“The first U.S. official told CNN the intelligence assessment shows the attack was ordered at the “highest levels” of the regime. That official declined to specifically say whether al-Assad ordered the attack but did not rule it out. ‘We are not saying Assad himself had his finger on the button. But he is responsible for the stockpile and any attack like this would have to have been approved at the highest levels,’ he said. He rejected the notion the evidence of regime involvement was circumstantial.” Now, Syria must disprove it.

The ultimate evil of a Stasi, a NSA, or a CIA spying and listening to all communications, is that they can put words in your mouth, which you might deny, but with which the State will incriminate and destroy you. That the government or its agencies lie should be no surprise. http://www.truthinjustice.org/FBI-crime-lab.htm With the “evidence” presented by Kerry or Obama, there is no chance “to confront the witnesses.” You must trust what a US government agency generates.

False evidence presented to a gullible public is the M.O. of most governments. A famous example was in Stalin’s show trials, where ardent true believer communists were convicted of plotting against communism. “In the Indictment of the trial of the Old Bolsheviks Pyatakov, Radek, Sokolnikov, Serebriakov, Muralov and others, it states: ‘The investigation has established that LD Trotsky entered into negotiations with one of the leaders of the German National Socialist Party with a view to waging a joint struggle against the Soviet Union…The principles of this agreement, as Trotsky related, were finally elaborated and adopted during Trotsky’s meeting with Hitler’s deputy, Hess…” “Khrushchev finally reveal[ed] that the Trials were in fact f[r]ame-ups.”

Right now, we get US government confirmations by unidentified and unquestionable government hacks that the Syrian army used the poison gas, not the rebels. “Last Wednesday, in the hours after a horrific chemical attack east of Damascus, an official at the Syrian Ministry of Defense exchanged panicked phone calls with a leader of a chemical weapons unit, demanding answers for a nerve agent strike that killed more than 1,000 people. Those conversations were overheard by U.S. intelligence services, The Cable has learned.” Were those the same intelligence agencies and their hacks which confirmed WMD in Iraq? Did those agencies tell Susan Rice that the video incited the mob to attack in Benghazi?

Those poor dumb Syrians weren’t aware that electronic communications were being monitored world-wide and foolishly allowed their plans to be intercepted. How come those rebels keep losing to the Syrian army, when their enablers have complete intelligence about all planned Syrian army acts?

The Stalin Show trials have been replaced with the Obama Trials, where the defendants, here Syria, are found guilty by Obama and punished summarily by Obama. (Summary judgement is used by US judges to dispense with a trial, because the judge has determined, without any witnesses or defense presented, that the facts are irrefutable and a trial unnecessary for his final decreed judgement.) Why is the word of NSA or the CIA of what was communicated deemed fact, when it is easily manipulated or a total lie. Why did the framers with the sixth amendment demand the ability to confront witnesses and a public trial? At least, Stalin held a public trial where the false evidence was presented. Did framers envision a President as a secret judge and jury, and the executioner with drones of American citizens? Does absolute power always corrupt?

Who is next? Obama’s government has revealed: “Not only was it implied that Evangelical Christianity is as dangerous as a terrorist organization, but it was at the top of the list of threats,” which included: Evangelical Christianity, Ultra-Orthodox Jews, Christian Identity, Catholicism, Fundamentalist Church of Jesus Christ of Latter Day Saints, and with“Islamophobia” was also listed as a form of religious extremism.

Once, Obama came for the Syrians, and pronounced his summary judgement after a secret trial held among his advisers. The basic lie is that the government is better qualified to run your life. Another lie you must tell yourself, is that you ought trust your government with its data, what it says others said and what it will say you said. Stalin is dead, but his spirit goes marching on in government.

Many States including NY require the loss of employment, if taking the fifth in regard to such employment. The NY State Constitution says: “providing, that any public officer who, upon being called before a grand jury to testify concerning the conduct of his or her present office or of any public office held by him or her within five years prior to such grand jury call to testify, or the performance of his or her official duties in any such present or prior offices, refuses to sign a waiver of immunity against subsequent criminal prosecution, or to answer any relevant question concerning such matters before such grand jury, shall by virtue of such refusal, be disqualified from holding any other public office or public employment for a period of five years from the date of such refusal to sign a waiver of immunity against subsequent prosecution, or to answer any relevant question concerning such matters before such grand jury, and shall be removed from his or her present office by the appropriate authority or shall forfeit his or her present office at the suit of the attorney-general.”

