The Ratings Game: How the Banking Mafia Operates

09/22/201939 Comments

Five years ago in the pages of this very column I examined "The Ratings Game: Rating agencies as weapons of economic warfare." In that article I explained how the major credit rating agencies—Standard & Poor's (S&P), Moody's, and Fitch Ratings—act as adjuncts of the US State Department, targeting Uncle Sam's enemies with strategic credit downgrades at times that best serve Washington's interest.

As I pointed out at the time, the credit rating agencies are the oft-overlooked tools of economic (let alone geopolitical) power. With a wave of their hand they can declare a tranche of toxic Mortgage-Backed Securities sludge to be a AAA prime investment opportunity—thus helping to blow a housing bubble and wreaking havoc in the economy—or downgrade the credit of a foreign treasury on a State Department hit list, hindering its ability to raise funds.

It's now time to return to the topic. But this time, we need to examine how these supposedly "independent" agencies are kept in line by their Washington swamp-dwelling masters. By doing so, we will learn some important lessons about how political (and, ultimately, economic) power is wielded by the global banking mafia.

Learn more about the global banking mafia and how they keep the credit rating agencies in line in this week's edition of The Corbett Report Subscriber. For full access to the subscriber newsletter and to support this website, please become a member.

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  1. zyxzevn says:

    #propagandawatch #climate

    Exposing Junk Climate Science

    U.N. Stuns World on Eve of Largest Climate Events Ever (SuspiscousObservers)

  2. ztaco says:

    Can anyone please explain in more detail about the ‘Open Peer Review Journal’ in the recommended reading? I understand it’s about Thermodynamic Equilibrium and weather balloons, but the website itself is just confusing to a laymen like me. What should I be looking at?

    • mkey says:

      I assume peer review is usually less than “open” since gatekeepers like to camp there and play with the gates so this site is supposed to provide an alternative to those systems. Or it was supposed to, since we can see it’s not very active.

    • manbearpig says:

      Hey Ztaco,

      I’d say start with this

      or this:

  3. cooly says:

    Re: Just for fun,

    Another one I saw was a picture taken somewhere in Asia, the sign for a restaurant. Not the same as the awkward English translations here, but I was reminded of it.

    The place was called Phat Phuk.

    • HomeRemedySupply says:

      I needed that Some gweat stuff!

    • cooly says:

      Something else that’s in the same ballpark-

      A few months ago I got a flyer for a lady running for office in my state. From her picture she looks to have Southeast Asian ancestry. That flyer is on my refrigerator along with a few other things that are definitely keepers.

      Her name is Man Hung.

      • HomeRemedySupply says:

        I would guess that Man Hung is popular with the progressive female voters.

      • mkey says:

        I’m reading that like Man Hung “like a bear”.

      • HomeRemedySupply says:

        I used to date a wonderful gal. I won’t say her first name, but her last name was Screws.
        Engrish is an odd language.

  4. HomeRemedySupply says:

    The Global Financial System is in a precarious situation

    I appreciate Corbett elaborating the 2011 S&P rating with this September 22nd article: The Ratings Game: How the Banking Mafia Operates.
    The deck is stacked, the dice are weighted, the fix is in, the con is on.

    Here is a recent flashback in context to James’ article:

    “Catherine Austin Fitts Explains the Financial Coup D’état”
    QUEUED VIDEO (19 minutes 6 seconds)
    Catherine Austin Fitts: ”…and what you realize is:
    It’s this very mechanism of pumping in secret money into U.S. corporations that has been driving the U.S. Stock Market higher. Now, if I am an institutional investor and I am looking at that, the question is: “How long can the game last?”
    And if you look at what is behind this…treasury market, in terms of credit and credit analysis…we are levitating on a very big bubble….”

    …Then James Corbett teases this out.
    And we learn about the Standard & Poor rating and downgrade of the U.S. Treasury…
    …and what happened to them for speaking out.

    And the “Corbett’s Fables”‘ Moral to this tale:
    Ain’t no conventional establishment Rooster is gonna crow about the U.S. Treasury unless they desire to be a Capon.

  5. HomeRemedySupply says:

    The other day I was reading a Finance article written by Chris Matthews, Market Robot Repeater Reporter at MarketWatch.

    I almost spit out my coffee when I read this paragraph by Matthews:
    “…A central-bank digital currency could work much like the mostly bank-issued digital money Americans use today, with some key differences.
    First, it would be backed by the full faith and credit of the United States government and, therefore, risk-free.
    The local bank that manages your savings account could fail at any time and the dollars in your account (beyond those insured by the FDIC) would disappear. A Fed “e-dollar” would persist as long as the U.S. government does….”

