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since Wed, 26 Dec 2007 20:04:17.
Bob Rubin, Larry Summers, Timothy Geithner (apparently by marriage), Gary Gensler, Mary Shapiro, Peter Orszag, Ben Shalom Bernanke, Alan Greenspan, Bruce Wasserstein et al. belong to the Eastern European (or Eastern Europeanized) Jewish "New Crowd" or "Yids" that began to supplant the older German Jewish financial elite or "Our Crowd" during the Nixon administration. (Thanks to his stint at Wasserstein Perella, Rahm Emanuel was coopted into "New Crowd.")
Because the New Crowd has raised the level of Jewish financial agression several orders of magnitude beyond that which was described by Yiddish writers like Sholem Aleichem or I. J. Singer at the beginning of the twentieth century, it makes sense to use underwold analogies like a "chop shop," which strips stolen cars of valuable components for resale and then junks the rest, to explain the Summers-Geithner Plan.
When clever bankers created a mortgage-based derivative structure that made it possible for banks to carry mortgages on their books as non-mortgage assets, they broke the system of fractional reserve banking and in effect systematically stole money from the US government because the subterfuge made it practically impossible to determine whether a bank had reached its borrowing and loan-making limits.
According the Plan in its current form, the crooks get to purchase or repurchase the now toxic assets from the current owners, who could be the same as the buyers, by means of a small outlay of real cash and large non-recourse loans from the government.
Then the crooks identify real assets of value, effectively chop them out of the derivative frame, resell the valuable assets, and then default on derivative framework that surrounded those assets. Because the loans were non-recourse, the loan recipient merely transfers the once-again defaulted assets to the government in lieu of loan payment.
In effect the US government gets stuck with the derivative crud that encrusted those original assets that still have value as well as any defaulted properties that cannot be resold.
Note that the crooks, who are for the most part both the buyers and sellers, can easily profit hugely by misvaluating the toxic assets during the government-financed purchase even if the margin of the resale of a few purchased assets is not particularly large or even positive because the crooks as sellers received real cash from the non-recourse loans that the crooks as buyers received from the government.
Obviously, if the government is willing to print enough money, the government could cover the entire $64 trillion of vanished liquidity by means of this procedure while the crooks skimmed several trillion dollars more for themselves, but the dollar would lose so much value that most of the missing liquidity that vanished in the original financial meltdown would remain lost while the crooks would protect themselves from ensuing inflation by using the money injected into the financial system via loans to buy safer assets before the dollar value plumments.
In other words, the amount of money made available as non-recourse loans is irrelevant, for the Summers-Geithner Plan cannot possibly salvage the American or world financial system, which can only be revived by my 100 word strategy.
Even though Zionists have been seriously manipulating the US and world economies since the 1980s according to an ideology of ethnonational financial warfare developed by Jabotinsky and Achimeir in the 20s and 30s, the current disaster seems to be accidental.
Once the Friedmanite Neoliberal privatization-cum-looting of Eastern European and former Soviet assets was well under way, Jabotinskian Neocons and Friedmanite Neoliberals were already developing plans for the removal of Saddam Hussein with concomitant pseudo-democratization while Iraqi assets and revenue streams would be diverted to the USA before the American banking system became leveraged beyond recovery.
Because profits could be maximized if Iraqi privatization took place shortly after George W. Bush assumed office, there seems to have been a push for a confrontation with Iraq even before 9/11, which was a godsend to Jabotinskian Neoconservatives and Friedmanite Neoliberals.
Because the Iraqis proved stubborn, the "New Crowd" was prevented from looting Iraqi and instead cannibalized the US financial system to the point where Bernanke
- panicked,
- raised interest ratest with the result of pushing subprime mortgages into massive default, and
- thereby toppled the entire US and world financial systems.
