Rothschild’s – some more interesting insights

I have no doubt that Bloomberg belongs to the Rothschild’s as I mentioned a few times earlier they also had bought the early ‘Reuıters‘ and it would be not surprising to see that behind Michael Bloomberg is actually Rothschild’s as they are by any logic of great value for them.. Just imagine what you can achieve with today’s data mining software if you get all the information flow which is run on Bloomberg machines. Literally all trades are given and confirmed through the mailing system of Bloomberg – the same intel which runs high frequency trading can generate all market intelligence one would need to make sure bets.

Excerpt from
http://www.theforbiddenknowledge.com/hardtruth/the_rothschild_bloodline.htm

The Rothschild Bloodline

(The numbers behind some sentences and words (…) are references to the bibliography list at the end of the article of course)

Two neighbor horse farmers came together one day to talk business. The first farmer sold his horse to the second for a quarter million dollars, and then bought it back for about $20 more. He could now advertise his horse (actually worth $20), as a horse he that he had paid over a quarter of a million dollars for.

We can laugh over such schemes. And perhaps we should laugh at ourselves for having been fooled, for if there is one area in life that exceeds the religious in deception, and touches all of us it is the financial. What else can we do about it except laugh? The famous poet Lord Byron describes the archtype of our two farmers in 1823, Who keeps the world, both old and new, in pain Or pleasure? Who makes politics run glibber all? The shade of Bonaparte’s noble daring?

Jew Rothschild and his fellow-Christian, Baring. You’ll learn about some other ,,neighbor horse traders” in this chapter too.

ROTHSCHILD TALKS ABOUT THEIR DYNASTY

Lord Rothschild in his book The Shadow of a Great Man quotes a letter sent from Davidson on June 24, 1814 to Nathan Rothschild, ,,As long as a house is like yours, and as long as you work together with your brothers, not a house in the world will be able to compete with you, to cause you harm or to take advantage of you, for together you can undertake and perform more than any house in the world.”(1) The closeness of the Rothschild brothers is seen in a letter from Saloman (Salmon) Rothschild to his brother Nathan on Feb. 28, 1815, “We are like the mechanism of a watch: each part is essential. (2) This closeness is further seen in that of the 18 marriages made by Mayer Amschel Rothschild’s grandchildren 16 were contracted between first cousins.

VISITING THE NATION THE ROTHSCHILDS BUILT

In 1974, in the summer after the Yom Kippur War this Author toured Israel, and got the chance to personally visit many of the buildings like the Knesset that the Rothschild’s money has built. The Knesset is the Israeli equivalent to our Congress’s Capitol building. One of the Rothschilds in his will left money for ongoing building projects in Israel, and the Rothschilds are honored with a Street named after them in Jerusalem.

The people of Germany and Turkey have been very close. I can recall meeting Turkish ,,Gastarbeiter” (guestworkers) in Germany. The reader will remember that Turkey fought on Germany’s side in W.W. I. A few powerful Jews, including the Rothschilds were responsible for the wording of the Treaty imposed on Germany that ended W.W. I (3) The treaty gave the Rothschilds the German owned railway rights in Palestine (which had been part of the Turkish Ottoman Empire), thus paving the way for the Rothschilds to have a sure leverage to dictate policy concerning Palestine. The Rothschilds had made loans to Turkey which amounted to almost one hundred million pounds. When the Turkish government collapsed after W.W. I because they were on the losing side, the Rothschilds had a claim on Palestine because of those unpaid Turkish loans.⁴ The British government followed the dictates of the Rothschilds. The British were given a mandate over Palestine, and the Rothschilds were able to through their proxies in the British government, to create the steps that led to the nation of Israel.(5)

THE ROTHSCHILDS AS “PROPHETS”

One item stands out as a person listens to the International Bankers and reads their books. They believe money is what makes the world go round. If you have money, you can do anything. Money is “God”, and it is worshipped and served. Even after these families accumulate more than can be spent, these devotees continue selling their souls for this false but powerful god. The great poet-philosopher Heinrich Heine (a Banker’s son) said, “Money is the god of our time, and Rothschild is his prophet.”⁶ Following the cue of the Rothschilds, Heinrich Heme, a Jew, signed his name by drawing a Seal of Solomon.⁷ Amsel Rothschild is reported to have said, “Give me control of the economics of a country; and I care not who makes her laws. (8) Today his descendents meet twice daily in London to dictate to the world what the world price of gold will be. They also dictate what the “Federal Reserve System” will do with America’s finances.

ANOTHER GOD TOO

According to eye-witnesses, who were prominent enough to visit one of the British Rothschild homes, the Rothschilds worship yet another god too, Satan. They set a place for him at their table.(8a) The Rothschilds have been Satanists for many generations. The Rothschilds are an important part of the history of the Seal of Solomon (also known as hexagram, Magen David, six-pointed star, Star of David.) The Seal of Solomon, the hexagram, was not considered a Jewish symbol before the Rothschilds began using it.⁹ Throughout the Middle Ages the Seal of Solomon had been used by Arab Magicians, Cabalist Magicians, Druid witches and Satanists. One of the few ancient uses of the symbol was on the floor of a 1,200 year old Moslem Mosque found where Tel Aviv is today.¹⁰ In the twelve century an Ashkenazic Jew Menahem ben Duji, who thought he was the Messiah, used the magical symbol.¹¹ Because the Rothschilds were Satanists they adopted this powerful magic symbol in 1822 for their coat- of-arms.

The name they adopted for their family actually comes from the fact that in the 17th century Mayer Amschel Bauer began hanging out a red hexagram in front of their house to identify it. Mayer Amschel then decided to take the name red-schield (Rothschild in German) after the red Seal of Solomon that they used. Alice Bailey in A Treatise On White Magic, p. 412, claims that the Hierarchy has a special group which she calls “the financial group” ,,controlling all that can be converted into energy, and constituting a dictatorship over all modes of intercourse, commerce and exchange.” According the Luciferian Alice Bailey, the “financial group” is the latest group directed by the Hierarchy. In 1836 Zevi Hirsch Kalischer approached Rothschild and proposed Rothschild buy all of Erez Israel. It took many years for the Rothschilds to finally create Israel. The Rothschilds have been a primary force behind the creation of Israel, and so it is appropriate that the nation carries their magical Seal of Solomon as the state logo. The Ultra-orthodox Jews in Israel will not serve in the Israeli army because they know that Almighty God was not behind the creation of modern Israel, but rather the rich ungodly apostate Jews. They refuse to serve the ungodly. They are more wiser than men like Jerry Falwell who run around proclaiming Israel is God’s nation. Men like Falwell are the type that this Author finds reference to repeatedly in Jewish documents that speak of their power within the Fundamentalists. God is ultimately in charge, he has allowed Hitler to come to power, Stalin to come to power, and the Rothschilds to come to power. In the same sense that God rules over and blessed Stalin’s Russia, he rules over America and Israel.

To twist scriptures about God seating the rulers and then to apply them to bless one Satanic secular communist nation and not another is inconsistent and not correctly using the Word of Truth. Some people object that the conspiracy of Power is labelled Jewish rather than Satanic by certain concerned citizens. This objection is valid– however, will these objectors then take the obvious next step and admit the nation of Israel which the Rothschild’s created is Satanic and not Jewish? But then who knows precisely why people do what they do? If you ask someone why he does something, he will give you one answer today, another tomorrow, and another the next day. Does he do what he does for a real reason, or a single motive? Perhaps to label the Power as only Satanic or only Jewish or only Masonic is to neglect the personal human dimension. This personal human dimension is godless. Being godless it fills that void, by pretending its men are gods. This brings us right back to the Gnostic religions and Satan. Most Jewish people do not concern themselves with learning the occultic significance to their treasured Magen David (Star of David). King David did not have anything to do with the hexagram, although his son Solomon did when he began worshipping Ashtoreth (star, also known as Astarte, Chiun, Kaiwan, Remphan, and Saturn).¹² Solomon built altars to Star (Astarte, aka Ashtoreth). The god Saturn is associated with the Star but both Saturn and Astarte also been identified with a number of other names. Saturn is an important key to understanding the long heritage this conspiracy has back to antiquity. The city of Rome was originally known as Saturnia or City of Saturn. The Roman Catholic church retains much of the Saturn worship in its ritual. Saturn also relates to Lucifer.’¹³ In various occult dictionaries Saturn is associated with evil. Saturn was important to the religion of Mithra, and also the Druids.

CO-MASTERS OF THE WORLD –connections to JWs, Mormons, and Judaism

It has been said all roads lead to Rome. For this book, it could be said all paths of investigation lead to the Rothschilds. Charles T. Russell, in a 1891 letter to Baron (Lord) Rothschild, mailed from Palestine, outlined possible courses of action that could be taken to establish the Jews in Palestine. Russell’s letters praised the Rothschild’s money which established Jewish colonies in Palestine. Russell writes Rothschild, ,,What is needed here, therefore, next to water and cleanliness, is a good government which will protect the poor from the ravenous and the wealthy. Banking institutions on sound bases, and doing business honorably, are also greatly needed ” Russell continues, “May the God of Jacob direct you, my dear Sir, and all interested with you in the deliverance and prosperity of Israel, and blessed will they be who, to any extent, yield themselves as his servants in fulfilling his will as predicted.”(14) When the Mormon Church needed financing in the late 19th century, they went to Kuhn, Loeb Co.¹⁵ To explain the Rothschild’s control of Kuhn, Loeb Co. here is some background information. The method that the House of Rothschild used to gain influence, was the same that Royalty had used for centuries, marriage. The Rothschild children, girls and boys, have had their spouses chosen on the basis of alliances that would benefit the House of Rothschild, but since consolidating world power they generally have married cousins these last two centuries.’¹⁶ Jacob Schiff grew up in the house that the Rothschild’s had at 148 Judengasse, Frankfurt. Jacob Schiff came to the United States with Rothschild capital and took over control of a small jewish banking concern founded by two Cincinnati dry goods merchants Abraham Kuhn and Solomon Loeb. He even married Soloman’s daughter. In 1885, Loeb retired, and Schiff ran the Kuhn, Loeb Co. for the Rothschilds until 1920 when he died.¹⁷ During Russell’s and Brigham Young’s day, Lord Rothschild was considered the “lay leader of world Jewry.”¹⁸ Edmund Rothschild was President of the Jewish Colonization Assoc,¹⁹ which was a major Zionist group. Amselm Rothschild indicated that his grandfather Amschel Mayer Rothschild had insisted in Clause 15 of his will to his children, “may they and their descendants remain constantly true to their ancestral Jewish faith.”(20) However, the will has been secret and there is no way of knowing what it says.

The Rothschilds have not remained true to the Orthodox faith. If this was actually what Clause 15 said then something is amiss. The Jewish world has showered the Rothschilds with praises, “The Rothschilds govern a Christian world. Not a cabinet moves without their advice. They stretch their hand, with equal ease, from Petersburg to Vienna, from Vienna to Paris, from Paris to London, from London to Washington. Baron Rothschild, the head of the house, is the true king of Judah, the prince of the captivity, the Messiah so long looked for by this extraordinary people… .The lion of the tribe of Judah, Baron Rothschild, possesses more real force than David–more wisdom than Solomon.” (21) The Prieure de Sion-the Elders of Sion²² also relates to the Rothschilds who are reported to serve on a jewish council of Elders of Sion.²³ The Rothschilds have “helped” the Jewish people the Rothschild’s own way. For those who admire stingyness, the Rothschilds will be greatly looked up to. For instance, the extent of James Rothschild’s charity in France to poor Jews was 5 francs (the equivalent of $1). Their dynasty has destroyed honest Jews along with Christians. Today, few dare criticize the Rothschilds.

CO-MASTERS OF THE WORLD–connections to secret societies

The Rothschilds had played a major role in the Bavarian Illuminati, (25) and it is known that a least one of the sons of Amsel was a member. As the reader remembers, Amsel placed his sons in the major European capitals, where they each set up the principal banking houses. By their own secret intelligence service and their own news network they could outmanouver any European government. (26) The large amounts of voluminous correspondence by Rothschild couriers attracted attention, (27) but no one ever stopped their personal intelligence and mail services. After the Bavarian illuminati were exposed, the central occult power over the European secret societies shifted to Carbonarism a.k.a. the Alta Vendita,(28) led by another powerful Rothschild, Karl Rothschild,²⁹ son of Amschel. In 1818, Karl participated in a secret document that was sent out to the head-quarters of Masonry from the Alta Vendita.

The Masons were quite distressed when a copy of this was lost, and offered rewards to anyone who could return the lost copy. It was originally written in Italian. Its title translates ,,Permanent Instructions, or Practical Code of Rules; Guide for the Heads of the Highest Grades of Masonry.”(30) The Masonic reference book 10,000 Famous Freemasons, Vol. 4, p.74, indicates two other sons of Amschel were Masons, James Meyer Rothschild, and his brother Nathan Meyer Rothschild. James Rothschild in Paris was a 33 degree Scottish Rite Mason, and his brother Nathan in London was a member of the Lodge of Emulation. And Jewish Freemason Katz indicates Solomon Meir Rothschild, a third member of the five brothers, was initiated into Freemasonry on June 14, 1809.(31) The Rothschilds became powerful within Freemasonry. We find the Saint-Simonians, the occult religious millenialist forerunners of communism, praising Baron de Rothschild in their magazine Le Globe, “There is no one today who better represents the triumph of equality and work in the nineteenth century than M. le Baron de Rothschild… .Was this Jew born a millionaire? No, he was born poor, and if only you knew what genius, patience, and hard work were required to construct that European edifice called the House of Rothschild, you would admire rather than insult it.” Lionel de Rothschild (the de was added by the French Rothschilds) was involved with the first communist Internationale. The Mason Mazzini who helped start communism praised Rothschild, “Rothschild could be King of France if he so desired.”³² Adoiphe Cremieux, was a french Jewish Mason (see chap. 1.4 for his credentials). The Rothschilds gave at least £ i ,000 to Cremieux to go to Damascus with Salomon Munk, and Sir Moses Montefiore to win the release of Jews imprisoned there, and to convince the Turkish Sultan to declare the charges of ritual murder false.³³ According to the three Jewish authors of Dope, Inc. the B’nai B’rith was a spin-off of the Order of Zion and was organized as a ,,covert intelligence front” for the House of Rothschild. It is highly probable that the B’nai B’rith was used as a Rothschild intelligence cover. The Rothschilds are prominent in the Bilderbergers too. The Rothschilds were closely related to the Council of Foreign Relations (CFR).

Although many people today would not view the CFR as a secret society it was originally set up as part of a secret society and it was kept secret for many years, in spite of its awesome power. Carroll Quigley, professor of International Relations at the Jesuit Georgetown University, exposed the Round Table Group with his book Tragedy and Hope.(34) The Rothschilds supported Rhodes to form De Beers. (35) Later, Rhodes made seven wills which established a secret society modelled after the Jesuits and Masons to help bring in a One-World- Government centered upon Britain, and the Rhodes Scholarships.³⁶ The inner group was established in Mar. 1891 and consisted of Rhodes, Stead, Lord Esher (Brett), and 33* Mason Alfred Milner.(33bb) A secondary circle of “potential members of the Circle of Initiates” consisted of the Jew Lord Balfour, Sir Harry Johnson, Lord Rothschild, Lord Grey and others. Initially, Lord Rothschild was part of the inner group of Rhode’s secret society, but was replaced by his son-in-law Lord Rosebury who wasn’t as conspicuous.³⁷ The Fabian Socialists dominated the staff at Oxford when the Rhodes Scholars began arriving. These scholars then received indoctrination and preparation to become part of an international socialist New World Order.(38) The Round Table Group developed from the inner executive circle of Rhode’s secret society. The outer circle was established after the start of the 20th century. The Round Table Group was extended after W.W. I by organizing a front organization the Royal Institute of International Affairs. The Council of Foreign Relations was the American part of this front. The inner circle continues to direct the outer circle and its two front organizations RIIA and CFR. The CER in turn set up a number of fronts including the Institute of Pacific Relations (IPR).

CO-MASTERS OF THE WORLD–management of the Catholic and Czars’ wealth and the capture of the Orthodox Church’s wealth.

Early in the 19th century the Pope came to the Rothschilds to borrow money. The Rothschilds were very friendly with the Pope, causing one journalist to sarcasticly say “Rothschild has kissed the hand of the Pope…Order has at last been re-established.”³⁹ The Rothschilds in fact over time were entrusted with the bulk of the Vatican’s wealth. The Jewish Ency., Vol. 2, p.497 states, ,,It is a somewhat curious sequel to the attempt to set up a Catholic competitor to the Rothschilds that at the present time (1905) the latter are the guardians of the papal treasure.” Researcher Eustice Mullins writes that the Rothschilds took over all the financial operations of the worldwide Catholic Church in 1823.(40) Today the large banking and financial business of the Catholic Church is an extensive system interlocked with the Rothschilds and the rest of the International Banking system.

The great wealth of the Russian Czars was entrusted to the Rothschilds, $35 million with the Rothschild’s Bank of England, and $80 million in the Rothschild’s Paris bank. The Rothschilds financed the Russian Revolution which confiscated vast portions of the Orthodox Church’s wealth. They have been able to prevent (due to their power) the legitimate heirs of the Czars fortune to withdraw a penny of the millions deposited in a variety of their banks. The Mountbattans, who are related to the Rothschilds, led the court battles to prevent the claimants from withdrawing any of the fortune. In other words, the money they invested in the Russian Revolution, was not only paid back directly by the Bolshevists in millions of dollar of gold, but by grabbing the hugh deposits of the Czars’ wealth, the Rothschilds gained what is now worth over $50 Billions.(41)

CO-MASTERS OF THE WORLD–CONTROL OVER SATANISM & WITCHCRAFT

Chapter 2.11 gives the names of a Witchcraft Council of 13 which is under Rothschild control and in turn issue orders to various groups. One of the purest form of Satanism can be traced to the Jewish Sabbatain sect and its Frankist spinoff. The leaders of this up to the Rothschilds were:

Sabbatai Zevi (1626-1676)

Nathan of Gaza (16??-?)

Jacob Frank (1726-1791)

Rothschilds

Three connections between Satanism, evil, and money.

Money naturally attracts itself to evil. For instance, if a woman prostitutes herself she may receive a great sum of money, but who will pay her for keeping her virginity or her dignity? If you are a hit man a large amount of money is yours if you kill your target, who will pay you if you would miss your target?

Second, evil men believe in where there is a will there is a way, and they are willing to sell their souls for their God money. They will employ evil to gain money.

