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CATASTROPHIC BANKERS’ RAMP TO CONTINUE UNDER OBAMA
SMALL PROBLEM: THE MARKET AND THE WORLD AREN’T BUYING IT
Sunday 15 February 2009 04:00
UPDATE 25th February: Note from the Editor: Would the party who emailed me last year with outline details of $25,000 that Wanta accepted from him and never repaid, please email the Editor as soon as possible, with 'further and better particulars'? We do have the original email, but it is in another location, and the Editor could usefully apply this information now: cstory@worldreports.org.
See new update for 23rd February: 'EU ELITE FEASTS WHILE THE WORLD CRUMBLES' below...
See new update for 20th February: 'STANFORD TOOK OVER FROM NORIEGA', below this update...
IF THE BLIND LEAD THE BLIND, BOTH SHALL FALL INTO THE DITCH (1)
• UPDATE 19TH FEBRUARY 2009:
AND LO! THEY ARE FALLING INTO THE DITCH 'AS WE SPEAK':
Specifically, on 18th February, the cost of insuring a $10 million US Treasury instrument for a five-year maturity reached $90,000. On 19th February, the cost had risen to $93,000! In a normal market, the cost should not exceed $10,000, at the most.
• SO, the more they write, the more junk the US Treasury creates, the higher the price. It's been doing this more or less constantly since Obama took office, by the way.
This data, publicised by CNBC and derived from CME 'pit' sources, tells you that the market is 100% in agreement with the assessment elaborated upon below. Confidence in US Treasury instruments is collapsing, as a consequence of the fact that not all financial market participants and observers are as mentally deficient as the corrupt technicians who are taking Barack Obama and the United States' financial economy to the cleaners.
What they thought they could get away with is a giga-TARP operation, involving circular financing which only delivers vast mountains of new garbage Treasury debt in the background: and we are talking about TRILLIONS here. We therefore CONFIRM that the disastrous course adopted by the financial sorcerers surrounding President Obama WILL lead this Adminstration, the US dollar and the US and world financial economies into a BRICK WALL, and that the deterioration of which the above-mentioned price is a potent symptom will be RAPID, taking the whole world by surprise.
When this materialises, kindly remember the following, would you? The catastrophe is specifically and EXCLUSIVELY a consequence of the determination of these Fraudulent Finance specialists to CONTINUE with their exotic, illicit financial Ponzi operations, LONG AFTER THE REST OF THE WORLD HAS SEEN RIGHT THROUGH THEIR DUPLICITY. So, fasten your seatbelts: these US idiots made their choice, hoping to cover up their complicity in the Banker's Ramp. Now they will finally discover that by wilfully refusing to 'go straight' with on-the-books financing as agreed ages ago by the Group of Seven, they will reap the whirlwind. And so, unfortunately, will the Rest of Us.
THE BLIND FOOLS HAVE BROUGHT THIS PREDICTED CATASTROPHE UPON THEMSELVES
• UPDATE, 20TH FEBRUARY 2009: STANFORD TOOK OVER FROM NORIEGA:
In extensive coverage of the Stanford scandal today, The Daily Telegraph states: 'As 'Sir' Allen's financial empire unravelled, depositors across the Caribbean and South America besieged banks that he controlled in Antigua, Venezuela, Ecuador, Colombia, Peru and Panama': which HAPPEN of course to be the primary locations of the Bush-CIA drug empire. On making further enquiries, the Editor has just been informed that quote 'Stanford took over from Noriega' unquote.
Stanford's offices in Houston are in the Galleria complex where Carlyle's offices are located.
And WHERE was Stanford 'picked up'? Uh, in Fredericksburg, Virginia, deep inside intelligence communitysville. Who would want to GO THERE when ostensibly on the run from law enforcement?
Only a high-level drug-running Central Intelligence Agency operative in trouble who needed to be debriefed in a hurry and told what steps to take to PROTECT THE AGENCY from exposure, right?
On 1st November 2008, according to Mr Wayne Madsen's service, the Spanish news agency EFE reported that Venezuelan military intelligence operatives raided Stanford International Bank in Caracas and investigated three Stanford Bank employees at the Venezuela branch believed to be US drug-running intelligence agents. The press is also reporting an extremely unfortunate photo of Stanford and Barack Obama 'in happier times'.
So you see, folks (to coin a phrase), it's not simply all about the money, it's ALL ABOUT THE CIA MONEY: THE COLOSSAL DRUG-TRAFFICKING AND FRAUDULENT FINANCE CRIMINAL PONZI NEXUS upon which the power to control the US Government USURPED by the CIA rests.
• The CIA is IN CONTROL, OUT OF CONTROL, and needs to be BROUGHT UNDER CONTROL, which is not about to happen under Leon Panetta, who 'ran the money', didn't he, under Clinton. And this, in turn, is WHY the financial sorcerers in the White House and the Treasury are risking a catastrophic collapse: because they defer NOT to the US President, but rather to the reprobate, arrogant, ruthless Intelligence Power that CONTROLS the President, and which has USURPED the Presidency given its power as the 'State within the State' (operating from the George Bush Center for Terrorism), acquired by financial corruption and its allegiance to the DVD's George Bush Sr..
• All of which brings to mind our letter to the British Ministry of Defence some months ago, in which we asked: WHAT ARE WE DOING IN AFGHANISTAN? And to which, as subsequently reported, the Editor received NO REPLY. The lack of response reflected the fact that the MOD knew that any response would be displayed on our website: so, rather than LIE TO US, they didn't respond at all.
Today, The Daily Telegraph carries an op-ed article ASKING THE SAME QUESTION. The article begins as follows: 'ALTHOUGH IT HAS YET TO COME CLEAN ON THE ISSUE, the Government believes that our commitment in Afghanistan will last for generations. Our Ambassador to Kabul blithely mentioned us being there for "30 years". BUT WHAT ARE WE THERE FOR?'
The author, Michael Burleigh, doesn't say. He thinks we are 'chasing phantoms'. WE SAY:
• NO, WE'RE NOT, SIR. WE'RE CLAIMING AND GRABBING CONTROL OF THE DRUG TRADE. That's why the idiot Brit in Kabul says we'll be there for 30 years. Because that's how long they think it's going to take to ELIMINATE THE OPPOSITION.
• By its cowardly non-response to the Editor's straightforward question (which it can rectify at any time, to 'correct' any 'misapprehensions' we may have), the Ministry of Defence has confirmed by its default, that it is a criminal enforcement organisation.
• Like the Central Intelligence Agency and the US military.
IN OTHER WORDS, the British Government SUPPORTS THE CIA, which means that it is perfectly content that this revolutionary US 'State within the State' controls the US Government, which by extension means that the British Government is a co-conspirator in the entire range of scandals.
So the 'Special Relationship' has decayed to the point at which it serves exclusively the interest of a vast, unfettered criminal enterprise which knows no bounds to its abuse of power. And treads all over the British at every possible opportunity, by the way. Indeed it treats the Brits with disdain.
In any rational environment, that would be cause enough for a comprehensive suspension of these intelligence relations until such time as the Americans get round to cleaning up their act.
• UPDATE 23RD FEBRUARY: EU ELITE FEASTS WHILE THE WORLD CRUMBLES
We are not commenting quite yet on familiar financial issues we have been asked to comment on, because (a) certain information we hold has to be held back due to ongoing geopolitical 'real-time' considerations and (b) because other information is not yet 'hard' enough to be used. So, instead, you may be interested in the following description of filthy EU pigs with their stinking snouts in the feeding trough that appeared in an article in Murdoch's Sunday Times, even, on 22nd February:
'The past few months have been an interesting time to be working in Brussels'.
'Outside, in the real world, reputable banks crumbled to dust, shares went into a nosedive, big companies became close to worthless, hundreds of thousands lost their jobs and millions feared the worst. Inside the Eurobubble, you'd hardly have known. The elite continued to go to champagne
receptions in the evenings before eating in highly-rated restaurants at taxpayers' expense'.
'They continued to flit from city to city to attend meetings; continued to fly around the world on fact-finding missions; and continued to think up ever more rules and regulations to help organise the
lives of the European Union's 500 million citizens'.
Our only further comment would be that had the Editor written this, the language would have been, as the erstwhile Carlyle employee John Major used to say, 'not inconsiderably' fruitier.
‘STRUCTURED PRODUCTS’: TOXIC INVENTION OF A MASSIVE BANKERS’ RAMP
REVALIDATING AND FALSELY REVALUING WORTHLESS ASSETS
ROOT CAUSE OF THE GLOBAL CRISIS: THE CIA FUNDS ITSELF BY FRAUD
RECENT DEVELOPMENTS: THE DUBAI THEFT • GREENSPAN’S INDICTMENT
PUFFING UP FLAWED POLICIES GUARANTEED TO FAIL
THE SOLUTION
WHY THE SOLUTION IS BEING BLOCKED, AND WHO IS BLOCKING IT
FRIGHTENED HEDGE FUND OPERATIVES MEET AT GOLDMAN SACHS
COALITION OF PARTIES BLOCKING THE REFUNDING
ANATOMY OF MBS-CDO-CDS FRAUDULENT FINANCE OPERATIONS
NSA STEALS ICR TEXT PROVING TARP WAS A SCAM TO REFUND CARLYLE, BUSH ET AL.
THE DIAGRAMS TO BE PUBLISHED WITH OUR PAPER
FAT CAT BRITISH BANKERS SO SORRY THEY LOST THEIR OWN MONEY
BARCLAYS BANK’S FALSE BALANCE SHEET
WHY WE WERE TOLD TO ‘COOL IT’ ON CRITICISING BANKERS
A COUPLE OF PERTINENT ‘PERISH THE THOUGHTS!’
SNAPSHOTS OF PONZI CRISIS FALLOUT IN BRITAIN AND EUROPE
EUROPEAN COMMISSION’S DELUSIONS ABOUT ‘ASSET RELIEF’
SWISS RE SCRAPS ITS DERIVATIVES OPERATION COMPLETELY
WORST PROSPECTS FOR BRITAIN SINCE 1931
GOVERNMENTS UNABLE TO HANDLE HUGE INSTITUTIONAL COLLAPSES
MADOFF UPDATES
OUR SUSPICION OF A STITCH-UP IS SUPPORTED BY ANOTHER SOURCE
CRUDE CIA BLACKMAIL THREAT AGAINST MI-6
IN MEMORIAM
REACTIONS TO OUR REVELATION CONCERNING MICHAEL C. COTTRELL, B.A., M.S.
THE LIBELLOUS ATTACK ON MICHAEL C. COTTRELL, B.A., M.S.
THE EDITOR’S INTERIM STATEMENT
MICHAEL C. COTTRELL’S SWORN AFFIDAVIT IN RESPONSE TO THE ATTACK
• Attack on the Editor by Heneghan following this posting:
This operative has now dispensed libel in the Editor's direction, a somewhat foolish move as it is plainly now open to the Editor to take action against him for libel in the English Court. Readers can of course judge for themselves whether an operative who loses no opportunity to excoriate Mrs Clinton yet at the same time contributes to the Hillary Clinton for President political campaign, is someone in whom trust can be placed when assessing the veracity of his so-called 'intelligence'. And by the way, the Editor is not an intelligence 'asset': 'liability' would clearly be more accurate!
We have no information to suggest that this reckless operative has seen fit to retract his earlier libels against Michael C. Cottrell, B.A., M.S., and Colonel Dana Wilcox, and likewise no overtures have been forthcoming from this fellow to retract his libels and fabrications against the Editor of this service. Presumably he assumes that he is somehow protected from the consequences of his rash behaviour. According to what we hear, we strongly doubt that this can be the case. Since we have been 'asked to comment' on Heneghan's libels against the Editor, here is our comment: they are libels, see? What he has stated concerning the Editor represents febrile fabricated gibberish.
The Editor has been asked to point out that anyone 'out there' who wants to know more about the background to these ignorant rants, and why they are doing them, should get directly in touch with Michael C. Cottrell, B.A., M.S., at his phone number 814-455 9218. Calls will only be accepted from parties who reveal their full identity. Spooks and others who hide their identities because they are scared of being exposed by us, will naturally not be inclined to make such a telephone call.
• Greenspan update: Enquiries by the Editor have CONFIRMED that that Dr Alan Greenspan WAS arrested the week before last, and we know precisely WHO performed the arrest. This being the case, it is reasonable to ask why this crook has been allowed to remain in circulation, delivering a speech, for instance, to dummies attending the Economic Club of New York on 17th February.
The answer appears to be that the 45-page indictment has NOT been withdrawn, that he HAS been arrested, and for all we know he may be walking around with an electronic tag on his right foot.
As these reports inter alia have established, there is one rule for crooks operating at the highest levels, and another for subsidiary crooks, such as the Bush laundryman 'Sir' Allen Stanford, who tried to escape from the United States on the 18th February but was frustrated when the private jet firm hired to fly him to Antigua, refused his dodgy card. The Stanford unravelfest is of course just another dimension of the spasms of violent implosions arising from the exposures of this hive of Fraudulent Finance – which has completely destabilised all governments, central banks and their advisers, who have responded with chaotic, uncoordinated, pointless, knee-jerk 'do-something' policy changes, such as reducing interest rates to close to zero, and thereby effectively deleting the financial sector from the equation: which is why Greenspoon is now 'calling for' nationalisation of all banks. Not only is he himself specifically responsible for the crisis, but central government control of banks = Communism, which places ALL assets in the hands of guess who: THE CROOKS.
Zero rates WORSEN the prospective plight of the banks, as depositors seek actively to improve returns, thus threatening the finances of the banks which were corrupted by the Bush-Greenspan derivatives Ponzi operations. We will be deconstructing some of these flailing responses later.
•INTERNATIONAL CURRENCY REVIEW, Volume 34, #2: This issue is now well advanced in our print works and will be distributed worldwide soon. As indicated previously and below, it contains three flowcharts which show how the fake 'derivatives' sector represents a gigantic BANKERS' RAMP, how the Paulson TARP operation was designed to reliquefy the likes of Carlyle, Carlyle Capital, George Bush Sr. and other familiar perpetrators, and why ALL derivatives 'products' are frauds – equipped, even, with their own esoteric language, the purpose of which is to prevent ordinary mortals from understanding how these interrelated Ponzi Scheme operations function.
But it is historically true that ALL Ponzi schemes implode sooner of later. What makes the present situation unprecedented in the history of fallen humanity is that (a) what is happening was indeed predicted here long before anyone had ever heard of Roubini, and (b) all the Ponzi operations are interlinked. Hence reports of EIGHT more Ponzi collapses pending in Europe, the panic that is now evident everywhere as it has been realised that hardly any institutions managed to avoid being caught up in the corruption, and the chaotic responses of terrified governments and officials who have not understood the central issue: THE DERIVATIVES ARE FAKE AND HENCE WORTHLESS.
International Currency Review may be ordered direct via this website. To order the forthcoming issue alone, please enter a regular order and ALSO send us an email via the CONTACT US tab to state that you specifically require International Currency Review Volume 34, #2 only. We have to charge a premium for individual issues, as we sell only serials in the normal course of business.
On this occasion, we are charging $300 for this issue, incorporating a 50% DONATION mark-up.
All such orders, as with all donations made to assist us with the financing of this research and our necessary exposures, are appreciated and acknowledged by the Editor.
• MADOFF 'VICTIMS' LIST: Two reports were posted on 6th February 2009 containing the entire list of customers of Bernard L. Madoff Securities, Inc.. Because the list is so huge, we divided it into two segments: Clients A-N; and clients O-Z, plus a Miscellaneous Section. See: Archive. Our list is the easiest to load and clearest of the lists that have been reproduced privately on the Internet.
• 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 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 brave contemporary Russian eyewitness Sergei Melgounov, another Edward Harle Limited book available direct from this website.
By Christopher 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 all emails which OMIT any element of the requested coordinates. We are not prepared to deal with anonymous spooks and other cowards who are too scared to provide their coordinates, for identification.
