[CitizensTruth] betrayal of trust

[Hal Snyder]

1. It's not just melamine in food exports.

U.S. Government Finds Thousands Of Counterfeit Electronics From China  
[and other countries] In Avionics Weapon Supply Chain
http://www.manufacturingnews.com/news/08/1117/ 
counterfeitelectronics.html

The United States military and the federal government's national  
security agencies are facing an unprecedented infiltration of  
counterfeit electronic chips, chipsets and components.

2. On the other hand, U.S. banks exported trillions (the total seems  
still unknown) in what amount to bogus securities.

A tsunami of hope or terror?
http://www.businessspectator.com.au/bs.nsf/Article/A-tsunami-of-hope- 
or-terror-LHRJP?OpenDocument&alerts&loc=center

.... a team working within JP Morgan Chase invented credit default  
swaps, which are contractual bets between two parties about whether a  
third party will default on its debt. In 2000 these were made legal,  
and at the same time were prevented from being regulated, by the  
Commodity Futures Modernization Act, which specifies that products  
offered by banking institutions could not be regulated as futures  
contracts.
This bill, by the way, was 11,000 pages long, was never debated by  
Congress and was signed into law by President Clinton a week after it  
was passed. It lies at the root of America’s failure to regulate the  
debt derivatives that are now threatening the global economy...

If the list of defaults – full and partial – gets to nine, then a  
mass transfer of money will take place from unsuspecting investors  
around the world into the banking system. How much? Nobody knows, but  
it’s many trillions...

The distress among those who lose their money will be immense. It  
will be a real loss, not a theoretical paper loss. Cash will be  
transferred from their own bank accounts into the issuing bank, via  
these Cayman Islands special purpose vehicles.

Note: We should be careful about generalizing, especially about  
entire nations. It was George W. Bush, after all, who said, "I don't  
do nuance." That's why I added the clarification in brackets to the  
title of the first article. Also, the bill referred to in the second  
item was the 2000 omnibus budget bill, covering much more than  
futures trading.

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