While most people are quite aware of these last two connections, a third may likely have escaped their attention. Thirdly, the principle group of men who cranked up International Banking were Satanists from the beginning. These Satanists now are the ones who run the Federal Reserve and are responsible for the creation of U.S. Federal Reserve notes. Just having total control over the supply of U.S. paper money almost gives them leverage over the world’s finances, without mentioning they control the world bank. It is no accident then, that once they established world financial control, they would do all in their power to divide and conquer and destroy both the Christian and the Moslem faith in God. These powerful Bankers relate to faith in God as Cain related to his brother Abel. That they may be related to the Jewish people, does not mean they have the Jewish people’s best interest at heart. Initially Sabbetai Zevi was rejected by many Jews. His sect gained momentum in second half of the seventeenth century in southeastern Poland.(42) In 1759-60, 500 Jewish Sabbateans ,,converted” to Christianity.⁴³ In 1715, 109 of the 415 Jewish families in Frankfurt were engaged in moneylending. The rest were merchants of various kinds. The concepts that Satanism holds to were a natural shoe in to justify for many of these Jewish bankers the type of behavior they were engaged in.” (44)

LONG-STORY SHORT

Many divisions and battles between religious elements in the world have been encouraged and supported by the Power’s wealth. Unfortunately, many have been fooled into thinking that being devout and faithful to God is the source of religious fighting. In some areas of the world, Moslems, Christians, and others have gotten along fine for centuries. Religious tensions do spring to some degree from within the religions themselves, but the fuel to keep those fires burning and to light up conflicts often come from the Power’s wealth. An obvious example is the Iran-Iraq war.

CO-MASTERS OF THE WORLD–CONTROL OVER W.W. I TREATY

When Germany fell, not only did Rothschild agents draft the treaty, prepare the idea of the League of Nations, but Max Rothschild was one of 11 men who took control over Bavaria. Max Rothschild was a Freemason in Lodge No. 11, Munich, Germany.

CO-MASTERS OF THE WORLD–connections to MI5, Rockefellers, J.P. Morgan, CFR, et. al.

Victor Rothschild, who worked for J.P. Morgan & Co., and was an important part of MI5 (British Intelligence). Victor Rothschild was also a communist and member of the Apostles Club at Cambridge.⁴⁵ Lord Rothschild was one of the original members of Rhode’s Round Table group which developed into the CFR. It was the Rothschilds who had financed Cecil Rhodes, beginning in Africa. The Rothschilds’ have several agents which their money got started and who still serve them well, the Morgans and the Rockefellers. The Rockefellers were Marrano Jews. The original Rockefeller made his money selling narcotics, (they weren’t illegal then). After acquiring a little capital he branched out in oil. But it was the Rothschild capital that made the Rockefeller’s so powerful. “They also financed the activities of Edward Harriman (railroads) and Andrew Carnegie Steel.”(46)

CO-MASTERS OF THE WORLD–Power within Christendom

The Rothschilds also wielded much influence and power not only in Secret Societies, but also in Christendom’s churches. The Salvation Army under the suggestion of the Rothschilds adopted the Red Shield (Roth-red Schild-shield) for their logo. One history of the Rothschilds remarks, “The Rothschilds had rapidly propelled themselves into a position of immense financial power and political influence. They were an independent force in the life of Europe, accountable to no one and, to a large extent, reliant on no one. Popular lampoons depicted them as the real rulers of Christendom…”(47) Some of the Rothschilds have been involved in the campaign to loosen public morals. The first executive Secretary of the National Student Forum was John Rothschild. This National Student Forum changed its name like articles of clothing. Speaking about clothing, one of the aims of this Socialist group was to promote public nudity, and free love. This organization had the following constituent groups Radcliffe Liberal Club, Union Theological Seminary Contemporary Club, Yale Liberal Club”(48) to name just a few. A further development of this was the Youth Peace Federation which consisted of the League of Youth of Community Church, Methodist Epworth League, NY District, Young Judea, and Young People’s Fellowship of St. Phillip’s Parish⁴⁹ to name a few. American religious men have ties to the Rothschilds especially through their various agents.

Harry Emerson Fosdick, who was Pastor of Rockefeller’s church was also among the Presidents of the Rockefeller Foundation. John Foster Dulles, CFR, was chairman of the board of the Rockefeller Foundation, and married a Rockefeller, Janet Pomeroy Avery. Remember John Foster Dulles was an important Federal Council of Churches of Christ official. (See chap. 2.9) Every road leads back to the Rothschilds. There are more items than what have been mentioned above linking the Rothschilds to the various tenticles. Each of the various tenticles that conspiracy theorists have put forth,–the Jews, the Masons, the Intelligence Communities, the International Bankers, the Prieure de Sion, the Catholics, the Trilateral commission, the CFR, the New Age, the Cults– each ties back to the Rothschild’s power.

EXTENT OF ROTHSCHILD POWER

According to one source “it was estimated that they controlled half the wealth of the world.”(50) The Federal Reserve Bank of New York was controlled by five banks which owned 53% of its stock. These five banks were controlled by Nathan M. Rothschild & Sons of London. Control over the U.S. Fed is basically control over the world’s money. That fact alone shows how immense the Rothschild Power is. If one examines who has been appointed to head the Fed, and to run it, the connections of the “Federal” Reserve System to the Rothschilds can further be seen. Another private enterprise using the name Federal that the Rothschilds also direct is Federal Express. Any one else might be taken to court for making their businesses sound like their are government, not the Rothschilds. It is appropriate for them to appropriate the name of Federal, because by way of MI6 via the CIA they instruct the U.S. government. Senators are bought and paid off by their system, as investigators of the BCCI are discovering. The Rothschilds have been intimately involved in witchcraft and the Illuminati since its early known history. The Kaiser of Germany seems to refer to them when he said, “the magic powers of money as wielded by the Lord of Lucre are powers of Black Magic at its blackest.”⁵¹

If only half of the wealth is controlled by the Rothschilds, it indicates that if they are to be part of the world’s rulership, they must have allies.

ALLIES

The Rothschilds and Rockefellers are only two of thirteen controlling families of the Illuminati. (52) Two Jewish families that appear to be prominent are the Oppenheims and the Oppenheimers. A. Oppenheim was situated in Cologne. The Oppenheimers were early members of the Bavarian Illuminati. The Bund der Gerechten (League of the Just) was an illuminati front run mainly by Jews who were Satanists. This Bund financed in part by the Rothschilds paid the Satanist and Mason Karl Marx to write the Communist Manefesto. The Jew Gumpel Oppenheim was in the inner circle of the Bund. His relative Heinrich Oppenheim masterminded the communist revolution of 1848 in Germany. The Communist Party’s official histories even accept the Bund as the predecessor of Communism.

The Oppenheimers apparently are close to the Rothschilds. J. Robert Oppenheimer of the CFR was exposed as a communist. Harry Oppenheimer, an international banker, is chairman of the Jewish De Beers world-wide diamond monopoly, and chairman of the Anglo-American Corp. Oppenheimers can be found in important financial positions in the U.S. They help run around 10 large foundations, including the Oppenheimer Haas Trust of NY for the care of needy Jewish children.

The Jewish Ency. Vol. 2, p. 496 indicates other Jewish families “adopted the Rothschild plan.” These were the Lazards, Sterns, Speyers, and Seligmans. The Rothschild plan was to place family members in the 5 largest European capitals to coordinate their activities. One of Germany’s largest magazines is the Stern, and Ernst Stern is second-in-command of the World Bank.”(53) The Jewish families that established the Frankfurt Judenloge (this was the Masonic lodge the Rothschilds belonged to in Frankfurt) included the Adlers, Speyers, Reisses, Sichels, Ellisons, Hanaus, Geisenheimers, and Goldschmidts. Isaac Hildesheim, a Jew who changed his name to Justus Hiller is credited as being the founder of this Frankfurt lodge. Michael Hess, principal of the Reformed Jewish school Philanthropin was an important figure in the lodge too, as was Dr. Ludwig Baruch (later Borne) who joined in 1808. Most of these Frankfurt Jewish Freemasons engaged in commerce.(54) Those Freemasons from 1817-1842 were the leaders of the Frankfurt Jewish community.⁵⁵ A gentile Mason in Frankfurt Johann Christian Ehrmann began warning the German people that the Frankfurt Jewish Masons wanted a world republic based on humanism. In 1816 he came out with a warning pamphlet Das Judenthum in der M[aurere]y (The Jews in Masonry). A powerful ally of the world’s jewry can be seen beginning with men like Oliver Cromwell, who was considered a Mason.

Cromwell was financed by Jews, and helped the Jews gain power in England. Cromwell was willing to go along with the Jews, because he became convinced of British Israelism. Since the core of the conspiracy of power is Jewish, the attitude of those allied with it hinges on their attitude toward the Jewish people.

The religious idea that the British people are descended from the tribes of Israel doesn’t automatically place people into the camp of the conspiracy. Some of the British-Israelites realize that the so called Jewish people in general have no claim over the promises of God. For that reason, they realize that it is not the Christian duty to bow and scrape at their every move. When Christians can be arrested in Israel and abused, and Christians will not even stand up for their own kind, we can see how much hold the idea of the “Chosen Race” theory has over Christendom. Some of the British Israelites such as the Mormons, the old New England wealthy families such as make up the Order, some Masons and New Agers, and the non-Jewish members of the Priuere de Sion are collaborating with the One-World-Power. The anglican church which is run by the Freemasons is strongly British Israelistic.

SORTING OUT THE VARIOUS IDENTITY GROUPS

In contrast, a hodge-podge of groups which are opposed to the conspiracy like some Neo-Nazi groups, and various Churches unrelated with them are also believers in British Israelism. These various groups are sometimes all lumped together as the “Identity” movement, which is misleading because of their vast differences. It is important to diferentiate between those groups that are trying to approach things from a Christian perspective and place themselves under the authority of God, and those who are setting themselves up under the New Order’s authority, or under their own authority.

CO-MASTERS OF THE WORLD- The Media

Eustice Mullins has published his research in his book Who Owns the TV Networks showing that the Rothschilds have control of all three U.S. Networks, plus other aspects of the recording and mass media industry. It can be added that they control Reuters too. From other sources it appears CNN, which began as an independent challenge to the Jewish Network monopoly, ran into repeated trickery, and ended up part of the system. Money from B.C.C.I., (B.C.C.I. has been one of the New World Orders financial systems for doing its dirty business such as controlling Congressmen, and is involved with INSLA, the Iran-Contra Scandal,

Centrust, and other recent scandals) which has tainted so many aspects of public power in the U.S. has also been behind CNN. Perhaps nothing dominates the life of some Americans as does the television. Americans sit themselves before the television set and simply absorb what it projects to them. On a day to day basis the biggest way the Rothschilds touch the lives of Americans are the three major networks which are under Rothschild direction. To illustrate this we will examine who run the networks. This list is not current, and no attempt was to provide that. The length of writing a book insures that some material will be dated anyway.

NBC

NBC DIRECITORS

ROTHSCHILD CONNECTIONS

OTHER CONNECTIONS

John Brademas

Dir.Rockefllr. Fdtn. chrm

Fed. Reserve Bank of N.Y. which
controls all other Fed.R.Bks. Humanist of
the Yr 1978

Cecily B. Selby nat. dir. Girl Scouts (the occult is now
part of the to Girl Scout program), dir.
Avon Products and Loehmann s (dresses).
Husb. James Cole, pres. Bowdoin College

Peter G. Peterson frmr head of Kuhn-Loeb Ex-Sec. of commerce

Robert Cizek dir. First City Bancorp dir. RCA, chairmn Cooper Industries

Thomas O. Paine Pres. of Northrup- large defense contractr. Dir.

of Strategic dir of Inst. of Studies, various

munitions assoc.

Donald Smiley dir. of several Morgan Firms dir. of Ralston- Purina, Irving Trust, Metro-Life and U.S.

Steel and chrm of Macy Co.

David C. Jones Pres. Consolidated Contr., dir. U.S. Steel, Kemper

Insur.

Thornton Bradshaw, dir. Aspen Inst. of Humanistic Studies, Atlantic-Richfield

dir. Rock. Bros. Fund

Oil, Champion Paper Co., chairman of RCA

Brandon Tartikoff

(head of NBC entertainment) Jewish

CBS

Harold Brown, Jewish. ex-Sec. of Air Force and ex-Sec. of Defense.

Ex. dir. Trilat. Com.

Roswell Gilpatric, dir. Fed. Res. Bk.NY.

Kuhn Loeb firm C.S.& M

Henry B. Schnacht, dir. Chase Manhattan, dir AT&T, chnmn Cummins

CFR, Brookings Inst

Engine Co., Committee for Economic Develop

Michel C. Bergerac, chrmn. Revlon

dir. Manufacturers

James D. Wolfensohn

frmr.hd. J. Henry Schröder Bank

Walter Cronkite

Newton D. Minow

dir. Rand Corp

Franklin A. Thomas, head of Ford Found.

Marietta Tree, dir. Winston Churchill Found., dir. Salomon Bro., Foundation & dir., dir. U.S. Trust, granddgtr of fdr. of Groton, hsbd in Br. Intell.,

assoc. w/ Ditchlcy

THE ROTHSCHILD’S HISTORY BY A JEWISH WRITER RELATED TO THE ROTHSCHILDS

Jewish writer Anka Muhlstcin wrote a book Baron James The Rise of the French Rothschilds. I prefer paraphrase and make short quotes from her book, because I am trying to document for the reader the mindset and history of thc Rothschilds. Anka Muhlstein has nothing against the Rothschilds, so it will be easier for the reader to accept what shc says about them than from me. I can’t require the reader to read her book, but I can try to summarize some of the appropriate thoughts. Other books also relate many of the things Anka does, but again if I write a footnoted article, it will not carry the weight as my paraphrase will. The reader is recommended to read the book first hand if he has the time and is interested in the details of James’ life. The Jews in the 18th century were restricted to living in Ghettos. Mayer Amschel Rothschild lived in the Frankfurt ghetto. (p.22) The Jews were repressed by outsiders. (p.23) They lived in geographically isolated and self-contained communities (p. 24). The Jewish communities in Europe used a secret relay system between all the Ghettoes. Hebrew characters were one effective code. (p.24) Because of the persecution and repression, the Jewish communities were very tight- knit and highly organized. (p.23) They were deeply hostile to the Christian people. Christians had restricted their own people from money-lending with interest, so lending money on interest had become a Jewish enterprise. The German princes of Thurn and Taxis in the 16th century initiated a postal service.

Mayer Amschel loaned them money. (p.21) “Certainly they [the Rothschilds] discovered the latitude that the Thurn and Taxis allowed themselves in unsealing letters, possibly divulging their contents, and according to their own interests, delaying or accelerating delivery. “(p.22) When it profited Mayer Amschel, he would hire Christians, but in general his business and banking were conducted by his close knit family. For instance Mayer Amschel hired a young Christian woman to write his letters for him. (p. 25) Mayer Amschel Rothschild and his family were wholeheartedly Jewish. (p.27) Mayer Amschel Rothschild picked his sons’ wifes for the business gains the wives would bring the family. The oldest son was not happy with this (actually he was bitter because he was denied marriage to the woman he loved), but he complied with his father’s choice. (p.26) Amschel’s daughters all married bankers–in Worms, Sichel, and Beyfus. (p.26) Mayer had ten children and they were all employed in the family business. (p.25) The Jews were taught from childhood up, that the Christians were to blame for all their woes, and that the Christians were to be feared and detested. (p.24) Mayer Amschel had secret, underground passages. (p.22) His carriage was honey-combed with secret drawers. (p.27) The Napoleonic War greatly helped the Rothschild business. (p. 27) Rothschild even outsmarted Napoleon–because the Rothschilds had such good connections. (p.38) The Rothschilds smuggled during the English blocade of Napoleon’s Europe, and made millions. (p.33) “The Rothschilds changed course constantly during this period, always manuevering to avoid any kind of political commitment. “(p.34) One of the things Mayer Amschel set up, was to disperse his 5 sons to the major capitals of Europe. Anka attributes the respectibility of Jewish money lending to the help it gave merchants and entrepreneurs. [See chap. 3.2 -this Author’s view is that merchants had been borrowing for centuries prior to interest taking becoming acceptable by society in the 19th century.

It was greatly in part due to who owned and controlled the major newspapers in the 19th century--Jews and Masons--that led the public to change.] “The obligation to reimburse a loan and to pay interest became less onerous to men whose affairs had flourished as a result of the borrowed money. The Jewish lender ceased to be a bloodsucker; often, indeed, he became an associate of the borrower.” (p.31) [The Bible says a borrower is a slave to the lender, hardly an association to be desired.] The business of financing Monarchs was lucrative. The Rothschilds had developed several traits in the ghetto that made their family hard to stop. “The great gift the Frankfurt ghetto bestowed upon him [James Rothschild] was adaptibility, a quality matched by the driving force of his ambition, his prodigious energy, tremendous powers of concentration, and determination to get even [with Christians]. James set out to make his place in the world.” (p.40) The five Rothschild brothers, each in the five major European capitals set up their own private courier system which was faster than the regular mail. (p.47) The Rothschilds had news whether political or economic faster than anyone else including the monarchs. “Thus the Rothschilds had news before anyone else, including ministers [govt.]; they also understood how to make use of it.” (p.47) [Somewhat akin to how money could be made off of knowing the future.] The Rothschilds nomal correspondence to each other was in code.(p.46) Their world was one of finance, politics and secrecy. In the anti-Napoleonic time period, the Rothschilds increased their wealth ten-fold. (p.47) “…James. He enjoyed, moreover, a rock-solid strength and stability, built up by his family, that family simultaneously closed tight like a fist, united by mutual confidence and an invisible wall of secrecy, yet wide open to the outside world. Such was the cohesion of the Rothschilds that the removal of one or more of them left no gap in their common defenses.”

The Rothschilds carried out espionage with their own intelligence service, and other questionable subversive activities but none of these could be tracked. “Whenever Mayer Amschel and his sons were on the verge of being caught out, some highly placed person stepped in and stopped the investigation.” (p.36)

The made their money doing technically illegal activity. The original large sum of money made was to take the Elector of Hesse’s large sum and instead of investing it into government bonds as directed–to put it to use at investments of higher returns, and giving the elector the return from the government bonds. Anka writes, “The Elector was never the wiser, but even if he had been, he could hardly have complained of disobedience.” (p.34) In summary, the Mafia-like closeness of the Rothschild family, along with their tactic to situate themselves in all the major capitals, along with their own quick secret personal news/intelligence/mail service gave them the contacts and the power to manipulate all kinds of business opportunities.

True words from an unexpected source

The Obama admin has not solved any systematic problems just pumped good taxpayers money into the system and made banks raise capital which they needed to do anyway – since they were almost all bankrupt. That’s why I find this exit talk very confusing whenever the central banks pull out the plug the system will collapse there is no room for such insanity as they sit on phony balance ‘cheats’ who deteriorate on a daily basis. The OTC exposure of the derivatives is still far bigger than the capital of the banks ( its actually 10 times global GDP) can stem when the next wave comes which is just a matter of time.
Geithner is a puppet of the financial industry and the Rothschild’s who dances to their tune and will never go against them or due what is necessary – just the fact that he hired a Goldman lobbyist to his chief of stuff speaks volume.

