Excerpts from Jim Willie's latest below are more than disquieting...not that we weren't all aware of the developments. How long can the mink-robed fraudsters keep this calamity on the rails? It must be soooo easy for them to keep a lid on the JPMs, a non entity effort for THEM.

Thoreau, Rico & Mortgage Fraud

Submitted by Jim Willie on Wed, 6 Oct 2010

http://www.financialsense.com/contributors/jim-willie/thoreau-rico-and-mortgage-fraud

The nation is plunging slowly into the Third World. Systemic failure has advanced in a grand tragic pathogenesis. The escalating gold price is urgent response.

GOLD & SILVER BREAKOUT

The increasingly visible vote of no confidence in the fast failing USGovt financial structure, and in the missing capital formation apparatus that was once Wall Street, and in the entire avalanche of paper in a valuation charade, is the GOLD & SILVER PRICE. Both metals are breaking out to the upside. They are registering votes of NO CONFIDENCE. They are putting investments in portfolios to hedge against MONETARY SYSTEM BREAKDOWN. They are insurance policies for private wealth, to protect from erosion of money through sponsored sanctioned monetary inflation. The problem with the current strategy of monetizing debt and inflating debt to a reduced level, is that it betrays creditors. It forces a debt writedown on creditor investments in USTreasurys and US$-based securities. It invites retaliation in trade war, whose financial expression is COMPETING CURRENCY WAR.

The financial friction is reaching a higher level each month. On Tuesday, the Bank of Japan announced a cut to 0% interest rate, this being done a full 20 years after their financial crisis stuck them with the dead-end 0% interest rate. The advantage of a trade surplus helped Japan for two decades. That surplus has disappeared, handed over to their Asian rival China. The two nations are in hot disputes in the last month. The ramping Competing Currency War is better described as a race to the bottom, in which only GOLD & SILVER win. Anyone wondering why an inert metal would prevail over investment in a financial structure is simply obtuse and of dull mind. Gold represents money in a land where money has been systematically ruined. Money today is nothing more than debt in disguise, and legal tender is nothing but denominated debt. The system is on the verge of failure, complete with failure of state, due to the cancerous nature of its faulty money. The high priest apologists have run out of lunatic justifications for their sequence of failed theories. Gold & Silver are refuges.

My forecasts in the past have been for a $1300 gold price, now achieved. My forecasts in the past have been for a $21.50 silver price, now achieved. The two precious metal markets are in a clearly recognized bull market breakout. The big banks are on the defensive, covering shorts, almost their entire positions being underwater. They will strive to shove their portfolios into some USGovt closet, like Fannie Mae or AIG or a hidden USDept Treasury offshore firm. The drivel and deceptive commentary has become humorous, about gold being in a bubble. Be amused by the desperate displays of propaganda and denial of the sinking ship, upon whose dismantled helm such analysts stand to glorify themselves.

• The gold market represents a hedge against the USTreasury bubble.
• The gold market represents a hedge against the breakdown of the monetary system.
• The gold market represents a hedge against coordinated wreckage of the currencies by the central banks, resulting in uniformly lower purchase power of money.
• The gold market represents a hedge against a ripple effect from a global spread of sovereign debt writedowns, defaults, and their extension to the currency system.
• The gold market represents a hedge against the insolvent banks.
• The gold market represents a hedge against an extended banking system shutdown.
• The gold market represents a hedge against heightened trade war and great destruction.
• The gold market represents a hedge against the loss of wealth, plainly stated.
• The gold market represents a hedge against the US systemic failure in progress.
• The gold market represents a hedge against the inevitable USTreasury default, whatever final form it takes.
• The gold market represents a safe harbor for money, since it is true money.

Gold & Silver are investments in legitimate money. Gold & Silver are votes of NO against criminal syndicates. Gold & Silver are votes of NO against fraudulent money that permits big banks to print their profit schedules. Gold & Silver are investments in bullion whose price in no way properly reflects the obscene shortages and contract naked shorting by official chambers. Gold & Silver are investments in grossly under-priced bullion whose move toward equilibrium will bring about price advances of multiples higher, not just hefty percentages higher, like $3000 gold and $80 silver. Support of the US$ DX index at the 78 level is not holding. A further slide below 77 will invite calls for direct global USDollar intervention, and another upward thrust in the Gold price. The huge move in the Gold price over $25 and the huge move in the Silver price over $1.00 in a single day on Tuesday was triggered by the Bank of Japan, which registered commitment to the Competing Currency War. The issue is not inflation versus deflation, but rather of systemic breakdown and the revelation of tainted money, if not lost store of value. The officials cannot admit it, since that would be an admission of their failure. The Gold price will show a mid-term top only when anything is fixed. The USTreasury Bond rally is a loud signal of systemic failure. There is liquidity all around, supposed at zero cost, but it is all hemlock. It is not INFLATE OR DIE, but rather INFLATE AND DEFAULT. The stock market is the distraction steeped in irrelevance, since stocks could rally, but money is going worthless.

In case sleepy observers have not noticed, Team Obama in the economic dugout just disbanded. Nobody is left except a junior Senator posing as President, whose words are impressive but actions echo inside great voids. In his hip pocket is found a copy of "Dialectical of Materialism" without much public notice. The helm is empty. The Ship of State is adrift, a derelict vessel. Peter Orszag is gone (broken budget, spiraling deficits). Christina Romer is gone (wise mediocrity but ignored). Lawrence Summers is gone (loser preppy). Cindi Sparks is gone (stimulus plan architect). One can only hope that Tim Geithner departs too. Although not on any economist team, the exit of Rahm Emanuel should be interpreted as meaning that Obama is a political liability. Running for Chicago Mayor might raise difficult questions on his resume, best not asked, since he wears two hats. The legacy of US economic counselors in the past two or three decades has been heresy reinforced by stupidity, wrapped in rationalization, embellished by nonsensical obfuscation, touted as erudite, ignorant of history. In the current pathogenesis of systemic failure and debt default, Gold wins! The only question is how the dead will litter the battlefield.

