- 16:46 13/02/10
- Markit è un sito posseduto da alcune banche che registra quello che dette banche riportano su CDS che loro e solo loro trattano in modo opaco e non regolamentato, tipo delle scritture private
vedi qui ad esempio la storia del nostro Paolo Pellegrini e John Paulson and the Greatest Pump and Short Fraud Ever sui CDO dei mutui suprime che da un idea di come funziona
Paolo Pellegrini e John Paulson sono andati dalle Goldman, Deutsche, Morgan e hanno detto: "...vogliamo che ci create un derivato sull'indice dei mutui e ci mettiamo dentro però alcune centinaia di mutui che vi diciamo noi, prendiamo i più assurdi e marci, quelli fatti a immigrati e neri che non restituiranno mai, ma li misceliamo con altri in modo che il rating rimanga buono
...Poi voi a Morgan e Goldman e Deutsche andate da AIG e create assieme a loro che sono un assicurazione, un "assicurazione sui mutui" un Credit Default Swap su questo "Indice dei Mutui Marci e Senza Speranza fatti a Messicani, Hiatiani e Negri" (ma con un nome magari più rassicurante, tipo "High Yield Asset Backed Securities...")
....Avrai tante istituzioni che lo comprano, paga un 7%, ha un rating ancora discreto e ci compri un assicurazione sopra per sicurezza per voi lo emettete forse a 100, lo vendete ai vostri clienti a 100 e noi lo vendiamo simultaneamente subito short per 20 miliardi a 100.
....Sappiamo che crollerà a 50 centesimi, se va bene, noi quindi andiamo short un derivato che abbiamo costruito apposta assieme a voi sapendo che dentro è marcio e perderà il 50% facciamo miliardi, voi ci guadagnate un 2% sul controvalore della transazione che sono decine miliardi di controvalore e verso i vostri clienti direte che era difficile prevedere che il valore delle case possa scendere ecc..., AIG guadagna anche lei una commissione, ...e le istituzioni che se lo comprano fidandosi che è Citi, Morgan e Goldman che assime ad AIG e con il rating di Moody dicono che è assicurato... beh...
“Paulson and [partner Paolo Pellegrini] were eager to find ways to expand their wager against risky mortgages. Accumulating it in the market sometimes proved to be a slow process. So they made appointments with bankers at Bear Stearns, Deutsche Bank (NYSE:DB), Goldman Sachs (NYSE:GS), and other banks to ask if they would create CDOs that Paulson & Co. could essentially bet against.” As Fiderer explains, Paulson asked the banks to create those CDOs “so that they could be sold to some suckers at close to par. That way, Paulson’s hedge fund could approach some other sucker who would sell an insurance policy, or credit default swap, on the newly minted CDOs. Bear, Deutsche and Goldman knew perfectly well what Paulson’s motivation was. He made no secret of his belief that the CDOs subordinate claims on the mortgage collateral were close to worthless. By the time others have figured out the fatal flaws in these securities which had been ignored by the rating agencies, Paulson could collect up to $5 billion.. “Paulson not only initiated these transactions, he also specified the terms he wanted, identifying which mortgages would be stuffed into the CDOs, and how the CDOs should be structured. Within the overall framework set by Paulson’s team, banks and investors were allowed to do some minor tweakin.” It is not clear which banks ultimately participated in Paulson’s scam, but Fiderer quotes Bear Stearns trader Scott Eichel as saying that his bank refused. “It didn’t pass the ethics standards;” Eichel said, “it was a reputation issue and it didn’t pass our moral compass^. We didn’t think we could sell deals that someone was shorting on the other side.” Bear Stearns’ moral compass was usually pointed towards the darker regions, but perhaps this is why Paulson subsequently became one of the more eager short sellers of Bear Stearns’ stock. Fiderer continues: “Prior to 2006, there were not many opportunities for naked short selling on subprime securitizations. But in January of that year, investment banks launched a new product, which enabled Paulson to place those bets on a large scale. The ABX index, a sort of Dow Jones Average of subprime mortgage securities, facilitated benchmarking the price of credit default swaps.” In fact, it was a black box company called the Markit Group that created the ABX index. The banks were minor shareholders in Markit Group and provided data. I have noted in a previous blog that the Markit Group is a dubious outfit to say the least, and there is good reason to suspect that the direction of the ABX index was influenced by hedge fund managers and their allies at the big banks. I do not have evidence that Paulson was one of those hedge funds, but authorities ought to be asking questions. Fiderer goes on to suggest that bad loans to homeowners were a significant cause of the financial crisis. On this front, I disagree with him. Certainly, some mortgage lenders were unscrupulous, and there was a certain amount of predatory lending, but the conventional wisdom that this is what crashed the economy is simply false. At the time that the mortgage securities markets began to go south in 2007, defaults on subprime loans had increased only slightly month-to-month, and were in fact considerably lower than in earlier years. In the second quarter of 2007, for example, only 7.7 percent of subprime loans were 30 days past due, slightly up from 6.76 percent in the second quarter of 2006, but considerably lower than the 9.9 percent in the second quarter of 2001. The problem lied not in the loans themselves, but in the fact that the loans had been packaged (apparently, to a large extent, at the behest of John Paulson and perhaps other bearish billionaires) into fraudulent securities that were traded and probably manipulated by a select number of hedge funds and large banks. In a somewhat similar scheme, hedge funds often pump up the stock of public companies before initiating short selling attacks aimed at demolishing those same companies. The economy was brought to its knees by a few powerful and eminently dirty players on Wall Street, not by poor people who had the temerity to buy themselves houses.
Il più Grade Trade della Storia
Situazione pianificata
De Corato: «Siamo al Far-West Gli immigrati a Milano sono troppi»
«Via Padova, la via più multietnica di Milano, testimonia che è difficile governare l'immigrazione»
MILANO - «Credo che il migliore termine per rappresentare la situazione che si è determinata in via Padova sabato sera è quella di Far West tra bande di nordafricani e sudamericani. Il conto però lo pagano i milanesi: auto distrutte, vetrine dei negozi distrutti, decine di uomini della polizia di stato impegnati da quasi due ore». Lo ha affermato, all'Ansa, il vicesindaco di Milano, Riccardo De Corato. «Questo accoltellamento testimonia che i numeri dell'immigrazione quando sono troppo alti è difficile governarli - ha proseguito l'esponente politico- . È evidente che per Milano, che ha duecentomila extracomunitari regolari e 40 mila clandestini, è un numero enorme. Il 15,4% della popolazione milanese è fatta di extracomunitari e via Padova, che è la via più multietnica di Milano, testimonia che con questi numeri è difficile governare l'immigrazione. E non si dica che Milano è una città chiusa. Gli incidenti di questa sera dicono in maniera chiara che l'integrazione la si può fare solo con numeri accettabili altrimenti si crea razzismo tra le stesse comunità di stranieri, come accade stasera tra nordafricani e sudamericani». 
Il vicesindaco Riccardo De Corato (Fotogramma)
LE CIFRE - «Le liti tra extracomunitari sono all'ordine del giorno - ha sostenuto De Corato - nei primi sei mesi del 2009 erano stati 84 gli stranieri coinvolti e 23 le denunce». «Ringrazio - ha concluso - il questore e le forze dell' ordine che hanno fatto fronte a una situazione difficile e complessa. Mi auguro che questo segnale lo capiscano tutte le istituzione, è un allarme che ci deve far riflettere e mettere in atto da parte delle forze dell'ordine interventi tempestivi. Altrimenti rischieremo di andare verso situazioni come le periferie francesi a cui non voglio nemmeno pensare».