Excerpt
Mobius Says Derivatives, Stimulus to Spark New Crisis (Update2)

By Bloomberg News

July 15 (Bloomberg) — A new financial crisis will develop from the failure to effectively regulate derivatives and the extra global liquidity from stimulus spending, Templeton Asset Management Ltd.’s Mark Mobius said.

“Political pressure from investment banks and all the people that make money in derivatives” will prevent adequate regulation, said Mobius, who oversees $25 billion as executive chairman of Templeton in Singapore. “Definitely we’re going to have another crisis coming down,” he said in a phone interview from Istanbul on July 13.

Derivatives contributed to almost $1.5 trillion in writedowns and losses at the world’s biggest banks, brokers and insurers since the start of 2007, according to data compiled by Bloomberg. Global share markets lost almost half their value last year, shedding $28.7 trillion as investors became risk averse amid a global recession.

The U.S. Justice Department is investigating the market for credit-default swaps, Markit Group Ltd., the data provider majority-owned by Wall Street’s largest banks, said July 13.

Mobius didn’t explain what he thought was needed for effective regulation of derivatives, which are contracts used to hedge against changes in stocks, bonds, currencies, commodities, interest rates and weather. The Bank for International Settlements estimates outstanding derivatives total $592 trillion, about 10 times global gross domestic product.

Looming Crisis

“Banks make so much money with these things that they don’t want transparency because the spreads are so generous when there’s no transparency,” he said.

A “very bad” crisis may emerge within five to seven years as stimulus money adds to financial volatility, Mobius said. Governments have pledged about $2 trillion in stimulus spending.

The Justice Department’s antitrust division sent civil investigative notices this month to banks that own London-based Markit to determine if they have unfair access to price information, according to three people familiar with the matter.

Treasury Secretary Timothy Geithner last week urged Congress to rein in the derivatives market with new U.S. laws that are “difficult to evade.” He said strong capital requirements were the key.

Geithner repeated President Barack Obama’s call to force “standardized” contracts onto exchanges or regulated trading platforms, and regulate all dealers.

Credit Freeze

The plan to regulate the derivatives market is part of a wider overhaul of financial industry rules meant to prevent any possibility of a repeat of last year, when the collapse of Lehman Brothers Holdings Inc. and American International Group Inc. froze credit markets and worsened the global recession.

In the Senate, Agriculture Committee Chairman Tom Harkin, an Iowa Democrat, is pushing for legislation that would require all over-the-counter derivatives trades be traded on regulated exchanges, not just standardized ones as the Obama administration is seeking.

U.K. banks will be forced to curb trading activity that helped cause the global financial crisis, Britain’s top financial regulator said last month, while stopping short of seeking to separate their lending and securities units.

“Banks have lobbied hard against any changes that would make them unable to take the kind of risks they took some time ago,” said Venkatraman Anantha-Nageswaran, global chief investment officer at Bank Julius Baer & Co. in Singapore. “Regulators are not winning the battle yet and I’m not sure if they are making a strong case yet for such changes.”

Mobius also predicted a number of short, “dramatic” corrections in stock markets in the short term, saying that “a 15 to 20 percent correction is nothing when people are nervous.”

VIX update – general sentiment update

We are in a very interesting stage as VIX has made another 13 count which it seemed to have missed at the recent correction falling back to old levels of normality around 25. I have to admit I misjudged how much people would fall back into the old habits although I knew we would drop in this phase of euphoria for a few months. The human behaviour is highly irrational one can sum up on all kind of occasions. As we are not out of the woods at all but the volatility of market moves has been far lower these days but with probably 70% volume be high frequency machines its an artificial situation which will change quickly as real action returns. Anyway many indicators do confirm that wave 4 is coming slowly to an end although one leg down is still missing. The public discussion on a daily basis by the talking heads about this Head and shoulder formation seems to have taken the momentum out as I was afraid it would do. We are back above what they considered to be the neckline which is not how it is supposed to play out. Well in any case we should see another downleg after this Goldman/Intel hype. Interestingly I do not know if you have noticed to is that the schedule of the earnings reports have been compressed usually it starts slow with a few investment banks and the week after the industrials would come in slowly this time they all come at once quite early. Some important sentiment indicators have come down to red alert levels as the Rydex at .53 which is the lowest level in years which gives just a little room for the bears and supports urgently the 5th wave up very soon definitely in August to new highs as other sentiment indicators are also retreating but not as dramatic as the Rydey. ISEE option indicators have also come down quite a bit diminishing the room for corrections. The only contradicting aspect is the VIX which does not show the bearish bias at all – but that pattern we have now for a while and just confirms that some manipulation is going on.

Its Its unbelievable what kind of people are allowed to spread their insane ideas

Just listened to John Hermann ex Merrill now running an own forecasting shop – its amazing some people do not understand what they are talking about or someone pays them handsomely to talk such a great deal of bulls…. he claims that 4Quarter will have 3 % GDP growth freaking unbelievable how s…. this guys are. They just go ahead and think inventories back to ‘normality’ since they have been contracting now for many months – they need to grow back ?
I wonder why that idea never worked in other depressions – by the way it is very interesting that the IMF which claimed a year ago that we are in one is now playing the nice cop and the Worldbank comes up with the negative outlooks which are still moderate.
Wake up buddy we have accumulated so much debt as never before – here is an excerpt you might want to read John H.

Excerpt

Time to tackle the real evil: too much debt

By Nassim Nicholas Taleb and Mark Spitznagel

Published: July 13 2009 19:11 | Last updated: July 13 2009 19:11

The core of the problem, the unavoidable truth, is that our economic system is laden with debt, about triple the amount relative to gross domestic product that we had in the 1980s. This does not sit well with globalisation. Our view is that government policies worldwide are causing more instability rather than curing the trouble in the system. The only solution is the immediate, forcible and systematic conversion of debt to equity. There is no other option.

Our analysis is as follows. First, debt and leverage cause fragility; they leave less room for errors as the economic system loses its ability to withstand extreme variations in the prices of securities and goods. Equity, by contrast, is robust: the collapse of the technology bubble in 2000 did not have significant consequences because internet companies, while able to raise large amounts of equity, had no access to credit markets.

Second, the complexity created by globalisation and the internet causes economic and business values (such as company revenues, commodity prices or unemployment) to experience more extreme variations than ever before. Add to that the proliferation of systems that run more smoothly than before, but experience rare, but violent blow-ups.

Our ability to forecast suffers due to this complexity and the occurrence of the occasional extreme event, or “black swan”. Such degradation in predictability should have made companies more conservative in their capital structure, not more aggressive – yet private equity, homeowners and others have been recklessly amassing debt. Such non-linearity makes the mathematics used by economists rather useless. Our research shows that economic papers that rely on mathematics are not scientifically valid. Not only do they underestimate the possibility of “black swans” but they are unaware that we do not have any ability to deal with the mathematics of extreme events. The same flaw found in risk models that helped cause the financial meltdown is present in economic models invoked by “experts”. Anyone relying on these models for conclusions is deluded.

Third, debt has a nasty property: it is highly treacherous. A loan hides volatility as it does not vary outside of default, while an equity investment has volatility but its risks are visible. Yet both have similar risks. Thus debt is the province of both the overconfident borrower who underestimates large deviations, and of the investor who wants to be deluded by hiding risks. Then there are products such as complex derivatives, which in the name of “modern finance” make the system even more fragile.

Against this background, we have two options. The first is to deflate debt, the other is to inflate assets (or counter their deflation with a collection of stimulus packages.)

We believe that stimulus packages, in all their forms, make the same mistakes that got us here. They will lead to extreme overshooting or extreme undershooting. They lead to more borrowing, by socialising private debt. But running a government deficit is dangerous, as it is vulnerable to errors in projections of economic growth. These errors will be larger in the future, so central bank money creation will lead not to inflation but to hyper-inflation, as the system is set for bigger deviations than ever before.

Relying on standard models to build policies makes us all fragile and overconfident. Asking the economics establishment for guidance (particularly after its failure to see the risk in the economy) is akin to asking to be led by the blind – instead we need to rebuild the world to make it resistant to the economist’s mystifications.

Invoking the pre-internet Great Depression as guidance for current events is irresponsible: errors in fiscal policy will be magnified by this kind of thinking. Monetary policy has always been dangerous. Alan Greenspan, former Federal Reserve chairman, tried playing with the business cycle to iron out bubbles, but it eventually got completely out of control. Bubbles and fads are part of cultural life. We need to do the opposite to what Mr Greenspan did: make the economy’s structure more robust to bubbles.

The only solution is to transform debt into equity across all sectors, in an organised and systematic way. Instead of sending hate mail to near-insolvent homeowners, banks should reach out to borrowers and offer lower interest payments in exchange for equity. Instead of debt becoming “binary” – in default or not – it could take smoothly-varying prices and banks would not need to wait for foreclosures to take action. Banks would turn from “hopers”, hiding risks from themselves, into agents more engaged in economic activity. Hidden risks become visible; hopers become doers.

It is sad to see that those who failed to spot the problem (or helped to cause it) are now in charge of the remedy. Just as the impending crisis was obvious to those of us who specialise in complexity and extreme deviations, the solution is plain to see. We need an aggressive, systematic debt-for-equity conversion. We cannot afford to wait a day.

Goldman – Its really amazing how wrong these analysts seem to be in general

I really made now specific research to guess that Goldman earning would come far above 4 Dollar per share – just by common sense and knowing they were riding the bull on behalf and with PPT but in any case an insider case they would make a killing this quarter. Bove as a bank analyst should come up with far better calls as he made plenty lethal dead wrong ones with being long on Citi he disqualified himself as that is an bankruptcy candidate.
Let me repeat Goldman will not be able to repeat this kind of quarter as it was a once in a century opportunity as with markets heading down in Q4which is not as easy to control and actually Goldman will be a step ahead compared to their peers but still be suffering as they hold exposure which will generate losses.
Anyway as soon as the markets and economy turns down again in Q3 the government and Goldman will come under increasing pressure and investigations as we have many cases of undeserved perks Goldman is getting with their taxpayer subsidies from zero financing as a ‘bank’ and no oversight as demanded by the FED as Goldman was riding a much too high leverage as a bank after all this events with taxpayers money.
Technically they entered a distribution pattern and will have a hard time surpassing the 150-160- area. I do expect still the final wave up in August for the overall market before we will be hit by the dire reality of a depression and new lows in markets.
But make no mistake here the other financials except JPM will not have suprising good numbers as Morgan Stanley for example missed most of the bull campaign but they also are not a member of the Rothschild gang.

Excerpt

Goldman Smashes Forecasts, Led by Strong Gain in Trading

//

Goldman Sachs Group reported an 33 percent rise in quarterly earnings on Tuesday as a strong gain in trading was offset by a one-time charge to repay government loans.

Wall Street’s largest surviving investment bank reported net income for common shareholders of $2.7 billion, or $4.93 a share, compared with $2.05 billion, or $4.58 a share, in the closest year-earlier quarter.

The results came in above analysts’ consensus forecast.

Analysts polled by Reuters Estimates forecast, on average, $3.49 a share, while those surveyed by First Call predicted earnings per share of $3.54.

Goldman // [GS 150.51 1.07 (+0.72%) ]// , the first major U.S. bank to report second-quarter earnings, saw its performance bolstered by improving markets and strong trading results, as well as an upswing in advisory fees.

Trading income jumped 93 percent from a year ago, while its equity underwriting business produced record revenue of $736 million.

Investment banking revenue of $1.44 billion was down 15 percent from a year ago but rose 75 percent from the 2009 first quarter.

Gains were tempered by a one-time $426 million charge related to the repayment of $10 billion in loans from the U.S. Treasury’s Troubled Asset Relief Program, known as TARP.

The strong second-quarter earnings were a result of “basic blocking and tackling for the firm,” David Viniar, the bank’s chief financial officer, said.

Viniar said the company focused on its core businesses, without ramping up risk.

This last line is at obviously a lie as Goldman was running at the highest VAR around 250, the last quarter of 2008 was at 195 – they even do not dare/care how much they make this kind of public lies anymore.

Second point to be made is as the financing of the 890 bil as of NOV 2008 roughly 250 bil is per share holders or long term debt the rest is financed at or close to zero due to the fact that taxpayers guaranteed or the bank holding structure gives them access to FED financing that gives them an advantage of at least 200 BB very conservatively on the 600 bil they finance which makes a difference of at least 1.2 bil per year. That is on the expense of taxpayers as the FED gives them far too low financing and they do not give any credits to Mainstreet at all hence its a pure one way benefit to Goldman.

Very special stressful period ahead – but also a new beginning

On the 22nd of July we have a Solar Eclipse ( New Moon, where the Sun will be partly covered) which will happen at a so called critical degree 29 (out of 30) is considered a critical degree as it happens in a cardinal sign (Cancer). These 2 facts would be quite impressive already but to make it even more dramatic the North Node will be just opposite at the brink of entering Capricorn that happened last time late 1990.
These 3 events stands for a crisis , a deep one and will actually be accompanied by other patterns in September, that will bring the global economies at a critical point and even the peace will be at stake as Gulf war 1 started with North Node entering Capricorn. I am not going into the details but an extraordinary stressful time is ahead on all levels economy and also peace and freedom in regular life are in trouble going forward.
One can see that also without any astrology but politicians are very reluctant to tell the truth to put it mildly they rather act all like snake oil salesman these days as corruption is at a highpoint and general ethics at a low point. See it as a storm warning you better tie up all loose ends as things are going to get worse over the next years and anything else said is a blunt lie. Only the debt burden has reached a level never seen before at the momentum is rather rising. This green shoot bullshit is a pure distraction and propaganda – its a bad joke to claim things are turning then they are a bit less worse briefly.The excerpt below only refers to the North Node entering Capricorn but as a matter of fact does the solar eclipse in exact opposition on a critical degree which might at least only happen once a century ( did not calculate it but its very rare once in a lifetime at best) in this signs be a very precious event after all. Since it is a new beginning born out of a deep crisis – we have the chance to turn things into something substantially better but it will require commitment and overcoming obstacles.

Excerpt
The North Node, which represents the karmic tone of the period, now stands at O degrees Aquarius in the process of moving into Capricorn, as it moves backwards. It spends approximately a year and a half in each sign, and the shift is due to take place over the next two months. The Mean North Node enters Capricorn on Sunday 26 July, and the True North Node on Friday 21 August. If you have planets or angles (such as your Ascendant) at O degrees of a sign, there is likely to be a significant change of lifestyle.
….
In retreating to Capricorn, it may seem a retrograde step in terms of spiritual evolution as for Capricorn charity begins at home. But it is necessary to counterbalance to some extent the disadvantages of globalization, as nations take a hard look at economic stringencies and boundary issues such as immigration control.
…..
Think back to when the North Node was last at this point in December 1990, the world was on the brink, in the midst of the First Gulf War crisis, very much a me and mine issue to Saddam Hussein (annexing Kuwait) and George Bush Senior (protecting the oil wells). Pondering this turned into an extra blog

Goldman earnings will suprise to the upside

I have no doubt what so ever that Goldman earnings due at the 14th will provide an upside surprise as they were riding a massive long position all the way long and will be by far the biggest beneficiary of this bull run. They even might not show all their profits this quarter as the game comes to an end. We can expect those earnings to turn the markets for a short period ( 1-2 days) as other banks like MS will be less fortunate only JPM will be again on the right side. That’s one of the few things Mr Bove got right. The current corrective wave down should end within 2 weeks and the final upleg above 1000 SPX should start from a level around 830. GS earnings can come in easily above 4 Dollar per share with the biggest contribution from the equity trading operation.

JPMorgan or Mr Dimon think they are smart?

Money for free and chicks for nothing (from a song)…. seems to be the maxim of JPM (Rothschild, Rockefeller) – well if they are such smart asses with the warrants I think the FED should release them from the burden to borrow money for zero interest and charge them the 10 year Treasury rate plus a premium as refinancing rate instead. Lets see how smart they are with that rate.
Its unbelievable buying Bear Stearns with rolling the risks to the taxpayers was not enough of greed already now they want to rip of the taxpayers one more time and claim Tarp money as a short term loan. without TARP and all the other multi trillion programs JPM would be bankrupt as all others – so shut the f,, up sit in your corner and become humble Mr Dimon.

All I can gather from this events is they have not only not learned anything they rather think they can screw around as they are pleased – just the entire system from a complete collapse who the hack has financed that ?

It was a huge mistake to go into this stupid warrant deals as its always trouble to determine ‘fair prices – they should have taken over determined amounts of stocks directly where it is no trouble to see the market value plus created a right to get directly involved in strategic board decisions ( not into the day to day business).

Excerpt

J.P. Morgan to Send Warrants to Market

By DEBORAH SOLOMON and ROBIN SIDEL

WASHINGTON — Several Wall Street firms seeking to buy back warrants held by the government as part of the $700 billion financial bailout are complaining that the Treasury Department is demanding too high a price, according to people familiar with the matter.

The Treasury has rejected the vast majority of valuation proposals from banks, saying the firms are undervaluing what the warrants are worth, these people said. That has prompted complaints from some top executives. J.P. Morgan Chase & Co. Chief Executive James Dimon raised the issue directly with Treasury Secretary Timothy Geithner, disagreeing with some of the valuation methods that the government was using to value the warrants.

The inability to agree on a price has already prompted J.P. Morgan to take the next step in a complex process to remove the warrants from the hands of the government. The bank has waived its right to buy the warrants and will allow the Treasury to auction them in the public market, which bank executives say will result in an actual market price.

“We’re very supportive of the Treasury’s process regarding the warrants,” a J.P. Morgan spokesman said. The bank said it took the action after the Treasury rejected its bid that was based on an independent appraisal.

The disagreement between banks and the Treasury indicates that the banking sector, despite being pilloried for its role in the financial crisis, is becoming increasingly confident in its dealings with Washington. Some banks have begun pushing back against some government initiatives, a move fraught with political risk.

It also is an indication of how tricky it is going to be for the government to extricate itself from its unprecedented investment in the financial sector. The U.S. has flooded the financial sector with hundreds of billions of dollars, most of which is expected to eventually be repaid and, possibly, create a profit for taxpayers.

Many banks have repaid their Troubled Asset Relief Program funds. But the government still holds warrants giving the U.S. the right to buy common equity in those firms for a set price. The warrants are difficult to value because they don’t trade and depend on an estimate of a bank’s future stock price.

Some banks argue they shouldn’t have to pay much, saying the government’s investment was essentially a short-term loan they accepted under duress to help stabilize the financial sector.

Others argue that the government shouldn’t be draining bank capital at such a fragile time. At least one bank has argued it shouldn’t have to pay the government anything at all.

But the Treasury is under pressure to extract as much money as possible for the warrants and avoid seeming to favor Wall Street over taxpayers. Lawmakers and the bailout’s independent overseers have warned the Treasury against settling for too low a price and robbing taxpayers of a richer return.

A Treasury spokesman said the government “has laid out a consistent and clear process for valuing warrants which is the same for all institutions, large and small. We believe our process goes a long way in protecting taxpayers.”

