ENDEMIC CORRUPTION IN BRUSSELS AND HALLIBURTON

chrisstory

WHAT HAVE THEY GOT IN COMMON? BOTH ARE INSTITUTIONALLY PUTRID AND BEYOND REDEMPTION: NEW UNDERWORLD DISORDER DENS OF INIQUITY

Sunday 2 May 2010 00:01

• The Add-ons and Updates posted at the top of this report have now been migrated to the foot of the report. That does not mean they are less relevant than they were [see below].

• THE EUROPEAN COMMISSION IS A CRIMINAL ENTERPRISE

• GOVERNMENT TRANSFERS OF VAT RECEIPTS TO BRUSSELS ARE ILLEGAL

• ‘CLEAN UP YOUR ACCOUNTS TO OUR COMPLETE
SATISFACTION WITHIN ONE YEAR, OR WE KEEP THE LOT’

• OBSCENE TO PAY MONEY ILLEGALLY TO BRUSSELS WHEN BRITAIN IS BUST

THE GULF OF MEXICO OIL PLATFORM EXPLOSION:
CEMENT CASING THAT BLEW WAS INSTALLED BY HALLIBURTON :
MORE U.S./DVD SABOTAGE AGAINST THE BRITISH? YES… SEE UPDATE

EXPOSURE OF HALLIBURTON’S SCAMMING OPERATIONS: 26 MAY 2008

• THE HALLIBURTON DRUG THUG AND THE STOLEN FEDERAL SALARIES SCAM

• WHAT THE FBI FOUND IN THE CIA-HALLIBURTON DRUG THUG’S APARTMENT

• MULTIPLE SALARIES PAID INTO SWISS BANK ACCOUNTS

• HALLIBURTON’S THIEVES INSIDE THE CIA AND THE INEVITABLE CONSEQEUENCES

• TENET AND CHENEY REFUSED TO ADDRESS THESE ISSUES

• CHENEY WAS INFORMED IN A RECORDED PHONE CALL

• COUNTERINTELLIGENCE OPERATION AGAINST TENET AND CHENEY BACKFIRES

• OVER 50% OF HALLIBURTON SALES BREACHED NATIONAL SECURITY

• THEFTS OF CIA COMPUTERS LEADING TO AN UNIMAGINABLE CATASTROPHE

• HALLIBURTON CROOK BRAGGED ABOUT LUCRATIVE SALE TO THE RUSSIANS

• THE CATASTROPHE, COURTESY OF THE CORRUPTION OF TENET, CHENEY AND BUSH

• DEATHS DUE TO THE STEALING OF A CIA COMPUTER

• ENTER THE ‘DARK LORDS’: DIRECTLY CONNECTED TO BUSH
‘CHENEY & BUSH TOOK THE MONEY FOR THE COMPUTERS USED FOR THE MURDERS’

• BUSH AND CHENEY RESPONSIBLE FOR 168 CIA DEATHS, COVERED UP (HITHERTO)

• HALLIBURTON LINKED TO THESE MURDERS OF CIA PERSONNEL

• CIA INVESTIGATOR TOLD TO ‘BACK OFF, OR ELSE’

• BIO-FEEDBACK EQUIPMENT STOLEN BY HALLIBURTON FOR THE RUSSIANS

• CHENEY THREATENS TO KILL THE VETERAN CIA OPERATIVE PERSONALLY

MISPRISION OF FELONY: U.S. CODE, TITLE 18, PART 1, CHAPTER 1, SECTION 4:
‘Whoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some Judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both’.

‘Seeing what’s at the end of one’s nose requires constant effort’. George Orwell.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

• BOOKS: Edward Harle Limited has so far published FIVE intelligence titles: The Perestroika Deception, by Anatoliy Golitsyn; Red Cocaine, by Dr Joseph D. Douglass, Jr.; The European Union Collective, by Christopher Story; The New Underworld Order, by Christopher Story; and The Red Terror in Russia, by Sergei Melgounov. All titles are permanently in stock. We sell books DIRECT.

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• By Christopher Story FRSA, Editor and Publisher, International Currency Review, World Reports Limited, London and New York. For earlier reports, press the ARCHIVE. Order your intelligence subscriptions and ‘politically incorrect’ [i.e., correct] intelligence books online from this website.

• CMKM/CMKX CASE DOCUMENTS:
Press Archive for this report [29th January 2010]
Case Number CV10-00031 JVS (MLGx):
SERVICE OF CMKM.CMKX $3.87 TRILLION SUIT VS. S.E.C.
You can also access the CMKM/CMKX text at: http://viewer.zoho.com/docs/paKdda
The biggest lawsuit in world legal history: The phantom share giga-scandal.

• AS PREVIOUSLY ANNOUNCED, OUR LANDLINES REMAIN CLOSED BECAUSE OF UNLAWFUL HARASSMENT. WE CAN BE CONTACTED VIA EMAIL OR THE WEBSITE ‘CONTACT US’ FACILITY.

NEW REPORT STARTS HERE:
NEW: LETTER FROM VIENNA [5TH MAY] ADDED AT FOOT OF THIS SEGMENT.

VIDEOS OF THE EDITOR’S SPEECH IN LONDON ON 31ST OCTOBER 2009
We append below the links to the videos of the Editor’s speech. The Editor had no idea that his speech was being filmed, and neither was he aware that it was rebroadcast on BBC-5 on the 14th November 2009. We didn’t post this earlier because the Editor isn’t in the business of emulating Peacock Obama. But a malicious distorted image of the Editor is repeatedly shown on a notorious US controlled ‘Black’ intel Brit-hating disinformation website, which scandalously pumps out dirty, clumsy and fabricated anti-British ‘Black’ propaganda and lies worse than anything experienced from the Soviets at the height of the Cold War: so by showing this speech (in which the Editor had something very important to say: see below) you will see that the Editor’s face doesn’t consist of a squashed nose, forty blemishes, ten bunions, horns and a forked tongue.

http://www.youtube.com/watch?v=Jug-W-DKcms
http://www.youtube.com/watch?v=lB18PIYbSYw&;feature=related
http://www.youtube.com/watch?v=jJyUKbmBeJs&;feature=related

THE EUROPEAN COMMISSION IS A CRIMINAL ENTERPRISE
The subject-matter of the speech was that since the European Commission’s accounts have not been APPROVED by the European Union Collective’s own Court of Auditors based in Luxembourg for 14 years, the European Commission is a criminal enterprise. This was specifically reconfirmed for us by an official at the Court of Auditors named Novaks, in person.

A senior official named Craig with the UK Serious Fraud Office confirmed separately that it is a criminal offence for taxpayers’ funds to be remitted into the hands of a criminal enterprise.

GOVERNMENT TRANSFERS OF VAT RECEIPTS TO BRUSSELS ARE ILLEGAL
This being the case, the British and other EU ‘Member States” satrap Governments are knowingly engaged in the criminal act of illegally transferring UK taxpayers’ funds to a criminal enterprise, which in turn implies that VAT taxpayers can sue their Governments for the recovery of their funds which have been remitted contrary to the law into foreign criminal accounts.