• The CONTACT US facility is found in the red box throughout this combined website.
• BOOKS: Edward Harle Limited has so far published FIVE intelligence titles: The Perestroika Deception, by Anatoliy Golitsyn; Red Cocaine, by Dr Joseph D. Douglass, Jr.; The European Union Collective, by Christopher Story; The New Underworld Order, by Christopher Story; and The Red Terror in Russia, by Sergei Melgounov. All titles are permanently in stock. We sell books DIRECT.
• Please Make a Donation to help finance Christopher Story's ongoing global financial corruption investigations, which have turned the whole world upside down and have exposed the corruption which was intended to enable the geocriminalist syndicate to seize the wealth of the entire world. These people have finally been more or less completely stopped in their tracks as a consequence of these exposures. Your assistance will be sincerely appreciated and will make a real difference, hastening the OVERDUE resolution of the worst financial corruption and linked financial fallout in world history. The Editor's $35,000 Wanta bail-out money was not repaid and so has been stolen. It will be collected in due course and the thief will be appropriately dealt with, having so far taken no steps at all to repay the Editor's loan funds, which should have been remitted on 11th June 2007.
• See the second white panel for details of our latest distributed intelligence publications.
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NEW REPORT STARTS HERE:
INTRODUCTION
We can now complete the metaphor that we held in suspense following the American Presidential Election. After hovering in mid-air trying to decide whether to fall headlong into the fire or not, the CIA-controlled US Federal Government under President Obama has fallen face-first into the (Ring of) Fire, and is in the process of being consumed in the flames.
The flames are fanned by a lethally explosive incendiary device called a Banker’s Ramp.
Instead of accepting that the products of the Bankers’ Ramp – so-called derivative ‘Structured Products’ – are without instrinsic value, the fools and co-conspirators in the US Treasury and at the Federal Reserve under Bernanke thought they could con the world, as Mr Paulson tried to do, into believing that these worthless fraudulent assets could be repackaged with an insurance wrap, and thereby converted from trash status with no recourse to the underlying flow of real cash-cash, into value-laden assets of tangible value. Which is impossible. Natch, this latest marketing ploy failed even as it was being tentatively launched.
For unsurprisingly, Treasury Secretary Geithner’s revamped version of the duplicitous H. Paulson TARP scheme, the purpose of which was to refinance Carlyle, Carlyle Capital, George H. W. Bush Sr. and other notorious Fraudulent Finance parties [see below], was given an immediate thumbs-down by the financial markets on 10th February, even as Mr Geithner was speaking. Specifically, the S & P 500 closed down 4.9%, while its financial sub-index fell on the day by 11%.
The widespread decline wiped out most of the preceding week’s strong stock market gains, with JPMorganChase and Wells Fargo shares losing 9.8% and 14.2% respectively, while Bank of America and Citigroup stocks dropped by 19.3% and 15.2%.
Now this Geithner fellow is the son of Peter F. Geithner, the Director of the Asia Program at the Ford Foundation in New York. Mr Geither’s dad oversaw the Ford Foundation’s micro-finance operations in Indonesia which were being developed by Ann Dunham-Soetoro, the mother of President Barack Obama. Timothy Geithner’s maternal grandfather, whose name was Charles F. Moore, was an adviser to President Eisenhower, and was also a Vice President of Ford Motor Company. Timothy Geithner spent most of his childhood living outside the United States, first graduating from the International School in Bangkok. He also obtained a degree from Dartmouth College in Government and Asian studies, and his MA from Johns Hopkins University was in international economics.
Yet notwithstanding Geithner’s superb educational background and qualifications, the much-heralded Geithner statement, as predicted, was a complete flop. Mr Geithner had evidently not received sufficient education to be able to discern that what he was intending to propose would collapse like the remainder of a child’s balloon after it has been popped; and nor, it appears, was he in any way disposed to read the trailer for his expected flop that we published on this website on 8th February, ahead of his presentation.
According to market sources, the primary cause of the resulting uncertainty was, as one voice put it, that ‘the question of how to value banks’ toxic assets remains unanswered’.
Which was a petty silly complaint, given the fact of the matter, known to all market participants who aren’t high on speed: THEY CAN’T.
The reason that the banks’ derivatives assets haven’t been valued and cannot be valued is that THEY HAVE NO VALUE. They are figments of financial marketing sorcerers' imaginations.
The very word 'derivative' itself contains the brazen lie that the subsequent 'Structured Products' are DERIVED from the original transaction, whereas in reality the cashflow from the original deal does not 'travel', and the subsequent parties have NO RECOURSE to the hard cashflow from the original transaction, so that they are handling phantom trades divorced from the original contract.
‘STRUCTURED PRODUCTS’: TOXIC INVENTION OF A MASSIVE BANKERS’ RAMP
This reality, which has been borne in on even the dumbest dumkopf since our exposures, will be spelled out in the forthcoming issue of International Currency Review with the benefit of simple flow-charts showing how derivatives ‘assets’ are created and are fraudulently ‘marketed’ without recourse to the sole source of real money – the payments to the Mortgage Bank of the mortgagor, or the payments of the credit card holder to the card issuer. All subsequent derivative ‘Structured Products’ are fraudulent Ponzi-model scams, because they have no value given that none of the subsequent derivatives parties have recourse to the original source of funds [see below].
That derivative ‘Structured Products’ are symptomatic of a massive Bankers’ Ramp which has loaded European institutions with perhaps as much as $30 trillion of dud assets, is implied not only by the facts of the matter (explained in greater detail below), but also by the rather pertinent fact that traders on the Chicago Mercantile Exchange tell us from the pits that they regard derivatives products as completely worthless, and will not be interested in exotic new Treasury instruments ('Geithners') designed to turn sawdust into gold.
Likewise, as previously reported, the regional US Federal Reserve Banks consider derivative products to be without intrinsic value – a stance that places them at odds with Geithner’s former employer, the Federal Reserve Bank of New York, and the Federal Reserve Board under the co-conspirator Dr Ben Bernanke, both of which institutions specialise in Fraudulent Finance.
No-one, either at home or abroad, in the G-7 or the G-20, is going to be interested in any magic formula developed by the US Treasury to persuade investors that derivatives-based repackaged Ponzi-model ‘Geithners’ marketed with a US official guarantee and US Treasury imprimatur are a sound investment. It won’t fly.
For given the worldwide awakening to the truth about this Fraudulent Ponzi-model finance, the likelihood of foreigners rushing to purchase degraded US Treasury ‘Geithners’ masquerading as of intrinsic worth when the reality is that they consist of recycled toxic waste, has shrunk to nearly zero – not least given that Mr Geithner has shown himself to be even less proficient at pulling the wool over the markets’ eyes than the serial fraudster Henry M. Paulson was in his notorious day.
REVALIDATING AND FALSELY REVALUING WORTHLESS ASSETS
No, what the US Administration – now completely under the control of the Bush-Clinton criminal finance continuum – was crassly intending to do, was to revalidate the Bankers’ Ramp as though there has been no discontinuity – an extraordinarily stupid and blind course to adopt.
For the Fraudulent Finance engineers inside the Central Intelligence Agency, the Treasury and the Obama White House were hoping to ignore the much greater overall sophistication of sensitised observers since these exposures started in 2006, and to deny all that has happened during this distressing period – the blatant official corruption, the duplicity and diversionary operations, the wall-to-wall disinformation and propaganda, the endless lies and spiels about ‘filling in the holes’ when what was meant was that pyramid-selling participants were being paid off with ‘new money’ derived from other victims of the scams, the suicides, the false reports of imminent settlement recycled every week out of the gutter – and to pull a new Fraudulent Rabbit out of the Treasury’s box of magic tricks, as the US Treasury has done so often before.
But this time, the Magic Rabbit disappeared before it was even out of the hat. It was scared away by the glaring light of global scepticism and the absence of the smoke and mirrors cover to which it is accustomed. For the age of smoke and mirrors is over.
No longer can the US Treasury convince anyone in the world that has the answer to the mess for which it is responsible, on behalf of the controlling Intelligence Power (see previous report and below). And one reason that the US Treasury has lost all credibility – apart from the fact that, under Paulson, who systematically trashed the Full Faith and Credit of the United States, it became known as the Lie Factory – is that it is deliberately, under heavy pressure from the Bush Crime Family, the Clintons and associates, the Chicago FBI, and the CIA, choosing the WRONG PATH, despite the fact that it knows perfectly well what the CORRECT COURSE OF ACTION SHOULD BE.
Yes, the US Treasury knows what it SHOULD DO, but is obtusely continuing with the Bush-Paulson policy of Fraudulent Finance instead of adopting the SINGLE COURSE OF ACTION that would soon guarantee an end to the crisis. Given the extreme gravity of the situation, this represents nothing less than wilful treason against the United States and its people, and a perverse intent to pursue the worst possible course which, if not reversed, will bankrupt the whole world.
ROOT CAUSE OF THE GLOBAL CRISIS: THE CIA FUNDS ITSELF BY FRAUD
It would be comforting, perhaps, to believe that US Treasury officials are just incompetent. But the record shows that no, they seem to be malevolent: they are wilfully impeding and standing in the way of resolution of all outstanding problems over time, by obtusely insisting upon an open-ended continuation of deficit-financing operations to sustain off-balance sheet Fraudulent Ponzi-model Finance, so that the US criminal élite’s cronies can continue to generate false, unreported and so untaxed profits from their unproductive and illicit speculative activity and can continue hiding the proceeds untaxed in offshore bank accounts. And the primary reason for this madness is the factor we again identified in the preceding report:
• The Treasury’s stance is governed by the fact that it defers to the Intelligence Power which controls the US Federal Government, selects its personnel, and has usurped the power of the Executive Branch. As we have frequently pointed out, the CIA is in control, out of control and needs to be brought under control.
And guess what: they don’t like us reminding you of this fact.
• Because when we do so, we are in fact pinpointing the core of the problem facing the United States and the WHOLE WORLD, which is that the Central Intelligence Agency (proxy for the vast, corrupted US intelligence community and its drug-running operations) is a self-financing ‘State within the State’ that controls the Executive, Legislative and Judicial Branches of Government – not the other way round. The CIA is supposed to be the clandestine arm of the White House.
But thanks to its proven ability to penetrate all other branches of Government and its structures, and to finance its operations on a gargantuan scale using drug-trafficking proceeds and Ponzi schemes of ever increasing sophistication, it has usurped the US Government itself.
For it was the intelligence community that developed these Fraudulent Finance schemes in the first place. Who do you suppose provided traders with the special satellite-linked ‘grey screen’ trading equipment enabling Agency operatives based in the boonies to conduct secret Fraudulent Finance trading operations within the closed financial system that is at the root of this crisis?
The equipment is provided by the Intelligence Power. The Editor knows of one family where the successive husbands operated this equipment clandestinely without even explaining what they were doing to their family members. And this secret trading, designed to increase the illicit, hidden takings of the Intelligence Power through Fraudulent Finance, goes on all over the United States.
The Intelligence Power finances itself via Fraudulent Finance operations and is jealous of its total independence from Congress and of its power to control the Government. Key figures throughout the Administration are either intelligence operatives or puppets of the CIA.
Therefore, the Administration defers to the Intelligence Power, instead of the CIA operating from a position of subordination to the Executive Branch.
• That is the nub of the crisis facing the whole world.
It is the CIA et al. that is blocking resolution of this crisis, by ensuring that the Treasury seeks to continue the Fraudulent Finance activity, which is supposed to be funded by a vast increase (so it supposes) in official debt, with no prospect of any of it ever being amortised.
This is of course a recipe for disaster, collapse and a wheelbarrow future: and the culprit is the CIA.
It is the corrupt US Intelligence Power that pulls all the strings and is insisting upon the Treasury retaining control over ‘recovery financing’, despite the reality that the Treasury and the Federal Reserve can never achieve the objective that the CIA insists upon, because no-one in their right mind is going to buy the repackaged Treasury trash for long, if at all.
Therefore, the US and global crisis boils down to the very issue identified a long time ago by this service: the Central Intelligence Agency is jealous of its hegemony which is financed by Fraudulent Finance and fears that when its Ponzi operations cease, it will LOSE its hegemony status and will cease to be in any position to control the Government, especially the Executive Branch.
Given moreover that the Central Intelligence Agency is a criminal enterprise directed de facto by the Bush Crime Family with its Clinton add-ons (2) via the George Bush Center for Terrorism (oops, Intelligence), it may well view the threat to its hegemony by the ongoing and irreversible collapse of the derivatives fraud as a pretext for taking matters even further into its own hands, by which we mean perpetrating some atrocity or other to provide a pretext for drastic domestic repression. This may satisfy its power lust but will not, of course, solve its financial problems insofar as the collapse of the derivatives sector will leave it dependent solely on its drug-trafficking proceeds.
In this connection we need to reiterate that anonymous, unprovenanced reports by a fictitious source calling itself Sorcha Faal and purporting to be derived from the Kremlin, is actually a diversionary disinformation operation perpetrated by an Irishman, S. L. O’Huallachain and by Commander J. Forrest Sharpe, of Light in the Darkness Publications, Vienna, VA, located, as we recently pointed out, deep in US intelligence communitysville, according to our sources.
Sharpe is said to be ‘active duty submarine service fleet’, implying an Office of Naval Intelligence (ONI) link here – ONI being one of the most ruthless of all the arms of the CIA sub-Octopus, as well as ‘incidentally’ being where Admiral Blair, the new Director of National Intelligence (DNI), comes from: which probably tells you all you need to know about the agenda of such reports.
As previously noted, they begin with the phrase ‘Rumours circulating in the Kremlin today’, a tell-tale giveaway, as the Editor’s long service as Editor of Soviet Analyst entitles him to state without fear of contradiction that the Kremlin doesn’t DO rumours.
No, this is just another outlet for the destructive US domestic intelligence war and for gratuitous scaremongering, agitation and propaganda spewed out by the scared ‘State within the State’ which correctly perceives that it is in severe danger of being cut down to size as a consequence of the exposure and implosion of its Fraudulent Finance operations which sustain its usurped status as the power that controls the Federal Government, whereas it is supposed to be the subordinate clandestine arm of the Executive Branch.
RECENT DEVELOPMENTS: THE DUBAI THEFT • GREENSPAN’S INDICTMENT
With reference to the massive sum of money that was diverted to Dubai on Friday 6th February, threatening the likelihood at the time that Citibank might have been unable to open its doors on Monday 9th February, the funds were retrieved over that weekend so that, in the event, Citibank did not collapse and was able to open for business.
As we reported, that event precipitated the cancellation of the State Visit to Dubai and Abu Dhabi by The Queen and the Duke of Edinburgh previously planned for late March – an analysis that we were subsequently told was ‘absolutely accurate’.
Concerning the cuffing of the arch-criminal finance specialist Dr Alan Greenspan, there are now at least four versions concerning this operative’s arrest: (a) He was arrested on or about Monday 2nd February; (b) he was cuffed on Friday 6th February, as we reported; (c) he was cuffed on Thursday 5th February 2009, which we are now inclined to believe would have been more accurate than (b), because we also now think that the funds were diverted to Dubai on Thursday the 5th, or at least overnight 5th/6th February; and now (d) a warrant has been issued for Greenspan’s arrest, which (as of the morning of 12th February) remained pending.
On 12th February we learned that a 45-page indictment has been prepared against Greenspan, and this information was confirmed by a separate very reliable source.
In addition, a batch of officials at the Federal Reserve who thought they were TSTBA (‘Too Senior to Be Arrested’) were reported to us on 12th February to have been arrested in the context of their continuing sabotage of the Settlements. And on Wednesday 11th February, 18 examinations of the biggest US banks were initiated, with a team of some 100 bank examiners descending like locusts on Citibank, JPMorganChase, Bank of America and other US criminal financial enterprises looking inter alia for derivatives exposures. In this connection we have learned that there exists a circle of very high-level and influential bankers and traders whose names are not currently in the public eye, who have been systematically blocking the Settlements, while at the same time continuing their headlong derivatives Ponzi trading operations.