    Excerpt taken from
    Why the coming recession could force the Federal Reserve to swap greenbacks for digital dollars

    • scpat says:

      Ah, a future crisitunity reveals itself. “Oh, we created this financial crisis? Whoops. Looks like we need to make sure it never happens again by issuing Fedcoin.”

  6. HomeRemedySupply says:

    Why this Corbett Report “credit rating” article is so important! –
    Get ready for the Angels falling from the heavens.

    Filmed Nov 14, 2018 – Danielle DiMartino Booth, a former adviser to the president of the Dallas Fed, is the author of “Fed Up: An Insider’s Take on Why the Federal Reserve Is Bad for America”.
    While I personally don’t visit her pulpit often, her animated metaphors and idioms add to the color of her presentation.

    6 minute mark:
    “How did the Fed conceive QE (Quantitative Easing)?” …In fact, inside The Fed, they never called it Quantitative Easing. They called it “Large Scale Asset Purchases”…It started with the United States…but it was as contagious as the clap… …rescuing AIG, 85 billion dollar bailout…by the end of 2017, Quantitative Easing was running at a…rate…as if we were bailing out AIG every single month….”

    28:16 mark:
    “…we don’t find out what unhinged looks like until we see volatility in the bond market. That is where the ‘go-go juice’ is. If you are not following the MOVE index, put it on your radar…it is the credit markets where damage truly can be done…last crisis we had over $170 trillion in debt globally, today we have over $250 trillion in debt. A lot of it is toxic…
    …writing about “Triple B” investment grade bonds…General Electric, I would remind you was a “Triple B” rated company. It’s bonds traded like junk…
    …Where is the parallel?…subprime mortgages circa 2007 peaked out at 2.3 trillion dollars.
    The “Triple B” segment of the investment grade bond market is now 3 trillion dollars. It is larger than every other investment grade rated bond combined…
    …falling angels…because Credit Rating Agencies have actually done something remarkably similar to what they did during the last run-up, the last credit boom. Their analysts have been strong armed by…
    …and who will pay?….

    • HomeRemedySupply says:

      In this clip, Ex-Fed Reserve employee, Danielle DiMartino Booth (see above) gives an anecdote about a CREDIT RATING AGENCY:
      “…I have a friend who recently left a big Credit Rating Agency. She had been in high-yield there for 20 years. And the reason that she decided to retire early was because the pressure placed upon her to retain Triple B ratings on companies was so extreme that she could no longer retain her integrity and stay employed there…
      …so call it 4 1/2 trillion dollars…which is much bigger than what subprime was back in the day….”

      (30 seconds)

      The clip is taken from Jason Burack’s talk about the extreme amount of corporate debt across the boards, along with the weird ways companies handle it. (e.g. share buybacks).
      Corporate Zombie = “a zombie company is an in debted company that is able to repay the interest on its debts but not repay the principal.”(or worse)

  7. Libertydan says:

    Money is the root of all evil, yet it would be very difficult to live without it today. Those who live off the Interest of their Money are said to be sinners (parasites of productive people). So, Biblically speaking, good people should loan to others without expecting interest, and there should be no interest on Money. However, if that were the case, the United States government would not be indebted to the Federal Reserve and thus controlled by it.
    I would also like to point out the misuse of “United States of America” in the following sentence quoted from the article above. “The United States Inc.” (a Corporation) is, in fact, what is being rated by the Rating Agencies. “The United States of America” was a “Union” of free and independent States. It was bankrupted and dissolved in 1933 when FDR declared those “Banking Holidays”.

    “It marked the first (and so far only) time in history that a rating agency downgraded the long-term sovereign credit rating of the United States of America from its perfect AAA rating to an ever-so-slightly-less-than-perfect AA+ rating.”

    I wish we could reestablish a Union of States, and end the Empire that wears no cloths.

    • Richard says:

      The Bible says that the “LOVE of money is the root of all evil”.

      Having lots of money is fine if one does not love it more than one loves God and one’s fellow man.

  8. HomeRemedySupply says:

    A little bit of fun if you want to impress your corporate boss…

    Your Randomly-Generated Corporate Gibberish:

    Taken from the “Coffee Break” YouTube Channel Corporate Jargon – Lying by Obscurity.

  9. HomeRemedySupply says:

    Last night during supper, I popped in a 2010 DVD entitled “Inside Job” and watched about 25 minutes so far.

    Here is a clip about the Ratings Agencies on the run-up to the 2008 crash.
    (2 minutes)

  10. Ukdavec says:

    Latest to cut down on CO2 – beats cannibalism I guess


    Flightpath of the Future of Air Travel from citi

  11. kris38 says:

    Mr. Corbett,

    I apologise for asking my question this way, but since you stated in the instructions that the first comment would be moderated by you here goes. How did Mr. Silverstien get paid on the WTC complex when he was just leasing it? Seems like the Port Authority would have received it. I have sent you this question once before with no response. I know you are busy and I would not ask but I haven’t been able to find any information on this. Thank you again for all that you do. Also hello fellow subscribers my name is Chris.

