Leading Economic Writer: Financial Meltdown A "Gigantic
Fraud"

http://www.infowars.net/articles/march2008/170308Fraud.htm

Steve Watson
Infowars.net
Monday, March 17, 2008

A leading economic journalist has
described the current financial
crisis as
a "gigantic fraud", the
fallout of a deliberate and preconceived
profit
agenda to enslave the middle classes in
a debt bubble.

The economics editor of the London
Guardian, Larry Elliott, has hit
out at
the global financial elite in a
refreshing piece that marks a rare
shift
away from the establishment hackery we
are used to from the
corporate media.

In an article titled America was conned - who will pay?
Elliot writes:

Indeed, it is somewhat surprising that
there is not already rioting
in the
streets, given the gigantic fraud
perpetrated by the financial elite
at the
expense of ordinary Americans.

Business, of course, needs consumers to
carry on spending in order
to make
money, so a way had to be found to
persuade households to do their
patriotic
duty. The method chosen was simple. Whip
up a colossal housing bubble,
convince consumers that it makes sense
to borrow money against the
rising
value of their homes to supplement their
meagre real wage growth and
watch
the profits roll in.

As they did - for a while. Now it's
payback time and the mood could
get very
ugly. Americans, to put it bluntly, have
been conned. They have been
duped
by a bunch of serpent-tongued hucksters
who packed up the wagon and
made it
across the county line before a lynch
mob could be formed.

Elliot also states that the debate is
now not about whether the US
faces a
recession, but is about how deep it will
be and how long it will last,
comparing the downturn to the South Sea
Bubble crisis in 1720, and
declaring
that the "Ponzi securitisation scam
has been exposed."

A Ponzi scheme, named after Charles
Ponzi, is one that offers
abnormally
high short-term returns in order to
entice new investors. The high
returns
that a Ponzi scheme advertises and pays
require an ever-increasing
flow of
money from investors in order to keep
the scheme going, meaning it is
inevitable that it will eventually
collapse.

Elliot, like former chief economist of
the World Bank turned
whistleblower,
Joseph Stiglitz, points a finger of
blame squarely at former Fed
chairman
Alan Greenspan, stating:

"In the longer term, lessons must
be learnt from the turmoil. One is
that
you don't solve the problems of a
collapsing bubble by blowing up
another,
which is what Alan Greenspan did after
the dotcom fiasco in 2001 -
the most
irresponsible behaviour of any central
banker in living memory."

Last week we highlighted the fact that
Greenspan, instead of trying
to act
to reverse the damage he has done to the
US
economy, is actively
encouraging
its further demise by urging foreign
states to abandon their dollar
peg.

Another cogent point Larry Elliot makes
is the following:

"If this is, heaven help us, The
Big One, one of the only
consolations will
be that the repugnance at the orgy of
speculation that has sapped the
strength of the US economy will put a new New Deal
on the political
agenda."

It should be added that, given that this
crisis has been engineered
by a
financial elite Ponzi scheme, we should
be extremely wary of any
"new deal"
that is brokered by the financial and
political elite posing as our
saviors.

There are already talks of a "new
world order" emerging from the
fallout of
the current economic meltdown. A
consolidation among the big financial
institutions does not spell good news
for ordinary Americans and
people
across the world who have been
effectively herded into this current
crisis
by the financial elite.

We, along with others such as Stiglitz,
have repeatedly warned of the
quickening of an agenda of economic
catastrophe allied to the
"solution" of
predatory globalism.

Nevertheless, while CNN and other
mainstream outlets continue to
parade
economic "experts" who
ludicrously suggest that the destruction of the
dollar and the economic downturn is
"not necessarily a bad thing" for
America, it is a refreshing change to
read a mainstream report that
actually
hints at the reality of the situation
the US and the rest of the
world now
faces at the hands of the elite.

And from http://www.solari.com

Former Bush insider/whistleblower, Catherine Austin Fitts,
has a salient analysis of the situation

Money & Markets

Source: New York Pension Fund /
Click the image to view previous blog post on this issue.

Debt
Reckoning: U.S. Receives a Margin Call [Must subscribe to view full article]
By Liz Rappaport Justin Lahart - Wall Street Journal (15 Mar 2008)

Gross, SEC
Fail to Break Auction-Rate Bond Paralysis
By Jeremy R. Cooke - Bloomberg.com (14 Mar 2008)

Goldman Sachs
to Reveal $3bn Hit
By Mark Kleinman & Louis Armistead - London
Telegraph (16 Mar 2008)

The Man and
the Monkeys: A Wall Street Fable
By Chief Cynic - iTulip.com (15 Mar 2008)

Religious
Investors Call for Boycott of GM Sugar
By Chris Jones - NutraIngredients-usa.com (5 Mar 2008)

Fed Creates Another Loan Fund For
Investment Banks, Cuts Rate
By Jeannine Aversa - Associated Press (16 Mar 2008)

Bear Turns Out To Be Worth Just A
Fraction Of Its Office Building
By Andrew Ross Sorkin & Landon Thomas - New York Times (16 Mar 2008)

MZM Growing
at Annualized Rate of 30.9%

MZM is an acronym for "Money Zero Maturity" ~ A
measure of the liquid money supply within an economy. MZM represents all money
in time deposits, plus all money market funds. From investopedia.com.

Repurchase Agreements and Covert
Nationalization of Banks
By Steve Randy Waldman - interfluidity.com (8 Mar 2008)

Housing Group
Challenges Fed’s Bear Stearns Deal
By Joanne Morrison - Reuters (16 Mar 2008)

Venezuela Reported Moving Some Oil
Contracts to Euros
From Agence France-Press (15 Mar 2008)

President Convenes Plunge Protection
Team on Monday
By James Vicini & Tim Ahmann - Reuters (15 Mar 2008)

In The US, Big Brother Monitors Your
Every Financial Transaction
By Thomas Frank - USA
Today (12 Mar 2008)

Hall of Fame
- Billionaires
At Newsmeat.com (Updated every Monday)

Bear Stearns
Exposed as a Bank Saddled With Toxic Sub-Prime Debt
By Ambrose Evans-Pritchard - London
Telegraph (16 Mar 2008)

JPMorgan
Closes In On Buying Bear Stearns
Editing By Tim Dobbyn - Yahoo Finance (16 Mar 2008)

Morgan Races to Acquire Bear Before
Asian Markets Open
By Dennis K. Berman, et al - Wall Street Journal (16 Mar 2008)

Paulson Defends Bear Bailout, Evades
Issue of More Bailouts
By Jeannine Aversa - Associated Press (16 Mar 2008)

~ Updates on the Eliot Spitzer Story

Fannie
Mae Reaches Agreement With new York Attorney General, OFHEO, Regarding Home
Appraisals; Investigation Terminated
News Release - Fannie Mae (3 Mar 2008)

Pat Foye, New
York Development Chief, Resigns
By Eliot Brown - The New York Observer (17 Mar 2008)
—~ View previous blog posts on this issue: (1) (2)

Welcome to the Sanity Check
"Your authoritative source on stock market manipulation & Wall
Street corruption."