Dozens of banks are seeking to repay TARP and either buy back their warrants or have the government dispose of them through an auction. The government received warrants in more than 600 financial institutions when it bought preferred shares. Congress required the government to receive warrants, believing that would help taxpayers potentially profit from the investment.

Eleven small banks have repurchased their warrants. It is unclear exactly how much money is at stake, given the debate over valuation, but some independent valuations have placed the warrants at anywhere between $4 billion and $15 billion.

The Man Who Crashed the World – lets say he was a stupid part of the puzzle

It is unbelievable that a back office ( Cassano) man was running the biggest accumulation of concentrated risk and Hank Greenberg is still not in jail as he let the guys play beneath all means and odds risking money they never had. Same is true for the rating agencies which again have proven to be absolutely worthless and all the regulators who did not see it coming ?
That’s almost to much to take as any instance has failed and that Obama lets the rating agencies carry on is even a clear evidence of his incompetence or the degree of the corruption of the whole system. In either case the system is completely rotten and the fish stinks from all ends. America has undermined any moral power it might have had as it has no angle to demand anything from Russians or Chinese governments and the ironic part according to his speech Americans and Russians should find common ground – well it appears they have more in common as only one rule seems to count the stronger does what pleases him and a few privileged ones run the show is something both systems have in common. The value added now is that the commoner pays the risk of the moron privileged ones as Mainstreet bailed out Wallstreet and they do not change anything – well you are in trouble Mr President as no one will buy your stories in 6-9 months as you had a little help by the stars but that effect of Euphoria will be gone soon and the brutal reality of a depression will haunt your admin’s incompetence – especially the change mantra which turns out to be another read my lips phrase.

The Man Who Crashed the World

by Vanity Fair

June 30, 2009, 12:01 AM

Is it really possible for one man to precipitate a global economic catastrophe? In the August 2009 issue of Vanity Fair, contributing editor Michael Lewis, one of the most insightful Wall Street critics writing today, investigates the central role of A.I.G.’s Financial Products division in the subprime-mortgage and financial crises that necessitated a $182.5 billion taxpayer bailout out the insurance behemoth.

Following the public outcry over its bailout and bonus handouts, A.I.G. has become the company perhaps most associated with Wall Street greed and arrogance. But, as Lewis points out, its collapse has remained poorly understood. Talking to a number of A.I.G. F.P. traders, Lewis takes us deep inside the company to form a detailed history of who made what decision, when, and why—and what the consequences were.

A.I.G. F.P. was founded in 1987 by a group of mathematically gifted Wall Street traders who saw an opportunity to revolutionize credit markets through derivatives and computer models. It began as a limited and cautiously run enterprise, but its success, and the growing pressure for increasing profits, led it to grow and branch out into riskier types of credit-based derivatives. In 2001, Joe Cassano, a scrappy and ambitious longtime A.I.G. F.P. employee who lacked a mathematics background, was promoted to head the division. Under his watch A.I.G. F.P. would become increasingly immersed in credit-default swaps—insurance it sold on packages of corporate and consumer loans, including subprime mortgages, created by Wall Street. By the time the housing bubble burst, A.I.G. F.P. was on the hook for $450 billion in these credit-default swaps—enough to bankrupt A.I.G. many times over if even a fraction of this debt went bad.

In the article, “The Man Who Crashed the World,” Lewis explores:

• How A.I.G. F.P.’s decline began when Cassano took over and stifled its culture of healthy dissent with his autocratic leadership style: “A.I.G. F.P. became a dictatorship,” one trader from the division tells Lewis. “Joe would bully people around. He’d humiliate them and then try to make it up to them by giving them huge amounts of money.” Another trader confirms, “Under Joe the debate and discussion that was common under [previous A.I.G. F.P. C.E.O.] Tom [Savage] ceased.“

• How the bundles of loans that A.I.G. was insuring came to include not just relatively safe corporate debt but far riskier consumer debt—car loans, credit card loans, and, of course, subprime mortgages. As one A.I.G. F.P. trader explains to Lewis, “The problem is that something else came along that we thought was the same thing as what we’d been doing.”

• How A.I.G. F.P. became the first stop for Wall Street banks looking to insure the massive amounts of debt they were buying, packaging, and selling: “We were doing every single [credit-default swap] deal with every single Wall Street firm, except Citigroup,” says one A.I.G. F.P. trader. “Citigroup decided it liked the risk and kept it on their books. We took all the rest.”

• The failure of A.I.G. executives to realize just how much of the debt they were insuring was subprime-mortgage-related

• Joe Cassano’s initial refusal to scale back A.I.G. F.P.’s C.D.S. business when confronted with evidence of its unsoundness, and the decision he made that came back to haunt the company.

Below the full article which is an excellent inside into the world of insane AIG which was setup bu JPM and ran into the biggest trap but only with the help op Secretary Paulson they could rip off the house as finally the taxpayer paid the bill.

http://www.marketfolly.com/2009/07/michael-lewis-aig-article-in-vanity.html

Conspiracy ‘theory’ – conspiracy is the most standard event in history

It is a nice little trick to create a word which has the magic power to turn any critics into useless dust we have 2 in the aftermath of WW2 ‘antisemit‘ and ‘ conspiracy theory’ – I will not discuss the antisemit since it is ridiculous just by ts basic attempt as there are all forms of prejudices and racism on this planet and I do not find this one any more harmful than all the others.
Conspiracy theory is a very powerful version of distracting common sense when you get closer to reality. Conspiracy has always been a part of Human behaviour and we have any evidence in the world to see that there are some big forces trying to pull some evil agenda. Just take the time and study a bit of recent history and or just read some open confessions like the one of Rockefeller – he admits it very frankly. Just trust your own common sense and add 1 and 1 and you see all you need to know.
If you were an evil terrorist and wanted to blow up the Worldtrade Center would you do it with max collateral damage or the least – the answer is you fly in there at max occupation time right. The employees working in the Pentagon said that there was never a plane crashing on the building and no such pieces were ever found but the people who said so were bullied by FED people to shut up. That a Bush brother was in charge of the securities company taking care of WTC and that plenty sources fire-, and policemen) said they heard serious of explosions in the buildings as on the other hand pundits said kerosin could never have heated the steel of the building that they imploded like they did – was never investigated under Bush and we all remember the weird reaction of Bush as he gets the news. Finally plenty of the so called terrorists responsible were just faked as they were living happily somewhere as the incident happened. Give me a b… – is it so easy to cheat and fake stuff – yes it seems. We never heard what was about all the puts on airlines which had been purchased prior to the event. To me it rather looks like the necessary damage was done to pull off the Patriots act and start Gulf war 2 after all Iraq is a trillion dollar enterprise for the crusaders plus there are things never told on mass media – Saddam kept really some ancient treasures in hidden places beneath the earth – in history thousands of years ago the now Iraq was the epicenter of the most powerful country of that times and its said they have secret and sacred bounties down there besides the oil.
A complete different matter what happened to the 140 billion in Treasuries 2 Japanese guys had with them in Italy – freaking 140 billion – that’s the whole debt of some middle sized countries – never heard about it again – did you?
Did you know that the Dulles brothers are a center part of the modern American politics as they created the CIA and were at the same time the leading figures of the CFR ( president- that’s the Rockefeller organisation which basically runs America). Dulles recruited young chaps like Nixon and Reagan and even Bush senior who also came from the CIA to become president. The inner circle of the CIA runs America but not on behalf of America – so we have no reason to consider conspiracy as it is very obviously an apparent part of the so called democracies who are all run but secretive organisations who cover up in various forms. One thing has not changed though the Vatican is a centerpiece of one big gang and some Jewish families are running the competing gang and now China rumbles itself back up to a power spot it had anyway over thousands of years. Conspiracy is a standard commodity and democracy close to be ended as an experiment it seems if the people do not defend their rights but they can be corrupted and distracted to easily it seems. The dark forces are gaining cloud but there is always a force which is at least as strong as them if you are prepared to join them it is the faith in the strength of anyone who can think and decide for himself and does not sell his power out for a so called career and safety – that is the evil trick to manipulate you and make you obey the dark lord who attempts to rule this planet – they call it new world order.

Excerpt

Posted by Tyler Durden

at 12:50 PM

The logical follow up to Rosie’s earlier CNBC appearance is the teaser from his “Snack With Dave” email sent out to Gluskin Sheff clients. For the full body, we suggest readers apply for a free subscription to all of Rosie’s musings.

We heard at the market lows in March 2009 that the stock market had sunk to Armageddon levels. We have often thought about that because we can certainly understand that at the 2.0% lows on the 10-year Treasury note yield, we had gone to a place we had not seen in over five decades. Also, with Baa spreads north of 600bps, we could see that corporate bonds had moved to levels not seen in seven decades as well.

But this notion that we had moved to Armageddon lows in equities does not seem to hold water. After all, the forward P/E multiple on the S&P 500 at the lows was 11.7x. That was not a multi-decade low or some massive standard-deviation figure — we were actually lower than that at the October 1990 lows when the multiple was 10.5x and frankly, coming off the 1987 collapse, the forward P/E had compressed to 9.8x. As it now stands, the multiple is back very close to where it was at the October 2007 market high, when the multiple had expanded to 15.0x. The range on the forward P/E over the last quarter-century is between 9.8x and 21.8x (excluding the tech bubble), so at 14.5x currently, it is hardly the case that this market can be viewed as a bargain.

On a trailing earnings basis, the P/E multiple has actually widened, from 17.0x at the lows to 23.3x currently, a huge multiple expansion. At this stage of the 2003 recovery, the multiple hardly expanded at all, earnings were driving the rebound; coming off the October 1990 lows, the multiple expansion four months into the rally was closer to 2x and the powerful surge in the post-1982 recovery saw a 3x multiple point expansion at this juncture — not 6x!

As an aside, with the U.S. government now putting its fingers into more than one-third of the economy (health, finance, autos, energy, housing), one would expect that the fair-value multiple in the future will be lower than it has been — given the implications for productivity and the potential non-inflationary growth potential.

Also, Matt Taibbi is slowly emerging from the post article vacuum: his first written interview since the GS piece, compliments of Wall St. Cheat Sheet. Some excerpts:

Damien: The last word I wrote after I finished reading “The Great American Bubble Machine” was ‘Leviathan’. Since you’ve done some great research covering Wall Street and Washington, do you know of policy tools we can use to dismember what you affectionately called the “great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money”?

Matt: I interviewed a government regulator for my previous piece [“The Big Takeover”] who said state regulators already have enormous power. The state banking commissions or insurance agencies, SEC, or the Office of Thrift Supervision can simply write a letter to these banks and say, “You won’t exist tomorrow unless you …” or, “You’re not going to get government funding unless you do this.”

So, they already have enough power to correct all the problems people are worried about. The problem is getting the appropriate people to staff those bureaucracies. If enough people put pressure on members of Congress and the President to appoint the appropriate people, then we should solve most of these issues. I’m not sure what new policy initiatives would be needed. I just think we need new people.

Damien: Do you believe the citizenry can put enough pressure on our legislators, or are we the sheeple who are too confused, ignorant, or entertained to affect change?

Matt: The real problem is people aren’t organized enough to make it worth the while of politicians to pay attention to ordinary people. The disadvantage the average Joe has against Goldman Sachs is Goldman can concentrate its campaign contributions in its favor. The typical politician is not going to upset or alienate the five most powerful investment banks because he knows realistically he will jeopardize 30% or 35% of his next election cycle’s contributions. On the other side, there isn’t a way for the average person to organize and deny these politicians the money they need to get reelected. So, until we solve the campaign contribution problem, we won’t have the legislative tool to rebalance the power.

Damien: So are we living in a Catch-22 where we have to choose between the Goldman Leviathan sucking the world’s wealth from loopholes or the omniscient eye at the top of the governmental pyramid which becomes the one crown reigning over us all?

Matt: It’s pick your poison. But before we can even worry about the international government question, we have to start at home with our own country. We have to start by protecting the citizens of our country. Even in the United States, Goldman is allowed to get away with things they shouldn’t be allowed to get away with. If we can tighten up and enforce the rules here, we will be much better off before even looking at the international issue.

Damien: Most powerful institutions such as the Federal Reserve and Vatican dismiss most criticisms as “fringe conspiracy theory.” Why should the average citizen not dismiss your claims against Goldman as fringe conspiracies about bankers or Jews?

Matt: That was the tactical criticism I got from Goldman who said to the media, “Next thing you know he’s going to blame us for the Kennedy assassination and say we faked the moon landing.” But if you pay attention to all the criticisms they are leveling, it’s what we call in this business a “non-denial denial.” When people respond by calling names and changing the subject, it means they don’t have any issue with the factual allegations in the article. So, in response to being called a conspiracy theorist, the fact is they are resorting to the rhetorical non-denial denial shows they don’t have any real basis to criticize the facts in the article. The article speaks for itself and the fact they don’t have substantive issues with the piece is highly revealing. In fact, before the article went to print I was extremely nervous we had gotten something wrong and Goldman would come out with a whole list of things they’d say we made mistakes about. But the fact that they didn’t come up with a single thing greatly emboldens me to think we got it right.

NDX tech update

The corrective wave 4 down is on its way and what we can not see on this NDX chart but have developed for the SPX and DOW are Head and Shoulder patterns which had their necklines broken today. The Lunar eclipse made the green shoots die for a while as we enter the earnings season.
The downside target for the NDX is 1340/50 which is 38% down but even a less likely 1300 is possible. Time frame for this downside move is 2 weeks til the Solar eclipse. We should then enter final wave 5 up to 1580-1600 til end of Aug.

Now we know how Golldman made the market manipulation

First of all its really interesting to see how fast the FBI can conduct an investigation then it comes to the interest of Goldman – they have plenty of investigations to run against Goldman and Paulson but nothing seems to happen their at all.

Excerpt 1

Goldman May Lose Millions From Ex-Worker’s Code Theft (Update1)

By David Glovin and Christine Harper

July 7 (Bloomberg) — Goldman Sachs Group Inc. may lose its investment in a proprietary trading code and millions of dollars from increased competition if software allegedly stolen by a former employee gets into the wrong hands, a prosecutor said.

Sergey Aleynikov, an ex-Goldman Sachs computer programmer, was arrested July 3 after arriving at Liberty International Airport in Newark, New Jersey, U.S. officials said. Aleynikov, 39, who has dual American and Russian citizenship, is charged in a criminal complaint with stealing the trading software. Teza Technologies LLC, a Chicago-based firm co-founded by a former Citadel Investment Group LLC trader, said it suspended Aleynikov, who started there on July 2.

At a court appearance July 4 in Manhattan, Assistant U.S. Attorney Joseph Facciponti told a federal judge that Aleynikov’s alleged theft poses a risk to U.S. markets. Aleynikov transferred the code, which is worth millions of dollars, to a computer server in Germany, and others may have had access to it, Facciponti said, adding that New York-based Goldman Sachs may be harmed if the software is disseminated.

“The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways,” Facciponti said, according to a recording of the hearing made public yesterday. “The copy in Germany is still out there, and we at this time do not know who else has access to it.”

What the prosecutor says is an outrage by itself and completely insane why should others manipulate US markets as its very obvious that Goldman does it already – is he out of his f… mind?

Goldman has proven in many cases as you could even read in Rolling Stones that they walk any extra mile for dominating the rip off industry as they screwed up LTCM and they did that in all instances up to the very recent AIG robbery of taxpayers money.

They generate a piece of software which can manipulate markets the SEC should be all over them with the FBI as they indeed dominate the program trading by far, which is nothing else but a market manipulation. Have this prosecutors lost their common sense or is just anyone on Goldman’s payroll this days. DA is a starting point for a political career we know that and Goldman a generous sponsor even Obama knows that.

…..

‘Preposterous’

The prosecutor added, “Once it is out there, anybody will be able to use this, and their market share will be adversely affected.”

The proprietary code lets the firm do “sophisticated, high- speed and high-volume trades on various stock and commodities markets,” prosecutors said in court papers. The trades generate “many millions of dollars” each year.

Excerpt 2

Posted by Tyler Durden at 7:36 PM

Now Bloomberg is finally on Sergio’s case. Cutting to the chase, assistant U.S. Attorney Facciponti has some choice words:

“The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways,” Facciponti said. “The copy in Germany is still out there, and we at this time do not know who else has access to it.”

The prosecutor added, “Once it is out there, anybody will be able to use this, and their market share will be adversely affected.”

The proprietary code lets the firm do “sophisticated, high-speed and high-volume trades on various stock and commodities markets,” prosecutors said in court papers. The trades generate “many millions of dollars” each year.

Not even going to attempt to elucidate in how many different ways the first sentence above is just…plain wrong. At least it is refreshing that none other than Goldman’s own de facto attorney admits that the firm has created a piece of code that permits “market manipulation.” When Goldman is the perpetrator, the manipulation is conveyed via “fair ways.” And when the manipulator is someone else, the ways become “unfair.”

Of course, Goldman will be happy to know that according to PACER, Aleynikov has just posted bail and is freely roaming the grounds of SDNY, EDNY and District of New Jersey, however the “PTS Office shall be permitted, to the extent possible, to monitor the deft’s use of computer’s or other electronic devices at his home or place of business to ensure that the deft does not access the data that is the subject of this criminal action.” Something tells me monitoring Sergio’s (former) place of business will yield a lot more clues in the prosecution’s gathering of data for criminal action.

Maybe I am too drunk but… what the hell is going on here? When will Kevin Mitnick appear stage left and hold the world ransom for one hundred million dollars after announcing he has hijacked every SPY ETF ever put in circulation.

P.S. Any reference of the “Serge” individual referenced above to the now (in)famous Sergey Aleynikov is, of course, purely intentional.

But its interesting that Russians teamed up to build an operation in Chicago to run high frequency trading based on Goldman’s software. Teza was just recently founded by Misha Malyshev who was running Citadels HF ( program trading) operation. This is a very capital intensive business and I would wonder how they could raise that kind of money – there has to be a big player in the background with extraordinary capital resources even Russia could be the background player and that might explain Obama’s serious look while the press conference with Medvedev was running he could not put up his usual salesman look. Something troubled him deeply – though behind the scenes he might have run into a tough meeting with the Russian Bear but I rather see a connection to this software theft as well as cyber terrorism will get the playfield and even the Chinese are training 1000 engineers for this purpose in a special squad. I am sure we just see the tip of the iceberg in this case as there must be much more behind the curtain but we never might hear about it in the mass media.

Astrology works -

- whoever says different has an agenda or does not know what he is talking about. I followed this matters on markets now very closely for a few years after researching it in general for 15 and its amazing how evident the information you can gather by it.

One re cent example – Uranus went stationary in Pisces a few days ago and the floods came all over the world

Excerpt

Thousands Flee Floods in China

Associated Press

BEIJING — Floods blocked roads in southern China, leaving some 300 teenagers stranded at a school with limited supplies of food and water, an official said Sunday, after days of heavy rain killed at least 16 people.