As for the meltdown inside the Securities and Exchange Commission (SEC), accused by Harry Markopolos before the House Financial Services Subcommittee of failing for many years to take necessary measures against Bush-Ponzi fraudster Bernard L. Madoff, the agency’s previously referenced leading enforcement officer, Linda Thomsen, was reported be resigning ‘to pursue opportunities in the private sector’. Obviously, she decided that the heat in the kitchen was excessive for her fragile constitution.
We have been further advised that certain other very well-known characters on the stage are targeted for arrest and indictment. These developments reflect the fact, stressed to us by reliable sources, that there is now a consensus that these arrogant financial sector Financial Terrorists (which is what they are) are not above the law.
Let us hope that this time round, Law Enforcement makes the arrests in front of the TV and press cameras, as we have advised in the past: that would be the single most effective step that could be taken to bring this crisis to a head so that the unavoidable, sabotaged shakeout is not fudged.
PUFFING UP FLAWED POLICIES GUARANTEED TO FAIL
Against this incredible background, the Secretary of the United States Treasury stood up before the whole world on 10th February 2009 and announced that he intends to perpetuate a gigantic fraud! His ill-considered plan was dead in the water the moment it was announced.
As a consequence, the US Treasury and the Federal Reserve have made themselves the laughing stock among those elements of the financial intelligentsia and of key official structures around the world who know precisely what should be done, and have watched with renewed astonishment at the endless capacity for these US financial sorcerers to imagine that they can continue lying and deceiving the markets, the investing public, the American people and the Rest of the World.
As for President Obama’s ‘stimulus bill’, it represents a big band-aid which would be better applied to a bandicoot, because of course it simply adds further to the debt in the background and fails to address the central issue, namely that CASH REVENUE has to materialise in order for the banks to be refloated ON THE BOOKS.
The only possible justification for this rash initiative, which narrowly passed the Senate on 13th February, would be as a short-term stop-gap measure pending the REVENUE cashflows triggered by the G-7-Approved Refunding Programme – which is what President Obama appears to have had in mind, and which his own personnel are obtusely blocking.
The banks CANNOT be refloated via the revalidation and revaluing of worthless junk through the issuance of more and more ‘background Treasury debt’ on the scale required – not least because no insurance wrapround that the Treasury and the Federal Reserve might devise can compensate for the fact that the markets have seen through the Ponzi scams and are not proposing to gobble up any US Treasury repackaged trash ‘assets’ with falsified ‘values’ anytime soon. The Treasury’s purpose all along, as under Paulson, has been to perpetuate opportunities for Fraudulent Finance so that the off-balance sheet proceeds of these Ponzi frauds can be stashed untaxed in offshore bank accounts by the self-appointed privileged ‘élite’ serving the selfish and treasonous interests of the terrified US Intelligence Power.
In fairness, it should also be stressed that the lethal derivatives Ponzi trading carousel is being sustained by the ‘powerful’ circle of top traders and bankers alluded to above, upon whom the Treasury is said to rely when it needs ‘assistance’, who consider themselves literally to be above the law, immune from arrest and prosecution, and who function inside what they consider to be a ‘protective zone’ of privilege within which ‘legitimised’ Fraudulent Finance can be practised with impunity. These people are about to discover that, contrary to that complacent assumption, the game has changed as a discontinuity has taken place which they have chosen not to recognise.
THE SOLUTION
The universal solution to the global systemic financial corruption crisis has been on the table for several years, and was specifically re-approved by the Group of Seven Financial Powers at their summit meetings in 2007 and 2008. The adjective ‘universal’ is applicable because implementation of the agreed-upon solution will, over quite a short space of time, refloat the banks by generating accruals on-the-books, revalidate the US dollar and the US dollar financial system in the process, revitalise the world trading system as a consequence, and shower the US Treasury with ongoing windfall tax accruals which will transform its finances and reverse the centuries-long one-way deficit-financing and debt accumulation route to financial collapse.
Banks will be refloated on balance-sheet very quickly because accruals arising from transparent transactions with the appropriate capital markets instruments as prescribed by the G-7 will cascade into the banks in the form of deposits, transforming the banks’ balance sheets in the process.
This solution, like all truthful and straightforward means of resolving problems, is the essence of simplicity. By contrast, the covert, surreptitious, off-balance sheet, untaxed, secretive, fraudulent derivatives ‘Structured Products’ operations based on worthless assets generating fake yields, are enveloped in a fog of extreme complexity, as will be revealed in somewhat excruciating detail in the forthcoming issue of International Currency Review [Volume 34, #2].
The universal solution to the global systemic financial corruption crisis consists of the following straightforward and wholly transparent response:
• The ongoing conduct of fully taxed on-balance sheet capital markets instrument transactions with selected institutions in the PRIVATE SECTOR (therefore wholly independently of the DEBT-BUILDING public sector), as approved by the Group of Seven Financial Powers in 2007 and 2008, using LOAN funds provided pro bono publico for this purpose at her sole discretion primarily by the British Head of State, the total value of which is $6.2 trillion.
[These funds were placed into 'lockdown' on 12th September 2008, after it had transpired that instead of being deployed for the purpose intended by the lender(s), the funds had been illegally subjected to exploitation to finance the Fraudulent Finance Ponzi-model carousel.
After these funds, plus an additional $7.8 trillion of monies owned by the Chinese parties, went into ‘lockdown’, flows of funds needed to finance the corrupt illicit trades – with the exception of the drug money flows sustaining interbank operations as identified by the Executive Director of the Vienna-based United Nations Office on Drugs and Crime (UNODC), Sr. Antonio Maria Costa, which were referenced in our report dated 8th February 2009, dried up – triggering mass redemptions, including an estimated $7.0 billion of redemptions by clients of the Bush-linked Ponzi scheme manipulator, Bernard L. Madoff, as described in earlier reports].
• Such ON-BALANCE SHEET PRIVATE SECTOR capital markets transactions will generate REVENUE which will be TAXED, yielding ongoing windfall tax accruals to the American Treasury – which, by definition, will reverse the century-old decadent US one-way deficit-financing orgy accumulating vast mountains of official debt in the background which can never be repaid, accompanied by the degradation of Treasury securities and the US dollar itself to trash status.
• Under this wholly transparent Group of Seven-Approved Capital Markets Refunding Programme, Michael C. Cottrell, B.A., M.S. is instructed to conduct the on-balance sheet transactions using the appropriate instruments through his firm Pennsylvania Investments, Inc., in accordance with the lenders’ instructions.
• In our report dated 8th February 2009, we revealed the foregoing information for the first time, in the face of the intransigent intention of the American Treasury to continue with the Ponzi-model Fraudulent Finance operations to which it and its associates, especially the relevant hedge fund operatives, have become accustomed.
The Treasury’s approach is wrong-headed and perverse, not least because it will simply pile debt upon bad debt upon very bad debt, while purveying for public consumption a FALSE PROSPECTUS based upon the lie that worthless derivatives ‘Structured Product’ ‘assets’ have value, which is not the case. In other words, the US Treasury’s sterile proposals on behalf of the hedge funds, ‘private equity’ ‘players’ and banks ‘working for’ George Bush Sr., which were dead in the water on delivery anyway, would falsely represent that trash ‘assets’ contain value, a gross deception and fraud.
• In our report dated 8th February, we further recommended that the G-7-Approved Refunding Programme outlined above should proceed anyway, as has been specifically instructed ‘per the request/affidavit dated 29th December 2008’, but through London rather than New York.
• By definition, the GOOD, TRANSPARENT, TAXED REVENUE dollars accruing from the approved Capital Markets transactions under the G-7-Approved $ Refunding Programme will very definitely displace the BAD MONEY FALSELY GENERATED by the complex, Fraudulent Finance Ponzi-model operations that the US Treasury seeks to perpetuate, for the reasons explained below.
WHY THE SOLUTION IS BEING BLOCKED, AND WHO IS BLOCKING IT
Bear in mind that the G-7-Approved Refunding Plan is, as we constantly reiterate, APPROVED by the Group of Seven Financial Powers, which are fighting for their economic survival in the face of the recalcitrance of the American criminal financiers who are holding the whole world to ransom.
As noted above, the SOLUTION has been on the global table for several years and if it had been implemented in 2006/2007, instead of being hijacked by the corrupt Paulson Treasury so that funds could be stolen and the later LOAN monies belonging to the lender(s) abused and exploited, the whole world would not now be experiencing the ‘train wreck’ that we predicted on this website on 2nd September 2006, in December 2006, and in reports published here and in our journal in June and July 2007. We predicted the ‘train wreck’ accurately because we saw then that the corrupt US Treasury had no intention of implementing the G-7-Approved Refunding Programme and that the constant barrage of ‘we’ll pay you tomorrow’ rhetoric, with its innumerable variants, represented a cynical CIA counterintelligence propaganda offensive designed to enable the organised criminal cadres inside the US official structures and their allies to continue trading derivatives, to sustain the bubble of Fraudulent Finance, and to keep the army of outraged protesters at bay indefinitely.
Quite simply, the cloth-ears at the US Treasury preferred to continue down their yellow brick road, enriching themselves and their co-conspirators in the process, under the protection of the corrupt Chicago component of the FBI and the Bush-Clinton organised crime operations – to the general satisfaction of the expanded domestic and international élite that has been so corrupted by this Fraudulent Finance ever since George H. W. Bush Sr., stole the money from Continental Illinois Trust Company in the 1980s.
FRIGHTENED HEDGE FUND OPERATIVES MEET AT GOLDMAN SACHS
Immediately following the damp-squib Geithner presentation of the US Treasury’s immediately discredited plan for open-ended Ponzi-style finance stretching out to the end of the solar system, about 20 alarmed US hedge and ‘private equity’ Ponzi-money fund operatives, meeting under the auspices of the so-called ‘Goldman Sachs Roundtable’, gathered in emergency session to thrash out their concerns that, from their perspective, things were now falling apart, since Mr Geithner’s proposals, on which some had pinned their hopes, had gone down like a wayward lead balloon. Those attending included representatives of KKR, Fortress Investment Group [FIG], Bain Capital, Perry Capital, Capital Research, Putnam, and Citadel.
People who attended told CNBC that they received an urgent invitation to go to the meeting after Geithner’s speech. Goldman Sachs, which initially denied that the meeting ever took place, later reversed its position and confirmed that the meeting, hosted by John Winkelreid and Gary Cohn, was planned well in advance. How’s that for standing on your head without anyone noticing? Some of those who attended said that they decided to attend because of the Geithner speech. According to the CNBC report, aired by Charlie Gasparino [www.cnbc.com/id/29163525]:
‘What the group concluded was that the longer the ‘plan’ takes to produce, the more difficult the situation becomes. That’s because reviving the securitization market is the key toward reviving the economy and it’s a vicious circle [sic]. The longer it takes to revive securitization, the worse the economy becomes and the securitized products held by the banks lose more value’.
The foregoing CNBC statement contains egregious falsehoods that are self-evident but which nevertheless need to be spelt out given that CNBC also appears to be inhabited by cloth-eared economic ignoramuses:
• Revival of the real economy does NOT depend upon so-called revival of the ‘securitisation market’ consisting of worthless assets. First, there can be no such ‘revival’ now that the absolute worthlessness of the ‘securitised assets’ has been exposed, taken on board across the world, and ridiculed by traders in the Chicago pits – as well as by institutional investors and others who have had their corporate and fingers burned in the financial holocaust that has already taken place.
Further, as previously reported, the regional Federal Reserve Banks do not agree with the corrupt Federal Reserve Board under Dr Ben Bernanke and his Ponzi scheme predecessor, the frequently-braceleted Dr Alan Greenspan [see below], and the Federal Reserve Bank of New York (FRBNY), that derivatives assets have any value. They have been exposed as trash, and that’s that.
• The ‘justification’ for derivatives transactions is the false argument that securitisation ‘spreads risk’. This only happens, however, in the sense that the Mortgage banks receive double or treble payments per mortgage (even quadruple payments in certain circumstances). The later remittances are discounted, but they all add up. But the purchasers of the securitised ‘Structured Products’ by definition acquire extreme risk for their money, because no party beyond the Mortgage bank has recourse to the only source of ‘real money’, which is the income stream from the borrower.
• The US economy is not ‘becoming worse’ BECAUSE ‘securitisation cannot be revived’, but rather because the sole SOLUTION to refinancing the banks, the US dollar and the world trading system has been and continues to be BLOCKED by the parties identified in this segment, including the foregoing attendees as the so-called Goldman Sachs Roundtable.
• The ‘securitised assets’ held by the banks cannot lose ‘more’ value, as they have already lost 100% of their value and it is impossible, therefore, for these non-assets to be devalued any further. As indicated below, Swiss Re, the second largest reinsurer in the world, has just scrapped its own investment bank and in the process has written down its derivatives 'assets' to their correct value:
• ZERO.
The CNBC pronouncement illustrates a stratum of gross ignorance and fatuous stupidity on the part of the CNBC correspondent, equalled only by the attitude of a BBC economics correspondent who belaboured the false point on 11th February that ‘no banker, no financial journalist, nobody if they cross their heart, could say that they foresaw this’.
Not if they weren’t reading the reports on this website, right.
And by the way, this standard technique, favoured by those who cannot see ahead, of tarring all analysts with the brush of their own blindness, ignorance and forecasting ineptitude, while familiar to this Editor who has observed this all his forecasting life, is a low trick routinely played by the blind leading the blind. Because they have fallen in the ditch, they assume that no-one could have led them away from it. It makes the mess they're in less uncomfortable.
COALITION OF PARTIES BLOCKING THE REFUNDING
Who, then, is BLOCKING the Group of Seven-Approved Refunding Programme?
Answer: the following sinister coalition:
• The primary source of opposition to the G-7-Approved Refunding programme is the Intelligence Power, a.k.a. the Central Intelligence Agency and its extensions [see below], which finances its operations with all the funny money that the Ponzi schemes that it developed specifically for that purpose, generate. The Intelligence Power in the United States controls the Government, not the other way round. As we have frequently stated, the Intelligence Power is in control, out of control and needs to be brought under control.
It is significant that no matter how many times we have reiterated this glaringly obvious truth, not a single individual with whom we remain in contact, including of course those with a CIA background, has EVER picked this point up and given it the slightest support. The reason for this may be that all these people, without exception, are perfectly content with the status quo, which is as follows:
Given its FINANCIAL INDEPENDENCE FROM CONGRESS, the Intelligence Power has USURPED THE EXECUTIVE BRANCH of the Federal Government. The CIA is supposed to be the clandestine arm of the White House, instead of which, with the National Security Council (NSC), it CONTROLS the White House, and ensures that its own personnel or agents are always positioned in the most sensitive nodes of the structures, including the top slots.
• This is not democracy: it is corrupt, anti-democratic, abusive rule by a ‘State within the State’.
This overpowerful and ruthlessly amoral American ‘State within the State’ is financed by means of the Fraudulent Finance operations exposed in these reports. The ‘State within the State’, this controlling Intelligence Power, is unwilling to give up its hegemony over the Executive Branch (as well as de facto the other branches of the Federal Government). It is therefore purposefully and short-sightedly resisting and BLOCKING the implementation of the SOLUTION outlined above.
• Moreover the Intelligence Power is indifferent to the consequent suffering of the American people and the Rest of the World. It is concerned exclusively with the threatened retention of its control hegemony. It imagines that if it just continues this obnoxious resistance, it will ‘win out’ in the end. That is a false presumption.
• On the contrary, the longer the Intelligence Power BLOCKS the SOLUTION, the greater will be the consequent damage and the greater the likelihood that, with the disintegration of the nation, and the entire world economy as a direct outcome of its obtuse behaviour, the arrogant, ruthless and opinionated US Intelligence Power will be destroyed as well.
