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Bush, Sec of Treasury Paulson save America's subprime home borrowers...you
Just Call Hotline to Mortgage Heaven: 1-888-995-HOPE
(Dec 07, 2007)
Oh-oh. A recent rise in Auto-Loan Delinquencies
spurs President Bush and Treasury Sec Paulson to plan for new government
bail-out of subprime car buyers. Just call Hotline to Classic Car
Heaven: 1-888-995-VROOM-VROOM to keep your re-possessed Porsche, Corvette,
Students, bankrupt? For a
govt bail-out, please call Hotline to College Loan Heaven:
Don't want to pay any of your
contractual debts or bets? For a free govt bail-out, just call Hotline
to Screw Everybody Heaven: 1-888-995-IOU-NOTHING-SO-JUST-BITE-IT.
Washington, DC – Whoa, fo-fo-two choo-choo, humble servants of America.
Frick and Frack -- Prez Bush and his faithful side-kick Secretary Tonto
Paulson at the U.S. Empty Treasury, showed up on national TV yesterday and gave
all Americans the secret phone number to Bush's Hotline to Mortgage Heaven: Ya-yesss, girl friends, it's 1-888-995-HOPE.
Or is that 1-888-995-DOPE? For some of you who waited too long, it's
In one fell swoop,
Prez Bush and Treasury Secretary Paulson are trying to wipe out:
1. The entire philosophical
basis for free market economics, and
2. The basis for objective
contract law in America.
For those of you
who still think we are living in a free market, that a Federal Reserve Note
obtains value by virtue of being printed by Big Brother, and that President
Bush's and Treasury Secretary Paulson's objective yesterday was to bail out
the 1.2 million subprime slime borrowers, welcome to Alice in Wonderland.
Make that Karl in Marxist Land.
The real purpose
for Bush and Paulson's actions was to (1) camouflage the fact that the U.S.
is now entering what will evolve into a huge, huge recession, the
likes of which most Americans have never experienced, and (2) to point
Americans away from the real culprits who caused the recession, the central
bankers, and toward the Wall Street investment bankers' manufactured victims, the subprime borrowers.
Yahoo, smoke and mirrors.
crumbs around the govt's lips that reveal the truth include:
1. Why such drastic
action? What's really going on? If 93% of Americans are paying
their mortgages on time, what's the big problem with 7% defaulting on their
loans? That would be peanuts in the economy but that is not what the govt is concerned about. It's not the subprime mortgages per se
they're worried about but rather the trillions and trillions of new,
highly-leveraged -- as in "loaned on margin" and can't be paid back --
Federal Reserve Notes that our central bank provided to their member banks
to "BUNDLE" with the subprime mortgage loans so the member bankers, through their
subsidiary "off the books" investment corporations, could sell them as SIVs
(Structured Investment Vehicles) to anybody and everybody here and abroad (which includes, ironically, state govt pension funds such as the Florida
Investment Pool whose members, teachers and others, may well be subprime
borrowers themselves AS WELL AS 401k investors for their retirement).
Investors in the Florida Investment Pool withdrew another $1.2 billion
yesterday after previously pulling over $17 billion from the $27 billion
Fund since Sep 2007. Withdrawals were frozen for 1 week to stop the
first run on the fund and those who withdrew were penalized if they withdrew over a
certain amount of their money. This is just the tip of the iceberg
and the point is that it is not the subprime
mortgage money that Prez Bush and Treasury Secretary Paulson are worried
about. It's the trillions and trillions of hyperinflated money that
was "BUNDLED" with it, which nobody can trace or value, and can't be paid
2. There is no way for the
holders of the "BUNDLED" subprime mortgage loans, bundled with trillions and
trillions of new highly-leveraged Federal Reserve Notes, to provide a "mark
to market" -- a market valuation -- for the SIVs they are holding. What's
worse is that the holders of the SIVs do not know which mortgages or
fractions of mortgages they are holding and thus cannot service anybody's
subprime mortgage loans. And even if they could, a district court in Detroit
already ruled that Deutsche Bank cannot foreclose on a handful of subprime
borrowers who have defaulted because, the court ruled, Deutsche Bank's SIVs
are not direct mortgages but rather investment
vehicles, a format which does not allow the bank to call in the loan.
This ruling is just one of the many future contract and legal problems that
Bush and Paulson don't want you to know about because it was their buddies
at the Fed, the member bankers, who created the concept of "BUNDLING"
subprimes with new hyperinflated Federal Reserve Notes which they obtained
from the Fed Reserve on big time margin, as in 3200% leverage.
The recession is
already here and it was
not caused by the subprime mortgage borrowers. The recession was caused by
the Federal Reserve and their easy money policies and the bankers and their
investment houses who used the mortgage industry to inject trillions and
trillions of non-backed paper into their pockets by "BUNDLING," or hiding it
between the mortgages as they sold the mortgages to all the unsuspecting
In short, the cause
of the current recession was: going off the gold standard and allowing
fractional reserve banking with fiat paper money. (Note: 99% of
all our economic ills can be directly traced to: going off the gold
standard and allowing a fractional reserve banking system. A 100%
gold-backed monetary standard does not create (1) deficit financing (2)
Congressional earmarks (3) redistributive welfare states (4) subprime
mortgages (5) trade surpluses or deficits (6) central bank dictators
attempting to manage, thus negating the concept of, the free market (7)
nation-building wars, or (8) a stripping of every individual's inherent
rights by implementing governmental interventions into every facet of
everybody's lives to purportedly "save" the people from the government's
The solution is to
return to a 100% gold backed currency. Until the U.S. returns to a
100% gold standard, Americans will suffer many economic consequences, including loss
of most of their basic freedoms -- and the implementation of lots more hotline
phone numbers from our Tweedle-Dee Secretary of the Empty Treasury and
The worse possible
thing that those in power in the U.S. could do is pour more
non-collateralized money, more
non-backed "liquidity," into what's left of the hyperinflated
non-existent free market.
It is not more fake money we need. It is real capital and capital
goods and true free market capitalism -- not corporate special privileges -- that we require to pull out of the recession.
Fake money -- i.e.,
not backed by a hard commodity -- cannot
produce capital goods. And that is where today's Keynesian and "mixed"
economists have gone wrong. Fake paper money does not stimulate
production. Only a gold monetary standard and real capital goods coupled with time and labor
saving ideas can produce capital. But we don't live in a capitalist
society. We live in a fascist state-collectivist economy with central
bankers manipulating Funny Money, churning half a quadrillion dollars of
non-secured fake money for their own greed.
Time to return to
gold and a true free market. Otherwise, I hope you're invested in precious metals
and own an electric car. -- FM Duck
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