Appreciation of Real Estate, or Nothing But Evidence of Monetary Destruction?
The GSE money pump;
financialsense.com
June 11, 2003
Ponzi and Electricity…
A Synopsis of the Global Markets - A Game of Manipulation and Intrigue or
A Derivative Banking Crisis on the Horizon?
A Little Background Music…
We play on Wall Street, understand how to follow the money and the GSE money pump holding up the consumer as the US Economy. We see through the monetary fraud of fractional reserve central banking. We are a believer in Austrian Economics according to Ludwig Von Mises and Murray Rothbard, and know enough about Kondratiev 60-year cycle economic wave theory to put some of the economic professors at Yale and Harvard packing their bags. We also understand the implications of Technical Analysis, or reading the tea leaves of stock charts, and understand the histories of the markets, including the great markets bubbles which include South Sea, Mississippi, Mr. John Law, and Fiat Money Inflation in Revolutionary France. We currently professionally manage several family portfolios on Wall Street, in this, the Greatest Secular Bear Market in 400 years of global economic history. We have appraised for the FDIC in the mid-80s in a micro realty market depression when folks didn’t have any federal reserve notes (aka money). The true definition of the U.S. Dollar is 371.25 grains of fine silver, as defined in the U. S. Constitution. A Federal Reserve Note is not a U. S. Dollar. We believe U.S. Real Estate is in a market bubble, mainly as a result of the American Central Bank printing money like mad, that is driving up real estate values, as a witness of the current currency destruction. Real Estate values which appreciate from monetary destruction, and not real micro or macro economic forces reflecting the effective supply and demand as the real actions of buyers and sellers in the marketplace as tangible market forces impacting real estate is a smoke and mirror, for monetary destruction.
Here’s what’s happening in the Global Markets as we see it…
Free markets do not appear to operate in the precious metals markets, or on Wall Street, because of direct market intervention and control by the Federal Reserve, the Equalization Stabilization Fund, the Working Group on Financial Markets, aka the Plunge Protection Team, as well as other behind the curtain market participants, including the U.S. Treasury.
By rigging the gold and silver markets, these participants since 1994 have participated in the gold leasing scam, which leases physical metal into the market, which is then in turn sold. There are about 15,000 tons of gold short the market which has been dispersed in this manner. By controlling the price of gold, the American central bank hides the destruction of the monetary system as the price of gold is capped, hiding the inflation of the currency from an unknowing public, and unknowing investors. Through the two-tiered structured finance system in which the GSEs operate, mortgage backed securities are globalized to investors using the real estate housing bubble to hold up the consumer as the U.S. Economy. All the while these participants export the inflation of the US dollar abroad to investors who believe their GSE securities are backed by the US Congress, which they are legally not.
With nearly $142 Trillion dollars in total global derivatives, which include the bullion markets and the mortgaged backed securities, a derivative crises of immense proportions is on the horizon. Less than 10 months ago, total global derivatives were about $74 Trillion dollars according to Jim Sinclair at www.jsmineset.com. How about that for exponential growth? If a banking derivative crises did erupt, in light of the decline of the US dollar in world currency markets, and the market bubble in the stock and bond markets, if foreign capital moves back to its source of origin, we expect every micro realty market in America to be impacted, regardless of Mr. Greenspan, the Fed Chairman's salve, that real estate markets are all local, thus cannot be markets bubbles. This monetary charlatan would not know a markets bubble if it bit him on his assets. Real estate is one of the current markets bubbles which include stocks, bonds, the US$, debt, as well as credit excesses. These trends have historically been documented by Doug Noland in his Credit Bubble Bulletin at www.prudentbear.com, and by www.gata.org, and www.lemetropolecafe.com, and, are a matter of Internet Fact, if one does his homework.
Appreciation of Real Estate, or
Nothing But Evidence of Monetary Destruction?
