Mortgage Meltdown: Truth and Consequences

It is time for truth and unfortunately consequences. The numbers are staggering. More than $46 trillion in commerce has been impacted by the astonishing scope of this fraud. The rippling effects are washing over unsuspecting people, towns, states and countries like a tsunami and it just keeps getting bigger. 

The lies are now compounded by manipulations of economic indicators, the stock market indexes, and the completely unfounded assurances from the Federal Reserve. The truth is something we don’t want to hear and never thought we would hear. The U.S. is in decline and the dollar is no longer king. 

Don’t take your cue from the stock market. It is being artificially buoyed by people who are creating demand through placing purchase orders on money they have and money being lent to them. The big banks and brokerage houses are not just being bailed out, they are being sold out to foreign interests because they can no longer be trusted with world commerce. 

The Fed’s proposal for better regulation in the future without addressing the past abuses is impotent. It is an admission that the lies and deception and cheating and manipulation was rampant at every step and and every layer of the mortgage process. “currency” was created and fake fees were paid on fake loans on real property with fake values. Good for victims who want to keep their homes by defending and suing the players because they were victimized — but no good for the future of the economy.

It is true that the horrific decline of the dollar while it continues is going to hit with another tsunami of inflation the likes of which nobody alive has seen in this country. And it is true that in absolute dollars, the stock market might go up and not down. But on a net value using Foreign exchange and REAL inflation guides, the DJIA stock market index and P/E ratios should be adjusted to a present value of less than 7,000. Inflation will give way to accelerating inflation, accelerating inflation will give way to high inflation. And high inflation will give way to hyper-inflation (more than 100% per year). 

That’s right you think the market is high but it isn’t. It is giving you a false sense of security and the government and big business are very busy behind the scenes trying to save what they can in terms of confidence and solvency. In times past it was appropriate and successful to restore confidence in the U.S. economy, the financial markets and the U.S. financial institutions. However, nothing is going to take away the stink of this fiasco in the end. Collapse and chaos are inevitable. Then comes the rebuilding. 

Right now, there is nobody left to buy what we are selling. Either they can’t afford it or they don’t want it.

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