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The Next Round of the Crisis Will Reveal that the Entire System is Based on Fraud
The biggest problem with the financial markets today is the fraud.
Fraud is endemic in the financial system today. We know that the currency, stock, bond, and even commodity markets have ALL been manipulated by Investment Banks or Central Banks.
No matter how sophisticated your analysis is, if your data inputs are garbage, your forecasts are garbage. We now know that the prices in just about every asset under the sun are garbage. Good luck computing with that.
Then there is balance sheet fraud. After the 2008 Crash, the regulators suspended accounting standards that required the banks to price their assets at market-based values. The reason the regulators did this was because the market priced these assets at pennies on the Dollar, if not ZERO.
This meant that most banks were insolvent and bankrupt.
Today, most banks are valuing assets on their balance sheets using mark to model accounting standards. Since the “models” used to price these assets are developed by the banks themselves with NO oversight, “mark to Model” is effectively a phrase term for “make believe.”
Beyond simple price manipulation and balance sheet fraud, we also know that earnings, or the money that companies allegedly make after costs, are fraudulent.
Indeed, a study performed by Duke University found that roughly 20% of publicly traded firms manipulate their earnings to make them appear better than they really are. The folks who were surveyed for this study about this practice were the actual CFOs at the firms themselves.
The reality is that this practice is far more endemic than the 20% discovered in this study (it’s likely over 50%). Given that most C-level compensation packages are based on stock options, the value of which is determined by stock prices… which respond to earnings beats, CFOs have tens of millions of Dollars worth of personal wealth on the line when it comes to massaging earnings.
So… the prices of assets are fraudulent, the value of balance sheets is fraudulent, and earnings are fraudulent. This means that stock market caps, balance sheets, and income statements are all inaccurate representations of reality.
Sitting atop this mountain of fraud is the Federal Reserve…. the US Central Bank that owes its very existence to fraud (if Americans understood how the Fed was created and who controls it, it would have ceased to exist decades ago).
This is the same organization that claims inflation is too low, that the Wall Street bailouts were about helping Main Street, that the US is in recovery, that it will not monetize the US debt, that it has an exit strategy for its $4+ trillion balance sheet, that it is an independent entity etc.
At this point, finding a data point or claim in the financial industry that isn’t massaged or an outright lie is like finding a needle in a haystack. The entire system is rotted structure built on a foundation of lies, manipulations, and deceits.
Until the garbage is cleared out we are set for another crisis. The only difference is that this time around, when stuff hits the fan, the entire system will break, not just a handful of banks.
If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.
You can pick up a FREE copy at:
http://www.phoenixcapitalmarketing.com/roundtwo.html
Best Regards
Phoenix Capital Research
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Fraud....what fraud?
http://www.forbes.com/sites/robertwood/2014/12/10/obama-justice-departme...
So the Fed doesn't work.. nor accountants ...nor Risk Managers ..Regulators ...the Law ...Compliance Officers ..and the Govt
Let's conclude Crones are Crap
Talk about BS - in this BS piece, Phoenix Capital tells us that the whole system and every part of it is fradulent, then tells us we can get a "Survival Guide" from them to PROTECT YOUR PORTFOLIO and even profit from the situation.
Talk about a logical disconnect!!! Does ANYONE at PC know how to actually THINK??? Does anyone there realize that the two things in their article (absolute and all inclusive fraud and a valid "portfolio") are mutually and diametrically OPPOSED in the real world? Guess not.
I'm really surprised they didn't end the piece, with "Gold? Gold? Anyone want to buy some paper gold? Only two pennies the ounce. Get your paper gold here..."
What? The entire system is built on GREED, duh!! Yes, okay and ignorant fools too! Just offer the lemmings near-guaranteed riches with little or no risk, and this is what you get. Total suspense of any critical thinking. Now, add in a dumbed down society, most of whom don’t know or care about anything more than their I-Phones newest features, and you can sell them snake oil. You can also sell them cars they can’t afford, and houses and boats, and most anything else, including overpriced stocks. Economic psychology and propaganda, ala Edward Bernays, spewing forth into weak susceptible minds. “Nothing down, low payment, why wait, carpe diem!” The oligarchs have to pump the stock market too. Jawboning, then more intervention. If the markets tumble to their true values, all hell breaks loose. As for the banksters hiding trillions in loan losses on the Fed books, what other choice did they have? As they saw it, to not do this would have collapsed the five largest banks and the FDIC wouldn’t have been able to cover 10% of the losses. This is still true today, so the sham has to go on. Massive government deficits can never end either, no way. Tell the weak-minded we are in debt to ourselves, so it doesn’t really matter.
