The resolve of the American people

One test of the resolve of the American public can go back to West Virginia and DuPont. DuPont had knowingly poisoned the ground and water in West Virginia since 1950, giving cancer to tens of thousands of people. Science has since found that 99% of humans on the planet are now affected by the chemical PFOA and PFOA-C8, better known as Teflon, the DuPont chemical. Through their factories dumping toxic waste into the nearby farmland the ground water, rivers and streams became toxic waste dumps. The DuPont chemical creates 8 different kinds of cancer. The molecule is not water soluble and does not break down in the human body. Or any organic body for that matter. Local people watched their teeth turn black, their kidneys and other internal organs rot and fail. The chemical was put into products that traveled throughout the world. Over time, through the massive distribution of Teflon in numberous products like fabrics, carpet, cooking ware DuPont managed to do massive damage to the entire planet, yet received only a slap on the hand with a $670M penalty in 2015, after a lengthy 15 year litigation. Their stock went UP 1% after the ruling. Then, they merged with DOW to become a bigger conglomerate with more money for lobbyists and to line favorable politician’s pockets.

Today, we have Flint, MI, as another test of our resolve. Nothing seems to change. If we have laws that make corporations “people”, we need to make the “people” liable beyond the depths of their pockets. We need to hold CEO’s and Board members responsible for damages done to the broader public on their watch . Whether this damage is health, environmental or economic we must see real justice handed down to real people who make decisions that destroy lives and our planet with “forever chemicals”.

Another kind of poison to our society is the financial industry. There is a handful of financial institutions that own Washington and its politicians. When it came time to evaluate the damage and possible resolutions to the greed and corruption on Wall Street in the 2008 global economic collapse we found the leaders of the top Wall Street banks meeting privately with the Secretary of the Treasury, Henry Paulson. The top global economists at the time, who were predicting this collapse, were not invited, despite seeing the demise from the outside looking in after the deregulations made by President Clinton in 1994. Now, only those of the very rich, who put the large dollars into the pockets of the their politician friends, were asked to feed at the table of greed and ask for a bailout. They seemed to have come up with their own answers to self regulate. That was to have the American people foot the bill of their corruption. The term “too big to fail” became the mantra of the time. The idea of self regulation failed.

The damage that DuPont did was based on the idea of self regulation. When the EPA was formed in 1970 they asked companies to give the new agency a list of poisonous chemicals that should become regulated. Now, it was feesibly impossible to give a list of ALL chemicals to the EPA in order to regulate so there was a caveat in the law. This was that if the chemical companies knew that a chemical was damaging to people or the environment and that chemical was not on the list of chemicals that the EPA was regulating, it was up to the company to then self regulate their actions to the extent the EPA would have regulated those actions should they have known of this chemical. The idea of self regulation failed.

Self regulation fails with the corporate structure since it is the idea that a corporation is designed for profit above all else. Micheal Douglas has a line in the Oscar winning, Oliver Stone film, “Wall Street”, where he says, “Greed, for lack of a better word, is good.” He continues on to make the point that greed is a clean drive that “captures the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind.”

The upward surge of mankind? History shows that the real measured upward surge of mankind can almost always be traced from its art, philosophy, character and compassion. Would one ask whether the upward surge of mankind could be measured in the actions and atrocities of Hitler, Stalin, Mao or the United States? The greed of power and money has continually shown us that “Power corrupts, and absolute power corrupts absolutely.” This quote from Lord Acton holds true today just as it did in the 1800’s.

Acton took a great interest in the United States, considering its federal structure the perfect guarantor of individual liberties. During the American civil war, his sympathies were with the defence of state’s rights against a centralised government that he believed would, by what he thought to be all historical precedent, inevitably turn tyrannical.

Today we see emperical evidence of the truth to his fears. Over the past decades we have seen our system of government kow-tow to the highest bidder. This evidence can be traced back much farther in the annals of history, but for the United States it certainly became very entrenched in 1913. This was when the richest American, J.P. Morgan, and many of his wealthy foreign and domestic businessmen took control of the American government through the creation of the Federal Reserve. The Fed, as it is known, is a private bank that was able to stronghold then President Woodrow Wilson into signing over the Constitutional right of the country to print its own money to this private banking cartel of a small group of the richest people on the planet. They still maintain this stronghold to date and go on with their business without any relevant oversight to speak of. They have recently reache a point to which their over the counter lending practices between banks in these past few months has surpassed $3T and no one seems to be talking about it.