PENATI - Filippo Penati, capo della segreteria politica di Pier Luigi Bersani e candidato del Pd a governatore della Lombardia critica le parole di De Corato. «Sono 15 anni che De Corato e la destra governano la città di Milano - afferma Penati - e l'unica cosa che ha da dire, di fronte ai tragici fatti accaduti oggi in Via Padova, è che Milano è il Far West e che le risse sono all'ordine del giorno». Per Penati, «non è accettabile che quando governa il centrosinistra il problema dell'ordine pubblico è colpa del governo, mentre quando il centrodestra governa, sia a livello locale che nazionale, non si sentono investiti da nessuna responsabilità. Senza contare che nessuno dei provvedimenti che sono stati annunciati e proclamati hanno sortito il minimo effetto. Siamo sicuri che De Corato non si dimetterà, ma almeno abbia il pudore di stare zitto».
SALVINI, ESPULSIONI CASA PER CASA - L'eurodeputato della Lega Nord Matteo Salvini ha invocato il pugno duro contro gli immigrati, sollecitando espulsioni a tappeto. «Ho già segnalato al ministro Maroni questa situazione di emergenza - ha detto Matteo Salvini - occorrono controlli ed espulsioni casa per casa, piano per piano». Salvini, che siede anche in Consiglio comunale di Milano, ha già rivolto al sindaco Letizia Moratti la richiesta di una seduta straordinaria dell'assemblea cittadina da convocare proprio in via Padova. Il Carroccio, intanto, ha già organizzato per venerdì prossimo una manifestazione con i comitati e i cittadini nei luoghi degli scontri. (ANSA)
Redazione online 13 febbraio 2010
Caso Bertolaso
Chi vuole può tranquillamente mettersi a discutere su “Bertolaso vittima” o “Bertolaso figlio di mignotta”.
Può discutere se Francesca fosse una vera massaggiatrice, oppure una prostituta d'alto bordo. Può discutere se la "festa per Bertolaso” fosse un’orgia di sesso droga e rock-and-roll, oppure un semplice picnic di campagna. Può discutere se il bubbone sia scoppiato casualmente, oppure se sia stato voluto politicamente.
Forza, fatevi avanti, ce n'è per tutti.
Finché discute di tutte queste cose, infatti, il cittadino non può fare del male a nessuno, poiché non è quello il vero problema, come al solito.
Il vero problema è che ci si scandalizzi quando si viene a sapere degli appalti controllati, quando tutti sappiamo benissimo che questo accade sempre, comunque, ogni santo giorno che il Signore manda in terra.
Ponzi Scheme
Puru Saxena 
Source: Treasury Direct 
Source: Stockcharts
Let’s face it, the government-bond market in the West is a gigantic Ponzi scheme. Most governments in the ‘developed’ world are drowning in debt, they are running mind-boggling budget deficits and printing money like there is no tomorrow. Furthermore, under the guise of quantitative easing, their central banks are buying their own newly issued debt!
It is our contention that similar to Mr. Madoff’s hedge fund, the sovereign debt markets in the West have now become gigantic scams. Only this time around, the players have changed and the sums involved are significantly larger.
Figure 1 highlights the incredible expansion in America’s national debt. It is noteworthy that at the turn of the millennium, America’s national debt was less than half of its current value. Put simply, American policymakers have taken on more debt over the past decade than they have over the last one hundred years!
What is more astonishing is the fact that America is funding a large portion of its newly issued debt by direct purchases from the Federal Reserve. In other words, as private-sector demand for US Treasuries wanes, Mr. Bernanke is creating new money so that Mr. Obama’s government can bail out insolvent financial institutions. Strangely, the American establishment is quite content to pledge the economic fate of its future generations in order to protect the bondholders of dubious ‘too big to fail’ corporations. Hmm, talk about change…
Figure 1: Is America a gigantic Ponzi scheme?
Apart from the world’s largest economy, various other nations in the ‘developed’ world are also following such misguided policies. For instance, UK’s national debt is exploding and is forecast to reach GBP1.1 trillion by 2011. At present, its national debt is worth GBP891 billion and this equates to GBP14,304 for every man, woman and child in the United Kingdom!
Elsewhere in Europe, the situation is equally dire in nations such as Ireland, Spain, Greece and Italy. Furthermore, various countries in Eastern Europe are on the verge of economic doom.
Given the precarious state of so many economies in the West, we are amazed that the respective government bond markets have not fallen apart at the seams. Perhaps, they are all heading down Japan’s route, where national debt is now above 170% of GDP, yet the yield on Japanese government debt is pathetic. But then again, perhaps they are not…
In our view, in the not too distant future, the interest payments on the outstanding national debts in the overstretched ‘developed’ nations will become so large that their central banks will need to create money just to keep the Ponzi schemes going. When that happens, the game will be up and we will probably experience a total breakdown of the fiat-money experiment. At this stage, we do not know when the day of reckoning will arrive but we do know that all Ponzi schemes ultimately collapse under their own weight and this one will be no different.
Given the shocking debt overhang in the West and the threat of surging inflation later this decade, we cannot understand why anybody would want to lend money to bankrupt governments!? In the worst case scenario, these naïve bondholders risk losing their entire capital and the best outcome involves a significant loss of purchasing power due to inflation. Accordingly, we are not investing in sovereign debt and we suggest that you refrain from lending money to dubious governments.
Finally, although we are pessimistic about the long-term prospects of government debt, we are aware of the possibility of a near-term rally; especially if there is another round of risk aversion in the financial markets. So, if we do get another deflationary scare and bond prices rally, holders of government debt are best advised to liquidate their positions.
Furthermore, if our world-view is correct, extremely high inflation is now inevitable. As long as the monetary velocity in the US is weak, inflationary expectations will remain subdued, but once the economic activity picks up, the world will experience spiralling inflation. When that occurs, hard assets will protect the purchasing power of your savings. Accordingly, we have allocated a large portion of our clients’ capital to energy (upstream companies, oil services plays and alternative energy plays), precious metals miners and diversified base metals miners.
At the time of writing, precious metals are at a critical juncture and the price of gold is trading above an important support level.
Figure 2 shows that the price of gold peaked at US$1,075 in October 2009 and that level is now acting as important support. Now, if the bull-market’s trend consistency is intact, then the price of gold must rally immediately and challenge its December high. At the very least, the price of gold must hold above US$1,075 per ounce. So, will gold manage to stay above this critical support level?
Before we attempt to answer this question, we must confess that short-term forecasting is extremely difficult and we really do not know what will happen over the following days. However, what we do know is that the macro-economic environment has never been better for the yellow metal. After all, mined supply is in decline, investment demand is rising, the public sector has become a net buyer of gold and hatred towards paper currencies is on the rise. Under these circumstances, we expect gold to perform very well. However, you must remember that the American currency is in rally mode and this is exerting downward pressure on all metals.
Now, if we were forced to take a stand at gunpoint, we would say that the odds of a rally in gold are 65/35. Accordingly, we are holding on to our positions in precious metals mining stocks and may consider lightening up during spring (which is when precious metals usually make an intermediate-term peak).
Figure 2: Gold at an important juncture
Now, if gold does the unexpected and breaks below US$1,075 per ounce, then we envisage a deeper correction to the US$1,000 per ounce level. Even if that happens, we will continue to hold on to our positions in gold mining companies, which have already depreciated in the ongoing stock-market correction.
Short-term setbacks notwithstanding, we continue to believe that hard assets are in a secular bull-market, which will probably end in a gigantic mania. According to our guesstimate, the bull-market will end in the latter half of this decade; at a time, when inflationary expectations are spiralling out of control.
Make no mistake, the policy actions of the past 18 months are extremely inflationary and once the American economy stabilises, we will experience a significant increase in the general price level. And before this is all over, government bonds will (once again) be recognised as ‘certificates of confiscation’.