Again, try explaining any of this to a typical American standing on line at Wal-Mart with groceries and a HDTV in their shopping cart and EBT card in their hand. The oligarchs are laughing all the way to the bank.
"As for the banksters hiding trillions in loan losses on the Fed books, what other choice did they have? As they saw it, to not do this would have collapsed the five largest banks and the FDIC wouldn’t have been able to cover 10% of the losses."
So what? You can't have it both ways. If you're going to excoriate the masses for being stupid (and I agree with you 100% that they are), you can't then turn around and give the banksters a pass for being too weak and corrupt to do the right thing when the shit's about to hit the fan. If they're tough and clever enough to rip off the unwashed masses, then they should be tough and clever enough to deal with the fallout from THEIR actions. But of course, they're not. They're just whiny bitches, like everyone else...
The Wizard behind the curtain needs his fingers broken, handcuffs around his wrist's and finally a noose around his neck.
we are only in the First leg of a Secular Bull market in Equities.
Time to impeach all 535 cretins +ICiC for fraud & treason ..
BTW - nice intelligent CIA move there Feinstein ... clown
I think you could take a contrarian angle on the title of this and say that..
"the entire market is based on truth"
That's why we see the valuations where they are.
There is an assumption that the reported Balance Sheet is a reflection of truth.
There is an assumption that income and expenses are a reflection of truth.
There is also an assmption that people who work in corporate America from the exec suite down are interested in "creating shareholder value"....isn't that what they teach us in school?
The whole system is based on truth...when a system is based on fraud...example (Mexico) no one trusts it and it doesn't move because no one trusts anyone else. But here...there is still trust, until the day comes...where there isn't.
Sadly, the balance sheets of most world governments and many large corporations are like the former Enron's--nothing on the left is left, and nothing on the right is right. But, the lion's share of the world goes on blissfully (and, sometimes, willingly) ignorant, in the vain hope that the "magic" will keep working.
Too bad the Congressional reelection rate for incumbents this year 96%. Forward, Comrades!
Didn't Karl Marx have revealed the fraud in the system already in the midst of the nineteenth century.
Are we allowed to make a fortune out of our neighbor's nervous system to pay attention, refusing then to bring their not so well doing in line with the better doing by fortune.
Propagating the fraud that this difference had to do with a better supply of nature's endorsement.
All economic data based on the fraud committed on the moral code are thus upliftet with no further charges into propaganda, long before the thrill of fraud could not pass unnoticed by the attention of financial analysts.
Fraud is the base of the patriarchical enterprise. It's not the question, fraud or not, just how much we are able to handle or have to digest in a charge.
No Karl Marx just hated anybody with money
His plan was to take it off them ...for himself
It's a simple plan.. Commies and socialists call it moral ...we call it theft
I'm going to use mark to model accounting standards in my OWN household budget!
My actual income is under 75,000, but I've decided it would be much more advantageous to "model" my projected income on that of Jamie Dimon, who is, let's face it, a much better risk than me. So why not use his income?
You know, maybe this whole fiat currency economy isn't so bad after all. Maybe I've been hasty in my condemnation....
I'll let you know what I decided after I get my banks answer to a, umm, question I asked them...
Last quarter America's GDP came in at a strong 3.5% but the fact that a 10% jump in federal spending, mostly on Pentagon hardware bolstered growth and was very much behind the numbers. That is proof enough that the Government is propping things up!
This "pre-election" spending was the biggest increase in federal spending since 2009 when the Obama administration put in place a huge economic stimulus package. When you mix in an upbeat November number concerning job creation, falling oil prices and ever higher stock market prices and new record highs and many people have the impression we are on a roll.