• But not all CIA/DIA operatives are as completely blind and stupid as painted above (it is possible to be very clever and smart, and stupid and blind at the same time). Some CIA operatives know perfectly well that things must change. They should assert themselves now, for the sake of the Republic and, as The Queen put it succinctly in 2007, ‘for the sake of the whole of humanity’ – although we hold out very little hope of any such development.
• Finally, the CIA is absolutely PETRIFIED of the G-7-Approved Refunding Programme, because it is recognised in ‘circles that matter’ that in fact it MUST be implemented, cannot be side-stepped, and will indeed prevail. But its own personnel place their own wretched interests and that of the amoral Intelligence Power first. These people will have to undergo psychological re-orientation training come the Revolution, if they don’t change their stupid attitude before it’s too late.
Beyond this central factor, the coalition of operatives opposing the G-7-Approved Refunding Programme include the following:
• The US Treasury, under Geithner as under Paulson, which defers to the controlling Intelligence Power that controls the White House (although for public consumption purposes the US Treasury defers to the White House). As is the case within the CIA, not everyone inside the US Treasury is corrupt: on the contrary, it has been the case since these exposures developed, that one or more Treasury Compliance Officers have been threatened with jail sentences under the Patriot Acts for actually doing their jobs properly and resisting the corruption mandated under Henry M. Paulson.
• The Federal Reserve Bank of New York under Mr Geithner before he was translated to the US Treasury. As confirmed by the recent arrests, announced on this website, of Robert Armenta, the senior Federal Reserve Compliance Officer (who was offered a choice between 25 years in jail if he cooperated and 99 years if he chose not to divulge the names of those involved in these scams), and Christopher J. McCurdy, a senior Vice President who was arrested after he had destroyed the crucial banking codes associated with the Settlements, the New York Fed is a nest of corruption. Under Geithner it presided over frauds exposed in our reports, and it is at loggerheads with the regional Federal Reserve Banks who are unanimous, as we have previously reported, that the derivatives ‘assets’ are worthless. The FRBNY works closely with:
• The corrupt Federal Reserve Board under Dr Ben Bernanke, who has continued and elaborated upon the Fraudulent Finance operations exploiting the closed Federal Inter Bank Settlement Fund developed under his corrupt, often-arrested predecessor, Dr Alan Greenspan – the inventor of the ‘never-pay syndrome’ which, with the benefit of hindsight and closer understanding nowadays of the universality of the Ponzi model, was actually a symptom of universal Ponziness.
This ‘never-pay syndrome’, supported by that noisy barrage of duplicitous disinformation promising payment tomorrow, painting false descriptions of arrangements having been made for Trustees to be called into banks and banking codes having been altered, and so forth, elaborated by reports of banks not co-operating, answerbacks not arriving, and any other variation on the theme of why the payments were being blocked that they could think up overnight, turns out actually to have been nothing less than an integral component of Ponzi scheme methodology.
Ponzi scheme methodology operates on the principle that new money has to be found to pay off earlier investors or to pay them handsome returns with no questions asked, until the pyramid selling scheme collapses, when ALL THE MONEY IS STOLEN.
Further members of the coalition resisting the G-7-Approved Refunding Programme also include:
• The hedge fund and ‘private equity’ parties including those who attended the ‘Goldman Sachs Roundtable’ meeting, who are desperately trying to find a way to ‘fix the prices of the securitized bonds’ as Ken Griffen, the founder of Citadel, told CNBC after that meeting – despite the fact that trash ‘assets’ have no value so that any price-fixing would be fraudulent and therefore open to endless litigation in the courts.
• The corrupted banks which continue to promote and develop derivatives trading ‘opportunities’ and scams, as though there had been no discontinuity.
• FACT: Without derivative ‘Structured Products’ trading, there is no way these criminal enterprise banks, scamming hedge fund operatives and so-called ‘private equity’ Ponzi-groups can ever hope to recoup the monies for George Bush Sr. and which they themselves have lost on own account. They cannot believe ‘this has happened to them’, but it has.
• They cannot accept that there has been a decisive discontinuity, but there has.
• The Clintons, the Bush Crime Family and their compromised associates, including the former French President Chirac, and M. Levitte, the former French Ambassador to Washington, who is now President Sarkozy’s closest adviser, and a host of others including the US operatives Jan Morton Heger, Leo Wanta, George Reig, Captain Morris (ONI), Tom Heneghan (see below), and a group of bankers and leading derivatives traders who operate in the shadows and have in the past been so ‘powerful’ that the Treasury would even call upon them for ‘assistance’.
ANATOMY OF MBS-CDO-CDS FRAUDULENT FINANCE OPERATIONS
In our report dated 8th February 2009, we reported that the NSA had interfered with our production computer and had stolen three pages from our imminent analysis by Michael C. Cottrell, B.A., M.S., under the generic heading ‘The Legalisation of Financial Corruption’ in which we analyse in detail the precise steps of the Ponzi finance operations – and in which we demonstrate both that the derivatives have no value, and also that this ‘mystery’ is encased in a fog of jargon so dense that outsiders (such as the CNBC correspondent) never get to to understand what is going on.
The segment stolen from our production computer also contained the chart in which we show that the Paulson TARP operation represented a fraud designed to inject fictitious, fabricated value into worthless ‘Structured Products’ using taxpayers’ money so as to enable the speculators to ‘start over’ – with the top ‘insiders’ such as George Bush Sr., Carlyle and Carlyle Capital and James A. Baker III especially benefiting from the Government bailout operation.
Before we go any further, we need to repeat the sections that were stolen from our production and the introduction, in order to place this back into context:
NSA STEALS ICR TEXT PROVING TARP WAS A SCAM TO REFUND CARLYLE, BUSH ET AL.
On 5th February, the Editor was working with his colleague to finalise pages for the next issue of International Currency Review. This contains an analysis by Michael C. Cottrell, B.A., M.S., with 3 diagrams, entitled 'THE LEGALISATION OF FINANCIAL CORRUPTION', that carefully demonstrates and proves that the Paulson Treasury's TARP operation represented a colossal Ponzi-style fraud designed to refund Carlyle, Carlyle Capital and corrupt 'insiders' starting with George H. W. Bush Sr., James A. Baker III and other highest-level US financiers of terrorism.
All of a sudden, our screen became completely unstable under the impact of electrical pulses which can only have been directed externally. There were two attacks: on the first occasion, the relevant pages were retrieved without loss. About 20 minutes later, however, a further pulse attack resulted in the 'loss' of the concluding pages, associated with the final diagram which shows:
(a) How the Henry M. Paulson Treasury had concocted a devious false prospectus programme to inject false value into fraudulent and worthless derivative 'Structured Products' and:
(b) How this process, thanks to the fact that the Treasury now controlled the FNMA (‘Fannie Mae’) and FHLMC (‘Freddie Mac’) directly, would ensure that the Government bailout money agreed by Congress would refund Carlyle, Carlyle Capital, Bush Sr., James Banker II et al., as stated above.
We therefore publish immediately below the precise text that was stolen by the NSA in the course of this second 'pulse attack'. We were of course able to restore the stolen text, plus the concluding chart showing the scam in graphic form, almost immediately, so nothing was achieved except that the forces concerned obtained a copy of the language we are using.
They therefore knew that we were about to expose the TARP Ponzi scam, although they would have known that anyway since they listen in to all our telephone conversations.
• Reference is made in the text below, to the diagrams, which are not shown here (because this platform does not currently support illustrations).
• But it is necessary to include these diagram references in order to reveal why NSA stole this text by directing electrical pulses at our production computer. This is the text they stole:
HOW THE LEGISLATION ASSISTED THE FINANCIAL FRAUDSTERS:
THE PAULSON TREASURY’S TARP $700 BILLION PLATFORM SCAM
Figure 3 opposite 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 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, and corporations.
US Treasury Secretary Paulson’s TARP plan to obtain unlimited authority over the $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, fraudulent exotic ‘assets’ have no recourse to the original underlying source(s) of ‘real money’ funds.
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 gullible public consumption) to spread the risk of default to as many holders as possible – thus furthering the development of the Credit Default Swap derivatives market.
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 cashflow from the collateral remaining after all the other tranches are satisfied. More sophisticated CMOs have multiple ‘Z’ tranches and a ‘Y’ tranche incorporating a sinking funds schedule. [This passage in the printed version references the earlier discussion, not reproduced here].
Figure 3 illustrates a non-public TARP program, prior to the appointment of Mr. Kashkari, et al. and the Congressional Oversight Panel restrictions.
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 themselves 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 holders, i.e.: the likes of leading Fraudulent Ponzi-Finance specialists such as: AIG, CITIBANK, GOLDMAN SACHS, CARLYLE CAPITAL, CARLYLE GROUP, and others.
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 huge 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 US Taxpayer, the US tax authorities, or anyone else.
CONCLUSION
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 avalanche of toxic ‘Structured Products’ and regaining credit flow within the international banking system. See the flow charts: Figures 1-3 herewith. ENDS.
[Note: This text will appear on pages 32-34 of International Currency Review, Volume 34, #2].
THE DIAGRAMS TO BE PUBLISHED WITH OUR PAPER
As indicated above, the exposure of the ‘Structured Products’ frauds in the forthcoming issue of International Currency review is accompanied by three charts [Figures 1-3]. Each chart carries a very bold notice stating:
‘THERE IS NO RECOURSE TO UNDERLYING CASH FLOW AFTER ‘A’’, where ‘A’ represents here the Mortgage issuing banks which are in receipt of cashflow from the mortgagor (the party taking out the mortgage)
• Description of Figure 1 [Page 25]: MBS-CDO-CDS SCAM FLOWCHART:
The Fraudulent Finance Non-recourse Carousel:
STEPS SHOWN ON THE CHART:
(1) The borrower makes payments to the Mortgage issuing banks.
(2) The crucial Universal Commercial Code [UCC – 1] document is lodged with the local Courthouse Land/Deed Recorder [Land Registry in England]. The Mortgage banks retain control/custody of the UCC-1 document which does not ‘travel’ with the subsequent transactions. T
he Mortgage banks have the continuing benefit (excluding defaults) of the real money cash flow from the borrower/mortgagor.
• The Mortgage banks obtain new money by on-selling the mortgage to investment bank pools or the FNMA or FHLMC [see (3) immediately below]. They have now been paid twice (although they sell the mortgage on at a discount. When they do so, an egregious deception occurs.
Because the Mortgage banks retain control of the crucial underlying document, the UCC-1, and/or the Land/Deed papers, they are actually selling NOTHING at all, UNLESS they are actually engaged in committing ‘visible’ fraud by on-selling ANOTHER TOP COPY OF THE UCC-1 or else the Land/Deed papers. The fraud here may be achieved by the borrower being required, in many instances, to sign THREE TOP COPIES of the relevant documents, without the TRUE reason for this fake ‘requirement’ being spelled out (‘FRAUDULENT CONCEALMENT’). Whether this occurs or not, the following legal hazards arise in this context:
• “ACTUAL FRAUD: Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”.
Sourced from: Steven H. Gifis, ‘Law Dictionary’, Fifth Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.
• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”.
Sourced from: Steven H. Gifis, ‘Law Dictionary’, Fifth Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.
THEFT BY DECEPTION:
• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.
• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.
• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.
Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.
FRAUDULENT CONVEYANCE:
• “FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.
l “Conveyance made with intent to avoid some duty or debt due by or incumbent on person (entity) making transfer…”.
Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Ed
(3) The Mortgage banks sell mortgages either into Investment Bank Pools or into Trust Pools of the Federal National Mortgage Association [FNMA, ‘Fannie Mae’] or the Federal Home Loan Mortgage Corporation [FHLMC, ‘Freddie Mac’] which, since 8th September 2008, lost their Government-Sponsored Enterprise (GSE) status after being taken over wholesale by the Treasury.
• The Mortgage banks are also basically ‘indifferent’ (in a ‘normal’ market environment unlike the prevailing situation) as to whether the borrower ultimately defaults or not. If the borrower defaults, the Mortgage bank is now in the real estate business and acquires the property which it then sells (third payment). On top of this, since the Mortgage bank has retained full control over the UCC-1 document, which does not 'travel up the derivatives chain, it is in a position to on-sell a ‘derived’ mortgage on the basis of that document, generating thereby a FOURTH payment (from the same mortgage), and at the same time ‘starting over’.
(4) The Investment Bank Pools operate an Underwriting Group and a Buying/Selling Syndicate, and undertake ‘securitisation’, packaging or re-packaging of pooled (or collectivised) securities. The FNMA and FHLMC Trust Pools operate an underwriting Trust Pool, a Buying/Selling Syndicate and create ‘Securitisation Pools’ and develop[ Mortgage-Backed Security packaging and Pass-Through Securities – pools of fixed-income securities that are backed by a package of assets. A servicing intermediary collects monthly payments from issuers and, after deducting a fee, remits or passes them through to the holders of the Pass-Through Security.
This device is also known as a ‘Pass-Through Certificate’ or a ‘Pay-Through Security’. The most common type of pass-through is a Mortgage-Backed Certificate, whereby ‘homeowners’’ payments pass from the original lending bank through a Government agency or investment institution to the investors. This is the ONLY exception to the general rule that there is NO RECOURSE to underlying real cash flow after the borrowers’ payments into the Mortgage banks themselves.
(5) The chart shows ten representative US domestic pools which sell the repackaged securities or ‘Structured Products’ to Goldman Sachs, A.I.G., Lehman [defunct], Morgan Stanley, Citibank, JPMorgan Chase, Wachovia, with some pools selling direct to General Electric or foreign banks, such as Coutts. At the lower right corner of the chart is the rubric: ‘From the U.S. institutions the scam is taken international…’.
This references the fact that, for instance, Goldman Sachs will sell the repackaged ‘Structured Products’, however marketed, for instance, to Deutsche Bank, Barclays and the Bank of England, while Lehman [defunct] sells to Natwest, as does Morgan Stanley. Meanwhile the ‘Structured Products’ or securitised pooled ‘assets’ have long since been DECOUPLED FROM the original underlying cash flow of the mortgager borrower(s), so that the only ‘value’ attached to the packages is derived from the NAMES of the institutions marketing them.
As a disillusioned former Goldman Sachs officer informed the Editor recently, the derivatives ‘are worth what someone is prepared to pay for them’.
Now that they have been exposed as intrinsically worthless, the only parties who will pay anything for them are those compartmentalised zombies who have not yet understood that there has been a fundamental discontinuity which cannot be ‘made good’ or denied.
Figure 2 [Page 27] provides a close-up of the right-hand side of Figure 1, showing how a single loan triggering one solitary cash flow of mortgage payments is typically leveraged and intermingled with other such 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.
Figure 3 [page 33] follows the funds paid to the US investment banks for the on-sold ‘Structured Products’ by the foreign institutions (Deutsche Bank, Barclays Bank, Bank of England, Natwest and Coutts, in the illustrations) and by General Motors, Ford Motor Company and General Electric (as illustrated), which invest them with Carlyle, Carlyle Capital and other ‘top’ hedge funds and ‘private equity’ entities such as those whose representatives attended the ‘Goldman Sachs Roundtable’ meeting on 10th February and benefiting insiders such as George Bush Sr. and James A. Baker III*.
A placard on Figure 3 reads: ‘PURPOSE OF TARP OP: TO INJECT VALUE INTO WORTHLESS ‘STRUCTURED PRODUCTS’, AND THEN ‘START OVER’’.
Meanwhile, since ‘Fannie Mae’ and ‘Freddie Mac’ are now controlled directly by the Federal Government (the Treasury), they re-pool and repackage 'fresh' ‘Mortgage-Backed Securities’ (‘Structured Products’), enabling the process to begin again. The chart proclaims at this point;
• START OVER: and the selling into the market ‘starts over’.