Henry Paulson was the CEO of Goldman Sachs prior to becoming the Secretary of the Treasury in 2008. I find there to be a huge conflict of interest in this. Goldman Sachs has become the breeding ground for the heads of the Fed and the Treasury creating a very incestuous type of self governance that has failed the country and the global society. The tyranny that Lord Acton was afraid of became manifest.

The tyrants are the unregulated corporations and wealth barons that feed from the famous line of “greed is good”. Self regulation does not work. This has been shown time and time again.

Stanley Milgram, the famed Yale psychologist, began a study in 1961. This study commenced only three months after the testimony of Adolf Eichmann, the Nazi war criminal who went on trial for crimes against humanity, in Jerusalem. Milgram devised his psychological study to answer the popular contemporary question: “Could it be that Eichmann and his million accomplices in the Holocaust were just following orders? Could we call them all accomplices?” Milgram measured the willingness of study participants, men from a diverse range of occupations with varying levels of education, to obey an authority figure who instructed them to perform acts conflicting with their personal conscience. Participants were led to believe that they were assisting an unrelated experiment, in which they had to administer electric shocks to a “learner.” These fake electric shocks gradually increased to levels that would have been fatal had they been real.

The famed musician Peter Gabriel is best known for his work with the British progressive rock band, Genesis. He went on to create a successful solo career which included his 1986 album titled “So”. On this album was a song called “Milgram’s 37”. In part of the Iyric you will hear, “we do what we’re told, told to do.” this title, the reference to “37” came from the number of subjects who administered the maximum shock in one of the experiments – 37 out of 40.

Milgram’s 37 – by Peter Gabriel

We do what we’re told
We do what we’re told
We do what we’re told
Told to do

We do what we’re told
We do what we’re told
We do what we’re told
Told to do

One doubt
One voice
One war
One truth
One dream

Since Milgram the study has been done countless times across the globe to similar results. This study has since shown that nearly 99% of the time a person will follow the directions of the authority figure despite the internal conflict within the follower’s moral character. Therein, the adage that power corrupts.

This study shows us the character of the human specie. That we tend to follow orders. We even go against our own perceived moral character in order to do so. Is this due to fear to go against the norm or perhaps the desire to rise above our station? Or rather, greed. Therein lies the crux. If we as a society self regulate we fail. Every time. We can quickly fall into the hands of the rich and powerful. When we find ourselves “following orders” and “becoming accomplices” to things we would normally find pause against.

We must as a society rise to the call of the DuPont greed and corruption. We must as a society rise to the call of the failure to prosecute the financial juggernauts that destroyed the economy in 2008. The politicians since have simply become accomplices to the greed and power that lies in its wake.

We must hold politicians and corporate executives accountable. The idea in American that money can buy justice needs to come to its end.

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I welcome those reading my blog. I appreciate all of the emails I have been receiving. I also appreciate those who have registered and subscribe to this blog. If you have come from Facebook please comment on this site, rather than any Facebook post of this page due to the fact that there are many readers who are not part of Facebook forums, or even Facebook itself. I encourage all readers to put their comments on this site so that all of the information will be accessible to all readers from all parts of the internet. I urge you to join this site and receive the RSS feed, or bookmarking us, sharing us with your friends on Facebook and Twitter. If you know of anyone who might benefit from this information I urge you to pass on this website address! Share and let’s make some change together!

Thank you for stopping by.

©2014-2019 Doug Boggs All Rights Reserved

Quid Pro Quo

Quid Pro Quo is a term we have all been hearing about lately.  Mostly in reference to the Ukranian/Trump saga of the famed orange one feeling that his hands are larger than he thinks, or rather, he wants the world to know that his is bigger than the President of Ukraine.  So, the “boy” king pushes the sand around the sandbox until he moves the catshit over to some other leader to deal with.