The Editor recommends that (in the UK context: other EU satrap ‘Member States’ can do as they please), an IMMEDIATE STOP MUST BE ORDERED TO THIS OFFICIAL CRIMINAL PRACTICE and that 100% of UK VAT accruals be diverted FORTHWITH into a special Treasury account sine die.

‘CLEAN UP YOUR ACCOUNTS TO OUR COMPLETE
SATISFACTION WITHIN ONE YEAR, OR WE KEEP THE LOT’
The European Commission should be told that the British authorities expect a total rehabilitation and clean-up of ALL EC accounts for the past 14 years to be implemented, accompanied by the necessary overdue criminal investigations and prosecutions, with the outcomes to be approved not only by the Court of Auditors but also to the complete satisfaction of the authorities in London; and that if this is not done within one calendar year of the Brussels Commission being so advised, all accumulated and future VAT receipts will be annexed to offset the colossal indebtedness of the British Government incurred under Gordon Brown’s incompetent tenure.

The advantage of this approach is that this will be a unilateral measure by the British Government, overriding all the convoluted Talmudic claptrap and diversionary self-serving, deliberately opaque verbiage routinely spewed out by the Eurocrats in order to erect a bureaucratic smokescreen to separate the Commission from meaningful scrutiny of its institutionalised criminality.

OBSCENE TO PAY MONEY ILLEGALLY TO BRUSSELS WHEN BRITAIN IS BUST
More to the point, it is OBSCENE for the British authorities to be engaged in this criminal practice of transferring VAT receipts to Brussels when the Government’s finances are in TOTAL DISARRAY.

The fact that this CRIMINAL OFFICIAL BEHAVIOUR has continued notwithstanding Britain’s Brown-generated fiscal crisis is a scandal of monumental proportions, indicating that the UK bureaucratic and political establishments have taken leave of their senses, placing crass EUdolatry ahead of national economic and financial survival. THIS IS A TRULY MONSTROUS STATE OF AFFAIRS.

NEW: LETTER FROM VIENNA: 5TH MAY 2010: PAN-GERMANS IN THE BUNDESTAG LAMENT THE IMMINENT COLLAPSE OF THE LATEST VERSION OF THEIR CORRUPT PAN-EUROPA:

Our Vienna correspondent, Wolfgang Perthen, writes [with a few interpolations by the Editor]:

Dear Mr. Story,

I’m right now watching on German TV, a live broadcast from the floor of the German Bundestag.

In a formal “Regierungserklärung” in the face of the “Greek” and therefore all-European currency problem (and ahead of this Friday’s parliamentary vote on German financial support for Greece), Chancellor Angela Merkel (who is otherwise not too famous for clear statements) emphasised her willingness to solve the current crisis and to proceed on the path to further European integration as envisioned since the days of Adenauer (!!!).

EVEN AS THE E.U. ROOF IS CAVING IN, THE FORMER SECRETARY OF THE AGITATION AND PROPAGANDA DEPARTMENT OF THE YOUNG COMMUNISTS AT MARX-LENIN UNIVERSITY, IS RECOMMENDING NEW CONSTRUCTION! [Ed]. Merkel stated also that a European Union without its most powerful economy, Germany, would be unthinkable.

Opposition leader, Frank-Walter Steinmeier (SPD), even expressed the view that “Europe” is now going through the most severe crisis since the Treaties of Rome.

Yet, the only logical way out of the current dilemma (everywhere recommended by experienced economists anyway: see International Currency Review throughout the 1990s: Ed.), namely allowing Greece (and possibly Portugal, Spain, Ireland, and, who knows, Italy) out of the currency union so they can re-introduce their own currencies and thus be able to devalue (and accordingly prevent further contagion throughout the region) is precluded.The Euro is indeed a sacred cow.

As it represents (and all I’m able to grasp in this realm I attribute to the literature of Golitsyn and Story!) a key political symbol of anti-national political union, NO MATTER HOW DEEP THE CRISIS, they won’t allow a single country out of the failing currency system, as this would send “the wrong signal”…. Accordingly, the entire spectrum of the peoples of Europe is now belatedly awakening to the reality that the EU is indeed (as you, Mr Story, have so extensively described) a POLITICAL COLLECTIVE: Together we stand, together we fall. ‘We’ve got to stick together, or we all go down: WHICH IS THE REVERSE OF THE TRUTH. GREECE, PORTUGAL, IRELAND, SPAIN NEED TO GET OUT OF THE COLLECTIVE CURRENCY, AS OUR JOURNAL REPEATEDLY PREDICTED: Ed..

As for Germany, the driving force of the Euro project, they now – quite predictably – prove to be the same old “Dummkopfs” (in proper German: Dummköpfe) as has always been the case. There seems to be an unrootable characteristic in the German national “psyche”, that believes it can MANAGE and CARRY (and, of course, dominate) everything. The Germans – however capable, ambitious, and perfectionist – seem to be the No. 1 nation consisting of “genetic” totalitarians in the world.

And they lack – as you frequently indicate – this snakish quality of a “higher intelligence”, call it Soviet-Russian, Mongol, or Jewish, that makes the DECISIVE difference in geopolitics. In that sense, the Germans, with all their self-esteem and claims of “responsible leadership”, in the end always lose. They tried, yet again, by stealth this time, to take over the whole of Europe: now the collective currency that they have forced upon almost everybody, is falling back on their heads.

Their role as a self-declared politico-economic locomotive, their arrogant load of “responsibility”, now turns out to be a curse for them (as in WW II). Strangely, if one listens to the speeches in the German Bundestag, they seem to be not so much worried about Germany (as every other country, naturally, is now concerned, first and foremost, about its own survival), BUT RATHER ABOUT THE PROSPECT THAT THEIR SACRED PAN-GERMAN HEGEMONY OVER EUROPE IS FALLING APART.

At the same time, while Germany’s nice and orderly Europe starts collapsing and social unrest and revolutionary pressure threatens to accumulate (certainly fuelled by the Moscow-controlled Fifth Column), the Soviets see their moment in history approaching.

Please do watch this coming Sunday’s (May 9) military parade on Red Square: they have prepared an even more impressive display of their military power than last year!

All the best to you, Sir,
Sincerely,
Wolfgang Perthen, Vienna

THE GULF OF MEXICO OIL PLATFORM EXPLOSION:
CEMENT CASING THAT BLEW WAS INSTALLED BY HALLIBURTON :
MORE U.S./DVD SABOTAGE AGAINST THE BRITISH? YES…
Just as our suspicions from the outset over the Polish air catastrophe at Smolensk proved to be justified, so do we and many others smell a giant rat concerning the explosion and fire at the BP oil platform in the Gulf of Mexico. And the face of the rat bears an uncanny resemblance to the ugly physiognomy of George Bush Sr.

• UPDATE, 3RD MAY 2010: Anecdotal evidence is indeed emerging pointing to sabotage. The lack of the usual press-frenzy interviews with survivors is also suspicious. But the main reason that we suspect sabotage is that this operation has coincided with key developments behind the scenes involving the British which has severely inconvenienced the evil American criminal kleptocracy. Seen in that light, this is a blatant sabotage operation tantamount to an act of war against the UK perpetrated as a revenge attack for the basest of motives. Unfortunately at this juncture we can’t elaborate on what has been going on behind the scenes, but you can draw your own conclusions.