Puru Saxena email: puru@purusaxena.com
Puru Saxena publishes Money Matters, a monthly economic report, which highlights extraordinary investment opportunities in all major markets. In addition to the monthly report, subscribers also receive "Weekly Updates" covering the recent market action. Money Matters is available by subscription from www.purusaxena.com.
Puru Saxena is the founder of Puru Saxena Wealth Management, his Hong Kong based firm which manages investment portfolios for individuals and corporate clients. He is a highly showcased investment manager and a regular guest on CNN, BBC World, CNBC, Bloomberg, NDTV and various radio programs.
Gain from The Looming Armageddon
by DeepCaster LLC,
"China has ordered managers of its vast currency reserves to withdraw from risky dollar assets and retreat to core debt guaranteed by the US government, a clear sign that Beijing is battening down the hatches for fresh trouble on global markets...
BNP Paribas said the move has major implications for global risk assets. 'The message from Beijing is that we don't like this environment,' said Hans Redeker, the bank's currency chief.
When the world's biggest investor turns risk-averse, that is something you take notice of...”
"China orders retreat from risky assets”. Ambrose Evans-Pritchard, Telegraph.co.uk, 2/10/10
Indeed! Investors and Traders should take note! China's Funds Managers are very savvy. The Chief Investment Officer, Mr. Zhu, was until recently head of hedge fund operations for U.S. financial giant PIMCO.
As well, China just increased bank reserve requirements resulting in a worldwide tumble in Equities Markets. The Powerful Chinese Dragon is sending a clear signal: if The West does not cut back on its borrowing and spending binge, The Dragon will push them to do it.
Thus, we have yet more evidence that Deepcaster (and a few others) continue to document, that shows it is likely that we can expect further Disasters in the Economy and Markets – Disasters beginning in 2010. (See e.g. "The Coming Cataclysm” (1/29/10) in the 'Articles by Deepcaster' cache at www.deepcaster.com.) And also there is The Greece Syndrome, likely extending to Spain, Portugal, Italy...and...the UK...and eventually the U.S.A?!
Thus our focus here is to lay out key Guidelines designed to help Investors Protect and Profit from The Coming Armageddon.
Essential background for these Guidelines is provided by former CFTC Chairman Brooksley Born's observation that The President's Working Group on Financial Markets (also The Plunge Protection Team) was "vehemently opposed” to Regulations which would have prevented the 2008 Financial Crises.
"'We didn't truly know the dangers of the market, because it was a dark market,' says Brooksley Born, the head of an obscure federal regulatory agency -- the Commodity Futures Trading Commission (CFTC) -- who not only warned of the potential for economic meltdown in the late 1990s, but also tried to convince the country's key economic powerbrokers to take actions that could have helped avert the crisis. 'They were totally opposed to it,' Born says. 'That puzzled me. What was it that was in this market that had to be hidden?'...
...Brooksley Born, who speaks for the first time on television about her failed campaign to regulate the secretive, multitrillion-dollar derivatives market whose crash helped trigger the financial collapse in the fall of 2008...
Born's battle behind closed doors was epic, Kirk finds. The members of the President's Working Group vehemently opposed regulation -- especially when proposed by a Washington outsider like Born.” Frontline via John Carney, Business Insider, 10/21/09
Born's observation that the President's Working Group was "vehemently opposed” does not surprise Deepcaster in the least. The Working Group is de facto controlled by the private-for-profit Federal Reserve and its (de facto) approved appointees.
And the private for-profit Fed is leader of a Cartel* of Central Bankers and allied Mega-Financial Institutions which stand to gain from their (The Cartel's) ongoing overt and covert Interventions in the Major Markets.
*We encourage those who doubt the scope and power of Overt and Covert Interventions by a Fed-led Cartel of Key Central Bankers and Favored Financial Institutions to read Deepcaster's December, 2009, Special Alert containing a summary overview of Intervention entitled "Forecasts And December, 2009 Special Alert: Profiting From The Cartel's Dark Interventions - III” and Deepcaster's July, 2009 Letter entitled "A Strategy For Profiting From The Cartel's Dark Interventions & Evolving Techniques - II" in the "Alerts” and "Latest Letter” Cache at www.deepcaster.com. Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at www.gata.org for information on precious metals price manipulation. Virtually all of the evidence for Intervention has been gleaned from publicly available records. Deepcaster's profitable recommendations displayed at www.deepcaster.com have been facilitated by attention to these "Interventionals.”
Even the Mainstream Media is, finally, beginning to report on "Cabals”.
"Jan. 29 (Bloomberg) -- The idea of secret banking cabals that control the country and global economy are a given among conspiracy theorists who stockpile ammo, bottled water and peanut butter. After this week's congressional hearing into the bailout of American International Group Inc., you have to wonder if those folks are crazy after all.
Wednesday's hearing described a secretive group deploying billions of dollars to favored banks, operating with little oversight by the public or elected officials.
We're talking about the Federal Reserve Bank of New York, whose role as the most influential part of the federal-reserve system -- apart from the matter of AIG's bailout -- deserves further congressional scrutiny.”
"Secret Banking Cabal Emerges From AIG Shadows”David Reilly, Bloomberg, 1/30/10
And for good reason Cartel skulduggery is becoming widely exposed. Cartel-affiliated Financial Institutions have been, and are profiting to the tune of Trillions while Investors and middle class taxpayers around the world are losing Trillions.
For example, according to a Report by the Central Bankers' Bank itself – The Bank for International Settlements (BIS) in Basel Switzerland – Mega Financial Institutions gained some $11.9 Trillion in the market value of their OTC derivatives between June, 2008 and December, 2008, when the Market Crash was causing investors around the world to lose Trillions. See for yourself at the BIS website: www.bis.org (path: Statistics>Derivatives>Table 19).
Does this not provide some evidence that the Fall, 2008 Market Crash was Planned? Indeed, Deepcaster was not the first to provide clear and convincing evidence that the 2008 Market Crash was planned. (See "Surmounting The Cartel's 'End Game' Juggernaut” (9/25/09) in the 'Articles by Deepcaster' cache at www.deepcaster.com for details.) Several reputable analysts including the Eminence Grise of the Newsletter writers Harry Schultz, and financial expert F. William Engdahl, have so indicated.
Yet another impediment to Investor Protection and Profit (and to an informed electorate) is the fact that Bogus Official Statistics hide key Realities (like e.g. de facto Wealth Confiscation) from Investors and the general public alike. Unfortunately, the Real Numbers show another Crash is highly likely. Consider the following
"January, 2010 real M3 fell an estimated 5.2% versus January, 2009, following an annual contraction of 3.3% in December, 2009 and 0.3% in November...
Commentary No. 268 of December 30, 2009 discussed the leading relationship between real (inflation-adjusted) year-to-year contractions in the broad money supply (M3 and the SGS-Ongoing M3) and the economy, and a signal for a double-dip downturn. In modern economic history, every time there has been such a year-to-year liquidity contraction, the economy subsequently has turned down, or if already in recession, the economic downturn has intensified. A signal for such an intensification of economic contraction was generated in November and December, and the signal got significantly stronger in January.”
Plunging Inflation-Adjusted Annual M3 Change Generates Intensified Signal of Renewed Economic Downturn. John Williams, Shadowstats.com
The foregoing indication of a dramatic contraction in the money supply is but one more indicator of looming Armageddon in the Economy and markets.
Consider also the following Real Numbers from Shadowstats.com which calculates the Real Numbers for the U.S.A. the way they were calculated in the 1980's and 1990's before Official Data Manipulation began in earnest.