We all seem to be concerned about Russia and their continued involvement into the election process of the United States.  However, we must understand that this kind of action is nothing new to global politics and the United States has pretty much written the book on the subject.  We have been involved in the elections of other countries for years.  The most notable might be the 1953 coup in Iran when we ousted the democratically elected Iranian Prime Minister Mohammed Mossadegh in 1953.  We replaced their government with an authoritarian monarchy that was more favorable to Washington’s interests.  Then, in 1954 we unseated Guatalmala’s left-wing President, Jacobo Arbenz, who seemed to have the conviction to challenge the vast control of the United Fruit Co., a United States Corporation, with agrarian laws that made life much better and fairer to the Guatemalan farmers.  During this time in 1954, a young man named Che Guevara was traveling through Guatemala and was deeply affected by Arbenz’s overthrow.  This action would create the foundation of his conviction for the need for radical revolution.  We could also discuss the removal and assassination of the Congolese leader Patrice Lumumba in 1961.  It was in 1964, when the CIA distributed nearly $4M dollars on 15 different covert action projects and funding certain political parties to prevent then Chilean President Salvador Allende from winning an election in 1964.  Later, as the CIA was exposed in their role in overseas elections and yet couldn’t defeat Allende at the ballot box in 1970, the United States government decided to remove him anyway.  So, Washington helped in the 1973 violent removal of the socialist President Allende, whose government was ended with a coup led by the ruthless and murderous General Augusto Pinochet.

Not withstanding its instigation of coups and alliances with extremists and right-winged juntas that would do America’s bidding abroad, Washington also participated in much more subtle influences of elections in all points relevant to United States interests throughout the planet.  And, we might add, so did Moscow.  “These two powers intervened in 117 elections around the world from 1946-2000, or an average of once in every nine competitive elections” says political scientist Dov Levin.  And we are all well aware that they both continue to do so today.

Peter Kornbluh, currently the director of the National Security Archive Chilean and Cuba Documentation Project, which is affiliated with George Washington University, said in a 1997 interview with the New York Times as to the late 1990’s concerns that China was supplying illicit funds which dominated concerns about Democratic campaign financing, “China has done little more than emulate a long pattern of U.S. manipulation, bribery and covert operations to influence the political trajectory of countless countries around the world.”

When we look at the current state of Bolivia and their most recent elections we might not need to look to far to find the hands of the United States, Russia and China involved in some ways to the political unrest there.  Bolivia holds over 9 million tons of lithium, which is the highest in the world per individual country and is 22% of the world’s total lithium deposits.  Both Chile and Argentina, hold 18% and 16% respectively.  We shouldn’t leave out the lithium deposits in Afghanistan which appear to be valued at over $1 trillion dollars.  This was once noted in the early 2000’s as the mother lode of lithium and was quoted in a Pentagon memo that “Afghanistan could become the Saudi Arabia of lithium .”  However, all eyes are now turning to Boliva.

The leftist Morales government of Boliva made a move on November 4, 2019 to cancel the December 2018 agreement with a German firm ACI Systems Alemania for developing lithium for batteries like those in electric cars.  This move by the just resigned Evo Morales came following weeks of protests throughout Bolivia with protesters chanting “Bolivia’s lithium deposits belong to the Bolivian people. Down with the multinational corporate cabals!”  ACI System Alemania provides batteries to Tesla, among other clients.  Telsa’s stock rose on Monday, November 11, 2019, after the weekend.

Morales has been working to create a publicly-owned lithium industry to help diversify his country’s economy and raise more of its people out of poverty.  His canceling of the contract with the German firm was over concerns that not enough of the financial benefit would be reaching the indigenous people who live near the untapped Salar de Uyuni salt flats, located high in the Andes mountains, which are home to the worlds largest known lithium reserves.  It was only days after the re-election of Morales, who beat his right-wing opponent and former President Carlos Mesa by over 10 points, back in October when the right-wing demonstrations began.  The vocal and impoverished protesters supporting Morales gained ground eventually urging the military to make a move and demand that the leader leave office in order to “maintain stability”.  The actions of the military and the coup was received with approval from the Trump administration and the Trudeau government of Canada.  This only exposes the delicate task it is for any small country that is rich in resources that tries to move themselves forward to help their poor and working class over the needs and demands of the rich, corporations and the corporate imperialist states.  Make note that Russia and China still hold contracts with Bolivia at this time.