Further indications that this is a deliberate, malicious revenge operation against British interests (a very dangerous departure, if true, as there is such a phenomenon as ‘tit for tat’) are evident in the harsh, mafioso-style language emerging from the throats of US officials.

For instance, Mr Kenneth Salazar, US Interior Secretary (i.e., the ‘Minister of the Interior’) is reported as having stated on 2nd May: ‘Our job basically is to keep the boot on the neck of [BP] to carry out the responsibilities they have both under the law and contractually to move forward and stop this spill’, even though it was almost certrainly a consequence of a revenge sabotage and provocation operation perpetrated by disaffected rogue revolutionary cadres within the US structures working to the CIA/DVD agenda.

For starters, the cement casing that blew up was installed by the corrupt Cheney-CIA operation called Halliburton. Apparently this is the second time in a year that a Halliburton casing has failed catastrophically on an oil rig.

It may be recalled from our earlier coverage that Halliburton operates a huge parasitical buying and ordering department within the Central Intelligence Agency and a parallel parasitical department inside the Pentagon, and that both these entities scam the opposite host on a routine basis, at the expense of the US taxpayer. Whether this unbelievable duplicated CIA scandal was investigated and wound up after we and others exposed it [see report dated 26th May 2008, excerpted below: ARCHIVE], we don’t know. What we do recall is it became the subject of a Grand Jury investigation.

Horror stories associated with this colossal corruption op. included the faulty Halliburton gun manufactured in Saudi Arabia that routinely exploded and killed the gunner, which Halliburton continued selling long after the accidents in question (plus the despicably amoral cover-up of the reason for the gun operators’ deaths); and the notorious delivery of 1,000 toasters which could be bought for $19.99 at any hardware store, but which Halliburton invoiced to the Pentagon for $1,891 a piece, on the spurious pretext that they were manufactured from a special metal.

Now the oil rig that exploded in the Gulf of Mexico at 10:pm CST on 20th April 2010, was ‘Deepwater Horizon’ owned by Transocean Limited, based in Zug, Switzerland, with its principal office located in HOUSTON, Texas, and other offices in Zug and Vernier, Switzerland, and in George Town, Cayman Islands. Zug is where Marc Rich, real name HANS BRAND, the long-range Deutsche Verteidigungs Dienst (DVD) operative and East-West intermediary, is based.

The explosion occurred on the very same day that Transocean shares started trading in Europe, as is confirmed by the following Press Release dated 20th April 2010:

http://www.deepwater.com/fw/main/News-748.html?c=113031&;p=irol-news&nyo=0

‘ZUG, SWITZERLAND, Apr 20, 2010 (MARKETWIRE via COMTEX) — Transocean Ltd. (NYSE: RIG) (SIX: RIGN), the world’s largest offshore drilling contractor, announced that its shares will begin trading on SIX Swiss Exchange (“SIX”) today under the symbol (RIGN). Transocean’s shares also trade on the New York Stock Exchange under the symbol (RIG)’.

Following this sabotage, Barack Obama reversed course on offshore drilling, BARELY THREE WEEKS after he had publicly announced a revised domestic energy policy lifting the longstanding moratorium on certain offshore drilling. Specifically, on 30th April 2010, the controlled US ‘State News Agency’ Associated Press reported:

‘A top adviser to President Barack Obama said Friday that no new oil drilling would be authorized until authorities learn what caused the explosion of the rig Deepwater Horizon. David Axelrod told ABC’s ‘Good Morning America’ that ‘no additional drilling has been authorized and none will until we find out what has happened here’. Obama recently lifted a drilling moratorium for many offshore areas, including the Atlantic and Gulf areas’.

‘The oil slick could become the nation’s worst environmental disaster in decades, threatening even the Exxon Valdez in scope’.

According to Reuters [25th April 2010]:

‘Swiss-based Transocean Ltd.’s Deepwater Horizon sank on Thursday, two days after it exploded and caught fire while finishing a well for BP Plc., 42 miles off the Louisiana coast.

Eleven workers from the rig are missing and presumed dead in what is the worst oil rig disaster in almost a decade. The Coast Guard on Friday suspended a search for the workers.

London-based BP, which is financially responsible for the cleanup, has deployed an armada of ships and aircraft to contain the oil slick.

The explosion came almost three weeks after President Barack Obama unveiled plans for a limited expansion of US offshore oil and gas drilling…. The explosion occurred as the rig was capping a discovery well pending production, company officials said. Some 115 of the 126 workers on board at the time of the explosion were rescued’.

• HOWEVER:

• The ‘Deepwater Horizon’ operation received a safety award in 2009.

• Has British Petroleum at last realised that it is just as hazardous to do business adjacent to US waters as it is to do business in the Soviet Union?

If BP had had the wit to subscribe to Soviet Analyst years ago, we could have informed them that a primary purpose, from the Soviet perspective, of enticing foreign oil corporations into the ‘former’ USSR was to procure the necessary transfer of technology into Soviet hands, before the GRU-KGB-controlled ‘oligarchs’ would squeeze the Western operators out.

• The Americans similarly use sabotage to destabilise the foreign competition.

• As you can see, there is more than a passing indication that this sabotage may be a desperate Bush Crime Syndicate-related (i.e., DVD) operation, with the non-coincidental ‘happy’ outcome that British Petroleum, sabotaged again, bleeds financially.

• In other words, yet another typically hardnosed US kick in the teeth for the Brits, not unassociated, we suspect, with concurrent forceful financial developments in the background.

EXPOSURE OF HALLIBURTON’S SCAMMING OPERATIONS: 26 MAY 2008
The following description of the pit of corrupt degradation known as Halliburton is excerpted from our report dated 28th May 2008 [ARCHIVE]. It reflects the detailed inside knowledge of a fearless and serious-minded whistleblower. [Note: The narrative as partially reproduced here starts ‘out of context’. However you can pick up such context as is necessary to be in a position to comprehend the cess-pit of degradation that is being exposed, as you read into the excerpt]:

THE HALLIBURTON DRUG THUG AND THE STOLEN FEDERAL SALARIES SCAM
A former top CIA aide to Tenet and 30-year CIA veteran now reveals the criminal background of ‘HallCIA’, the thug who yanked the officer’s phone from the wall, ransacked the CIA operative’s office, had the officer incarcerated in Halliburton’s own cell in the basement of CIA headquarters and on a separate occasion punched holes in the officer’s office wall, displayed episodes of extreme violence and was observed by many to be high on drugs. He was also a murderer….

This was the criminal whom Cheney asserted to be a friend who could never be arrested. This description leads into a summary of another scam, whereby multiple salaries are paid into corrupt Halliburton employees’ secret Swiss bank accounts:

‘HallCIA’ and the Head Programmer were moved back to Halliburton’s main office, just like the priests sexually abusing children are moved to a different parish.

They were never prosecuted…

[Dressed in FBI uniform provided by Halliburton, the operative is engaged in an FBI action to arrest this Halliburton thug], He was arrested for FIRST DEGREE MURDER OF AN FBI OFFICER. I had proof that the FBI officer that he had murdered was a bona fide one with proper papers and vetting in the FBI’s personnel archives. The FBI had fingerprint and DNA evidence to prove that the Halliburton programmer was the murderer.

