Hat Tip: Brian B.
From: National Inflation Association
On May 23rd, NIA’s President announced that he purchased 150 Moody’s (MCO) November 2011 $35 put options at $1.98 for a total bet of $29,700 that MCO will decline substantially in value over the next six months. This option finished yesterday at $2.40 for a gain of 21% so far in less than one month!
Today there is a story on the front page of the Wall Street Journal that says the Securities and Exchange Commission is weighing civil fraud charges against some credit-rating firms for their role in developing the mortgage-bond deals that helped start the financial crisis. According to the report, the SEC is reviewing the role played by MCO in relation to at least two mortgage-bond deals.
The WSJ claims that SEC officials are focusing on whether the ratings companies committed fraud by failing to do enough research to rate adequately the pools of subprime mortgages and other loans that underpinned the mortgage-bond deals.
Michael Adler, a spokesman for MCO, said: “Although Moody’s is uncertain as to what The Wall Street Journal is referring, we would certainly cooperate with any requests we receive from the SEC.”
As NIA exposed in its critically acclaimed documentary ‘Meltup’, which has been viewed by over 1.1 million people, MCO rated subprime mortgage bonds as AAA that didn’t just decline in value, but went to zero. Today they are rating U.S. treasuries as AAA that NIA believes should be rated junk.
NIA’s co-founders are disgusted by the mainstream media news reports on television that constantly refer to the credit ratings coming from MCO as if they have meaning. We are flabbergasted that the mainstream media is still acting as if MCO is a credible organization. MCO has no credibility left at all. The U.S. is the most indebted nation in world history with a national debt of $14.4 trillion plus unfunded liabilities of $61.6 trillion for total debt obligations of $76 trillion that can’t possibly be paid back without printing the money and creating massive inflation. Our printing press is the only thing that can possibly justify rating U.S. bonds AAA, but using it the slightest bit too much will cause hyperinflation.
Up until now, the U.S. has been successful at exporting most of its inflation to the rest of the world by selling larger amounts of U.S. treasuries each year to China, Japan, and our other foreign lenders. We must now borrow money just to pay the interest on our debts. Interest rates are at record lows due to the Federal Reserve’s very dangerous monetary policies, but this is unsustainable. NIA believes interest rates will soon surge to levels not seen since 1980 and interest payments on the national debt will rise to above $1 trillion annually. This will create record budget deficits, which will lead to more money printing, accelerating price inflation, and a downward spiral in the U.S. dollar.
It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us.