My dear friends in the Liberty Community,
For some months now I’ve been ranting here about the banks, their misdeeds, their ownership of CONgress, their ability to avoid coming under the rule of law. Many of you don’t know about the burgeoning mortgage scandals. This is a fast-moving story that has resulted in the Attorneys General of all 50 states jointly launching an investigation into foreclosure fraud.
If you are thinking “I’m current on my mortgage so this doesn’t affect me”, you couldn’t possibly be more wrong.
The facts are a little complicated, but the truth is plain as day: the banks are knowingly committing fraud upon the courts nationwide. They act as if the rule of law does not apply to them, because, as you will read, it does not.
I’ve been struggling to come up with a means to bring you this story in a meaningful way. Thankfully, someone else has already written the piece, and I urge you in the strongest way I can to take the time to read it. If you have ignored or discounted everything else I’ve written, please read this. While you are reading it, I want you to remember that the value of your money is backed by the balance sheet of the Federal Reserve Bank, which is supposed to contain only U.S. Treasury Securities and the “full faith and credit of the United States Government”, but which now contains about 50% Mortgage Backed Securities. It is seven short web pages:
Here’s the Fed’s balance sheet; for an image that can be blown up and read easily, go to this zerohedge page and click on the image there:
The bright red blob are the MBS that sit on the Fed’s books right now.
This situation absolutely dwarfs the August 2007 crisis. The 2007 crisis was about a few hundred $Billion in MBS being called into question. The current situation, which has existed for many years but is only now coming to light, questions the marketable value of $Trillions (Yes, $Trillions) of American mortgages. Draw your own conclusions about what comes next.
Or, if you like, see Karl Denninger’s site. Karl already knows what comes next and he’s not bashful about it.
Props to KD for relentlessly staying on top of this.