BofA Putting $79 Trillion in Toxic Derivatives Onto Taxpayers Backs

by  Jim W. Dean,  VT editor

A new attack on the US has begun. It is not nuclear, no planes hitting buildings, no secret terror cells, not as we know them anyway but the results, we may wish for a nuclear attack.  It might be more survivable. 

The target is the FDIC, one of the rolling targets of remaining capital that the bankster coalition is seeking after having pushed America into full collapse during the Bush years of “looking the other way.”

No conspiracy theory can come close to matching the very real scope of the Bush era derivative fraud, hundreds of trillions of dollars of worthless securities created out of thin air, more money than a thousand world wars would cost, more money than social security checks for the entire world for a thousand years.

This week, Bank of America and its subsidiary, Merrill Lynch was caught trying to launder its admitted $79 trillion dollar debt.

One bank, bordering on collapse owes 5 times more than America’s national debt.

The problem?  They are involved in a “stealth” or “end run” program, aided by the Republican Party, to push this debt inside America’s national debt, pushing it onto the American people although it is certain to collapse the dollar.

The other Wall Street banks, though surrounded by protestors, hold well over $400 trillion more in worthless toxic derivatives. We suspect this number could be even higher.

If you wonder how the “1%” made its billions (trillions), they did it the old fashioned way.  They stole it. “Toxic” is a euphemism for “counterfeit.”

A “toxic derivative” is a “thing” a bank claims it has that is worth something when, in actuality, it is nothing at all.  A derivative has no money behind it, no company that makes things, no gold or silver, not even vacant land on one of the moons of Saturn.

Years ago there was  a famous banker named Carlo Ponzi.  People would give him money and he would return that and a good profit, perhaps too good a profit.  What he was doing, of course, was paying his first investors money he stole from suckers who got in at the back of the line.

Banks lent out money they said they had, based on “toxic derivatives,” and made huge profits on the interest they got when people paid back the money that actually never existed in the first place. In certain circles this is known as an ‘air deal’.

Nobody believed that every major bank in America would lie about something this simple or be allowed to commit such brazen crimes.

After all, were there laws and regulations?  Oh, you say such regulations are “socialism” and restrict the free use of capital.

So the banks invented $500 trillion dollars and, finally, when the money coming in wasn’t enough to hide the fact that the banks assets were imaginary, it all exploded.

We have been getting briefings on this massive Wall Street fraud that went critical during the Bush II reign. Cracks in the dam are beginning to show again, their validity evidenced with the tepid mass media coverage, more a systematic coverup than “coverage.”

It seems that mega counterfeiting has been where all the big money was to be made on Wall Street. And of course the phony money, assets, have to be laundered into the the real stuff at some point to cash out, a la Ponzi.  But we have two huge bank fraud stories for you today.

Harry Markopolos is famous for having broken the Madoff scam years before our paid SEC protectors did.

Last week  his anti-fraud group went public on two custodial banks who have been cheating their pension and trust clients on every trade for decades. This routine theft increased their profits by 30% a year.

In the interview Harry stated that he would not be surprised if  that all the other custodial banks had been doing the same as it was considered a bullet proof scam.

What they did is internally book all of their client trades at the end of the day so they could pick the high or low point of the stocks involved and pocket the buy or sell spread for the bank’s account.

Commodity traders also did something similar for many years, using straddles. If you wanted to juice a politician you match him in straddle trades with suckers the new guys brought in and give the winning side to the politician to get $25, 50, 100,000 to them. If you will remember Hillary Clinton had an Arkansas trading account that started with $2000 and went to $100,000. But she was probably just lucky.

Both the Bank of New York Mellon…and State Bank deny the charges but are delaying going to trial. Markopolos says insiders brought him the paperwork to nail them in coffins. The government is primed and ready.

I was surprised to learn that the regulators will not bring criminal charges in these bank fraud cases it would ‘kill the bank’ and wipe out the ‘innocent’ shareholders. The thieves know this of course so they negotiate to buy their way out of it using the banks/stockholders money. This is where the term ‘license to steal’ came from.

On Monday we find Bank of America with a big tummy ache from the toxic derivatives bomb that came from their takeover of Merrill Lynch.

With BoA’s recent credit rating recently downgrades they decided to move $79 trillion in toxic derivatives over to their FDIC insured unit. Bernacke at the Fed seems to be saying ‘Okay’, and the FDIC saying ‘No way Jose!!’

That was just the warm up. Now for the really bad news. Our National debt is at round $15 trillion. It will never be repaid of course. It is a Ponzi scheme now, also.

The real question is whether the interest can actually be paid once interest rates go up a couple of points as inflation cranks up from the money presses running and the economy continues contracting.

