Tom Hen...OBC-china fraud // c-story.
'TRASHETS' // POOF - fw10 - RMN -
lundi 13 avril 2009 00 h
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Tom Hen...OBC-china fraud // c-story. 'TRASHETS' // POOF - fw10 -
Saturday, April 11, 2009
Citibank FRAUD is now
as Interl Crime Wave Escalates
by Tom Heneghan
International Intelligence Expert
Saturday April 11, 2009
UNITED STATES of America - It can now be reported that
European INTERPOL, along with the U.S. Department of Justice, have
uncovered a massive money laundry scheme linking current and former
U.S. and Chinese government and corporate officials to the direct
LOOTING of both the U.S. and Chinese Treasuries.
Top-level government corruption emerges in China
Since the G20 summit in London at the beginning of April 2009, a major
political crisis has raged behind the scenes in the People's Republic
of China. Both President Hu Jintao and Prime Minister Wen Jiabao are at
loggerheads with the Central Committee and the Political Bureau of the
Communist Party of China
over issues of major geopolitical financial fraud.
First, a 25-page G20 privileged
document detailing secret collusion between the Obama White House and
China to precipitate the US national bankruptcy into a carefully staged
USA-wide middle-class financial collapse has been exposed.
Chinese attempts to recall the document have failed.
Second, Wen Jiabao with the
support (he says) of Hu Jintao gave secret computer access codes to
George Bush Jnr during the dying days of the Bush US administration.
These codes gave the Bush White House wire-transfer access to the
massive Farm Claims, Omega Fund and international prosperity fund
accounts. The subsequent attempts at theft were traced in Europe using
Inslaw/PROMIS (and other) security software and were blocked.
There is a real possibility, now, that both Wen Jiabao and Hu
Jintao will go the way of former Shanghai Communist party chief Chen
Liangyu. In April 2008, Chen was removed from his post and sentenced to
18 years in prison after being linked to a social insurance fund
scandal involving the attempted theft of 3.7 billion yuan.
And let's not forget the
executed Madame Wu Yi. On Friday 16th May 2008, a $14 trillion sum of
money belonging to China was moved into Citibank. It was then illegally
moved offshore by Madame Wu Yi. Acting in personal Ming family
interests, she put out the cover story that John Glover Roberts, Alan
Greenspan and Dick Cheney had attempted to steal the funds, had failed
and had been taken into custody.
Her intention was to split the money between herself and
George Bush Jnr, each party taking $7 trillion each. Upon discovery,
Madame Wu Yi faced a long interrogation before she was allowed to die.
And then on Monday 11th August 2008, John Glover Roberts, the
seventeenth Chief Justice of the US Supreme Court, was caught by US
security agents trying to gain unlawful access to the global prosperity
funds. Roberts attempted to do this using out-of-date wire transfer
codes obtained from the Chinese and Japanese ambassadors (Zhou Wenzhong
and Ichiro Fujisaki). These ambassadors to the US were relieved of
their duties during the week beginning 21st July 2008. Both are now
Chinese punishment is swift if financial corruption is involved.
It may be too late for Wen Jiabao and Hu Jintao.
More background here and here. Updates here (07.04.09) and here
(10.04.09). And more about the Farm Claims and Omega fund packages
here....(( see below))
The investigation, which traces back to early 2008, deals with a major
illegal Chinese-US trading platform used to manipulate world equity
prices plus disguise and launder TRILLIONS of dollars of the bogus
derivatives, now known as toxic assets, that have collapsed the world
Note: The latest profits posted by banks aka Wells Fargo are based
on listing toxic derivatives as being worth 85 cents on a dollar
when they are actually worth less than half a cent.
Criminal referrals to the U.S. Justice Department have been made
naming former President George Herbert Walker Bush, former illegal
White House occupant George W. BushFRAUD, lifelong Bush Family business
partners Bill and Hillary Clinton, former Vice pResident Dick Cheney,
former Federal Reserve Chairman Alan Greenspan, former General Electric
Chairman Jack Welch,
current White House Chief of Staff and Israeli Mossad agent
Rahm Emanuel and current U.S. Supreme Court Justice John Roberts, in
this massive money laundry criminal theft operation.
Reference: Remember, though, who is the U.S. Attorney
General. None other than Marc Rich's stooge, Eric
Holder. (President Bill Clinton
illegally pardoned his crime partner, fugitive Marc Rich, a bagman for
the Bush-Clinton Crime Family Syndicate).
Holder is still covering up for the BushFRAUD Administration and
Karl Rove aka the framing of the former Democratic Alabama Governor Don
The Chinese government officials named in the referrals includes
Chinese Premier and Finance Minister of the Peoples Republic of China
Wen Jiabao, former Communist Party Chairman (now in a China prison)
Chen Liangyu, along with the head of the RED Chinese Secret Police in
North America, Francis K. Fong of Seattle, Washington.
Note: Also listed in the criminal referrals is the late Chinese
Madame Wu Yi.
Madame Wu Yi was actually tried and executed by the Chinese
government for STEALING $14 TRILLION from the Chinese Treasury and
laundering it through U.S. based Citibank and the Chicago based
brokerage firm Wasserstein Perella
and the former stock brokerage firm Morgan Stanley.
Current White House Chief of Staff and Israeli Mossad agent Rahm
Emanuel held a high level position at the Wasserstein Perella brokerage
Item: Evidence has surfaced that Bush-Clinton Crime Family
Syndicate fixer and year 2000 presidential election bagman James Baker
of Houston, Texas was able to procure $7 TRILLION of the $14 TRILLION
and park it in a secret Hong Kong bank account tied to both the former
illegal White House occupant George W. BushFRAUD and the current U.S.
Secretary of State, loser and lesbian in-the-closet Hillary Rodenhurst
Reference: The late Madame Wu had a very
close, personal relationship to former Citibank CEO and Clinton
Administration Treasury Secretary, Robert Rubin.
Madame Wu and the aforementioned Francis K. Fong were used as
financial bagmen and fixers during the late 1980s on behalf of the
Bush-Clinton-Iran-Contra-AmeriChina Global Management Group Ltd-Mena,
Arkansas drugs and arms trafficking black operation.
Madame Wu had a direct link to the Arkansas based Lippo
Group and helped provide the funding for
shipments of machine guns to contra rebels in Honduras.
All of this was covered up by the former Clinton era alleged
Independent Counsel Kenneth Starr, who illegally classified this
evidence under the cloak of "national security", but then allowed
former Republican Tennessee Senator and Hollywood actor and homosexual
in-the-closet Fred Thompson, along
with former First Lady, now U.S. Secretary of State, loser Hillary
access to this evidence, and then leaked the evidence to current
Washington Post editor and lifelong Naval Intelligence agent, Bob
Starr, Thompson and Hillary then proceeded to try to create a new
Chinese fundraising scandal in Washington D.C. that would allow the
classified evidence to be moved from Arkansas to D.C., allow alleged
Independent Counsel Starr to resign and go to Pepperdine University,
and get a new Independent Counsel that would continue the
Arkansas-Chinese cover up, protect both the Bushes and Clintons from
prosecution, and some how frame then Vice President Albert Gore Jr. for
making a fundraising phone call from the wrong office inside the White
How dare you, you conspiratorial tyrants,
kings and notable queens!
This TREASONOUS conspiracy, which in espionage parlance is called
a "Chinese bridge crossing", did not work thanks to the efforts of this
reporter and others.
Starr was forced to return to his alleged
investigation while a Justice Department
Special Master was the appointed to investigate Starr.
Starr later conspired with both the Clintons and the Bushes, along
with the Israeli Mossad run corporate American media filth aka the
Washington Post and the Drudge Report, to create the Monica Lewinsky
Israeli Mossad run Bill Clinton sex scandal
as a diversion and cover up, which was the fiasco of the alleged
Note: It was none other than former Clinton White House aide, now
Barack Obama Chief of Staff, Israeli Mossad agent Rahm Emanuel, that
hired Monica Lewinsky (Lewinsky herself a Mossad agent, whose doctor
was linked to shipments of machine guns to Honduras during
Now back to the European INTERPOL and U.S. Justice Department
financial TREASON evidence.
Everything now points to the jointly owned Chinese-British Bank of
Hong Kong, the previously reported illegal London trading platform
based in the United Kingdom, former Vice pResident Dick Cheney
administered Halliburton Corporation (the Omega account), the
Bush-Clinton Crime Family Syndicate-Jack Welch run General Electric
to a massive money laundry and derivative PONZI SCHEME that
has looted both the U.S. and Chinese Treasuries.
Item: SEC investigators, speaking on condition of anonymity, have
told this reporter that the lynchpin front corporation where the STOLEN
U.S. Treasury funds are parked is a secret Bush-Clinton Chinese alleged
national security account
named "Hampton Lampoon".
Reference: "Hampton Lampoon" is tied to the old Riady Lippo Group
and to Iran-Contra arms dealer Adnan Khashoggi.
India and Pakistan are other hiding places tied to the STOLEN U.S.
Secret accounts have been set up with the assistance of former
General Electric CEO Jack Welch and none other than current U.S.
Supreme Court Justice John Roberts and his business partner, none other
than former Clinton era Independent Counsel and still registered
lobbyist for the RED Chinese government, now Pepperdine University Dean
and professor, Kenneth Starr.
This TREASONOUS gang of filth, along with Bush Family crony James
Baker of Houston, Texas, arranged BRIBE money that was handed out to
Florida state election officials along with high level intelligence
agency employees of the space agency NASA
to cover up the electronic THEFT of the year 2000
presidential election in the previously reported five states of
Florida, Missouri, Tennessee, West Virginia and New Hampshire.
The NASA code for Tennessee was "rocky top"
and the NASA code for Florida was "gator"
Note: U.S, British and Chinese satellites were used to STEAL the year
2000 presidential election.
Item: Current U.S. Supreme Court Justice John Roberts, along with
the aforementioned Bush Family crony, closet pedophile James
Baker, helped organize a gang of thugs
used to intimidate and shut down Dade County, Florida year 2000
presidential election officials from proceeding
with a vote recount.
This was Gestapo activity on American soil and completely ignored by
the Israeli Mossad run criminal, corporate U.S. media enablers.
Note: Former General Electric CEO Jack Welch is also tied to the
massive derivative fraud involving Bank of America and the ENRON
that took place in California in the year 2001.
Both Jack Welch and John Roberts sold their ENRON stock in
December of 2000 and then conspired to allow ENRON to proceed with a
which was nothing more than financial obstruction of justice.
One last note on Supreme Court Chief Justice John Roberts,
who obviously belongs in a Federal prison.
Roberts was also part of a Supreme Court BRIBERY operation
involving associate Supreme Court Justice, fascist Antonin
Scalia, which involved the Coca Cola Corporation and
the THEFT a major financial copyright, which had ties to Bush Crime
Family attorney Theodore Olson, who later became U.S. Solicitor General.
Note: Olson had a major conflict of interest aka the Coca Cola
copyright case, which he did not disclose when he represented George W.
in the legendary Bush-Gore Supreme Court year 2000 presidential
Barack Obama aka Barry Sotero was adopted by
P.S. As we close this intelligence briefing we must sadly report
that alleged (not natural born citizen) U.S. President Barack Obama aka
was recipient of a massive BRIBE that was given to him by the
Bush-Clinton Crime Family Syndicate negotiated for him by
his current White House legal counsel "Skull and Bonesman" and
Bush-Clinton Crime Family Syndicate enabler, Greg Craig.
The funds given to Obama, which were part of the STOLEN
U.S.-Chinese Treasury funds, are now parked at a Citibank account in
the Kingdom of Saudi Arabia.
Note: This could explain, folks, why Obama aka Barry Sotero
is bowing before the Saudi monarch, King Abdullah.
At this hour, we might also mention that the New York Times is
sitting on a story, which deals with Citibank non-payment of back due
real estate taxes of their own clients.
Isn't this embezzlement, folks?
Maybe the real estate taxes went to Saudi Arabia.
P.P.S. The latest $1.6 BILLION that allegedly went from France to
Citibank and then returned back to France was a failed financial black
The $1.6 BILLION wire, which was actually $16 BILLION, originated
in RED China and then, with the use of electronic software, was recoded
in France and sent on to Citibank.
It was French-European INTERPOL that discovered this financial
trickery and fraud which led to the funds being returned to RED China.
Our Intelligence Agencies sources tell us that this financial
trickery was an attempt by both President Barack Obama and the RED
Chinese government to some how disguise and actually
end-run implementation of the Wanta-Reagan-Mitterrand Protocols.
This was a clear attempt by both Obama and the RED
Chinese to some how separate parked funds at
Citibank from the $4.5 TRILLION tied to the
currently held at the Bank of America in Charlotte, North
French President Sarkozy, once again, just recently phoned
President Obama as well as the Chinese Premier and told them he will no
longer tolerate this type of financial fraud and an attempt to place
France in the middle of this on-going financial world war.
Sarkozy is now convinced that Obama has no intention of paying
Wanta, that he is completely controlled by the U.S. NSA (National
Security Agency), which enables this financial electronic trickery, and
is completely subservient to the Bush-Clinton Crime Family Syndicate
worldwide Chinese money laundry.
Note: At last report, France still has more ICBMs than RED China.
MERCI BEAUCOUP General de Gaulle!
Stay tuned for future intelligence briefings, which will include
more on James Warren, formerly of the Chicago Tribune, his relationship
with Democratic Illinois state legislature Bobby Rush, Fidel Castro and
the year 2000 Florida Cuban Elian Gonzalez presidential election psyop.
And, of course, "Skull and Bonesman" Greg Craig's involvement.
We will divulge Warren's ties to the ongoing U.S. Attorney Patrick
Fitzgerald cover up and more on the criminal activity of both lifelong
FBI informants Reverend Jesse Jackson and Jesse Jackson Jr.
We will also reveal the real truth about the Somali
pirates, their link to the Bush-Clinton-Iran/Contra-Mena,
Arkansas operation, the ex-U.S. government employee Tim Osman aka 9/11
patsy Osama bin Laden and the Saudi financed Somalian Bush-Clinton
narcotics and arms trafficking money laundry, which has operated in
Somalia since the Clinton Administration intervened in Somalia in 1993.
So the Somali pirates are nothing more, folks, than U.S.
government employees and stooges tied to the Bush-Clinton-Mossad-Gary
Best "TRUE COLORS" mercenaries
that originated with Iran-Contra, moved on to Bosnia and the old
and then wound up parked in Somalia.
We can actually name two of the pirates that still operate.
Their last names are Sniffin and Boyle.
Both Sniffin and Boyle worked for George Herbert Walker Bush
during Iran-Contra and the Dick Cheney Halliburton Corporation as
private mercenaries during the war in Bosnia.
Reference: They were actually arrested two (2) years ago by U.S.
Naval forces and were higher than a kite on narcotics and actually
firing machine guns from a pirate boat at a U.S. Naval vessel.
After spending two months in a Somalian jail, they were then
Question: Does Bill Clinton have a part time job as a Somalian
We announce to the criminal government and its criminal
corporate media enablers, you are too corrupt to
Remember, We, the American People, who are well armed, will be
When it comes to the enemies of the American Republic and the
American Revolution in the 21st century, I close this intelligence
briefing tonight in the words of Thomas Jefferson in describing his
enemies, our greatest American said:
To live with them was a lot less sweet than ever to remember them.
Tonight we dedicate ourselves to the 2nd American Revolution and
making these enemies a memory.
We must remove them from American soil, and DO IT NOW!
At this hour, we live free or dies as Lafayette remains at
Brandywine and Albert Gore Jr. remains the natural-born
REAL duly elected year 2000 President of the United States.
President Albert Gore Jr.
TOM HENEGHAN'S EXPLOSIVE INTELLIGENCE BRIEFINGS
International Intelligence Expert, Tom Heneghan, has hundreds of highly
credible sources inside American and European Intelligence Agencies and
INTERPOL-- reporting what is REALLY going on behind the scenes of the
controlled mainstream media cover up propaganda of on-going massive
deceptions and illusions.
(( casper april 4th
4and 7 april))
And more about
the Farm Claims and Omega fund packages here:
Greetings and Salutations; ...(( says POOF....))
Happy Easter everyone. I won't say much today other than to
say, the pres had nothing to do with what happened this week, old man
bush's cousin did, and all the right people know it. It caused morework
to have to be done and they are the one's that had to do
Fulford made some things public this week, that have legs that go way
back with the old man and what his infamous statement of 'over my dead
body', meant. Someone once said to me, 'I don't care what you hear,
every last bit of it can be traced back to the old man.' Now he's
hiding behind women's skirts to do his dirt. His tears are crocodile
tears, so don't be fooled. Twice already, that I know of, they have
tried to take the pres out, the last time was in prague.
The end is here and Has been, so the rat's are trapped like
rats in a cheese factory and the screams are rising to a high pitch,
willing to do anything to avoid the inevitable, including throwing
anyone willing to believe them, under the bus, even blood relatives. No
honor, not even basic dignity. The east has reached the point where, no
one will know the moment of release, because few can be trusted, and
there's no telling where the cabal has ears, including in the white
Someone thought of me as a 'cheeleader', kind of tripping along
thru the tulips, saying 'all is well', having no consciousness of what
I know or where I've been. Quite frankly, I was a bit suprised by the
info fulford dropped because I've been sitting on that stuff for quite
a while, thinking it was not my job to 'tell it'. Tho I know
peoplesitting in federal prison right now because of their intimate
knowlege of the details of the gold set out here to support the new
Don't for an instant think a dragon is impotent, in modern
times. Few will ever see a dragon go on the move, they'll only be
shocked when they find themselves being burned into a crispy critter.
Blow hards make big noises when they go to do something, not they who
quietly 'own' their power. 'Art of War'.
To those who gave up, you will be shocked at the arrival. To
those who've held their powder and trusted something beyond themselves,
you are being vindicated and freed to do what is in your heart to do.
You will hear more and more crap as those who've been in power try to
deflect blame from themselves for what has went down illegally for over
100 years. Criminals very rarely admit guilt.
Watch what happens to Goldman Sachs, where great silence in
participation has been not forth coming. Oh, they are fine, are they?
That's the head of the pimple, that needs to be popped, just watch it,
you don't want any of that on you! People think geithner is protecting
them, how about he's managing the mobs about to descend on these
people, as the pres said, 'we're the only thing standing between you
guys and the pitchforks'. It's coming and only the most arrogant and
fearful, think not.
Consultations are being done, email me if
needed. .....(....) Love and Kisses,
.... more from fw10.....
The French Connection The ground
shaking radio show that will snap your neck in odd directions if you
listen for a while /// Daryl Bradford Smith
The French Connection disavows any contact with Nazis, Fascists or
Racists in any form.
More than likely, all of these new groups are Government Psy-Ops.
CII with guest
Our audio files are not copyrighted,
so please pass them around.
The views expressed
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Connection. However, we want our guests to follow high standards so
that the criminals we are trying to expose do not have any reason to
condemn us. Please read this article for more details.
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AND a link from
The Life of
an American Jew in Racist Marxist Israel
Written in 1985
by Jack Bernstein
OF THIS BOOK ARE EXPECTED TO BRING A STRONG REACTION FROM THE ZIONIST
I am well
aware of the tactics of you, my Zionist brethren, use to quiet anyone
who attempts to expose any of your subversive acts.
If the person
is a Gentile, you cry, "You're anti-semitic" which is nothing more than
a smokescreen to hide your actions.