The American and world economy is in uncharted water and weird crosscurrents are clouding our economic future. The truth is if this market is as over extended and distorted as many people think a crash may occur at any time. The article below delves into some of the many crosscurrents at work that could bring the economy to an abrupt halt.
http://brucewilds.blogspot.com/2014/12/crosscurrents-cloud-future-economic.html
what if the sheep eat sheep meat?
They get the prions disease scabbies.
Lewis Carroll could not have dreamed up a weirder reality than our financial world.
The Fed counterfeits currency (casino chips) for rigged games run by insiders with computers, while the players think they can get rich by winning chips, and the public purse covers the casino for any losses. The worker bees are expected to toil away to produce the wealth that the system consumes.
If the rest of the World wakes up to reality and stops trading real assets for fiat currency, the casino will go out of business, and the piles of chips will be revealed as worth as much as leaves off a tree.
The entire financial system is indeed nothing more than a fraud, alchemy, sorcery, a magic spell. This was foretold 2,000 years ago:
"By your [Babylon the Great; Global Financial System] magic spell all the nations were led astray." Revelation 18:23
Guillotines were made for banksters, and their pol, crat and func puppets.
An American, not US subject.
Seems like a race really, whether we get them to the guillotines first or they get us to the FEMA camps first.
Bank sues me for foreclosure as I would not pay anymore on a debt they could not validate. They used forged, fraudulent documents as exhibits. I counter sue. Now, three years later they want to dismiss! I said not until the forgery, fraud issue is heard. Paying my taxes and insurance. Bank fraud? Continuing criminal enterprise! Fraud is their mantra.
Yap, Why do you think all the DEAD bankers keep showing up.
one bank to rule them all, one bank to find them, one bank to bring them all and in the darkness bind them
Candygram for Capt. Obvious! Candygram!
Well, no shit?
Funny thats what I said.
I hate to say this...my pet rock is now up for sale.
Even among actual producers the products being produced are for the most part useless junk. A real smart friend of mine called it the pet rock theory of economics. Its a box witha rock in it $6.
$6
I know someone who bought this. He is, sadly, one of the most enlightened people I know, even though he prefers ignorance. His GF told him to get it so he did. It fit since he has the full CAH collection to date. I made fun of him for not buying more. He could have made a killing.
We are already dead but our bodies just don't realize it yet.
Don't be fooled by the name of the product!!!
There are people out there buying "Weather Rocks", and then others are investing in "Sex Rocks".
DO NOT BUY THE SEX ROCK!!! ONLY true, original, WEATHER ROCKS HAVE ANY FUNCTIONAL USE!
captain obvious
Keep doubling down on your pessimism, someday you'll be right. Someday.
Maybe you can get "He was an optimist" engraved on your tombstone...
You only have to be right when the big one hits! You can make shit loads of money, but if its ripped away you are in the same boat as the guy who never had anything. Those of us who have had the misfortune of losing a lot of money fast will tell you we never saw it coming or that it got far worse than we envisioned in even our worse case scenario.
Sure they talk about diversifying but often even this recipe is not guaranteed to protect you. Way back in 2008 when the meltdown was just starting I found myself on a cruise ship in Greece where one of my fellow passengers who had embarked on this strategy was withering in pain. We are often lulled into complacency and told how markets are regulated and precautions have been put in place to protest us but let me make it crystal clear, once it is gone it is to late. More on this subject in the article below.
http://brucewilds.blogspot.com/2014/03/losing-it-all-with-no-hope-of-recovery.html
“The biggest problem with the financial markets is the fraud… “mark to Model” is effectively a phrase term for “make believe.””
You are so gentle.
The most basic factor of all is the currency unit. If it should fail, at least 95% of economic activity will cease. And, since the dollar is the world’s reserve currency, it will most likely fail on a global scale.
Dollars (both banknotes and bank reserves) come into economic existence IN EXCHANGE for US Treasuries (directly or indirectly). Government debt is the means by which an existing generation of tax consumers imposes taxes on following generations of tax payers: it is a form of financial cannibalization. The problem here is that there is enough federal debt on the books to financially cannibalize our children and grand children to the end of time. Don’t take my word for it; this conclusion is based on data, assumptions and formulas provided by Financial Reports of the US Government.
It is practically and constitutionally impossible to collect taxes made necessary by debt incurred by previous generations (going back some 150 years).
