Are you ready for this? – Part 1


CALCULATION NO. 182173

CATALOGUE ENTRY IDENTIFICATION NUMBER:         182173

TITLE:       The exploitation of a systemic flaw is fraud, regardless of the gain.

DATE RECORDED:    06 February, 2010

Definitions

Systemic Flaw – An inherent defect (such as an invalid premise, a subjective value in an equation or anything that would otherwise be invalid) in the structure, composition, construction or operation of a system, or any of its components, which inhibits its operation in any way, to any degree.

Exploitation:

  1. use or utilization, especially for profit: the exploitation of newly discovered oil fields.
  2. selfish utilization: He got ahead through the exploitation of his friends.
  3. the combined, often varied, use of public-relations and advertising techniques to promote a person, movie, product, etc.

Also: Taking unfair advantage of something or someone else, in any way, but specifically by withholding information or simply lying. In a more traditional sense, exploitation can be defined as the premeditated application of an element, condition or factor that affects the validity or veracity of a mechanism, given the condition that there is singular and unique ownership of the information withheld and when this results in an unfair advantage with the objective of obtaining financial benefits in large amounts.

Fraud:

  1. deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage.
  2. a particular instance of such deceit or trickery: mail fraud; election frauds.
  3. any deception, trickery, or humbug: That diet book is a fraud and a waste of time.
  4. a person who makes deceitful pretenses; sham; poseur.

Application and ramifications:

There are so many examples of this math in everyday life that an example should not only be unnecessary – it would also be embarrassing.  There is one specific example that is very relevant to right now and therefore must be shared.

In April 2011, The United States Senate Permanent Subcommittee on investigations, committee on Homeland Security and Governmental Affairs; published a report on one of the investigations carried out by a one if the committee’s subcommittees: The Permanent Subcommittee on Investigations.

What is this Subcommittee?

Just the name sounds important, doesn’t it?  It also sounds very much like something one would see in a James Bond movie and it really just does, doesn’t it?  Perhaps not very many people, heck; not very many Americans are familiar with the Senate Committee of Homeland Security and Governmental Affairs.  You can find out everything available about them here: http://hsgac.senate.gov/public/.

This post is not about this committee or its history, but there are a few details that are extremely important to mention in this summary. Here’s a quick list of some of the key distinguishing aspects/features of this very important Congressional Committee:

  1. Elements and functions of the present committee can be traced back to the 19th century; however the specific committee that evolved into this present form was the Committee on Expenditures in the Executive Department, created on April 18, 1921.
  2. The Committee on Expenditures in the Executive Department was renamed the Committee on Government Operations in 1952.
  3. The Committee on Government Operations was reorganized as the Committee on Governmental Affairs in 1977 and functioned as such until February 17, 2005 when it became The Committee on Homeland Security and Governmental Affairs; they’ve been around for a while.

If one were to ask; what have they done? That question would yield an equally impressive answer.  The Committee has five Subcommittees of which one is Permanent, in fact this permanent subcommittee wrote the report that was briefly referred to above but has yet to be named…we’re getting there. The five subcommittees are:

  1. Permanent Subcommittee on Investigations
  2. Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia
  3. Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security
  4. Ad Hoc Subcommittee on Disaster Recovery and Intergovernmental Affairs
  5. Ad Hoc Subcommittee on Contracting Oversight

Here a quick list of some of investigations the Committee as carried out:

  1. Report on the investigation of the McCarthy Hearings (1953-1954).
  2. Report of Credit Card Practices: Unfair Interest Rate Increases.
  3. Government Contractor abuse.
  4. The specific report mentioned in this post, also known as the Levin-Coburn Report (but try to find it under that name!)

The above points and descriptions should provide enough to convey to fact that this is a very important and powerful committee that is charged with some very tough duties. The analysis of the events that most Americans Refer to as “The Wall Street Financial Crisis” had to be the most difficult challenge for this group of Senators and yet, they published a lot of very important information.  It is doubtful that more than a handful of people actually read the 646 page PDF version of the report, but just in case you might be one that handful, you can find the full version of the report here: http://hsgac.senate.gov/public/_files/Financial_Crisis/FinancialCrisisReport.pdf.

Again, I stress the fact that this post is not about this Subcommittee, it’s not even about their published investigations of the “Financial Crisis; it’s about the math whose title appears at the top.  There are several specific sections of the report that contain indispensible information, necessary for clarity of though and which in the most simple and straightforward manner possible indisputably exemplify and justify that the exploitation of a systemic defect is, in fact, fraud.  I’m just going to focus on one little item from the report; just one detail.  It’s on page 243 of the above linked report and it’s called “INFLATED CREIDT RATINGS….:  That is all of the focus I’m going to give it; the report needs no help from me to do what it does so clearly and so well: it proves the math.  So here’s what we’re going to do if you choose as much: Download the report from the link above and read Section V: INFLATED CREDIT RATINGS.  After you read it, do the math, give it everything you have and if you don’t immediately see and understand that the Entire financial infrastructure of the U.S.A., and the world, is only able to function by exploiting the systemic flaws indicated in the Senate report and others and that ever single loan, credit card, mortgage or other loan ever granted to everyone and anyone is an act of FRAUD and therefore illegal and invalid, then read it again because you missed it.

There are so many things that we consider so important, that in fact are not even real:  money is not real, debt is not real credit is not real, buying and hoarding gold and silver in an attempt to salvage wealth is pointless, gold is officially worthless; it’s price is fixed in dollars and dollars have been worthless for more than a while now, it’s technically and factually impossible to borrow money and the use of money to create MORE money for the world’s financial infrastructure is not just what helped get us into the mess we’re in now, it’s also, and more importantly FRAUD.

I think you can do the rest of the math from here.

We can do better, and it would be a good idea to start soon.

Next Post:  Wall Street WordPlay.

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One thought on “Are you ready for this? – Part 1

  1. Wally Wamser says:

    You should participate in a contest for probably the greatest blogs on the web. I’ll suggest this site!

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