So Carlyle, Carlyle Capital and the other hedge funds and ‘private equity’ entities repurchase the newly created Mortgage-Backed Securities (MBSs), CDOs (Collateralised Debt Obligations) and CDSs (Credit Default Swaps) from the market for purchase by the US Treasury under the TARP scheme using (in the case illustrated) the Paulson TARP bailout money for the purpose.
This procedure reliquefies Carlyle, Carlyle Capital and the other hedge funds and ‘private equity’ entities by generating a flow of cash from the Treasury into their accounts.
An explanatory box labelled ‘How the TARP scam to refund worthless toxic ‘Structured Products’ to benefit the above* was supposed to operate. It all went horribly wrong’, positioned at the lower right-hand corner of Figure 3 explains further:
• STEP ONE: Assign [False – Ed.] value to Mortgage-Backed Securities, Collateralised Debt Obligations and Credit Default Swaps and other derivative ‘assets’.
• STEP TWO: Purchase funds: First to Carlyle et al.
• STEP THREE: Carlyle et al.: Repurchase derivatives from the market and onsell them to Treasury under the TARP program.
Postscript: The TARP scheme is thus SPECIFICALLY shown, with the assistance of these diagrams which will appear on pages 25, 27 and 33 of International Currency Review Volume 34, #2, to have represented an operation concocted by the corrupt Paulson Treasury, to refinance and revalue the worthless derivatives trash ‘assets” and to refinance Carlyle, Carlyle Capital etc. – whereas it was fraudulently marketed to Congress and to the American population as a bank bail-out programme which was also intended to alleviate the mortgage ‘crisis’. It represented, therefore, a fraud on the United States Government, the American people and the whole world.
The new version of TARP under President Obama, marketed as an economic stimulus bill, has the same primary objective as the TARP scheme. It is NOTHING to do with resolving the crisis and, like Geithner’s incoherent and immediately discredited proposals, will be seen to represent another fraud – probably a fraud too far.
Significantly, the Chinese authorities were reported on Friday 13th February to have informed Mrs Hillary Clinton, whose own involvement in criminal financial operations they of course know all about, that if the United States is to receive further Chinese investments in US Treasury securities, the US Government will need to guarantee all preceding Chinese investments in US dollar assets. In other words, the Treasury must provide and insurance wrap or guarantee for Chinese investors, including the Chinese Government.
• Translated into the vernacular, this riposte represents a Chinese official black eye or raspberry for Mrs Clinton and the Geithner Treasury; or to be more precise, the Chinese have told the US Secretary of State, who removed $500 million from Bank Crozier in Grenada, to GET LOST.
FAT CAT BRITISH BANKERS SO SORRY THEY LOST THEIR OWN MONEY
If after killing ten people while driving under the influence of alcohol you say to the policeman who is arresting you ‘I’m ssh-sho shorry, offisher, I couldn’t sh-shee where I wash going’, the fact that you have apologised to the policeman will not prevent you being arrested and cuffed, hauled off to a police cell, breathalysed, dragged into court, remanded in custody, put on trial and sentenced for grievous bodily harm and manslaughter, after losing your driving license.
However if you are a British banker and a big mason as well, and you have spent two decades presiding over banking fraud in which your institution has enthusiastically participated, you are liable to imagine that you can apologise’ profusely in order to avoid the consequences of your criminal behaviour – while spattering your fake apologies with gratuitous references to the fact that you personally have lost millions and are much poorer as a consequence of the fact that your bank frauds have been found out. Further, when analysed, your apologies are discovered not to represent personal apologies at all, but merely ‘regret’ at the ‘turn of events’.
That these creatures live in a cocooned world of legitimised corruption was confirmed when, as the Financial Times reported on its front page [11th February 2009], four previously ‘top’ British 'Fat Cat' bankers made the following arrogant statements to Members of Parliament:
• Lord Stevenson, Former chairman of HBOS: ‘We are profoundly, and I think I would say unreservedly, sorry at the turn of events… All of us [Fat Cats] have lost a great deal of money’.
Translation: We are not sorry for our participation in the Ponzi frauds. What we are sorry about is that our Fraudulent Finance operations came unstuck, as a consequence of which we personally have lost a huge amount of money. It’s a shame because we were all doing so well before the discontinuity, weren’t we.’.
• Andy Hornby, former Chief Executive of HBOS: ‘I don’t feel I am particularly personally culpable … I have lost considerably more money in my shares than I have been paid’.
Translation: ‘All I care about is that I have personally lost money. I couldn’t care less that as a direct consequence of my own participation in the Fraudulent Finance derivatives scams, I have brought the whole world to the edge of ruination’.
• Sir Tom McKillop, former chairman of Royal Bank of Scotland: ‘We bought ABN Amro at the top of the market. So anything we paid was an error. Everything we paid, basically, has not been worth it. In fact, we are sorry we bought ABN’.
Translation: ‘I’ll fob them off with this bromide so that they don’t get round to asking me why on earth we bought ABN Amro, because if they were to ask me that, I would have to reveal that we bought ABN Amro in order to obtain control of a vast portfolio of secret accounts containing stashed accruals generated through Fraudulent Finance operations that we were lusting after’.
• Sir Fred Goodwin, former Chief Executive of Royal Bank of Scotland: ‘I could not be more sorry for what has happened. But I’ve invested a lot in RBS… it’s of great distress for me to see what particularly my colleagues are going through’.
Translation: ‘However I am not going to mention that I presided over the construction of a huge campus for my bloated institution using the proceeds of dubious Fraudulent Finance transactions, and neither shall I be making any reference whosoever, if I can get away with it, to the fact that we plastered Caribbean airports with garish posters encouraging investors including by definition agents handling the proceeds of CIA-developed drug-trafficking operations, to park the funds they control with Royal Bank of Scotland’.
BARCLAYS BANK’S FALSE BALANCE SHEET
Luckily for the Show Trial bankers on display, none of the MPs on the investigating Committee asked the key question: what was the source of the funds you were playing with?
Likewise, when the institution regarded by experts as even more corrupt than Royal Bank of Scotland, Barclays Bank, suddenly announced on 9th February that it had expanded its balance sheet over the preceding 12 months by £900 billion, so that Barclays’ assets and liabilities both mushroomed to more than £2.0 trillion, NO-ONE in the media bothered to ask Barclays about its source of funds. The Gross Domestic Product (GDP) of the United Kingdom is about £1.4 trillion.
The ‘source of funds’ issue was passed off on the basis that the bank had acquired hundreds of billions of dollars of derivative positions alongside the bank’s acquisition in September of the North American ‘assets’ of Lehman Brothers.
Obviously, if Barclays Bank were to fail – dismissed as an ‘unlikely event’ on the 10th February 2009 by The Times’ Banking and Finance Editor, Patrick Hosking – the size of Barclays’ balance sheet would have serious repercussions for British taxpayers and would destroy the creditworthiness of the British Government. But is it really ‘unlikely’ that Barclays Bank, stuffed with worthless assets that it values fraudulently at full fake value, might fail?
ON FRIDAY 13TH FEBRUARY, LLOYDS TSB’S SHARE PRICE COLLAPSED BY 35%. In the evolved context, there is no such thing any more as a bank that’s TBTF ('Too Big To Fail') because, on the basis of fraudulent valuation, such prospectively failing institutions now have balance sheets that exceed the total value of the host country’s Gross Domestic Product by an order of magnitude.
It’s stupid to suggest that such failures are ‘unlikely’ when the glaring reality is that as a direct consequence of their decades of playing Ponzi, these banks are all technically bankrupt.
Barclays Bank is a puff fish: its balance sheet was puffed up by $900 billion of fake ‘assets’ that have no value [see below] which the bank says have value and which its accountants corruptly certify as having value. The auditors for Barclays Bank had better be well protected by adequate insurance against being sued by an army of scammed depositors and others when it transpires that this institution is in fact bankrupt and that the British authorities cannot possibly bail it out.
• The same now applies to Lloyds TSB.
WHY WE WERE TOLD TO ‘COOL IT’ ON CRITICISING BANKERS
Meanwhile, in our report dated 25th January 2009, you may recall that we ran some paragraphs under the heading ‘BRITISH MINISTER CALLS FOR CORRUPT BANKERS TO BE ARRESTED’.
Specifically, we referenced a front-page report in the Times of 24th January 2009, in which Lord Myners, the Brown Government’s Minister for the City of London, was reported to have demanded the arrest and indictment of British bankers engaged in Fraudulent Finance practices [see, for instance, above]. The newspaper had reported inter alia as follows:
‘A furious onslaught on banking’s “Masters of the Universe” has been unleashed by Mr Gordon Brown’s City Minister. Too many bankers fail to realise they are grossly over-rewarded and have no sense of society… Lord Myners says that the banks have been mismanaged, and [has delivered] the strongest attack [by UK officials] so far on those responsible’.
'Lord Myners says that there will have to be fundamental changes in the way that banks operate and that ‘the golden days of huge bonuses in the investment banking arms are gone…'.
'He calls on banking boards and shareholders to stamp on the reckless behaviour of bosses and adds’ – crucially, which is why we quoted this – ‘that if people have committed crimes, they should be prosecuted’'.
We then added the following elaboration:
‘In view of the fact that we have been reporting arrests of bankers until we are blue in the face (with more reported below), this outburst, late in the day as it is, represents evidence that the too-slow-to-come-to-its-senses UK official sector has at long last been shocked into the realisation that this is a CORRUPTION CRISIS first and foremost’.
‘ALL RESPONSES SHOULD BE BASED ON THIS PREMISE, rather than on the more palatable presumption that this is ‘simply’ a systemic global financial crisis of the utmost gravity’.
In our report dated 30th January 2009, under paragraphs headed ‘ATTEMPT TO GAG US FROM REPORTING UK FRAUDULENT FINANCE DEVELOPMENTS’, we stated:
‘… A few days ago, the Editor was asked: would we hold back on any further comment arising from Lord Myners’ belated observation, reported in the preceding analysis, that those engaged in the FRAUD in the banking sector in Britain should be prosecuted.
‘We were about to add that the Conservative Party leader, David Cameron, interviewed on Sky News on 26th January, elaborated:
‘We need to look at the behaviour of banks and bankers, and where such people have behaved inappropriately, that needs to be identified, and if anyone has behaved criminally, in my view, there is a rôle for the criminal law/ I don’t understand why in this country the regulatory authorities seem to be doing so little to investigate it, whereas in America, they are doing quite a lot’.
On 10th February 2009, The Times’ columnist Rachel Sylvester kindly unravelled the conundrum surrounding the question of why the Editor was suddenly asked to ‘hold it’ with reference to further elaboration of Lord Myners’ entirely correct warning that criminal bankers should be prosecuted. In her article entitled ‘Labour can’t control the pinstriped puppets’, she wrote:
‘Lord Mandelson, the Business Secretary, was less than pleased when Lord Myners, the City Minister, launched an onslaught against the “grossly over-rewarded” Masters of the Universe last month. “A key part of New Labour was to recognise the importance of wealth makers”, a certain Government aide says. “A big tactical error would be to unleash a lot of anti-banker rhetoric”’ (3).
Ah, so NOW we know we know why we were requested, via the MI-6-X-Y-Editor transatlantic loop, to ‘go easy’ on criticisms of bankers, and especially on suggestions that those British financial sector executives believed to have been engaged in criminal Fraudulent Finance should be prosecuted.
The source behind this request was none other than the intelligence operative Lord Mandelson himself. Lord Mandelson, it appears, is not at all keen that banking executives should be punished for their financial crimes: so he let it be known that the Editor should be informed accordingly.
A COUPLE OF PERTINENT ‘PERISH THE THOUGHTS!’
Whether this means that Mandelson reads our website, and whether it further implies that he is under pressure from a certain powerful a sponsor, is something that we won’t need to go into at this juncture: no doubt this aspect of the matter, like everything else, will ‘come out in the wash’. But for the time being, Heaven forbid that a British Minister of the Crown should be interfering in the legal process by becoming actively engaged in discouraging justified calls for these heads of criminal financial enterprises, past and present, to be prosecuted for fraud. Perish the thought!
It cannot possibly be the case, either, that when, as Chancellor of the Exchequer, Gordon Brown appointed Dr Alan Greenspan as an adviser, the frequently arrested Dr Greenspoon was actually employed to advise the then Chancellor on how to PREVENT the lid blowing off the London-based derivatives Ponzi scamming pressure cooker, on behalf of his mentor and fellow criminal finance Godfather, George H. W. Bush Sr., and his co-conspirator and partner in these giga-financial crimes Tony ‘Rollover’ Blair, can it? Perish that thought as well.
• A correspondent writes from the United States to inform us that his mother, who lives in Ruislip, Middlesex, bought an apartment outright (for cash) on a 125-year lease, with no mortgage.
But in March 2004, she obtained a short-term loan from Northern Rock which, as we know, was extensively engaged in Fraudulent Finance operations, with a Clinton-linked subsidiary operation out of Jersey, Channel Islands. When the lady paid off the loan, in less than three months, she then requested that the lease documents used for collateral purposes be returned to her from Northern Rock. The bank informed her that they could not locate the documents.
She wrote letters to Northern Rock, who responded that they would arrange for copies to be sent from the Land Registry. The lady said that she did not want copies, but the originals. Northern Rock stated that they did not hold the originals, even though they had taken the originals as collateral for the loan. The poor lady then complained to the Banking Ombudsman, who proved to be completely ineffective (suggesting that the UK Banking Ombudsman is there to protect the UK criminal banks involved in this activity, rather than the customer). In the end, the lady obtained two copies of the lease documents from the Land Registry (in December 2004 and March 2005).
The correspondent requested our help: and although we simply cannot take on ‘cases’ (since we receive several such distressing cases with a request that we investigate them every month from the United States), in this sole instance we responded that if we were provided with the relevant underlying correspondence, we will take the matter up with Northern Rock, with the suggestion that if the new Government-sponsored management of this institution persists with the stance that they cannot now retrieve this person's original lease documents, we will then expose the nationalised Northern Rock as remaining complicit in these evil fraudulent finance operations under the British Government's protection based upon the corrupt alienation of underlying property documentation. We now await receipt of the relevant correspondence.
SNAPSHOTS OF PONZI CRISIS FALLOUT IN BRITAIN AND EUROPE
Meanwhile the fallout from exposure of the Fraudulent Finance practices continues to reverberate across Europe. A snapshot of some developments on 11th to 13th February under this heading will illustrate that multilingual chickens are coming home to roost:
• City of London:
Half a dozen financial services businesses in the City were reported on 11th February to be under investigation by the Serious Fraud Office SFO), which is equipped with a new Director, Mr Richard Alderman, who has replaced previous management considered by the Editor of this service, from first-hand experience of the SFO’s failure to investigate manifest frauds committed by a European Commission-linked British firm, to have been duplicitous and compromised. Whistleblowers have reportedly drawn the SFO’s attention to the activities of colleagues and others; and the SFO’s own lawyers are said to be coordinating their inquiries with the Financial Services Authority and the City of London Police. The SFO is also using US-style ‘swat teams’ in City fraud investigations.
Additionally, it was revealed on 13th February (The Times, London) that Terry Freeman, né Sparks, a Director of GFX Capital Markets was detained by a specialist unit of the City of London Police at his Essex home on Monday 9th February 2009. A source was quoted as telling the newspaper that ‘the Police are looking to see if he was a mini-Madoff. There are elements of a Ponzi scheme but what they have to determine is whether the business became that after it got into trouble or else whether it was a Ponzi all along’.
• However OUR question is more to the point: Is this one of the ‘ten Madoffs’ waiting to blow in Europe, referenced in the preceding report?’
Freeman’s fund ceased trading in January 2009, leaving hundreds of clients who had invested between £5,000 and £500,000, chasing their money to no avail. Freeman-Sparks set up GFX in 2004.
Unsurprisingly, trouble started precisely in SEPTEMBER 2008 (the $14.0 trillion was, you will recall, placed into ‘lockdown’ on 12th September 2008: the Editor received the 'triple gunshot voicemail' on the following Saturday), when GFX’s clients were suddenly unable to obtain new statements and were prevented from withdrawing their funds. The postings on Mr Freeman’s 'Trader’s Diary' blog became erratic and many clients became anxious after finding they could not contact the principal.