Official Numbers vs. Real Numbers
Annual Consumer Price Inflation reported January 15, 2010 2.72% 9.68% (annualized January Rate)
U.S. Unemployment reported February 5, 2010 9.7% 21.2%
U.S. GDP Annual Growth/Decline reported January 29, 2010 0.10% -4.62%
Bogus Official Statistics serve to conceal the Confiscation of the Wealth of Citizen-Investors worldwide.
Consider as well the Reality of a $70 trillion plus Total U.S. Budget deficit and downstream unfunded liabilities, which can never be repaid without sacrificing the U.S. Dollar.
And the foregoing are but three of many salient negative fundamental indications.
Couple these with a consideration of mid and long-term technicals for the Equities Markets:
- Equities have broken beneath an expanding bearish wedge.
- Several Stochastic indicators are on Sell Signals
- Bearish Short-Term and Long-Term Head and Shoulders Tops are complete and confirmed.
- The downside Targets for these Technicals are genuinely fear-inducing when one consider what they mean for the economy and Markets (See Deepcaster's Forecasts in his January and February Letters and Alerts for details – all posted at www.deepcaster.com)
- Key Equities Indices have dropped below the lower boundaries of their upward trend channels (e.g. the NDX) – the NDX has also formed a rising Bearish wedge.
So, if Armageddon for the Economy and Markets is coming soon, how do Investors gain and protect?
The Strategy – Guidelines for Identifying Opportunities for Profit and Protection
- Hedge for Profit. Above all, it will be most important not only to hedge one's portfolios, and to lighten up considerably on the long side, but also to hedge for profit. That is, it is essential to regard the coming Takedowns in the Equities and other key Markets as Profit Opportunities. Be just as willing to "play on the short side” as to invest on the long side.
- Get the Real Data. As many Investors suspect, Crucial Official Government and Agency Economic and Financial Data are of highly questionable validity. The Data set forth above from shadowstats.com is a good starting point. Educate yourself about the realities of the marketplace using Alternative Data Sources such as Deepcaster, Gold Anti-Trust Committee (www.gata.org), and shadowstats.com. Gathering and staying attuned to authentic information regarding the marketplace can save one much financial grief as well as positioning one for profit.
- Take Account of both Overt and Covert Cartel Intervention. Many of these same investors who suspect Official Statistics also rightly suspect that the private-for-profit U.S. Federal Reserve and/or Central Banks overtly and covertly manipulate Major Markets. But they might not be aware that covert Market Interventions and Data Manipulation are likely far more pervasive than generally believed, as detailed in Deepcaster's articles mentioned above. As well, such investors may not have thought systematically about how one copes with and profits from such Intervention and Data Manipulation. Consider one example of Cartel Intervention: the Traditional and Legitimate Safe Haven from inflation, deflation, and risk, is Gold. Yet, Gold has, during the recent periods of extreme financial market turmoil, been taken down in price (e.g. in 2008) from its highs of over $1000/oz down to around the mid-$700 level when it should have skyrocketed. In early March, 2008 Gold was over $1000/oz. when the Bear Stearns Crisis revealed the fragility of the Financial System. Gold should surely have skyrocketed then. Instead, it was brutally taken down. Were its price not manipulated, Deepcaster's view is that its price would be over $3,000.00 per ounce today. Deepcaster and others, including the Gold AntiTrust Action Committee, have offered considerable evidence that the Cartel* of Central Bankers and Favored Financial Institutions are the culprits behind these dramatic and devastating Takedowns. See Deepcaster's Alert of 12/25/07 "A Strategy for Profiting from Cartel Intervention in Gold, Silver, Crude Oil and Other Tangible Assets Markets” in the Alerts Cache at www.deepcaster.com. But there is a Profitable Refuge from Market Intervention and Data Manipulation. That Profitable Refuge lies in the Strategy described in the aforementioned Alert, certain characteristics of which we outline here:
- Recognize that the "Buy and Hold” strategy rarely succeeds anymore. The Eminence Grise of Newsletter writers, Harry Schultz perhaps put it the best when he stated that "buy and hold no longer works anymore, even with Gold.” Recent Market Developments should suffice to demonstrate this principle! Indeed The Dow was at about its current level of 10,000ish, a decade ago. And, adjusted for inflation Dow stockholders have actually lost over 30% of the purchasing power of The Dow's dollar-value.
- Track the Covert Interventionals as well as the Technicals and Fundamentals and Overt Interventionals. Tracking the Footprints, as it were, of the Covert Interventionals (e.g. the Repo and TSLF Pools) daily can often, but not always, give one excellent clues about The Cartel's next likely Interventional Move - - such clues are essential to preserving wealth and making profits. Deepcaster's tracking of The Interventionals, for example, allowed him to recommend five short positions going into September, 2008, (i.e. before the Market Crash) all of which he has subsequently recommended be profitably liquidated. Deepcaster's recent article "Cartel Angst Equals Investor Advantage” (9/18/2009 can be found in the 'Articles by Deepcaster' at www.deepcaster.com) lays out a specific strategy for use in investing and trading in the heavily manipulated Gold and Silver Market.
- Perhaps most important, be prepared to go both long and short Major Market Sectors - - long near the bottoms of Interim Takedowns and short near Sector Tops. The Interventionals are essential to helping identify these tops and bottoms. In Deepcaster's view, it will be increasingly difficult to achieve a net profit for one's portfolio if one is unwilling and/or unable to "go short” as well as "long”. The Blossoming of the 200% and 300% (and other) leveraged 'short' and 'long' ETF's described above provide a superb opportunity to go short and long with ease, but not, as we explain in recent articles, without risk.
- Be aware of and Active in the overall Geopolitical Landscape in order to gain an adequate understanding of how that Landscape might affect the present and future direction of the Markets. It is essential that one understand the motivations of the major players in the market and the resources at their disposal. For example, a Major Motivation of the U.S. Federal Reserve and other key Central Banks is the protection and enhancement of the legitimacy of their Treasury Securities and Fiat Currencies as Measures and Stores of Value. Therefore, one can understand that one of their Major Goals will be to attempt de-legitimize Gold, Silver and the Strategic Commodities, including especially Crude Oil, as Stores and Measures of Value. With this in mind, the periodic takedowns of Gold and Silver and, since July, 2008, of Crude Oil, become understandable. Moreover, such an insight applied daily to the market can result in a tremendous edge in understanding market performance, present and future. Moreover, regarding the assets at The Cartel's disposal, if one tracks the Repurchase Agreement and TSLF Pools regularly for example, and is aware of the other Interventional tools that The Cartel has at its disposal, then one gains a considerable edge.
- Finally, Hard Assets Partisans have the opportunity to become involved in Political Action to diminish the power of The Cartel. It is truly outrageous that the average unsuspecting citizen, and prospective retiree, can and does put his hard won assets in Tangible Assets and/or Retirement Accounts only to have those assets effectively de-valued by Cartel Takedowns, U.S. Dollar Devaluation and other Cartel actions. This is extremely injurious to many average citizens in many countries who are saving for the rainy day or retirement and have their retirement and/or reserves effectively taken from them. In order to help prevent this and similar outrages, we recommend taking three steps:
- Become involved in the movement to Audit and then abolish the private-for-profit U.S. Federal Reserve as Deepcaster, former Presidential candidate Rep. Ron Paul, and legendary investor Jim Rogers, all have advocated. The 'Audit The Fed' Bill is H.R. 1207 (and has over 200 co-sponsors) and S604 in the Senate; and The Abolish The Fed Bill is H.R. 2755.Unfortunately these bills have been watered down in this session of Congress. www.carryingcapacity.org is a nonprofit organization which actively supports these bills.