But, if a Jew
is the person doing the exposing, you resort to other tactics.
* First, you ignore the charges, hoping the information will not be
given widespread distribution.
* If the information starts reaching too many
people, you ridicule the information and the persons giving the
* If that doesn't work, your next step is character
assassination. If the author or speaker hasn't been involved in
sufficient scandal you are adept at fabricating scandal against the
person or persons.
* If none of these are effective, you are known to
resort to physical attacks.
But, NEVER do
you try to prove the information wrong.
you start your efforts to quiet me, I OFFER THIS CHALLENGE:
assemble a number of Zionist Jews and witnesses to support your
position; and I will assemble a like number of anti-Zionist,
pro-American Jews and witnesses.
Zionists and the Anti-Zionists will state their position and debate the
material in this book as well as related material — the debate TO BE
HELD ON PUBLIC TELEVISION.
the information and let the American people decide for themselves if
the information is true or false.
ISN'T THAT A
you will willingly accept the challenge if what I have written is false.
But, if you
resort to crying, "Lies, all lies," and refuse to debate the material
you will, in effect, be telling the American people that what I have
written are the true facts.
(This honest and
courageous Jew was assassinated some years ago, by MOSSAD).
..(...) My Farewell to Israel, Thorn of the Middle East
By Jack Bernstein
Before Israel became a state in 1948, Jews worldwide were filled with
Zionist propaganda that Israel would be a homeland for all Jews, a
refuge for persecuted Jews, a democratic country and the fulfillment of
I am an Ashkenazi Jew who spent the first 25 years of my life in
the United States, the country that has given ALL Jews freedom and the
opportunity to prosper — and prosper we Jews did, to the point that one
portion of the Jews (the Zionists) have gained a position of political
and economic dominance in the U.S.
To fully understand the story I am about to tell, it is important
that you understand what Zionism really is. Zionist propaganda has led
the American people to believe that Zionism and Judaism are one and the
same and that they are religious in nature. This is a blatant lie.
Judaism is a religion; but Zionism is a political movement started
mainly by East European (Ashkenazi) Jews who for centuries have been
the main force behind communism/socialism. The ultimate goal of the
Zionists is one ONE-WORLD GOVERMENT UNDER THE CONTROL OF THE ZIONISTS
AND THE ZIONIST-ORIENTED JEWISH INTERNATIONAL BANKERS.
Communism/socialism are merely tools to help them accomplish their
I was a Victim of Zionist Propaganda
After the 1967 War, we Jews were filled with pride that 'our
homeland' had become so powerful and successful. Then too, we had been
filled with the false propaganda that Jews in America were being
persecuted. So, between 1967 and 1970 approximately 50.000 American
Jews fell for this Zionist propaganda and migrated to Israel. I was one
of those suckers.
After being filled with all this false Zionist propaganda, I felt
that I would have a better chance to succeed in the new Jewish state.
There was an added enticement, the spirit and challenge of pioneering
and of helping my fellow Jews.
I had no emotional conflict with leaving the U.S. because I was
still able to keep my U.S. citizenship and could return to the U.S. at
any time. You see, Jews are allowed to be citizens of both Israel and
some countries — U.S. is one of those countries. The U.S. government
allows a Jew to be a citizen of both U.S. and Israel.
German Americans cannot be citizens of both the U.S. and Germany.
Italian Americans cannot be citizen of both U.S. and Italy.
Egyptian-Americans cannot be citizens of both the U.S. and Egypt . . .
BUT, a Jewish American can be a citizen of both Israel and the U.S.
THIS IS A GOOD EXAMPLE OF THE POWER THE ZIONIST JEWS HAVE OVER THE U.S.
I Arrive in the "Jewish Paradise"
Before leaving for Israel, a Jewish friend of mine had made
arrangements for me to stay a few days with her sister, Fawzia Daboul
and her spinster aunt. After arriving at Lod Airport just outside of
Tel Aviv, I took a bus to the home of Miss Daboul and her aunt. When I
saw Fawzia, it was love at first sight. I started calling her 'Ziva,'
her Hebrew name. Ziva is a Sephardic Jewess from Iraq who, like myself,
had fallen for the Zionist propaganda and had migrated to Israel. She
was employed as a hairdresser.
After visiting with Ziva and her aunt for two days, I left to
spend 6 months at Kibbutz 'Ein Hashofet' one of the well over 150 such
communes then operating in Israel. Since then, many more have been
started — especially in the territory taken from the Palestinian Arabs.
A kibbutz is a farming and sometimes industrial venture. It is
important to explain that Israel's Kibbutz system is a Marxist idea
brought to Israel by the Ashkenazi Jews who migrated to Israel mainly
from Poland and Russia. These Jews are part of that bunch of Jews know
as the BOLSHEVIKS. Before 1917, they were the force that laid the
foundation for the Bolshevik Revolution of 1917 in Russia and the start
Again, I want to point out, even emphasize, that it is some of
that same bunch of Ashkenazi, Communist/Socialist Jews who migrated to
Israel, gained control of the Zionist Movement and have dominated the
government of Israel since its beginning in 1948.
Now, back to the kibbutz —
Prior to 1967, most of the work on the Kibbutz was done by Jews.
But, since the 1967 War, the work has been done by Arabs who are paid a
very low wage, and by volunteers from overseas. Members of the Kibbutz
(all Jews) share all things equally. They receive clothing, food and a
small allowance. All profits from the venture go into the Kibbutz
account for future use. EACH OF THESE KIBBUTZ ARE AFFILIATED WITH ONE
OF ISRAEL'S MARXIST PARTIES ranging from SOCIALIST TO HARD-CORE
The Kibbutz I was in was not hardcore communist. Yet, I was happy
to leave after 4 months — two months earlier than originally planned.
During the time I was working in the Kibbutz, I carried on courtship
with Ziva. She was one of the reasons I left the Kibbutz after only 4
months — we were to be married.
Our Marriage Created Problems
The marriage ceremony was held in the Sephardic Synagogue. The
ceremony was simple but beautiful. Ziva and I were happy, but our
marriage created serious problems. You see, Ziva is a Sephardic Jewess
and I am an Ashkenazi Jew. For an Ashkenazi Jew to marry a Sephardic
Jew is frowned upon in Israel by the ruling Ashkenazis. To understand
why this is the case, you must realize the difference between the
Sephardic and Ashkenazi Jews.
The powerful Zionist propaganda machine has led the American
people to believe that a Jew is a Jew — one race of people and that
they are "God's Chosen People". I will deal with the "God's Chosen
People" LIE later. First, it is important for you to understand that
Jews are NOT one race of people.
There are two distinct groups of Jews in the world and they come
from two different areas of the world — the Sephardic Jews from the
Middle East and North Africa and the Ashkenazi Jews come from Eastern
Europe. The Sephardic is the oldest group and it is they, if any, who
are the Jews described in the Bible because they lived in the area
described in the Bible. They are blood relatives to the Arabs — the
only difference between them is the religion.
The Ashkenazi Jews, who now compromise 90% of the Jews in the
world, had a rather strange beginning. According to historians, many of
them Jewish, the Ashkenazi Jews came into existence about 1,200 years
ago. It happened this way:
At the eastern edge of Europe, there lived a tribe of people know
as the Khazars. About the year 740 A.D., the Khazar king and his court
decided they should adopt a religion for their people. So,
representatives of the three major religions, Christianity, Islam and
Judaism, were invited to present their religious doctrines. The Khazars
chose Judaism, but it wasn't for religious reasons. If the Khazars had
chosen Islam, they would have angered the strong Christian world. If
they had chosen Christianity, they would have angered the strong
Islamic world. So, they played it safe — they chose Judaism. It wasn't
for religious reasons the Khazars chose Judaism; it was for political
Sometime during the 13th century, the Khazars were driven from
their land and they migrated westward with most of them settling in
Poland and Russia. These Khazars are now known as Ashkenazi Jews.
Because these Khazar Ashkenazi Jews merely chose Judaism, they are not
really Jews — at least not blood Jews.
Throughout their history, these Polish and Russian Ashkenazi Jews
practiced communism/socialism and worked to have their ideas
implemented in these countries.
By the late 1800s significant numbers of these communist/socialist
Jews were found in Germany, the Balkans and eventually all over Europe.
Because of their interference in the social and governmental affairs of
Russia, they became the target of persecution by the Czars. Because of
this, migration of these communist/socialist oriented Jews began. Some
went to Palestine; some to Central and South America; and a large
number of them came to the U.S.
Political Zionism is Born
In 1897, the First Zionist Congress was held in Basle,
Switzerland. At this Congress, it was decided to work toward the
establishment of a Jewish state and a search for land on which to build
this Jewish state began. Great Britain offered the Zionists land in
Africa. This the Zionists rejected: they wanted Palestine!
At the time, Palestine was inhabited by a half a million
Palestinian Arabs and a few Palestinian Jews who are blood related and
who had lived together in peace for centuries. With Palestine as their
choice for a homeland, European Ashkenazi Jews began migrating to
Palestine. As I explained earlier, most were communist/socialist
oriented with some of them being radical Bolshevik communists whose aim
is world domination.
So when you think of Jews, especially as related to Israel, keep
in mind that there is a great difference between Sephardic and
Ashkenazi Jews. They are not one united people. They are divided
socially, politically and especially racially. Now, back to Ziva, a
Sephardic Jewess and I an Ashkenazi Jew, and our lives in the so-called
democratic country of Israel.
Sephardic Jews — Second Class Citizens
For the first three years of our marriage, it was necessary for us
to live with Ziva's aunt. This was because of the critical housing
shortage in Israel and because of racism. Housing is allotted as
* Ashkenazi Jews who have lived in Israel for
many years are given first choice.
* Second in line are Ashkenazi Jews from Europe —
especially if they are married or marry an Israel-born Ashkenazi Jew.
* The next favored are Ashkenazi Jews from the U.S.
— especially if they marry an Israeli born Ashkenazi.
* Sephardic Jews have the next choice of whatever
housing is left.
* At the bottom of the list are Moslems, Druze and
Opportunities for employment follow the same pattern: Ashkenazi
Jews get the choicest jobs, Sephardic Jews next, and Moslem, Druze and
Christians fill the menial jobs with a great many left unemployed. Even
through I was an Ashkenazi Jew from the U.S., I was placed lower on the
list for housing because I married a Sephardic Jewess.
Being denied housing was my second experience of the intense
racism that exists in Israel. From the very beginning of my arrival in
Israel, many slurs were yelled at me. We American Jews were merely
being tolerated. Because Israel, to survive, must depend on gifts of
American Jews and the sale of worthless Israeli Bonds in America, there
is jealousy among the elite Israeli Ashkenazi Jews toward American
Jews, even if the American Jews are also Ashkenazi. Many times I was
told, "Go Home!" and, "We want your money, but not you."
However, there was a portion of the American Jews who were welcome
and given favored treatment. They were the card-carrying communist
Exposure is the Solution
In 1920 Henry Ford, Sr. wrote, "If the American people ever become
aware of the truth about this coterie of Jews, it would be the
solution". What Henry Ford meant was: If the American people ever
learned the truth, they would take whatever action necessary to stop
this bunch of Zionist/Bolshevik Jews.
Many individuals and groups are in the process of trying to inform
the American people about the danger they present to America and to the
free world nations, but it is still far too little to be effective. It
would be in the interest of nearly every person who is aware, to
quietly but energetically help to spread the information to others.
People who have an interest would include:
* The average American who wishes to preserve
his or her freedom.
* Arab American who wish to remove the thorn of
oppression in the Mideast.
* People from the captive nations of Europe who wish
to rid their homelands of the Bolshevik scourge.
* Ethiopian Americans and other AfroAmericans who
have seen their homelands taken over by these Bolshevik/communists.
* Chinese Americans, Vietnamese Americans, Korean
Americans and other Oriental Americans who have felt the heavy hand of
Since each and everyone of these nationalities are fighting the
same destructive enemy — the Zionist/Bolshevik (communist/socialist)
Jews, it would be more effective if all joined hands in a cooperative
I might add that leading the fight against the Zionist Jews should
be the pro-American Jews, like myself, who love America and realize the
destruction the New York/Moscow/Tel Aviv has brought to the world.
A Holy Land State
Since the land now occupied by Israel is rightly referred to as
the 'Holy Land,' all Christians, Moslems, and anti-Zionist Jews should
cooperate in an effort to transform Israel into a demilitarized HOLY
LAND STATE under international supervision. Then, from this holy land
could come the Word of God instead of torture, war and drugs.
The Real Issue
I want to emphasize a key point of this book. It is a waste of
time to talk about fighting communism and the problems it has caused;
and it is a waste of time to talk about the international problems
facing America UNLESS the main cause of those problems has been
identified. The cause of course is the Zionist oriented Jewish
International Bankers and the Zionist Jews who operate behind a cloak
..(..) The late Jack Bernstein was a rarity—an American Zionist
who actually "returned" to Israel, not for a vacation or to summer on a
kibbutz, but to live and die in Israel building a Jewish nation. What
makes him almost one of a kind, though, was his ability to see through
the sham and hype to the oppressive, racist, parasitic character of
Zionism as practiced in modern Israel, and his courage to denounce it
with the force and fervor of an Old Testament prophet.
Bernstein tells how it was, how it is, and how it will be—as long
as American taxpayers tolerate their leaders’ bowing to every wish and
whim of the Ashkenazic (Eastern European) elite which rules Israel. He
takes the reader on a guided tour through Israel’s history,
institutions and values, demonstrating how the best traditions of
Biblical Judaism have been obscured, corrupted, or cast out to make way
for the totalitarian, militaristic, chauvinist monster that is the
Israel of today.
Bernstein tells how it was, how it is, and how it will be—as long
as American taxpayers tolerate their leaders’ bowing to every wish and
whim of the Ashkenazic (Eastern European) elite which rules Israel. He
takes the reader on a guided tour through Israel’s history,
institutions and values, demonstrating how the best traditions of
Biblical Judaism have been obscured, corrupted, or cast out to make way
for the totalitarian, militaristic, chauvinist monster that is the
Israel of today.
In Racist Marxist Israel is an irrefutable demonstration that
Israeli Jews—and their Zionist kindred around the world—maintain a
double standard on political morality and ethics, and that they support
themselves, indeed wax fat on, the sweat and tears and toil and money
Many Jews—and many more non-Jews—won’t like this book. Its
author’s insistence that what’s sauce for the Gentile goose must also
be sauce for the Zionist gander will leave a bitter taste in the mouths
of large segments of America’s self-hating, sackcloth-and-ashes set.
All readers of good will, however, will hail Jack Bernstein for his
long and arduous march, from dual-loyalist to practicing Zionist to
true-red-white-and-blue American patriot, a twentieth-century Paul
Revere for all real Americans, Jews and Gentiles alike....(...)
Apr 8, 2009 ...
Richard Perry Feasts of the Lord, A Brief
://www.lastdaysmystery. info/ Tonight Richard
Perry and I exposre the 7 ...
CII with guest James Dickie
ON THE ZIONIST HAVE BEEN DOING TO YOU...Mp3 Stream. this is an audio
post - click to play ... Iamthewitness
Sacred Name Of YAHWEH ...
Is Nobody's Friend
Dr.Albert D. Pastore quotes Jack Bernstein
: "I am well
aware of the tactics YOU, my Zionist brethren, use to quiet anyone who
attempts to expose any of your ...
www.rense.com/general71/zzon.htm - 53k
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it up to you. If you want Rumor Mill News to continue...
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just can't remember each month to add something to the Chipin... then
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OBAMA PREFERS 'TRASHETS' TO THE DEBT-FREE SOLUTION
STABILISATION WITHOUT DEBT TO BE HANDLED FROM LONDON
Monday 13 April 2009 00:01 ((A M))
• Operating the $ Refunding from London without US Government
(1) Massive ongoing windfall tax accruals to the BRITISH Treasury
given that all funds resident in the United Kingdom jurisdiction for 24
hours are taxable by the Inland Revenue. This makes the UK Refunding
proposal of extreme interest to Her Majesty's Government and the UK
(2) Massive ongoing windfall benefits to the UNITED STATES
Treasury given that it will also receive a cascade of tax accruals from
this independent private sector Refunding Program.
(3) The necessary refinancing of the UK and US banking systems ON
THE BOOKS with no input from either Government and NO CORRESPONDING
DEBT CREATED IN THE BACKGROUND.
(4) GOOD (i.e., on-balance sheet, taxed) money which will CHASE
OUT THE BAD MONEY that the crass US Fraudulent Finance concoction will
• WHITE HOUSE WILFULLY REJECTS SOUND FINANCE IN ORDER TO RETAIN
• GRIEVOUS DISPLAY OF ARROGANCE AND TREASON AGAINST THE AMERICAN
• PRIVATE SECTOR REFUNDING WITHOUT OFFICIAL INVOLVEMENT
IS THE ANSWER
• NEW GENERATION OF LETHAL 'ASSETS' ('TRASHETS')
TO BE UNLEASHED ON THE WORLD
• GEITHNER-SUMMERS' FRAUDULENT FINANCE
GENERATES HUGE UNNECESSARY DEBT
• THE ESSENCE OF THE OBAMA WHITE HOUSE'S DE FACTO FINANCIAL
NAVIGATING THIS REPORT:
(1) PRIVATE SECTOR REFUNDING METHOD THAT YIELDS TAXABLE REVENUE
AND NO DEBT
(2) ERRONEOUS AND OBTUSE FORMULA THAT CREATES COLOSSAL UNNECESSARY
(3) BY DEFINITION, THE PRIVATE SECTOR PRODUCES TAXABLE REVENUE
(4) THE PUBLIC SECTOR CAN ONLY PRODUCE MORE AND MORE DEBT: IT
CAN'T TAX ITSELF
(5) U.S. FINANCIAL GURUS 'COMING LATE TO THE PARTY'
ARE PICKING AT YOUR CORPSE
(6) SCANDALOUS OBFUSCATION OF FRAUDULENT FINANCE BY THE G-20
(7) OBAMA WANTS TO PROCEED WITH A NEW GENERATION OF FRAUDULENT
(8) OBAMA THEREFORE APPEARS TO HAVE DOUBLE-CROSSED THE QUEEN
(9) THE MEETING AT THE HIGHEST LEVEL IN LONDON ON 1ST APRIL 2009
(10) KICKING AGAINST THE PRICKS: WHAT WASHINGTON INTENDS TO DO NOW
(11) WAVE OF FRAUDULENT FINANCE WILL GENERATE REVENUE AT HUGE COST
(12) THE REAL MOTIVE: THE CROOKS ARE TERRIFIED OF LOSING CONTROL
• THE LEGALISATION
OF FINANCIAL CORRUPTION
• REASON FOR PRESENTING THIS ANALYSIS
• CHAPTER ONE:
THE LEGALISATION OF FINANCIAL CORRUPTION:
THE CREATION OF SECURITISATION AND CREDIT DEFAULT SWAPS
• CHAPTER TWO:
THE LEGALISATION OF FINANCIAL CORRUPTION:
DESCRIPTIONS OF THE RESULTING FINANCIAL FRAUDS AND SCAMS
• DESCRIPTIONS WITH CHARTS OF DERIVATIVE SCAM METHODOLOGY
• In mid-March we published: International Currency Review Volume 34,
#2 on Systemic Fraudulent Finance and The Legalisation of Financial
Corruption. Also published recently are issues of our titles The Latin
American Times, Economic Intelligence Review, London Currency Report,
Interest Rate Service and Arab-Asian Affairs. For details, see the
second white panel on the Home Page.