The firm suspended its operations immediately ahead of the Madoff arrest, on 3rd December 2008.
A message written by a ‘concerned investor’ posted on Mr Freeman’s blog reads: ‘Terry is being investigated by the City of London police for fraud, money-laundering and unregulated trading. The offices in London are no longer manned’. Police confirm that Freeman has been interviewed with respect to allegations of money laundering and potential offences under the Financial Services and Markets Act, but has been released pending further enquiries.
• British Government:
A few days ago, the British press revealed that Sir James Crosby had resigned as Chairman of the Financial Services Authority which is supposed to be aggressively investigating City-wide Financial Ponzi-model fraud, after he was accused of having sacked a senior HBOS executive who had been warning of excessive risk-taking at HBOS and that the bank was shattering all the known rules of commercial banking behaviour and prudence. The sacked executive, in a memorandum to a House of Commons Committee, noted that his many conscientious warnings were sternly rebuffed, and that there was a sterile culture of ‘not rocking the boat’ and ‘don’t tell me what I don’t want to hear’ at the banking entity which has since been taken over by Lloyds TSB, in an unwise move which has severely weakened that institution and its reputation.
On 13th February it was further revealed in the British press that an American, Glen Moreno, the Director and Chairman of the newly established entity set up by the Brown Government called UK Financial Investments, which is supposed to preside over and supervise the progress of how the Government’s bank bail-out money is used, had resigned from his new post (which he only took up a few weeks earlier) amid allegations that a Liechtenstein institution with which he has links is (of course) involved in tax evasion operations.
The resignation followed Treasury questions in the House of Commons, during which the highly respected and skilled Conservative MP, Michael Fallon asked: ‘Can it really be right that the body looking after the taxpayers’ interest… should be chaired by Mr Moreno who appears to have been so heavily involved in tax dodging in Liechtenstein?’ It has transpired that Mr Glen Moreno was a trustee of Liechtenstein Global Trust (LGT), a private bank accused of facilitating large-scale tax avoidance. A former employee at LGT, Heinrich Kieber, revealed the existence of secret offshore accounts held by tax-evading US politicians and others in the United States and other countries.
• Belgium:
Shareholders in Fortis rejected a state rescue plan to carve up the banking and insurance group, defying Belgian Government warnings that Fortis will face total collapse. On 11th February, Belgian Ministers convened an emergency meeting to try to prevent the dispute bringing down yet another coalition Government, following the collapse in December of the Belgian Government led by Yves Laterme over the handling of the nationalisation of Fortis, Belgium’s largest single employer. More than 5,000 angry shareholders roared with delight as their votes blocked a plan to sell part of the Fortis Group to BNP Paribas, another huge institution which is up to its neck in Fraudulent Finance, with the Belgian state taking control of Fortis’s lending operations. Shareholders had won a court case to delay the Belgian Government’s blueprint for the carving-up of Fortis until they had been consulted. The Belgian Finance Minister, Didier Reynders, said that the entire enterprise would face bankruptcy if the shareholders blocked the deal. The total liabilities of Fortis are equivalent to four times Belgian Gross National Product. The interest rate spread between Belgian official debt and German Bunds soared by 125 basis points on fears that the Belgian Government may have to take over the liabilities of Fortis, further undermining the creditworthiness of the Belgian state. Again, these liabilities the false values attributed to the trash ‘assets’ on Fortis’ balance sheet.
• Ireland:
The latest banking scandal to break in Ireland concerns the discovery by Government-appointed investigators that Irish Life & Permanent had transferred more than six billion Euros billion £5.4 billion) of deposits to the books of the Anglo Irish Bank very shortly prior to the end of the bank’s financial year, only to withdraw the exact same amount some weeks later. Most of the funds were deposited on the final day of the bank’s most recent financial year. Moreover the bulk of all these deposits were placed just hours after the Irish Government had announced a guarantee to insure all deposits and debt liabilities held at Irish banks. The Finance Minister, Brian Lenihan, says that he was aware of certain unacceptable practices, including the transfer from Irish Life, when the decision was made to nationalise the bank.
Given these shady practices, the Office of the Director of Corporate Enforcement and the financial sector regulator have initiated investigations into these transactions, which may result in criminal proceedings: Lord Mandelson, please note. The Irish Defence Minister, Willie O’Dea, elaborated:
‘If it transpires that Anglo Irish, or any bank, was artificially building up its deposits to give a false picture of its financial health, that would be very, very, very serious’.
• European Commission:
A leaked memorandum prepared for the EU Finance Ministers (ECOFIN) was reported to have warned that the so-called ‘toxic’ debts of European banks risk overwhelming some of the weaker EU ‘Member States’ and ‘may’ [sic] present a systemic danger to the overall EU banking system. Countries which the authors of the document appeared to have in mind are those with bloated banking systems, namely: Ireland, Britain, Belgium, Netherlands, Austria, Sweden and a non-EU country, Switzerland. Some crucial passages from this document have surfaced, including:
'Estimates of total expected asset writedowns suggest that the budgetary costs of asset relief could be very large both in absolute terms and relative to Gross Domestic Product'.
'For some Member States, it may be the case that asset relief for banks is no longer an option, due to their existing budgetary constraints and/or the size of their banks’ balance sheets relative to GDP. The extent of any possible risks to the European Union's banking system as a whole from an inadequate response in these Member States needs to be considered’.
EUROPEAN COMMISSION’S DELUSIONS ABOUT ‘ASSET RELIEF’
It will have been noted here that the European Commission is looking at ‘asset relief’ as though this is a viable policy – when what is actually implied here is that the false values of the fundamentally valueless derivatives ‘assets’ are supposed to represent actual liabilities which the governments in question might be called upon to honour.
This is a strategy of certain ruin in an environment that is also destroying the fabric of Economic and Monetary Union (EMU) and its add-on provisions. For instance, contrary to all EU norms, the Irish budget deficit is projected to reach 12% of GDP in 2010, with the equivalent measures in both Spain and the United Kingdom expected to reach 10% of Gross Domestic Product.
All three countries have been ‘enronised’ and used as ‘trading platforms’ by the Bush Sr.-Clinton Greenspan organised criminal Fraudulent Finance Ponzi derivatives offensive.
SWISS RE SCRAPS ITS DERIVATIVES OPERATION COMPLETELY
On 12th February 2009, the world’s largest reinsurer, Swiss Re, dispensed with the services of Jacques Aigrain, its Chief Executive, a former JPMorgan investment banker, who had shifted the organisation into risky derivatives operations. Swiss Re announced a record full-year trading loss of SwFr1.0 billion (£602 million) after announcing a week earlier that it was scrapping its investment bank altogether. That entity traded ‘Structured Products’ such as Credit Default Swaps (CDOs), triggering a writedown of SwFr6.0 billion (£3.6 billion) for the full year in question.
Swiss Re pointedly replaced M. Aigrain with Stefan Lippe, an insider, who previously headed the group’s property and casualty and life and health underwriting divisions. In other words, the entity placed a veteran professional reinsurer into the outgoing CEO’s slot, signalling that it would be reverting exclusively to its core business, and would have nothing more to do with derivatives.
Note that the dismissed CEO who took Swiss Re on a derivatives wild goose chase, came from JPMorgan. Translation: Swiss Re not only closed down its so-called investment banking operation, but also reflected the true position, by VALUING THE DERIVATIVES ‘ASSETS’ AT ZERO.
• This is the kind of evidence of the worthlessness of these fraudulent assets, that cannot be ignored, even by derivatives market ideologues,
• FACT: Many of the colossal losses being logged by financial institutions reflect the fact, which is never reported, that they are ACTUALLY engaged in purging their books, or those of subsidiaries, altogether of the fraudulent derivatives ‘assets’ which were previously reported to have value, but which, since the discontinuity, have been seen to be worth nothing at all.
• ANOTHER FACT: One reason this is happening is that accountancy firms (auditors) do not relish the prospect of being sued for negligence in having signed off on accounts containing fraudulent valuations of derivatives ‘assets’ – given the general climate that has arisen due to the concrete discontinuity, in which it is now universally recognised that derivatives have no value and can no longer be fraudulently passed off as though they do.
WORST PROSPECTS FOR BRITAIN SINCE 1931
In announcing that Britain faces its steepest downturn since the postwar years of 1945 and 1946 and its worst peacetime contraction since 1931, with real Gross Domestic Product expected to contract in real terms by 4% year-on-year in 2009, the Governor of the Bank of England, Mervyn King, warned on 11th February that unless the British Government and policymakers worldwide succeeded in ‘bringing the banking crisis to an end’, the consequences for the UK economy could be even more severe. Mr King added:
‘The United Kingdom economy is in deep recession. The length and depth of the recession will depend to a significant extent on developments in the rest of the world, where a severe economic downturn has taken hold’.
• No measures have been taken that can bring the banking crisis to an end.
On the contrary, all the measures that have been taken are precisely the reverse of what needs to be done, being predicated on the basis of the false assumption that the ‘toxic derivatives assets’ have value, and can be revalued with the new (false) values fixed, which is a fanciful pipedream as Mr Geithner is discovering for himself.
GOVERNMENTS UNABLE TO HANDLE HUGE INSTITUTIONAL COLLAPSES
By extension, and as can be seen from the above, governments are panicking in the face of a general expectation that they will indeed become progressively (or suddenly) liable to guarantee and therefore honour the liabilities of the recalcitrant criminal enterprise banks.
Against this background, they have embarked upon a desperate policy of printing money, a.k.a. of quantitative easing, to balloon the money supply, and to expand government debt on a scale with no precedent, thereby effectively ensuring a ‘wheelbarrow’ future.
Instead of adopting this ill-advised and manic non-strategy, the governments concerned should do what the Group of Seven financial powers agreed to do at their meetings in both 2007 and 2008, and which they have so far FAILED to do.
• That policy is spelled out in the section entitled THE SOLUTION.
Governments have failed to implement the strategy that the G-7 agreed upon in 2007 and 2008 because they are fearful of the big criminal enterprise banks and of the powerful traders and intermediaries that wish to continue the Fraudulent Finance carousel operations, as though there had been no discontinuity – in order to recoup the funds they lost in dancing to the enticing tunes played for them by Godfather Bush Sr. and his sorcerer-in-chief, Dr Alan ‘Bracelets’ Greenspan.
And behind this sabotage lies the factor identified earlier – namely, the criminal finance intentions and covert self-financing practices of the US ‘State within the State’ which controls the Executive Branch, selects its leading figures, and has usurped the power of the Executive.
In order to sustain this position, the CIA, controlled by the Bush-DVD faction inside the Intelligence Power, has seen to it that its Fraudulent Finance Ponzi operations have been exported to as many counterparties abroad as the external platforms that have been compromised can muster.
By enticing so many swarms of flies into its web the Bushspider operating out of the George Bush Center for Financial Terrorism has attempted to preclude the discontinuity that has actually taken place – namely, exposure of the fact that these transactions are ALL FRAUDULENT.
The US Treasury’s cack-handed attempt to perpetuate the fraud, by having the corrupt Federal Reserve fund exotic new US Treasury instruments (or ‘Geithners’) ‘enhanced’ with an insurance wrapround and a deceitful Treasury ‘good health’ label, has both invited ridicule and drawn global attention to the relevance of Mervyn King’s warning that the situation will deteriorate sharply 'if the world’s policymakers fail to bring the banking crisis to an end'.
There is, and has always been, ONLY one way to bring the global banking crisis to an end: and that is to implement, without further obtuse delay, the Refunding Programme for the US dollar and world trading system agreed upon by the Group of Seven Financial Powers in 2007 and 2008:
• See under SOLUTION, above.
MADOFF UPDATES
Following the revelation that Mrs Ruth Madoff removed about $15.5 million from a Massachusetts brokerage firm operating as a Ponzi scheme ‘feeder’ funnel into the Madoff giga-Ponzi enterprise during the three weeks prior to Bernard L Madoff’s arrest on 11th December 2008, it has emerged that a far larger number of people than previously envisaged, have been scammed and/or affected by the Madoff dimension of the George Bush Sr. global financial corruption nexus.
According to Court documents filed by the Massachusetts securities regulators, Mrs Ruth Madoff withdrew $5.5 million from Cohmad Securities on 25th November and a further $10 million on 10th December. This information is detailed in two wire transfer receipts filed by Mr William Galvin, the Massachusetts Secretary of State.
These wire transfer orders represent the first open evidence that any member of Madoff’s family was assembling cash immediately before Madoff ‘confessed’ on 11th December that he had been running a gigantic ‘Ponzi scheme’ for years. Mr William Galvin seeks to revoke Cohmad Securities’ registration in Massachusetts for failing to cooperate with his investigation.
This State filing coincided with US Federal prosecutors being granted another extension, to mid-March, to file an indictment or present evidence against Mr Madoff. The Financial Times reported on 12th February 2009 that ‘Mr Madoff’s attorney and prosecutors have been in discussions about a “possible disposition” of the case, according to a Court document filed on 11th February. This could mean that prosecutors and the defence are attempting to work out a deal before trial. Mr Madoff has already agreed to a partial settlement with civil authorities’.
These developments reek of an ‘insider stitch-up’, as trailered by this service in our earlier report on this subject. The forthcoming issue of International Currency Review, Volume 34, #2, contains facsimiles of the early Madoff Court case documents obtained by the Editor from the United States District Court for the Southern District of New York during his pre-Christmas visit to New York, with a great deal of related background information.
On 13th February, Bloomberg reported that Mr Madoff’s defence attorney, Ira Sorkin, may have a conflict of interest in defending his client because the lawyer’s parents invested with Bernard L. Madoff until 2007. Madoff’s Ponzi operations are thought to have functioned as early as the 1970s.
An IRA (Individual Retirement Account) opened by Sorkin’s father was inherited by his mother in 2001. When his mother died in 2007, the IRA was cashed out. Joan Meyer, a former prosecutor who is now a partner with Baker & McKenzie LLP, said:
‘If one of his close family members was the recipient of that money and essentially benefited from that fraud scheme, it’s something that an attorney would clearly have to consider’. The Wall Street Journal reported that the account was divided between Mr Sorkin’s sons, Roger and Peter.
Ms. Meyer elaborated that defendants who sign waivers for their lawyers in such prospective conflict-of-interest cases and who are later convicted, have been known to claim that the waiver was obtained without sufficient information or was sought in respect of conflicts that cannot be waived, potentially leading to what Ms. Meyer called “a litigation issue in the future”.
Sorkin’s name and those of his parents appeared on the 162-page list filed in the US Bankruptcy Court in Manhattan [see our alphabetic listings, reports dated 6th February 2009]
Other links between Sorkin and Madoff over the years have also been dredged up recently.
All we would say at this stage is that this state of affairs may, we suspect, turn out to be ‘extremely convenient’ for Madoff in due course, and comparably ‘embarrassing’ for the US Government.
• On purpose?
OUR SUSPICION OF A STITCH-UP IS SUPPORTED BY ANOTHER SOURCE
The Editor’s early published suspicion that the Madoff crisis was vulnerable, given the drafting in of certain ‘connected’ attorneys, to being 'stitched up behind closed court doors', and our earlier allusions to the reality that the Madoff Ponzi operation was linked to the Bush-Clinton-Chicago organised crime Octopus are supported by the following excerpt from Wayne Madsen’s WMR website (dated 9th February 2009):
‘The Securities and Exchange Commission (SEC) announced that it had cut a deal with $50 billion Ponzi scammer Bernard Madoff whereby Mr Madoff will neither admit nor deny fraud claims against him in a suit brought by the SEC. In return Madoff has agreed to pay civil fines and penalties levied by the SEC. The agreement has no bearing on Madoff's criminal trial’.