- Join the Gold AntiTrust Action Committee, which works to eliminate the manipulation of the Gold and Silver markets (www.gata.org). GATA is a nonprofit organization, which makes a great contribution by gathering evidence regarding the suppression of prices of Gold, Silver and other commodities.
- Work to defeat The Cartel 'End Game.' Deepcaster has laid out the evidence regarding the Ominous Cartel "End Game” in "Coping with Power Moves in the Cartel's 'End Game' " (04/24/2009) in the 'Articles by Deepcaster' cache at www.deepcaster.com. Clearly The Cartel is sacrificing the U.S. Dollar to prop up Favored International Financial Institutions and to maintain its power. But this sacrifice cannot continue forever. See Deepcaster's July 2008 Letter in the 'Latest Letter' Archives at www.deepcaster.com.
Additional insights and details regarding the foregoing Strategy, which are essential to profiting from The Cartel's Policies, are laid out in Deepcaster's article of 3/06/09 entitled "Investor Advantage: Revisiting The Cartel's 'End Game' ” in the 'Articles by Deepcaster' cache at www.deepcaster.com.
Details of the Strategy designed to profit in spite of Cartel Intervention specifically in the Precious Metals markets are described in "Defeating The Cartel...With Profit” (3/28/2008) in the 'Articles by Deepcaster' cache at www.deepcaster.com.
Indeed, the Key Point of the Strategy for Protection and Profit is careful attention not only to the Fundamentals and Technicals but also to the Interventionals. These Overt and Covert Cartel-generated Interventions have the power to move markets as those who study the matter can attest.
Thus, the Key to Profit and Protection is a Strategy: Successful Investors must become Long-Term Position Traders, with their trading choices informed by the Interventionals, as well as the Fundamentals and Technicals. Moreover engaging in the Actions suggested above can help prevent The Cartel's obtaining Superpower status, and aid in achieving wealth protection and profits as well.
Copyright © 2010 DeepCaster LLC
DEEPCASTER FORTRESS ASSETS LETTER Wealth Preservation, Wealth Enhancement, & Financial and Geopolitical Intelligence. Gravitas, Pietas, Virtus
contact information
Civilization at the Crossroads
John Meyer
(Editor's Note: This is a repost of an article that came up in conversation the other day. Occasionally I am fortunate enough to come across a contemporary essay that is so concise and well written that it allows me the opportunity to crystallize and clarify my understanding of a particular subject. This work, by John Meyer, ranks among the best I have ever been privileged to read. Please take the time to absorb the depth of Mr. Meyer's understanding, and be thankful that you have been let in on the truth. - JSB)
In our last letter we stated that, "American capitalism ended in 1913 and remains "An Unknown Ideal." We also commented that, "A troubling question arises: Has the financial community hijacked government?"
We are going to discuss those issues in an historical and philosophical context. We all today live in a twilight zone where things seemingly are and yet aren't. We must travel down some roads, which are troubling and rather dark. But, it is necessary, because it is today's reality. We can say at the start that you will find the trip unbelievable - I know I did when I first stumbled down this path. Matter of fact, at first I totally dismissed it as absolute insanity and therefore not possible. For, it was inconceivable that the morality of man could descend to such naked malevolence.
To look more deeply into our history is necessary, because almost all that comes from our "intellectual" community, is propaganda and spin. Before we heap cures on a dying patient, first and always diagnose. Diagnosis is the art or act of identifying the disease. All the talk about free markets and capitalism having failed and always what we need is more regulation and intervention are deliberate obfuscations. Naturally, with this propaganda barrage, Socialism keeps "gaining" by default. You have to be on another planet to think that what we have had for the last century is capitalism or free markets.
So - every once in awhile it pays to stand back and locate one's position in reality. Events have gone well beyond the field of economics, finance and politics. Sub rosa forces seem to be spinning us deep into an Orwellian existence. The Founding Fathers created a Constitutional Republic. It was not a democracy. The Founding Fathers were quite outspoken on this. Madison in a passage in The Federalist wrote: "there is nothing to check the inducements to sacrifice the weaker party or an obnoxious individual. Hence it is that such democracies have ever been spectacles of turbulence and contention; have ever been found incompatible with personal security or the rights of property; and have in general been as short in their lives as they have been violent in their deaths."
The natural and inalienable rights of the individual trumped the majority vote of a mob. The State was to be the servant of the individual. The Declaration of Independence was the culmination of the Enlightenment and Classical Liberalism. The individual and the concept of property rights were elevated to be supreme. The individual was set free from the collective, king or god to pursue his own rational self interests. This noble experiment propelled the United States to a level of achievement, which has never been equaled. Productivity is the essential requirement of life. In fact, life demands it. It is metaphysical. That is, it is biocentric. Life is a constant process of self-sustaining and self generated action. The individual is the creator and to deny or impinge, in any way, on the products of his efforts leads society down the road to slavery. The right to life and by extension his property is the source of all rights.
The State is the institutionalization of force, of all exploitation, directly or indirectly. There are essentially only two ways to survive. Wealth is achieved either through industry and production or by force and plunder. The State does not create wealth. The State can only obtain wealth from the productive individual. The State becomes the political means, through "rationalization", by which the wealth of the citizen is looted. The State's power is maintained until the people begin to catch on to the nature of the systematic plunder, and until people begin to challenge this colossal con game. At this point, the State usually turns brutish. We are there today.
From the very beginning of the American Republic, a tension existed between proponents of centralization and political control and advocates of freedom and limited government. The spirit of Jefferson battling against an Aristocracy and the oligarchy of a Hamilton. In fact, this struggle continued throughout the nineteenth century looming larger and larger. The Federalist and their quest for a central bank being the fulcrum of this struggle.
In 1760, Mayer Amschel Rothschild created the House of Rothschild that was to pave the way for international banking and control of the world's resources on a scale both unparalleled and mysterious. His five sons were disbursed throughout Europe. In time, control of the Bank of France and the Bank of England was achieved. It is quite likely that Rothschild was behind the early attempts to establish a national bank in America. Jefferson and Madison remained adamantly opposed. Then later, the statists were confronted by Andrew Jackson. In a letter Jackson wrote dated June 26, 1833 he made clear his opposition to re-chartering the Second Bank of the United States: "The framers (of our Constitution) were too well aware of the corrupting influences of a great moneyed monopoly upon government to legalize such a corrupting monster by any grant either express or implied in the constitution." The great Jackson was the last anti-elitist President.
In these early decades of our history, this tension remained contained within the boundaries of the Constitution. Even the extreme supporters of Hamilton would have been at odds with the arbitrary and unconstitutional edicts issuing from Washington today. Hamilton would have stopped short of a State engaging in social engineering, the redistribution of wealth and perpetual war. The Bill of Rights were a formal reaffirmation of the limited authority of the Federal government. The 9th and 10th Amendment preserving all other non-delegated rights to the states and the people.
And Across the Atlantic
This raises the question: How did this vast expansion of the role in the Federal government come to be in a country with our legacy of freedom and limited government? We begin with Ayn Rand. The remnants of the Enlightenment and America's capitalistic system was to be undercut by the philosophy of German intellectuals. The philosophies of Kant and Hegel launched a frontal attack on the concept of an independent individual, an independent reality and the Law of Identity. Further, to reality being unknowable or non-existent they both advanced that the consciousness, man's mind, was not capable of perceiving reality. Kant and Hegel closed the door of philosophy to reason. Contrary to Aristotle and Aquinas, Kant and Hegel asserted that the mind was the creator of reality not the perceiver of reality. This thinking lay at the heart of German "idealism" and easily later led to the philosophy of pragmatism. At the core of these new philosophies was that there are no principles, because there are no facts. Reality was fluid, to be manipulated by the primacy of consciousness. Reality as perceived by man's mind, is a distortion. Kant and then Hegel were determined to save the morality of self-sacrifice, from reason. If man was incompetent to think or know reality, it only remained to determine who would control man and who would collect man's "self-sacrifices."