• For further details, please check the second white panel on the
• Globalist hegemony ideology and practice is comprehensively
debunked in the Editor's study entitled The New Underworld Order, which
can be ordered via the books section of this website. If you want to
see what may well happen if the angle of decline steepens much further,
you could do worse than also order a copy of The Red Terror in Russia,
by the contemporary Russian eyewitness Sergei Melgounov, another Edward
Harle Limited book available direct from this website. Also, the
Editor's study entitled The European Union Collective, which proves
that the EU is a long-range strategic entrapment operation to reduce
European countries to satrap status within a German empire using
economic strategy for relentless economic warfare purposes, can be
• ADVERTISEMENT: Details of the Internet Security Solution
software offered by this service in conjunction with a donation are
appended at the very foot of this report, below the legal data. See
also the catalogue by clicking on World Reports Limited and scrolling
down to the bottom.
• DONATIONS: You can help finance these exposures (which the
Editor has to prepare on top of his normal publishing responsibilities)
by sending us a donation. Press Make a Donation, which is live, and it
takes you straight to our ultra-safe ordering system, which accepts
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• VIRTUAL REALITY VERSUS REALITY:
Many Internet users do not seem to understand that a huge ongoing
mind-control and influence-building offensive (Operation Mockingbird
Mark II) has been mounted against the American people by the
controlling Intelligence Power, which is a key instrument of the World
Revolution. This evil operation has been running and corrupting for
At least 60 US websites pump out or elaborate unprovenanced
'virtual reality' into which the nefarious Intelligence Power and its
key operatives headed by George Bush Sr., can insert their chosen lies
'du jour'. The purpose of the incessant barrage of lies, diversions,
agitation and poisonous hate propaganda and other manifestations of
this elaboration of the art of Dr Josef Goebbels, is to cover up the
colossal catalogue of crimes that these agents of the Intelligence
Power and their corrupted financial sector associates at home and
abroad have perpetrated and continue to commit against the American
people and the Rest of the World.
One technique used by this counterintelligence apparat is to
intermingle serious analysis with New Age drivel and MK-Ultra-style
mental manipulation designed to waylay those who have no sound
grounding in faith and who drift in the wind, like the 19th century
British Prime Minister Lord North, who was known as 'the cushion'
because he resembled the shape of the last person who sat on him.
Although we make no claim to infallibility, unlike the Pope, this
service is not engaged in the devious and reprobate promulgation of
virtual reality, which the targeted population is meant to confuse with
reality. We focus instead on the truth as perceived to the best of our
ability at the time of posting, however uncomfortable that may be for
the crooks exposed in the process.
This does not mean to say that we are not from time to time
deceived, like everyone else, by these odious liars and deceivers: but
our focus at all times is on truth. We play no mind games, like these
unspeakable reprobates, many of whom are paid to confuse, redirect and
And finally, this is done not because it is enjoyable, but so that
the Editor can at least say to his daughters and their families: I
tried to make the world a better place. In this connection, a Rabbi
friend of the Editor told him once that his Jewish teaching is that
'you are required to try, but you are not expected to finish'.
Christians are required to finish: so we will continue the fight.
• A VERY SERIOUS SITUATION REGARDING THE EDITOR OF THIS SERVICE IS
PENDING BEHIND THE SCENES. Unless this matter (which we cannot go into
right now) is resolved in short order, the unintended
consequence will necessarily be a serious escalation of
the exposures, which all the official parties concerned can
avoid if they behave sensibly. At the moment there appears to be a
But the Editor will be placed in an impossible position if
the wrong decision is taken.
Story FRSA, Editor and Publisher, International Currency Review
and associated intelligence publications and information services. See
this site for details and ordering facility.
• CORRESPONDENCE TO THE EDITOR: We routinely, automatically DELETE
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• The CONTACT US facility is found in the red box throughout this
NEW REPORT STARTS HERE:
(1) PRIVATE SECTOR REFUNDING METHOD THAT YIELDS TAXABLE REVENUE AND NO
For longer than we can remember we have been pointing out that
THERE IS A SIMPLE, STRAIGHTFORWARD, TRANSPARENT SOLUTION to the
For longer than we can recall, we have stressed that the decisions
taken by the former Bush II Administration via the corrupted Treasury
headed by that criminal financier Henry M. Paulson Jr., and the new
even more convoluted decisions taken by the Geithner Treasury, are THE
REVERSE OF THE SAID SIMPLE, STRAIGHTFORWARD SOLUTION to the financial
The Obama Administration and the Geithner Treasury have leveraged
the Fraudulent Finance formulae developed under the corrupt Paulson
Treasury, with the same objective:
• To reignite and reboot the moribund Fraudulent Finance
derivatives ‘Structured Products’ Ponzi parallel financial system, also
known as a colossal BANKER’S RAMP, that was closed down between 10th
and 12th September 2008 as reported by this service, when the $14.0
trillion was placed out of these criminal operatives’ reach.
Given the above, it follows that this obtuse attempt to continue
the Ponzi Fraudulent Finance represents a US NATIONAL SECURITY ISSUE
and should be addressed as such.
Let’s not mince words here:
• Continuing with the Fraudulent Finance formulae concocted by the
US Treasury and the Federal Reserve presents a grave threat to the
stability, prosperity and the future of the Republic: and all concerned
with this cynical rearguard operation to revive the collapsed
derivatives sector should be handled with the severity reserved for
them under the Patriot Acts, that lay down definitions of ECONOMIC AND
which is what these people are perpetrating.
(2) ERRONEOUS AND OBTUSE FORMULA THAT CREATES COLOSSAL UNNECESSARY
It is possible, but unlikely, that the President of the United
States has not understood this. So let us, once again, explain where
his perverse advisers have led him astray.
• FACT: The TRUTH is always simple. LIES are always complex, and
become ever more so because successive lies have to be perpetrated in
order to buttress the earlier lies. A policy built on lies will
COLLAPSE. Like plutonium, lies have a half-life: they decay.
• As will be seen below, derivatives are so complex that no-one
can understand what is going on: which is the WHOLE POINT. They’re
based on LIES. They are FRAUDS.
• SUCH A STRUCTURE IS LIKE AN INVERTED PYRAMID:
As the original lie at the base of the inverted pyramid decays, fresh
lies have to be invoked, like scaffolding, to prop up the earlier lies.
Eventually, as the lies proliferate, the scaffolding of lies which is
underpinning the inverted pyramid on either side becomes unstable, too,
and eventually the entire structure collapses.
• Obama therefore faces, sooner rather than later, the absolute
collapse of the pyramid of lies and diversionary financing deceits that
his wilfully misguided colleagues and advisers have fed him.
So let us reiterate the SIMPLE TRUTH that the President needs to
(3) BY DEFINITION, THE PRIVATE SECTOR PRODUCES TAXABLE REVENUE:
Here are the basic economic FACTS of the matter:
• By definition, the private sector generates REVENUE which the
• It follows, therefore, that the SIMPLE SOLUTION to the entire
crisis is to ALLOW THE PRIVATE SECTOR to recoup the situation using the
financial trading techniques that have hitherto been used clandestinely
and corruptly and which the criminal financiers want to continue
undertaking below the radar so that they don’t have to pay tax.
• These trading techniques are NOT ILLEGAL. However they become
illegal when performed clandestinely, with the proceeds held UNTAXED,
off-balance sheet, and placed in secret offshore accounts. In other
words, when combined with TAX EVASION, they become illegal.
• So the simple, straightforward, transparent ANSWER to the crisis
is crystal clear. PRIVATE SECTOR trading on-balance sheet yielding
WINDFALL TAXABLE REVENUES should proceed immediately, and should have
started up in June 2007 after the Group of Seven Financial Powers
agreed in northern Germany
that this was the way forward, reapproving this solution in 2008.
• FACT: By
blocking this SIMPLE, STRAIGHTFORWARD SOLUTION – the Refinancing
Programme – the Bush Administration compromised the national
security of the United States, committed treason against the Republic
and its people, and engaged in ECONOMIC AND FINANCIAL TERRORISM.
The Obama Administration is continuing down the same futile path,
and since it has the appalling example of its predecessor to
contemplate, it should know better. So it is compounding the errors of
its predecessor régime, and is likewise committing ECONOMIC AND
FINANCIAL TREASON by choosing the PERVERSE ROUTE,
and failing to apply THE CORRECT SOLUTION.
(4) THE PUBLIC SECTOR CAN ONLY PRODUCE MORE AND MORE DEBT: IT
CAN'T TAX ITSELF:
By definition, the public sector generates DEBT. The public sector
PRODUCES NOTHING and so, by definition, cannot generate revenue. It
CANNOT TAX ITSELF, except through its payroll taxes. Since it cannot
generate REVENUE, it relies on the taxpayer, on the creation of debt
and also on printing money to finance its endlessly permissive
• Therefore, the convoluted inventions of the Geithner Treasury
and of the Bernanke Federal Reserve to reboot the derivatives sector
represent perverse ARTIFICIAL CONSTRUCTS which, by definition, generate
DEBT, not REVENUE.
THIS IS ENTIRELY UNNECESSARY: see above.
• To embark upon complex Fraudulent Financing operations under the
cover of ‘stimulating the economy’ but in reality, in order to revive
the derivatives sector which has collapsed – and which is now widely
understood to represent a MONUMENTAL FRAUD given that the so-called
‘Structured Products’ generally have NO RECOURSE to the underlying
original source of funds – is to engage wilfully in FINANCIAL TERRORISM
against the American people and the Rest of the World.
• Now as we have all observed, the Obama Administration thinks it
can continue down this path. We have news for this President’s
headstrong ‘experts’. Your tired formula is rotten and it will
collapse. There are liable to be few takers for your artificially
revivable fraudulent ‘assets’ scheme; and although you have wrapped
your criminal intentions in a dense fog of complexity consistent with
the pack of barefaced lies that you are marketing,
you are trying to build your house on sand.
As you have already doubtless observed, you can’t even build the
house, because the foundations are sinking into the sand before you
even start bricklaying.
• So, if President Obama prefers for his Administration to run
into the sand, by all means carry on! Just keep going with this
revamped Fraudulent Finance formula, and see where it leads you. You
are collectively as arrogant and perverse as your predecessors: and you
doubtless imagine that because you think 'they got away with it', you
WRONG! You are careering towards DISASTER.
• Since you know perfectly well what the CORRECT SOLUTION is, but
are simply UNWILLING TO PURSUE IT, you cannot escape condemnation as
perverse perpetrators of Financial Fraud and Economic and Financial
Terrorism. It’s not as though you are ignorant. Not at all. We know for
a fact that you are aware that the CORRECT SOLUTION is to proceed with
the trading in the private sector without Government involvement,
and to tax the resulting REVENUES, which will finance the entire
Obama Programme, with money to spare – creating NO DEBT in the process.
• TO REPEAT: By NOT pursuing this course, you are explicitly and
wilfully engaging in Economic and Financial Terrorism. You may believe
that the people don’t yet ‘get this’. But believe us, they will, they
will. And when they do, those lamp posts that your friend George Bush
Sr. spoke about, may be used for ‘other purposes’.
(5) U.S. FINANCIAL GURUS 'COMING LATE TO THE PARTY' ARE PICKING AT
As mentioned in the preceding report, it has been our experience
over decades that after we have stuck our necks out and our predictions
are seen to have been correct (which is simply a question of making
sure that one is following the relevant threads, and not blindly
running after diversions), prominent economists, Nobel Laureates and
other members of the community of the ‘Great and the Good’ pile in and
‘reveal’ the realities that we have previously exposed.
A number of these fragrant characters – Messrs Stiglitz, Black and
Sachs, for instance – are at this time engaged in precisely such
‘revelations’, although NONE of them are stating what needs to be said:
namely that you are promoting the doomed legalisation of Fraudulent
Finance. For whatever reason, such people can't bring themselves to
employ the word: CRIMINAL.
But you can disregard almost every word they publish! Because what
they are doing is criticising and pulling apart
Geithnerism-cum-Bernankeism, which is a completely sterile activity!
Geithnerism doesn’t need to be pulled apart because it’s irrelevant: it
is going to collapse and the whole of the financial world knows it. And
is rightly terrified that it will.
• And have these prominent ‘Establishment’ economists yet come up
with the alternative
(there’s only ONE alternative)?
• Correct: They have NOT. What Stiglitz, Black and Sachs OUGHT all
to be promulgating now is the CORRECT SOLUTION outlined above:
Transparent, on-balance-sheet, fully taxed, visible trading operations
in the private sector, generating ONGOING REVENUE – with the Government
OUT OF IT ALTOGETHER and just raking in the windfall TAX REVENUES.
Instead of rabbiting on about the intricacies of Geithnerism,
writing convoluted articles which make them look good but which go
nowhere, they should be applying their acquired influence to FORCE this
Government onto the right track. Yes, that would mean demanding the sacking of Geithner
and Summers and placing Bernanke on notice that he must do what
the President demands, or else.
And of course this all presumes that we have a President who knows
what he is doing and wants to do the right thing, which are pretty tall
assumptions but have to be made here for the sake of this argumentation
– even though the President now appears to have lied to and
double-crossed The Queen [see below]
and is intent on going on with a false revival of the derivatives
(6) SCANDALOUS OBFUSCATION OF FRAUDULENT FINANCE BY THE G-20:
We always thought that the purpose of suddenly elevating the Group
of Twenty to idolatry status was actually a device to diminish the
importance of the Group of Seven (G-7), for the SPECIFIC purpose of
smothering the G-7-Approved Refinancing Programme of transparent
on-balance-sheet trading operations yielding taxable REVENUE without
And so it has proved – since, as noted in the preceding report,
the G-20 Communiqué made NO MENTION of derivatives, Structured
Products, Fraudulent Finance, Ponzi schemes, and all the other
aberrations – assuming that the Press Room would buy this omission
Well, the Editor, who didn’t waste time attending the London
Canning Town circus, turned out to be the ONLY COMMENTATOR, until The
Times woke up the following Monday, to have NOTICED that there was NO
MENTION of the underlying Fraudulent Finance causes of the crisis
• Which means that, since Gordon Brown organised the circus, and
was therefore in a position to lay down what would be expected from it,
he may be a direct participant in this deception and fully supports the
continuation of the Fraudulent Finance rather than the implementation of
the G-7 transparent DEBT-FREE Refunding Programme,
which is the
sole SOLUTION to the crisis.
(7) OBAMA WANTS TO PROCEED WITH A NEW GENERATION OF FRAUDULENT
Having returned home from his eight-day tour, to attend a Jewish
Seder in the White House (the first time this has ever occurred),
President Obama will proceed now with the PERVERSE COURSE.
Specifically, it is intended to standardise the derivatives default
price and to proceed with the new derivatives trading platform based on
the obtuse Geithner-Summers formula, with the following Economic
• To suck every available good dollar out of unwise, reckless and
• To enable Carlyle and Carlyle Capital, for the Bush-DVD Crime
Nexus, to extract their profits.
• After which there will be another COLLAPSE, probably within a
year or even within six months [see below] which will be FAR, FAR WORSE
than what has been experienced to date.
This is what the Obama Administration is going to do. That is
their mad, reprobate intention.
(8) OBAMA APPEARS THEREFORE TO HAVE DOUBLE-CROSSED THE QUEEN:
We have been advised by UK sources who know the score that
President Barack H. Obama is absolutely not to be trusted. However
because he is Head of State, and given that the Editor is a
‘foreigner’, we have bent over backwards to give this man the benefit
of the doubt, even though it soon became apparent that things weren’t
right: The Queen’s $52 billion of ‘guarantees’ were stolen, before
being ‘restored’; and the $14.0 trillion was finally withdrawn as we
reported, on 29th January,
after it had become clear that the Obama Administration was
intent upon pursuing the perverse course, rather than the Refunding
counterpropaganda intended to create the false impression that the $14
trillion that we reference is another $14 trillion stolen or partly
stolen by others, and that the $6.2 trillion element is the same as the
stolen $4.5 trillion again referenced in the preceding report, is
unprovenanced, confusion-building deception the
underlying motives for which, if exposed, would compromise and expose
many facets of this offensive to bamboozle compartmentalised cadres and
We did form the impression earlier that the diplomatic skills that
our Head of State is known to be able to deploy, had yielded the
mutually appropriate results. And as we now understand this fluid
situation, President Obama is believed to have been told by the British
Head of State that it would be enormously in the mutual interest to
proceed with the on-the-books, transparent private sector
revenue-generating Refunding Programme agreed to by the G-7 in 2007 and
It is believed that he indicated that he would at least take
notice of this request, but please review the greater detail below. We
do not really know whether he signed anything meaningful at the G-20
jamboree, although we do know that he entered into commitments which he
reneged upon the moment he arrived back home: all that is known is that
after ranting about the ‘Deliverables’ being ‘mandatory’, President
Sarkozy calmed down, implying that unspecified 'sensible' decisions had
But it would now appear that President Obama simply paid lip
service to what The Queen will have told him, without having the
slightest intention of actually paying any attention to what Her
Majesty had said after leaving her presence.
If that is not the case, there is no evidence to the
What we do know is that
the White House was reported to us on 11th April 2009 to be 'extremely
annoyed' (more colourful language being employed) that the CORRECT
SOLUTION laid out by this service, which WAS discussed at the meeting
between the two Heads of State, was even raised.
One can speculate as to the causes of such annoyance, and one can
also speculate that the matter alluded to above concerning the Editor
of this service is indeed CONNECTED to the fact that the CORRECT
SOLUTION was raised at that crucial Heads of State meeting.
Such speculation would be along the right lines!
• Shortly after we posted the preceding report, which included the
intelligence that President Sarkozy had threatened STASI-Chancellor
Merkel with ‘elimination’ because she was blocking the releases on
behalf of Bush-DVD,
Merkel suddenly cut short her visit to Afghanistan.
Another interesting development is reported here: the Editor
received an email from Beijing at 11:45pm on 9th April (UK time) from a
known and reliable Spanish contact, containing the following
information: ‘Just to let you know that it is not possible to read your
website in Beijing, except in international
This implies that the Chinese Government may also consider that our
direct assertion of the truth is too painful, even for them –
notwithstanding the reality that the Chinese authorities are very
assiduous subscribers to our financial journal, International Currency
SOLUTION: INDEPENDENT PRIVATE SECTOR TRADING PLATFORM FROM LONDON:
This leaves the proposal to operate the private sector Refunding
Programme independently from London as the ONLY remaining way out of
the catastrophe that the Barack Obama Administration is perversely
rushing towards, with its determination to press ahead with the new
which, bless him, Jeffrey Sachs, Economics Professor at Columbia
University and Director of the ‘Earth Institute’ (!!),
said on 6th April is ‘even worse than we thought’ (sic!) [see
• TO REPEAT WHAT IS STATED AT THE TOP OF THIS REPORT:
Operating the $ Refunding ANYWAY from London without US Government
(1) Massive ongoing windfall tax accruals to the BRITISH Treasury
given that all funds resident in the United Kingdom jurisdiction for 24
hours are taxable by the Inland Revenue. This makes the UK Refunding
proposal of extreme interest to Her Majesty's Government and the UK
(2) Massive ongoing windfall benefits to the UNITED STATES
Treasury given that it will also receive a cascade of tax accruals from
this independent private sector Refunding Program.