The following video is Bolivian President Evo Morales delivering a scathing address directly to President Trump at the UN in Feb. 2019 regarding the political promises and practices of the United States and its relation to countries such as Bolivia.

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I welcome those reading my blog. I appreciate all of the emails I have been receiving. I also appreciate those who have registered and subscribe to this blog. If you have come from Facebook please comment on this site, rather than any Facebook post of this page due to the fact that there are many readers who are not part of Facebook forums, or even Facebook itself. I encourage all readers to put their comments on this site so that all of the information will be accessible to all readers from all parts of the internet. I urge you to join this site and receive the RSS feed, or bookmarking us, sharing us with your friends on Facebook and Twitter. If you know of anyone who might benefit from this information I urge you to pass on this website address! Share and let’s make some change together!

Thank you for stopping by.

©2014-2019 Doug Boggs All Rights Reserved

Is the New York Fed’s massive loan program to Wall Street even legal?

It’s long past the time for the U.S. Congress to ask the overarching question: is the New York Fed’s massive loan program to Wall Street firms even legal? And was it legal from 2007 to 2010 during the financial collapse on Wall Street?

The Federal Reserve system was created in 1913 with a Discount Window that was to be the lender-of-last resort to deposit-taking banks to prevent panics and bank runs from bringing down the U.S. banking system. To this day, only deposit-taking institutions are allowed to borrow at the Fed’s Discount Window .

The core function of deposit-taking banks throughout U.S. history has been to use those deposits to lend to worthy businesses that can help grow the U.S. economy, keep America competitive, and bring good paying jobs to the American people.

Never in its history has the Federal Reserve, the U.S. central bank, been authorized to function as the lender of last resort to Wall Street stock trading firms. Those firms are supposed to be part of a free and efficient market system where those that take on undue risks trading stocks, bonds and derivatives are allowed to fail if their gambles go south. But during the financial crisis of 2007 and 2008, the Federal Reserve set up loan programs specifically designed to bail out the bad bets of securities firms on Wall Street. The Fed’s current loan program appears to be doing the exact same thing.

Below is a list of the 24 Wall Street firms (known as primary dealers) that are exclusively eligible to receive the hundreds of billions of dollars in overnight and longer term loans from the Fed via its regional bank known as the Federal Reserve Bank of New York (New York Fed). This loan program began abruptly on September 17 of this year.

Federal Reserve’s 24 Primary Dealers as of October 7, 2019 (Source — Federal Reserve Bank of New York)

Federal Reserve’s 24 Primary Dealers (Source: Federal Reserve Bank of New York)
Of the 24 firms, only one has the word “bank” in its name. That’s the U.S. branch of the Bank of Nova Scotia. Eleven of the firms have the word “Securities” in their name and are listed at Wall Street’s self-regulator, FINRA, as broker dealers – meaning their primary activity is selling securities (stocks, bonds, etc.) for their customers or their own account. The rest are investment banks that underwrite security offerings and have trading desks – again, not deposit taking banks. (Some, of course, are units of so-called universal banks, which thanks to the repeal of the Glass-Steagall Act in 1999, are allowed to own federally-insured commercial banks as well as all the high-risk stock trading businesses.)

Among the list of 24 firms are Citigroup Global Markets and Morgan Stanley. Both of these are investment banks and ranked number 1 and number 2 on the New York Fed’s insidious bailout program during the financial crisis known as the Primary Dealer Credit Facility. (See chart below.) Citigroup Global Markets borrowed a mind-numbing $2.02 trillion in revolving loans from that program while Morgan Stanley borrowed $1.9 trillion of the total $8.95 trillion that was funneled to Wall Street securities firms. The PDCF loan facility lasted from March 16, 2008 to February 1, 2010 – a very long time for what the Fed characterized as an “emergency” action.

According to the Government Accountability Office’s audit of the Federal Reserve’s lending programs during the financial crisis, the PDCF worked like this:

“On March 16, 2008, the Federal Reserve Board announced the creation of PDCF to provide overnight collateralized cash loans to the primary dealers. FRBNY [Federal Reserve Bank of New York] quickly implemented PDCF by leveraging its existing legal and operational infrastructure for its existing repurchase agreement relationships with the primary dealers… Eligible PDCF collateral initially included collateral eligible for open-market operations as well as investment-grade corporate securities, municipal securities, and asset-backed securities, including mortgage-backed securities.”