They even had a trial and a conviction of the man for that murder.

He had feigned a fainting episode right before the reading of the sentence and been taken to a hospital. He then assaulted the hospital guard inside his room and left him unconscious in his bed. Then he impersonated the guard using his uniform. He later went to a lawyer who put in a motion to declare the trial a mistrial on the grounds of a technicality: the defendant had not been present at the reading of the sentence. The fact that the criminal had committed a second nearly deadly assault the same day in apparent good health, was omitted from that motion.

The FBI-clandestine CIA raid that I organized was on the private flat of ‘HallCIA’. It was not at his house where he lived with a prostitute whom he pimped, according to a CIA file. He did not keep his contraband items there as there were too many unsavory people coming through his house.

WHAT THE FBI FOUND IN THE CIA-HALLIBURTON DRUG THUG’S APARTMENT
At the flat the FBI confiscated drugs in pusher quantities and also illegal weapons, including some unregistered machine guns, explosives and hand-held artillery that could blow big holes through a wall for illegal entry. He had one bedroom devoted just to weapons, with shelves devoted to about half-kilo packages of drugs. It was equipped with a padlock. CIA top secret documents were strewn all over the bed, dresser and floor of the master bedroom.

It looked like a hurricane had hit the bedroom even before we arrived. The padlock was broken on the door to the weapons and drug room and the door was open when we arrived. But all the drugs were still neatly on the shelves. The flat may have been raided by Russian intelligence before we arrived, leaving the CIA documents behind as cover-up after copying them.

The FBI collected fingerprints and I collected the CIA documents. After the raid I returned to the FBI station and filled in the appropriate forms to write a FBI report up on the raid. As I was doing so, the two FBI officers who I had spoken with two days before walked by the desk I was using. They did a double take seeing me in the FBI uniform…. I told them that I had just tested FBI vetting and security procedures for a report I was writing for the CIA. I also explained to them that I had just successfully impersonated an FBI official to the extent of going on a raid with them, and not one had yet asked for my name or run it through a background check. I showed them the CIA top-secret documents the raid had netted and they laughed at the ruse I had played on the FBI.

They were not laughing, however, when I explained how I had gotten that FBI uniform and signed the papers. They checked on their computers; I was not yet registered on the records of the FBI.

I asked them to arrest all of the appropriate Halliburton people involved in that scam. They called the Director of the FBI and I also spoke to him. He refused to authorize the arrests.

He told me: ‘Write up your report and let me read it first’. I offered to drive over immediately with the evidence. He refused to make any time to see me. I immediately faxed him a short report and enough evidence to warrant the arrests. Nothing happened.

MULTIPLE SALARIES PAID INTO SWISS BANK ACCOUNTS
But the next day when the local FBI checked my name again, they called me to let me know that I was officially part of the FBI now per their computer. I promptly sent in a full report to the FBI, the CIA, and the Pentagon on this scam to sign up Halliburton employees as their officers and have the US taxpayer pay their salaries. Just like Halliburton over-billed, some Halliburton employees were
collecting THREE US Government salaries; one from the Pentagon, one from the FBI, and one from the CIA. I wrote in my report that I had signed up in all three places via Halliburton’s scam to see how long it would be before those scams were stopped.

I put on the three forms, separate Swiss bank accounts. The point was to use the accounts as evidence of Halliburton corruption when those cases came to trial; I have not touched a cent of that money. The Directors of the FBI, the CIA, and the Chief of the JCS that I sent those reports to did not implement my list of recommendations; one of them was to shut down all of those public salaries going to Halliburton employees. At least, they had not been implemented as of about Summer 2004 when I last checked those accounts.

Another recommendation was to make sure that everyone in those agencies is properly vetted and drug tested as per that agency’s usual security measures. Because I was concerned that my clear recommendations would not be acted upon, I despatched copies of those letters, the forms that I had signed, and the numbers of the Swiss bank accounts to the GAO. In my covering letter to the GAO I told them that I had given them the authority to check the balances in those accounts by written authorization to the Swiss bank.

I had hoped that seeing US taxpayer’s money streaming into those accounts would give them an incentive to prosecute those cases promptly. Since the banks were not in the United States, I doubt that coercion applied to the bankers will erase those accounts, but I could be wrong. Since I had long been a covert CIA person, those communications with officials and the banks were under aliases. The GAO however has all of the proper information to check those accounts again and to prosecute these cases. I myself no longer remember any of the aliases and account numbers, so I
couldn’t access that money even if I wanted to. I never intended to use that money at all, so I did not record those aliases and numbers into my personal effects.

In 2004 when I checked the accounts, I did so from within the CIA by pulling up the report that I had written to the DCI. I have no way to check those accounts now so I do not know whether that scam, as evidenced by a single person’s accounts, has been stopped. When I checked in 2004, two years had already passed. The US taxpayer had paid [as follows]: via the CIA, about $80,000.00 each year, for a total of about $160,000.00; via the FBI, about $50,000.00 each year, for a total of $100,000.00; and via the Pentagon, about $80,000.00 each year for a total of about $160,000.00, or roughly $420,000.00 total into those three Swiss accounts…

I also checked on whether Halliburton continued paying those employees if it signed them up for a Federal salary. The answer was no, except for rare exceptions. ‘HallCIA’ had continued receiving a Halliburton salary while getting one at the CIA, but the Head Programmer had not.

When I checked in 2004 the number of Halliburton employees getting a CIA salary was over 200, the number receiving an FBI salary was over 400, and the number of Halliburton employees receiving a Pentagon salary, was over 300. Suppose that the total for that is about 1,000 salaries each at, say, $50,000 a year. That would mean that the US taxpayer was being bilked (by Cheney) of $50 million a year of fraudulent salaries. Over the eight years that this Cheney has been in the Vice President’s office, that could easily add up to $400 million in savings for Halliburton in not having had to to pay salaries. No wonder it was so easy to get that FBI uniform and salary sent out to me by talking to a Halliburton VP. Other Halliburton programmers had complained to me that they took a ‘cut in pay’ to work at the CIA location. They said that ‘the takings are good’, and ‘Halliburton fences the items for us in a 50-50 split’.

HALLIBURTON’S THIEVES INSIDE THE CIA AND THE INEVITABLE CONSEQEUENCES
When I heard that Halliburton’s people were stealing from inside the halls of the CIA, loud alarm
bells went off inside my head. The items inside the CIA which were easiest to carry out were of course its documents.

And any computer that one stole inside the CIA was likely to have top-secret information on it, in spades. It was a counterintelligence person’s nightmare, and now it was mine. The fact that the Head of the Halliburton section offices at the CIA had just sold the CIA’s communication satellite encryption security codes to Moscow burned in my mind.

The Russians had paid him $20,000 for that betrayal.

He had no clue as to their black market value. It made me worry that the Russians and the Chinese could buy every secret inside the CIA for a price that they could afford. More than one Halliburton person inside the CIA had admitted to me that they were stealing to make up for their cut in pay. Halliburton had switched them to Federal salaries, making the CIA pick up the tab [see above].

