prevent foreclosures). So the real estate market is still in bad shape.
As the Freddoso story outlines, not even the savings and loan scandal of the early 1990s put all current and potential homeowners at Uncle Sam's mercy as today's situation has. If not for government underwriters (such as Federal Housing Administration and the Department of Veterans Affairs) and bundlers of mortgage-backed securities (such as Fannie, Freddie, and Ginnie Mae), there might not have been a single house sold in this country last year. Or at least, none would have sold at anything like the allegedly depressed prices that homeowners were getting (or rather, at prices the big banks are now getting on foreclosed properties).
Barofsky's report says that “Supporting home prices is an explicit policy goal of the government.” In other words, the government is completely propping up the home real estate market. The Freddoso conclusion is that the government's assistance in the housing market now is less about giving us a soft landing than it is about having us furiously flap our arms to stay aloft.
Therefore, we're all on a form of government welfare now -- not just helped out by a few homeowner tax breaks, as in the past, but completely, utterly dependent on a trillion-dollar government commitment lasting forever. Freddoso adds that we're all in peril if for any reason we lose a handout that most of us never asked for.
The Cabal Imposed Depression Intensifies
An ancient writing at Understanding Money and War XIV (at www.analysis-news.com) outlines Cabal plans to create an inflationary society and then periodically to change the mode to one of deflation in order to bring on a serious deflationary recession or depression. Of course, the Cabal goal for juggling the economies of nations, under Rothschild Cabal control, is to make profits for the Rothschild Cabal banks and insiders and move the world more to world government.
Therefore, the Cabal imposed depression on-going across the globe intensifies as more and more people are out of work and more and more real estate loans are in foreclosure/default. Yet, big money is coming out of Washington and the Fed in New York to the big Rothschild Cabal banks. And as Barofsky has it, some of the taxpayer’s monies are trickling down to the people on the street in the case of home mortgages. Without this federal support, it appears that home real estate values would completely collapse (but the question here is who is the government trying to help—the people or the big banks?).
Since the Cabal has started this current depression precisely to collapse real estate prices and to deflate the economy, one must wonder why the Cabal is allowing the government bureaucrats to dispense any of this real estate money to the people now instead of trying to funnel it all directly to the big banks. Well, I submit that the answer to that question allows that there are features in this US program which do greatly benefit the Cabal. First, there is the obvious benefit that this federal mortgage money provides to the economy whereby many of the repossessed homes now held by banks can be sold to new customers with federal funding or federal loan guarantees.
Therefore, this program does benefit the banks which are foreclosing and holding volumes of repossessed properties which the banks would like to unload if possible and recover something on from the defaulted properties. So this present program is benefiting the big Cabal banks though it is not benefiting them directly as the TARP and Stimulus payments have otherwise done.
There is a second benefit. The Rothschild Cabal owned Obama people are manifest socialists. They love passing out money and benefits to the public. After all, it helps give them something to brag about when election time rolls around. Thus, as Freddoso explains, it places more and more of the nation’s people on government welfare. Yes, the socialistic welfare state is getting a big bonus with this new federal focus on financing mortgages.
And finally, it moves the nation more and more into government control, regulation and funding for all purposes and especially more towards world government. The people are losing their rights, independence and individualism. The people are moving more and more into being government controlled zombies and robots (as George Orwell predicted in “1984”). Tragically, this motion has been in place at least since WWII. Today, it is accelerating to unbelievable heights.
But in so doing, in this new socialistic approach, the United States is developing into a nation of the haves versus the have-nots. The problem is that there is a select group of people, either US government workers or close Cabal relatives and insiders, who are on big payrolls and big bonus plans to reap multiplied millions in compensation annually. These people are the haves.
Many of these haves are in the millionaire or billionaire state. And while the have-nots are going down the tubes in the present depression, the haves have been cleaning up, so to speak. A Mar 21, 2010 article from rense.com by Andre Damon on World Billionaires Grew 50% Richer in 2009 tells the tale.
Damon’s story addressed the recent Forbes report on the world’s billionaires and said that in 2009 alone their ranks swelled from 793 to 1,011; and they grew 50% richer when their combined wealth went up by $1.2 trillion to $3.6 trillion. On average, each of the over 1,000 billionaires saw his or her wealth goes up by $500 million in 2009. While millions of people were losing their jobs and entering the poverty level to subsist on welfare (food stamps, unemployment, social security, etc), the billionaires were doing quite well.
