The financial news thesae days is a lot of history being repeated. European countries are going the way of the nations in Africa and South America, before them. The objective of Commerce is always conquest. The driving force behind commerce is the fatal flaw in human nature that brings people ro depend on government to rob their neighbors, for their material gain. We now live in a world of organized looting.
With all of the global financial instability in the news, this week, everyone would just like to sit back and take a deep breath. The one fact that we must all understand is that it is imperative that we get independent of fiat currencies. I hear people say all the time, “It’s all we’ve got”. If we are so enslaved by the corporate oligarchy that we can’t see outside the blinders of our education and cultural indoctrination, then we are slaves. The trap that Baron Rothschild and his sons built, is very well sprung. The currency is the lock on the prison we are confined in. Is there an escape?
Purpose Driven Defects: Hidden Players
Purpose Driven Defects
This is an interesting scenario. I wish this were the only variation on this theme. Then, someone could tell me that the world isn’t as crooked as I say it is. The heart of man is deceitfully wicked, above all things. Played out many times in the last 30 years, any legal conflicts never exposed all of the parties involved, in the same litigation. One hand is literally clueless to the existence of the other. Documentary separation precludes both hands being caught in the cookie jar, at the same time.
At the top of this food chain is a bank trustee to sign off on everything. Next, there is at least one loan officer, to make the paperwork look good. Rounding out this cabal is a real estate broker, an insurance broker and 4 to 6 investors. Just to illustrate the financial clout in one of these arrangements, if the buy-in to the group is $50,000, that’s a total of as much as $450,000 in seed money. Once the consortium is rooted and established, it could be collecting 2% interest on as much as $6 million in mortgages. Let’s take a look at the possibilities.
Scenario #1 A mortgage applicant walks into the bank and sits down with the loan officer. He doesn’t have the required 20 % down payment. Yes, I know that a lot of creative financing has gone under the bridge since those days, but that is exactly the practices under discussion here. The loan officer looks over the application. He sees the negative against approval by the bank and says, “No problem! “We” can get you financed.” The applicant is sent to the real estate broker. An agreement is written, containing 2% more interest that the holding/funding company can get on a mortgage. One important point must be made, here. In many instances, the funding source is not presenting itself or acting as a lending institution. It isn’t until there is a legal conflict that people discover that they only thought they had a “mortgage” with the “bank”. In reality, the funding company jumped the applicant on the sale, then made agreementon a private sale by owner, with private terms. The fuinding company bought the property, and the applicant helped make the down payment. Technically, the applicant doesn’t own the property until the terms are satisfied. There is a closing, but it isn’t as the applicant believes. He’s in the property , under license.
As an example, if the sale price is 150,000, the applicant gets a much more expensive deal than the den of thieves. He has 20,000 down and a financed amount of $130,000. The cabal $30,000 down, a financed amount of $120,000 and an interest rate 2% lower than the applicant. Over time, the payoff amounts widen and it’s a winner for the funding company. In some cases, the money people had lines of credit equal to their investment. Effectively, they risked nothing. I’m sure you’re aware of all of the self help real estate books and videos about using “Other Peoples’ Money”. This is one opf those brilliant ideas.
Scenario #2 In this scenario, the fun is just beginning. After 5 years, either the funding source or the original applicant finds a buyer for the property at $200,000.
There are enough carrots dangling here, to make everyone happy. The applicant is offered his equity and appreciation, plus a $20,000 “commission”, if the funding company writes the new agreement. There’s nothing like bringing unwitting and unaware in to do their bidding. However the chips fall, the funding company makes a lot of money, especially if the original applicant “buys” another property, through them. In a rising market, it has proven to be easy to do, with no disruptions to risk exposure in litigation.