One Halliburton person at the CIA had told me that they were all stealing enough to make up for that cut in pay. [They were ONLY in it for the money: taking their cue from Cheney and Bush: Ed].

Therefore, the first thing I did was to find out what those 40-odd people used to earn at Halliburton. I had the CIA’s accounting office print out for me what the CIA was now paying them. My mouth then dropped open in shock. Each one of them would have to steal over $10,000 worth of CIA secrets or goods a year to break even. In some cases the cut in pay was much higher. One man took a $50,000 a year cut in pay when he switched to the Federal salary. At the average $23,000 cut in pay, the 40 workers together had sustained a $920,000 cut in pay. I had been told that Halliburton was fencing the goods in a 50%-50% split. So, about 2 million dollars’ worth of good at black market prices would be stolen from the CIA, if they actually made up their lost salaries stealing.

[There followed a summary of the notorious Aldrich Ames, Clyde Conrad, Larry Wu-Tai Chin, John Anthony Walker, and Robert Hanssen espionage cases, omitted here]

On February 22, 1994, Ames and his wife were formally charged by the United States Department of Justice with spying for the Soviet Union and Russia. Mr Ames could have faced the death penalty, since his betrayal had resulted in CIA ‘assets’ being killed. However, he received a sentence of life imprisonment, and his wife received only a five-year prison sentence for her conspiracy to commit espionage and tax evasion as part of a plea bargain by Ames.

TENET AND CHENEY REFUSED TO ADDRESS THESE ISSUES
I walked down to the office a very high-ranking CIA analyst, about third in the hierarchy in that department, a man I trusted. People advance inside the CIA by one of two means normally, being very good at what they do or being very good at lying to please those above them. The heads of each section were often in the latter category, as a general rule. I asked him how many secrets the Russians could buy for $2 million a year, if they had 40 moles able to walk the halls of the CIA. In the posing of the question I explained that the hypothetical moles would be assumed to be ‘efficient’ criminals without formal espionage training. I asked him what effect that would have on national security. He asked me if this was a conversational gambit or a request for a formal report to answer my question. I thought about it a moment and then said the latter.

That meant that I had to go get a signature on a form. By submitting to Mr Tenet new requests for 10 separate reports on a wide variety of important topics, I quickly brought the analyst the signed form that he needed. He whistled in surprise when he reviewed the assignment given to him there in black and white. Then he asked me ‘Is this about the Privatized Employees’ invasion of the CIA?’ I said yes. He said: ‘I have been urging Tenet to let us study that risk for months. No go. How did you get this when I couldn’t?’

I explained to him my method and also that the Head of the Halliburton group had just sold the CIA’s Communication Satellite Encryption Security Codes to the Russians.

He hadn’t heard that [because] Tenet had put a lid on it even within the CIA. I promised to show him the proof. I came back and gave him and a few of his top staff an hour long briefing on what I had learned. One man was actually in tears as I finished.

Another said: ‘This marks the end of US national security’. Another said, ‘No. US honor died already and no memo was sent announcing its funeral’.

I asked them what information they needed to make a proper assessment. They said that it would help them if I could find out how much the 40 people were actually making off their thefts inside the CIA, and a list of what they were stealing. I came back the next day with the list of how much each one had been paid by Halliburton in ‘bonuses’, which was the code word for fenced items, and what each ‘bonus’ was for. That list of what each bonus was for was like what the programmers really did in morphing an appliance rack into a bread slice rack. It was not a specifically accurate description but it related to the item in a fairly straightforward way.

CHENEY WAS INFORMED IN A RECORDED PHONE CALL
I showed the list to Tenet and tried to brief him on how dangerous it was.

He did not want to hear. Tenet had not followed my recommendations, which would have stopped the thefts. And he did not want further reasons why he should do so… I called Cheney and begged him to send a memo over to Halliburton setting up a program to [address these extremely serious issues]. I even faxed him a memo so that all he had to do was sign to get that to happen. He did not deny that Halliburton was selling items stolen from the CIA. He did not deny that he had the power to impose the necessary changes at Halliburton by sending the memo. He did not deny that he had the power to order Tenet to institute effective measures to stem the tide of the thefts.

As the phone recording of that call shows, I kept briefing him on the problem while he kept saying that he refused to discuss the matter with me.

I sent a copy of that call over to the GAO because it showed that I had in fact managed to inform Vice President Cheney of the seriousness of the thefts. In that call [to Cheney] I cited that the likely consequences were the shredding of US national security and the wholly unnecessary deaths of its covert personnel. I also set up a surveillance operation behind Cheney’s and Tenet’s back to actually inspect each item that Halliburton fenced from the CIA.

COUNTERINTELLIGENCE OPERATION AGAINST TENET AND CHENEY BACKFIRES
That is, I had an ex-CIA operative with counter-intelligence experience whom I trusted, apply to Halliburton. I instructed him to offer to ‘help them fence their CIA goods and get higher prices for them’. Call him Alan for short. A Halliburton VP, the same one who sent me the FBI uniform, sent me a ‘thank you’ letter for referring Alan to them. He no doubt believed that I was corrupt and making a kickback. It was to my advantage to foster that image of myself without it actually being true. In my position it was best if everything I did could be interpreted as corrupt at the same time that I was collecting the evidence for prosecution.

That operative, Alan, ended up terribly overworked in no time. The analysts and I had been off by a factor of THREE in the amount that was routinely being stolen by Halliburton from the CIA.

We did not find that out until the Halliburton people realized that they could get more money by making sure that Alan sold the goods for them. That meant Alan had to sell them at on average much higher than twice what they could get for them themselves, even by selling directly to the Russians. That was not as hard as it would have been with regular stolen goods; the Halliburton people did not know their true worth on the black market. Alan could make a better profit selling a document to a rich government such as France, which would have been very bad in the hands of the poorer Chinese or Russians. Before that, Halliburton had sold mainly to the Russians. [Editor: Further allegation that Halliburton has sold CIA secrets to the Russians].

The French were very helpful to us in keeping many things out of the hands of the Russians. They had wised up quickly as to our problem and how to assist us. The United Kingdom was less helpful because they could get that same information by merely filing a request for it.

The French were not as tight into the CIA, though they were still US allies. We needed top dollar for the stolen items because we had to make up for the fact that we were not selling off all of the items due to their national security risk. We were hiding the fact from Halliburton’s management that we were really sending the items back to the CIA.

OVER 50% OF HALLIBURTON SALES BREACHED NATIONAL SECURITY
We could not send computers back, as it was impossible to ensure that the Russians etc. had not altered them in the meantime. Those had to be scrubbed clean using a special erasing procedure. But it was possible to send back documents. We had initially thought that it would be only 10% of the items that had to be vetoed on national security grounds. But as we got a better understanding of what was being sold via Halliburton, that figure went up to a little over 50%

[Editor: More damning allegations against Halliburton as a continuing threat to US national security, for which Cheney should be impeached, along with Bush Jr., who authorised this corruption via his Executive Orders].

[The high-level operative and source for this information left the CIA for Canada in 2002].

Subsequently, operatives working inside the CIA to address this catastrophic situation] demanded that Tenet should lock the unvetted people out of the building.