The classic definition of inflation is more paper legal tender fiat paper currency chasing fewer goods and services, not rising or higher prices. The GSEs use the counter-party risk instruments called derivatives to trade and hedge on interest rates, currencies, and other bets on the global markets to grow their portfolio at 15% per year. Derivatives are “sewage instruments of mass destruction” according to Warren Buffett, the Oracle of Omaha, of Berkshire Hathaway. Mr. Buffett is the second richest man in the world. Derivatives are a financial accident in two-tiered structured finance and a financial house of cards… with the storm clouds on the horizon approaching American Shores.
Participants in the micro realty markets across America believe their market is generally a recession proof microcosm in the Universe, cannot be a markets bubble, and are not systemically exposed to global markets risk, aka derivatives. My own Columbia/Boone County Missouri Real Estate Gambling Casino is no exception. The nice mortgage speculators have thrown some wild money at the markets as speculative excesses and mal-investments in realty. If the histories of real estate micro markets follow stock markets, or if we do have a derivative banking crisis, either because of metals manipulation, or two tiered structured finance propagated by the American GSEs, a lot of nice decent folks may get financially hurt. This includes Fannie Mae and Freddie Mac, and some others. If micro realty markets start imploding, we shall see who's been swimming naked as the tide goes out (love Warren Buffett), who the real magicians are, and who can and cannot walk on water.
The Prime Directive?
What’s the prime directive? Simply put, Mr. Larry Becraft down in Huntsville, Alabama identified it for me as part of the money issue. The prime directive is the completion of total bank consolidation of all the small, medium, large, and regional banks outside of the Federal Reserve and the Big Boys on Wall Street. A deposit in Kansas can then go electronically to Red China, in the flick of an eyelash.
Of particular significance presently is the war of the "Fed" against its own kind, private commercial banks. The Fed desires to bring all banks directly under its control and to create out of some 14,000 independent banks a few large industry giants. The fewer the number of banks, the greater the control by the "Fed." A deposit made into a bank in heartland America can quickly result in credit extended to Red China.
There are many other detrimental effects to be noted as a result of the banishment of specie as the only component of our monetary system and its replacement by fiat currency, but such would serve no purpose here. It only needs to be noted that specie coin is "free man's" money; it is unpolitical and a circulating currency of specie coin cannot result in any governmentally imposed favoritism or benefit to debtors at the expense of creditors. Fiat currency, however, is political money and can be used to favor one group against another or to destroy any group, including an independent sovereign state."
—as taken from Period N: FIAT LAW EQUALS FIAT CURRENCY, 1968 TO THE PRESENT, MEMORANDUM OF LAW: THE MONEY ISSUE -- Larry Becraft, Huntsville, Alabama
See: Memorandum of Law: The Money Issue
We have identified the best method of the American Central Bank to accomplish the prime directive of all those banks, savings and loans, and credit unions who cherish being outside the Federal Reserve. In our view, the best method to accomplish this consolidation, is through a controlled and manipulated general micro and macro market real estate price collapse, wherein, the Federal Reserve can see to it that these independent banking assets are then centralized for the House of Rothschild and the Rockefellers on Wall Street. For more about the Federal Reserve and its synergistic role with government as a partnership cartel, see the excellent essay by Nelson Hultberg, Is the FED a Private Corporation?
Consolidation in the game of bailout can be accomplished similarly to my friend G. Edward Griffin’s Chapter 2, “The Name of the Game is Bailout,” from The Creature from Jekyll Island – a second look at the federal reserve. We had the Savings and Loan Bailout in the late 80s/early 90s… We anticipate bailing out the mortgage bankers, mortgage brokers, and the other nice folks sometime between now and 2010.
