swarmusa update…..Yesterday the market crashed just as Harry Reid was saying that the Audit the Fed bill and legislation to break up the big banks was going to make it to a vote. Then we learn that the audit bill is severely watered down, to the point of making it as worthless as the bank “stress tests.” Remember those? For show only.A true audit would begin with the Primary Dealers (central banks), it would run through their surrogate companies, then up through the FED, into the Treasury, and out into the IMF, the BIS, and the foreign central banks with whom our central banks feed dollars and execute very questionable “swaps.” Even Ron Paul’s bill would not accomplish all of this, but it would shine much daylight where it is needed. Of course the banks are fighting this tooth and nail, to the point that they will gladly tear down the markets to make their point – they are in control.And make no mistake, they create ALL the money in this nation, not your government. That is the root of the problem and the market gyrations you are seeing are due to WHO controls the money!Ron Paul, as usual, got blindsided by fellow bought and paid for politicians. Listen to Congressman Paul talk about how Bernie Sanders blindsided him: http://www.youtube.com/watch?v=7II2d…layer_embeddedMake no mistake, the central bankers are the puppet-masters who are pulling the strings. This is why the strings must be cut as they would be with the provisions of Freedom’s Vision.Let’s let Bernie Sanders know that we don’t like his bull and that the people aim to vote him out of office should he fail to do the right thing and support the more toothy version of the bill!To contact Senator Sanders, please visit this link and fill out the comment form: http://sanders.senate.gov/contact/contact.cfmYou can use this verbiage or create your own:Senator Sanders,Yesterday the bankers who run our markets crashed them in an effort to get their way. We, the people, see through their control and demand that you present the audit the Fed Bill in it’s original and more meaningful state. This is critical for the United States. Should you fail to bring forward legislation with TRUE meaning, rest assured that we will do everything in our power to ensure that others are brought into power.Whereas: The Federal Reserve refuses to give a public accounting of the TRILLIONS in recent taxpayer-backed loans; andWhereas: Congress has the responsibility to force a public audit of the Federal Reserve, and the American people deserve to know how their tax dollars are being spent; andWhereas: Allowing the Fed to remain out of control and shrouded in secrecy clearly allows for abuse and the continued stealing of our tax dollars through inflation and unaccounted electronic bank “loans”; andWhereas: The Federal Reserve’s abuses lead to constant economic crises like the current housing crisis, international banking crisis and the resulting chaos; andWhereas: The Federal Reserve System forces fuel, food, housing, medical care and education costs upward, meaning that everyone who is NOT on the government dole is forced to make do with less as the value of money slowly decreases; andWhereas: History shows us that riots, violence and full-scale police states can result when people finally realize fiat money isn’t worth the paper it’s printed on and REFUSE to accept it;Therefore: I urge you to cosponsor and make every effort to seek roll call votes on the Audit the Fed Bill, S 604.Sincerely,<—— Your Signature —–>Also, please phone his office and demand that he provide legislation with teeth. The number to call is (thank you, ….., for your effort and verbiage):(202) 224-5141

http://www.zerohedge.com/article/alan-grayson-comedic-stand-special-bankrupt-red-roof-inn-chain-and-its-proud-owner-federal-r.hmm.

http://www.youtube.com/watch?v=cpXs8KQEe8M&feature=related.http://www.youtube.com/watch?v=HPLTN62a72o&feature=related.“flipping glue” d.i..