In the process of showing how serious the security violations were, they revealed the oversight (or counterintelligence) operation against Tenet and Cheney themselves. That ended up revealing that they were recovering about 50% of the items and about 30% of their black market worth. Tenet informed Cheney of that fact, and Cheney ordered an end to the oversight.

I later sent copies of the relevant telephone calls revealing all this to the GAO. The Russians and Mossad had a complete set of White House calls, including of [calls concerning what was] for sale. The CIA also had a fairly complete set. When I was forced back into the CIA in October 2003 from Canada with threats and worse, I heard about the troubles that the oversight people had suffered over the intervening 16 months. They had been unable to perform oversight for four months.

During that time Halliburton had fired their Private Eyes, the ex-CIA operatives that they had there. Instead, Halliburton had hired its own experts on Black Market Intelligence Pricing and had sold all of the stolen items without regard to US national security. I then despatched over to the GAO about a dozen phone conversations by Halliburton’s high officials demonstrating their reckless disregard for national security and the lives of covert operatives. [Therefore, this information is all available for the Congressional Committee to access immediately: Editor].

But it now gets much, much worse….

THEFTS OF CIA COMPUTERS LEADING TO AN UNIMAGINABLE CATASTROPHE
The next part of the narrative briefing leads into a description of the most ghastly consequences, for which Vice President Richard B. Cheney is clearly indicated by the narrative to be responsible, given his Luciferian greed for ‘profit’ which of course is on its own an impeachable offence:

It was only after a [hitherto unreported: Ed.] colossal national security catastrophe that the [CIA operatives who had carried on trying to get results] managed to get Tenet to insist that Halliburton rehire their ex-CIA ‘Private Eyes’. The oversight people briefed me on [the catastrophe] as soon as I returned. The first day I came back to the CIA’s Headquarters, they kept me up all night telling me about it. I cried many times that night for my country and for the harm that had been done to her. I cried for the people who had died so brutally and unnecessarily.

Many, many more intelligence professionals lost their lives as a consequence of Cheney’s selling secrets than lost their lives because of the traitorous behaviour of Aldrich Ames. Ames is serving a life sentence for what he did. Cheney’s Halliburton people were still working at the CIA and were still stealing there because of Cheney’s protection of them. They were still walking inside the halls of the CIA every day and going into its offices to ‘have a chat’.

It was such an egregious violation of national security that some oversight members quit the CIA. Others said to me: ‘Why should we look like criminals who are enabling this theft’? ‘We are not making a cent off it… Yet we have been threatened by Tenet that we will be put in prison because we know of the thefts and hence must be guilty of them… We are being treated like criminals because we are trying to stop the most dangerous of these sales’.

[Editor: Gross abuse by Tenet of the Misprision of Felony Statute].

I later collected a memo from Cheney to Tenet which stated that the oversight of the sales by the CIA was cutting into profits and had to be stopped. It recommended imprisoning all of those in the CIA suspected of being a bottleneck in [the raking in of] US corporate profits. Tenet prohibited the oversight within a week of receiving that memo. The GAO has a copy of the memo and also of the memo that Tenet sent out threatening imprisonment if anyone was discovered to have decreased US corporate profits. They also have the later memorandum that Mr Tenet sent, which threatened imprisonment if anyone knew about stolen goods and did not report it to the designated official.

Those who had reported thefts to that official had been fired soon afterwards.

Thieves do not report stolen goods; people with integrity do, until it is clear that it is pointless and dangerous to do so. I also sent the GAO the document suggesting this ruse of a new designated official as a way to stop the oversight. That designated official never prosecuted a case of theft against a Halliburton person. He came from Halliburton! He had in fact been recommended for the job by ‘HallCIA’ to Cheney, who then recommended him for the job. I sent over to the GAO a tape of the phone conversation between ‘HallCIA’ and Cheney. On it. ‘HallCIA’ says that the man that he is recommending will stop the losses of revenues ‘from our CIA sales’.

HALLIBURTON CROOK BRAGGED ABOUT LUCRATIVE SALE TO THE RUSSIANS
Later he bragged about one of his sales to Russia of ‘one of our CIA products’, and says, ‘too bad we can’t make more of them’. It was clear that he was referring to the stolen goods that Halliburton stole from the CIA, not products that Halliburton made and sold to the CIA. The designated official was not vetted by the CIA. He was stealing from the CIA while working out of the Halliburton offices. I sent to the GAO a signed statement from a CIA security guard who caught him carrying a computer of the CIA’s out of the front door. That man could have employed the back door out of their offices manned only by Halliburton’s guards. He was so used to stealing from the CIA and getting away with it that he forgot, and used the front door.

That is what he told the guard: ‘I forgot… Give me a hand and we’ll take it out the back door’. The Halliburton guards did just that. They helped the Halliburton thieves load CIA computers into their private cars. I sent the GAO several CIA security camera clips of that happening.

The CIA had massive amounts of security camera data showing that [activity]. The CIA security people were afraid to report the thefts that they saw, because they did not want to lose their jobs without it even cleaning up the problem. By the time I returned to the CIA, 16 people had lost their jobs due to reporting thefts to the designated official that Tenet’s memo had directed them to use. No one at the CIA knew about the item sold during the blackout that caused the national security catastrophe, until after the catastrophe happened. [Details of this national security catastrophe, unfortunately containing graphic and disturbing language, now follow].

THE CATASTROPHE, COURTESY OF THE CORRUPTION OF TENET, CHENEY AND BUSH
The first sign of that Catastrophe [with a capital C: Ed] was a dead body lying on a sidewalk in a foreign city. The body had been the teenage daughter of a CIA officer. The body was no longer recognizable, even by her father. The body was identified definitively by dental records. Her face had been peeled off in small strips. The forensic evidence revealed that she was still able to bleed and struggle during most of the time that was done to her.

The next sign of the Catastrophe was another unrecognizable body. This time, of a 6-year-old boy of a US diplomat. The injuries were the same. The CIA concluded that the murderer was the same man. The next sign was an 11-year-old child of a US school teacher in Africa. She was divorced and her husband had once worked for the US State Department. Perhaps he had been CIA under diplomatic cover, but the CIA refused to comment.

I saw the photographs of the dead bodies. They were too horrible for words. Could it be that I was recalled to the CIA against my will in order to get my special operational skills to track down the villain? The day I got back to the CIA, the first thing Tenet did was hand me these pictures and ask me to find The Killer. He had given me the pictures of 23 victims who had all died the same way. All
of them were children of people who could have been in the CIA. About 22 of them did have a
known parent or guardian in the CIA.

DEATHS DUE TO THE STEALING OF A CIA COMPUTER
What he failed to tell me, or give me the photos for, for was the over 100 adults that had been killed using the exact same modus operandi. One of them was in the CIA’s morgue at that moment [Editor: did you know that the CIA has its own morgue? I didn’t]. ..The item that was stolen from the CIA that was responsible for those deaths was a computer. That computer had not gone through the hands of one of the ex-CIA operatives. Its contents not been thoroughly erased.

