US sues German bank for being fooled by US

US suing German bank for being fooled by US government

Kommentar auf Deutsch: http://laiglesforum.com/4004-2

http://laiglesforum.com/4004-2

by Don Hank

The US has just sued Deutsche Bank for around $14 billion [over a $3 billion loss, so kind of exaggerated – but the Fed and US are broke and ths is a desperate measure], and this has triggered a crisis that will affect the world economy.

http://www.reuters.com/article/us-deutsche-bank-lawsuit-idUSKCN0VC2NY

Deutsche Bank AG must face a U.S. lawsuit seeking to hold it liable for causing $3.1 billion of investor losses by failing to properly monitor 10 trusts backed by toxic residential mortgages, a federal judge ruled on Wednesday.

U.S. District Judge Alison Nathan in Manhattan said Belgium’s Royal Park Investments SA/NV may pursue claims that the trustee Deutsche Bank National Trust Co ignored “widespread” deficiencies in how the underlying loans were underwritten and serviced, and failed to require that bad loans be repurchased.

If you read the entire report linked above you will see that the root cause of the toxic mortgages sold by Deutsche Bank is not mentioned. No Western news outlet will tell you or remind you of why DB had these mortgages on its balance sheet, because, as usual, corruption in the US government kicked this all off. This is not to say that DB is blameless. But it was fraud on the part of US rating agencies Standard  & Poor and Moody’s that led up to this debacle (and caused the financial crisis of 2008). Some of these securities had been bought from the Fed in 2012 as a result of the bailout of AIG. Obviously, these were represented by the Fed as having more value than they actually had. Otherwise, DB would not have bought them. Please read the citations linked to below to learn the background of what happened.

German banks flooded with 75-90 billion euros worth of bad US mortgage-backed derivatives (from focus.de in 2008):

http://www.focus.de/finanzen/boerse/finanzkrise/finanzkrise_aid_267350.html

My translation of opening paragraph:

The Financial market crisis triggered in the US could, according to media reports, cost German credit institutes up to 90 billion euros. [And this was a report from 2008. The toxic derivatives have never been purged from the German system since then and now threaten to bring down Deutsche Bank, one of the biggest banks in Europe!—Don Hank]

ORIGINAL: Die in den USA ausgelöste Finanzmarktkrise könnte die deutschen Kreditinstitute nach Medienberichten mit bis zu 90 Milliarden Euro belasten

 

http://www.zeit.de/wirtschaft/2012-04/deutsche-bank-hypothekenanleihen

April 2012

My translation: Deutsche Bank has purchased a bundle of structured securities [mostly mortgage-backed derivatives] valued in the billions belonging to the one-time world’s biggest insurer AIG [bailed out by the Fed]. The Institute has, together with Barclays, reportedly won a bid for collateralized debt obligations (CDOs), which were dubbed toxic securities in the financial crisis.

ORIGINAL: Die Deutsche Bank hat der US-Notenbank Federal Reserve ein milliardenschweres Paket strukturierter Wertpapiere des einst weltgrößten Versicherers AIG abgekauft. Das Institut habe zusammen mit der britischen Großbank Barclays den Zuschlag für strukturierte Hypothekenpapiere (Collateralized Debt Obligation, CDO), die in der Finanzkrise als Giftpapiere bezeichnet wurden.

 

http://www.rollingstone.com/politics/news/the-last-mystery-of-the-financial-crisis-20130619

QUOTE

But the financial crisis happened because AAA ratings stopped being something that had to be earned and turned into something that could be paid for. [In other words, these agencies rated these securities as AAA but they could not have really earned that rating because, thanks to the bursting of the housing bubble, many of the lendees were no longer paying because their homes were no longer worth anywhere near the face value of their mortgages—Don Hank].

That this happened is even more amazing because these companies naturally have powerful leverage over their clients, as they are part of a quasi-protected industry that enjoys massive de facto state subsidies. Largely that’s because government agencies like the Securities and Exchange Commission often force private companies to fulfill regulatory requirements by retaining or keeping in reserve certain fixed quantities of assets – bonds, securities, whatever – that have been rated highly by a “Nationally Recognized” ratings agency, like the “Big Three” of Moody’s, S&P and Fitch. So while they’re not quite part of the official regulatory infrastructure, they might as well be. [Yes, and something else: The SEC had to know that these agencies were faking these ratings because they knew about the housing bubble even before it popped. The SEC is equally to blame but no one can sue them, so the government scapegoated the rating agencies that were, de facto, pressured into faking the ratings—Don Hank]

 

Thus you will see that the US is suing DB essentially for something that was set in motion by the above-named US rating agencies, which were allowed to get away with their fraud by the criminally derelict SEC, a government agency responsible for final oversight, independently of rating agencies.

How interesting that so much of the pain in the world is caused by our corrupt government trying desperately to get money by hook or by crook instead of cutting spending by putting people back to work and staying out of other countries’ affairs.

Like a boomerang, you can expect the aftershocks of the German crisis to hit you right square in the pocket book at some future date.

 

 

 

Hoax busted: There is no US-Saudi relationship

Hoax busted: the American people have NO relations with the Saudis

 

by Don Hank

 

A Neocon article titled Analysis: Russian jets in Iran change Mideast game – Middle East criticizes the new “game changing” arrangement between Iran and Russia in which the latter uses Iran’s airport facilities as a home base for its anti-ISIS bombing missions. While the author calls his piece an analysis, it is in fact blatant propaganda, distorting the nature of the “game change” he describes.