Some 403 of the billionaires reside in the US where they make up some 0.00014% of the US population; yet they reportedly control 8% of the national US wealth. They each have some 300 million more times wealth than the average US resident. Some 21 of them are hedge fund managers who made up for any losses they may have incurred in 2008. Some like John Paulson and George Soros raked in vast profits in both the 2008 decline as well as the so-called recovery in 2009.
The story said that “hedge fund managers and financiers on the list benefitted directly from the bank bailout, which transferred huge sums of public funds into the accounts of the largest financial companies.” Thus, many of the billionaires were the indirect recipients of the government's wealth transfer program to the big banks and financial institutions. Damon quoted the Wall Street Journal, commenting on the figures, which said, “How did the world's rich get so much richer? Stock markets. In short, what the stock market had taketh, the stock market hath giveth back-at least to the billionaires.”
Damon added that the stock market recovery itself was no accident; it was the direct outcome of policies pursued by both US political parties. He wrote “The bailout has been financed by a policy of fiscal austerity and high unemployment. The rapid increase in the wealth of the billionaires is the result of the impoverishment of tens of millions; it is the other face of mass unemployment, poverty, utility shutoffs, and foreclosures. Aside from direct government handouts to the banks and super-rich, the major driver of the recovery of corporate profits-and thus the stock market-was productivity growth and corporate downsizing.”
I would just add that being an insider, with links to the Working Group on Financial Stability (the Plunge Protection Team), also helped the billionaires greatly as they cleaned up from the taxpayer suckers footing the bill. Too, it must be said that the new Federal government financing of mortgages will help these fat cats far more than the average poverty stricken person. Not only will the super rich be able to get federally backed loans but we can be sure that they own many of the banks and finance companies which will now be able to unload much of their bad-debt, loan portfolio through the new Federal backing for real estate mortgages.
Yet, There are the Many Have Nots
And conversely, there are the have-nots (the everybody else), many or most of whom are now on welfare of some sort. The sad thing about this situation is that the have-nots category of people is growing rapidly and the dangers of internal anarchy and revolution are intensifying by leaps and bounds almost daily (thanks to the Rothschild imposed depression). The whole system right now is being kept afloat by the welfare state in the form of food stamps, unemployment benefits, huge mortgage subsidies, and other payoffs.
We could add social security and medicare; but these schemes were mostly sold to us on the premise of making us pay additional taxes for these benefits. Now, they have taken our social security and medicare taxes and pooled them under general government revenues. So we don’t really have the guaranteed social security and medicare benefits we thought we were paying for all those years (don’t worry, the government has a new solution here with the new health care system just approved). Now, those payments to us are at the whelm of government and are merely more social welfare payments to we the people.
Thus, the have-nots people are being pacified by various welfare programs to keep them from revolting. But how long can the state dole out welfare payments to the have-nots to keep them from revolting and creating national anarchy? For sure, this shouldn’t last long in view of the Cabal’s tight efforts to contract credit and money currently to intensify the depression.
Well, of course, Cabal plans are not just to make profits. Though profits are an important part of the Cabal’s imposed depression, there are other issues involved as well (like the establishment of world government). Hence, the money manipulators are taking actions to lead to world government. In that context, they want more and more government laws and controls over the people. In effect, they want things to happen to lead to martial law and a dictatorship; thereby giving the Cabal more control and ultimately world government. Of course, this is what the Cabal has in store for us--martial law, a dictatorship and world government.
The Bottom Line
Here, the issue must devolve to the question of a nation’s people trying to save some assets in the form of gold, silver, foreign currencies, etc and the whole future of the fiat US dollar which seems ready to collapse into nothing from the mountains of inflation and debt piled up over the years.
As many of us know, a number of analysts have been predicting a bank holiday. And this could come one day soon, unexpectedly (perhaps on a weekend). My feeling is that it will happen and with it the state will confiscate gold, silver, foreign currencies and anything and everything else of value. That’s why some people are making moves with regularity to get what few assets they now have out of the country before the banking holiday confiscates everything of value.
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Besides the revelations contained in the Goldsmiths’ articles, the work of the plutocratic financial market manipulators to conspiratorially manipulate and control the financial markets (to make more profits and install a world government under their management) is also addressed at length in the periodic analysis of the news and in other articles produced at www.analysis-news.com. This website has an article of interest to any person interested in understanding the market Manipulators. It is the Hidden Secret of the Manipulators, why they succeed and how to follow their manipulations.
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-- Posted Friday, 26 March 2010 | Digg This Article
| Source: GoldSeek.com