http://www.youtube.com/watch?v=w_KLSKSX2PM&feature=related.and here a song from a long time past….”This rush to bailout is a rush to massive coverup.A San Francisco letter writer today gives new meaning to a shocking revelation from a former top HUD insider (provided on this blog last night) that rush to bailout is likely covering massive mortgage fraud by bankers.Here’s the letter:I am a retired federal law enforcement officer who investigated several multimillion-dollar fraud schemes during my career. The biggest “red flag” in those schemes was the forceful statement of the fraudsters to the victims that you must sign on to this “opportunity” immediately or you will lose your chance to take advantage of the plan. I am not making this up—that is what they do.The frightening thing to me is that the White House and Bush’s minion, Treasury Secretary Paulson, must have read the same book to get their ill-advised bailout passed. It sure sounds familiar to me. What the hell is the hurry? Take time to work it out. AL DOCKUS San Francisco.The massive fraud is a sort of multi-trillion HUD House Con Game whereby the swindling bank takes one HUD house and issues several fake mortgages on it. Says HUD insider Carolyn Betts:“I believe there is a good chance that there is collateral and other fraud in these mortgage loan portfolios, i.e., loans with no properties to support them, multiple loans secured by a single property, loans used to launder money through government guarantees.“This conclusion is based in part on the numbers, which don’t make sense, and upon observation of the number of HUD-insured loans that have gone into default before a single payment was received. If the lenders are just paid for these loans what is the theoretical value in a good market for these loans, assuming they are performing (i.e., above current market value), the lenders will get a windfall and be rewarded for making fraudulent and/or predatory loans.”And the bailout as proposed will be a perfect way to hide the evidence of wrongdoing.”Reply to this commentBy Guest on 2008-09-26 12:48:18 “.http://www.roubini.com/roubini-monitor/253762/rge_conference_call_on_the_economic_and_financial_outlook__and_why_the_treasury_tarp_bailout_is_flawed.and so much more….

update… for guest,http://maxkeiser.com/2010/05/08/ote53-on-the-edge-with-ellen-brown/.frontrunning special. more direct extraction..and potential solutions.but this would involve removing the shackles fromthe sheeple. unacceptable on it’s face. or hoof..http://www.ritholtz.com/blog/2010/05/why-does-congress-hate-america/.that's the way you do it.no evidence of trading on inside information,thankfully…..fin

update… for guest,http://maxkeiser.com/2010/05/08/ote53-on-the-edge-with-ellen-brown/.frontrunning special. more direct extraction..and potential solutions.but this would involve removing the shackles fromthe sheeple. unacceptable on it’s face. or hoof..http://www.ritholtz.com/blog/2010/05/why-does-congress-hate-america/.that's the way you do it.no evidence of trading on inside information,thankfully…..fin

http://online.wsj.com/article/SB10001424052748704292004575230601932486166.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsTop.debt shifted. wall sreet journal.ie. money stolen. ie crime of thecentury.so what?

http://online.wsj.com/article/SB10001424052748704292004575230601932486166.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsTop.debt shifted. wall sreet journal.ie. money stolen. ie crime of thecentury.so what?

http://online.wsj.com/article/SB10001424052748704292004575230601932486166.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsTop.debt shifted. wall sreet journal.ie. money stolen. ie crime of thecentury.so what?

happy mother’s day

2) The only way the Eurozone can be saved is through devaluation-think 0.85 euro/dollar. That was the plan for saving the PIIGS. Unfortunately, things have gotten a bit disorderly-but TPTB will now try to calm things down. And you can be sure all Euro governments are thrilled to have a cheaper Euro.2)No debt restructuring is possible. It would unveil the widespread insolvency in the banking system. All bailouts will be paid for by borrowing, followed eventually by quantatative easing.