More than 320,000 people have fled their homes in southern and central China after heavy rains toppled houses, flooded roads and damaged a dam, news reports said.

The Uranus Saturn oppositions within the last 9 months triggered 20 % drops in stock markets in 1 case on the day and the second within 4 days – the next one is due by mid Sep by the way.

On the 7th we have a partial Lunar Eclipse in Capricorn which will be a negative for stocks as well as it will cool down the Euphoria hype ( triggered by a conjunction of Jupiter, Neptun and Chiron).

A very dangerous aspect though is the upcoming Saturn / Pluto square end of October which has the potential for devastating military actions and material losses as it will happen in cardinal signs and critical degrees. Autumn will be a tough time for all of us as we enroll the quality of the early 30’s pattern again a so called T-square between Saturn ,Uranus and Pluto. The difference now is that Saturn is opposite Uranus this time last time it was opposite Pluto. This time it plays out on the axis of the FED and the US Venus which will be devastating for US debt as some of the foreign holders may loose their nerves and dumb the bonds but also we will see more unveils of the hidden agenda of the FED who does not work in the interest of the US citizens but rather for the banks benefit and that might be challenged as it will become unbearable.

Some ideas about the Rothschild operation

Excerpt
The Protocols Of Zion – Updated
The Harold Rosenthal Interview
By Henry Makow
henrym@mts.net
2-15-4

In 1976, the plan for “Jewish world domination” outlined in The Protocols of the Elders of Zion had been largely realized. Harold Wallace Rosenthal, 29, a personal assistant to New York Senator Jacob Javits felt that Jewish power was so unassailable that he could make some extra cash by telling this story to Walter White Jr., the editor of the Conservative monthly Western Front.

“Too many Jews do not have the guts to tell you how we live and plan, but I am not intimated by anything or anyone,” Rosenthal told White.

“It is too late for your Christian followers to put up a defence. That time is long past. Long, long ago we had to become the aggressors! That is undoubtedly one of our great purposes in life. We are aggressors!”

This shocking 17-page interview, (http://www.antichristconspiracy.com/HTML%20Pages/Harold_
Wallace_Rosenthal_Interview_1976.htm)

which contradicts the Jewish image as victims, has been on-line for some time. It ranks with the revelations of Benjamin Freedman (http://www.posse-comitatus.org/jewry/exposed.html), and C.G. Rakovsky (http://www.savethemales.ca/000275.html) as a description of the real forces directing the world.

Rosenthal needed gambling money but his candor cost him his life. On Aug. 12, 1976, he was killed in a foiled skyjacking in Istanbul. Walter White concluded that the incident was a cover for Rosenthal’s murder.

A commemorative Rosenthal “Fellowship in International Relations” discreetly furthers the work he indiscreetly exposed. Oddly, there is no picture of Rosenthal on their web site. http://www.rosenthalfellowship.org

The interview is virulently anti Semitic in the sense that both men characterize this conspiracy as “Jewish” and make many nasty racist generalizations. In fact, “the Jews” are really the Rothschilds and a few hundred banking families and their non-Jewish allies united by intermarriage and occult beliefs. The vast majority of Jews like other people are unaware of this plot and would oppose it if they were. Jews are as much its unwitting dupes and victims as anyone else.

The Rothschilds set up the Illuminati in 1776 to subvert the Christian basis of Western Civilization. They took over much of Freemasonry and used it to infiltrate all social institutions. Mouthing words like “freedom,” “equality” and “progress,” they are bent on melding family, race, religion, and nation into a malleable anonymous mush. Their world police state, now called “globalization,” lies behind the facade of “The Patriot Act” and “The War on Terror.”

Rosenthal says, “Most Jews do not like to admit it, but our god is Lucifer…and we are his chosen people. Lucifer is very much alive.”

This statement applies to modern culture as a whole. We do not like to admit that our “secular” society is based on a cosmic rebellion against God. Its true satanic character is becoming more evident every day.

INSIGHTS

Rosenthal says the “Jews” have built an earthly empire partly by rejecting Christ’s vision of a spiritual kingdom based on brotherly love. Jewish bankers plan to govern the world from Jerusalem according to their own interests.

He says the Jewish religion is essentially a disguise for a racial imperative. “We can live among other people and states [by] persuading them that the Jews are not a distinct people but the representatives of a religious faith…”

“Jewish” power was created through control of the monetary system.

“Through our national bank, the Federal Reserve, we extend book credit which we create from nothing to all local banks …[Thus] we bring industry, management and labour into our debt…and pit management against labour so they will never unite and attack us and usher in a debt-free industrial utopia.”

Through control of banking, the “Jews” acquired a total monopoly of “the movie industry, the radio networks and the newly developing television media…we took over the publication of all school materials… Even your music! We censor the songs released for publication long before they reach the publishers…we will have complete control of your thinking.”

He boasts that they even implanted a “guilt complex” over the Holocaust and anti Semitism that prevents society from addressing the problem.

“We Jews have put issue upon issue to the American people. Then we promote both sides of the issue as confusion reigns. With their eyes fixed on the issues, they fail to see who is behind every scene. We Jews toy with the American public as a cat toys with a mouse.”

Rosenthal avers that society can only escape this death clutch by violent action not education.

“History has been written in blood, not with ink. No letter, editorial or book has ever rallied the people or stopped tyranny. We understand this principle and are forever propagandizing the people to write letters to the President, to Congress…Woe be unto us if they ever see the futility of it, lay down the pen and employ the sword.”

But Rosenthal is not worried. Alluding to the promotion of feminism and homosexuality, he says:

“We have castrated society through fear and intimidation. Its manhood exists only in combination with a feminine outward appearance. Being so neutered, the populace has become docile and easily ruled. As all geldings…their thoughts are not involved with the concerns of the future and their posterity, but only with the present and with the next meal.”

Rosenthal talks about how a “Jewish” invisible government also controls the USSR, and how the UN is “nothing but a trap door to the Red World’s immense concentration camp.” He says this invisible power is responsible for the wars and revolutions of the last 200 years.

At times the interview seems almost too damning, and we wonder if it is authentic. Why would someone who says he aspires to national prominence allow it to be taped? Couldn’t he be blackmailed? He makes many unflattering and untrue generalizations about Jews, which also seems implausible. At times he veers widely from arrogance to insecurity. At one point, he says Jews have made plans to pack up and flee.

Ultimately you will make up your own mind. I believe the contradictions are due to self-hatred and a subconscious desire for expiation. The interview contains insights only an insider could have. I am referring to the references to Lucifer, race and violent change as examples.

The tone of racial arrogance also rings true. Rosenthal expresses incredulity at the spinelessness and gullibility of the American people. He says a Jew remains a Jew whether he converts to another religion or not. I doubt if Walter White would pull off the kind of stunt he condemns the “Jews” for doing.

CONCLUSION

Walter White seems to think the “Jews” are the “ringleaders” of the Luciferianism cabal known as “Mystery Babylon.” Certainly the Rothschilds are central players but the cast is large and includes many others.

By presenting this information, I am trying to inspire Jews and non-Jews alike to remove the media blindfold and recognize that Luciferians have hijacked humanity and modern culture largely is a fraud designed to disguise this fact.

True culture is based on religion, i.e. a collective commitment to absolute spiritual ideals such as justice, love, beauty and truth. “God is a Spirit and we worship him in Spirit and in Truth,” Christ said. (John 4:24)

We are living in the twilight of Christian culture. We have no genuine ideals to take its place. The elite’s Orwellian doublespeak (”freedom”, “tolerance,” “diversity” and “equality”) is manipulation and mind control.

Jews will have to disown organized Jewry, which is controlled by the bankers. Fifty per cent of American Jews do not identify with Judaism. The number that converted to another religion more than doubled since 1990 and now represents 25% of the total. http://www.thejewishweek.com/news/newscontent.php3?artid=5301

However most Jews, like non-Jews, are “secular humanists” which is Luciferianism in disguise. Humanism is the notion that man can build a utopia based on “reason.” In practice, humanism is a front for the Illuminist bankers and their allies.

Reason cannot be divorced from morality. Remember, I am the inventor of the game Scruples. “You find a wallet containing $3000. By the address you can tell the owner is wealthy. Your family is hungry. Do you keep the money?” That would be reasonable.

Humanism holds that man is already divine and therefore free to indulge his appetites and reject God’s Plan. This is what the humanist means when he preaches “freedom.”

In fact humanity is still very much a work in progress. We were put on earth to embody God’s Plan, (i.e. spiritual ideals.) God did not give us freedom so we could fail.

Banks own the US government – well lets say rather Rothschild’s gang does

I agree with the first part of the second excerpt, but its a bit to general to say banks – its rather more the banks who are owned and controlled by the ‘club’ – which is nevertheless the critical mass like JP Morgan and Goldman with HSBC to name the top of the breed. I doubt though that a tax like proposed would do any good since that are neglectable costs for a real good organised market manipulation. They go for 50-100 % in such trades what a difference does that make – none – its rather more the administrative assistance like stopping short sales of banks or other stupid rules they use to force prices into their direction. The problem is systematic DC and all governments are basically so rotten that one can summarize who ever wrote the protocols of the Elders of Zion can say check mission accomplished. This antisemitic nonsense is anyway the smartest defense to hide the real people behind this are a Jewish aristocratic gang od Rothschild’s and Rockefeller’s with other families who think they have the direct legacy of King David or/ and even Jesus and are the chosen ones. There is a tug of war between the Vatikan and the Prior de Sion in Europe ( The Prior think as well they are direct siblings of Maria Magdalena and Jesus and in a way Jeweish) and the Illuminati forces in America against the Vatican but here the influence of the Vatican is anyway modest. The force really between both is that they obey Lucifer as the God of their choice that şis why the highest ranks starting at 33 with Freemasonry have all Satanist procedes and the Skulls and Bones is a centerpiece of that in America.

Excerpt 1

http://www.rense.com/general49/prot.htm

The interview is virulently anti Semitic in the sense that both men characterize this conspiracy as “Jewish” and make many nasty racist generalizations. In fact, “the Jews” are really the Rothschilds and a few hundred banking families and their non-Jewish allies united by intermarriage and occult beliefs. The vast majority of Jews like other people are unaware of this plot and would oppose it if they were. Jews are as much its unwitting dupes and victims as anyone else.

The Rothschilds set up the Illuminati in 1776 to subvert the Christian basis of Western Civilization. They took over much of Freemasonry and used it to infiltrate all social institutions. Mouthing words like “freedom,” “equality” and “progress,” they are bent on melding family, race, religion, and nation into a malleable anonymous mush. Their world police state, now called “globalization,” lies behind the facade of “The Patriot Act” and “The War on Terror.”

Rosenthal says, “Most Jews do not like to admit it, but our god is Lucifer…and we are his chosen people. Lucifer is very much alive.”

This statement applies to modern culture as a whole. We do not like to admit that our “secular” society is based on a cosmic rebellion against God. Its true satanic character is becoming more evident every day.

Excerpt 2

http://www.guardian.co.uk/commentisfree/cifamerica/2009/jun/30/congress-financial-reform-banks

Last month, when the US Congress failed to pass a bankruptcy reform measure that would have allowed home mortgages to be modified in bankruptcy, senator Dick Durbin succinctly commented: “The banks own the place.” That seems pretty clear.

After all, it was the banks’ greed that fed the housing bubble with loony loans that were guaranteed to go bad. Of course the finance guys also made a fortune guaranteeing the loans that were guaranteed to go bad (ie AIG), and when everything went bust, the taxpayers got handed the bill. The cost of the bailout will certainly be in the hundreds of billions, if not more than $1tn when it is all over.

More importantly, we are looking at the most severe economic downturn since the Great Depression. The cumulative lost output over the years 2008-2012 will almost certainly exceed $5tn. That comes to more than $60,000 for an average family of four. This is the price that we are paying for the bankers’ greed, coupled with incredible incompetence and/or corruption from our regulators.

Under these circumstances, it would be reasonable to think that the bankers would be keeping a low profile for a while. That’s not the way it works in Washington. The banks are aggressively pushing their case in Congress and Obama administration. Not only are we not going to see bankruptcy reform, but any financial reform package that gets through Congress will probably contain enough loopholes that it will be almost useless.

In this political environment, the poor might get empathy, but Wall Street gets money, and lots of it. Even when the issue is global warming Wall Street has its hand out. The fees on trading carbon permits could run into the hundreds of billions of dollars in coming decades. A simple carbon tax would have been far more efficient, but efficiency is not the most important value when it comes to making Wall Street richer.

This is why it was so encouraging to see congressman Peter DeFazio’s proposal to tax trades in oil options and futures. DeFazio proposed a tax of 0.02% on trades in oil futures and options as a way to make up a shortfall in the federal government’s highway trust fund. This tax could raise billions of dollars each year in revenue and make speculation in the oil market a more dangerous affair.

The logic is very simple. For someone using these markets to hedge, the tax will be inconsequential. For example, a farmer that hedges a $400,000 wheat crop will pay $80 when selling a future. Similarly, airlines that hedge by buying oil futures will barely notice the higher cost. In fact, because trading costs have fallen so much in recent decades, a tax at this level would just be raising costs back to their levels of two decades ago, a point at which there was already a very vibrant futures and options market.

However, even a modest tax will make life much more difficult for speculators. Many of them expect to make quick short-term gains, often buying and selling the same day. For these traders, an increase in transactions costs of 0.02% would be a burden.

Of course, a modest tax will not drive the speculators out of the market altogether, it is just likely to reduce the volume of speculation. For this reason, even a modest tax can still raise an enormous amount of money in a market where tens of trillions of dollars of derivatives changes hands each year.

This tax can best be thought of as a tax on gambling. Gambling is heavily taxed in every state that allows it. DeFazio’s bill is effectively a tax on gambling in the oil markets. It will not stop it, but it would discourage it, and in the process raise a huge amount of money that could go to productive purposes.

The bill faces an enormous uphill struggle in Congress. As Durbin said, the banks own the place, and they are not going to just step aside and let Congress impose a tax on such a lucrative business. But, it is important that people know about the DeFazio bill. First, DeFazio deserves a place on the honour roll for standing up to Wall Street.

Also, it is important for the public to know that there is a relatively low-cost way to make up the shortfall in the highway trust fund. When Congress raises some other tax and/or cuts a useful programme, people should know that there was a better alternative. It just didn’t happen because, as we know, the banks own the place.

On giving Goldman a chance

very good read

Excerpt

http://trueslant.com/matttaibbi/2009/06/30/on-giving-goldman-a-chance/

by Matt Taibbi

On giving Goldman a chance

After my Rolling Stone piece about Goldman, Sachs hit the newsstands last week (unfortunately the piece is not yet up on the magazine’s web site, so I can’t link to it yet — but it is out in print), I started to get a lot of mail. Most of it was thoughtful and respectful criticism, although there was an amusingly large number of people writing in impassioned defense of their right, under our American system, to be ripped off by large impersonal financial companies. “If my pension fund is buying [crap mortgages] from Goldman, and my pension fund loses lots of value, that’s not Goldman’s fault,” wrote one reader. “No one is forcing anyone to buy anything. The only thing Goldman is guilty of is making profits.”

I’m not even going to go there — the psychology of a human being who would take the time to actually write in a complaint like that is so bizarre that it would take more time than I have today to even begin discussing it. One other complaint that I will address quickly, though, is the notion that I didn’t tell Goldman’s side of the story. “Not exactly a balanced approach,” complained one reader. “You should take an ethics class. You have to give the other side a fair shot.”

Actually I did contact Goldman and gave the bank every opportunity to respond to the factual issues in the article. I’m bringing this up because their decision not to comment on any of those questions was actually pretty interesting.

We figured ahead of time that Goldman was probably not going to respond to many of the allegations in the article, since its MO in the past with regard to hostile journalists has usually either been to make bald denials or to simply avoid comment (that’s when they’re not using the carpet-bomb litigation technique, as in the case of GoldmanSachs666.com). So what I decided to do the first time I approached them was to send a short list of simple factual questions. If the bank decided to engage us and educate us as to its point of view on these simple questions, we would send more queries and expand the dialogue.

Given this, I tried to make that first list of questions as basic as possible.  I asked if Goldman would have turned a profit in Q1 2009 if it hadn’t orphaned the month of December 2008. Then I asked if Goldman had made changes to its underwriting standards during the internet boom years; if Goldman’s position was still that the steep rise in oil prices last year was due to normal changes in supply and demand; and if it could explain its 1991 request to the CFTC to have its subsidiary J. Aron classified as a physical hedger on the commodities market. Citing various sources, I also noted that some people had complained that its move to short the mortgage market in 2006 even as it was selling those same types of instruments proved that the bank knew the weakness of its mortgage products, and asked if the bank had an answer for that. And I asked if the bank supported cap-and-trade legislation, and if it was fair to say (as we planned to in the piece) that the bank would capitalize financially if such legislation was passed.

I intentionally put a lot of yes/no questions on that list. If the underlying thinking behind any of those questions was faulty, it would have been easy enough for them to say so and to educate us as to the truth. Instead, here is the response that we got:

“Your questions are couched in such a way that presupposes the conclusions and suggests the people you spoke with have an agenda or do not fully understand the issues.”

You have to have swallowed half a lifetime of carefully-worded p.r. statements to see the message written between the lines here. That this is a non-denial denial is obvious, but what’s more notable here is that they didn’t stop with just a flat “no comment,” which they easily could have done. No, they had to go a little further than that and — and this is pure Goldman, just outstanding stuff — make it clear that both I and my sources are simply not as smart as they are and don’t understand what we’re talking about. So the rough translation here is, “No comment, but if you were as smart as us, you wouldn’t be asking these questions.”

So now word filters through that Goldman has issued yet another statement in response to the piece, this one by mouthpiece Lucas Van Praag (or Von Doom, as he apparently is often called). Again, the company does not take issue with any of the facts in the piece — not one. Here’s what he says (via Felix Salmon at Reuters):

Taibbi’s bubble case doesn’t stand up to serious scrutiny either. To give just two examples, even with the worst will in the world, the blame for creating the internet bubble cannot credibly be laid at our door, and we could hardly be described as having been a major player in the mortgage market, unlike so many of our current and former competitors.

Taibbi’s article is a compilation of just about every conspiracy theory ever dreamed up about Goldman Sachs, but what real substance is there to support the theories?

We reject the assertion that we are inflators of bubbles and profiteers in busts, and we are painfully conscious of the importance of being a force for good.

