Who Needs the Epstein List When You Have Mortgage Fraud?

It was just one week ago that I made a prediction about the Trump administration’s plans to hijack the Federal Reserve.

I was discussing how a key Fed official had just unexpectedly resigned. And with Powell’s seat coming open next year, I was pointing out how the administration seemed to be building a majority inside the Fed who would be willing to cut rates.

And I speculated that some kind of scandal might emerge to clear the way for more vacancies.

I said:

“You know, to be honest, I wouldn’t be surprised if there were more sudden resignations. It’s politics, it’s a dirty business. Is there going to be some nasty news coming out about some interest rate hawk who likes higher rates, who doesn’t want to print money? They found drugs in his car or whatever. He was on Epstein’s list? They set him up on a hooker sting? I wouldn’t be surprised to see that with some Fed officials who have a firm stance in favor of keeping interest rates high.”

Here’s the video:

Why is this administration so desperate to cut rates? Because debt service is out of control—$1.2 trillion just to pay interest.

And since there’s zero political will to cut spending, the only way out is to cut rates.

That’s why the President has been publicly attacking Powell, pushing the narrative that the central bank is corrupt, incompetent, or both.

But Powell’s term is up next year, and it’s clear Trump plans to replace him with someone who will be compliant with what the White House wants.

Then, just two weeks ago, Fed Governor Adriana Kugler suddenly resigned without explanation. Trump immediately appointed Stephen Miran to replace her—an outspoken Trump economic adviser who’s already gone on record calling for a weaker dollar.

And based on that, I said wouldn’t be surprised if they tried to replace others.

Now, Fed Governor Lisa Cook is facing allegations that she committed mortgage fraud.

Bill Pulte, head of the FHFA (Federal Housing Finance Agency), claims Cook signed mortgage applications for two different homes only two weeks apart, each time declaring the property as her primary residence.

That’s a crime because it can qualify the borrower for lower rates and better terms that are only allowed on one home. In other words, she was allegedly trying to get cheaper loans by lying to the bank.

Trump immediately declared: “Cook must resign, now!!!”

And if Cook does go, that gives Trump yet another seat to fill on the Fed committee that sets interest rates, bringing him closer to a majority willing to cut rates aggressively.

I think they have found their cudgel…

I joked it might be a hooker sting, or someone’s name popping up on Epstein’s list.

Turns out they don’t even need those dirty tricks. They have a paper trail of a mortgage fraud.

Bill Pulte is a hardcore MAGA guy, and as head of the FHFA, he has access to all sorts of— apparently incriminating— information.

I think this administration has realized that just about every politician has probably cut a corner like this at some point. You fudge a line on a form to get a better deal, and no one thinks twice about it. They tell themselves it’s victimless—“the only loser is the bank”—so what’s the harm?

This is what they got Letitia James on.

According to a criminal referral from the FHFA, she allegedly committed mortgage fraud on multiple properties. In 2023 she bought a home in Norfolk, Virginia and claimed it as her primary residence—even though she was serving as New York’s Attorney General, a role that legally requires her to live in New York.

She also allegedly misrepresented a five-unit Brooklyn building as having only four units to qualify for better loan terms. And in older mortgage applications, she bizarrely listed her father as her husband to secure joint ownership benefits.

So we’re talking bank fraud, mail fraud, false statements to a financial institution.

And here’s the kicker—this is exactly what she went after Trump for. Only in his case, the banks testified they weren’t defrauded and actually profited from the loans. With James, the allegations are much more blatant and self-serving.

Talk about poetic justice.

We heard over and over from James and her ilk that “No one is above the law!”

Well mortgage fraud in particular has a pretty obvious and concrete paper trail of evidence. And you can’t go back in time and un-sign the papers you lied on.

Senator Adam Schiff, the former House impeachment manager, is also under investigation, following an FHFA criminal referral alleging he pulled the same trick of declaring multiple “primary residences” to lock in cheaper loans and tax breaks.

If they can prosecute a former president for these crimes, why not go after Senators and Attorney Generals? After all, it wasn’t politically motivated when they went after Trump… Right?

This is how the Trump administration will settle old scores.

And it is how they will clear the Fed board to get their way.

I understand why they want to do that. The government’s debt load is so extreme that it feels like lower rates are the only escape hatch.

But that has consequences.

They’re going to realize pretty quickly that you cannot slash interest rates without also printing a mountain of new money.

But if you can see the writing on the wall—that all of this points to serious inflation—then you can prepare for it now.

We’ve talked about the financial side of that many times— and how certain investments in real assets won’t just allow you to escape the worst, but actually benefit from inflation.

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