(3) The necessary refinancing of the UK and US banking systems ON
THE BOOKS with no input from either Government and NO CORRESPONDING
DEBT CREATED IN THE BACKGROUND.
(4) GOOD (i.e., on-balance sheet, taxed) money which will CHASE
OUT THE BAD MONEY that the crass US Fraudulent Finance concoction will
As for Professor Sachs, and to give him his due, Sachs elaborated:
‘Cynics [NO: realists – Ed.] believe that the Geithner-Summers
Plan is exactly what it seems: a naked grab of taxpayer money for Wall
Street interests. Geithner and Summers argue that it’s the least bad
approach to a messy situation, in which we need to restore banking
functions but don’t have any perfect ways to do that [NOT TRUE: see
If they are serious about their justification, let them come forward to
confront their critics and to explain to the American people why the
other proposals are not being pursued. So far, Geithner and Summers
tell us that their plan is the only option, but without a word of
further explanation as to why’.
In other words, Geithner and Summers are liars because they BOTH KNOW
that there is another solution – namely, the transparent
on-the-books taxable revenue-generating agreed Refunding Programme
MINUS Government, that they have explicitly rejected. They have
rejected it because they are working to refund Carlyle and Carlyle
Capital, of behalf of the corrupt Bush-Clinton Cabal, and to relieve
foolish investors of every good dollar so as to enable these operations
to extract their profits
at the expense of the soon-to-be-scammed investors
concerned, and the taxpayer.
And of course, Jeffrey Sachs himself hasn’t yet got round to
putting forward the ONLY SOLUTION, outlined above – which is
surprising, given that he is not unendowed with the requisite ‘smarts’.
If he doesn’t do so soon, we would be perfectly entitled to
conclude either that he’s actually rather dense, or else that, like the
rest of these people, he’s ‘part of the problem’.
MEETING AT THE HIGHEST LEVEL IN LONDON ON 1ST APRIL 2009:
Although self-evidently we are not privy to what was discussed
between the Monarch and the President of the United States, we know
through several sources that the Refunding Programme which will
generate TAXABLE REVENUE WITHOUT U.S. TREASURY DEBT, was discussed and
that key names that you know about were mentioned in this connection.
At the mention of these key names, President Obama backed off and MAY
HAVE uttered words to the effect: ‘No, that’s not the way WE are going
to do it’, while also indicating a commitment (note the two opposite
stances) and demonstrating a complete change of attitude from one of
confrontation to one of cooperation
in response to The Queen’s remarkable genuine professional
ability to charm.
Whether the President bad-mouthed the key US expert in question to The
Queen cannot possibly be known, but it can be deduced from information
received that he may well have done so. The name in question is not
appreciated at the White House and the US Treasury, because he speaks
the truth and because neither intend to proceed with sound finance. He is of course the
expert whose work we reproduce from International Currency Review,
Volume 34, #2, below.
If President Obama did bad-mouth Michael C. Cottrell, B.A., M.S.,
it had NO EFFECT! Otherwise the White House would not be 'extremely
annoyed' 'as we speak', and nor would the issue concerning the Editor
of this service have blown up (to be alaborated later, if there is no
The perverse and ruinous intention is to proceed along the
Fraudulent Finance route, which will end very quickly in disaster and –
here’s the Editor’s point – WILL TAKE THE BRITISH ECONOMY AND BANKS
DOWN WITH IT.
(Now you know why the Editor is involved in this battle).
As an outline, what appears to have occurred is exactly as was
predicted earlier on this website:
• Obama arrives at Stansted under a cloud.
• Obama attends at Buckingham Palace for his one-on-one meeting
with The Queen.
• At this meeting, the Refunding Programme as explicitly explained
directly to The Queen’s advisers by the key US name in question through
ourselves, is raised. Also mentioned is the second key US name whose
reputation for integrity is likewise impeccable.
• In the course of the interview, Obama’s stance was transformed
for the purposes of completing the meeting, from one of confrontation
to one of intended cooperation, and various commitments may have been
given. These commitments appear to have been false.
• Obama then proceeds on his travels from podium to podium, and on
arriving back home, we understand, indicated that he intends to proceed
along the disastrous course concocted by his top appointed officials
and advisers representing Biden (the new Cheney), Cheney himself,
Summers and Bush 41 – who, we know, specifically intervened in the
evening of 9th April 2009, to stop the release process,
AFTER a conversation between the Editor and Michael C. Cottrell,
In summary, the President of
the United States gave certain undertakings at the highest level in the
United Kingdom without having the slightest intention of honouring
them, thereby making it evident in retrospect that he was not
interested in the G-7-Approved private sector Refunding Programme, and
would be proceeding along the disastrous route recommended by the
Financial Terrorists and traitors to the United States and the American
people who are jeopardising
US National Security
and either couldn’t care less, or don't understand where
they are going.
course means that the situation, as stated in the preceding report, is
now far more tense and dangerous than was the case prior to the G-20
watershed meeting at which these matters were supposed (ostensibly) to
have been stitched up behind the scenes.
KICKING AGAINST THE PRICKS: WHAT WASHINGTON INTENDS TO DO NOW:
The intention of these operatives, headed by President B. Obama
with the full cooperation of the NYSE and ICE, is to re-start the
collapsed Fraudulent Finance derivatives, in the expectation that some
fools abroad will pile into this deceitful DEBT-GENERATING process,
thereby fraudulently restarting the carousel – with a view to elevating
the ‘Toxic’ or ‘Legacy’ 'assets' (which have NO RECOURSE to the
underlying flow-of-funds and so are accordingly fundamentally
fraudulent and worthless), highly desirable, and enticing imprudent
institutional investors like pension funds and money managers in the
municipal sector, as well as reckless banks and greedy private
investors at home and abroad who are pready to abandon the Prudent Man
Rule, into this poisonous bonanza.
Once Carlyle and Carlyle Capital et al have ‘revalidated’ the existing
overhang (including double-counting) of between $600 and $700 trillion
of fraudulent derivatives ‘assets’ (that is to saym have converted the
current dead, moribund and worthless Ponzi derivatives into cash) –
while having procured that foolish foreign purchasers, American pension
funds, municipalities and banks have stuffed themselves to the gills
with a brand new generation of even more worthless fraudulent Ponzi
‘assets’ than the previous lot – these fraudsters will be in a position
to take down the entire system – whereupon they will be in a position
to scoop up all the residual good assets and a few banks that they
covet, achieving their revolutionary objectives by means of Fraudulent
For the immediate future, we know for a fact that none of those parties
in the background in the United States who have been told what is
happening, are paying any attention. Their eyes glaze over and they
block their ears. They are indifferent to the fact that on the other
side of the balance sheet, the US Treasury is to accumulate a vast,
open-ended additional overhang of official US debt, which will burden
future generations of Americans out to infinity.
• And because WE KNOW that they DO understand the logic of the
G-7-Approved revenue-generating, debt-free Refunding Programme,
ALL OF THEM, can be accused of:
• Committing treason against the American Republic and People.
• Criminal co-conspiracy to defraud the portfolios of pension
funds, municipalities, institutions and unwise investors at home and
abroad on a monumental scale.
• Criminal intent to revalidate worthless assets that they know to
be fraudulent by the usual Ponzi Scheme method of PULLING IN NEW MONEY,
in exchange for which new, even more prospectively poisonous false
derivative ‘assets’ will be stuffed into portfolios in the United
States and abroad (if foreigners fall for this latest official American
scam) which the foolish purchasers will be unable to dispose of in due
course when the new generation of 'trashets', in turn, is found to be
worthless both because they are
intrinsically so, and because there will suddenly be no takers for this
• Gravely compromising and jeopardising US National Security by
criminally mortgaging the futures of generations of Americans through
the deliberate creation of wholly unnecessary debt to finance this
Fraudulent Finance to ‘restore’ value to the likes of Carlyle and
Carlyle Capital, in accordance with the treacherous intentions of
George H. W. Bush Sr. on behalf of the DVD (Abwehr), Dachau
and its sentinel, the bribed STASI-Chancellor Angela Merkel.
• Gross dereliction of law enforcement duty in failing to take the
severest measures against all those in plotting this outrageous
escalation of US official scamming, which is intended to buttress the
usurped control of the Intelligence Power over the Executive Branch of
the US Government, as previously explained by this service.
• Recklessly sacrificing economic and financial stability for
criminal purposes as described.
• Exploiting public office for the fraudulent and criminal
purposes in question, including self-enrichment and the financing of
‘Black Operations’ in open defiance of the clear interests of the
American people and of future generations of Americans.
• Engaging in these criminal acts in time of war, exacerbating the
treason that they are committing.
• Openly engaging in gross acts of Economic and Financial
Terrorism, as provided for in their own national security legislation.
(11) NEW WAVE OF FRAUDULENT FINANCE WILL GENERATE REVENUE AT HUGE
Buried inside this intended giga-scamming operation is the US
official intent to generate revenue by these means – revenue that may
OR MAY NOT be taxed. On the basis of past experience, a huge proportion
of the intended Ponzi transactions will be handled, as usual,
off-balance sheet, so that the proceeds will be shovelled into
‘offshore’ accounts, despite the latest revived G-20 ‘offensive’
against tax evasion. Whether the offshore centres will comply with the
pressures being exerted on them now that the Bush Crime Family is
ostensibly ‘out of the way’ (Bush II TORPEDOED the OECD’s operations
against the offshore centers in 2001) remains unclear.
But even if a
significant proportion of the new Fraudulent finance transactions are
taxed, the tax accruals will have been MORE THAN OFFSET by the huge
increase in US Treasury debt that is to be created and is being created
on the other side of the US Federal Government's balance sheet.
And as we have pointed out, IT IS NOT NECESSARY TO CREATE ANY NEW
TREASURY DEBT AT ALL. So, what is the problem?
• ANSWER: This is the Geithner-Volcker-Summers-Bernanke-Obama
method of purporting to have these transactions occur in the private
sector WHILE RETAINING CONTROL.
THE REAL MOTIVE: THE CROOKS ARE TERRIFIED OF LOSING CONTROL OF TRADING:
What they are terrified of is LOSING CONTROL OF TRADING. That's
the bottom line.
• So they are quite happy to burden the present and future
generations of Americans with colossal unnecessary Treasury debt IN
ORDER TO RETAIN CONTROL.
• Therefore, THEY ARE COMMITTING TREASON AGAINST THE AMERICAN
PEOPLE, since there is an alternative method of getting out of this
mess: by RELINQUISHING CRONYISM CONTROL so that the Government sector
is not engaged in creating UNNECESSARY DEBT to finance this scam.
Discontent may remain muffled for now in the context of the
official attempt to invent a ‘feel-good’ factor for public consumption,
in the ‘expectation’ that the imminent Fraudulent Finance rebooting
operation with the Lombard Odier external ‘insurance wrap’ will
reignite the productive economy, whereas its purpose is to exchange the
worthless existing derivatives pile for NEW MONEY, in accordance with
the standard Ponzi principle.
This operative said on 9th
April that the US economy will begin to feel as if it is recovering
within the next few months, as the “sense of free fall” comes to an
end. Addressing the Economic Club of Washington, this operative offered
NO EVIDENCE WHATSOEVER for his assertions, as his woolly phraseology
revealed. There were ‘still substantial downdrafts’ (no mention of the
ten huge Bush-related Ponzi networks waiting to ‘blow’ in Europe, of
course); but Mr Summers was ‘reasonably confident’ that ‘the sense of a
ball falling off the table’ will come to an end within months.
'We will no longer have that
sense of free fall', he waffled, adding that his aim was to ensure that
the downturn is not an ‘historic event’. He thought that in the past
6-8 weeks ‘things have felt a little better’ on the basis of ‘a
substantial anecdotal flow of information’.
Tell that to the owner of the diner
frequented by the Editor of this service in Midtown New York, which was
empty when last visited, or to the Midtown breakfast diner which is
normally so crowded on Sunday mornings that for years it was a waste of
time turning up there. The other Sunday the Editor strode past and
observed plenty of tables, so he renewed his acquaintance with the
Exactly what class of weed Mr Summers has
been consuming is unknown. But what we do know is that, as President
Obama’s ‘closest economic adviser’, this operative is a key driving
force behind the intended Fraudulent Finance offensive that will
crucify the present and future generations of Americans because of the
HUGE BURDEN OF UNNECESSARY DEBT that it will generate – thanks to
Summers’ perverse refusal, along with his colleagues, to TAKE THE
Meanwhile the blocking operations
of the Connecticut Trust group on behalf of George H. W. Bush Sr. have
continued unabated since we ‘outed’ these criminals. On 9th April 2009,
further sabotage activity by this group was reported. Releases are
being sabotaged because the criminal controllers intend to have
everything their own way, supported by Gold Badges who
are likewise intent on not doing their jobs, but instead collaborating
in the intended official Fraudulent Finance orgy.
• On the other hand, we received information from usually reliable
sources on Easter Day, believe it or not, to the effect that an
unspecified number of arrests had taken
place that day, of key people at their homes under US Homeland Security
legislation, and that those arrested were said to have been hauled away
without being read their rights.
[When we report such arrests etc, we replicate what sources
tell us. If confirmed we say so: on Sunday it was not possible to
confirm such reports].
• Also on Easter Day, we learned that a previously wealthy Russian
who had bought a property in West Palm Beach for $125 million from
Donald Trump, who had previously acquired the palace in question for
$45 million, was of course trying to dispose of it, and that Donald
Trump had offered him $25 million for it!
This information comes from local real estate sources.
LEGALISATION OF FINANCIAL CORRUPTION
The following analysis, published in International Currency Review,
Volume 34, Number 2, on pages 2-37, will demonstrate even to those
perverse US officials and bankers whose ears are blocked and who have
eyes to see but refuse to see,
that we have the full authority of due diligence and proper
professional analysis behind us – plus the necessary clout to have
published what follows in our journal, the latest issue of which is now
resident with governments and their structures, as well as with central
banks, treasury departments, international institutions, intelligence
agencies, and other subscribing official and private sector
organisations and policymaking environments.
ICR financial analysis, entitled ‘The Legalisation of Financial
Corruption: The Creation of Securitisation and Credit Default Swaps’ (
as Chapter One) and ‘The Legalisation of Financial Corruption:
Descriptions of the Resulting Derivative Financial Frauds and Scams’
has been in the international public domain for a month now,
and is based upon research and analysis specially conducted for this
service by the sole US securities expert who is telling the truth and
pulling no punches (an ACCURATE statement), Michael C. Cottrell, B.A.,
Our website will be upgraded this year to enable us to publish
charts and illustrations. At the moment, we do not have this capacity.
Therefore, in Chapter Two, the references to the three charts are
supplemented by Notes appended at the foot of the analysis, following
the list of 163 References and Notes appended to the analysis itself.
Notes are NOT NUMBERED because numbering them would interfere with the
existing hierarchy of references. To know more about the three charts
explaining the scamming operation under Paulson’s TARP deception, which
is the precursor of the Obama Administration’s even more convoluted
see chart references: Figures One, Two and Three.
• CHART LEAFLET DISTRIBUTED IN VIRGINIA AND D.C:
These three charts have been distributed by a senior authority by
hand in Virginia and Washington DC in the form of a four-page
International Currency Review leaflet entitled:
‘Revaluing worthless, false ‘Structured Products’
(in order to refinance corrupt Fraudulent Finance operations in the
Deconstruction of the Paulson Treasury ‘TARP’ operation:
Three charts exposing official Fraudulent Finance
published in International Currency Review: VOLUME 34, NUMBER 2, MARCH
The International Currency Review presentation is followed by the
definitive world Glossary of Deceptive and Exotic Derivatives Terms
[pages 39-87], including specially invented terminology consistent with
this lie-factory, which serves the purpose of OBFUSCATION so as to mask
what is happening in the derivatives sector behind a fog of jargon.
This glossary is not published here.
REASON FOR PRESENTING THIS ANALYSIS
Finally, this analysis is presented here for two key reasons:
(1) To demonstrate that our professional conclusion and our
recommendation that the debt-free Refunding Programme must proceed from
London is based upon solid and accurate analysis, not just upon vapid
arm-chair opinion; and:
(2) To make it impossible for those interested parties who are
opposed to doing what has to be done the honourable and correct way, to
deny that we know what we are talking about here which, believe it or
not, we have heard is taking place.
• After nearly four decades of publishing this journal, it ought to be
understood that we DO know what we are talking about, which is why
governments and their structures, banks, central banks, international
institutions, leading investors and certain intelligence agencies
worldwide subscribe to International Currency Review.
• FACT: Indicative of its petty-minded revulsion at being told
what it doesn’t want to know, last December the Paulson Treasury
cancelled its sub. to International Currency Review, to which it has
subscribed since the early 1970s, and asked for a refund, which we do
not provide (see ‘How we do Business’ on our website)!!! (When you buy
a pair of shoes at a shoe store, you don’t return to the store and ask
for the money back on one shoe! You paid for two shoes and you keep the
THAT’S HOW STUPID THESE DEVIOUS PEOPLE HAVE BECOME. They don’t
fancy having a serious journal lying around in their Library – as has
been the case for nearly four decades – describing their behaviour as
duplicitous and criminal: which it is.
that wasn’t the case, we wouldn’t describe it as such, would we? The US
Treasury is engaged in systematic Financial and Economic Terrorism
against the American people and the Rest of the World. This is not a
figment of our imagination: money-laundering is Financial Terrorism
according to the Patriot Act legislation.
Too bad that they make an exception for serial official misconduct.
• CHAPTER ONE:
THE LEGALISATION OF FINANCIAL CORRUPTION:
THE CREATION OF SECURITISATION AND CREDIT DEFAULT SWAPS
PART ONE: THE HISTORICAL BACKGROUND
The financial market environment that produced credit derivatives and
other structured products was the cumulative consequence of the
• BCCI, which was deliberately imploded and its surpluses stolen;
• The Bush Task Group on Regulation of Financial Services;
• CAPCOM, CARLYLE, ENRON, and:
• The Gramm-Leach-Bliley Act of 1999.
A: BCCI: THE BANK OF CREDIT AND COMMERCE INTERNATIONAL
This bank was established as a partnership involving the Bank of
America, with an initial fully paid-up capitalisation of $10,000,000 –
$2,500,000 provided by the Bank of America for a 25% ownership share,
in collaboration with Agha Gasan Albedi of
The bank’s primary supporters, both politically and
financially, were Sheikh Zayed bin Sultan Al-Nahyan, the eventual ruler
of the United Arab Emirates (UAE), and Kamal Adham, known as ‘the
godfather of Middle Eastern Intelligence’ (2).
Bank of America’s expansion into the Middle East was ‘justified’
on the basis that it took advantage of ‘Corbanking’ (= correspondent
banking). The transference of funds into external Financial Center
banks and the offering of access to master trusts, foreign exchange,
depository services, and check-clearing through correspondent banking
networks, enabled the Bank of America to gain a foothold into Islamic
banking institutions (3). Pakistan became the clear choice for Western
banks intending to establish Corbanking relationships – due to three
(1): The reality of ‘Islamisation’;
(2): The existence in Pakistan of a highly skilled banking profession;
(3): The emergence of a new government committed to liberalisation,
i.e., specifically to privatisation of national banks and the
establishment of new investment banks (4).