It took work and time to do that; the disc had to be erased and written over 50 times. Halliburton’s bosses did not care about national security or the risk to the CIA’s covert operatives, if they were exposed… I was able to prove that it was the same computer. It still had the CIA’s personnel files on it and many of the victims had been selectively deleted from where they should have been in that list. When I then compared that file to the CIA’s current personnel file, the comparison program marked those deletions in red. The selective deletions showed that the owner of the computer was getting tipped off by someone high up in the investigation of the deaths inside the CIA.

The US Administration managed to suppress the news of these murders almost completely, after its ties to the computer started showing up in the CIA’s internal investigations. No-one in the media had connected the isolated cases across the globe [another gross failure by the incompetent and controlled Fourth Estate, which has intelligence cadres sitting in its press rooms: Ed.].

The motivation of the deletions was obviously to try to cover-up the guilt of the owner’s role in those murders. There were about 86 deletions in a file of thousands of names. Each deletion was a victim, as already known by the CIA up to a certain date about two weeks earlier.

ENTER THE ‘DARK LORDS’: DIRECTLY CONNECTED TO BUSH
No victim that the CIA had on its investigation list by that point had failed to be deleted on that stolen computer. The odds of that happening by chance alone was practically speaking, exactly zero. In addition, I later obtained evidence that firmly tied the secondary ownership of that same computer to those who committed the actual tortures and murders. There was many more than one murderer. What they had in common was membership in a kind of paramilitary, quasi-religious cult. The members of that paramilitary cult had a group commitment to kill a person once a month. The Mafia usually only requires its members to kill once to get into it. This satanic group required their members to kill once a month in order to remain in good standing in it.

[Note: The Editor of this service received, between February and mid-May 2008, a large number of evil, unsolicited phone calls from a contrived, deep demonic ‘voice’ referencing ‘the Great Dark Lords’. This harassment [referenced in our report dated 27th April 2010, as the stupid harassment resumed: we have identified the operative concerned as Wanta] continued until shortly after we reported the matter to the head of the US Anti-Terrorism Task Force and also, separately, to law enforcement personnel in contact with the Editor’s own contacts, whereupon they ceased. We have voice recordings of almost all these calls.

Considered in the context of what follows, it would appear that these calls represented threats: one of these was quite specific, along the lines of ‘we have the means of dealing with you’. Given the appearance of the ‘Dark Lords’ in this ‘Cheney’ context, it is likely that the Unterreichsführer’s apparat will indeed, as we suspected, have been responsible for these multiple telephone threats and harassment calls.

It comes as NO SURPRISE whatsoever to the Editor that the veteran CIA investigator came across this ‘Black’ dimension. The harassment calls to the Editor were also interspersed with threatening emails. The content of one of these, containing a very grave threat, was conveyed immediately as referenced above, with the consequence that (at the date of this posting) the harassment ceased].

A Manual on ‘How to Please the Lords of Darkness’ had been published by a member of that cult. It recommended that the best way to do it was to torture people to death using the modus operandi that I have indicated above. That Manual had been distributed by the owner of the aforementioned computer with that CIA Personnel file suggested as the targets. The man who bought the computer was indeed a paramilitary type, with a large collection of weapons, many of them unregistered… He was identified as a fundraiser for Bush.

The literature of the group showed upside-down crosses as an emblem [satanic symbolism: Ed.]. The reason that others in the CIA had not tracked him down and had failed to pin the instigating of the murders on him, was political. Like ‘HallCIA’, and the Head Programmer from our earlier cases, he was well protected. It was not that CIA investigators had not suspected him. It was that they did not know what to do with their suspicions and even their evidence after they got it.

I was the booby prize winner: the fool at the CIA who had before been willing to buck the silence at great risk to myself. There was precedence for giving me a job like this. At one point, a CIA officer had sold a list of MI6 officers to the KGB during the Cold War. The KBG had started killing them off. I was given the job to stop them from continuing. And they had stopped: whether or not it was due to my efforts, was a matter of hot debate within the CIA. But some people credited me with having had some influence in the matter.

The individual who bought that computer was apparently a friend of Cheney and Bush; they had invited him to the White House. They had been present when he picked it out among a number of other CIA stolen computers, paying cash, which Cheney had put in his pocket.

‘CHENEY & BUSH TOOK THE MONEY FOR THE COMPUTERS USED FOR THE MURDERS’
I found the White House Security camera footage of that event. The GAO has a copy of it. The payment is shown on the video. The man took hundred dollar bill(s) out of his pocket and handed that to Bush. Bush hesitated and then handed the money to Cheney. The footage of that computer being carried out of the room by a guard follows about 20 minutes later. The room had about 20 computers from the CIA in it, to start with. [They were all neatly laid out, as at a corporate sales demonstration, for buyers to examine, test, select, and pay for: only cash was accepted: Ed.].

The security camera tape shows Bush Jr. and Mr Cheney repeatedly coming into the room with a prospective buyer and taking cash in varying amounts. That continued until all the computers were gone. Some prospective buyers remained in the room for over an hour exploring the contents of the stolen CIA computers, before deciding on a purchase. I checked with the CIA and found that no CIA vetting of those buyers had occurred. Most did not have security clearances. Some of them had prior felony convictions and had been allowed into the White House ‘on orders from above’. The sale was ‘by invitation only’, with Bush and Cheney controlling the invitation list.

The earlier tape shows Cheney directing Halliburton employees in where to set the computers up. Much care and time was taken to plug them in and connect them to monitors, mice, keyboards, and to arrange the room nicely with a mouse pad under each mouse. The GAO has a copy of that tape too. The manual on how to torture people (in the manner described) and the file of CIA Personnel was sent overseas and domestically through the mail whenever a buyer purchased a snuff film from that man. His poorly kept records showed that he had mailed out at least 2,000 such CDs with the Manual on ‘How to please the Lords of Darkness’.

His records omitted the addresses that he sent them to in about 50% of the cases where he marked payment received and product and ‘How-to’ sent. Thirty of the murders had been solved already by local foreign authorities by the time I was given the case. Of those, the ‘How-to’ CD was found in 28 of them. Presumably it had been overlooked in the other two, or the wrong party may have been charged, or the ‘How-to’ thrown out by the ‘Black’ criminal operative.

Unfortunately, the murders had continued after those arrests.

BUSH AND CHENEY RESPONSIBLE FOR 168 CIA DEATHS, COVERED UP (HITHERTO)
At least 168 CIA officers and their family members were brutally tortured to death as a direct result of this cynical corruption run by Bush and Cheney. The CIA [systematically] covered it all up and pretended that it never happened on Tenet’s orders. The notorious traitor Aldrich Ames had not
sent out instructions to torture and kill anyone. He had sold ONE copy of a list of CIA operatives
in one country to one buyer. He is languishing in prison for life.

[The perpetrator identified here] sent out over 2,000 copies of all the names and addresses of the CIA officers and their families in every country. He had sent them out with hate propaganda and incited others to kill them. He had sent this [Nazi filth] to people who were known murderers who had a commitment to kill again. And he had sent it out as a challenge: are you man enough to kill a CIA person? His group offered ‘Advanced Membership Privileges’ to anyone who succeeded.