    • mkey says:

      Hello Chris. I’m assuming who gets payed what depends on the lease contract. But in this case I don’t know the details. Everything about this guys smells like a honey trap. But I’m certain he’s not a major player in this charade.

      • manbearpig says:

        I guess it depends on what the objective is:

        If you just want to cast doubt on the official story then as an element of the obvious controlled demolition of largely unknown WTC7, his “pull it” is superfluously provocative though it in no way neither confirms nor negates that we’re clearly looking at a controlled demolition.

        It would seem that if you want get a new investigation, focusing on the way the buildings went down is practically irrelevant as it’s easier to prove that the first so-called investigation was a charade, especially considering that members carrying out this investigation are the first to say so. (hat tip to Mr Corbett)

        Silverstein could be considered a honeytrap if people focus on this detail rather than

        A: trying to get a bigger picture of the basic fact that a largely uninvestigated mass murder took place or

        B: constructively acting to get a new investigation.

        • mkey says:

          it in no way neither confirms nor negates that we’re clearly looking at a controlled demolition.

          How long would it take to setup a “pull”? I’d posit it would have taken a lot more time than that transpired between the moment the building was (supposedly) damaged to the moment someone said “pull”.

          It would seem that if you want get a new investigation

          I personally don’t want any such thing. The chance of having a second investigation go through in a significantly different manner than the first one transpired, is equal to have three steel frame buildings collapse due to limited office fires in one day in area of several hundred square meters.

          I’d say the entirety of background mechanics that led to 3 buildings destruction on that day is a honey trap. There is one and only one way these buildings were brought down and I posit that we’ll never know. Never. So why even waste time on something that there is no way you can realize nor confirm nor is particularly relevant to the issue at hand?

          If someone shot dead a person you love, would you care about the exact caliber, position of the gun, of the shooter, ambient temperature and relative humidity? Would you care about the color of the gun or any special insignia on it or on the bullet? These matters are only relevant to the extent they can lead you to the perpetrator, everything past that means a waste of resources.

          • manbearpig says:

            You say:

            “How long would it take to setup a “pull”? I’d posit it would have taken a lot more time than that transpired between the moment the building was (supposedly) damaged to the moment someone said “pull”.”

            I say:

            Obviously. But that doesn’t matter in the least if you think “pull it” means the team of firefighters on duty that day, which isn’t at all what I personally think.

            I say:

            I also don’t happen to think another investigation would be of any particular use,

            You say:

            “So why even waste time on something that there is no way you can realize nor confirm nor is particularly relevant to the issue at hand?”

            I say “I couldn’t agree more.”

            Nevertheless it’s important to at least investigate your own perception of what happened and come to your own lonely conclusions.

            lucid and regardless of what may or may not be a “honey trap”…

            Indeed, if someone shot dead a person you love, you would be very interested to know who is, or are, trying to obstruct the investigation of that bloody, sordid and eminently cruel and tragic theft.

    • HomeRemedySupply says:

      If you have not already, be sure to follow the links which James Corbett provides in his epic Episode 308 – 9/11 Trillions: Follow The Money, where he clarifies the timeline of Silverstein Properties and insurance.

      Also, there is a wealth of information at 911blogger.

    • scpat says:

      An interesting point that September 11: The New Pearl Harbor documentary explains is that the WTC buildings were loaded with asbestos that had to be removed, but would have cost $1 billion to remove, the cost to build a new tower. The WTC also apparently had some trouble attracting occupants. It had become a money pit. By signing a new lease with huge insurance coverage, brand new buildings could be constructed after their destruction, and the opportunity to make much more money through companies that payed rent to occupy the buildings. See linked documentary below. It is queued to the section I am talking about.

  12. HomeRemedySupply says:

    For several weeks now, the Repo Market has been in the news.
    It is getting weird.
    Huge sums of money. Double digit billions by the score. (Remember AIG was loaned 85 billion circa 2008)

    Anyway, this doesn’t smell good for what’s to come when dinner is ready.

  13. zyxzevn says:

    I wrote an article about “global warming” at

    It deals with every aspect of the global warming narrative.

  14. generalbottlewasher says:

    Z-man, ” specialists/ experts in climate science know best.”
    ” Similarly: all specialist in astrology confirm that astrology works.”… So specialists in such a fixed state will likely produce errors.”

    Nice article, well constructed and we can learn from comparison and see how lies are maintained .👍

  15. HomeRemedySupply says:

    Regarding $$$$
    For the record…

    September and October 2019

    Ukdavec posts a very informative comment…

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