But that won’t stop them from trying; and they know native tax takers won’t be ruthless enough to make any more than a timid attempt to collect such taxes.
That’s why the Department of Justice, Congress and a few other agencies aided the Red Chinese to cobble together the ALLIANCE among Mexican and Columbian drug cartels, Chinese Triads, Red Army, Chinese Communist Party along with a few other world-class criminal gangs. It’s also why the DoJ (among other agencies) aided the Chinese (after they took possession of the Panama Canal) to smuggle into the US 150 top-level crime bosses into the US. Gee, where did I get this info? You’ll find it in testimony given before a congressional subcommittee (follow the link).
Now, before they could use members of this ALLIANCE as tax collectors and slave masters on American soil, they had to create an instrument modeled on French Committees of Terror (1792-4), the Judeo-Bolshevik Cheka, and the Nazi Shchutzstaffel. Americans know this instrument as the Department of Homeland Security.
There’s got to be a better alternative; and there is: above links lead to pages that explain the only historically-proven method by which men have been made accountable for what they have done; the same method employed by American Founders, despite their mistakes.
Don’t forget to let your lawyers and accountants verify my work.
Stack silver and gold and FORGETABOUTIT
“Forget about it”?
You overlook a very significant fact of history.
You also have to focus your attention on how to protect yourself when government-protected fictions evaporate – when everything falls apart. That’s when the proscription begins: a time when dissidents are openly eliminated along with many thousands, or millions, of useless eaters.
What happens during such a proscription? During the French slaughter (1792-4), Judeo-Bolshevik money-lenders withheld food from the market; they blamed shopkeepers, peasants (farmers) and hoarders for such shortages, seized their supplies and paraded them before a Revolutionary Tribunal before carting them off to the guillotine.
During the Russian mass slaughter, they did the same thing, only with a wider net: hooligans, speculators (those with property worth 10,000 roubles or more), anti-socialists, obstructionists, and saboteurs were added to their lists. Their property was seized, they were paraded before a Revolutionary Tribunal before receiving the shot in the nape of the neck.
You think it’s not likely here? Then, why is the Department of Homeland Security modeled after the French committees of terror, the Judeo-Bolshevik Cheka and the Nazi Schutzstaffel?
What does the DHS plan to do with 2-3 billion rounds of ammo… an amount sufficient to wage an Iraqi War, at its highest rate, for 25 years?
Neglect these lessons of real history at your peril.
What happens during such a proscription? During the French slaughter (1792-4), Judeo-Bolshevik money-lenders withheld food from the market; they blamed shopkeepers, peasants (farmers) and hoarders for such shortages, seized their supplies and paraded them before a Revolutionary Tribunal before carting them off to the guillotine.
During the Russian mass slaughter, they did the same thing, only with a wider net: hooligans, speculators (those with property worth 10,000 roubles or more), anti-socialists, obstructionists, and saboteurs were added to their lists. Their property was seized, they were paraded before a Revolutionary Tribunal before receiving the shot in the nape of the neck.
Were these populations armed back then?
With so much ammo the only thing that springs to mind ->>> PISS POOR SHOTS.
If everything is fraud then what should we invest in? Gold, guns or gumption?
If everything is fraud then what should we invest in? Gold, guns or gumption?
Yes.
Invest locally, stack phyzz, deal in cash whenever possible and don't report it, for fuck's sake get your money away from Wall Street, encourage those you care about to do the same. It's our only hope to starve the Washington/Wall Street beast.
The fraud is Fractionally Reserved Banking and its Credit Creation, which people use and accept as a currency, independant of the legal tender fiat.
Merry Christmas and a Happy New Year. Bwa, ha, ha, ha. I've got the Market Watch Front Page printed out and hanging on my wall behind the computer monitor; that says, "Worldwide Wreckage": It's from 6 Oct. 2008; I'm waiting for the one from 2015 so I'll have a pair.
Most Amerikans don't give a flying fuck is the reality. The truth is in plain sight just not sought out.
No shit Sherlock. That's why you'd all better except it and hope they can continue the ponzi, becasue it won't end well, if it ends. So keep the party going.
As long as it ends with Zyklon-B, we're good!
I'm sure you've seen elderly drug addicts right? Party on...
FRAUDULENT PONZI.