Tuesday, March 6, 2012

Credit Default Swap Fraud Exposed/Confirmed

Please take some time to read this excellent overview of the CDS fraud/ ponzi scheme by Jeff Nielson of Bullion Bulls Canada.  Jeff describes how Wall Street has used dredit default swaps along with the crooked ratings agencies, and the MSM to drive Greek interest rates to 50 times that of the US, even though the US is more fundamentally insolvent than Greece.

One of the most poorly kept secrets in Wall Street’s empire of fraud was that credit default swaps were never anything but pretend-insurance. The credit default swap market is a $60+ trillion paper Ponzi-scheme. The Wall Street crime syndicate claiming to “back” this insurance have nothing more than a few $billion of liquidity apiece. It is a fact of arithmetic that these fraud-factories never intended to honor these contracts.

Given the magnitude of this fraud and the audacity of the perpetrators, this alone is reason enough to abolish the Wall Street fraud-factories, abolish the credit default swaps market, and (indeed) to abolish the entire derivatives market – so that the banksters cannot perpetrate a similar crime again in the future. Indeed, credit default swaps were banned in the U.S. for many decades, based upon anti-gambling statutes.
However the CDS fraud itself only scratches the surface on the monstrous evil behind this scheme. As I have written about frequently in the past, the CDS fraud is a tool which the banksters have used to perpetrate an even greater crime: the sabotage and/or destruction of most of Europe’s debt markets.
Here is how this particular Wall Street scam operates. First of all the banksters pile on massive shorting with respect to the credit default swaps of a particular European debt-market. This drives the prices of credit default swaps sky-high. Meanwhile, the banksters’ accomplices in the mainstream media then all perform their best impersonation of Chicken Little: “the sky is falling on Greece’s economy.” At this point the third partner of this illegitimate tag-team chimes in: the ratings agencies. Based on nothing more than changes in credit default swap prices and media rhetoric, the ratings agencies downgrade the debt of these Euro markets – immediately driving interest rates higher.
This significantly raises the interest payments on these debtor economies, instantly making those economies less solvent. This is then followed by another shorting operation in the credit default swap market, more media rhetoric, and more bogus “downgrades”. And thus the perfect vicious-circle of crime is established. Through the fraudulent manipulation of Europe’s debt markets, Wall Street’s economic terrorists have been able to drive Greek interest rates as much as 50 times higher than U.S. interest rates, despite the fact that the U.S. economy is more fundamentally insolvent than that of Greece.
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