The Supreme Court said in regard to the Hatch Act: “When actions of civil servants in the judgment of Congress menace the integrity and the competency of the service, legislation to forestall such danger and adequate to maintain its usefulness is required. The Hatch Act is the answer of Congress to this need.” Engaging in partisan political activity as part of Federal Government employment is illegal.

Lois Lerner, the head of the exempt organizations division of the IRS, won’t answer questions about what she knew about the improper screening – or why she didn’t reveal it to Congress, according to a letter from her defense lawyer, William W. Taylor 3rd. Lerner was scheduled to appear before the House Oversight committee Wednesday. But, Committee Chairman Issa said “no”, and a subpoena was issued for Lerner.

Will Obama repeal the above Eisenhower Executive Order or refuse to act on it? Will Obama issue a pardon in advance for Ms. Learner? Should federal government employees avoid oversight by taking the fifth, which was rejected by the Supreme Court? Is not what is constitutionally demanded in NY State and other States and which the federal Executive Branch under Eisenhower approved not required for honest government? Quo vadis, Obama? A Hatch Act prosecution, Holder?

Further information: http://en.wikipedia.org/wiki/Lois_Lerner

http://dailycaller.com/2013/05/14/irs-official-lerner-approved-exemption-for-obama-brothers-charity/

“GM Financial auto loans to customers with FICO scores below 660 rose from 87% of total loans in Q4 2010 to 93% in Q1 2012. The worse the FICO score, the bigger the increase. From Q4 2010 to Q1 2012, GM Financial loans to customers with the worst FICO scores — below 540 — shot up 79% to more than $2.3 billion. The second worst category, 540-599, rose 28% from about $3.4 billion to $4.3 billion.   Prime loans, those above 660, dropped 42% to $676 million.“ The bottom line is that GM’s $6.6 billion dollars in sub-prime loans are ten times larger than GM’s prime loans of only $0.676 billion dollars. In the mortgage bust, the sub-prime loans were only one half of the total.In 2010, GM acquired AmeriCredit and changed its name to GM Financial. Americredit had been financing GM vehicles using the following criteria:

— $2,000 minimum monthly income.
Prefer 1 year job history.
Prefer 1 year residence history.
No credit scores below 500.
Prefer at least 3 years of credit and 5 lines of credit.
Chapter 7 and 13 bankruptcies must be discharged.
Cannot currently be involved in credit counseling.
Must be able to pass a standard ID check.

The housing mortgage bubble began inflating in 1999 when Andrew Cuomo at Clinton’s HUD issued the following decree? “HUD Sec. Andrew Cuomo today announced a policy to require the nation’s two largest housing finance companies to buy $2.4 trillion in mortgages over the next 10 years to provide affordable housing for about 28.1 million low- and moderate-income families. Cuomo said the historic action by HUD raises the required percentage of mortgage loans for low- and moderate-income families that finance companies Fannie Mae and Freddie Mac must buy from the current 42 percent of their total purchases to a new high of 50 percent.” The Federal government required that half ($1.2 trillion dollars) of the $2.4 trillion in new mortgages be made to sub-prime borrowers.

GM’s sub-prime auto loans will mostly default in any economic downturn. GM through its GM Financial division will be stuck with a big supply of repossessed vehicles to dispose of, a greatly reduced number of potential buyers and the resulting big losses. Who will GM sell its new vehicles to then? Those with even lower credit ratings?

When GM was taken into bankruptcy, its financial arm GMAC was changed to a separate entity and was renamed Ally Financial. Ally Financial made some of the sub-prime loans for GM and presently funds other GM operations such as dealer inventory. In stress test results released this week (March 2012), Ally Financial Inc fared by far the worst of 19 banks examined by the Federal Reserve, adding to questions about the ability of the former lending arm of General Motors to pay back some $12 billion in taxpayer money. A second (GM) and a third (Ally) bankruptcies are ahead?