But six months after PDCF began, Wall Street had run out of good collateral but still needed trillions of dollars in revolving loans. So the New York Fed started accepting dodgy collateral. The GAO report tells us this:

“On September 14, 2008, shortly before Lehman Brothers announced it would file for bankruptcy, the Federal Reserve Board announced changes to TSLF and PDCF to provide expanded liquidity support to primary dealers. Specifically, the Federal Reserve Board announced that TSLF-eligible collateral would be expanded to include all investment-grade debt securities and PDCF-eligible collateral would be expanded to include all securities eligible to be pledged in the tri-party repurchase agreements system, including noninvestment grade securities and equities.”

In other words, at a time when the stock market was in a state of freefall, the New York Fed was accepting “equities” (stocks) as collateral and “noninvestment grade securities,” a polite term for junk bonds: All being done to bail out Wall Street’s investment banks and stock-trading broker dealers – a job which has never been part of its mission.

One has to wonder just how long it will be before the New York Fed, openly or secretly again, starts to accept dodgy collateral from Wall Street for its loans.

It’s not a comforting thought that just one year ago we were reporting on the voices advocating for the Federal Reserve to be allowed to buy up stocks during the next Wall Street crisis of its own making.  (See The Chorus Grows for the Fed to Buy Up Stocks in the Next Wall Street Crisis)  

 

 

 

 

GAO Data on Emergency Lending Programs During Financial Crisis
Note: The GAO data excludes some Fed programs. For the full tally of $29 trillion, see the report from the Levy Economics Institute.

Originally published by wallstreetonparade.com ~ By Pam Martens and Russ Martens: October 11, 2019

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I welcome those reading my blog. I appreciate all of the emails I have been receiving. I also appreciate those who have registered and subscribe to this blog. If you have come from Facebook please comment on this site, rather than any Facebook post of this page due to the fact that there are many readers who are not part of Facebook forums, or even Facebook itself. I encourage all readers to put their comments on this site so that all of the information will be accessible to all readers from all parts of the internet. I urge you to join this site and receive the RSS feed, or bookmarking us, sharing us with your friends on Facebook and Twitter. If you know of anyone who might benefit from this information I urge you to pass on this website address! Share and let’s make some change together!

Thank you for stopping by.

©2014-2019 Doug Boggs All Rights Reserved

The institutional manufacturing of the foreclosure process

October 21, 2019. By Douglas Boggs

The institutional manufacturing of the foreclosure process begins with the servicer advising the borrower to stop payments to make sure it puts them in a better position for a modification. So, the servicer advises a homeowner to fall behind on their payments in order to qualify, if they wish to obtain any government sponsored relief. The distressed homeowner does as advised and falls behind in order to qualify for the government sponsored mortgage relief program and is subsequently placed in default. This is textbook and this common process has happened to millions of people across the United States.

The Servicer immediately cashes a credit default swap for some percentage of the mortgage balance and has some split with the investor. Now, make a note that the investor’s are those who invest in mortgage backed securities(MBS) and hedge funds that untilize MBS’s as investment vehicles. They are the owners of the note once the note is securitized. Also note, that if they are the owners of the note, this means that the chances that the foreclosing party holds a near 90% chance that they hold absolutely NO right to foreclose. But, this is a differentt story for later and some of which I have previously posted herein this blog. Ok, moving on now, then the servicer would send 10 or 15 sets of mortgage modification applications to the homeowner and collect payments of $300 each under their HAMP servicing agreement with the fed.

Following this, they offer a trial modification to the homeowner and promise that it will convert to a permanent modification if the homeowner makes all of their payments on time. The bank loses the paperwork 3 or 4 times and charges the fed each time they process a new application and charges the fed again for sending the 3 new applicatons to the homeowner.

The homeowner is approved for the temporary modification and starts paying the narrowly reduced payments while the servicer dual tracks the homeowner for foreclosure and hires LPS, the parent company to LSI Title to file some fraudulent assignments in the name of the deceased bank the servicer bought the servicing rights from (countrywide, world savings, indymac, whoever) .