Islamic banking prohibits the payment of interest on money
deposited with the bank, and usury. Additionally, the new government of
Zulfikar Ali Bhutto committed itself to liberalising and privatising
the country’s banks as a way to encourage foreign business enterprises
into Pakistan. Habib Bank and the Muslim Commercial
Bank provided links between the Islamic-oriented banks and the new
liberalised investment banks that were established in the country (5).
During the Second World War, the United States used the Office of
Special Services (OSS) and its Board of Economic Warfare (BEW) as
primary instruments to harass and destroy the economic activities of
Nazi Germany. The Central Intelligence Agency (CIA) employed the same
strategies, through BCCI’s correspondent arrangements throughout the
Middle East (6).
BCCI thus became a primary instrument by means of which the
so-called ‘Reagan Doctrine’ was to be implemented. This US strategy was
packaged for public consumption as an offensive aimed at financing and
supporting anti-Communist insurgencies around the world, as President
Reagan had ostensibly ‘decided’ that the Cold War had outlived its
[Addendum by the Editor: In reality, a much darker imperative was
at work: 1989 was the 72nd anniversary of the Russian Revolution. In
accordance with the secret logic of the ‘Rule of 72’, it was time for
the ‘torch’ of Revolution to be handed back to the classic
revolutionary power of all time, the United States. The United States'
aberrant behaviour as a pariah state reflects this].
THE RELEVANT REAGAN NATIONAL SECURITY DECISION DIRECTIVES
In the course of 1982 and 1983, President Ronald Reagan secretly issued
three National Security Decision Directives (NSDD) for the purpose of
steering US foreign policy:
• NSDD-32, issued in March 1982, declared that ‘that the United
States would seek to neutralise Soviet control over Eastern Europe’,
and authorised ‘the use of covert action and other means to support
anti-Soviet organisations in the region’ (7).
• NSDD-66, issued in November 1982, declared that that it would be
‘US policy to disrupt the Soviet economy by attacking a ‘strategic
triad’ of critical resources that were deemed essential to Soviet
economic survival (8).
• Finally, in January 1983, NSDD-75 was issued, calling for ‘the
United States not to just co-exist with the Soviet system, but to
change it fundamentally’ (9).
NSDD-66 and NSDD-32 allowed the Reagan-Bush White House to
undertake more drastic measures towards implementation of the ‘Reagan
Doctrine’ by seeking any means necessary to secure low oil prices, that
would damage the Soviet economy, while also arming and supporting Iraq
and the anti-Soviet Mujaheddin Afghanistanis.
This operation utilised the BCCI
financial conduit provided by the CIA and the National Security Council
under Vice President George H.W. Bush Sr.. The war was costing the
Central Intelligence Agency (CIA) more than $100 million dollars a
year, and ‘necessitated’ funding Pakistan’s ISI (Inter-Services
Intelligence) which was actively supporting the Mujaheddin against the
The CIA engaged with more than 200 leading US corporations in this
context, so that all these US corporations thereby provided cover for
the operations of specifically CIA-sponsored and CIA-supported US
corporate entities (such as Chemical Bank of New York) (11).
B: CHEMICAL BANK OF NEW YORK
Chemical Bank of New York was established in 1934, when Lehman
Brothers, a Wall Street Investment firm, bought 20% of the Rockefeller
shares in the Corn Exchange Bank of New York.
The Corn Exchange Bank was then merged into the Chemical Bank and
became the Chemical Corn Exchange Bank – later re-named the Chemical
Bank of New York.
On 20th November 1978, Chemical Bank established the Chemical New
York Southwest, Inc., in Houston, Texas, as a loan production affiliate
of Chemical Bank, New York,
Directors of Chemical Bank also created ChemLease, Inc. as an equipment
finance affiliate, which changed its name to Chemical Business Credit
Corporation in January, 1980, with a brief to provide equipment and
commercial finance services (12).
Chemical New York Corporation, a bank holding company,
re-structured its international financing operations, in April 1983,
and in doing so, promoted:
(a) Mr William B. Harrison, Jr., to head the US Corporate division
encompassing all corporate lending in the United States;
(b) Mr Maurice H. Hartigan II, as the head of Account Management and
Solicitation of Correspondent Banks, brokerage firms, and insurance
(c) Mr Barry T. Linsley, as head of all Treasury and foreign exchange
in Europe and the Middle East; and:
(d) Mr William C. Pierce, as head of the Energy and Minerals Group (13).
In September 1984, Chemical Bank established a special Government
Relations Office in Washington, D.C., to be known as Chemical New York,
Inc., located at 2000 Pennsylvania Avenue, N.W.., although Chemical New
York Inc.’s District of Colombia-registered office was at 1025 Vermont
Ave., N.W. (14).
Chemical New York purchased Texas Commerce Bancshares, owned by
the family of James A. Baker III (President Reagan’s Chief of Staff) in
The Federal Reserve Board approved an application, on 21st April
1988, from Chemical New York Corporation to be engaged through a
subsidiary, Chemical Futures, Inc., in the execution and the clearance
of futures contracts on a municipal bond index.
• Chemical Futures, Inc. was allowed by the Federal Reserve Board
to solicit, execute, and clear futures contracts on major
(international) commodities exchanges for non-affiliated persons, and
would be allowed to serve as a futures commission merchant on the
Chicago Board of Trade (16).
By 1996, Mr. Harrison had become Chairman and Chief Executive
Officer (CEO) at Chase Manhattan Bank, New York, whereupon he
successfully merged Chase Manhattan Bank with Chemical Bank for the sum
of $35 billion US dollars. This merger incorporated the assets acquired
by Chemical Bank when Chemical Bank merged with Manufacturers Hanover
Corporation, in 1991. Thus, by the end of 1996, Chemical Bank/Chase
Manhattan Bank had become the largest banking operation in the United
States, with assets of over $235 billion (17).
• Chemical Bank and BCCI: Although BCCI only existed between 1972
and 1992, it paved the road for financial terrorism, the scourge which
has been and continues to be exposed through our website and published
reports, because it became the financial conduit for White
House/CIA/NSC operations and lethal adventures following on from the
circumstances outlined at the beginning of this report, which should be
considered and used as a verbal flow-chart. BCCI was used for:
(1) The purchase of arms for the anti-Soviet Mujaheddin in
Afghanistan, via the CIA [and DCI/Vice President G.H.W. Bush];
(2) Arms purchases by BOTH Iran and Iraq during their eight-year war,
so that de facto the United States was one of the powers sustaining the
war with arms sales; and:
(3) The self-destruction of the Soviet Union’s financial system,
induced by means of bribery and an economic warfare operation involving
CAPCOM, et al., Chemical Bank, et al., and the CIA (embracing the
open-ended financial operations of free-wheeling CIA operatives, such
as Leo Wanta, who was assisted by the much more resourceful and
effective Chinese intelligence financier, Howie Kwong Kok)(18).
Capcom was created by BCCI’s Treasury Department head, Ziauddin
Ali Akbar, who capitalised the corporation with funds from BCCI and
BCCI customers (19).
Akbar registered a shelf corporation, on 26th April 1984, named
Hourcharm Ltd., at his home address in London (England), and then, on
22nd May 1984 renamed it Capital Commodity Dealers, Ltd. before again
renaming the company as Capcom Financial Services, Ltd., in July 1984
Capcom was thereafter funded with additional monies, to an amount
of £25,000,000 (approximately $37,000,000, in 1984 US dollars)
Its speciality was changing its name and spawning offshoots.
Specifically, Capcom Financial Services Ltd. then went through a number
• Capcom Securities, Ltd.;
• Capcom Inc.;
• Capcom Co., Ltd.;
• Chemical Futures, Inc.; and:
• Capcom Equities, Inc. (22).
• Capcom, Inc. was formed in Cleveland, Ohio, on 8th August 1976;
in Boca Raton, Florida, on 26th August 1976; and in Washington, D.C.,
in 1981 (23).
Capcom Co., Ltd. operated/operates as a London-based Japanese
Management Consulting Services firm which was established in 1991 (24).
Finally, Capcom Equities, Inc. (re-named as Everest Securities,
Inc., on 19th March 1990), was set up on 12th August 1988, in Illinois,
with its registered office in Plantation, Florida (25).
BCCI’s network of banks aided the movement of massive amounts of
funds to arms suppliers in the United States Canada, China, and Soviet
satellite countries, and provided the main mechanism for Capcom
profits/losses from the purchase and sale of options derived from the
Chicago Mercantile Exchange to flow on and off the BCCI books (26).
This ‘options scheme’ facilitated the ‘loss’ of a minimum of between
$250 million and $500 million within a Capcom/BCCI ‘black hole’ (27).
D: BUSH TASK GROUP ON REGULATION OF FINANCIAL SERVICES (1983-1985)
In December 1982, Vice President George H.W. Bush announced the
formation of The US Task Group on Regulation of Financial Services to:
‘Review the Federal Government’s regulatory structure for
financial institutions and propose any desirable legislative changes to
the existing system’.
It was against that official background that, in a keynote speech
addressing The American Assembly at Columbia University, on 8th April
1983, Bevis Longstreth, a Commissioner with the US Securities and
Exchange Commission [SEC], made a detailed appraisal of the Financial
Services Industry and regulations, the full text of which is given as
Appendix Three with this presentation (28):
‘If a salesman… deals directly with the consumer of financial
services – he would have to contend with various US and State financial
services regulators. If the salesman is affiliated with a
broker-dealer, he must become a registered (securities) representative
[in order] to sell securities.
To qualify, he must meet detailed requirements with respect to
character and competency; in recommending transactions he is subject to
rigorous ‘suitability’ standards and generally to the NASD’s (National
Association of Securities Dealers) Rules of Fair Practice. In addition,
he is subject to the BLUE SKY laws of the States where his clients
‘If the salesman wants to sell commodity futures or commodity
options he must be qualified as an associated person of a futures
commission merchant and conducts his activities in accordance with the
regulatory scheme administrated by the Commodity Futures Trading
Commission (the CFTC) and the National Futures Association’ (30).
the salesman wants to sell insurance products he is subject to the
jurisdiction of the state insurance regulators. If he wants to provide
investment advice, with respect to securities, he must register as an
investment adviser under the Investment Advisors Act and conform to its
requirements, including state regulations’ (31).
‘If the salesman is employed by a bank, he can offer securities,
manage pooled investments and render investment advice. Because a bank
is not a broker or dealer and is exempted from the Investment Advisors
Act, the securities laws do not apply. A different set of regulations
apply, issued by bank regulatory authorities’ (32).
According to Mr. Longstreth, these multiple regulatory schemes were/are
inefficient, ineffective, and, therefore, irrational. He believed that
the time had come to ‘clear out this regulatory thicket in favour of a
functional approach – based on identifying what aspects of function
warrants regulation, and then design a regulatory agency to administer
the regulation’ (33).
Mr. Longstreth addressed the ‘need’ to de-regulate ‘Pooled Funds’
(now known as HEDGE FUNDS), since the function of pooled funds is the
management of the customer’s money based upon the supposed ease of
management and economies of scale. At the time, in 1983, pooled funds
were subject to the Investment Company Act of 1940 and the Securities
Act of 1933 (34).
Additionally, banks may not sponsor mutual funds, but may organise
common and collective trust funds that are very similar to mutual
funds. However, banks are regulated by the Comptroller of the
Currency’s Regulation 9, and in some cases, ERISA [Employee Retirement
Income Security Act of 1974], which address conflicts of interest. Mr
Longstreth questioned ‘whether any reason justifies preserving the
differences in regulation of pooled funds’ over better management of
the funds on behalf of the customer (35).
Another type of fund that Mr. Longstreth raised regulatory questions
about was Money Market Mutual Funds and the implicit evasion of
The issue of risk, in the case of Money Market Mutual Funds, may
be slight, but the deposit may not be paid out at par (‘breaking the
Moreover, since passage of the Garn-St. Germain Act, the question
of money market deposit accounts was made a matter of law (36).
Longstreth also made out a case for the consolidation of the Securities
and Exchange Commission (SEC) and the Commodity Futures Trading
Commission (CFTC), on the basis that then-recent (1983) legislation had
made the jurisdiction between the two agencies so close, that there was
now little overlap. However, the term ‘commodity’ is also defined under
the US Commodity Exchange Act as a ‘security’, and the many
broker-dealers regulated by the SEC are also futures commissioned
merchants subject to the CFTC regulations (37).
Mr. Longstreth concluded that
the Glass-Steagall Act of 1933 had reflected a clear Congressional
determination that avoidance of the ‘hazards’ and ‘financial dangers’
to banking that arise when commercial banks engage in investment
banking, outweighed the advantages of competition, convenience or
expertise that might support bank entry into the investment banking
…Yet, he elaborated, ‘the growing interdependence of
financial intermediaries should give pause to policymakers tempted by
the siren song of Adam Smith’.
Therefore, Mr Longstreth concluded that it was ‘my thesis that’:
(1) Market discipline can only assure soundness in an overall
environment where institutions are PERMITTED TO FAIL;
(2) The linkages among financial intermediaries often are too
extensive (and growing stronger and more numerous) to PREVENT ANY ONE
FAILURE FROM TRIGGERING OTHERS;
(2/3) Therefore, the collateral consequences of failures often
impose unacceptable costs on the financial system; and:
(4) Accordingly, to assure soundness, a new system of direct
regulation is needed – a system broad enough to encompass all financial
intermediaries, and flexible enough to enable the forces of full
disclosure and market discipline to do their share of the job (39).
Finally, Mr Longstreth urged people to study the Federal Reserve Act as
the most logical source of regulation and emergency funds, but noted
that the Federal Reserve Act was too archaic and inflexible to do the
necessary regulatory job (40).
The BUSH TASK GROUP (the 1983 task force) was established as the result
of US Congressional hearings (1981-1983) regarding enforcement of The
Corrupt Foreign Practices Act (1977) involving corporate reporting and
Task Group was formed, in part, as a result of the SEC Chairman John S.
R. Shad’s proposal for a one-year task force which would:
(1) Review the regulatory structures applicable to the securities,
banking, thrift, and insurance industries in the United States;
(2) Propose that financial services should be regulated by
functional activities rather than by outmoded industry classification;
(2/3) Recommend that overlapping, duplicative, and conflicting
regulatory activities be consolidated, having identified the overlaps,
duplications and conflicts; and:
(4) Recommend that ‘excessive regulation’ within and between
agencies should be eliminated under new legislation (42).
The Bush Task
Group endorsed proposals for the substantial reorganisation of the
Federal regulatory system for depository institutions. The proposals
would repeal the exemptions in the Securities Act of 1933 covering the
registration of securities issued by banks and Savings and Loan
Associations and would transfer to the SEC, the burden of administering
periodic reporting, proxy solicitation, and short-swing profits
provisions of the Exchange Act… .
Thus, these initiatives would consolidate the administration of
securities disclosures requirements for banks and US Savings and Loan
Associations, ostensibly resulting in more uniform disclosure financial
disclosure to public shareholders and securities analysts and
facilitating evaluation of comparative investment risks (43).
The Securities and Exchange Commission (the SEC) would become the
repository for filings of all publicly held institutions, Savings and
Loan Associations, and holding companies, as it is for all other
publicly owned companies.
In early 1984, the SEC testified in support of legislation to
facilitate the development of the private secondary mortgage market.
The resulting legislation was signed by President Reagan on 3rd
October 1984, and was designed to encourage offerings of
mortgage-backed securities by private issuers (44).
OSTENSIBLY ‘UNINTENDED’ CONSEQUENCES
The financial deregulation that resulted from the Bush Task Group of
1985 has led to an age of heightened power for the Federal Reserve
System via the following mechanisms, contributing to the collapsing
system now in evidence:
(1) The continued expansion (coverage) of Regulation K,
i.e., international banking and Edge Act corporations;
(2) The further expansion of free-market activities introduced
The Omnibus Banking Bill of 1980;
(3) The Competitive Equality Banking Act of 1987;
(4) The Electronic Fund Transfer Act;
(5) The Financial Institutions Reform, Recovery, and Enforcement
Act of 1989;
(6) The Foreign Bank Supervision Enhancement Act of 1991;
(7) The Gramm-Leach-Bliley Act of 1999;
(8) The Legal Certainty for Bank Products Act of 2000; and:
(9) Title 31, United States Code, Subtitle IV (45).
Bush Task Group Report on Regulation of Financial Services (Blueprint
for Reform) presented on 26th and 27th March 1985 contained several
recommendations concerning the deregulation of the banking industry,
• The Federal bank oversight supervisory agencies should be
• A Federal Banking Agency should be created;
• The Securities Act of 1933 should be amended;
• Restrictions in the Investment Company Act of 1940 should be
• The Trust Indenture Act of 1939 should also be amended.
The overall emphasis of this report was primarily to reduce the
regulatory oversight of Federal supervision of national banks – thereby
allowing the banks to gain access to the lucrative, but prohibited,
non-banking financial services arena (46).
The Carlyle Group, describing itself today as a ‘global private equity
firm’, was established in 1987, in Washington, D.C., as a Private
Partnership by Stephen L. Norris, and David M. Rubenstein (47).
The partnership then hired William E. Conway, Jr., Daniel A. D'Aniello,
and Greg Rosenbaum. By 1995, Messrs Rubenstein, Conway, and D’Aniello
reportedly collectively owned an approximate 50% interest in the
group’s general partnership, with the California Public Employees
Retirement System (CalPERS) as the only US institution owning a stake
in the partnership (a 5.5% share, for $175 million, paid in 2001) (48).
In September 2007, Mubadala Development Company, ‘an investment group
owned by the government of Abu Dhabi, which is part of the United Arab
Emirates’, purchased a ‘7.5% share of Carlyle’s general partnership,
for $1.35 billion’ (49).
Wikipedia has named George H.W. Bush and former Secretary of State
James A. Baker III as notable investors in Carlyle Group [sic!] (50).
reports, we have pointed out that the participants in this colossal
‘money machine party’ operated on the assumption that the bonanza would
continue for ever – as is presupposed by the reality that the
Depository Trust and Clearing Corporation (DTCC) boasted during 2008
that it had cleared $1.8 quadrillion of derivatives transactions.
This entity is owned by a group of US clearing banks, now
including inter alia Deutsche Bank, which purchased the clearing
facilities from JPMorganChase. It has guaranteed over $600++ trillion
of derivatives ‘assets’ outstanding and, as more and more of these
contracts reach maturity and fail, its guarantees are being called,
with actual or prospectively DISASTROUS consequences.
It was the height of irresponsibility for the banks to have set up
a corporation to guarantee these exotic transactions (clearing them =
guaranteeing them). When the guarantees are called, they must be
honoured (operation of law).
Notwithstanding the above, on 31st January 2007, William E.
Conway, Jr., sent a letter to the firm’s 'investment professionals
worldwide', which contained some revealing observations, in which Mr
Conway attributed the continued rise of world stock markets to a glut
of liquidity in the world financial system, describing the glut as
‘... the availability of enormous amounts of cheap debt’.
Mr Conway’s letter elaborated: ‘This cheap debt has been available
for almost all maturities, most industries, infrastructure, real estate
and all levels of the capital structure’. He said that there is so much
liquidity in the world’s financial systems that ‘lenders (even ‘our’
lenders) are making very risky credit decisions’.
‘And of course when [the liquidity bubble] ends, the buying
opportunity will be once in a lifetime. But I do not know when it will
end’. Mr Conway also expressed concern that the resulting US recession
could become a global depression.