This philosophy gave the philosophical basis to the most revolutionary movements of the 19th and 20th centuries. The Hegelian system of political thought was totally alien to Western civilization. Hegel proposed that the State is also God. That the only duty of the citizen was to serve God by serving the State. The State is reason and the citizen can only find "freedom" by worship and obedience to the State, of course, controlled by an "elite."
The Devil's Theory of History
There is compelling evidence confirming this hypothesis presented in the works of: (1) Anthony C. Sutton, America's Secret Establishment (an introduction to The Order)
Sutton's book, America's Secret Establishment, began following an anonymous donation to the author of an eight inch package in the early 1980s. The package contained the membership lists and supporting documents for a truly secret society--originating at Yale, known as the Skull and Bones.
In the late 1960s Sutton had been an economics professor at California State University and a Research Fellow at the Hoover Institution of Stanford. He explained: "Back in 1968 my Western Technology and Soviet Economic Development
For Sutton the dilemma was excruciating - there couldn't be any rational answer. But on examining the documents contained in the package he saw that, "this was no ordinary group. The names spelled Power, with a capital P. As he probed each individual a pattern emerged...and a formerly fuzzy world became crystal clear."
In Sutton's preface to, America's Secret Establishment (an introduction to The Order)
As FDR stated, "In politics, nothing happens by accident. If it happens, you can bet it was planned that way." Woodrow Wilson in 1913 wrote: "some of the biggest men in the U.S., in the field of commerce and manufacturing, are afraid of somebody, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it." And Roosevelt in a letter to Col. Edward Mandell House in November 1933, wrote:"The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned Government ever since the days of Andrew Jackson."
Today, our current intellectual and financial state only adds further evidence to the conspiracy theory. Why does our government rush to rescue the banksters of Wall Street with trillions of dollars? How is it that the government can seem to find trillions for pre-emptive foreign wars and endless bailouts, but so little for the citizen? Where is America's fourth estate? Following the "Downing Street Memo" published by The Sunday Times on May 1, 2005, which provided hard, first hand, evidence that Bush had lied, we heard nothing. Why did Pelosi take impeachment off the table? Why is Obama's administration protecting the previous administration from prosecution? How can Obama speak of the "American Dream" of saving to educate our children and grandchildren; while Nancy Pelosi and other Democrats speak of confiscating private retirement accounts? There are no level playing fields. They all tilt. Tragically, the rule of law is not to be found.
Hegelian Dialect - The Key
With this background we look deeper into Hegel's philosophy. An understanding of which will lead us to a processes that began a bloodless and silent revolution, that has ravaged America's ideals and plundered mankind. Hegel advocated a process of conflict to bring about change in society. Conflict is essential in order to promote change and thereby, elevate the supremacy of the State.
For example, take the implied philosophy of The Declaration of Independence, (the thesis) and Hegel "the State" (the antithesis) and there you have a world class clash. From this emerges a submissive dumb-downed New World Order (the synthesis).
Both Marx and Hitler clearly emerged out of Hegel's philosophy of elitism and State control. Even though Marx and Hitler were advocates of socialism sharing the same philosophical base, they were promoted as two extremes (thesis and antithesis.) But, they served to create a conflict. This conflict of opposites was essential to bring about change, the synthesis, thus advancing toward the real hidden objective. It became the major tool in "conflict management" to control and advance socialism toward a New World Order. The conflict, is a ruse, to deflect attention from a higher objective.
The Soviet Union was allowed to emerge from the destruction of World War II, solely because she was needed as the next "evil empire" (anti-thesis) so the West could launch a new crusade - The Cold War. Now, it's the "war against terrorism."
In politics, they support both parties, even though both are essentially the same. The game is to have two parties that only appear to be opposites, when, in fact, the elite want the two parties to be identical. Thus, the American people can "throw the rascals out" at election time without there being any real change in policies and therefore their control. And the illusion of a "free society" is maintained.
This is precisely what the seven conspirators at Jekyll Island eventually did. Nelson W. Aldrich was the Republican "whip" in the Senate and Chairman of the National Monetary Commission, and a business associate of JP Morgan. Congress had given Aldrich the responsibility to study the problems of American Banking and then make recommendation to Congress on how to stabilize the banking system. The remaining six at Jekyll Island were not even members of the Commission. They were bankers representing a quarter of the wealth of the world.
The crisis of 1907 had pushed Wall Street to the edge. It was determined that banking competition had to be eliminated and replaced by a national cartel and a "lender of last resort." The Aldrich commission was a sham. Aldrich ran a one man show fronting for some of the most powerful bankers of the world. Warburg following the Jekyll meeting in 1910, created two versions for Congress. The first version was the Aldrich Plan. It was the Republican version, which was heartily endorsed by the banks. It was defeated. Taft the President having opposed the first version had to be replaced. Thus, we see the entrance of Col. Edward Mandell House, the "king maker" and Wilson a former college professor and Governor of New Jersey. The election of 1912 was a prime example of deception and power politics. Wilson had been scouted by Col. House as someone who would promote a central bank. Teddy Roosevelt, inexplicably entered the Republican race, the "Bull Moose" to draw votes from Taft, sabotaging his own party. The firm of Kuhn Loeb was lavishly financing all three candidates. The result was a Democratic Congress and a Democratic President in 1912. The stage had "masterfully" been set. Taft was thrown over because he wouldn't deliver the Aldrich Plan into law. With Wilson the Democratic version of the central bank bill, The Federal Reserve Act, would be enacted.
Mullins explains: "To further confuse the American people and blind them to the real purpose of the proposed Federal Reserve Act, the architects of the Aldrich Plan, powerful Nelson Aldrich, although no longer a senator, and Frank Vanderlip, president of the National City Bank, set up a hue and cry against the bill." This plan of deception was necessary publicly to create the impression that the Federal Reserve Act must be good if the bankers opposed it. Behind the scenes two shadowy , non-elected persons, the immigrant Warburg and Col. House diligently worked.
Paul Warburg was the mastermind and did most of the drafting at Jekyll Island. Warburg was a recent immigrant from Germany who had joined the banking house of Kuhn, Loeb, as a partner reportedly earning $500,000 a year. The primary deception of Warburg's plan was to create in name only a regional reserve system. This would deflect the public's distrust of a central bank.
Rothschild's had always feigned that they had little ambition in the United States. It was a deliberate deception and cover to deflect scrutiny and detection. In fact, the Rothschild's had several American agents. August Belmont, as a decoy, had publicly been identified in 1837 as one. But, it was never publicly disclosed, that J.P. Morgan and or Kuhn Loeb were also secret agents for Rothschild. Mullins makes note that a key advantage of the Morgan's work for the House of Rothschild was the carefully cultivated deception that Morgan was anti-semitic. The Rothschilds had many hidden interests in American banking. Jacob Schiff, who brought the Kuhn Loeb firm to its preeminent role, was born in the Rothschild house in Frankfurt, which the Rothschild's shared with the Schiff family.
After the Aldrich Plan aroused such resentment, Warburg got the Federal Reserve Act going, which under its cover was the Aldrich Plan with only minor changes. According to Mullins: "The mastermind of both plans was Baron Alfred Rothschild of London."