‘WMR has learned that in addition to 20 million documents stored by Madoff in a warehouse in Queens that were stored without any indexing system and merely placed in boxes and strewn around the floor, are millions of additional documents that were stored by Madoff in a Brooklyn warehouse that was partially flooded. A number of Madoff documents there were destroyed by water damage’.
‘WMR has also learned that a key element in Madoff's Ponzi scheme was Madoff Energy LLC, formed as a Delaware corporation in February 2007. Other Madoff firms in the energy arena were Madoff Energy Holdings LLC, Madoff Energy III LLC, and Madoff Energy IV LLC. There are links between these now-defunct Madoff energy entities and Texas oil and natural gas industry interests, some close to the Bushes and Dick Cheney'.
'WMR has also learned that the kid glove treatment given by Federal authorities to Madoff, including allowing him to remain in his Upper East Side luxury town home, is because Madoff's Ponzi scheme was part of a much larger operation, one involving top officials of both the George W. Bush and Barack Obama Administrations, as well as the notorious Russian-Israeli Mafia’.
• JUST AS WE INDICATED EARLIER.
CRUDE CIA BLACKMAIL THREAT AGAINST MI-6
The Madsen report dated 9th February 2009 also contained a veiled threat of CIA blackmailing operations against the British Government which we understand to be a further dimension of the bitter intelligence war and stand-off between the threatened US Intelligence Power and the British intelligence services centred around the issue of The Queen’s LOAN funds.
The veiled threat is interpreted by us as a deliberate provocation by the beleaguered CIA which is resisting the inevitable implementation of the G-7 – Approved Refunding Programme because of its fear that it will then lose key sources of illicit finance which are the fountainhead of its usurped power over the Executive Branch and what it has hitherto considered to be its unchallengable US and worldwide hegemony.
Madsen, who is widely used to run ‘trailers’ of what the CIA and its affiliate entities have in mind, and whose service also specialises in ‘breaking’ connections that certain US forces want ‘out there’ for their own reasons – and who has, significantly, NEVER alluded to our reports, indicating that his service may engage in selective reporting – referenced the controversy surrounding the detention and brutal treatment in Gantanámo of Binyamin Mohamed, whom Madsen INCORRECTLY claimed to be an Ethiopian citizen when in reality he is a British citizen, and whose lawyers have demanded that the British Foreign and Commonwealth Office turn over 42 classified documents that reveal how Mohamed was tortured, renditioned between Afghanistan, Pakistan, Morocco and Cuba which, Madsen reported ‘may also shed light on the British Government’s involvement in kidnapping and torture’.
The source elaborated:
‘WMR has learned that the CIA, with the support of the Barack Obama Administration [sic! The CIA CONTROLS the Obama Administration], is threatening to release details of other British abductions and torture if London proceeds to reveal details of the kidnapping and torture of Mohamed’.
The report then went on to spell out what blackmail cards the CIA thinks it holds against MI-6, which has the power and responsibility (see our earlier reports) to procure the implementation of the Settlements and the Refunding Programme.
The following package represents a crude, typically CIA-style blackmail threat:
‘Specifically, the CIA is in possession [how on earth does Madsen know? – Ed.] of potentially embarrassing details of the abduction and torture by Britain’s MI-6 intelligence service of 28 Pakistanis abducted by British agents in Athens after the July 7, 2005 transit bombings in London’. The report continued to elaborate on this matter in a tone which can only be described as very threatening, concluding with the following:
‘With suspicions growing that Milliband [British (Jewish) Foreign Secretary] and Prime Minister Gordon Brown are involved in a major intelligence cover-up, any US disclosures about Britain’s rôle in renditions and torture, violations of international and European law, could result in a further erosion of support to Labor in Britain…. If the British Government reveals details of Mohamed’s rendition and torture by the Americans, it can be expected that there will be a mutually-assured destruction campaign waged between Washington and London’.
The only problem with this barefaced blackmail threat is that a British Judge had already ruled – but in furious language, prompting superheated exchanges recently in the House of Commons – that the relevant information about the Americans’ brutal treatment of Mohamed would NOT be released for unspecified security reasons ‘and in order to preserve the essential confidences inherent in the intelligence relationships between the two countries’, or verbiage to that effect.
The British Foreign Secretary (Miliband) then elaborated at great length in Parliament about why the information would not be released.
• In other words, Madsen’s belated CIA blackmail threat was sterile, beyond its expiry date and empty – suggesting that the CIA was scratching around looking for some further pretext to exert pressure on the British, given the stand-off over the G-7-Approved Refunding Programme which it is systematically blocking.
• A pretty feeble operation, which was flattened when the British authorities saw through the CIA’s typically sordid blackmail attempt.
IN MEMORIAM
William Foxton OBE, a distinguished British Army officer, who rose from the ranks in the Green Jackets regiment, lost his arm in combat, and worked for United Nations missions, the French Foreign Legion and the Sultan of Oman, shot himself in the head on 10th February 2009 (not 1983) after losing his life’s savings in the Bush-Madoff Ponzi operation.
Major Foxton killed himself in a park near his home in Southampton. His son, Willard, 28, said of Madoff and associates:
‘They have got my father’s blood on their hands’. The retired soldier had invested some of the money he had earned while serving the Sultan of Oman, in two hedge funds that were rolled into Madoff’s scheme, and had lost ‘a six- or seven-figure sum’, according to Mr Foxton Jr.
‘Essentially I want Madoff and others to know that they have my father’s blood on their hands. I’m very angry. My first thought was to show up at Madoff’s trial in New York and throw my father’s medals in his face’.
If there is a trial, that is: right now, our early suspicion that the Bernard L. Madoff scandal and its reverberations were liable to be stitched up behind corrupt court doors by corrupt US lawyers trying to cover up for George Bush and the Clinton Chicago FBI and the other financial gangsters behind this corruption, looks as though it may have been right on the mark.
REACTIONS TO OUR REVELATION CONCERNING MICHAEL C. COTTRELL, B.A., M.S.
In the preceding report, dated 8th February 2009 we revealed for the first time that Michael C. Cottrell, B.A., M.S., is instructed to proceed with the Group of Seven-Approved transparent Dollar System Refinancing Capital Markets transactions on the basis of the $6.2 trillion of LOAN funds provided mainly by Her Majesty the Queen designed to generate taxable REVENUE on the books, thereby refloating the banks ON BALANCE SHEET.
This information was published because it had finally become clear that, despite all the reiterated promises, undertakings and assurances from behind the scenes that the G-7-Approved Refunding Programme would proceed as instructed by the lender(s), these undertakings had turned out to be as worthless as the trash derivatives ‘Structured Products’ that have been exposed as fraudulent and without any value, as is universally accepted. Previously it had been considered appropriate NOT to divulge this information – publication of which apparently came as a shock to certain parties who remain hell-bent on continuing the discredited Ponzi scamming operations.
As a direct and immediate consequence of that revelation, several responses were forthcoming:
• 1: SCURRILOUS LIBEL ATTACK AGAINST COTTRELL AND HIS CORPORATION:
First, Michael C. Cottrell, B.A., M.S., was subjected to a series of deliberately libellous assertions and innuendos in a website posting on 11th February 2009 by an operative called Tom Heneghan. We deal with this matter in the final section below. The purpose of the careless libel attack was to try to discredit Mr Cottrell and his firm Pennsylvania Investments, Inc., given that (see below) the Obama Administration is using the 'SMOKE AND MIRROR MONEY' generated by illicit means and contrary to the lenders’ and owners’ instructions off the back of the $14.0 trillion, to ‘reboot’ not the American economy (as is claimed) but first of all, the internationally and domestically discredited fraudulent derivatives sector for the benefit of all parties involved in this financial corruption.
• 2: CRUDE CIA BLACKMAIL THREAT AGAINST MI-6:
Secondly, a separate, crude CIA blackmail threat as described above was deployed in a clumsy manner to exert pressure on MI-6, within this overall context. Other ongoing, unspeakable CIA blackmail operations perpetrated by US intelligence cadres against targeted figures in Britain are known to the Editor of this service.
• 3: DIVERSIONARY ARTICLES 'REPLACING' G-7 BY INEFFECTIVE G-20:
Thirdly, all of a sudden, articles started appearing, coinciding with a meeting of Group of Seven Ministers in Rome on 13th February, suggesting that the G-7 was a spent force and that 'the action' would come from the Group of Twenty (G-20) who are scheduled to meet on 2nd April. The purpose of this new ‘angle’ was to discredit the G-7-Approved Refinancing Plan.
This line was pushed, in particular, in a Bloomberg article by Simon Kennedy, which kicked off with the following inaccurate statement:
‘The Group of Seven, whose finance chiefs convene this weekend in Rome, is ceding its traditional power to rebuild the world economy to a broader body of governments that now wield greater sway over global growth’.
Among the ‘authorities’ cited for this diversionary ‘line’ was Paul Martin, the former Canadian Prime and Finance Minister, who was reported to have told Bloomberg: ‘The G-20 reflects the realities of the global economy. Its Finance Ministers are becoming the dominant policy-making body’.
Also cited was none other than Gordon Brown, the British Prime Minister, identified earlier as having impeded the Settlements and the Refunding, who said on 9th February: ‘You cannot talk about the world economy and what you want to do without involving a whole range of countries’.
However the former American Treasury official John Taylor, who is now a Professor at Stanford University, contradicted all this by stating, accurately, that the G-7 can ‘still get things done better’ because it is smaller, involves only major economies and is monitored closely by investors. As for Joseph Stiglitz, the former Chief Economist with the World Bank and a former adviser to President Clinton, he of course pushed the G-20 line: ‘It’s effectively recognition by the G-7 that they don’t have the money. The money is in Asia, the Middle East’.
But the Group of Seven have permission to deploy the $6.2 trillion provided pro bono publico mainly by Her Majesty The Queen for transparent on-the-books taxable REVENUE generation to refloat the banks and thus the US and world economies, and they also command the means of implementing this strategy thanks to instructions referencing the Refinancing Programme, which require Capital Markets transactions to be conducted using the appropriate instruments by and through Michael C. Cottrell’s Pennsylvania Investments, Inc. investment banking firm.
Further, the notion that the G-20 can agree on anything PRACTICAL in this crisis is, in this Editor’s 38 years’ experience of observing these international platforms, eyewash. The G-20 powers can never agree on much, and can rarely implement anything effective: G-20 is just a talking shop.
And as indicated above, the Chinese have specifically informed Mrs Clinton that their terms for any further Chinese investments in US Treasuries entail the provision of a wrapround guarantee for all preceding Chinese financial investments – which, in translation, means that they informed the US Secretary of State that the Chinese will be pouring no more dollars down the corrupt US Treasury black hole – which, by further extrapolation, is another way of saying:
YOU HAVE NO SAY IN THE MATTER. WHAT HAVE YOU TO DO WITH US?
• A sentiment from which no sane and informed observer can dissent.
• 4: USE OF 'SMOKE AND MIRROR MONEY' DERIVED FROM THE $6.2TRILLION ETC:
In the fourth place, and crucially, passage of the 'stimulus bill' represents a pre-planned substitute for the use of HM The Queen‘s money to reboot first, the fraudulent derivatives sector, and only secondly, the US economy.
As noted above, the money allocated for this purpose is 'SMOKE AND MIRROR MONEY' generated from the illicit exploitation of the previously referenced $14.0 trillion (including the $6.2 trillion of LOAN funds provided mainly by The Queen), which were placed into ‘lockdown’ on 12th September 2008, following actions taken, we can now finally reveal, by Mr Cottrell and this service (which was why the Editor received the 'triple gunshot voicemail' message on the following Saturday morning).
The intention, therefore, is to deploy the illegally generated funds to kick-start the fraudulent derivatives sector again – notwithstanding the realities that it is now universally recognised that these fake 'assets' represent the products of a gigantic Bankers’ Ramp, and that institutions as prominent as Swiss Re are writing their derivatives exposures down to zero.
The so-called ’stimulus bill‘ is intended, first and foremost, to BY-PASS USAGE OF THE QUEEN’S LOAN FUNDS which had to be placed out of reach on 12th September 2008 because they were being misused by the banks, hedge funds and so-called 'private equity' funds that have been engaged for years in this Fraudulent Finance Ponzi-model activity.
The primary purpose of the 'stimulus bill' is the same as Paulson’s corrupt TARP scam, which was designed to refinance Carlyle, Carlyle Capital and friends, as described in the foregoing exposure with diagrams, to be published in the forthcoming issue of International Currency Review.
We can therefore state without fear of contradiction that the US Legislative Branch is co-conspiring with the US Treasury and the Obama White House to PERPETUATE THE DERIVATIVES SCAMMING FRAUDS by seeking to re-start the Ponzi scams following the discontinuity that has taken place (4).
Will this FRAUD succeed?
It cannot succeed. The Chinese, who have hard cash-cash dollars, will not purchase the degraded instruments that the US Treasury will be marketing.
Will other governments and parties that have had their fingers burned want to buy ‘Geithners’ or whatever ‘products’ are now to be concocted on the basis of the ‘stimulus bill’ that President Obama was expected to sign on Monday 16th February, on his return from Chicago where he will have been talking to certain circles with a vested interest in these matters?
What do you think?
OBAMA ADMINISTRATION SELECTS THE WORST OF ALL POSSIBLE WORLDS
So, because the US Government, under Mr Obama as under Bush II, will not agree to the SOLE SOLUTION [see above] TO THE CRISIS THAT HAS BEEN ON THE TABLE FOR SEVERAL YEARS, the United States and the Rest of the World are now condemned to suffering the very worst of all possible worlds – all in order to satisfy the greed and lust of a small clique of corrupt operatives, financiers and others who defer to the determination of the Intelligence Power to retain its control over the US Executive Branch as described above.
Hence Michael C. Cottrell’s request for the instructions pertaining to his stated responsibilities to conduct transparent Capital Markets operations in accordance with the G-7-Approved Refinancing Plan, to be applicable out of London, using the LOAN funds provided pro bono publico by HM The Queen for the purpose, in accordance with the Group of Seven’s long outstanding and hitherto sabotaged requirements.
THE LIBELLOUS ATTACK ON MICHAEL C, COTTRELL, B.A., M.S.
As noted above, the US securities expert Michael C. Cottrell, B.A., M.S., and his investment banking firm Pennsylvania Investments, Inc., were subjected to a deliberate, violent, scurrilous, libellous and desperate attack by an operative called Tomas P. Heneghan, whose address is reportedly 532 W. Jefferson Avenue, Naperville, IL 60540-5219.
• Heneghan is the President and Chief Executive Officer of Equity Lifestyle Properties, Inc.: mailing address: 2 N. Riverside Plaza, Ste 800, Chicago 60808-7882.
On 28th December 2007, Equity Lifestyle Properties, Inc. contributed $2,300 to the Hillary Clinton for President campaign. [Source for all this detail: CampaignMoney.cpm/political contributions/thomas-heneghan]. In the past, the Editor of this service was fed diversionary lies about this operative by an agent seeking to persuade us that Heneghan 'works for George Bush Sr.'.
On the contrary, this operative worked with Leo Wanta and David Williams and was involved with the Clintons and Al Gore. The libellous attack on Mr Cottrell and his corporation, consisting of smears and innuendos unsupported by any evidence, was specifically timed so as to follow the revelation in our preceding report of Michael C. Cottrell’s standing with regard to the instructions referenced above concerning the Group of Seven-Approved Refunding Programme on the basis of the $6.2 trillion of LOAN funds provided for the purpose pro bono publico and 'for the sake of the whole of humanity' by the lender.
The objective of the attack was to smear Michael Cottrell and his corporation ahead of the Senate's passage of the ‘stimulus bill’ which, instead of deploying these LOAN funds for the G-7-Approved Refinancing Programme ON THE BOOKS to refloat the banks in a proper manner, would instead apply the 'SMOKE AND MIRROR MONEY' generated by illicit means inter alia through the irregular exploitation of the LOAN funds prior to their placement into ‘lockdown’ on 12th September 2008.