Lee Wanta went semi-public years ago. His Reagan era currency trading secret mission that brought down the Soviet economy down netted his companies about $27 trillion in trading profits, which he was planning to give back to the American people, repaying them the costs of the Cold War and theoretically defending the world from communism.

But our Intel sources tell us the banksters moved in, including the Bush family and began looting the accounts. Claims were made that no such sum could possibly exist. Wanta was sent to jail on trumped up state income tax charges of $15,000 when he had accounts with huge amounts under his control. This really happened folks. We have the documents.

Lee received a 22 year sentence for taxes he had paid twice, and this made looting his accounts that much easier. Fortunately, bank surveillance footage still exists of some very high ranking political/government figures going in and out of these respective banks when looting these funds.

Subsequent to a later court case Wanta was awarded $4.3 trillion and the Federal Reserve Bank of Richmond ordered to disburse it to him. But surprise, surprise…they have not.

So it appears that of the money that did not exist, at least this last part does and someone seems to want to steal this also.

By now you might have noticed that mass media has not covered this story. Welcome to the reality of our free press.

Fast forward now to BoA wanting to foist their $70 trillion of toxic derivatives onto the FDIC so any losses would just clean out that fund.

Our banking sources tell us that these derivatives are basically worthless, as mentioned above, legal counterfeit assets. BoA/Merrill, the Bush gang and other Banksters are holding about 500 trillion of this funny money, most of it created during the orgy of Wall Street fraud of the Bush years.

The Obama administration temporarily stopped the ongoing creation of more of these toxic derivatives. Treasury Secretary Tim Geithner was the drive behind protecting the public from more pillaging but has not gotten the credit he deserves for it.

But now Wall Street, with 100% backing from the Republicans is lobbying to go back to the good old days where some new marks can be found to launder the funny money for real.

The only way to save themselves is to have their derivatives government guaranteed, and the last place for them to really rob any real cash from in the FDIC. Are you still with me?

As these derivatives crash and the fund is drained, the premiums that participating FDIC insured banks have to pay would skyrocket even higher. They are so high now many banks have withdrawn from the system, leaving their depositors uninsured. Most are not aware of this, and their Congressman certainly have not told them.

The exodus from these banks has already begun. The game is simple. The banksters are going to pull another ‘too big to fail’ end run again.

With the $500 trillion hanging out there they will  blackmail the government into covering the early losses, say $15 trillion to ‘save the world from financial collapse’, one that they are causing.

That would double the national debt…double the interest having to be paid, and of course crashing the U.S. dollar as it gets converted into toxic money. The only way to ever pay the interest would be through simply printing the money.

Who will win in the end? Simple, everybody holding any non monetary commodity that you simply have to have, food, fuel, etc. They will just keep raising their prices accordingly as the money value goes down. Everyone’s savings, pension funds, and any deferred compensation will be sucked down the black hole. I will let you guess where that will be.

It’s time to break up these big banks folks. We got hustled on the War on Terror. It’s been right here the whole time and our own people have been doing it to us. If the public is going to put trillions on the line we might as well open a new banking system and let the old one go down.The Frankenstein’s need to be put down, wherever they are found.

If the public is going to be on the hook for their huge losses anyway, what do we need banksters for? We know who has all the stolen money and we still have our SEAL teams to go and get it.

The bad guys know that, too, so they have been staffing up their own killers in anticipation of the cookie crumbling. And yes, they have already been at work.

Call your Congressman and chew their butts out. And you Repubs out there, your Congressmen have sold you down the river. They are all with the banksters.

Once they are done squeezing every dime they can get out of us, third worlding us all, then they will eat their ‘losses’ by agreeing to take their remaining funny money assets out of the game, a la ‘sharing the pain’. I will chip in all of my Monopoly money…I promise.

But they will still own just about everything as they will have acquired all of those commodity assets from the losers at fire sale prices.

In Gordon Duff’s earlier piece with the Ziggy Brzezinski video, he mentioned that these secret trillionaires need to be publicly identified, some of whom have not paid any taxes in generations. I think more is needed.

The bad guys want it all folks. And it’s not the Soviets doing a pay back on us for taking them down. It’s the real international gangsters.

And to really put them where they belong and confiscate all their stolen assets, we are going to need an emergency prosecution and judicial system.

Forget thinking that the current one is going to save us. They will save themselves. As Gordon wrote earlier, it’s regime change time. Maybe a New World Order is the answer…but just a different one than they had planned.

Jim W. Dean

Jim W. Dean was an active editor on VT from 2010-2022.  He was involved in operations, development, and writing, plus an active schedule of TV and radio interviews.

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