Col. Edward Mandel House went to school at Hopkins Grammar School, New Haven. House knew The Order from school days. One of House's closest classmate at Hopkins was Order member Arthur Twining Hadley, who was later to become President of Yale. But, Col. House's real connection to The Order was through the Taft family. In 1911, House completed a "novel" called, Philip Dru, Administrator
An Introduction to the Order and the Group
According to Sutton: "Both The Group and The Order have been created by Anglophiles who want to pattern the world on a Hegelian-Anglo hybrid culture." The British secret society, The Group, was founded at Oxford University and The Order at Yale. Both consist of old line families allied with private merchant banks. Sutton explains: "Bearing in mind, the existence of The Group, the operations of The Order and the kind of penetration it has achieved cannot be explained by mere chance. By examining The Order's operations we can generate a picture of its objectives without access to any internal constitution or statement of objectives."
In 1981, The Anglo-American Establishment
Few have done more to expose this global agenda, than Carroll Quigley, an influential former history professor at the Foreign Service Schools of Georgetown University. In his Tragedy and Hope, Dr. Quigley reveals the existence of a conspiratorial network: "I know of the operations of this network because I have studied it for twenty years and was permitted for two years, in the early 1960s, to examine its papers and secret records. I have no aversion to it or to most of its aims and have, for much of my life, been close to it and to many of its instruments. I have objected, both in the past and recently, to a few of its policies....but in general my chief difference of opinion is that it wished to remain unknown, and I believe its role in history is significant enough to be known." The Professor describes its objective as "nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole." In his The Anglo American Establishment, he wrote that: "The goals which Rhodes and Milner sought, and the methods.....this band should pursue its goal by secret political, economic influence behind the scenes, and by control of journalistic, educational, and propaganda agencies...."
Further, in Tragedy and Hope Quigley writes: "There does exist, and has existed for a generation, an international Anglophile network which operates, to some extent in the way the radical right believes the Communists act. In fact, this network, which we may identify as the Round Table Groups, has no aversion to cooperating with the Communists, or any other group, and frequently does so."
The Order is no campus Greek letter frat. It is not social, it is totally anti-social. It is secret and members are sworn to silence. Chapter 322 was founded at Yale in 1833 by William Huntington Russell and Alphonso Taft. It is thought to be affiliated with a German secret society. The Order was incorporated as The Russell Trust in 1856.
It is more than an accident that The Order was founded in 1833. For Russell had spent his junior year studying in Germany, where Hegel's philosophy was flourishing. This link to Germany for The Order is much more than coincidence. In the 1850s, three members of The Order left Yale. Sutton refers to them as, "a Revolutionary Yale Trio." He writes: "...working together, at times with other members along the way, they made a revolution that changed the face, direction and purpose of American education." They graduated within a few years of each other. All three went off to study philosophy at the University of Berlin, where Hegelian philosophy had a monopoly. Timothy Dwight ('49) studied there and Bonn between 1856 and 1858. Daniel Coit Gilman ('52) was there between 1854 and 1855. White studied there between 1856 and 1858 and was later U.S. Ambassador in Berlin.
Also at the University of Berlin in 1856, at the Institute of Physiology, was Wilhelm Wundt, the founder of experiment psychology in Germany and later the source of dozens of American PhDs, who came back from Leipzig to start the modern American educational movement. These young men spent these formative years in what was the middle of an Hegelian ferment. There were two groups of these Hegelians. On the right, was to be found the beginning of the Prussian militarism. The left Hegelians, became the promoters of socialism and Karl Marx and Frederick Engels.
As Sutton makes clear: "The point to hold in mind is that both groups use Hegelian theory of the State as a starting point, i.e., the State is superior to the individual. Prussian militarism, Naziism and Marxism have the same philosophic roots." Gary Allen completes the picture concerning the true nature of socialism by stating: "...that socialism is not a "share the wealth" program but is in reality a method to consolidate and control wealth, then the seeming paradox of super rich men promoting Socialism becomes no paradox at all. Instead it becomes logical, even the perfect tool of power-seeking megalomaniacs. Communism, or more accurately Socialism, is not a movement of the down-trodden masses but of the economic elite."
Gilman eventually ends up the first President of John Hopkins. He led the revolution in American education. Sutton goes into great detail as to how his appointment occurred and then his subsequent appointments assuring that the Hegelian philosophy would deeply impact our educational system. Gilman imported the experimental psychology of Wundt, an Hegelian, from Germany. This psychology was spread to Columbia and Chicago University. He launched John Dewey, also a student of Hegelian philosophy, along a fast track. Dewey , one of John Hopkin's first doctorates, was quite clear that children do not go school to develop individual talents but to be prepared as units in an organic society.
To review all of Sutton's analysis is way beyond the scope of this letter. But Sutton's America's Secret Establishment, provides enormous evidence as to how The Order targeted foundations in its mission to control the writings of history. They infiltrated the press, politics and much, much more. They were involved in creating the Soviet Union and financing the Nazis. It's fascinating and unbelievable; but the more you study the facts - an horrific conclusion emerges.
The Creature and the Great Conspiracy
Mullins finished his first edition of The Secrets of the Federal Reserve, in 1950. Eighteen publishers turned it down without comment, but the nineteenth offered Mullins some friendly advice: "I like your book, but we can't print it, neither can anybody else in New York." After two more years of failure a small edition was finally published by friends with private money. In 1955, a German edition was published. The book was seized and the entire edition of 10,000 copies were burned by government agents. This has been the only book burned in Germany, since the Nazis. Mullins original book named the shadowy figures in the United States who planned the Federal Reserve Act. Mullins research on the Fed continued and in the later version the shadowy American figures were but fronts for unknown figures which he identified as the "London Connection." Mullins commented: "I found that notwithstanding our success in the Wars of Independence and 1812 against England, we remained an economic and financial colony of Great Britain. For the first time, we located the original stockholders of the Federal Reserve Banks and traced their parent companies to the "London Connection."
G. Edward Griffin's, in his book, The Creature from Jekyll Island, published in 1994, adds detail to the "London Connection." Without question, behind the "London Connection" was the House of Rothschild. The Rothschild family represented untold wealth and unrivaled power. They were the financial rulers of nations. They were known to profit from both sides of armed conflict. War required debt and debt was converted back into wealth via the opportunities of crises and panics. Secrecy was always an essential element to their dealings. The banking community had always constituted a "fifth estate" whose members were able, by control of the purse, to affect important events. The House of Rothschild was immensely more successful and powerful than any other financial power. It was vast and it was international and independent. Governments couldn't control it. It operated behind the scenes in secrecy. They perfected banking to a malevolent art. Continual wars in Europe provided them a fertile background. It is said that the House of Rothschild did what was necessary, that is to say they were amoral. They mastered the art of smuggling on a grand scale. They operated a highly efficient intelligence gathering system, which kept them often ahead of events. This footprint of the House of Rothschild of cold, ruthless, amoral objectivity - totally pragmatic and opportunistic was to become the future footprint for others.
The Sinking of the Lusitania
Griffin in, The Creature from Jekyll Island, details how and why we entered World War I. Once more we see J.P. Morgan and the Rothschild footprint. And there is that cunning Col. House behind the scenes. Britain and France had gone heavily into debt and had to turn to the Americans. Naturally, they selected Morgan, as partners of the Rothschilds, to act as sales agent for their bonds. Money thus raised was entrusted to Morgan as agent to secure war sensitive materials. This was all enormously profitable. Purchases quickly climbed to over $3 billion. The Morgan offices at 23 Wall were spending $10 million a day. But, a dark cloud gathered over Wall Street, German U-boats were winning the War. Germany was succeeding in cutting off England. If England and France had to accept defeat, The Rothschilds, Morgan and other investors would face staggering losses.