Enron started life on 25th April 1930, as a component of a group of
filed companies, operating in different US states, with the various DBA
(‘Doing Business As’) companies having different names, such as the
Northern National Gas Company. Enron was crossed-filed as a corporation
in Texas on 10th December 1934, in Iowa on 26th August 1935, and in
Delaware on 11th October 1934 (51).
Enron evolved into a component of the US intelligence community’s
Energy Operations, with various agreements and contracts being secured
from Middle Eastern parties resulting from the Allies’ victories in the
Second World War.
In parallel, though, Enron also became an energy behemoth given
its multiple cross-filed component corporations consisting of legal,
chartered, and assumed names, i.e., Enron Corporation; Northern
National Gas Company; Division of Internorth, Inc. (this name being
registered three times); The Peoples’ Natural Gas Company; Division of
Internorth, Inc.; Northern Natural Gas Company; Energy Systems Company;
Division of Internorth, Inc.; Internorth, Inc.; HNG/Internorth; Enron
Oil & Gas Company; EOG Resources, Inc.; HNG Fossil Fuels Company
[The replicated/duplicated names represent separate companies,
registered and filed separately in different States].
Enron, et al., was/were exploited during the Reagan-Bush
Administration, via CIA/DCI William Casey’s various ‘Enterprise
Operations’, to move monies and materials around the world in order to
meet the needs of ‘LASMO’, Amerada Hess, and other entities involved
with the implementation of President Ronald Reagan’s Executive Orders
NSDD-32, NSDD-66, and NSDD-75., referenced above (53).
Enron was also deployed as a conduit for monies and jobs for
the South American operations of the NSC-CIA during the George H.W.
Bush Administration (54) [e.g., Falklands].
Between 1985 and 1987, Enron had set up four phoney offshore shell
corporations to arrange sham oil trading contracts with Enron. Messrs.
Mastroeni and Bourget were convicted and sentenced for defrauding Enron
and for filing false tax returns – all under the sole supervision of Mr
Kenneth Lay, Enron’s Chairman and Chief Executive Officer (55).
offshore entities were (and in some cases still are) numerous and
had/have multi-year, multi-million dollar contracts with such
corporations as Kuwait Foreign Petroleum Exploration Co., El Paso
Energy Partners, LP., BG-Enron, Enron Oil & Gas India Ltd. (EOGIL),
Chaco, Amerada Hess Corp., and Trans Pacific Petroleum
Amerada Hess forms a component part of the LASMO/Wilmington Trust
operations of the 1990s (57).
We have already seen that Enron, et al. consisted of a large
number of filings – winding up with 20 legal, chartered, and assumed
DBA names filed in numerous States throughout the United States.
Enron’s top leadership, represented by Jeffrey K. Skilling and
Kenneth L. Lay, were aggressive in securing debt to increase Enron’s
capital to finance the expansion of its operations. At the same time,
the conglomerate spawned over 3,500 offshore Special Purpose Entities
or Vehicles (SPEs or SPVs) to hold assets that had been illegally moved
from Enron’s balance sheet to the balance sheets of these so-called
Special Purpose Vehicles.
The SPEs benefited from quite extraordinary ‘special exemptions
from regulation’, applicable for EnronOnline, as specified in a
200-page attachment to the 11,000-page General Funding Bill passed by
Congress on 15th December 2000 (58).
These SPE exemptions allowed Enron, et al., to own as little as three
percent of the limited partnership with any outside interest partner,
i.e., OSPREY Partnership, which generated $3.9 billion off-balance
sheet debt – backed only with preferred stock – which was to be
convertible into 50 million common shares in Enron (59).
EnronOnline was launched, on November 29, 1999, as the first
web-based transaction system. This innovation allowed buyers and
sellers to buy, sell, and trade commodity products globally – but only
through Enron. The site allowed energy users to trade natural gas,
electricity, and over 500 other products including credit derivatives,
bankruptcy swaps, pulp, gas, plastics, paper, steel, metals, freight,
and even TV commercial time.
This ‘off-the-floor’ trading platform soaked up tremendous volumes
of Enron’s funds, since Enron was either the buyer or the seller of the
aforementioned commodities and securities. Essentially, Enron was
draining itself of its cash flow via EnronOnline’s trading activities.
EnronOnline was closed down for online trading on 28th November, 2001
Given its huge debt burden, Enron’s survival hinged on its credit
rating status. At the end of October 2001, both Moody’s and Fitch
declared that Enron had been slated for review for possible downgrade
The possible downgrade would force Enron to issue millions of
shares to cover the guaranteed loans, and thus devalue the stock
On 29th October 2001, the rumour spread on Wall Street that Enron
was seeking one to two billion dollars’ worth of additional financing
from the banks – a development that contributed to Moody downgrading
Enron’s credit rating or senior unsecured long-term debt ratings, to
Baa2, just above junk bond level. Standard & Poor’s downgraded
Enron to BBB+ on 30th October 2001 (62, 63).
had created myriad offshore entities [see above] that were used for
planning and avoiding taxes, while increasing Enron’s reported
‘profitability’ and of course ensuring the accumulation of vast (Ponzi)
untaxed profits offshore.
Enron’s ownership and management had full freedom of currency
movement, internationally, enjoying total anonymity, so that losses
were thereby hidden while off-balance sheet profits accrued to the
companies and their ‘executives’.
The operations of these Special Purpose Enterprises (SPEs) made
Enron appear more profitable than its actual financial condition
warranted, and created a dangerous spiral that required Enron to
perform better and better in each succeeding quarter – requiring
deception to be employed in order to hide the obvious fact that Enron
was haemorrhaging cash. Although the inside executives knew of this
situation, the public did not, since Enron’s Securities Exchange
Commission quarterly and annual filings did not reveal the true
financial situation – as is required by law.
Arthur Anderson, LLP, Enron’s accounting firm, was well aware of
this unlawful situation, but did nothing to correct it, and, in fact,
participated (co-conspired, as a professional Accessory to the Fact) in
structuring the offshore so-called Special Purpose Enterprises to
enshroud the process from public scrutiny (64).
On 2nd December 2001, Enron filed for Chapter 11 bankruptcy (65).
Robert E. Rubin, a US Treasury Secretary during the Clinton
Presidency, telephoned the Treasury and spoke to the Undersecretary for
Domestic Finance, Peter Fisher, about ‘what (Mr Fisher) thought of the
idea’ of the US Treasury persuading bond-rating agencies to hold off
reducing the freefalling Enron credit rating.
Such an intervention would help both Enron and Citigroup, one of
Enron’s leading creditors. Quite properly, Mr Fisher told Rubin, who
was Citigroup’s CEO, that the idea was not appropriate; and he took no
action to assist Enron (66).
The US Treasury Secretary of the day, Paul O’Neill, the Commerce
Secretary, Donald Evans, and the Federal Reserve Chairman Dr Alan
Greenspan, all likewise revealed that they had received calls, on 2nd
December 2001, from Enron’s CEO Kenneth L. Lay asking for help for
Thereafter, Enron, like BCCI and CAPCOM, was charged by the Securities
and Exchange Commission and other authorities, with falsely reporting
profits from commodity trading (68),
leaving debts ‘off the books’, and overstating profits by
$400 million plus, in its annual reports (69).
G: THE FINANCIAL SERVICES MODERNIZATION ACT OF 2000:
THE GRAMM-LEACH-BLILEY ACT (GLBA)
This Act updated the United States’ laws governing financial
services by repealing two provisions of the GLASS-STEAGALL ACT, namely,
Sections 20 and 32.
These two provisions prohibited the affiliation of commercial and
investment banking firms, and limited officer and director interlocks
between them (70).
GLBA overrides restrictions in the Bank Holding Company Act
(BHC Act), and the limitation on bank holding companies to engage in
the insurance business (71).
The Act created a new ‘financial holding company’ category under
Section 4 of the Bank Holding Company Act. Such holding companies can
engage in a statutorily provided list (menu) of financial activities,
including insurance and securities underwriting and agency activities,
merchant banking and insurance company portfolio investment operations
Activities that are ‘complementary’ to financial activities
were/are also authorised.
The non-financial activities of firms predominantly engaged in
financial activities (at least 85% financial) are grandfathered for at
least 10 years, with a possibility for a five-year extension (73).
The expanded ranges, according to certain testimony before a
Congressional Committee, allow for technological advances and for
meeting the needs of wholesale and retail customers (74).
Additionally, the Federal Reserve Board was authorised to be the
umbrella regulator for financial holding companies, since GLBA allows
financial services firms to engage in merchant banking (75).
This activity placed American banks on a footing similar to their
European counterparts. European financial institutions engage in
investment banking, advising, and negotiating in mergers and
acquisitions activity, and in a variety of other services including
securities portfolio management for customers, insurance, the
acceptance of foreign bills of exchange, dealing in bullion, and
participating in commercial ventures (76).
PART TWO: FNMA [‘FANNIE MAE’] AND FHLMC [‘FREDDIE MAC’]:
PART TWO – A:
THE FEDERAL NATIONAL MORTGAGE ASSOCIATION [FNMA]:
The Federal National Mortgage Association [FNMA] was first organised by
the Reconstruction Finance Corporation (RFC) on 10th February 1938 with
a capital stock of $10 million, owned by the RFC, and surplus of $1
million under the name National Mortgage Association.
It was rechartered under the Housing Act of 1954, and made a
constituent agency of the Housing and Home Finance Agency.
The functions, powers, and duties of the Housing and Home Finance
Agency were transferred to the Department of Housing and Urban
Development on 9th September 1965. Effective from 1st September 1968,
FNMA was now converted into a Government-sponsored private corporation
(a Government-Sponsored Enterprise, or GSE) – with respect to its
secondary market operations for home mortgages.
Additionally, under the same legislation, the Government National
Mortgage Association (GNMA, or ‘Ginnie Mae’), was established to
continue other functions, i.e., special assistance functions,
management and specified liquidating functions, guarantees of
mortgage-backed securities, and participation sales – supervised by the
Secretary of Housing and Urban Development (HUD) (77).
On 1st September 1968, FNMA had capital consisting of privately-held
common stock worth approximately $140 billion and preferred stock held
by the Secretary of the Treasury worth approximately $160 billion. By
30th September 1968, FNMA had retired its preferred stock with proceeds
from the sale of subordinated capital debentures, thus becoming an
entirely private corporation, although a majority of its board of
directors continued to be appointed by the US Secretary of Housing and
Urban Development (HUD). Under the 1968 Act, by 1st May 1970, FNMA,
with the concurrence of the Secretary of HUD, had resolved that at
least one-third of FNMA’s common stock was or would be owned by persons
or institutions in the mortgage lending, home building, real estate, or
related businesses (78).
However, FNMA continued to operate as a Government-Sponsored
Enterprise, being treated as such in the annual Office of Management
and Budget documentation, with specific charter accords that made it
subject to several possible forms of Federal supervision, although this
supervision also provided it with several conspicuous advantages:
(1) The Secretary of the Treasury has the authority, which is
entirely discretionary, to purchase obligations of the Federal National
Mortgage Association up to a specified amount outstanding at any one
(2) The corporation’s common stock and its other securities were
to be exempt from registration requirements and other laws administered
by the Securities and Exchange Commission (SEC) to the same extent as
securities issued or guaranteed by the US Government;
(3) FNMA was made exempt from paying any taxes to any State or
local taxing authority except for real property taxes, but it pays full
Federal corporate income taxes; and:
(4) The corporation’s obligations were to be issuable and payable
via the facilities of the Federal Reserve Banks, which are paid by FNMA
for their services
It is to be noted that the FNMA’s notes and debentures (prior to 8th
September 2008) were not Federal Government obligations nor are/were
they Federally guaranteed by an agency of the Federal Government, even
though the Government-Sponsored Enterprises’ operations were routinely
incorporated in the annual Office of Management and Budget (OMB)
presentations – in recent years, with yawning gaps shown in the summary
accounts displayed in the documentation, as re-presented in Figures A
and B on pages 16 and 17, to illustrate [refers to our journal: Editor].
However, FNMA obligations were/are guaranteed by an agency of the
US Government, and having the Full Faith and Credit of the United
States behind them, are mortgage-backed bonds issued by the FNMA
guaranteed by the Government National Mortgage Association (80).
PART TWO – B:
THE FEDERAL HOME LOAN MORTGAGE CORPORATION [FHLMC]:
The Federal Home Loan Mortgage Corporation was established on 24th July
1970 under the Federal Home Loan Mortgage Corporation Act [FHLMCA] of
the Emergency Home Finance Act of 1970 (12 U.S.C. 1430, Note) (81).
This entity was established for the purpose of strengthening the
existing secondary markets in residential mortgages insured by the
FEDERAL HOUSING ADMINISTRATION or guaranteed by the Veterans
Administration, and assisting in the further development of secondary
markets for non-Federally insured or guaranteed residential mortgages
entity is also authorised to purchase residential mortgages from
members of the FEDERAL HOME LOAN BANK SYSTEM as well as other
institutions whose deposits or accounts are insured by agencies of the
US Government, US Federal Home Loan Banks, and the Federal Savings and
Loan Insurance Corporation (83).
FHLMC is empowered to raise funds to purchase the aforementioned
mortgages via the issuance of securities in the capital market. When
the FHLMC was created in 1970, this process existed only for
Government-insured or guaranteed mortgages, and it was expected that
encouraging the growth of a secondary market for conventional mortgages
would increase the effective supply of residential mortgage financing
and make mortgage investments more attractive to markets (84).
In 1972, the FHLMC developed a computerised matrix to assist the
underwriting of single-family conventional mortgages; in 1975, it
introduced the Guaranteed Mortgage Certificate (GMC) (85).
By 1977, the US secondary market for conventional residential
mortgages had matured, and by 1978, the Federal Home Loan Mortgage
Corporation had obtained Congressional approval to begin developing a
new purchase program for home improvement loans, i.e., adding new
rooms, the rehabilitation or improvement of an older home, and/or the
installation of energy efficient features (86).
Other activities that have been developed in this context
include the Renegotiable Rate Mortgage Purchase arrangement, which
created a secondary mortgage market, and a purchase program for the
Pledged Account Mortgage (PAM) (87).
Under this scheme type, so-called (Mortgage) Participation
Certificates (PCs), also known as Pass-Through Securities, are provided
in registered form only, having original principal balances of
$100,000, $200,000, $500,000, $1,000,000, and $5,000,000.
The FHLMC sells these PCs through a group of securities
broker/dealers as well as through the corporation’s own Marketing
Department. Each PC holder collects on the
pooled mortgages, including prepayments and interest. The FHLMC
guarantees punctual payment of interest and the full payment of
Guaranteed Mortgage Certificates (GMCs) represent undivided interests
in conventional (non-FHA-insured and non-VA-guaranteed) residential
GMCs pay interest semi-annually, and principal once per annum in
guaranteed minimum amounts. Any GMC certificate holder may call upon
the FHLMC to repurchase the GMC at par (value) in 15, 20, or 25 years
after the original date of issuance, depending upon the specific issue
A program of FHLMC Swap transactions was instituted in 1981 to enhance
the liquidity position of Federal Savings and the Loan Insurance
Corporation-insured Savings and Loan Associations by replacing mortgage
loans with guaranteed FHLMC Mortgage Participation Certificates (PCs)
This scheme was to operate as follows:
• A single institution (individual seller swap transaction) or a
group of institutions (multiple seller swap transactions) would sell
mortgage loans to the FHLMC with an aggregate outstanding principal
balance sufficient to meet the FHLMC’s pool formation requirement of
• The FHLMC would sell PCs to these institutions backed by the
• The associations would continue to service the mortgage loans
and pay a guarantee fee to the FHLMC. The PC rate would be keyed to the
lowest coupon rate of the pooled mortgages. Gains or losses on the
subsequent sale, purchase, or exchange of PCs emanating from these swap
transactions would be accounted for on the books of the insured
The Federal Home Loan Mortgage Corporation remains a corporate
instrumentality of the United States, but it is not considered a
Federal agency. The FHLMC has historically had been exempt from all
Federal, state, and local taxation.
On 18th January 1984, the US Congress repealed its Federal income
tax exemption, effective 1st January 1985. However, the securities sold
by Freddie Mac continue to be subject to Federal and State taxes (92).
FHLMC was, until FY 2009, displayed in the [journal] section of
the annual Office of Management and Budget documentation under the
heading ‘Government-Sponsored Enterprises’.
PART THREE: THE EMERGENCE OF ‘STRUCTURED PRODUCTS’
So-called ‘Structured Products’ are defined as representing a
pre-packaged investment strategy based on derivatives, a basket of
securities, options, indices, commodities, debt issuances, foreign
currencies, and swaps.
SEC Rule 434 defines structured securities as ‘securities whose
cash flow characteristics depend upon one or more indices or that have
embedded forwards or options or securities where an investor’s
investment return and the issuer’s payment obligations are contingent
on, or highly sensitive to, changes in the value of underlying assets,
indices, interest rates or cash flows’ (93).
‘Structured Products’ have been described as arising from the
‘needs’ of companies that want to issue debt more cheaply – one method
of achieving this objective being to issue a convertible bond. The
convertible bond is a debt that, under certain circumstances, can be
converted to equity.
Specifically, ‘convertible securities’ are securities, usually
preferred shares or else debentures, that may be exchanged for a
designated number of shares of another class, usually common shares,
called the conversion securities (94).
The ratio between the convertible and conversion securities is
fixed at the time the convertible securities are issued, and is usually
protected against dilution (95).
This exchange for the potential higher return, providing that the
investors are prepared to accept the lower interest rates, could in
theory return a greater value to the investor over time.
Investment banks, under the Gramm-Leach-Bliley Act (The Financial
Services Modernization Act), chose to append features to the basic
convertible bond – such as increased income in exchange for limits on
the convertibility of the conversion securities or principal protection.
These extra features were based upon the premise that investors
could also use strategies that employed options and other derivatives –
in a pre-packaged product. Thus, investors accepted lower interest
rates on debt, and purchased new products with higher promised returns
via option and derivative features.
• Derivatives are actually contracts that derive their value from
the underlying or supporting securities instrument, and offer
investment managers and traders numerous risk and return strategies
that were traditionally unavailable or too expensive to implement (96).
• Derivative contract instruments involve futures, forward, and option
• A futures contract is an agreement to buy or sell a specific
amount of a commodity or financial instrument at a particular price on
a specific future date (97).
• A forward contract is similar to a futures contract, since it is
an agreement to buy or sell the future delivery of a valued item at a
specified price at a specified date (98).
However, this contract is not standardised and is traded
Over-The-Counter (OTC) by direct contact between the buyer and seller,
and is not marked to the market (marked-to-market), i.e., there is no
interim cash flow between the parties (99).
Additionally, forward contracts embrace credit risk, since either
party may default at the contracted time and price due to the lack of a
formal exchange to vet the creditworthiness of the parties (100).
An option contract is an agreement which the seller of the option
grants the buyer the right to purchase (from, or to sell to), the
seller, a designated (security) instrument at a specific price within a
specified time frame (101).
The seller is referred to as the writer, and the buyer’s payment
is referred to as the option price or option premium.
Finally, when the option’s instrument is purchased or else sold,
this transaction is referred to as exercising the option, and the price
paid at the delivery of the option instrument is the strike price. The
right to buy the option is a call option, and the right to sell the
option is a put option (102).