We have the equivalent to a micro-doctorate in global economics based on our self-study and continual research since 1991. An internet version of this essay can be found on our website at pgtigercat.com, and is called THE NESTEA DERIVATIVE PLUNGE - CENTRALIZATION OF THE APPRAISAL INSTITUTE -- PART 3. We have also written other essays and research on Blitzkrieg Mortgage Lending, Blitzkrieg Appraisal, and Mortgage Fraud, as well as the Centralization of Appraisal Institute on our website available at this link: pgtigercat.com
Conclusionary Remarks on the Impending Derivative Storm Offshore
We believe that real estate valuation professionals or professional realty valuation organizations who do not inform their clients of these global markets trends in their valuation work, do their clients a disservice. Appraisers, regardless of professional designation or professional organization, are responsible for their self-education, and should not rely on partisan education and politics of professional realty valuation organizations, which are controlled by the central bank and the GSEs to spoon feed them pabulum with respect to continuing education. Most continuing appraisal education is a joke and a rehash of the same old stuff, and is not Wall Street, GSE, Federal Reserve or money-pump centric in the game of two-tiered structured finance. It is the global markets that will bite a lot of micro realty markets on the behind, a lot of banks, S&Ls, and mortgage brokers to boot, not to mention professional realty valuation ogranizations. See the following link to Jim Puplava's interview with Doug Noland on two tiered structured finance. Mr. Noland's work in Credit Bubble Bulletin at www.prudentbear.com is awesome.
See: financialsense.com
The current accepted definition of market value includes payments in US Dollars as part of the definition. That’s a big joke, since the US dollar died in 1913 with the creation of the American central bank, aka the Federal Reserve, which has to date, destroyed over 95% of the value of the Constitutional US Dollar at 371.25 gains of fine silver. We use legal tender fiat paper funnie monie as our “dollar”, but these are FRNs, Federal Reserve Notes, tokens for money, or legal tender fiat paper money unbacked by specie (aka gold or silver) within the definition of market value for realty. This is in fact, hocus-pocus. With the derivative banking crisis on the horizon, it is not a pretty joke.
About improved real estate…
Improved real estate always has, is, and always will be a depreciating asset. Of course real estate can appreciate in value within a given local micro or macro market because of market forces within that market. This is due to increased effective demand caused by a change in the dynamics of the market…i.e., enhanced location, high demand area, limited supply, influx of buyers, et cetera. However, property price appreciation caused by Mr. Greenspan and Mr. Bernanke printing FRNs, aka “your definition of Dollar, not mine,” is nothing more than witness to a financial house of cards and the monetary destruction of the United States in every micro and macro realty commercial and residential market within the confines of the sphere of the GSEs, aka Fannie Mae and Freddie Mac, which are, in fact the money pump of the Federal Reserve holding up Ma and Pa Kettle on Main Street America as the US consumer and the US economy.
It takes two to tango, or
a word on mortgage/appraisal fraud…
We believe appraisal and mortgage fraud exists in every micro realty market in America. Our example from Boone County Missouri is a property we appraised in the $136,000 to $141,000+- value range in January 2003 which sold for $145,000 in April 2003 with $3,500 worth of lagoon upgrades to the jet aeration septic tank system because of our clay soils. I re-appraised the property at the sale in April 2003, and it was fine with the additional work and upgraded market sales. The loan balance at time of sale was $179,000 and change, and the appraisal report I reviewed in January 2003, which was performed in 2002, was for $209,000. That is appraisal fraud, and that is mortgage lending fraud!—and it is nasty stuff! We just learned from attending an Appraisal Institute Chapter Meeting in Kansas City that the FBI was currently conducting an investigation of several appraisers in that market. The FBI agent told one appraiser, "You are going to jail!"
Either do it right, or
go drive a taxi…
A lot of appraisers slop through valuation work to make a buck, price war fees to get the lion's share of valuation work, or gloss over the Big Picture with "Let's Party" and "Be Happy," in their work. Real estate which increases in value because of real, justifiable, supportable micro and macro economic forces which are driven by effective supply and effective demand as the reactions of buyers and sellers in the realty marketplace may in fact cause realty as a depreciating asset to increase in market price. Real Estate which increases in market price at the whim of Mr. Greenspan and Bernanke's Federal Reserve, and Mr. Raines walking on water Fannie Mae, aka the FED induced GSE money pump, is nothing more than the smoke and mirror of the end game of monetary destruction. Where is Ponzi, and where will he be when the electricity goes off...?
© 2003 Bastille Day 2003 Bullock Appraisal & Consulting
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