 

QUOTE:

“…this type of change is definitely not in the interests of the US, America’s traditional Sunni-Arab allies in the region, nor Israel.”

 

In fact, the US-Saudi relationship touted by the author is not a relationship between the US people and the Saudis, although the sneaky author would like us to believe it is. We the People obviously have no interest whatsoever in a relationship that spawned the Taliban, al-Qaeda and ISIS, destroyed previously stable partner countries like Iraq, Libya and Syria and seriously threatened Egypt until el-Sisi stepped in, all of which has served only to erode US prestige and credibility in the world. The American people have, in fact, an existential interest in ending this ill-conceived US Establishment-Saudi relationship as soon as ever possible, while the financial elites, notably the Federal Reserve Board, know that the Saudis are the key to propping up a dollar that has practically no other support in our debt-based economy and government. It is known that, under the secretive petrodollar agreement between the US elites and the Saudis, the US government has promised to protect the Saudi royals and their oil fields in exchange for their charging only US dollars for their oil and buying US sovereign bonds as financial reserves, all of which have been, since the early 70s, keeping the value of the US dollar artificially high. But what is not known is how much further that agreement goes in reality, thanks to terms brokered in secret, either since the original deal or at the time Richard Nixon and King Faisal signed it. What is known, however, is that all US wars outside the New World, without exception (ie, even the Kosovo war), have clearly benefited violent and intolerant Saudi Wahhabism, but in no way benefited the US people, and this is all a sinister indication that the agreement goes much deeper than is known. Indeed, looking back over the last 50 odd years of warfare, initiated by the US on the flimsiest of grounds, Washington and Wall Street appear to have sold out US interests and even the interests of civilization itself in exchange for a strong dollar worth far beyond any economy-based intrinsic value, enabling them to “print” unbacked dollars in QEs 1 through 3 and possibly beyond without having to pay for the value thereby stolen from other economies throughout the world.

By contrast with secretive US-Sunni (Wahhabi) cooperation, the Russia-Shiite relationship brought about the first sincere attempt to stop ISIS, thereby thwarting the once unchallenged Saudi-US relationship.

The US then reluctantly followed Russia’s example by attacking ISIS in Iraq, politically unable to do otherwise but knowing that in so doing it was flirting with the possible rupture of the dollar-supporting agreement described above, and hence with financial disaster for the elites.

Further, the rearrangement of the Middle East chessboard has not only led to Russia’s establishment of an airbase in Shiite Iran but, prior to this, had led to a flourishing relationship between Netanyahu and Putin, which has benefited both countries. There can be no question that Israel-US relations are now much cooler and unproductive than Russia-Israel relations. (But remember that the US and Russia have swapped roles both domestically and in terms of foreign policy).

Thus the crucial difference between US foreign policy and Russian foreign policy is that the US has so far cultivated good relations only with one side – the Sunnis and their radical Wahhabi terrorists (posing at times as “moderates”) and also with the warlike Likud Party in Israel (instead of reconciling both the hawks and the Israeli factions that want peace) – a policy that necessarily leads to the untenable situation of perpetual conflict, while Russia has taken the broader view, trying to cultivate relations with both Sunnis and Shia, and just as importantly, with Israel, in an attempt to bring permanent peace between Sunni and Shia in the Middle East and end the Palestine-Israel conflict. (BTW, there is another unseen aspect to all of this in that many Western Christians believe – in large part under encouragement from sly Neocons – that any US attempt to bring about peace in the Middle East is unbiblical and that somehow, God wants them to support, or at least passively consent to, senseless wars in order to fulfill prophecies that carry unspecified time frames and schedules. Yet this lack of specific time settings makes these prophecies hard to pin down and makes a rigid interpretation inappropriate at best. Further, there is no biblical commandment or even suggestion that Christians are supposed to consent to or participate in wars at any time in history — the way so many of them did during the Iraq invasion, believing at first — thanks to sly propaganda efforts willingly perpetrated by fooish clergy — that this disastrous war that saw the banishment of most Iraqi Christians, was godly. Thus Christianity has been used as a tool of Satanists thanks to the lack of common sense and spiritual discernment of these pawns with little grasp of the scriptures. I showed previously how these Christians are disobeying an important commandment of Jesus).

So yes, this new Russia-Iran arrangement is not in the interests of the US if we define the US as the Neocon perpetual war Establishment (including Obama and Hillary), and it is not in the interest of the Saudi Wahhabists whose ultimate goal is the total annihilation of Shia and Christians as well as civilization as we know it. But the Saudis, with their intolerance toward people with different opinions and religions, certainly do not deserve to be given by the US, through stealth or otherwise, the green light to continue founding and funding terror groups throughout the world, whether or not their rampaging props up the greenback, because such is obviously immoral unless you are a Neocon or central banker. Thus, Washington’s oft-times schizophrenic foreign policy is precisely due to the fact that, while the elites have constantly supported the barbaric Saudi regime and its thinly veiled terror campaign (for the reasons enunciated above), the ordinary people whom they despise sense that this policy is insane and threatens civilization.

The Establishment has been playing the mischievous wizard behind the curtain. But thanks in large part to Donald Trump, and to alternative media, this curtain is now in tatters and ordinary people can easily discern the wizard and his evil machinations. Whether or not Trump wins the presidency, it is only a matter of time before the wizard’s workshop will be permanently closed down.