Options can also be written, or sold, on cash instruments or
Combinations of derivatives and financial instruments create
structures that have (had) significant risk/return and/or cost savings
Thus, ‘Structured Products’ are designed to provide investors with
highly targeted investments correlated to their (the investor’s)
specific risk profile, given the return requirements and market
expectations as analysed by the investment bank.
The financial engineering tricke yields a 'value' for the
derivative securities – based on combining the ‘underlyings’
(underlying security instrument) like shares, bonds, indices or
commodities – with derivatives, to produce the projected values of the
options, forwards, and swaps (103).
The process of hedging with futures is a bond or investment bank
portfolio manager’s method of counteracting the risk involved in
holding long term debt instruments, since derivatives are not disclosed
on the balance sheet, due to their short-term nature
Swapping futures that have cash-streams gives the appearance of
containing any risk of default of the debt instrument.
Moreover the issuers can avoid any SEC disclosure, since these
contracts have not been required to be disclosed on their financial
statements. For instance, in 1996, Wall Street traded $500 billion in
Repos and $200 billion in currency and interest rate swaps every day,
without disclosure (105).
• A Mortgage-Backed Certificate (MBC) is a ‘Structured Product’
that is backed by mortgages.
Such MBCs are issued by both the Federal Home Loan Mortgage
Corporation, and the Federal National Mortgage Association. Other types
of such certificate are guaranteed by the Government National Mortgage
Investors in these instruments receive payments for the interest
and principal paid on the underlying mortgages. Until the 7th September
2008, Mortgage-Backed Certificates and the secondary mortgage market
was meant to have helped (in theory, at any rate) to keep mortgage
money available for home financing purposes (106).
• A Collateralized Debt Obligation (CDO or CBO) is another type of
‘Structured Product’, comprised of investment-grade bonds backed by a
pool of variously rated bonds, including junk bonds. CDOs represent
different degrees of credit quality, rather than maturities.
Underwriters of CDOs package a large and diversified pool of bonds,
including high-risk, high-yield junk bonds, which are then separated
Typically, the top tier represents the higher quality collateral
(paying the lowest interest rates), the middle tier is backed by
riskier bonds (paying a higher interest rate), and the bottom tier
represents the lowest credit quality with no fixed interest rate
(paying residual interest payments – that is, money left over after the
other tiers have been paid out) (107).
• A Collateralized Mortgage Obligation (CMO) is a mortgage-backed bond
that separates mortgage pools into different maturity classes, called
This type of ‘Structured Product’ applies income from payments and
pre-payments of principal and interest from the mortgages in the pool
in the order that the CMO pays out. Tranches pay the income stream in
different rates of interest with maturities from a few months to 20
CMOs are issued by FREDDIE MAC and other private issuers, and they
are backed by Government guarantees or by other top-grade mortgages
with AAA ratings. However, if mortgage rates drop sharply, the
resulting flood of refinancings of mortgages could cause pre-payments
to soar; and in these circumstances, CDO tranches will be repaid before
the expected tranche maturity (108).
• Collateralized Debt Obligations Cubed (CDO-CUBED) are so-called
special-purpose vehicles or entities with securitised payments in the
form of tranches. CDO-CUBED are backed by a pool of Collateralized Debt
Obligation Squared (CDO-SQUARED) tranches. CDO-CUBED allow the banks to
resell the credit risk that they have taken once again, by repacking
their CDO-SQUAREDs (109).
• A CDO-SQUARED is a CDO in which the collateral portfolio or
reference portfolio consists of other CDO tranches (110).
another ‘Structured Product’ is the Credit Default Swap (CDS), an
instrument that was first developed in the late 1990s for bonds, loans,
and similar instruments related to bank transactions. Within a CDS, one
party (the protection buyer) buys protection on the credit or risk of
default, and the other party or counter-party is the seller (the
protection seller), who sells the credit protection.
The primary ‘benefit’ of the Credit Default Swap is its power as a
new source of risk distribution – since it frees up regulatory capital,
which facilitates additional business. Payout is linked to a credit
event (default) and to the performance of a reference entity (i.e., the
underlying obligor), not to a specific bilateral trade transaction.
Interestingly, since there is no transfer of ownership of the
underlying asset, the CDO tool solution can be cheaper and more
flexible than an assignment of the underlying asset (111).
These are the formal features of these exotic instruments.
PART FOUR: THE U.S. TREASURY SEIZES FNMA AND FHLMC
On Sunday, 7th September 2008, in the context of the exposures of
massive financial fraud and meltdown revealed by this service, the
(former) US Treasury Secretary, Mr Henry M. Paulson Jr., announced
plans to take control of Fannie Mae (FNMA) and Freddie Mac (FHLMC), to
replace the companies’ Chief Executives, and to provide up to $200
billion in capital to restore the enterprises or agencies to ‘financial
that more than $5 trillion of debt and mortgage-backed securities
issued by Fannie and Freddie is owned by central banks and other
He elaborated: ‘Failure of either of them would cause great
turmoil in our financial markets here at home and around the globe’
seizure transferred directly into the US Government’s hands control of
the bulk of the secondary home mortgage market, and assumed direct
responsibility for ‘solving the housing crisis’. It marked the total
failure of the public-private experiment that was developed to create a
robust home ownership environment for Americans, via companies with
private shareholders seeking to maximise profits with public oversight
and fiduciary responsibility (114).
attempt to bolster the US mortgage market, the US Treasury was to buy
on the open market at least $5 billion of new mortgage-backed
securities issued by Fannie Mae and Freddie Mac (115).
Accordingly, this arrangement protects the investments of
bondholders, including mutual funds that hold huge amounts of debt
issued by both corporations.
The Treasury’s intervention also specifically assisted those
investors such as Pacific Investment Management Company, the
substantial Newport Beach, CA, bond manager, that had only recently
purchased large amounts of mortgage-backed bonds.
Initially, Treasury was to purchase $1 billion of preferred shares
in both of the former Government-Sponsored Enterprises. The preferred
shares were to yield 10% and were to be senior to those issued earlier
– thus giving the Government the first right to receive dividends.
The US Treasury was also to receive warrants that give the
Government the right to a 79.9% share for a nominal amount.
The US Treasury further pledged to provide up to $200 billion to
the companies so that they may survive despite heavy losses on mortgage
However, existing common shareholders would suffer a dilution of their
shares and earnings if the Government exercises its warrants.
The preferred shareholders may fair better, since the Office of
Thrift Supervision has stated that roughly 2% of the 829 companies that
it regulates have a concentration in common or preferred shares of
Fannie Mae or Freddie Mac surpassing 10% of their Tier 1 capital.
Regulators say they will work ‘to develop capital-restoration
plans ‘to resolve this issue’’ (117).
The Treasury has imposed Conservatorships on the Federal National
Mortgage Association (FNMA) and upon the Federal Home Loan Mortgage
Corporation (FHLMC), with control and supervision of day-to-day
operations to be provided by the Federal Housing Finance Agency, which
is designated as the ‘regulator’ of the two entities.
This required the CEOs of Fannie Mae and Freddie Mac to step down,
and the replacement of the firms’ Boards of Directors. Additionally,
dividends on common and preferred stock were eliminated at both the
enterprises. The entities could increase their guarantee
mortgage-backed securities holdings without limits, and could still buy
replacement securities for their portfolios (118).
Another aspect of this seizure was that the enterprises/agencies were
provided with a back-stop credit facility. Secured loans were to be
made available on an ‘as needed’ basis until the end of 2009, to be
based on available collateral to match the requested loan. Loans were
to be funded directly from the General Fund at the Federal Reserve Bank
of New York. Such loans would not be extended with maturities beyond
31st December 2009 (119).
The US Treasury’s scheme limited the size of each of these enterprises’
mortgage portfolios to a maximum of $850 billion as of the end of 2009.
Currently, the portfolios own or guarantee about $5.3 trillion in
mortgages and related securities.
Effective beyond 2009, the Treasury intends the enterprises’
mortgage holdings to shrink by about 10% a year until each entity
reaches $250 billion (120).
THE LEGALISATION OF FINANCIAL CORRUPTION: DESCRIPTIONS OF THE RESULTING
FINANCIAL FRAUDS AND SCAMS
DERIVATIVE SCAM METHODOLOGY:
MBS-CDO-CDS LOAN ORIGINATION
Loan origination begins with a prospective home buyer and with a valid
mortgage seller, i.e., an individual makes an application for a
mortgage loan from a mortgage bank. Upon the appropriate financial
investigation, the applicant is approved as the mortgage borrower. The
mortgage loan is a debt instrument giving conditional ownership of an
asset, secured by the asset being financed.
The borrower gives the lender a mortgage in exchange for the right
to use the property while the mortgage is in effect, and agrees to make
regular payments of principal and interest. The mortgage lien is the
lender’s security interest and is recorded in title documents in US
public land records (UCC1). A mortgage involves real estate and is a
long-term debt, normally 25-30 years (121).
Originally, mortgages were written exclusively as fixed-rate fully
amortizing loans, but they have evolve dinto loans that are more
flexible. Recent innovations in the packaging of mortgage loans for
resale in the Secondary Mortgage Market to investors have helped to
create a national market for mortgage lending and a wide variety of
synthetic financial instruments (122).
The mortgage issuing bank executes and lodges a UCC1 at the appropriate
office of public records in the local court house department (in the
United States) as a matter of public information and also legal
authority. The mortgage lien (UCC1) is subject to a code of US
legislation governing various commercial transactions, including the
sale of goods, banking transactions, secured transactions in personal
property, and other matters that are designed to bring uniformity to
these areas in the legislation of the various states that have adopted
the Uniform Commercial Code (123).
Mortgage Note is a written promise to repay a mortgage loan plus
interest. This gives the lender a security interest in the mortgage
property. The Mortgage Note is the Promissory Note stating the
principal amount due, the rate of interest, and the terms for repayment
of the funds advanced. The borrower signing the Note, and any
cosigners, are personally liable to repay the debt – and are detailed
in the UCC1 (124).
US Federal or private insurance programs that protect mortgage lenders
against the default risk generally require mortgage insurance. The
mortgage insurance premium is paid by the borrower. Federal insurance
coverage is administered by the Federal Home Loan Housing
Administration, and private mortgage insurance programs are
administered by private insurance companies. Private mortgage insurance
is provided by specialised insurance companies (125).
The mortgage banker originates mortgages for resale to investors, and
derives income much like a merchant banker – via origination fees and
Loans are sold in one or two ways: (a) By private placement of
whole loans or pools of loans with a single investor, typically an
institutional investor, such as an insurance company; or elee: (b) by
issuance of securities that are backed by mortgage loans
[Note: The originating and early stages of the process are illustrated
in the first chart, Figure One, not shown here].
INSTITUTIONAL ORIGINATION, SALE AND RESALE OF MBS, CDS & CDOs:
In this type of scam [Figure 2 in our printed edition], the investment
banker (or firm) acts as the underwriter or agent serving as
intermediary between the issuer (the mortgage banker, et al.) of the
securities, and the investing public.
• A firm-commitment underwriting occurs when the investment
banker, either as manager or participating member of an investment
banking syndicate, makes outright purchases of new securities from the
issuer and distributes them to dealers and investors – profiting on the
spread between the purchase price and the public offering or selling
• A best effort offering is a conditional arrangement whereby the
investment banker markets a new issue without underwriting it, acting
as an agent rather than principal and taking a commission for whatever
volume of securities the banker succeeds in marketing to parties who
may not have performed adequate due diligence.
• Another type of conditional arrangement is referred to as a
standby commitment, when the investment banker serves clients issuing
new securities by agreeing to purchase for resale any securities not
purchased by existing holders of rights (128).
The secondary mortgage market is defined as the buying, selling, and
trading of existing mortgage loans and mortgage-backed securities that
have been underwritten and packaged for resale – to provide liquidity
for the originating lending institution (129). Mortgages originated by
the lenders are purchased by Government agencies (namely, the Federal
Home Loan Mortgage Corporation and the Federal National Mortgage
Association), and by investment bankers, (such as (formerly) Lehman
Brothers, and by Goldman Sachs, etc.).
These agencies and bankers, in turn, create pools of mortgages,
which they repackage as mortgage-backed securities, called Pass-Through
Securities or Participation Certificates, which are then sold to
investors. Thus, the secondary mortgage market encompasses all activity
beyond the Primary Market, which is between the homebuyers and the
originating mortgage lender (130).
• Pass-Through Securities represent pooled debt obligations repackaged
as shares, that pass income from debtors through the intermediary, to
investors. The most common type of so-called pass-through is a bog
standard Mortgage-Backed Certificate, usually Government-guaranteed,
where homeowners’ principal and interest payments pass from the
originating bank or Savings and Loan through a Government agency or
investment bank to investors, net of service charges. Other types of
assets marketed via pass-through are auto loans and/or student loans
• Additionally, Participation Certificates represent an interest
in a pool of funds or in other instruments, such as a mortgage pool
underwriting process of creating a pooled debt obligation is the
business of investment bankers, who usually form an underwriting group,
(a purchase group or syndicate), to pool the risk and assure
‘successful’ distribution of the issue.
The syndicate operates under an agreement among underwriters. The
underwriting group appoints a managing underwriter or lead underwriter,
who/which is usually the originating investment bank/ banker that
prepares the plan details and the SEC registration material (133).
The underwriting agreement represents the underwriters’ commitment
to purchase the securities, and gives details of the public selling
price, the underwriting spread, including all discounts and
commissions, the net proceeds to the issuer, and the settlement date.
The issuer agrees to pay all expenses incurred in preparing the issue
for resale, including the costs of registration with the SEC and of the
prospectus, and agrees to supply the managing underwriter with
sufficient copies of both the preliminary prospectus and the final,
statutory prospectus (134).
The issuer guarantees:
(1) To make all required SEC filings and to comply fully
with the provisions of the Securities Act of 1933;
(2) To assume responsibility for the completeness, accuracy,
and proper certification of all information in the registration
statement and prospectus;
(3) To disclose all pending litigation;
(4) To use the proceeds for the purposes stated;
(5) To comply with State securities laws;
(6) To work to get listed on the agreed-upon exchange; and
(7) To indemnify the underwriters for liability arising out of
or misrepresentations for which the issuer had responsibility (135).
• Figure 1 on page 25 [of the journal: see Special Chart Note below]
provides a flowchart to illustrate how these MBS/CDO/CDS scams are
structured and develop, identifying the primary institutions involved.
This chart is reproduced exactly as supplied to us by our expert
adviser, Michael C. Cottrell, B.A., M.S., with visual enhancement by
the Editor of this service.
• Figure 2 on page 27 [of the journal: see Special Chart Note
below] ‘zooms’ in on the right-hand component of Figure 1, showing how
the institutional resale of the MBS/CDS/CDOs is scammed
internationally, showing the underwriting, issuing, selling, and the
purchasing of the mortgage-backed securities of FNMA and FHLMC via
As noted, prior to 8th September, 2008, FNMA and FHLMC were both
Government Sponsored Enterprises (GSEs) which owned or guaranteed
approximately 50% of the mortgage market in the United States,
aggregating over $5 trillion of outstanding debt and mortgage-backed
securities issued by them (136).
As publicly traded securities, these GSE-issued
mortgage-backed securities were purchased by other mortgage
originators, securitised by them, and ‘re-sold’ by them as
mortgage-backed securities to other investors (137).
The referenced world-wide institutions shown in Figures 1 and 2 –
Goldman Sachs, A.I.G., Lehman Brothers, Morgan Stanley. Citibank.
JPMorganChase, Wachovia, Deutsche Bank, Barclays Bank, Bank of England,
NatWest [RBS], Coutts [RBS], General Motors, Ford Motor Company and
General Electric – purchased, re-packaged, and re-sold the various
‘Structured Products’ under the guise of offsetting the risks of the
‘challenging market environment’, according to numerous financial
experts who ventilated on this subject between 2001 and September 2008.
Even after the credit freeze that developed following the measures
taken in mid-September 2008 in the United Kingdom which resulted in the
placement into ‘lockdown’ of $6.2 trillion of LOAN funds plus $7.8
trillion of sovereign funds for the Settlements (= $14.0 trillion)
referenced in our website reports – thereby depriving the carousel of
its illegally exploited ‘real’ cash base – there have been innumerable
attempts to induce the public to view ‘Structured Products’ in a
For instance, on 5th November 2008, The Wall Street Journal
displayed more than one full page describing the advantages and values
of ‘Structured Products’ and why investors should continue to buy them,
promoting them as tools to help manage volatility and to protect
WALL STREET JOURNAL COMMENTS ON ‘STRUCTURED PRODUCT’ TYPES
Regarding the standard types of ‘Structured Products’, the article
stated that some use leverage to enhance upside returns and may or may
not cap (limit) the upside.
• Absolute Return Notes: Pay returns if the underlying (security)
goes up or down but are not traded outside a specific range (139).
• Buffered Return Enhance Notes:
Provide downside protection if the ‘underlyings’ do not breach a preset
barrier, while Reverse Convertible Securities pay handsome coupons and
the performance upside of a stock; but if the stock breaches a downside
price, they will convert into that stock’s shares (140).
There are also Partial- or Fully Principal-Protected Notes, which
guarantee that some or all of an investor’s principal will be returned
at maturity even if the underlying performs poorly (141).
The Wall Street Journal article elaborated:
‘Issuers of Structured Products are large investment banks or
affiliated firms in the United States or around the world. Issuers may
craft a structured investment that they believe would appeal to many
investors, then sell these so-called ‘off-the-shelf' investments’
through large, regional or independent broker/dealers, and/or financial
planners. An issuer may also customize a single Structured Product
tailored to a specific investor’s needs’ (142).
Additionally, the WSJ article concluded that ‘… one important aspect
with structured investments is to understand the credit risk in the
product, i.e., the risk that an issuer may not be able to honor its
obligation to repay investors in the future is a risk inherent in many
Structured Products…’ (143).
NEW DERIVATIVE SCAMMING LEGISLATION:
THE EMERGENCY ECONOMIC STABILIZATION ACT OF 2008
Public Law 110-343, also known as The Emergency Economic
Stabilization Act of 2008, was signed into law by President Bush Jr. on
3rd October 2008.
Within this act was also enacted the Troubled Assets Relief
Program (TARP) which authorised the US Secretary of the Treasury to
spend up to $700 billion to purchase distressed assets. The Act stated
that its purpose is: ‘To provide authority for the Federal Government
to purchase and insure certain types of troubled assets for the
purposes of providing stability to and prevent disruption in the
economy and financial system and protecting taxpayers, to amend the
Internal Revenue Code of 1986 to provide incentives for energy
production and conservation, to extend certain expiring provisions, to
provide individual income tax relief, and for other purposes’ (144).
The law authorised the Secretary of the Treasury to draw up to $250
billion for immediate use, and then required the President of the
United States to certify when an additional $100 billion of funds are
needed. Disbursement of the final $350 billion was subject to
Congressional approval (145).
Mr Neel Kashkari was appointed on 6th October 2008, by Treasury
Secretary Paulson, as the interim head of the Office of Financial
Stability , formed under the legislation, and was tasked to administer
the TARP program (146).