GM and Ally are pending failures for US taxpayers and Obama. In its latest monthly report to Congress, the U.S. Department of Treasury said it expected to lose $25.05 billion on the bailout. When the sub-prime chickens come back to roost at GM, US taxpayers will lose all their remaining $10.1 billion worth of stock. Forbes predicts GM will go bankrupt in the second Obama term or under Romney.

Imagine: the delusional prodigal Obama has promised to repeat this with all other troubled industries in our land.

The following table shows the amount of such swaps in millions of dollars ($42 trillion dollars at JPM).  Note the leverage of total assets to swaps and the high percentage of derivatives which are swaps.  The leverage is the ratio of total assets to derivatives.

What is a credit default “swap?”   When government entities or corporations issue bonds, they may buy credit default insurance for those bonds to pay in case of default.   This insurance allows a lower rate of interest and enables many investment funds to buy this “safe” debt as required by their rules.  This insurance cost is paid out of the initial proceeds of the bond offering and is made by some large entity, which could pay off, if necessary.  The five large US banks see this as a great cash generator with any liability to come in future years, after the present executives are retired.  In order to spread the risk to others, these banks trade shares of this liability for losses (credit defaults) with other banks, hence called a swap.

Credit defaults are liabilities not assets, which you trade for another liability.  Banks trade or can pay money to the acquirer of such credit default shares.  The receivers of such credit default swaps are other financial institutions or hedge funds.  Or, I’ll trade one Greek credit default share for for four of your Widget Corp bond credit default shares.

As already reported, some Greek debt has already defaulted and the insured parts of those losses will be spread around to all the holders of those Greek swaps.  JPMorgan, after making many unidentified swaps, was left with a $2 billion dollar assortment of lower value credit defaults claimed to be in corporate bond credit defaults.  Did JPMorgan try to dispose of its Greek, Spanish and Italian credit defaults and got stuck with worse junk?   JPMorgan’s losses are just the tip of the coming credit default losses on Greek and other EU nation’s debt which will be absorbed by the many players in credit default swaps.

Enter the government clowns and scoundrels, aka politicians and bureaucrats, looking to assigning blame:  Under Dodd-Frank law, a Volker rule is to be put in place in July to limit speculative bets using a bank’s capital.   The SEC is investigating JPMorgan losses.  But as reported here, Schumer and Eric Holder are the hyenas in charge of the financial chicken coop.   Did the smartest man in the room, aka Obama, learn about credit default swaps in his affirmative action “Finance Simplified” course?  Does Tim Geithner, who was unable to correctly answer the question whether he had earnings outside of the USA on his Federal Income Tax program, understand credit default swaps?  Will Jamie Dimon, CEO of JPMorgan, who is on the NY Federal Reserve Board resign as requested by Massachusetts Senate candidate, “Pocahontas” Warren?   Will the Federal Reserve bailout any of the five too-big-to-fail banks for losses from credit defaults exceeding capital?  Does Ron Paul understand credit default swaps or the supervision of banks? Where is Ron Paul on credit default swaps in his House Committees?  Were the moral hazards of profits from credit default fees received up-front with possible losses much later or bailed-out by the Federal Reserve too great? 

Just ahead:  “Greece’s deputy prime minister has said the country will run out of money in six weeks unless it honours its bitterly-disputed EU bailout deal.“    Alexis Tsipras, former student Communist leader, whose party took second place in elections, “insists Brussels and Berlin will not force Greece out of the euro because of the contagion effect this would have on Portugal, Ireland and Spain.”   What happens when the holders of defaulted insured Greek and other EU defaulted bonds want payment on their insurance?    The issuing bank may claim they swapped the obligation to pay to other parties, like hedge funds or then insolvent banks.  Instead of receiving insurance payouts, the holders of insured debt could become parties to Federal legal actions involving the issuing US bank and all the other holders of those swapped credit defaults.    Three heads rolled at JPMorgan, including Ina Drew, 55, one of two women on the operating committee at JPMorgan.    Will other bank weasels be allowed to escape?  Were the credit defaults offered in swaps already known ready to default and thus frauds/crimes by the traders as may be claimed by final holders of the swaps?  Or were the swaps innocent errors due to incompetence, or greed?