Okay, let’s look at that bit piece by piece. Von Doom takes issue with the bubble argument by citing two “examples” of the case not holding water, the first being:

… the blame for creating the internet bubble cannot credibly be laid at our door…

I kept waiting for the “because…” clause here, but there wasn’t one. He just says so and leaves it at that. Now there is obviously some measure of hyperbole in solely blaming Goldman Sachs for something like the internet bubble, or any of the other recent Wall Street disasters, for that matter. But you’d have to be absolutely crazy (and you wouldn’t need “the worst will in the world,” either) not to accept the notion that Goldman shouldered a significant portion of the blame for the internet mess. They were, after all, the leading underwriter of internet IPOs during the internet boom years. In 1999, at the height of the boom, they underwrote 37 internet companies, most of which had little or no history and were losing money at the time of the launch. By late 1999 Goldman was underwriting one out of every five internet IPOs. They were repeatedly caught and punished for manipulating the prices of their IPOs, either via laddering or spinning. Van Evil doesn’t deny any of this, and just blithely says that one can’t credibly blame them for the internet bubble. I’m almost insulted by the lameness and half-assedness of that comeback, but that might be part of the point, to be insulting. He moves on:

…and we could hardly be described as having been a major player in the mortgage market, unlike so many of our current and former competitors.

Again, not to beat this into the ground, but in 2006, at the height of the housing boom, Goldman underwrote over $75 billion in mortgages, over $59 billion of which were non-prime. That represented 7% of the entire market, which seems like a pretty “major” slice to me. It is true that they did not jump so completely ass-first into the market as Lehman and Bear did (note Von Doom’s bemused reference to “former competitors”), but if you read the piece, we noted why that doesn’t take them off the hook at all. Because while their “former competitors” (one of whom is clearly “former” in large part because a former Goldmanite, Hank Paulson, elected to save Goldman’s hide instead of Lehman’s) were dumb enough to hold their mortgage paper and be sunk by it, Goldman shorted their own crap, which means (and I know I’m repeating myself here) they knew that what they were selling was a loser. So while they maybe weren’t the biggest player, they were still a major player, and one can easily make the case that they were the most obnoxious player, given that they dove into this muck with their eyes wide open, unlike so many other idiots on Wall Street.

In the middle of this weirdly substanceless retort, Von Doom then goes on complain about the lack of substance in the article, makes the predictable charge that the piece was a compendium of invented conspiracy theories, then moves on to “reject” the notion that the company inflates bubbles and profits in busts (about that last part: I recommend checking out Goldman’s profit/bonus numbers in 2002, 2008, and 2009 to date. I’m not sure how they can refute the notion that they have profited during the recent financial calamities). Lastly, he says that the bank is “painfully conscious” of the importance of being a force for good, which I noted with amusement is not quite the same thing as saying that that bank is a force for good, or wants to be.

So to sum up, this all translates as:

“Taibbi’s bubble case doesn’t hold water. To use just two examples, Taibbi’s internet bubble case doesn’t hold water, and we didn’t sell as many mortgages as Lehman Brothers. Taibbi’s article is a compendium of every other story about Goldman that doesn’t hold water. We reject these theories that do not hold water, and are aware of the difference between right and wrong, making us legally sane according to the law.”

I’m aware that some people feel that it’s a journalist’s responsibility to “give both sides of the story” and be “even-handed” and “objective.” A person who believes that will naturally find serious flaws with any article like the one I wrote about Goldman. I personally don’t subscribe to that point of view. My feeling is that companies like Goldman Sachs have a virtual monopoly on mainstream-news public relations; for every one reporter  like me, or like far more knowledgeable critics like Tyler Durden, there are a thousand hacks out there willing to pimp Goldman’s viewpoint on things in the front pages and ledes of the major news organizations. And there are probably another thousand poor working stiffs who are nudged into pushing the Goldman party line by their editors and superiors (how many political reporters with no experience reporting on financial issues have swallowed whole the news cliche about Goldman being the “smart guys” on Wall Street? A lot, for sure).

Goldman has its alumni pushing its views from the pulpit of the U.S. Treasury, the NYSE, the World Bank, and numerous other important posts; it also has former players fronting major TV shows. They have the ear of the president if they want it. Given all of this, I personally think it’s absurd to talk about the need for “balance” in every single magazine and news article. I understand that some people feel differently, but that’s my take on things.

SPX tech update and the misconcept of the golden cross

These days a lot of people talk about a technical analysis without really understanding them – one of them recently is the golden cross. A rise of the 50 MA through a steeply falling 200 MA has less of an impact ( far less) and this talking heads and some other cheerleaders try to trap you in something they never really took the effort to understand.
First of all we have dropped far below the 200 month MA which is around 1000 currently and the monthly 50 MA has turned down being at 1250 as we have been below 200 month MA only in 2 cases the last 100 years. The other negative aspect is that we have made a significant new low compared to the last significant in 2003 which confirms that we are in a major correction. That’s rather more scary and that we need to test the overall support of this trend around 500 and see if it holds before we can assume a trend change.Thereby the best case scenario would be a repetition of the 1964-1980 sideways range for almost 2 decades thereby we would be now in inning 5. The second scenario is the Japanese version of things trading even far lower over another decade in waves. For the next 8 weeks the trading range is 830-1030 with a small correction due in July followed by new highs. Starting Sep we can expect a big correction marking wave 5 down – making new lows within 6-9 months the earlier mentioned 500 area will be the likely target which is still a 50 % drop from the 1000 we will reach some time this summer.

Germany’s debt will rise by 500 bil. Euro that equals 3.5 tril US

Germany will have to raise at least 500 bil. (equals 3.5 tril US Dollar through 5 times the size times the currency rate ) Euro new debt til. 2013 reports the German Handelsblatt. With a total of 2 tril debt then and a low assumption for interest rates of 4 % 80 bil. of interest would match aprox. 16 % of all German tax-income. I think those assumptions are all to low as nobody will lend Germany money at 4% then and the depression will have shown its full scale so you may easily double the numbers. Neither Germany nor USA deserve a triple or double A rating by now and if the rating agencies were honest they would have claimed that already. Since its a political issue this kind of honesty can not be expected and not happen. The problem is that the debt accumulation is rising so sharply that all these Goldilock morons who speak of recovery are deliberately liars and/or fools. This consumption on credit pattern needs to be broken or all go broke accept the ‘club’ which might even benefit to some degree for a short time but they do not have studied the ultimate forces of the universe it seems.
The only remedy is to cut down, deep down on consumption and only spend what we have but also to wake up and stop the robbery by the so called elite they are just morons with worthless ivy league degree’s who gather in secretive clubs to make their black magic voodoo. They do not have more power other than the fact that they organise themselves and use the human weakness to corrupt the people.
Start today kicking ass make a fuss in your bank about the criminal behaviour of them call your corrupt politician and tell him to change or he gets outed. Get out of your brainwashed trance and start doing the right things – do not allow to be abused, robbed and treated without the respect you deserve. Do not pay all this taxes anymore – all the laws are made to rob you not to protect you- just calculate how much taxes you are paying to sponsor all the thieves who generate the tax pool to enrich themselves. Why should one pay income tax plus VAT that is insane, first you get taxed for your work and then you get taxed from whats left over then you spend it to live and at the same time the national debt keeps rising. That is not an option what this so called politicians do to rob you and to take debt on future robbings which carry interest hence they have to increase the robbing ??????
All big western governments will be bankrupt within 10-15 years latest – there is no way they can payback the debt it is increasing rather at the biggest speed ever and once the baby boomer retire the systems will be broke.

How German ( all around the world) Banks Are Cashing In on the Financial Crisis

As I mentioned yesterday in connection with Citi ‘Banks’ (legal robbery entities) keep robbing the people/taxpayers and using the crisis only for their benefit they have not any interest to change and the corrupt politicians making these deals possible ( I am including corrupt central bankers since they are on the payroll of the ‘Club’).

Excerpt

Central banks are making trillions in unusually cheap money available to banks in a bid to restore liquidity to the financial system. But institutions are not passing on the cash to their customers, choosing instead to invest it and make a fat profit.

//

These days, bankers are used to bad press and being scolded by politicians. There’s been no shortage of either in the past week.

Getty Images

Frankfurt skyline: German banks are hoarding money at the expense of their customers.

“Banks Hoard Money,” was the headline on the cover of the Financial Times Deutschland, while the tabloid Bild sharply condemned the “Outrageous Overdraft Interest Rates.” Consumer Protection Minister Ilse Aigner railed: “It is unacceptable that the financial industry takes months to pass on reductions in the key interest rate, when it only takes a few days to pass on key interest rate increases.”

The new attacks on banks have been prompted by the fact that base rates are at a historic low and that central banks are injecting money into the market like never before. In the last week alone, the European Central Bank (ECB) allocated the record sum of €442 billion ($619 billion) to 1,100 financial institutions — at a paltry 1 percent interest rate.

And yet the money is not going where the central banks want it to go, namely into the pockets of businesses and consumers — at least not at reasonable interest rates.

Instead, many companies are struggling to survive because their loans and credit lines are not being extended. Meanwhile, citizens are outraged that they are still expected to pay double-digit interest rates on their overdrafts.

It seems clear that the banks would rather invest the cheap money they can borrow from central banks in safe investments, such as German government bonds offering 2.5 percent interest, than lend it to companies whose prospects, in the middle of a recession, are anything but rosy. And they are also lining their pockets with the fees they charge customers who are forced to go overdrawn as a result of the crisis.

Are the banks taking advantage of the crisis to turn a profit — at the expense of the very citizens to whom they owe their survival?

Previously Unimaginable Sums

It is now almost two years since the financial crisis began in Germany with the government’s dramatic bailout of IKB Deutsche Industriebank. IKB was one of the many banks around the world who had speculated unwisely, investing billions and even trillions in new, supposedly safe securities that were essentially nothing but repackaged and securitized loans to so-called subprime borrowers. When the bubble burst, the financial world teetered on the brink of collapse.

If the government had not come to their rescue with previously unimaginable sums, many banks would no longer exist today. The German government has already spent a total of €760 billion ($1.06 trillion), in the form of loan guarantees and bailouts, and it even took a 25 percent stake in Germany’s second-largest bank, Commerzbank. To limit the consequences for the real economy, the government also spent billions on economic stimulus programs.

The bill for taxpayers is equally enormous. In the coming year, the federal government will have to borrow €86 billion ($120 billion) — as opposed to the €6 billion ($8.4 billion) figure that was planned before the crisis. Politicians, as well as central bankers, business owners and, most of all, citizens, expect something in return: a functioning financial system — and low-interest loans.

This is especially true now that the banks seem to have survived the worst of the crisis. In the United States, many banks have started to repay the money they received from the government under the Troubled Asset Relief Program (TARP). After last year’s record losses, many institutions have reported respectable profits for the first few months of 2009, and the banks’ share prices, which had fallen to all-time lows in January, have since doubled.

Nevertheless, the economic crisis threatens to get even worse, because the credit system is still not working the way many politicians specializing in financial issues believe it needs to, if greater damage is to be prevented.

DER SPIEGEL

Graphic: Comparison of selected interest rates

Ilse Aigner has asked officials in her ministry to carefully examine and document the behavior of financial institutions. She plans to release the results of the study to the public. In her view, banks that do not pass on interest rate reductions to their borrowers are operating in legally shaky territory. Her position is based on an April ruling by the German Federal Court of Justice, according to which banks cannot set variable interest rates and fees at their own discretion.

Even Axel Weber, the chairman of Germany’s central bank, the Bundesbank, is relying on public pressure. He knows that banks have steadily tightened their requirements for the creditworthiness of borrowers in recent weeks and months. And he also knows that much of the money the banks have borrowed from the ECB is not reaching businesses and bank customers.

‘There will be blood’ – astrology does support this s

After all that’s what the Bilderberger (CFR -Rothschild Bilderberger Clan) is after since in a distressed global economy they will be able to move on with their grand mission of a New World Order. First they need to discredit the current governments, which is mostly done to make people to cry for the white knight (in fact it will rather be Lucifer – the highest Masonsist’s are Satanists) who saves them but therefor they need to create much more distress and the current sucker rally is a measure to destroy the last savings many people have. The process will be a bit slower though as they have to avoid civil war which puts their own assets and interests at risk, which is the second reason. The third reason is that there are at least one competing group which has the power to interfere and the Chinese are a force to deal with going forward for both.

Below Niall Ferguson ( Harvard / Oxford) gives a blunt picture of the things to come.

Excerpt from

http://www.theglobeandmail.com/report-on-business/article973785.ece

Heather Scoffield: Is a violent resolution to this crisis inevitable?

Niall Ferguson: “There will be blood, in the sense that a crisis of this magnitude is bound to increase political as well as economic [conflict]. It is bound to destabilize some countries. It will cause civil wars to break out, that have been dormant. It will topple governments that were moderate and bring in governments that are extreme. These things are pretty predictable. The question is whether the general destabilization, the return of, if you like, political risk, ultimately leads to something really big in the realm of geopolitics. That seems a less certain outcome. We’ve already talked about why China and the United States are in an embrace they don’t dare end. If Russia is looking for trouble the way Mr. Putin seems to be, I still have some doubt as to whether it can really make this trouble, because of the weakness of the Russian economy. It’s hard to imagine Russia invading Ukraine without weakening its economic plight. They’re desperately trying to prevent the ruble from falling off a cliff. They’re spending all their reserves to prop it up. It’s hardly going to help if they do another Georgia.”

“I was more struck Putin’s bluster than his potential to bite, when he spoke at Davos. But he made a really good point, which I keep coming back to. In his speech, he said crises like this will encourage governments to engage in foreign policy aggression. I don’t think he was talking about himself, but he might have been. It’s true, one of the things historically that we see, and also when we go back to 30s, but also to the depressions 1870s and 19980s, weak regimes will often resort to a more aggressive foreign policy, to try to bolster their position. It’s legitimacy that you can gain without economic disparity – playing the nationalist card. I wouldn’t be surprised to see some of that in the year ahead.

It’s just that I don’t see it producing anything comparable with 1914 or 1939. It’s kind of hard to envisage a world war. Even when most pessimistic, I struggle to see how that would work, because the U.S., for all its difficulties in the financial world, is so overwhelmingly dominant in the military world.”

Heather Scoffield: You speak about the crisis being in its early days, but most policy makers and the International Monetary Fund are predicting a quick end to it. Where do you differ with them?

Niall Ferguson: “I do think they’re wrong. I think the IMF has been consistently wrong in its projections year after year. Most projections are wrong, because they’re based on models that don’t really correspond to the real world. If anything good comes of crisis, I hope it will be to discredit these ridiculous models that people rely on, and a return to something more like a historical understanding about the way the world works.”

“I mean most of these models, including, I’m told, the one that policy makers here use, don’t really have enough data to be illuminating … You’re going to end up assuming that this recession is going to end up like other recessions, and the other recessions didn’t last that long, so this one won’t last so long. But of course this isn’t a recession. This is something really quite different in character from anything we’ve experienced in the postwar era. That’s why these projections give positive numbers for 2010. That’s the default setting. And it just seems to me ostrich-like, to bury one’s head in the sand and assume this has to end this year because, well, that’s what recessions do.

“It’s obvious, surely we know by now, that this is something quite different. It’s a crisis of excessive debt, the deleveraging process has barely begun, the U.S. consumers are not going to suddenly bounce back and hit the shopping malls just because they get a tax cut. The savings rate is going to continue to rise. These processes have tremendous momentum that quite clearly differentiates them from anything that we’ve seen, including the early 80s, including 73, 74, 75. Those big crises, the ones that we have lived through, were bad. But seems certain to be deeper, and more protracted.”

Heather Scoffield: Forecasters say they can adjust their projections as things change, but households, companies and governments are basing their decisions today on what the experts tell them to expect in the future. So how should decisions be made if the forecasts are wrong?

Niall Ferguson: “One possibility is that they don’t believe these numbers either. They feel that it’s good for morale. The truth about the crisis is that it is in large measure psychological. We’re not dealing here with mathematics. We’re not dealing here with human beings as calculating machines. We’re dealing with real people whose emotions influence their individual decisions, and the swing from greed to fear is a very spectacular thing when it happens on this scale.

“One possibility is that policy makers are lying in order to encourage people and prevent depression from become a self-fulfilling psychological conditions. That’s why it’s called a depression … Maybe they don’t really believe this, but they’re saying it in order to cheer people up, and if they’re sufficiently consistent, perhaps people will start to believe it, and then it will magically happen.”

“The other way of looking at that is to say every time a politician uses a word like ‘catastrophe’ or ‘depression’ to pressurize legislators into passing a stimulus package, for example, the signal goes out to the public that this is bad. And it gets worse. That’s one of the interesting things that both President Bush and President Obama have done. Bush used that wonderful phrase, “this sucker’s going down.” Obama talks about catastrophe at the critical moment when he wanted Congress to pass the package. It reminds me of a wonderful headline that the Onion had last year, in about October. The headline was, Bush calls for panic. I love it because it completely called the situation. There he was calling for panic … to make people come out of denial. I’ve been talking a while about this being the Great Repression. It took ages, ages, for people to realize this thing had fallen apart.

“August, 2007, was when this crisis began. And if you were really watching the markets carefully, April is when it began, when the various hedge funds started to hemorrhage. The stock markets carried on until October of that year. And in many ways, consumer behaviour in the U.S. did not change until the third quarter of 2008. So there was a massive denial problem. It was like Wile E. Coyote running off a cliff, and they’d run off a cliff and they didn’t look down so they didn’t start falling. As soon as people realized it was bad, the behaviour switched. Now, people have to try to unscare them before this thing becomes a self-perpetuating downward spiral. I think that’s why you have to say ‘growth will return in 2010′ with your fingers crossed behind your back.”

Heather Scoffield: Will property ownership continue to be central to our economy’s functioning?

Niall Ferguson: Property ownership is something that our societies, particularly English-speaking societies, seem to be drawn towards. The notion that the majority of people should own their own homes dated from the 30s. It didn’t really become a reality until the 50s. We’ve sort of pushed the home ownership rate up to what seems to be its maximum, and beyond. It will clearly come down. The lesson of the subprime crisis is that you shouldn’t give mortgages to people who can’t afford them. Duh …

I don’t think we’re going to see a radical shift back to the rental society of the pre-Second World War era. That sort of exists in Germany. Germany has had none of this. German households are less indebted now than they were 20 years ago. The property ownership rate, if anything, has been completely stable. Why the English-speaking world has this fixation is kind of interesting and hard to explain. That Englishman home-is-his-castle mentality. We privilege this asset class. And in the U.S., the tax code privileges this asset class to take out mortgages and invest in property. I think that’s a mistake. I’d like to see us at least achieve fiscal neutrality, so that different kinds of investments are treated the same. But even if we do that, Canada doesn’t have mortgage interest relief, and the home ownership rate is the same as the U.S.”

Heather Scoffield: Abu Dhabi has just bought Nova Chemical because the company couldn’t get credit. Is this the way of the future?

Niall Ferguson: “There are some fantastic investment opportunities that pretty soon are going to start attracting buyers. The returns on the super-safe, highly-liquid U.S. Treasury portfolios are next to nothing. The potential returns from buying distressed assets or from buying companies that can’t roll over their debt, are double digit. So any individual institution liquid enough and not leveraged can start playing this game, and will play this game. This is going to be the beginning of a whole new investment strategy in which companies that can’t roll their debt over end up being sold at bargain basement prices, or broken up and their assets sold at bargain-basement prices, in very, very large numbers. And it doesn’t take a lot of imagination to see that the buyers will be sovereign wealth funds or other entities in surplus countries. The world divides in two, the debtors and the creditors. The debtors … (U.S., Europe) … are going to have to sell of their assets. Call it the global foreclosure. They’re going to be selling their assets cheaply to those who have the surpluses. This is not going to be like the Chinese buying Blackstone at the top of the market.

