- It is not easy to engineer the bankrupting of the American
middle class and the U.S. government.
-
- Alan Greenspan and the Federal Reserve banks and their
members can push all they want, but a destructive housing bubble could
not have happened without the federal housing infrastructure at the Department
of Housing and Urban Development (HUD) dismantling or ignoring countless
laws, financial controls, and administrative rules created to prevent disasters,
particularly disasters of this magnitude.
-
- Creating a housing bubble and bust that is this harmful
required reorganization of FHA and Ginnie Mae. It required new rules and
changes in the oversight of the mortgage markets, including of Freddie
Mac and Fannie Mae. It required cooking the accounting systems, budgets,
and books, even refusing to produce financial statements for HUD and FHA
as required by law. It also required pushing hundreds of responsible people
out of way. It meant manipulating the press and throwing money around in
the right places. It was a big, big job. Someone had to do it.
-
- Thanks to a handful of courageous people and reporters,
you can understand why it took 232 years for America to accumulate almost
$10 trillion in national debt but only one new bill bailing out Freddie
Mac and Fannie Mae to clean up more housing bubble mess to add another
$5 trillion overnight.
-
- Among this group of courageous and capable people is
investigative reporter Wayne Barrett at the Village Voice. Here is his
latest contribution:
-
- <http://www.villagevoice.com/content/printVersion/541234?ref=patrick.net>How
Andrew Cuomo Gave Birth to the Housing Crisis at Freddie and Fannie Mae
-
- For links to more pieces on Cuomo's role, see <http://www.dunwalke.com/sidebars/andrew_cuomo.htm>Unanswered
Questions about Andrew Cuomo
-
- <http://www.solari.com/archive/housing_bill/>To
Top
-
-
- Part VIII The Two Great Financial Mysteries of
Our Time: Missing Money and Collateral Fraud
-
- There are two great financial mysteries in America:
-
- Where is all the missing money and how do we get it back?
- How big is the missing collateral black hole and how
will it be resolved?
-
- These two mysteries are essentially part of one mystery
at the heart of the matter: Who is in charge of-and what are-the real financial
flows and assets of the central banking/warfare complex that increasingly
governs the resources on our planet?
-
- Since all financial frauds-the <http://www.gata.org/>manipulation
of the precious metals markets, the engineering of the mortgage and housing
bubble, ongoing <http://en.wikipedia.org/wiki/Naked_short_selling>naked
short selling, Enron, and the pump and dump of the Internet and telecom
stocks-come back to the same cast of characters, our ability to protect
our families and assets necessitates an integrated understanding of "the
real deal"-who is really in charge and how the economy is really managed.
Hence, it is useful to have a basic understanding of the missing money
and missing collateral mysteries.
-
- Let's start with the first mystery, the <http://www.solari.com/archive/missing_money/>missing
money.
-
- In fiscal 1999, the Department of Housing and Urban Development
(HUD), under the leadership of Secretary <http://www.solari.com/blog/?p=1392>Andrew
Cuomo, reported $17 billion missing from its opening balance and $59 billion
of undocumentable adjustments to close its books and refused to produce
audited financial statements as required by law. In fiscal 2000, HUD refused
to disclose the amount of its undocumentable transactions.To get a sense
of the magnitude of even the reported discrepancies, this means that the
amount of undocumentable transactions occurring at HUD in 1999 was $1.13
billion a week, $227 million each work day and $28 million an hour.
-
- The contractors that ran HUD's auditing and payment systems
also were large contractors at the Department of Defense (DOD), which reported
$2.3 trillion of undocumentable transactions in fiscal 1999 and $1.1 trillion
in fiscal 2000. DOD declined to report the number for fiscal 2001, and
in all years susequent to the requirement to do so, declined to produce
audited financial statements as required by law, ensuring that the U.S.
Treasury could also not do so.
-
- Indeed, the federal consolidated financial statements
during this period were delivered with the following admissions by each
secretary of the Treasury:
-
- Robert E. Rubin, 1997, Unauditable
- "We believe that the publication of these audited
statements is an important step in providing American citizens with more
information about the operations of their government."
- Robert E. Rubin, 1998, Unauditable
- "We believe that the publication of this financial
report is an important step in providing the American public with useful
information about their government's assets, liabilities and operations."
- Lawrence H. Summers, 1999, Unauditable
- "We are committed to producing and reporting financial
information that meets the highest standards of integrity and to provide
to the American people the accountability and professionalism they expect
from their government."
- Paul H. O'Neill, 2000, Unauditable
- "I am committed to producing and reporting financial
information that meets the highest standards of integrity and to provide
the American people the accountability and professionalism that they expect
from the government."
- Paul H. O'Neill, 2001, Unauditable
- "I believe that the American people deserve the
highest standards of accountability and professionalism from their government,
and I will not rest until we achieve them."
- John W. Snow, 2002, Unauditable
- "I intend to continue the commitment to producing
and reporting financial information that meets the highest standards of
integrity and to provide the American people the accountability and professionalism
that they expect from their government."
-
- From Kelly O'Meara, "<http://www.dunwalke.com/resources/documents/Events/4
Tril%20Missing/Insight-Treasury_Cks_UnbalancesSM.pdf>Treasury Checks
and Unbalances," Insight magazine, April 2004
-
- The United States Constitution stipulates that no payments
can be made that are not provided for in an appropriations bill approved
by Congress. Specifically, Article 1, Clause 7 states: "No Money shall
be drawn from the Treasury but in Consequence of Appropriations made by
Law; and a regular Statement and Account of the Receipts and Expenditures
of all public Money shall be published from time to time."
-
- It is quite significant that the government (and its
accounting and payment contractors and bank depository) engaged in an amount
of illegal transactions in fiscal 1999 that was greater than the amount
of total taxes it received in that year. It is even more significant that
there has been little public discussion of this fact. This is no small
violation of the Constitution in a country where millions go without health
care and the infrastructure is in disrepair.
-
- A handful of efforts to get to the bottom of what was
going on met with little or no cooperation. <http://www.solari.com/archive/missing_money/>Efforts
by reporters and one <http://www.youtube.com/watch?v=9RvLL--vSsA&mode=related&search=>brave
congresswoman, Cynthia McKinney, to identify the contractors responsible
for managing the accounting and payments systems missing all this money
were not successful. Investigative reporter Kelly O'Meara got David Walker,
head of the General Accountability Office (GAO), the Congressional auditor,
to commit during an interview that he would make this government contractor
information public. However, GAO never did. One Tennessee congressman on
the House Budget and Defense Appropriations Subcommittee confirmed to me
that these billions were missing, but said that he was helpless to do anything
about it. [See <http://www.scoop.co.nz/stories/HL0207/S00031.htm#c>Letter
to Congressman Van Hilleary (R-Tenn.).]
-
- Things seemed to be coming to a head on September 10,
2001, when Donald Rumsfeld conceded in a press conference that <http://www.youtube.com/watch?v=oj1rT4bszWg>DOD
was missing trillions. However, that fact was not to attract much attention
given 9-11 events the following day. Rather, the tragedy was used to justify
the loss of financial records at the Pentagon (we are apparently to presume
that the Pentagon is incapable of making or keeping backups) and the inability
of the Army to produce financial statements in 2001.
-
- Read the entire report and anlysis here:
- http://www.solari.com/archive/housing_bill/
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