Intelligent people know the world is incredibly destabilized, right?
Intelligent people understand that the world and especially US financial markets are a fraud predicated upon a delusion, right?
Intelligent people understand just how large a portion of the US sovereign debt is based on the mortgages that courts are foreclosing on, right?
And we do remember what happened when China stopped purchasing unsecured US treasuries and converted their collateral to secured obligations in the form of Fannie/Freddie backed warrants, right?
CHINA STOPPED LENDING MONEY TO THE USA UNLESS THOSE LOANS WERE BACKED BY SECURITIES, SECURITIES OTHERWISE KNOWN AS THE MORTGAGES ON HOMES ALL ACROSS AMERICAN
This of course must be considered in the foreclosure purge of 2014, where courts are busing turning properties over as quickly as they can to….who?
But then, beyond this the much bigger picture, the things I’ve been writing about for years:
Despite a final report from the federal government’s Financial Crisis Inquiry Commission that blamed the crash on such economic factors as high-risk mortgage lending practices and poor federal regulation and supervision, Freeman noted that evidence suggesting that “outside forces” likely played a role, a factor the commission did not examine.
Former Treasury Secretary Hank Paulson described the scenario Freeman investigated for the Pentagon in quotes published Monday in the BBC.
“I’m not going to name the senior person, but I was meeting with someone … this person told me that the Chinese had received a message from the Russians which was, ‘Hey let’s join together and sell Fannie and Freddie securities on the market,’ Paulson told the BBC. “The Chinese weren’t going to do that but again, it just drove home to me how vulnerable I felt until we had put Fannie and Freddie into conservatorship [the rescue plan for them, that was eventually put in place].”