Some significant events are in progress, extremely important developments in the grand pathogenesis that reflects the deep decay and deterioration in the US financial structure. The most recent events pertaining to mortgage loans, home foreclosures, and disclosed fraud carry great potential to open extremely wide cracks in the American social order. Revealed systemic fraud is slowly coming into the open. Civil disobedience has already entered the arena of popular protest. However, the recent events surrounding illegal home foreclosure seizure of properties elevates the exposed fraud to a very clear high new level. This is a boil ready to break open, releasing financial puss. The cases where people have been removed from their homes, even when no bank loan exists (as in owned free & clear), by means of fraudulent, forged, and counterfeited documents, has finally provoked RICO law provisions. Witness organized crime extended from Wall Street, whose roots lie most likely in Fannie Mae itself. The legal industry has finally joined the fray in class action lawsuits. Defense citing errors made have been met with accusations of fraud, quite a different game…

Recent cases threaten to encourage the Strategic Defaults and highly charged Civil Disobedience which could actually contribute in powerful ways to commercial chaos, popular disorder, public disruptions, creeping distrust, and even systemic failure…

The RICO cases underway threaten to toss an accelerant on that fire. Henry David Thoreau would certainly be observing closely, perhaps smiling, at the current developments of citizen action against corrupt bank practices, mortgage bond fraud, and forgery of securities as well as critical legal documents….

Objective reporting of the news, such as the viral news of the fraudulent home foreclosures, seems to have escaped the mainstream news, a consistent theme that hints of syndicate sympathy or culpability…

Recall that $1500 billion went missing from 1988 to 2000 in two HUD regional offices. One was Houston and the other was Oklahoma City, the home grounds for sitting presidents. The missing funds have fed black bag funds and diverse illicit financial operations…

The mushroom has a primary point of vulnerability that has received very little attention. The Mortgage Electronic Registration Systems (MERS) was originally an innovative process that simplified the way mortgage ownership and servicing rights were originated, sold, and tracked. MERS is a property title database, intended by Wall Street and Fannie Mae to serve as a repository that kept order when mortgage bonds were traded fast and furious. In recent court cases in at least three states, the MERS database failed to attain legal standing in mortgage foreclosure challenges….MERS is the financial system's Achilles Heel. Maybe a big bank like Bank of America might collapse, fall into ruin, and dissolve from proof of racketeering, its assets confiscated by aggrieved parties to fraud.

The United States is on the verge of events leading to potential systemic failure. Few attribute causality to the Fascist Business Model broad implementation and secretive endorsement, but it lies at the center…

RICO is the thick cloud. Fannie Mae (FNM) is the grand sewage pit laced with fraud. The news is rarely reported unless they must since it is already widely known. The mainstream news finds itself competing desperately with the competent intrepid internet sources. In a strange attempt to force an equation from a disorderly situation, let it be simply stated that MERS + RICO + FNM = CHAOS + FAILURE + DEFAULT…

By next year, national parks and lands will be sold off to creditors. The deep fraud is easy to prove. Identification of the participants is much more difficult. The movement of prosecution and perhaps restitution will begin with private homeowners, the vassals in the lost field of dreams. A crucial connection on legal obligation is the formal USGovt guarantee of USAgency Mortgage Bonds, which make them full blood brothers to USTreasury Bonds. They just pay a different yield, although we are witnessing a convergence between mortgage rates and USTreasury yields…

…the organized crime that is central to the US financial system. Its three loci of activity are the USFed, Goldman Sachs, and JPMorgan. This is just the financial wing of the syndicate. Apart from that is the war wing, with a common conduit in the USFed….

Full blossom of the business model, identified by a merger of the state with large corporate interests, took on new meaning after September 2001, when national security trumped everything, including the US Constitution, and certainly civil liberties. What came was license to commit financial crimes with impunity, provided the locus of criminal…

The most egregious violations involve Goldman Sachs and JPMorgan, the agents for the USFed and USDept Treasury. Past actions featured gold leasing from Fort Knox (now empty), for the benefit of Wall Street gold short positions and corresponding USTreasury Bond long leveraged positions. ..

The quintessential core of the Fascist Business Model is not the merger, but the conquest of the USDept Treasury by Goldman Sachs. New Treasury Secretaries must come from the marbled halls of Goldman Sachs with full pedigree in order to perpetuate entrenched ongoing activities…

The MERS database and countless home foreclosures are at the center of legal investigations. Even a sitting US Senator has called for investigation of JPMorgan, Bank of America, and GMAC, regardless of their size, prominence, influence, or prestige….

At great risk is the breakdown of faith and trust in the USDollar and USTreasury Bond internationally, from a climax collapse of the Fascist Business Model itself. The deep hidden costs of the Fascist Business Model are diverse inefficiency, layered cost to the privileged corporatocracy, crushed middle class, interrupted capital formation, lost income engines, and the social effect of a recognized two-tier justice system…

Capitalism has failed in the United States of America, simply put. Its capitalist spirit was crushed by unsound money managed by a squatting central bank, raids upon the national gold treasury, abandonment of industry, wretched economic theories, labor union backlash, the high cost of military pursuit, price inflation (in particular labor) from war expenditures, and banking policy that encouraged a series of asset bubbles