Scenario #3 This one is everyone’s nightmare. A declining market, growing numbers of defaults, and uncertainty about the future begin to wear on the money machine. The negative cash flow runs back up the pipeline in a shockwave. Capital sources dry up. Banks fail. Holding a lot of inventory that isn’t producing income puts a business, out of business.That should explain ehy the only word thast people want to hear is “recovery”. When the wheels fall off of the currency everyone loses except the Federal Reserve. The system acquired the assets for the printing costs.
All of the details in these scenarios don’t exactly fit any single individual or institution. The pattern however, is much deeper and ingrained in the United States. If people learn how things work, it’s because the Federal Reserve taught them. Once people learn how to create “money” out of thin air by terms of sale and the wiggle room in fractional banking, unwary people are ripe for the plucking. No one runs the Bait-and-Switch better than the Federal Reserve. They built the cracks that are the reason the “owner” of a property can be officially listed as “occupant”. In the illusion of the Federal Reserve world, no one owns anything and everything is under central Fascist management. As strange and dangerous as this Brave New World is, people still want to be good, loyal little Corporatists. When their turn comes to take one for the team, the newest version of Der Feuhrer will say nice things about them after they’ve gone conquering for the Homeland. They went too far too back out. Now, they just hope for the best, and legally support the worst.
“People stand silent in the presence of corruption, to fall back in the small comfort of passionate defense of virtue they should have displayed, before the fact.”
Debt vs. Security
The functional parameters of the concepts Debt and Security are black-and-white opposites. The contrast is so sharp that the use of the word “Securities” in investment circles is a fraudulent misrepresentation for the purpose of commercial promotion. There is nothing secure about paper. Ask Bernie Madoff’s investors. Read the rest of this entry »
Legality and Humanity part company when the demands of a dead thing, a corporation, are given priority over life. At the heart of the matter is the love of money and the lust for power.
This article will describe, in general terms, the history of each section title. For further study and investigation, better books have been written, compiled and edited by people with far more expertise, experience, research and professional background than myself. If anyone is encouraged to further study, this article will have served it’s purpose.
These days, we have so many influences bringing out glaring contrasts between Bureaucracy and Humanity. The hot spot today is the Federal Budget debate. This is nothing new. We’ve been watching people threaten each other with poverty since forever. It is during these bouts of confusing numbers and inflammatory ultimatums that we are reminded that turning on floodlights in a crowded bar, at midnight, can expose a lot of surprises.
It is in the contrasts, brought out it all their naked glory, that we see the behavior that causes us to cringe at admitting that we are associated with any of this mockery of all things American. Yet, we need this. We need to understand that Bureaucracy is anti-human. It is cannibalistic. Even in it’s most commercial context, it is impossible to find any compassion or grace for the behavior of Bureaucracy. Something happens to people when they gain auspicious titles and put on a suit and tie. In reality, they are no less human. They just act as predatory animals.
There is one thing that we can be sure of. Those who gain by this unreasonable facsimile of a reality show called government will not be found in line when the inevitable next step down in the currency collapse is taken. None will admit complicity in the Ponzi scheme that is the Federal Reserve. There won’t be a deal good enough to persuade the world to buy U. S. Treasury debt. The situation will become institutional looting and piracy.
This is the point when the masks come off and the wolves devour the sheep. The turmoil and protest in other countries will be seen in the United States. Bureaucracy believes that it is a law unto itself. The human common sense response would be to admit that there is a higher court than any institution of Man. But then, Bureaucracy ate of the forbidden fruit and bought into the original lie, long ago. No, the men of renown have not become gods, and their pride is going before destruction.
Where is it?
My Tag Universe
- Five Questions with David Dayen About Foreclosure Fraud, Activism, and Hope September 25, 2016Five Questions with David Dayen About Foreclosure Fraud, Activism, and Hope David Dayen (dday to old-timers at Daily Kos) has been the most single most dogged journalist digging into the massive fraud perpetuated on American homeowners in the last decade, the fraud that almost brought down the global economy. In fact, he wrote the book on it—Chain of … Read […]4closureFraud