Voice of the White House

July 12, 2008

Washington, D.C.:
ďIt is interesting to see the media coverage of what is very obviously the collapse of the American banking and credit system. Yes, I said collapse. These things do not happen all at one time, just like a television drama, but start slowly and grow in speed with the passage of time. Fannie Mae an Freddy Mac are slowly sinking into nothing and a number of the major American banks are joining them. The combination of the rigged mortgages and the hedge fund swindles will very soon become evident. The FDIC only works so long and then it will be impossible for the federal government to cover the losses of bank depositors. We donít need to go into the reasons for this collapse but to sum them up, it was greed and self-deception and nothing else. The banks, the credit card industry and others, bought up the fake mortgages, dazzled with the prospect of the huge rise in income on flexible rate mortgages when their terms came due. These millions of mortgages were utterly worthless but our bankers bundled them and sold the off to as many foreign investors as they could find before anyone realized that the mortgage holders were virtually insolvent and could never pay the increases the banks were counting on for their huge profits. Everyone suffers and soon the idle rich will discover that their precious hedge funds are nothing but glorified Ponzi schemes and that like the mortgage holders, they will be left holding an empty bag. This is a critical election year and if these crisis peak before November, there will be hell to pay at the polls. Congress can do nothing and Bush will do nothing so we will have a reprise of 1929-1933 and we can watch the enormous finger-pointing derby begin. My advice? Dump your stocks, clean out your certificates of deposit, max out your credit cards and put all of your cash into gold and silver. Donít trust the gold selling firms that assure you they will keep your gold in their very own wonderful vaults. If you believe that bullshit, you can believe in fried ice cream, kids. Buy easily turned coins or bullion and find a safe place for it and not in the bank safety box. Did you know our very own DHS has the right to go into any safe deposit box anywhere in the United States? And if they are looking for pictures of bin Laden and you have a pile of gold coins loose in the box, guess how many will be left when the agents leave the bank? No, put the gold away somewhere and sit on it. When the banks fold up and other people have lost their deposits, you will be safe. Do it now, not later.Ē