more to think about.http://maxkeiser.com/.http://maxkeiser.com/2010/05/08/1125-the-truth-about-markets-resonance-104-4-fm-08-may-2010/.http://fofoa.blogspot.com/.Debt and SpecializationAs it turns out, the people that contribute the greatest leaps for mankind often don’t have the wealth to realize their dreams on their own. They must engage other people with wealth, who on their own don’t possess the knowledge and ability to make great leaps for mankind. It is this “working together” that made things like electricity possible.I said earlier that the most important individual decision is between hoarding and deploying one’s wealth. Modern socialist thinkers will all tell you that hoarding is always bad for the economy. That the key to a thriving economy is the free (read: forced) deployment of all wealth back into the economy immediately once it is saved. But the problem is that removing the decision process from the savers changes the behavior of both the savers (lenders) and the debtors.Debt becomes cheap and easy to get, therefore debtors no longer need great ideas like “electricity” to get a loan. And for the savers, the choice becomes as simple as a multiple choice test for a government job. The lowest common denominator rules the collective as those with a 60 IQ face the same choices as those with a 140: low yield (supposedly safe) or high yield (more risky). What is missing is the option to hoard, without losing purchasing power, which forces lenders to look at debtor’s “proposals” more closely.The GFCDebt is the most fundamental cause of this Global Financial Crisis (GFC). More specifically, it is the modern method of usury that compels large pools of savings into the service of new debt. Savers must have a way to hoard outside of the economy for the economy to be efficient. It is the selection process of when and how to deploy one’s savings that keeps both debt in check, and the economy efficient and productive. And it is the coerced loaning of all savings, with the lenders and borrowers segregated by a “Chinese wall” of bankers interested only in fees and bonuses, that has led to the massive malinvestment and explosive debt of today.This GFC is the final stretch in the long evolution of money, spanning centuries, that led to a global monetary system in 1944, a purely symbolic fiat system in 1971, an electronic computer-assisted system in the 80′s and 90′s and today’s insurmountably complex system of derivatives. With each step adding new layers of complexity and distancing finance from reality, the savers and the debtors have now become so disconnected from each other that our human superorganism is now literally dumber than the lowest functioning human. The collective IQ is now probably well below 50, thanks in large part to the “geniuses” on Wall Street who created SPVs, SIVs, SPEs, PPPs, PPIs, PFIs, SPCs, CDOs, CDSs, ABSs, MBSs… We are truly ants in an ant farm!As Paper BurnsIn Sultans of Swap – Explaining $605 Trillion of Derivatives, Gordon Long writes “The cheaper money is, the more borrowing will occur. Everyone is happy except the unwitting lender.”This line really gets to why all these “genius” Wall Street creations are such an explosive problem today. “Everyone is happy except the unwitting lender.” The “unwitting lender” is all the savers and “super-producers” of the world. It is everyone you know who has a pension or a pension fund. It is everyone you know who has a 401K or an IRA. The “unwitting lender” is anyone and everyone who relies on the $IMFS and its network of specially trained and licensed financial advisors with official titles like RIA, CFP, CFA, CPA, ChFC, CRPC, RFC, MSFS, all of whom are practically bound by law and fiduciary duty to NOT tell you the true nature of the risk you are facing.On the other hand we have the writings of one with remarkable wisdom, relegated to pseudonymous postings on an Internet forum, warning us more than 12 years ago of things like this…Much paper value will burn before this fire is done!If you owned an oilwell in your back yard and no-one could take control of it, then oil is the best investment. But, most people use various forms of western paper to trade oil and that paper will burn in a currency fire.Metals have not shown their true worth for many years as the world has done very well. This is very good. But, all things do change! As it is our time and place to live this change, our thoughts must view the future as it must be. Who can know the minds of men and countries as paper burns?Remember, “when the currencies go to nuclear war, all paper and paper markets will burn”! Many hard assets will lose in the public mind as confusion will rule. In the thoughts of many, gold will perform!In that day, debts will burn and currencies will war, and you sir will, with honor, raise your standard of living with Gold!Your profits from such trade, will, on the last day, in the heat of fire, burn as paper does! Sir, the world is going to change, and the rules of engagement will also change. Gold will be repriced, once! It will be enough for your time of life.Sir, The history of “Hot” paper money does show it to “burn easily” from “much heat”! If you read my Thoughts in today’s replies, we see much “fuel” in dollar derivatives trading in foreign markets.During this result, all paper will burn and the world economy will start over. However, the BIS is buying gold for customer governments as they begin to lower the dollar. This action, began some months ago will bring gold up, perhaps to the middle $360 range. If the world paper markets do