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A Financial House of Cards Held Together By Lies and 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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When the shit hits the fan, all the kings horses and all the kings men won't be able to put Humpty Dumpty back together again.
“We know that the currency, stock, bond, and even commodity markets have ALL been manipulated by Investment Banks or Central Banks.”
So, is it not time to “manipulate” in response… of sorts?
Isn’t it time to make them accountable for what they have done?
It is possible to do this; but the problem is that there is hardly an American who knows how to do so. Lawyers don’t know, or won’t tell you; professors, the same; judges, news editors… even financial advisers don’t know… or won’t tell you.
None will tell you that we have the same powers that American Founders had; that English rebels (of 1620-50) had; that the people of Athens (the year minus 509) had. All of them authored the most remarkable eras recorded of human history. They were the only men who advanced the cause of liberty; some were the only men who brought down judges and tax takers, priests and kings who thot they could impose taxes, or debt, without the consent of those so taxed, or indebted. We, potentially, have an advantage over them all; we have the opportunity to learn from their achievements, and mistakes.
But it won’t happen among men who are medicated into a state of lethargy, or indoctrinated to docility. The first is corrected by a health regimen that REDUCES – now slows – one’s biological age (50 years in my case; my validation consists of physical performance, the best proof possible: video and webpage – each leads to the other); the second is corrected by replacing that mental sewage called indoctrination with real facts of history and law of redress – not the pabulum that now passes for either.
Its going to be interesting when this bubble pops...usually the mess fom the last crash has been somewhat cleaned up by the time the next one hits, but not this time...I have a neighbor's beautiful foreclosed house that has been vacant since 2009 to constantly remind me of this. Keep you powder dry and your peckers hard Zero Hedgers.
We've been living in make believe since 9/11. Lies, damned lies, and fraud as far as the eye can see. Better not try to expose truth as a whistleblower, either. This admin has a REAL problem with whistleblowers:
http://www.washingtonsblog.com/2012/04/obama-has-prosecuted-more-whistle...
WINNING!!!
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That was the best article from Phoenix Capital republished on Zero Hedge that I have read so far! Particularly these facts:
"Sitting atop this mountain of fraud
is the Federal Reserve …
the US Central Bank that
owes its very existence to fraud ...
The entire system is rotted structure built on a
foundation of lies, manipulations, and deceits.
... this time around, when stuff hits the fan,
the entire system will break ..."
Agreed. That magic money thing is pretty impressive.
Graham will be the bubble pricker.
The fraud is nothing new. Fractional reserve banking and debt based money are rooted in fraud.
An excellent overview for anyone who is interested.
http://debtcrash.blogspot.com/
And all of the corporate and cb fraud is backed by corrupt and morally and financially bankrupt governments. Now I feel better.
Libor, FX, HSBC all overlooked by the agencies charged with policing them.
The FIX is in (no pun intended).
Funny Lynch may pay for HSBC yet Holder aided and abetted Rich and got a promotion.
That they are allowed to pay fines while admitting no criminal action is a crime in itself.
You forgot about blackmail,bribery,extortion and murder. Voting fruad and corruption. Other than that spot on!
This shit can't/won't go on forever. The sooner it busts the better. Unfort we may have to deal with coverups. Like WW3.