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"Down the Memory Hole," Alan Greenspan Style
By Stephen Lendman (about the author) Page 2 of 3 page(s)
Greenspan blamed the housing bubble on success, or in his words: "the tectonic shift in the early 1990s by much of the developing world (away) from central planning to increasingly dynamic, export-led market competition. The result was a surge (in growth) that led to an excess in savings." That, in turn, "propelled global long-term interest rates progressively lower between 2000 and 2005," and guess who takes credit.
The "Maestro," of course, with Greenspan quoting Milton Friedman for support. In evaluating the 1987 - 2005 period, he said: "There is not another period in which the Federal Reserve System has performed so well. It is more than a difference of degree; it approaches a difference of kind." From one defrocked icon about another, his comment rings hollow, and, according to Catherine Austin Fitts, the evidence is compelling from her experience as an insider.
Replying to the Wall Street Journal, she explained that her "company served as lead financial advisor to the Federal Housing Administration between 1994 and 1997. (She) watched both the Administration and (Fed) aggressively implement policies that engineered the housing bubble," and gave an example involving securitizing mortgages for pooling, then repackaging and selling them in tranches to investors.
"Even in 1995, (she) could see that these plans would create unserviceable debt loads in communities struggling with" globalization-caused declining incomes. The fallout would be mortgage defaults combined with mortgage-backed securities (MBS) "drain(ing) retirement savings from 401(k)s and pension plans."
Taxpayers would get the bill "but insiders would make bundle." She accused an administration official involved in the scheme with "planning on issuing more mortgages than there were houses or residents." His reply: "Shut up, this is none of your business."
It gets worse the result of the "long standing partnership of narcotics trafficking and mortgage fraud," then combining them "to target and destroy minority and poor communities with highly profitable economic warfare. The model is global" and very profitable throughout the world and across America with numerous examples as proof. She cited one.
In October 1996, Rep. Maxine Waters (D-CA) released documents showing evidence of CIA links to the South-Central Los Angeles crack epidemic at least since the mid-1980s, attributable to fund-raising efforts for the Nicaraguan Contras.
Fitts wrote in May 1999 that in December 1997, "the CIA Inspector General delivered Volume I of their report to the Senate Select Committee on Intelligence" on the charges. It documented "the continued (money laundered) flow of an estimated $500 billion - $1 trillion a year....into the US financial system." To placate Waters, Greenspan met with her in January 1998 and "pledged billions (would) come to her district." It began in February when Al Gore announced it "was awarded Empowerment Zone status....and made eligible for $300 million in federal grants and tax benefits."
Fitts called Greenspan a "liar" and accused him of being complicit with the Treasury in engineering the housing bubble "as part of a financial coup d'etat" - documented in her writing "Dillon, Read & Co. Inc. (where she served as a Managing Director and Board member) and the Aristocracy of Stock Profits." She explained how:
"America's aristocracy makes money ensnaring our youth in a pincer movement of drugs and prisons and wins middle class support through (government-funded) contracts for War on Drugs activities at federal, state and local levels. This consensus (is sustained) by the gush of growing debt and derivatives used to bubble the housing and mortgage markets, manipulate the stock and precious metals markets, and finance trillions missing from the US government in the largest pump and dump in history....of the entire economy."
It's "more than a process designed to wipe out the middle class. (It's) genocide - a much more subtle and lethal version than ever before perpetrated by" legions of previous scoundrels. She described a process of insider deals designed to:
-- hollow out America,
-- centralize power and knowledge,
-- shift wealth to the privileged,
-- destroy communities and local infrastructure,
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