“It’s revenge of the sovereign wealth funds. They got burned. And this time, no more Mr. Nice Guy.”

Heather Scoffield: Does the fixing of one bubble create another?

Niall Ferguson: “We kind of have had a bubble in the sense that we’ve seen such a rally in U.S. government bonds. It’s tempting to say that will burst and we’ll see yields go back up. Because, you know, $2-trillion worth of debt is going to hit the market this year, maybe more. Supply is exploding just when demand is contracting. You don’t need to be a Nobel laureate to see that that has to impact on the price. The difference is there is this thing called the Fed that can step in and start buying the stuff if the foreign demand fades. So it’s not completely guaranteed that we’ll see bonds sell off in price.

“There is still this inertia that prevents the dollar from falling off a cliff, that keeps the Treasury market from falling off a cliff. That’s really important to bear in mind. I don’t think we’ll see a bubble distressed assets, because I think the price of these assets has started to fall. Anybody who comes into the market now is essentially paying a premium. There will be better bargains in the middle of this year, and maybe even better bargains later on. If I were in the market to buy distressed assets, I would wait, I would wait a bit longer until they’re really desperate. And it might even be better to wait until they’re bankrupt.”

Heather Scoffield: You’ve written that many financial crises are the result of excesses due to a belief that governments will bail out the financial sector. Do we need to get rid of this moral hazard through tighter regulations?

Niall Ferguson: “In the Ascent of Money, I argue that you can’t really have a bubble if you don’t have a monetary authority that has been excessively generous. From John Law in 1719 to Alan Greenspan in the late 90s, there’s always a banker, there’s always a central banker making credit too readily available. The second thing is, though, that regulation may not prevent that.”

“Monetary policy evolved in a peculiar way in the 1990s towards de facto or de jure targeting of inflation, an increasingly narrow concept of inflation – core CPI. I thought it was a mistake at the time because it seemed to me crazy to ignore asset prices. Why differentiate? What’s the difference between pricing a loaf and pricing a house? Why do we care about one and not the other? In fact, we should probably care more about the price of a house than the price of a loaf, certainly in developed societies. I think there was a flaw in the theory there, that essentially you could call the Jackson Hole consensus. When the central bankers got together at Jackson Hole, the view that emerged from the debate in the late 90s was, we shouldn’t really pay attention to asset prices in the setting of monetary policy.”

Heather Scoffield: And more regulation?

Niall Ferguson: “European banks are far more leveraged than American banks. I don’t see Europe as offering up any particularly good model in any respect. In fact, I think Europe’s prospects could get a whole lot worse this year, to the extent that it could be very, very hard indeed to keep the Euro zone together. I think it will be possible because the costs of leaving will be so high.

“There will be howling anguish, all kinds of pain, conflict between Germans and the others. It’s going to get very uncomfortable indeed. No, I wouldn’t look to Europe for inspiration. You could, I guess, look at Spain…

“I definitely think some type of tighter regulation of banking capital adequacy is needed. Basel I and Basel II have not worked. In many ways, they’re the great failures. I think Canada’s somewhat straightforward, mechanical definition looks like one the rest of the world should be adopting.”

Heather Scoffield: You mentioned that the Buy America tendencies of Congress are probably only the beginning of protectionism. What do you mean by that?

Niall Ferguson: “No administration with Larry Summers in the White House is going to be a protectionist administration. Here’s a man whose commitment to free trade and free capital movements nobody doubts. And I don’t see the President following through to renegotiate NAFTA or the things he said in the past. But one of the things that I find troubling about the administration is the degree to which is has ceded power to Congress. It’s almost like it’s a parliamentary system.”

[I was in Washington last week for the passage of the stimulus package]. “I felt a strange sense of familiarity in the air. Usually Washington feels totally alien to me. It was just like being in Westminster, where power was in the legislature. And the key issue was whether the upper house and the lower house could make a deal. The president wasn’t even in town. If you give Congress that kind of power – basically Congress wrote the deal – then you’re half way to a British or Canadian system in which the legislature makes the decisions. And the legislature is much more likely to make protectionist decisions. After all, these are pretty much the same people who put all those anti-China bills into the works in the last session of Congress … So I’m a little nervous about how this will play out in the next one or two years … After all, this is the land of permanent election campaigning. Congressmen are saying to themselves, ‘ how am I going to campaign? I don’t want to lose my job. What’s my line going to be?’ It’s going to be very tempting to say ‘American jobs for American workers.’ It’s a pretty good slogan. It worked well in Britain.”

“That’s out there. There’s a lot of populist disgruntlement, and it’s going to get bigger.”

Heather Scoffield: We’ve discussed many possible nasty outcomes to this crisis. Is there a way out?

Niall Ferguson: “We’ve discussed two reasons to non-suicidal. I’m trying to stay cheerful. One is that Chimerica is holding up. The Chinese don’t seem to want to get divorced from their American spouse.”

“The other is that this isn’t leading to World War Three or Four, depending on how many world wars you think there have been. There will be instability, but I don’t see that instability producing something as huge as the 20th century conflicts. But it’s hard to see a simple and quick macroeconomic happy ending. That I really struggle to visualize.

But the good news is only as good as this: the United States, which is Canada’s biggest trading partner, is not going to suffer as badly as many other economies around the world. And that means that from Canada’s point of view, it’s not standing right on top of the biggest fault lines in the global system. The biggest fault lines in the global system are in Asia. They may also be in Eastern Europe. That’s where things are going to be really unpredictable.”

“The two great zones of conflict in the 20th century were central and eastern Europe, and a critical part of northeast Asia – Manchuria, Korea. It makes me a little nervous that those are also places that are going to take a very heavy share of the pain. But we’re looking at a Great Recession, not a Great Depression. We may be looking at a Lost Decade.

There was a time when if you said the United States was going to suffer a lost decade like Japan did in the 1990s, everybody would have said you were a mad pessimist. That begins to look like quite a good scenario. And I think it’s a realistic scenario.

One of the facts is if you subtract mortgage equity withdrawal from the Bush years, the real underlying rate of growth of the U.S. economy was 1 per cent. So much of the consumption has been fuelled by mortgage equity withdrawal. So that seems like a reasonable growth rate for 10 years. … We just don’t have an improvement of standard of living of the sort we’re grown used to. And indeed if you have a more equitable redistribution through the tax system, which Obama is committed to, it might actually be no discernible downside for middle America and lower-class Americans. So many of the benefits of the boom went to the elites. If you have a lost decade plus redistribution, it may not be that dramatic a change for many, many people. People just have to get over the fact that their wealth wasn’t worth what they thought it was in 2006. Whether it’s their stock market portfolio or their housing. If we simply go back to where we were, in 2005, that’s surely not the worst thing that could happen to us.”

It is amazing how Americans are robbed ( actually all regular citizens) get robbed by banks with the help of the corrupt administrations

Citi is owned by the US government basically and still can go through with such shameless and outrageous measures to rob ‘legally’ the so called clients. They have guarantees of 100 bil by taxpayers got around 50 bil. direct subsidies and can borrow money at 0 (zero) at the FED in any amount they wish and are raising rates. That is a no go Mr President and your smart talk does not get any justice to the people who did elect and pay you – the next ‘Teaparty‘ is around the corner as soon as all this upturn lies vanish people might wake up and act.

The best thing you can do here is to close down all accounts of banks who act like this – the government works for the banks not for the people so do not expect any help from them. They just make their dramatic words followed by no action charade.

One save way to punish the guys is use no credit- pay it back if you have some resources as the negative interest rates make one sure investment with a good return – pay down any credit you can and close all accounts you can get out of their system. Make an easy calculation as to rent your home might make much more sense than to ‘own’ it when you need to finance it. If you have spare money it may make sense in 6-9 months to buy real estate ( realistic bottom window) as within 10 years inflation will be the second biggest enemy of your savings.

Excerpt

Citi Raises Rates on 15 Million Credit Cards: Report

Citigroup has increased interest rates on up to 15 million U.S. credit card accounts just months before curbs on such rises come into effect, the Financial Times reported citing people close to the situation.

Confidence Market Divergence accelerates

That’s a great piece of evidence how this whole propaganda machine paints an unsustainable picture of ‘green shoot’ nonsense – by the way just the matter that Bernie came up with that phrase should scare anyone since he is the guy who thought everything was detained 2 years ago.
Zerohedge is really good in putting together evidence and it confirms that by Sep we will have another sharp downturn in stocks as I keep remembering you like a broken record.

Posted by Tyler Durden at 10:50 AM

The last time we got a -2.42 standard deviation between confidence and the market, things got real ugly, real fast.

SPX tech andgeneral update

We are in a crucial window dressing week (end of quarter) and so far the monthly performance is neutral hence we can expect the manipulaters to push the market higher to increase the buying pressure. Second half of the week we can expect a pullback though. It should be a volatile week though as Uranus goes stationary on 1st July. We are still in the 830-1ß30 trading range I mentioned a few weeks ago and I rather had expected a pullback to 830 before the final thrust up but the sentiment indicators have come down quite a bit as Rydex and ISEE and the market is talking to much over a correction as it could happen right now. Mid July is a more likely point of time for a corrective move but weakness can be bought by traders as we will see the SPX above 1000 since its a psychological hurdle which will be taken out and trigger follow through to the 1030-50 level. I do not agree to the calls that we had the lows already which also Mr Doom and Gloom claims these days. We are clearly in wave 4 up and need wave 5 down which will happen in Q4 09 – Q1 10 to a drastic new low around 500 SPX if not even 400 before we might see a longer upside consolidation will kick in. No severe downturn ever ended with a 15 times PE ( and that’s stilll the fake version) but more importantely the forces behind the scenes want a global crises to make a leap in their agenda. The Rothschild / Rockefeller gang needs people to be in panic to make the legal and administrative adjustments for their New World Order and as in 9/11 they need some dramatic events to steer people into their direction.

Bernanke is toast – he was very likely framed

As I wrote in an earlier post that even Bernanke or Paulson were in trouble and I assumed it rather would be Bernanke today’s hearing made it very clear that he was framed in the process of the Bank of America takeover of Merrill ( by Paulson I assume).
He made plenty of mistakes but he was a goat from the beginning as he never had what it takes to play with Wallstreet mobsters like Paulson – he was completely overwhelmed by the situation and followed the lead of Goldman ( Paulson ) rather than to make his own calls.
Mr summers is sitting in the background and might be cheered up as the position he aimed for is now ready for him to take over as the new power legislation bolstering the FED’s authority is made for him right from the beginning. The defense of Obama for Bernanke was formally but not expressively supportive anyway.
I do not believe he will get another term and he was heavily discredited in today’s hearing as it will help the current government to make him the goat who sinned and move on to clear the air for the future.

Excerpt

Bernanke Defends His Record on Bank of America Talks

By Craig Torres and Scott Lanman

June 25 (Bloomberg) — Federal Reserve Chairman Ben S. Bernanke said the central bank acted with the “highest integrity” in talks on Bank of America Corp.’s takeover of Merrill Lynch & Co., defending his record against some lawmakers who have alleged officials’ actions were inappropriate.

“The Federal Reserve acted with the highest integrity throughout its discussions,” Bernanke said today in testimony to the House Oversight Committee. He said that “in retrospect,” the Fed’s actions have strengthened Bank of America, Merrill and the financial system and protected taxpayer interests.

Legislators are trying to determine whether Bernanke overstepped his authority in pressuring Bank of America to complete the purchase of Merrill. Bernanke’s record on the issue and lawmakers’ reactions may also figure in whether he will be reappointed by President Barack Obama, and in debates on overhauling the Fed’s powers and responsibility.

“These are the kind of questions that need to be answered before the president makes his decision,” Elijah Cummings, a Maryland Democrat and member of the committee, said in a Bloomberg Television interview earlier today.

Bank of America Chief Executive Officer Kenneth Lewis told the committee earlier this month that he decided to proceed with the takeover of Merrill after regulators said they might remove management and because his company’s future was “intertwined” with Merrill’s fate.

Lewis Testimony

Completing the purchase of New York-based Merrill was in the best interests of the bank, Lewis also said June 11. He cited the potential benefits to the company, as well as consequences for the bank if the deal was scuttled and the financial system was disrupted.

Republican lawmakers who have consistently opposed government rescues of financial companies have accused the central bank of overstepping its authority in pressuring Bank of America to absorb Merrill Lynch.

Republican congressional staff wrote in a memo on documents received by the House panel from the Fed through a subpoena that a “gun placed to the head of Bank of America” forced the Charlotte, North Carolina-based bank to go through with the merger, which was announced in mid-September.

Issa’s Charges

Representative Darrell Issa, the ranking Republican on the panel who voted against the $700 billion financial-rescue program last year, also said the Fed withheld concerns about the deal from other agencies.

Bernanke today said he didn’t threaten that Lewis would be fired if the bank didn’t go through with the Merrill deal. He said the takeover came at a time of “extreme stress in financial markets,” and noted the government had taken extraordinary steps to prevent the collapse of systemically important firms, including Citigroup Inc., Fannie Mae, Freddie Mac and American International Group Inc.

Bernanke said in the testimony that the Fed didn’t try to limit public disclosures or force the merger. He said in answering questions that he also “personally” informed Federal Deposit Insurance Corp. Chairman Sheila Bair and Comptroller of the Currency John Dugan about the Bank of America situation.

“I did not play a role in arranging this transaction and no Federal Reserve assistance was promised or provided” when the acquisition was announced on Sept. 15, Bernanke said.

Merrill Losses

Bank of America in December considered retreating from the Merrill deal because of large losses at the brokerage firm. Merrill reported a $15.8 billion loss during the fourth quarter.

The Fed chairman said if the deal fell through it “might have triggered a broader systemic crisis” that could have enveloped both Bank of America and Merrill. Also, if Bank of America cited adverse changes at Merrill as a reason for retreat after three months of preparation, it might raise questions about the bank’s own risk-management and due diligence, Bernanke said. Finally, use of the so-called MAC clause could provoke “extended and costly litigation,” he said.

“The decision to go forward with the merger rightly remained in the hands of Bank of America’s board and management, and they were obligated to make the choice they believed was in the best interest of their shareholders and company,” Bernanke said. The Fed’s actions “have strengthened both companies while enhancing the stability of the financial markets and protecting the taxpayers,” he said.

Bernanke Defense

The Fed chairman said neither he nor any member of the Fed “instructed, or advised Bank of America to withhold from public disclosure any information relating to Merrill Lynch, including its losses, compensation packages or bonuses, or any other related matter.”

He said the disclosures “belong squarely with the company, and the Federal Reserve did not interfere in the company’s disclosure decisions.”

This is a must read about the manipulative involvement of the government in markets

Excerpt

http://www.marketskeptics.com/2009/06/still-researching-corruption-at.html

Monday, June 22, 2009

//

Still Researching Corruption At The Treasury

by Eric deCarbonnel

Need another day to put everything together. In the meantime, below is another interesting article on the The Visible Hand of Uncle Sam.

(emphasis mine) [my comment]

… in a 1992 article, John Crudele quoted someone who maintained strong connections in the Republican Party as stating that the government intervened to support the stock market in 1987, 1989 and 1992:

Norman Bailey, who was a top economist with the government’s National Security Council during the first Reagan Administration, says he has confirmed that Washington has given the stock market a helping hand at least once this year.

“People who know about it think it is a very intelligent way to keep the market from a meltdown,” Bailey says.

Bailey says he has not only confirmed that the government assisted the market earlier this year, but also in 1987 and 1989.

Now a Washington-based consultant, Bailey says the Wall Street firms may not even know for whom they are buying the futures contracts. He says the explanation given to the brokerage firms is that the buying is for foreign clients, perhaps the central banks of other countries. [Emphasis added.]

…
It is unclear where the money for such futures purchases came from, although in a 1995 article, John Crudele advanced a plausible explanation. Referring to the U.S. Exchange Stabilization Fund, he wrote, “Sources have told me that in the early 1990s it was secretly used to bail the stock market out of occasional lapses.” He further stated one source indicated “that the account used Wall Street firms as intermediaries and that Goldman [Sachs]… was used most often as a go-between.” Crudele conceded that he could not confirm the allegations and, not surprisingly, that the Fed denied all of them.

They would issue a similar denial when queried by a U.S. congressman in the fall of 1998. According to an October 1999 report by Marshall Auerback of Veneroso Associates, Representative Ron Paul wrote both the Fed and Treasury, asking:

…has there ever been or does there currently exist a policy by the U.S. Treasury Department or Federal Reserve to intervene in the U.S. equity market through purchases of stocks or S&P futures, either directly for Treasury Department accounts such as the Exchange Stabilization Fund, for Federal Reserve accounts or by proxy – by having broker dealers purchase S&P500 futures when the stock market is threatening to crash on the understanding that they will be repaid for any subsequent losses through the Fed Open market operations or favored treatment at Treasury auctions? [Emphasis added.]

The report by Veneroso Associates stated that Fed Chairman Alan Greenspan responded:

The Federal Reserve has never intervened in the U.S. equity market in any form, either in the equity market itself or in the futures market, for its own account, for the ESF, or for any other Treasury account. The Federal Reserve has never encouraged broker/dealers to purchase any stocks or stock futures contracts. The Federal Reserve has never had any “understandings” with any firms about compensating them in any manner for possible losses on such purchases. [Emphasis added.]

Marshall Auerback then analyzed the response, suggesting that Greenspan may have dodged the issue:

Apparently, a very direct response to a very direct question, which would appear to settle the issue once and for all. We discussed this response with a former Fed counsel and asked his opinion. He immediately pointed out that the answers given by Chairman Greenspan only referred to actions undertaken by the Federal Reserve, and not by any which may or may not have been taken by the Treasury. This may be proper, given that the very same question was posed to Treasury Secretary Rubin. However, the former Fed counsel did point out that some members of the Fed, notably Mr. Peter Fisher, “wore” both Treasury and NY Federal Reserve hats. Not only is Peter Fisher the number 2 man at the New York Fed under [William McDonough], but he also has two vital roles which are carried out in his function as a member of the U.S. Treasury – namely, the management of the Exchange Stabilization Fund (ESF) and the manager of the foreign custody accounts held at the NY Fed. Chairman Greenspan’s foregoing answer, according to the former Fed counsel, could be technically correct. But it does not elaborate on the ambiguous two-fold role played by Peter Fisher of the New York Federal Reserve, nor does it cover his Treasury related responsibilities as the manager of the ESF and custody accounts of foreign central banks held at the NY Fed. So the answer does not conclusively resolve the question of official intervention in the stock market.27 [Emphasis in original.]