not destroy themselves, gold stocks may rise for a time. But, physical gold is the good hold for this time. SourceThis kind of advice is all but illegal within the $IMFS! If it’s ever even spoken, it is whispered and “off the record”. But I guess that’s why you’re here, reading “voluminous posts” by a pseudonymous blogger, eh?At the top of this section I mentioned Gordon Long. I recommend his recent articles for an in-depth yet digestible view of the head-spinning, mind-numbing world of “genius” Wall Street contributions to mankind, like SPVs, SIVs, SPEs, PPPs, PPIs, PFIs, SPCs, CDOs, CDSs, ABSs, MBSs…Exponential DebtOne of the things Gordon writes about is probably the most catastrophic aspect of this mountain of debt: the maturity wall. This is the hurdle of old debt rollover that is facing us collectively right now, where all of the world’s present saving must be compelled into the interest payments alone on the old debt. Talk about the unproductive and inefficient use of savings! What I can tell you is it ain’t gonna happen. The system cannot be saved at this point.I received an email from a reader, Lars Olsson, with a nice article he wrote about exponential growth and debt. Here is an excerpt from his piece with an exercise you can try at home to wrap your mind around what happens when savings are compelled into indiscriminate debt:If you believe that 2+2=4, then you should believe the following. Compound interest at 2% is a miniscule interest charge measured by today’s standards. Compounding the interest charged on a single unit of money can be written as follows: money-amount * 1.02 * 1.02 * 1.02 …. (adding another term for each year) …. and on and on. That is, if you can place your faith in mathematics and calculations and really “believe” that the calculator will return a correct result when you punch the buttons. We reckon our current time since the long ago birth of a civilization some 2000 years ago. History tells us they had money then. A functioning economy of sorts. Mediterranean trade. Payments for goods. Money of gold and silver. If any man would have placed only a fraction of his purse at interest, his descendants would be wealthy beyond imagination, and the world have been hollowed out.Let me show you. Open the calculator function under Windows. If you run Apple you are smart enough to figure out a substitute on your own. You’ll find the calculator under Accessories. Set the “View” to Scientific. Got that! If not, that’s ok too, but you probably shouldn’t be reading this. On the keypad, punch in 1.02, then hit the “x^y” button, then on the keypad punch in 2000, then hit “=”. The display now shows you a large number. This is the multiplier for some amount placed at 2% interest for 2000 years compounded annually. On the keypad hit the “*”, then punch in 0.01, then hit “=”. Now the display shows you what one cent ($0.01) would have turned into. To make this a little easier to view, hit the “/” key, the on the keypad punch in “1″,”Exp”,”12″,”=” to get the answer in trillions of dollars. Yes. The calculator really does say that $0.01 placed at 2% interest for 2000 years turns in to $1,586 trillion, or $1.586 quadrillion, or a hundred year of US GDP. If you don’t like 2%, change it. If you don’t like 2000 years, change it.What the previous exercise shows is that a purse of silver was certainly not placed at interest anywhere in the world 2000 years ago, and allowed to compound at 2% interest, since that numerical representation of wealth would today dwarf all known hoards of “money”, electronic or otherwise. So compound interest is not a sustainable operation spanning millennia. Compound interest applied to any finite system will grow out of bounds, which is what we are experiencing today. The current “money” system, which is engineered with “debt/credit” as its foundation has breached its sustainable limit. Stimulating the economy without addressing the fundamentals of the “money system” decay will not restore economic prosperity. Money at interest, does not price risk in venture. A functional society requires an efficient “money system”, but “money” can be made available through means other than extending fractional reserve privilege to the banking class and putting a price on the existence of money.Lars’ piece may seem simplistic, but I like it. I’ll even take it a step further and say that a monetary and financial system that uses compounded interest cannot afford to compel all savings into the hands of debtors. It must have a means of hoarding wealth outside of the system in order to constrain the exponential growth function, or else the entire system will become retarded and then collapse. In return, this constraining function of “gold the wealth reserve” will restore intelligence to the human superorganism. Intelligence that has been sucked dry by Wall Street’s systemic aggression against a free-floating physical gold price.We are all like ants in an ant farm when we patronize Wall Street. Our contributions to society, should they exceed our day-to-day needs, are deployed by a system that does not care how they are deployed, just that they are deployed ASAP. If you would like to make a real contribution to the future of civilization then please buy physical gold and find a way to keep it close. Hoard your efforts outside of the system and watch as they receive a tremendous power boost just in time for deployment. You will be rewarded with the freedom to choose when and how your saved effort will be deployed and in so doing, you will help shape the future.Sincerely,FOFOA