The winners:  the lawyers get richer.  The losers: the defaulted bond holders, un-defaulted bond holders due to rising interest rates, banks, bank stocks and the taxpayers paying through the Federal Reserve or with another TARP bailout.   Did you believe that losses in Greek and other European defaults would stay in Europe?  Look at the graph above to see who holds most all of the derivatives.   Will derivatives become weapons of mass destruction for the five too-big-to-fail US banks?  See the latest opinion on Zero Hedge, “the problems facing the EU (Spain and Italy) are too large to be bailed out. There simply aren’t any funds or entities large enough to handle these issues.”     Quo vadis, Romney?   

According to the federal law in the Handbook of Ethics for the Department of Justice and the federal law: “If you are an attorney with the Department, you are expected to comply not only with the rules in this booklet, but also with relevant professional codes of conduct.” These relevant rules include the following disciplinary rule: (a disciplinary rule is one requiring sanctions by the court through bar committees) DR 9-101 [1200.45] Avoiding Even the Appearance of Impropriety. A. … 3. A lawyer serving as a public officer or employee shall not: a. Participate in a matter in which the lawyer participated personally and substantially while in private practice or non-governmental employment, unless under applicable law no one is, or by lawful delegation may be, authorized to act in the lawyer’s stead in the matter.

Have you wondered why the DOJ has not prosecuted anyone for the derivative fraud or why the DOJ settlement is opposed by all 50 States with mortgage lenders? Look no further than the Attorney General and Lenny Breuer, who is head of the DOJ criminal prosecutions, and then connect with the ethic rules above. Note that, “while Holder and Breuer were partners at Covington, the firm’s clients included the four largest U.S. banks – Bank of America, Citigroup, JP Morgan Chase and Wells Fargo & Co – as well as at least one other bank that is among the 10 largest mortgage servicers. … Covington represented Freddie Mac, one of the nation’s biggest issuers of mortgage backed securities, in enforcement investigations by federal financial regulators. A particular concern by those pressing for an investigation is Covington’s involvement with Virginia-based MERS Corp, which runs a vast computerized registry of mortgages. …MERS, which stands for Mortgage Electronic Registration Systems, has been at the center of complaints about false or erroneous mortgage documents. Court records show that Covington, in the late 1990s, provided legal opinion letters needed to create MERS on behalf of Fannie Mae, Freddie Mac, Bank of America, JP Morgan Chase and several other large banks. It was meant to speed up registration and transfers of mortgages. By 2010, MERS claimed to own about half of all mortgages in the U.S. — roughly 60 million loans. But evidence in numerous state and federal court cases around the country has shown that MERS authorized thousands of bank employees to sign their names as MERS officials. The banks allegedly drew up fake mortgage assignments, making it appear falsely that they had standing to file foreclosures, and then had their own employees sign the documents as MERS “vice presidents” or “assistant secretaries.”

Lenny Breuer admitted his errors in Fast and Furious without consequences. Darrell Issa, House Oversight Committee Chairman, had subpoenaed e-mails between Breuer and Holder in regard Fast and Furious, but there was no compliance. Then, there is Holder claiming no knowledge of the bribed DOJ prosecutors in the Virgin Islands. “The DOJ never acted on the sealed indictments, which were the consequence of a lengthy criminal scheme involving bank fraud and other financial crimes. … U.S. Virgin Islands Gov. John de Jongh, a Democrat, was personally on the receiving end of a portion”

Here’s what the FBI has to say about public corruption: Public corruption poses a fundamental threat to our national security and way of life. It impacts everything from how well our borders are secured and our neighborhoods protected…to verdicts handed down in courts…to the quality of our roads, schools, and other government services. And it takes a significant toll on our pocketbooks, wasting billions in tax dollars every year. The FBI is singularly situated to combat this corruption, with the skills and capabilities to run complex undercover operations and surveillance. Eric Holder is charge of the FBI.

