President Donald Trumpenstein’s choice of John Michael “Mick” Mulvaney for his chief of staff is a horrific indicator of what lies dead ahead.
In January, Mulvaney will move to the Oval Office, leaving his current short-term position as Director of the Office of Management and Budget in which he played a key role in slashing taxes for oligarchs and blowing out the budget. Mulvaney is an undertaker. He has always chomped at the bit in his willingness to shut down government and, in fact, led that charge the last time around.
How curious indeed that this hardcore austerity vulture comes in just as the stopgap funding for the government is set to end on Dec. 21. And Trump made it clear in his latest worldwide-wrestling performance (see video below) that he wants to shut ‘er down.
The Patsy Network’s Role in Financial Busts
Carrying out a major financial bust requires patsies, in my view. The Crime Syndicate targets whales who they get to wage insane bets using fictitious capital that ends up offside. During the 2008 financial crisis, it was mortgage lender Countrywide Financial and insurance giant AIG.
To make the whales more pliable, the Boyz offer up drugs, girls/boys, bribes and threats. There’s no doubt that some of those compromised whales are being compelled, or forced, to make excessive and absurd bets that are now tanking.
In the developing bust to come, I predict the patsies will be discovered in the depleted Aunt Millie pension complex, or possibly in the captured and corrupted Japanese financial system. Switzerland’s central bank may be involved, and certainly the U.S. Fed and European Central Bank are stuffed with bad paper. Shady derivative kingpin Deutsche Bank undoubtedly ranks high.
Read “Is a Minsky Moment at Hand?“
Trump and His Crew Are Well Versed in the Parasite Guild’s Trade
Further wrecking the pension complex would fall perfectly into the Parasite Guild’s plans for Trump, Mulvaney, U.S. Secretary of Commerce Wilbur Ross, U.S. Secretary of the Treasury Steve Mnuchin and company.
Dubbed the “King of Bankruptcy,” Ross is a corporate raider — a real-life Gordon Gecko — who built his $3 billion fortune by taking over struggling companies, then wiping out jobs, wages, benefits, union contracts and pensions of hundreds of thousands of workers. Using these methods, he’s known for “flipping” entire industries.
For 24 years, Ross worked at the New York office of Rothschild, Inc., where he ran the bankruptcy-restructuring unit. In more recent years, he’s been employing Parasite Guild methods in Europe.
Listen to Ross describe the debt crisis in Puerto Rico and other states. Notice that he says, “Puerto Rico schemed its way into heavy debt.” Nowhere does he suggest this was enabled and facilitated by Wall Street and Wall Street infestations within government. It is “just Puerto Rico.” Ross then mischaracterizes the role of vulture funds. Here is a who’s who list of the culprits. He then goes on to concisely describe his new job in D.C. and standard bankster Washington Consensus “reforms” (aka looting).
Trump’s choice of Mnuchin to lead the U.S. Treasury Department is another epic fail and revealing choice.
In 2002, Mnuchin left his 17-year post at vampire squid Goldman Sachs to head a credit fund set up by globalist billionaire George Soros. In 2004, Mnuchin and two former Goldman tribe members founded the hedge fund Dune Capital Management LP with financial backing from Soros.
In 2008, IndyMac Bank in Pasadena, Calif., collapsed in one of the largest bank failures in U.S. history. Mnuchin led a group of investors — including funds run by Soros and other hedge-fund and private-equity titans — who bought it from the government for the fire-sale price of about $1.5 billion. What they bought, essentially, was a basket of home mortgage loans.
Then, illustrating in spades how the Parasite Guild operates, the Federal Deposit Insurance Corporation (FDIC) guaranteed it would cover any portion of any losses on those home mortgages. In other words, taxpayers covered their bet. Indeed, it was a lucrative arrangement for Mnuchin and his partners. Nonetheless, Dune became notorious for its aggressive (and possibly illegal) robo-signing operations to expedite home foreclosures.
During this period of time and just before slipping into the role as the head of the U.S. Treasury Department, Mnuchin also sat on the board of directors of nationwide retailer Sears. The head of Sear’s board, guildist Eddie Lampert, is a longtime buddy of Mnuchin’s and college roommate at Yale. Mnuchin’s role on the board was to run PR and cheerlead Lampert as he sought to slash company assets and burn employee pension obligations.
Fault or Slip Line for a Financial Earthquake
One enormous fictitious capital instrument that is currently being built up is junkie leveraged loans. These typically have zero covenant protection. This scheme accounts for about $1.75 trillion, or 8.5%, of U.S. GDP. It seems that after staying levitated for far too long, a “memo” came down to pull the plug. During the last four weeks, loan funds holding such Ponzi caca have seen strong outflows and prices have already started their crash.