The servicer shoplifts the temporary payments while the homeowner thinks they are going to the mortgage-backed-security(MBS) towards P&I thus putting the homeowner further behind, allthewhile fucking their own MBS investor. The servicer gets paid a fee by the fed for servicing the temporary mod under their HAMP servicing agreement. The servicer denies the modification and forecloses on the property and collects a fee from the investor for servicing the foreclosure and collects an 80% FDIC loss share payment from the FDIC which it splits with the investor.

The house is sold, usually to a company that buys foreclosure properties in bulk for less than their retail value which is done to manipulate the real estate market, and the investor recovers the REO value less the banks REO sale fee.  The company that buys the foreclosed property works with the servicers in order to manipulate the market as a whole. In my case, I found a corporate maze of over a dozen corporations tied to two individuals that use this process to hide assets. The judge was privy to this and quite friendly to the party in question. Perhaps on the take, or perhaps they play golf. However, well versed with each other.

The Non Judicial foreclosure process is a fast food style of law where the Unlawful Detainers get stream lined and rubber stamped by the Judges because the Judges are making a profit on each property in the process as a percentage to look away.

The only reason any of this could take place is due to the fact that the Legislation changed the Servicing powers and the ability to transfer the trusteeship of the Deed of Trust. The Registrars and everyone else mistook this legislation to mean that the Trustee can be reassigned by the Beneficiary or Servicer and possess the rights of the primary Trustee named on the Deed of Trust that was originally signed by all of the parties.

The illegal government rubber-stamped dismantling of the middle class. How can you ever stop a ruling class from doing something that is this lucrative???

So, to do a short recap. There are branches of the Wall Street financial institutions that are manipulating the mortgage back security markets, collateralized debt obligation markets, paying off the Security rating agencies. The government is complicit in the manipulation of the real estate markets, the modification programs, the rating agencies, the Security and Exchange Commission, and the FDIC. The Wall Street financial institution then work the other side of the con with the large foreclosure firms that are in bed with the judicial system. The back door payments to the judges, or as the padding of their retirement pension funds through the financial institutions, the justice system looks the other way. All of this happens when a borrower signs for a mortgage loan. Despite the fact that the financial institution is not even actually lending any money to the borrower, but simply manipulating the monetary process in its spreadsheet.

Little does the homeowner know that their signature also allows the trustee, who is partners with the financial institutions, to be able to steal their home any time, any day, no matter what. You think your home can’t be taken even if you are current on your mortgage payments, you a gravely mistaken. If you think your home can’t be taken from you even if you paid CASH, you are gravely mistaken. This is done through the systemic unregulated fraud that the financial institutions and the government are fully cognizent of and are complicit in order to work at such a massive systemic level. The legislation allowed this illegality to transpire, despite the settled (1978) CA Supreme Court decision that the trustee is to be independent of the transaction between the borrower and the lender. So, the government complicity is paramount from legislative to justice.

The fallout is not simply the defrauded homeowner. The economic fallout are the hundreds of millions of dollars that the County Registrars across the nation are defrauded from through the creation of MERS. The bailouts for the financial institutions will continue, plus they write off the legal penalties for the taxpayer cover. The tax payer feels a bit better when the banks are penalized for millions, only to find it hidden in the “make America great again” tax overhaul for the wealthy. Steve Mnuchin was previously a foreclosure king if you didn’t recall.

Nothing has changed. It all has become more streamlined from Wall Street, through the White House, onto the floor of the house, and “trickling down” into the Main Street U.S.A.’s across the country. The writing is on the walls of justice that the world is still turning the way the system was designed to do, as the Trump administration and the Supreme Court is looking into the constitutionality of the Consumer Finance Protection Bureau.

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I welcome those reading my blog. I appreciate all of the emails I have been receiving. I also appreciate those who have registered and subscribe to this blog. If you have come from Facebook please comment on this site, rather than any Facebook post of this page due to the fact that there are many readers who are not part of Facebook forums, or even Facebook itself. I encourage all readers to put their comments on this site so that all of the information will be accessible to all readers from all parts of the internet. I urge you to join this site and receive the RSS feed, or bookmarking us, sharing us with your friends on Facebook and Twitter. If you know of anyone who might benefit from this information I urge you to pass on this website address! Share and let’s make some change together!

Thank you for stopping by.

©2014-2019 Doug Boggs All Rights Reserved