Col. House, as personal advisor to Wilson and with close contacts with Morgan and other European bankers was the ideal man to work on a secret agreement to get the U.S. into war. Viereck, in his The Memoirs of William Jennings Bryan
"Ten months before the election which returned Wilson to the White House in 1916 'because he kept us out of war,' Col. House negotiated a secret agreement with England and France on behalf of Wilson which pledged the United States to intervene on behalf of the Allies."
But the war had to be sold to the American people. Winston Churchill was First Lord of the Admiralty. The Lusitania, a British ship, had been refitted to carry munitions and passengers. Churchill was quite ruthless in his plan. Germany gave crews of unarmed vessels the opportunity to take to the life boats before sinking them. But, Churchill issued orders to British ships to no longer stop to be searched. They were to engage - ram if necessary. This led the Germans to just remain submerged and simply sink ships without warning. Churchill also ordered ships to remove their names and at times to show flags of the neutrals, preferably the U.S. This was a cold blooded attempt to provoke an incident to expand the war.
The Lusitania was to sail from New York on May 1, 1915 loaded with munitions and 600 tons of gun cotton. The German embassy in Washington was well aware of the Lusitania's cargo and filed a formal complaint to the U.S. government, the cargo was in violation of the international neutrality agreement. The U.S. issued a flat denial. Aware that the U.S. had to be aware of the shipment, the German embassy made one final effort. The embassy placed ads in fifty East Coast newspapers, warning Americans not to take passage on the Lusitania. The ad was prepaid and was to run one week before sailing. However, the State Department intervened, threatening possible libel suits, without clearance from the State Department. Only one ad ran - in the Des Moines Register.
While House and Wilson were setting the deadly stage over here, Churchill was up to more ugliness. As was the custom, the Lusitania was to rendezvous with a British destroyer, the Juno, off the coast of Ireland so she could be escorted through the area where the U-boats operated. When the Lusitania had reached the rendezvous point there was no destroyer, it had been recalled. Even worse, the Lusitania had been ordered to cut back on the use of coal. She was required to shut down one her four engines. The Lusitania sank in eighteen minutes, taking 1,195 lives, 195 were Americans.
Gold and the Portfolio
In August Ambrose Evans-Pritchard wrote: "What we are about to see is a race to the bottom by the world's major currencies as each tries to devalue against others in a beggar-thy-neighbor policy to shore up exports, or simply to cut rates frantically to stave off the consequences of debt-leveraging and the risk of an outright slump. When that happens - if it is not already happening - it will become clear that both pillars of the global monetary system are unstable, infested with the dry rot of excess debt." Finally, he concluded: "Gold bugs you ain't seen nothing yet. Gold at $800 looks like a bargain in the new world currency disorder."
Gold's almost perfect environment has arrived. In March, the race to the bottom of our current monetary system has gone critical, with first the "hard money" Swiss, then Britain and finally , the U.S. embracing the end game of direct monetization of government debt paper. England, the Swiss and the United States have provided the world with a key or reserve currency for nearly 300 years. We are in a transition period unlike any. The last transition - from the UK Pound to the U.S. Dollar between 1914 and 1945 - was no fun. The current fraudulent "monetary" system will not survive.
The problem for the Establishment is that there is an elephant, of there own creation, in the room, which they are desperately trying to coverup. It cannot be done. The elephant is the derivative market. Five banks account for over 95% of all derivatives and over 80% of the total net credit risk exposure. JP Morgan Chase holds a staggering $88 trillion, 2.3 times number two, Bank of America. As of the third quarter 2008, the total OTC derivatives in gold with less than one year maturity have a nominal value of $94.589 billion. Of this amount Morgan and HSBC hold $94.014 billion or over 99%. JP Morgan's leverage to financial derivatives exceeds 300 to 1. Bank of America and Citigroup never had anywhere near that. The vaporization of AIG, Bear Stearns, Lehman and others was all due to blowups in their OTC derivatives, which were significantly less than JP Morgan's.
Morgan's gold and interest rate derivative positions are the smoking gun. They are the direct link to the manipulation of gold and bond prices. Watch for gold's move through $1000 and the U.S. government 30 year yield breaking above 5%. This will signal the second round of derivative blowups and the insolvent banking industry led by Morgan will be history. Gold is your only possible life line to survival. (Thank you, Mr. Sinclair)
The secret elite have made a fatal miscalculation. A money monopoly is power - great power - but, it is not infinite. They could not have launched the world into perpetual wars without it. The root of this power was the ability to exploit the wealth of the productive citizen. However, like any parasite, they are ultimately dependent upon the host. Their link to the exploitation of the world's wealth was through the banking system and its hidden powers of confiscation. That link is mortally wounded and is about to be severed. The Federal Reserve and the banking system are mutually dependent. The Fed's own credit worthiness goes with those five banks. Financial bubbles are not wealth. The world has never witnessed such madness as the 'Creature from Jekyll Island' unleashed. The arrogance and conceit of leveraging their capital as they did along with derivatives was their fatal error. As Rand said their check is about to bounce, "account over drawn." There are no more bailouts. Atlas has shrugged.
Conclusion
Intellectual confusion is the hallmark of our culture. It was planned, it's not accidental.
History is far from being random and accidental. The truth and the power is found in philosophy and its ideas. Man's conceptual facility, which is volitional, is powerful - very powerful. From it comes the beauty or the beast in man. The Order's founders and original organizers were "brilliant" intellectuals, but they were beasts, enabled by Kant and Hegel.
We emerged form the dark ages when the powers of the church were separated from the state. Now, we must separate economics and business from the state. Capitalism(economics) and The Declaration of Independence (politics) failed this time, since they are incompatible with the morality of faith and self-sacrifice. Capitalism and the inalienable rights of man require their own philosophical foundation based on reason and the virtue of selfishness. Check your premises, educate yourself, and then act - there's a lot of work to be done. Thank you, Ayn.
"If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and what never will be." ~ Thomas Jefferson, in a letter to Col. Charles Yancey, January 6, 1816
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." ~ Benito Mussolini
"The thought of an American twenty-first century French Revolution is ugly. But the thought of an American twenty-first century fascist state is far uglier. It would be a supreme irony that the state most responsible for stopping worldwide fascism would become fascist 60 years later. But far worse than this irony is the reality that an American fascist state with America's power would make Nazi Germany look like a tiny blip on the radar screen of history." ~ David G. Mills, November 10, 2004, Information Clearing House, (News you won't find on CNN.)
"Charlotte Iserbyt is to be greatly commended for having put together the most formidable and practical compilation of documentation describing the "deliberate dumbing down" of American children by their education system. Anyone interested in the truth will be shocked by the way American social engineers have systematically gone about destroying the intellect of millions of American children for the purpose of leading the American people into a socialist world government controlled by behavioral and social scientists." ~ Foreword, by Samuel L. Blumenfeld to The Deliberate Dumbing Down of America, by Charotte Thompson Iserbyt
"The crash has laid bare many unpleasant truths about the United States. One of the most alarming, says a chief economist of the International Monetary Fund, is that the finance industry has effectively captured our government - a state of affairs that more typically describes emerging markets, and is at the center of many emerging-market crises. If the IMF's staff could speak freely about the U.S., it would tell us what it tells all countries in this situation; recovery will fail unless we break the financial oligarchy that is blocking essential reform. And if we are to prevent a true depression we're running out of time." ~ The Atlantic Monthly, May 2009, by Simon Johnson
"You are a den of vipers. I intend to rout you out and by the Eternal God I will rout you out. If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning." ~ Andrew Jackson, 1828 (to a group of investment bankers)
John D. Meyer Berkshire Financial Advisors Stratham, NH
Copyright © 2009 John D. Meyer
Iscriviti a:
Post (Atom)