These are frequently spread trades using borrowed money. So whenever the Fed raises rates again, the carrying costs for these trades increase. The next rate announcement is scheduled for Dec. 19. And what if the government shuts down on Dec. 21?
The credit agencies (controlled by the Crime Syndicate) have long warned about U.S. credit downgrades relative to government shutdowns. One thing is certain: the U.S.’ AAA credit rating is highly fraudulent. These fault-line slippages can then be further amplified by margin calls on carried financing. When the tide finally goes out, you’ll see firms you’ve never heard of before suddenly exposing their tens of billions of caca.
Pensions to be Targeted by ‘Larry the Liquidator’ (aka Parasite Guildists)
There’s now a $1.8-trillion deficit in state and municipal pension obligations alone. This is a conservative estimate and doesn’t include costly add-on benefits, such as lifetime subsidies for Cadillac health care plans. Such added benefits — which sometimes cost more than the pensions — are obligations under contract “negotiated” by government employee unions without a taxpayer representative at the “bargaining” table.
The $1.8 trillion is an amount based on the enormously inflated stock and bond market bubble that’s currently in place. Once that bubble bursts, pension deficits will be many multiples higher. Additionally, National Association of State Budget Officers data indicates state revenues are starting to decline as funding needs — related to massively underfunded pensions, rising education costs, etc. — continue to skyrocket.
From this perfect storm emerges Trump and his merry band of “Larry the Liquidator” types, corporate raiders and cronies who will deal with national bankruptcy via massive austerity, disassembly, looting and privatization a la Soviet Union circa 1991-1998. If you don’t understand what the Soviet Union’s dismantling was all about, then you have no interpretative framework whatsoever to grasp what’s in play now.
For more advanced critical thinkers who are willing to drill down on the topic, see the following documentary below, “Russia: The Rise and Fall of the Oligarchs.” The (((oligarchs))) were referred to as “The Clan.”
Parasite Guild slashing, burning and looting is the reason Trump was chosen to run for office by these very same Kosher oligarchs. Surprise, surprise.
It should be obvious that Trump — or his successor when Trump is removed — is going to eliminate the artificial, cheap-debt-fueled, three-legged stool that was used to prop up the economy during the Obama administration. This will be blamed on Fed mucky muck Jerome Powell. A cold-turkey austerity liquidation will be put into operation. These pensions and benefit packages will be nullified, and it will be done from the federal down to the local level.
For those still suffering under the illusion that this is a red or blue partisan issue, observe Chicago mayor Rham Emanuel. This former head of the Democrat National Committee and dual Israeli citizen has a new program for how its done. Recall that Emanuel was director of Freddie Mac during that Ponzi scandal. This week, he announced his latest batch of new debt: pension obligation bonds. This is when the city borrows from investors to fund its pension obligations, putting both taxpayers and investors directly on the hook. These pension obligation bonds are then slipped into the pension fund itself.
Then we will get Round 2 of what the Neofeudal Parasite Guild New World Order will look like. Marijuana is legalized and taxed and gaming is expanded and taxed. Why not start a special porno enterprise zone and taxable red light district while we are at it?
Of course, Chicago could privatize its parking meters — but wait, Rahm already did that. Absolute lizard licking scheming.
Chicago’s ill-fated 75-year lease of the city’s 36,000 parking meters for $1 billion to a Morgan Stanley-led private consortium is Exhibit A for bad public contracting. After the ink was dry, the city’s inspector general concluded that the city sold the meters $1 billion dollars under their value. Parking rates skyrocketed, and the terms of the lease protecting Morgan Stanley’s investment created new annual costs for the city.
Emanuel the operative wrote the book on how this works. He famously said: “You never want a serious crisis to go to waste. And what I mean by that is an opportunity to do things you think you could not do before.”
It might also be timely for a reread of my article “Madoff Ponzi Sleuth Harry Markopolos Uncovers New Fraud.” In February 2016, forensic accountant Markopolos revealed he’s been working on uncovering three multibillion-dollar schemes, including one that will be bigger than Bernie Madoff’s.
Markopolos didn’t name names, but he stated that he’s giving the proper authorities the evidence with which to conduct investigations. But, par for the course, three years have passed and nothing is forthcoming from his new warnings. Last year, he named a new case, one pointing to the unfunded status of the MBTA (Boston Transit Authority).
My podcast on how the Parasite Guild system is gearing up is here.
Also, an update on the Bitcoin scam, which I discussed on Dec. 11, 2017, in the article “Latest from the Parabolic World of Bitcoin.” During the last 11 months, 82% of value has disappeared.