As reiterated above, the LOAN finance was placed into 'lockdown' because it was being corruptly misused in contravention of the instructions and purposes for which the funds were loaned, as a generous discretionary contribution to rescuing the world economy from the fate to which the Bush and now the Obama Administrations have perversely consigned it.
This attack was laughable in the sense that it is said of Mr Cottrell, by the kind of people we are having to expose, that 'you can’t trust Michael Cottrell. He’s too honest'. However the libels and lies stepped beyond tolerable boundaries: and for this reason, first, the Editor agreed with Mr Cottrell a response to a request from a website for an interim statement; and secondly, Mr Cottrell prepared an Affidavit for publication on our website platform and for filing in Court [see below].
Both of these responses are now displayed. This was such a serious and gratuitous attack that Mr Cottrell has been left with no choice, except that he will not descend to the Heneghan level.
The attack also impugned the integrity and loyalty to the United States of Colonel Dana Wilcox.
The Editor has met this gentlemen and can state that among the information that he holds about him is included the fact that he has handled vast sums of money on behalf of Uncle Sam and has never ’touched a cent‘ – unlike other figures mentioned in our reports. Colonel Wilcox would probably not wish the Editor to have made this statement here, but in our view it succinctly summarises in one sentence the level of distinguished integrity applicable.
THE EDITOR’S INTERIM STATEMENT
At 5:43pm on Friday 13th February, the Editor‘s interim statement of rebuttal was posted by agreement (at the website’s request) on http://www.rumormillnews.com
The text of that statement is as follows:
(1) Michael C. Cottrell, B.A., M.S., is at his residence and office in Erie PA.
He has not been arrested.
(2) No warrants have been issued for the arrests of Michael Cottrell and Colonel Dana Wilcox and no investigations of either of them have been undertaken or are intended
(3) Your communication has been forwarded to the Badges.
(4) Aspects of the matter have, I understand, been vigorously dealt with by authorities behind the scenes.
(5) Michael C. Cottrell, B.A., M.S., may be contacted on 814 455 9218. Anyone calling him must identify themselves fully.
(6) All other assertions in the referenced Heneghan segment, with which I am familiar, are also totally false.
(7) The scurrilous attack by innuendo represents a response by Wanta, who remains a convicted felon, to our revelation for the first time, in the recent report, of the status of Mr Michael C. Cottrell B.A., M.S., with respect to the G-7-Approved Refunding Programme.
(8) I have been briefed on the matter in detail and will add substantially to this rebuttal of these scurrilous lies and libels in the forthcoming report, which is currently in preparation.
Christopher Story FRSA, London, 13th February 2009.
MICHAEL C. COTTRELL’S SWORN AFFIDAVIT IN RESPONSE TO THE ATTACK
At 8:46pm London time on 12th February 2009, Michael C. Cottrell, B.A., M.S., faxed the following sworn Affidavit to the Editor, for inclusion with this presentation. The Affidavit is structured for prospective filing at the United States District Court for the Eastern District of Virginia, Alexandria, by Colonel Dana Wilcox in the near future.
Colonel Wilcox and Michael Cottrell are understood to require a comprehensive retraction of the libels and lies about them perpetrated by Mr Heneghan against them. The text of the Affidavit forwarded to the Editor is as follows:
I, Michael C. Cottrell, B.A., M.S., as President, Chief Executive Officer, and Chairman of the Board of Pennsylvania Investments, Inc., do hereby swear and affirm the following facts –
That [I] refute and demand legal proof supporting the allegations presented by Mr Tom Heneghan, International Intelligence Expert, within “The Warrant Issued for Greenspan Madoff-Gate Update” [posting at:] (http://blog.myspace.com/tom_heneghan_intel), dated February 11, 2009…
ALLEGATION #1:
"P.S. WE CAN ALSO REVEAL TONIGHT THAT WARRANTS HAVE ALSO BEEN ISSUED FOR THE ARRESTS OF EAST GERMAN STASI DVD-U.S.-CIA AGENT AND EX-NAZI [sic], COLONEL DANA WILCOX, ALONG WITH FORMER LEO WANTA COLLEAGUE MICHAEL COTTRELL".
(1) Upon notification of this series of allegations by Mr Heneghan, on February 12, in a phone call with the authorities – between approximately 7.30 a.m. EST and 7:32 a.m. EST –
I was advised that the allegations are not true, no such warrants have been issued for either Mr Wilcox or myself – further, there is no investigation of us.
I demand Mr Heneghan show proof of said warrants issued, by whom, to whom.
ALLEGATION #2:
"BOTH WILCOX AND COTTRELL RECENTLY TRIED TO ILLEGALLY REPRESENT THEMSELVES AS REPRESENTATIVES OF AMBASSADOR LEO WANTA IN REGARDS TO IMPLEMENTATION AND SETTLEMENT OF THE WANTA-REAGAN-MITTERRAND PROTOCOLS".
(2) Per notification to the Department of Taxation of the Commonwealth of Virginia dated 31 March 2008, that since Mr. Lee/Leo Wanta has dismissed Michael C. Cottrell, B.A., M.S., from any and all activities relating to AmeriTrust Groupe, Inc.
• that all notices of taxation matters be referred to Mr. Lee Emil Wanta, 396-6726, Shareholder since May 20, 2004, at 715-864-6956/715-726-1097, or diplomat_switzerland@msn.com or at 13093 77th [Avenue] Chippewa Falls, WI 54729-6285;
• Registration change Request: 23 March 2008, AmeriTrust Groupe, Inc., 13093 77th Avenue, Chippewa Falls, Wisconsin 54729-6285;
• that all documents forwarded to ANY entity since 23 March 2008 have been under the authority of Michael C. Cottrell, B.A., M.S., President and CEO of Pennsylvania Investments, Inc.;
• Mr Dana Wilcox is neither a part nor an employee of Pennsylvania Investments, Inc.;
• Neither Mr. Wilcox nor Mr Cottrell – since 23 March 2008 – have or will ever represent a convicted felon named Leo/Lee Emil Wanta or AmeriTrust Groupe, Inc.;
I demand Mr Heneghan show proof of such an instance.
ALLEGATION #3:
"AT THIS HOUR, COTTRELL AND WILCOX HAVE BEEN ACTING AS COLLECTION AGENTS FOR THE BRITISH MONARCH QUEEN ELIZABETH IN REGARDS TO A $6.2 TRILLION LOAN GIVEN BY HER MAJESTY TO FORMER WHITE HOUSE OCCUPUNK GEORGE W. BUSHFRAUD".
• This is such an outrageous statement that any American can place themselves as "collection agents" for Her Majesty –
I demand Mr. Heneghan show the proof of said allegation.
ALLEGATION #4:
"BOTH COTTRELL AND WILCOX REPRESENT A NOTED MONEY LAUNDRY CALLED PENNSYLVANIA INVESTMENTS, WHICH HAS BEEN LINKED TO THE BERNARD MADOFF PONZI SCHEME…".
As President of Pennsylvania Investments, Inc., located at 1157 West 7th Street, Erie, PA 16502 – 814-455 9218 –
I demand that Mr. Heneghan provide any U.S. FEDERAL ATTORNEY that will substantiate this slanderous statement – WHERE IS THE PROOF – NO U.S. ATTORNEY has EVER stated or implied that Pennsylvania Investments, Inc. is or has EVER been linked to Bernard Madoff or any of the BUSH-CLINTON-MADOFF schemes;
A copy of this affirmation shall have the same effect and force as an original.
I, Michael C. Cottrell, B.A., M.S., President of Pennsylvania Investments, Inc., located at 1157 West 7th, Erie, PA 16602, United States Passport No. 205125335, do hereby swear and affirm that the above statement is true and factual.
[Signed]
Michael C. Cottrell, B.A., M.S.
President
Pennsylvania Investments, Inc.
12 February 2009.
References and Notes:
(1) ‘And he spake a parable unto them, Can the blind lead the blind? Shall they not both fall into the ditch?’: Luke Chapter 6, verse 39.
(2) Rachel Ehrenfeld told the Editor in October 1999 that she and a girlfriend were present in a women’s accessories boutique at the Rockefeller Center when, all of a sudden, 18 presidential security personnel rushed in and ordered everyone in the boutique to freeze. She and her friend were stranded in the middle of the floor. Shortly afterwards in walked President Bill Clinton, who proceeded to order something or other for one of his female ‘acquaintances’. Ms. Ehrenfeld told the Editor that the next few minutes felt like the best part of half an hour, and that she had never, in her whole life, experienced such an unpleasant atmosphere. She said that the vibes around this man were deadly. Suddenly Clinton turned to her and his face went as red as a beetroot.
Then, the purchase complete, the President and his bodythugs evacuated the premises, leaving the other customers stunned. Rachel said she couldn’t get out of the place fast enough.
Two subsidiary points complete this story (which we have told here before, without naming the source): First, Clinton is of course the illegitimate son of Winthrop Rockefeller, so ‘shopping’ at the Rockefeller Center makes sense for him. Secondly, Ms. Ehrenfeld is a leading criminologist and told the Editor that she had debriefed some of the worst serial killers in America, in the GULAG.
She added that never, during such debriefings, had she experienced vibes anything like as bad as those surrounding President William Jefferson Clinton. This man and his wife are back in control of the US Government, on behalf of their patrons, the Bush Crime Family.
(3) The attempt by Lord Mandelson to smother criticism of British bankers’ appalling behaviour hit a brick wall when Patrick Hosking added this condemnation in an excoriating commentary in The Times, London, of 14th February 2009, entitled ‘Britain’s bankers plumb new depths’.
The commentary, with which we are in total agreement, read in part:
‘The spectacle of bankers continuing to award themselves bonuses while taking taxpayer support is feeding an extraordinary public rage and a fierce sense of injustice. With 40,000 people losing their jobs each month, it is a recipe for trouble, come the traditional rioting months of the summer’.
‘The seething sense of unfairness is almost palpable. The view that a small élite not only caused the crisis, but continues to profit at the expense of everyone else, is near universal'.
'Gordon Brown’s promise of no rewards for failure in state-supported banks is looking ever more threadbare. We now know that Peter Cummings, the highest-paid individual on the HBOS Board, headed a division responsible for £7.0 billion of losses last year, yet he was still given a reported £660,000 payoff when he left in early January clutching his £6.0 million pension pot’.
‘The suggestion by Lord Myners, the City Minister, that some bankers simply have no sense of the broader society around them is getting harder to refute. To be preparing to pay out billions of pounds in discretionary bonuses over the next few weeks suggests an ignorance of the public mood and a single-mindedness bordering on the sociopathic’.
No doubt those who tried to pressurise the Editor this service to ‘cool it’ in reporting further on Lord Myners’ fully justified and long overdue observations on the filthy greed of these corrupt British banking types, will have read the foregoing passages in The Times. But just in case they didn’t, we reproduce them here for the record. All part of the service.
(4) Various American parties have sought to take issue with us over our presumed attitude towards President Barack Obama. Apparently we were supposed to have followed their example in abruptly ceasing to castigate outgoing President Bush Jr., and to switch to firing at the incoming President.
In order not to fall into this trap, the Editor invented the metaphor about jumping out of the frying pan and hovering in mid-air while it became clear whether we were to jump into the fire, or not.
Further, the Editor of this service is not a citizen of the United States, is a frequent guest in New York and elsewhere (having visited the country very frequently since 1977) and may be one of the best informed Englishmen in the world concerning the United States. It is clearly not for him to enter into sterile internal debates about issues relating to the new President, especially since it was unclear (for multiple reasons) how Mr Obama would develop in office, and what his priorities might be. The Editor was as disturbed as all other observers about the composition of the new US Administration, but still considered it appropriate not to descend to the mud-slinging level instantly indulged in by certain American observers. If they want to do that, it is their choice: but it is not for them to criticise the Editor for not joining in such activity.
The Editor is well aware of all the issues that have been raised under this heading. However he still considers it appropriate, diplomatic and plainly right to reserve judgement, while at the same time taking note of the fact that the new President of the United States is extremely polite and courteous at all times, which is more than could ever be said of his recent predecessors.
For this reason alone, the Editor considers that he should be allowed to remain the judge of what he may or may not write in the future about President Obama, in whom so much hope has been placed. The fact that Mr Obama has taken the wrong (and probably disastrous, for him) decision in allowing his personnel to place the impossible task of revitalising the decayed Fraudulent Finance sector at the top of his list for action, is a regrettable and prospectively catastrophic mistake.
But the Editor considers that the new President is still entitled, as current Head of State, to proper respect from a 'foreigner', especially a Brit.
And that’s where the matter rests.
LIST OF U.S. STATUTES, SECURITIES REGULATIONS AND LEGAL PRINCIPLES OF WHICH THE CRIMINALISTS, ASSOCIATES AND ALL THE MAIN FINANCIAL INSTITUTIONS REMAIN IN BREACH:
LEGAL TUTORIAL: The Steps of Common Fraud:
Step 1: Fraud in the Inducement: “… is intended to and which does cause one to execute an instrument, or make an agreement… The misrepresentation involved does not mislead one as the paper he signs but rather misleads as to the true facts of a situation, and the false impression it causes is a basis of a decision to sign or render a judgment”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.
Step 2: Fraud in Fact by Deceit (Obfuscation and Denial) and Theft:
• “ACTUAL FRAUD. Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.
• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.
Step 3: Theft by Deception and Fraudulent Conveyance:
THEFT BY DECEPTION:
• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.
• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.
• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.
Source: Black, Henry Campbell, M.A., 'Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.
FRAUDULENT CONVEYANCE:
• “FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.
• “Conveyance made with intent to avoid some duty or debt due by or incumbent or person (entity) making transfer…”.
Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary', Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Conveyance’.
U.S. SECURITIES REGULATIONS OF WHICH INSTITUTIONS
HAVE BEEN SHOWN TO BE IN BREACH [SEE REPORTS]:
• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957
• 97-13 Bank Secrecy Act, Recordkeeping Rule for funds transfers and transmittals of funds, et al.
U.S. LAWS ROUTINELY BREACHED BY THE CRIMINAL OPERATIVES AND INSTITUTIONS:
• Annunzio-Wylie Anti-Money Laundering Act
• Anti-Drug Abuse Act
• Applicable international money laundering restrictions
• Bank Secrecy Act
• Conspiracy to commit and cover up murder.
• Crimes, General Provisions, Accessory After the Fact [Title 18, USC]
• Currency and Foreign Transactions Reporting Act
• Economic Espionage Act
• Hobbs Act
• Imparting or Conveying False Information [Title 18, USC]
• Maloney Act
• Misprision of Felony [Title 18, USC] (1)
• Money-Laundering Control Act
• Money-Laundering Suppression Act
• Organized Crime Control Act of 1970
• Perpetration of repeated egregious felonies by State and Federal public employees and their Departments and agencies, which are co-responsible with the said employees for ONGOING illegal and criminal actions, to sustain fraudulent operations and crimes in order to cover up criminalist activities and High Crimes and Misdemeanours by present and former holders of high office under the United States
• Provisions pertaining to private business transactions being protected under both private and criminal penalties [H.R. 3723]
• Provisions prohibiting the bribing of foreign officials [F.I.S.A.]
• Racketeer Influenced and Corrupt Organizations Act [R.I.C.O.]
• Securities Act 1933
• Securities Act 1934
• Terrorism Prevention Act
• Treason legislation, especially in time of war.
• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.
We are a private intelligence publishing house and have no connections to any outside parties including intelligence agencies. The word ‘intelligence’ on this website and in all our marketing material is used for marketing/sales purposes only and has no other connotations whatsoever: see ‘About Us’ on the red panels under the Notes on the Editor, Christopher Story FRSA, who has been solely and exclusively engaged as an investigative journalist, Editor, Author and private financial and current affairs Publisher since 1963 and is not and never has been an agent for a foreign power, suggestions to the contrary being actionable for libel in the English Court.