A more definitive answer would not be forthcoming from the Treasury. In contrast to Greenspan’s prompt response, they apparently took a full year to answer Ron Paul’s letter. More importantly, the Treasury never directly addressed whether the department or the Exchange Stabilization Fund had intervened in the stock market. In fact, Veneroso Associates would observe:

A former Fed counsel described this response as “an elaborate non answer to the question,” noting that the response speaks only to the role of the Federal Reserve, and not to the Treasury, nor the Exchange Stabilization Fund, nor the management of the foreign custody accounts in the NY Federal Reserve. This, despite the fact that the respondent here is the Treasury, not the Federal Reserve. It is a rambling philosophic response, which contrasts quite markedly with the more direct answer given by the Fed.

Thus, a question that could have been answered conclusively has instead raised even more doubts. [Emphasis in original.]

A statement cited previously may shed some light on the situation. When John Crudele quoted Norman Bailey as confirming government stock market activity in 1987, 1989 and 1992, he also wrote that according to the former National Security Council economist, “the explanation given to the brokerage firms is that the buying is for foreign clients, perhaps the central banks of other countries.” Just who might have provided such an explanation? One person who could do it convincingly would be the New York Federal Reserve official in charge of the System Open Market Account. As Auerback notes, this official’s responsibilities include “the management of the Exchange Stabilization Fund (ESF) and… the foreign custody accounts held at the NY Fed.” Recall Crudele’s information “that in the early 1990s [the ESF] was secretly used to bail the stock market out of occasional lapses.” A reasonable scenario then unfolds: The person who placed the orders for futures contracts evidently told the firms that the buying was for foreign clients. This would have been believable, given one of the New York Fed official’s responsibilities. But such an explanation would have conveniently masked the true buyer, which likely was the Exchange Stabilization Fund.

A Treasury-Fed Split?

The Fed’s denial of stock market activity, combined with claims that the Treasury controlled ESF did intervene, is intriguing when considered in the context of two 1995 Federal Open Market Committee transcripts. At the January 31 meeting, St. Louis Federal Reserve President Tom Melzer expressed concern about the Fed’s proposed participation with the Treasury in the bailout of Mexico then under discussion. The Clinton administration had decided to use the ESF to fund the rescue when Congress refused to grant an appropriation. Melzer worried:

In effect, one could argue that we would be participating in an effort to subvert that will of the public, if you will. I do not want to be too dramatic in stating that. This could cause a re-evaluation of the institutional structure of the Fed in a very fundamental and broad way.35

To which Greenspan cryptically, yet ominously, responded:

I seriously doubt that, Tom. I am really sensitive to the political system in this society. The dangers politically at this stage and for the foreseeable future are not to the Federal Reserve but to the Treasury. The Treasury, for political reasons, is caught up in a lot of different things. [Emphasis added.]

At the March 28 meeting, FOMC members again expressed hesitation about the Fed’s planned participation with the Treasury in the Mexican package. Once more, Greenspan attempted to alleviate any fears, but also noted:

We have to be careful as to precisely how we get ourselves intertwined with the Treasury; that is a very crucial issue. In recent years I think we have widened the gap or increased the wedge between us and the Treasury…. In other words, we have gone to a market relationship and basically to an arms-length approach where feasible in an effort to make certain that we don’t inadvertently get caught up in some of the Treasury initiatives that they want us to get involved in. Most of the time we say “no.” [Emphasis added.]

These passages obviously suggest that by 1995 the Treasury was engaging in activities that Greenspan deemed politically dangerous and, accordingly, with which he was very reluctant to be associated. It is only logical that these actions had not been disclosed publicly by the time he made these two statements. Had they been public, the Treasury would have already suffered the consequences of the political dangers of which Greenspan spoke.

Greenspan revealed what looks to have been a major split between the central bank and the executive branch of government. He spoke of having “widened the gap” between the Fed and Treasury, taking their relationship to a market-based one. This “arm’s-length approach” was likely the Fed’s attempt to preserve its credibility if the Treasury’s initiatives resulted in a political storm. Whatever Treasury was up to sounds rather questionable, judging by Greenspan’s explicit statements about political dangers and also his implied worry that the central bank could “inadvertently get caught up in some of the Treasury initiatives that they want us to get involved in.” He seems to have fretted that even the appearance of the Fed’s participation in these activities could be politically toxic for a central bank that prides itself on independence. Precaution thus appears to have been the Fed’s approach when dealing with the Treasury. Of course, according to Greenspan, the Fed only said no to the Treasury most of the time, indirectly admitting that in at least some instances the central bank participated in the unspecified initiatives.

We do not know what these initiatives were and, indeed, Greenspan’s frustrating ambiguity suggests he was cognizant of the fact that his words were being recorded. So we are left to speculate. It’s a reasonable assumption that whatever the Treasury was doing was market-related. This likelihood is indicated by the Treasury’s apparent attempts to include the Fed in the initiatives. The central bank is not responsible for fiscal policy, so logically its only use to the Treasury would be to execute or participate in some market-related transactions. This is further corroborated by Greenspan’s comment that the Fed had moved to a “market relationship” where feasible with the Treasury. That statement suggests that the Fed had to conduct at least some of the initiatives on behalf of the Treasury.

At this point we return to the Exchange Stabilization Fund, which is controlled by the Treasury Secretary. According to the New York Fed’s website, “ESF operations are conducted through the Federal Reserve Bank of New York in its capacity as fiscal agent for the Treasury.” As a result, it is easy to see how the Fed could become entangled in questionable Treasury initiatives.

Speaking of such endeavours, at the January 31, 1995, meeting the Federal Reserve’s general counsel revealed that the ESF conducted previously undisclosed gold swaps, and, while not spelling out the crucial details, a close reading of the transcript suggests they were recent transactions. Six years later, in an apparent cover-up, that same lawyer would claim not to know of any such dealings. But gold was probably not the only area in which the ESF dealt covertly. According to Greenspan, as of 1995 the Treasury was caught up in not one or a few, but “a lot of different things.” While only speculation, it is certainly possible that the Treasury used the ESF for stock market interventions that the central bank deemed unnecessary. If so, the Fed would logically have been concerned that its participation could draw criticism if such a scheme were revealed.

… Whatever the case, the 1995 FOMC transcripts suggest that the Clinton administration left office having managed to keep politically dangerous revelations from leaking into the public domain.

The Plunge Protection Team article was not the last to hint at the government’s resolve to protect the market. In 1998, Crudele described another apparently well-orchestrated leak, this time revolving around the activities of the aforementioned Peter Fisher:

The Federal Reserve [or treasury] is just dying to admit that it has been doing brilliant – but alas, questionable – things to keep the stock market bubble inflated. A Wall Street Journal article on Monday is the closest the Fed has ever come to making this admission, although the newspaper apparently didn’t know what it was on to.

The Journal story was about the bailout of the hedge fund, Long-Term Capital Management, and how the Fed stepped in to save the day.60

The story gets interesting in the seventh paragraph, when it starts talking about Peter Fisher, the 42-year-old No. 2 man at the New York Fed, whose “official” job is running the Fed’s trading operation. [Remember, Fisher also manages of the Exchange Stabilization Fund (ESF) and foreign custody accounts held at the NY Fed as a member of the US Treasury]

“In that capacity, Mr. Fisher is the Fed’s [and treasury’s] eyes and ears on the inner workings of stock, bond and currency markets and is given a wide degree of latitude about deciding when certain events pose broader risks,” the article says.

“He begins most workdays at 5 a.m. by checking the status of overseas markets… and ends them 11 p.m. the same way. In between, Mr. Fisher SWAPS [Crudele's emphasis] intelligence and rumors with traders and dealers from his office in the Fed’s 10th-floor executive suite that overlooks the trading floor he runs,” the piece continues.

As I pointed out in a previous column, the market has done some strange things in the wee hours of the morning, especially between 5 a.m. and 7 a.m., which ultimately affect how equities do in the New York market.

Crudele then asked of Fisher:

What exactly does he give to these traders and dealers he talks to at 5 a.m. in the morning? “Swaps,” which is the word the Journal reporter came away with, implies a give-and-take. What is Fisher, the second highest person in the New York Fed’s hierarchy giving to traders?

Just gossip? Or is Fisher giving away what Wall Street calls inside information.

…

Whether any actual intervention occurred is not clear. However, the Observer noted weeks later:

Analysts say the Working Group on Financial Markets, nicknamed the “Plunge Protection Team,” was extremely successful in helping coordinate a response across the markets when they reopened last Monday.

The team was set up in the late eighties by Ronald Reagan and came into its own in 1998 when it drew up an emergency response in the wake of the collapse of the giant hedge fund, Long Term Capital Management. In the past it has comprised Fed Chairman Alan Greenspan, U.S. Treasury Secretary Paul O’Neill, the heads of the various U.S. stock exchanges and the bosses of a handful of leading investment banks.

However, this time around no fewer than 35 individuals – including representatives of other central banks – are thought to have been in the team.

The challenge was to agree on how to react to the events. Harmony was in danger of being jeopardized when the members representing investment banks clashed with those representing the stock exchanges, who wanted an early resumption to trading. The banks, for their parts, were concerned that staff and infrastructure were too battered to resume in the same week as the attacks.

Eventually the investment banking lobby won the day and when the markets did open on Monday there was an unprecedented level of cooperation between the financial institutions. Short selling seems to have been kept to a minimum as the banks resisted the temptation to bet on the markets plunging. [Emphasis added.]

The significance of all this is difficult to overstate. Nowhere in government statements about the Working Group on Financial Markets or the Washington Post article detailing its activities is mention made of private-sector membership. Although the Working Group is supposed to consult with, among others, “major market participants to determine private sector solutions wherever possible,” this is a far cry from the role described by the media reports cited above. They indicate that the banks were not simply consulted about issues, but instead played an integral role in implementing the agenda of the Plunge Protection Team. Along these lines, George Stephanopoulos claimed that the PPT had “kind of an informal agreement among major banks to come in and start to buy stock if there [appeared] to be a problem.” So while many people exaggerated the revelations explicitly made in the 1997 Washington Post article, their suspicions were apparently correct after all.

…

“But Heller’s idea was different. He wanted a more direct approach, especially when the bond and currency markets were becoming uncontrollable…. Heller believed that in an emergency, the Fed should start buying stock index futures contracts until it managed to pull stocks out of their nosedive. Essentially, whenever there is heavy buying of these futures contracts it causes the underlying stock market to rise. The futures contracts can be bought cheaply; they are highly leveraged so you can get more bang for your buck, and they eliminate the need for a rigger to purchase, say, all 30 stocks that make up the Dow. Heller explained that the process was simple. And it is. The trouble is, the government never has had authority to rig the stock market.” [email from Bill King, March 11, 2003 - kingreport@ramkingsec.com]

King, who at the time was running several equity trading desks in New York, goes on to say that it was during Q1 of 1990, as the Japan bubble was bursting, that massive S&P futures buying began to be used extensively by the trusted agents of the PPT, big “name” brokers in New York. During the crises of the late 90’s, this massive buying increased even more. By this time, many skeptics of such manipulation in the investment advisory business began to realize it was definitely taking place. [Emphasis added.]

According to Hultberg, King says it was during the first quarter of 1990 “that massive S&P futures buying began to be used extensively by the trusted agents of the PPT.” Along these lines, after September 11, the Observer stated that the PPT had previously acted in the early 1990s. Furthermore, John Crudele wrote in a February 20, 1990, article that “the stock index futures markets were buzzing with rumors that Washington was putting pressure on big trading houses to give the market a lift.” This was mere months after Heller’s proposal and thus may represent the effective entrenchment of market intervention in U.S government policy. The 1987 and 1989 rescues confirmed by former National Security Council economist Norman Bailey, by contrast, would appear to have been ad hoc activities. These likely were implemented with official approval, but not yet firmly instituted as the government’s typical response to a market plunge.

…

A close comparison between this statement and the remarks of George Stephanopoulos on ABC is revealing. Stephanopoulos said the PPT included the “Federal Reserve, big major banks, representatives of the New York Stock Exchange and the other exchanges.” While not mentioning the PPT by name, John Mack reported that a meeting occurred after September 11 and apparently comprised “the firms… the New York Stock Exchange… the Federal Reserve, [and] the SEC.” Other than the SEC, the two lists are the same, suggesting that accidental leaks by the former presidential adviser and the CSFB chief executive have essentially confirmed the existence of a PPT that includes the private sector. Furthermore, the list provided by John Mack is exactly identical to one detailed by the Scotsman newspaper, where they claimed that the PPT includes firms as well as “members of the Securities and Exchange Commission, Alan Greenspan’s Federal Reserve Bank and NYSE chairman Richard Grasso.”

The fact that the publicly acknowledged Working Group and the unspoken PPT differ in their constitutions might explain a report from the U.S. General Accounting Office in 2000. It stated: “Agency officials involved with the Working Group were generally averse to any formalization of the group and said that it functions well as an informal coordinating body.” As formalization would no doubt restrict the ability of the Working Group to grant status to the private sector, the reluctance of government officials to do so is not surprising. Instead, the government has apparently used the publicized Working Group as clever cover for the activities of the Plunge Protection Team. This possibility is supported by press reports cited previously in which the Working Group and the PPT are referred to interchangeably.

…

The dollar’s miraculous recovery, apparently thanks to large Wall Street firms, provides a rare glimpse into recent market interventions by the U.S. government. Rather than intervene directly in the markets themselves, the U.S. central bank [acting on treasury’s behalf] evidently gave instructions to trusted surrogates who did the Fed’s bidding. Importantly, the Fed apparently did not merely provide instructions to each bank separately. Stephanopoulos stated that at the time of LTCM’s collapse, “all of the banks got together” to prop up the currency markets.” This was clearly a collaborative effort.

The LTCM revelation is also significant because it indicates that the Plunge Protection Team isn’t merely concerned with the stability of the stock market. Supporting this, a report cited earlier from the Scotsman newspaper stated that in the aftermath of September 11, the PPT would “also attempt to deflect any pressure on commodity markets.”

Taken together, these revelations demand a radical revision of prevailing beliefs about the current state of markets, not to mention the relationship between the private sector and the U.S. government. If major financial institutions are knowingly implementing government policy with regards to important markets, they have essentially become de facto agencies of the state. Just as importantly, the government’s role has also changed markedly. Previously content not to intervene in certain spheres, now the Fed and Treasury apparently regard the stabilization of markets to be within their responsibilities.

The continuing silence of government officials about this expanded reach is easily explained. First, they no doubt recognize that an electorate supportive of free markets would frown upon market interventions. More pragmatically though, the government must also realize that to publicly acknowledge such activities would be to invite the greatest of moral hazard situations. To use a famous quote, the risks would be socialized while the rewards would remain privatized. Such a disconnect invites increasingly reckless speculation by investors who believe that the government stands ready to rescue them should crises arise.

…

Conclusion

Given the available information, we do not believe there can be any doubt that the U.S. government has intervened to support the stock market. Too much credible information exists to deny this. Yet virtually no one ever mentions government intervention publicly, preferring instead to pretend as if such activities have never taken place and never would. It is time that market participants, the media and, most of all, the government, acknowledge what should be blatantly obvious to anyone who reviews the public record on the matter: These markets have been interfered with on numerous occasions. Our primary concern is that what apparently started as a stopgap measure may have morphed into a serious moral hazard situation, with market manipulation an endemic feature of the U.S. stock market.

We have not taken a position on the wisdom of intervention in this paper, largely because exceptional circumstances could argue for it. In many respects, for instance, the apparent rescue after the 1987 crash and the planned intervention in the wake of September 11 were very defensible. Administered in extremely small doses and with the most stringent safeguards and transparency, market stabilization could be justified.

But a policy enacted in secret and knowingly withheld from the body politic has created a huge disconnect between those knowledgeable about such activities and the majority of the public who have no clue whatsoever. There can be no doubt that the firms responsible for implementing government interventions enjoy an enviable position unavailable to other investors. Whether they have been indemnified against potential losses or simply made privy to non-public government policy, the major Wall Street firms evidently responsible for preventing plunges no longer must compete on anywhere near a level playing field. It is most unfair that the immensely powerful have been further ensconced in their perched positions and thus effectively insulated from the competitive market forces ostensibly present in our society.

In addition to creating a privileged class, the manipulation also has little democratic legitimacy in the sense that the citizenry has not given its consent. This has tangible ramifications. By not informing the public, successive U.S. administrations have employed a dangerous policy response that is subject to the worst possible abuse. In this regard, the line between national necessity and political expediency has no doubt been perilously blurred.

We can only urge people to see what the evidence indicates and debate what is and ought to be a very contentious matter. The time for such a public discussion is long overdue.

Key points:

1) The New York Federal Reserve official in charge of the System Open Market Account has two vital roles which are carried out in his function as a member of the U.S. Treasury. He is responsible for managing the Exchange Stabilization Fund (ESF) and the foreign custody accounts held at the NY Fed.

2) The Fed is a proxy for the treasury. The treasury doesn’t have the facilities to conduct open market operations (buying/selling securities) so it uses the Fed’s System Open Market Account (SOMA). This misleads people into thinking the Fed is the one responsible for manipulating markets.

3) Wall Street firms may not even know for whom they are buying the futures contracts, as orders coming from the Fed’s SOMA can be attributed to foreign custody accounts held at the NY Fed.

4) Interventions apparently started as a stopgap measure which morphed into a serious moral hazard situation, with market manipulation an endemic feature of the U.S. stock market.

5) The two Greenspan quotes which shows how the treasury lead the way towards more market manipulation:

I seriously doubt that, Tom. I am really sensitive to the political system in this society. The dangers politically at this stage and for the foreseeable future are not to the Federal Reserve but to the Treasury. The Treasury, for political reasons, is caught up in a lot of different things.

We have to be careful as to precisely how we get ourselves intertwined with the Treasury; that is a very crucial issue. In recent years I think we have widened the gap or increased the wedge between us and the Treasury…. In other words, we have gone to a market relationship and basically to an arms-length approach where feasible in an effort to make certain that we don’t inadvertently get caught up in some of the Treasury initiatives that they want us to get involved in. Most of the time we say “no.”

6) At the January 31, 1995, meeting the Federal Reserve’s general counsel revealed that the ESF conducted previously undisclosed gold swaps

7) Mr. Fisher (who ran the Fed’s SOMA) SWAPED intelligence and rumors with traders and dealers from his office in the Fed.

It was during Q1 of 1990, as the Japan bubble was bursting, that massive S&P futures buying began to be used extensively by the trusted agents of the PPT, big “name” brokers in New York. During the crises of the late 90’s, this massive buying increased even more.

9) John Crudele wrote in a February 20, 1990, article that “the stock index futures markets were buzzing with rumors that Washington was putting pressure on big trading houses to give the market a lift.” This shows that it is Washington/treasury which drove big trading houses to manipulate the market.

10) Goldman Sachs was used most often as a go-between the treasury and Wall Street.

11) Working Group and the unspoken PPT function as an informal coordinating body which includes the private sector and “manages” US markets.

I will go into everything in more detail tomorrow.