The Troubled Assets Relief Program has several administrative units:
(1) A Mortgage-backed Securities Purchase Program – to identify
which of the troubled assets should be purchased, and the purchase
mechanism to be used;
(2) A Whole Loan Purchase Program – to identify which types of
loans should be purchased first from regional banks, and how to value
them, since the banks are clogged with whole residential mortgage loans;
(3) An Insurance Program – to establish a viable scheme to insure
troubled assets, including mortgage-backed securities and whole loans;
(4) An Equity Purchase Program – to purchase equity in a broad
array of financial institutions; and
(5) A Home Ownership Preservation Scheme – to help US homeowners
when TARP purchases mortgages and MBS securities, and other ‘Structured
However, by 12th October 2008, it had become evident that TARP as
described to Congress and as administered by the Office of Financial
Stability could not be operated in accordance with the legislation and
On 23rd September 2008, Treasury Secretary Paulson had told the US
Senate Banking Committee that ‘some said we should just stick capital
in the banks, take preferred stock in the banks. That’s what you do
when you have failure, this is about success’(148).
also told lawmakers that it made more sense to jumpstart the frozen
credit markets (frozen over, due to the MBS-CDS-CDO illiquidity) with
‘market measures’, by which he meant buying up assets rather than
Then, within a few days, Mr Henry M. Paulson Jr. confirmed his
intention to buy stakes in banks by asserting that: ‘We can use the
taxpayer’s money more effectively and efficiently, get more for the
taxpayer’s dollar, if we develop a standardized program to buy equity
in financial institutions’(150).
The Treasury was the source of the US
Federal Government’s plan, under the disreputable Bush II
Administration, to buy up to $700 billion of illiquid Mortgage- Backed
Securities (MBS) with the supposed intent to increase liquidity in the
secondary mortgage markets and to reduce potential losses by financial
institutions owning these securities (151).
TARP was sold to Congress on the basis that the US Treasury would
spend the $700 billion on the frozen credit securities in a ‘reverse
auction’ whereby financial institutions are invited to compete against
each other in offering to sell their mortgage-backed securities at a
Bonds for a single pool of mortgages are divided into more than a
dozen tranches, with different seniority, different credit ratings, and
different rules for payment.
The performance of the underlying mortgages (‘the underlyings’)
varies greatly from one pool to another. It was against this background
that Mr William Poole, a retired President of the Federal Reserve Bank
of St. Louis, stated: ‘I am not aware that the Treasury Department
presented any evidence on auctions that have been successful when they
are used for assets that are so heterogeneous’(152).
THE TARP OPERATION AND MR KASHKARI
Within Public Law 110-343, Congress required the formation of a
Congressional Oversight Panel to ensure the proper usage and
expenditure of the TARP funds. (This development replicated and
probably copied Mr Cottrell’s demand for the insertion of an Oversight
Panel when it transpired early in 2008 that any transactions involving
Leo/Lee Wanta could not be contemplated without such a safeguard –
prior to the necessary and unavoidable severance of relations between
Mr Cottrell and Wanta, publicised on our website in March 2008 and by
The Interim Assistant Secretary for Financial Stability, Neel
Kashkari, submitted an update on 8th December 2008, with respect to the
oversight arrangements made for the Troubled Assets Relief Program
(TARP). An appointed Oversight Panel Board selected the Federal
Reserve Board Chairman, Dr Ben Bernanke, to be Chairman of the
Oversight Board. The legislation required the Board to meet once a
month, but it met five times in the space of two months, with numerous
staff calls between meetings. Additionally, the law required the
appointment of a Senate-confirmed Special Inspector General to oversee
the program (154).
The legislation also required the Government Accountability Office
(GAO: previously the more appropriately named Government Accounting
Office) to establish a physical presence inside the US Treasury to
monitor the TARP.
The US Treasury duly provided workspace for the auditors within
days of the President signing the law, and the Treasury Secretary, Mr
Paulson, had his first call with the Acting Comptroller General, Mr
Gene Dodaro, on Tuesday 7th October 2008. The Acting Comptroller
General and his team met the US Treasury’s team for the first time on
Thursday 9th October 2008.
Subsequently, Mr Kashkari participated in multiple briefings with
the GAO and the respective staffs met almost daily for ‘program
updates’, and to review contracts (155).
The GAO’s very conscientious staff met the Treasury’s team on Saturday
22nd November 2008, before their report was finalised. The GAO’s report
provided a review of the TARP programs and progress – essentially a
snapshot at the 60-day mark of this large and complex project (156).
The law required the US Treasury to publish a Transaction Report within
two business days of completing each transaction. The US Treasury
proceeded to publish four transaction reports – on 29th October 2008,
17th November, 25th November, and 26th November 2008 – covering the 54
transactions then competed (157).
The law also required the US Treasury to publish a Tranche Report to
Congress within seven days of each $50 billion commitment that has been
The comprehensive Tranche Report must provide details on the
• The transactions undertaken to date.
• The impact of these transactions on the financial system.
• The challenges that remain to be addressed: plus:
• Additional measures that may be necessary to address those
The US Treasury published, to begin with, three Tranche Reports –
on the 3rd November, 21st November, and 2nd December 2008 (158).
Further, the law required the Treasury to provide a detailed report on
the overall program within 60 days of the first exercise of the TARP
That report was submitted to the Congress on 5th December 2008
At this stage, Mr Kashkari stated in public that ‘we must remember
that just over half of the money that was allocated to the Capital
Purchase Program has been received by the banks’ (160).
On Monday 8th December 2008, the US Senate confirmed New York
Prosecutor Neil Barofsky as the Special Inspector General within the
Treasury Department who was responsible for auditing TARP. On that
self-same day, the US Treasury Department released a statement
notifying Congress that it had committed a total of $335 billion to
financial-rescue programs since October 2008. This amount left $15
billion remaining in the first tranche of $350 billion approved by
HOW THE LEGISLATION ASSISTED THE FINANCIAL FRAUDSTERS:
THE PAULSON TREASURY’S TARP $700 BILLION PLATFORM SCAM
Figure 3 [of the journal: see Special Chart Note below]
illustrates the process of taking the private mortgage, commercial
mortgage, credit card loans, and/or any other fungible debt, and via
the underwriting group or underwriting trust pool, and turning that
debt into a securitised ‘Structured Product’ to be pooled and sold into
the global institutional market place.
The boxes in the ICR charts indicating ‘Pool A-1’ etc. represent
the securitised pools of mortgages, and other ‘assets’, and the various
tranches of these ‘Structured Products’.
These tranches and/or pools are then sold on to the banks,
investment banks, and ‘financial products’ companies for re-sale and/or
re-packaging and then re-sale to international banks, investment banks,
Treasury Secretary Henry Paulson’s TARP plan to obtain unlimited
authority over $700 billion was premised on the basis that via a
reverse auction, the structured products/derivatives could be purchased
by the Treasury TARP group and re-packaged, via the new FNMA and
FREDDIE MAC, and then re-sold at a profit.
BASED ON THE FALSE PRESUMPTION THAT THE ‘ASSETS’ HAVE VALUE
This operation assumed that the illiquid derivatives have a specific
value or a market value.
Such an assumption is definitely false, since there is NO actual
and specific asset that is directly attached to the structured product
– given the obvious fact that the asset was split from the locally
filed UCC-1 that defines who is the mortgagee and mortgagor, and who
has legal claim to the asset once the mortgage or debt is paid in full.
• IN OTHER WORDS, holders of these fake, exotic ‘assets’ have no
recourse to the original underlying source(s) of ‘real money’ funds.
SEPARATION OF THE ASSET AND THE LEGAL AUTHORITY TO CLAIM THE ASSET
This separation of the asset and the legal authority to claim the asset
occurred during the financial securitisation process of pooling,
re-pooling, and re-packaging – supposedly (for international public
consumption) to spread the risk of default to as many holders as
possible – thus furthering the development of the Credit Default Swap
The typical CMO (‘Structured Product’) has ‘A’, ‘B’, ‘C’, and ‘Z’
tranches, representing fast pay, medium pay, and slow pay bonds plus a
tranche that bears no coupon but receives cash flow from the collateral
remaining after all the other tranches are satisfied (see previous
More sophisticated CMOs have multiple ‘Z’ tranches and a ‘Y’ tranche
incorporating a sinking funds schedule (163).
Figure 3 illustrates a non-public TARP program, prior to the
appointment of Mr. Kashkari, et al. and the Congressional Oversight
Under the guise of a government ‘bailout’ theme and marketed to
Congress and the US general public as being for the purpose of buying
the illiquid asset-backed securities, Treasury Secretary Paulson
intended to operate TARP as a Trading Platform – that is to say, as an
International Hedge Fund benefiting from US Government Guarantees –
from within Treasury (behaviour which has hitherto been completely
illegal) to purchase, at a higher price than necessary, the CDO, CDS,
MBS etc. derivatives from the very entities and banks that have
directly contributed to the mass-production and sale of these toxic
illiquid ‘Structured Products.
The purpose of this Trading Platform was/is therefore to use
public funds to quantify the value of the toxic products, and to
overpay the elitist holders, i.e.: the likes of leading Fraudulent
Finance specialists, viz: AIG, CITIBANK, GOLDMAN SACHS, CARLYLE
CAPITAL, CARLYLE GROUP.
BECAUSE, once the ‘Structured Products’ had been valued, via
reverse auction, and purchased, Paulson and his friends would then be
able to re-pool and re-package the relevant derivatives via FNMA and
FHLMC for re-sale into the demonstrably gullible marketplace, where the
phrase ‘due diligence’ appears to be foreign to many operators in the
market – thereby repeating the process for as long as possible.
Profits from this Trading Platform could then be transferred to an
unknown Master Custodial Account set up within the external
international monetary system – such as a receptacle set up for this
purpose by President George W. Bush Jr. in Benin, West Africa – without
the knowledge of, or any accountability to, the American Taxpayer, the
US tax authorities, or anyone else.
Thus, public funds were to be used yet again to generate private
accruals, while a massive fraud would be concealed under cover of the
necessity of ‘managing’ the illiquidity of the ‘Structured Products’
and regaining credit flow within the international banking system. See
the flow charts: Figures 1-3 in the International Currency Review
presentation [see Special Chart Notes below]
References and Notes:
General Note: Some use has been made of references captured via
Wikipedia, an on-line ‘do-it-yourself’ encyclopaedia. The Editor is not
enamoured of these ‘communising’ websites which seek to make
information universally available, given that a hidden agenda may apply
in some cases. For instance, a certain US platform allows its ‘users’
to upload copyrighted material and then says that it is compliant with
US legislation if the illicit upload of the copyrighted material is
pointed out to them:
in other words, the entity specifically claims that it is not
required to perform due diligence and has no duty of care with regard
to infringements of copyright belonging to others.
In that case, it is known
that the object of the exercise is to steal the copyright material and
to drive small publishers out of business. It is the Editor’s specific
experience that alteration of errors on Wikipedia has been followed by
the restoration of those errors. In the
instances noted below, Mr Cottrell has ‘seen through’ Wikipedia to the
original sources, which should be referenced should further research be
01. Michael C. Cottrell, ‘Elite Power and Capital Markets’,
(Master of Science Thesis, Mercyhurst College, 2001), page 81.
02. Ibid., page 81.
03. Cottrell, ‘Elite Power and Capital Markets’, page 80.
160. Ibid., page 4.
161. Maya Jackson Randall and Michael R. Crittenden, ‘Treasury Could
Improve Management of TARP’, The Wall Street Journal, December 9, 2008,
Dow Jones: New York, 2008, page C4.
162. John Downes, A.B., and Jordan Elliot Goodman, A.B., M.A., eds.,
‘Dictionary of Finance and Investment Terms’, s.v. ‘Tranches’.
Captions to the charts that appear in International Currency
Review Volume 34, Number 2 [March 2009] but are not shown in this
Figure 1, page 25 of the journal: MBS-CDO-CDS scam (Fraudulent
Finance) flowchart, showing how a single loan triggering one solitary
cashflow of mortgage payments is typically leveraged and intermingled
with other such origination cashflows into exotic ‘derivatives’ known
as ‘Structured Products’ via pools which are sold on to investment
banks before being marketed internationally, where the US securities
legislation (the 1933 and 1934 Securities Acts) does not apply. There
is no precedent for such colossal OFFICIALLY organized fraud.
Figure 2, page 27 of the journal: MBS-CDO-CDS scam (Fraudulent
Finance) flowchart: Institutional sale and resale of so-called
‘Structured Products’ that have zero intrinsic value because beyond the
originating Mortgage Bank, none of the subsequent parties enjoys
prospective access to the single originating stream of funds. As a
former Goldman Sachs official, speaking privately, told the Editor of
this service: ‘These ‘assets’ are worth what someone is prepared to pay
Since they have been comprehensively discredited, except among
those compartmentalised intermediaries, bankers, intelligence cadres
and others who may not yet be ‘up to speed’ (if any such creatures
remain, which given developments since September 2008, logic would
suggest is unlikely), ‘what someone is prepared to pay for them’
effectively means nothing. As Mr Michael C. Cottrell’s narrative shows,
the Paulson Treasury TARP operation had as one of its hidden purposes
the injection of ‘value’ into worthless hybrid collectivised ‘assets’.
• Addendum: Of course, this is the PRIMARY OBJECTIVE of both the
Geithner TARP deception and its Obama Administration successor schemes.
Figure 3, page 33 of the journal: This chart shows how the routine
operations of the Fraudulent Finance ‘Money Machine’ were to be
‘revalidated’ via the Paulson Treasury’s Troubled Assets Relief Program
(‘TARP’) enacted within the Emergency Economic Stabilisation Act of
2008, signed into law by President George W. Bush Jr. on 3rd October
2008. Specifically, the diagram exposes the fact that $700 billion of
US taxpayers’ funds and new Federal Government debt was in fact to be
deployed for the specific benefit of Carlyle, Carlyle Capital, George
Bush Sr., James Baker and others, who are responsible for the financial
crisis not least by blocking the sole answer: the On-the-books
In further work we've done on this subject, we have extended these
charts to demonstrate that the Geithner TALF Plan is specifically
intended for the same purpose: to refund the likes of Carlyle and
Carlyle Capital, under cover of purporting to be specifically designed
to ‘stimulate’ the economy.
Unlike the private sector Refunding Programme agreed by the Group
of Seven financial powers in 2007 and 2008, the Paulson-Geithner
‘solution’ theoretically generates revenue all right (assuming there
are any fools out there internationally who will fall for this new
generation of officially driven derivatives Ponzi scamming) while
perversely and unnecessarily generating colossal mountains of Treasury
debt on the other side of the balance sheet of the US Federal Government
In this context, revenues generated from this ‘Legitimised
Fraudulent Finance’ will yield, say, 35% in tax accruals – always
provided the proceeds are held on-balance sheet, contrary to the
practice hitherto of holding the proceeds off-balance sheet in offshore
accounts and untaxed (tax evasion); whereas 100% of official debt will
have been UNNECESSARILY created in the background: thereby mortgaging
the futures of several generations of Americans.
THE WHITE HOUSE/CIA MOTIVE: TO STAY IN CONTROL
The reason that this disastrous Fraudulent Finance approach has been
adopted by the Obama Administration is that, by this means, the
Government and its corrupted cronies STAY IN CONTROL OF TRADING
OPERATIONS WITH NO COMPETITION. That is the motive.
By contrast, the pure way of achieving a sound recovery within the
exiting framework without creating ANY NEW DEBT AT ALL, is for the
private sector to handle the refunding operation WITH NO GOVERNMENT
That way, the Government gets to tax 35% of the accrued proceeds
of the eight on-balance sheet trades per banking day, thus acquiring
NEW MONEY WITH NO DEBT.
The Obama Administration's decision to pursue the reprobate course
represents a wilful refusal to conduct the affairs of the US Treasury
in a responsible manner, representing TREASON against the American
people and the Republic.
The ‘reason for the Treason’ is that it knows that there is a
SOUND WAY TO PROCEED and has deliberately chosen the unsound route for
unsound reasons, instead.
Since the Obama Administration’s unsound decision will gravely
impair the prospects not only of the American people but of ‘the whole
of humanity’, it represents effectively a DECLARATION of FINANCIAL
WARFARE ON THE REST OF THE WORLD,
WHICH IS TO BE FLOODED WITH 'TRASHETS'.
‘We will do things OUR way’, even though WE KNOW that what we
intend to do is irresponsible, reckless, economically illiterate, and
is the financially unsound route to perdition:
AND THE WHITE HOUSE KNOWS IT.
• LATE NEWS: FREEDOM
WATCH USA JUMPS ON OUR BANDWAGON
Although we have no brief at all for Larry Klayman, the agitprop group
Freedom Watch USA that he runs out of Washington DC has expanded a
class action lawsuit filed in US Federal Court in Los Angeles on behalf
of shareholders in A.I.G. (American International Group) which has just
been amended to include Treasury Secretary Geithner, former Treasury
Secretary Henry M. Paulson and the former Chairman of the SEC
AIG shareholders have seen the value of their shares collapse by
an estimated $214 billion. We must be sharply aware that this lawsuit
may, like the lawuits referenced in our preceding report, represent a
component of the CIA’s ‘collapsing’ operation, which is now in full
gear, whereby all strands of the multi-faceted scandal are ‘collapsed’
into a welter of open-ended litigation, so that the underlying issues
become sub judice and nothing ever gets resolved (on purpose). It’s the
Bush/DVD CIA’s neat way of hiding their incessant thefts.
However some of the public comments made by this operator echo
findings published in our reports, even though of course Klayman cites
that Missouri Professor as his inspiration (without mentioning that the
Missouri Professor Black ‘may have been’ jolted out of his serial
academic daydreams by this service).
• ‘The American people, not the compromised ruling elite in
Washintgon, DC, have begun a second American Revolution to take the
country back from the con men on Wall Street and on Pennsylvania
Avenue, who under successive Administrations played a central part in
the meltdown of the US financial system and economy’.
• ‘The inspiration for this amendment was information disclosed by
Missouri Professor William K. Black on the Bill Moyers’ Public
Broadcasting Service television show last Friday, when he implicated
these Government officials in a massive cover-up of the banking
scandal, mostly for the benefit of Goldman Sachs, the former employer
of both Paulson and Geithner, in which they held a significant
• FOR BACKGROUND, SEE OUR 2006-2007 Wantagate reports concerning
Henry ‘Conflict-of-Interest’ M. Paulson Jr..
• 'As for Cox, his reckless and intentionally impotent oversight
at the SEC is the basis of the claim against him’ referenced above.
• ‘Freedom Watch will not rest [GOSH! Ed.] until justice is done
and it won’t come from the Obama Administration, bent on deceiving the
US taxpayer that it intends to clean up this corruption, all the while
lining the pockets of its friends at A.I.G. with the Government bailout
money, who gave handsomely to have their President elected’.
Remember, you read all
about this HERE months and several years BEFORE these US operatives
started getting in on the act. It has now, ALL OF A SUDDEN, since G-20,
become ‘acceptable’ to start saying what this service has been
proclaiming since 2006.
Nor is it appropriate for us to jump for joy at
this development. This is because one of the more insidious techniques
used by the Intelligence Power is to ‘take over’ issues, so that they
can then be CONTROLLED. And given what we know about the character
running this operation (which would sit very uncomfortably for him if
published), this is likely to be the intention here.
Another clue that this is not an objective operation, is that the
sum of money being claimed is not that large, given that trillions of
dollars have been systematically looted by these organised criminals
who have hijacked the US Federal Government and the banks.
Nevertheless, at this early stage, it is appropriate to note that
what you read on this website and in our printed publications first, is
now belatedly ‘sort of’ MAINSTREAM.
• Very late in the day, of course, because these ‘professionally
concerned’ operatives didn’t have either permission or the guts to
expose this corruption earlier. Shame on them.