Why should Republicans tolerate the corruption of Holder and Breuer? House Speaker, John Boehner, is protecting Holder and his gang and trying to make a deal with Holder to avoid a criminal contempt court action against Holder which Congress would easily win.   Is it because V. I. Governor de Jongh pulled the race card with,“It is a sad day in our nation when reckless allegations can be published without substance or verification as part of the smearing of our President or his Attorney General. This kind of broad brush stereotyping was shameful in the days of Jim Crow, and it is more so today?” So, Boehner won’t be called a racist and will be a nice guy? Boehner participates, along with Holder and Breuer, enabling total public corruption and the perversion of US Law and the US Department of Justice.   Leo Durocher of the Brooklyn Dodgers, expressed it best, “Nice guys finish last.”

Johnny Boehner, pudding and pie, tried to to kiss a Democrat and it made him cry. When the boys came out to play, Johnny Boehner ran away.

Is Chuck Schumer’s former lawyer, now federal prosecutor for the Southern District of NY, still working to aid contributors to Schumer and his political funds?

Schumer is #3 Democrat in Senate and his committees include:

Committee on Finance
Subcommittee on Taxation and IRS Oversight
Committee on Banking, Housing, and Urban Affairs
Subcommittee on Financial Institutions
Subcommittee on Securities, Insurance and Investment
Committee on the Judiciary
Subcommittee on Administrative Oversight and the Courts
Subcommittee on Antitrust, Competition Policy and Consumer Rights
Subcommittee on Crime and Drugs
Committee on Rules and Administration (Chairman)
Joint Economic Committee (Vice Chair)
International Narcotics Control Caucus

Schumer used his Senate Committees to have a veto power over appointment of Federal Judges in New York and at the Second Circuit Court of Appeals since 1998. Schumer picked Mukasey as Bush’s Attorney General.  Schumer picked Paulson, when Bush asked him who to make Treasury Secretary. Paulson, as Bush’s Treasury Secretary, engineered TARP which was blamed on Bush and Republicans.

Schumer is the king of cash from the financial sector, taking in $2.2 million in contributions from commercial banks, the securities and investment industry and the finance and credit card industry from 2009 to this month, according to the campaign finance watchdog Center for Responsive Politics. During the past five years, some of the biggest contributions to the vice chairman of the Democratic Conference and chairman of the Rules Committee have come from groups connected to hedge fund Paulson & Co., banking giant Credit Suisse and the investment firm Blackstone Group.

Meanwhile, Gillibrand, New York’s junior senator, aka Schumer’s Hand Puppet, has taken in roughly $1 million from the financial sector since 2009. Her biggest contributors in recent years have included political action committees and employees from JPMorgan Chase, Deutsche Bank and Morgan Stanley.

The Times goes on to describe Schumer’s prodigious pecuniary abilities with a strikingly provocative term:  An exceptional fund raiser — a “jackhammer,” someone who knows him says, for whom “ ‘no’ is the first step to ‘yes,’ ” — Mr. Schumer led the Democratic Senatorial Campaign Committee for the last four years, raising a record $240 million while increasing donations from Wall Street by 50 percent. That money helped the Democrats gain power in Congress, elevated Mr. Schumer’s standing in his party and increased the industry’s clout in the capital

Connecting some dots: Bharara worked for Schumer. Raymond Lohier was the head of Bharara’s securities fraud unit. Lohier now sits as appointed judge [recommended by Schumer] on the Second Circuit Court of Appeals. Bharara explains why he can’t prosecute bank fraud here.

Who supervises Bharara? Well, it’s Eric Holder, Attorney General, and Lenny Breuer, Head of Criminal Prosecutions at the Justice Department. As described in my prior post they’re connected with outside lawyers and ought remove themselves from overseeing prosecutions on Wall Street. But, the lawyers, like the devil, always want to get their due.   In the Spirit of ” Never let a good shakedown go away unused,” Obama [is] still flush with cash from financial sector despite frosty relations.

So in summary, what would a wise Wall Streeter do?  Contribute to Schumer and Obama, hire the connected law firms and feel safe or risk much more in court battles?   Is this a classic shakedown of honest businessmen or protection racket for crooks?  Were you expecting that the Federal District Court Judges or the Federal financial overseers to independently protect the people or you?  Was the 20 year low in financial-fraud prosecutions and Justice purchased under Obama, Eric Holder and Schumer?