It was very curious that someone close and high up in the investigations at the CIA was tipping him off, since he was targeting CIA officers. I was able to supply the GAO with the evidence as to who was doing it. This person was getting calls and faxes directly from Cheney and Tenet. Tenet’s faxes included the names of the victims to date. He was being assisted in his cover-up at a very high US level. I investigated whether the Russians or another foreign group had put him up to this, as his methods seemed too effective to be that of an individual’ alone.

HALLIBURTON LINKED TO THESE MURDERS OF CIA PERSONNEL
I found no such evidence of a foreign government or its operatives being behind it [but] I found many ties to US underworld organizations. Most of the ties, however, were directly to Halliburton. According to Halliburton’s records which I sent the GAO, [the perpetrator of these incitements to murder CIA personnel] had headed one of their subsidiaries before it went bankrupt.

CIA INVESTIGATOR TOLD TO ‘BACK OFF, OR ELSE’
When I looked up that old corporation I did not find a building on the aerial to correspond to the address. That subsidiary had been selling intelligence and paramilitary gear. It had specialized in recruiting mercenaries worldwide. It made me wonder if those killing the CIA had done so, as a kind of recruitment test; those getting away with it and being able to prove it, getting the job. I started looking into whether he was on Halliburton’s books as CEO of a new subsidiary. Just as soon as I started that investigation, Cheney called and told me to ‘back off or else’.

I asked him what the ‘else’ referred to, because it certainly sounded like a death threat to me. He hung up on me. Then he called me back about 10 minutes later and offered to set up a face-to-face meeting with that computer owner. I agreed and asked at once for a time and a place. He hung up: apparently his offer was just to threaten me that he would [impose] that man on me. I sent copies of those calls to the GAO also. They should still have them. The Halliburton mercenary recruiter [who incited the murders] was never prosecuted. Cheney and Bush would not allow it.

BIO-FEEDBACK EQUIPMENT STOLEN BY HALLIBURTON FOR THE RUSSIANS
In about May 2002, a Halliburton person at the CIA had stolen an expensive piece of equipment.
It was an ultra-sophisticated CIA bio-feedback machine that was worth over $5 million.

It had required hundreds of millions of dollars of R & D money for the CIA to develop it. It was custom-made only for the CIA. Its only purpose was to train operatives how to pass a lie detector test. It was only used when they were to be sent on extremely dangerous missions to places like Russia. And it was only used in very critical missions.

There was a high risk that Russian intelligence would figure out how to overcome that training, if they interrogated about five operatives who had used it. That is, if they realised that those 5 had been trained in that fashion. Thus it was TOP SECRET and its manual was also top secret at the time. Loss of that machine and its Manual was the same as potentially losing every secret a given CIA official had in his or her mind when they were in Russia. The head of the CIA station in Russia had been trained on that machine for obvious reasons.

The effect of the training was to give the user control over their automatic nervous system. That meant that they could stop their fear, their sweating, their heart rate increase etc. in response to an interrogation. In addition to those obvious advantages in an interrogation situation, it had a big psychological benefit. It gave those who had used it confidence that they could pass a lie detector test. Thus, they were as if ‘bullet proofed’ against threats and lie detector tests.

Although the signal-to-noise ratio relating to information obtained under torture is so low as to be unusable, that is not true in a ‘friendly’ interrogation. The British had admirably demonstrated the effectiveness of ‘friendly interrogations’ in WWII. An operative who had fear or fear of a lie detector test was more likely to ‘tell all’ in a ‘friendly interrogation’ because of underlying anxiety. I did not find out about that theft until the next day. I then learned from a Halliburton person that it had been stolen and was en route to the Russian Embassy to be sold to them. I was absolutely horrified by the national security implications of that. I rushed up to Tenet’s office to tell him. He already knew.

Cheney had called him and asked him what it was and what it was worth to the Russians. This was after I had set up the system for things to go through Alan so that the oversight committee could intervene to stop the worst violations of national security.

But the thief was a personal friend of Cheney’s and had taken the item straight to the White House to ask him if he wanted to buy it. Cheney had paid him $50,000 for it, he informed me. The copy of the telephone call that I sent to the GAO between Tenet and Cheney showed that Mr Cheney had considered keeping it, so that he could pass lie detector tests.

CHENEY THREATENS TO KILL THE VETERAN CIA OPERATIVE PERSONALLY
They had discussed it and Tenet had promised to find out more about it, how it worked, and how much it was ‘worth outside of the CIA’. He had called him back and told him a figure of $1.2 million. Cheney asked him to find out what was his risk of needing the machine himself. Tenet called him back and said that CIA analysts judged his risk to be about 4%. In front of Tenet with his phone on
speaker, I called Cheney and demanded its return.

He laughed and said, ‘What’s the big deal? It can only be used 5 times total and it has already been used once. We should sell it while it still has value before those 5 times are up’. He had absolutely no understanding of intelligence matters. It was not 5 uses of the machine: it was 5 times a CIA person trained using that machine was interrogated by the Russians. It could be 20 years’ worth of use to prevent the loss of security codes, national secrets, and how a CIA station was operating.

I explained it all quite carefully as Cheney is not a technically minded person. I even asked him questions to make certain that he had understood what I said correctly [Editor: This interesting comment suggests that Cheney is actually not that bright, which may also be judged to be the case, given his behaviour over the Settlements and his repeated thefts of gigantic sums of money. It may be that he progressed to these much larger thefts after getting away with multiple lesser thefts of which examples have been given in this narrative]. Cheney then said: ‘Well, what difference does it make since there are remote viewers like you in Russia who can steal the secrets anyway?’

I then explained that remote viewers were not 100% accurate and that intelligence agencies always had to verify what they said using hard data. Lie detector tests are not 100% accurate either, but they add some signal-to-noise benefit. Mr Cheney replied that torture was generally worthless in getting information [Editor: Amazing! Was not Cheney reported to be adamant that torture MUST be used to extract intelligence from terrorists and from prisoners in US hell holes like Gantanamo and Abu Ghraib?]. That was true. But it was still wrong to sell the Russians the CIA’s very best and most advanced equipment to deter loss of information under interrogation. ‘Friendly interrogations’ do yield valid intelligence.

When I pointed that out, Cheney said that the machine had already been sold to the Russians and that I was too late. I told him that I would figure out some way of prosecuting him, if he ever did that again. He laughed and said, ‘You haven’t got a chance’. I told him that I would try.

Cheney then said: ‘I will kill you myself, if you ever get close to succeeding’.

As we have said before, Cheney is what Malachi Martin would have called ‘perfectly possessed’.

RUSSIA TREATED AS ‘THE ENEMY’ THROUGHOUT: RAPPROCHEMENT IS THEREFORE FALSE
You will have noticed that during the timeframe of this narrative [2002-2005-ish], Russia is considered in this dialogue to be an enemy, just as was the case during the overt Cold War.

This reflects the fact that the dialectical breach created by Lenin’s Revolution and its aftermath has not, in fact, been healed or discarded: exactly as the Soviet defector Anatoliy Golitsyn advised the disinterested CIA: see The Perestroika Deception by Anatoliy Golitsyn, edited by Christopher Story, available from the books [Edward Harle Limited] segment of this website.

ADD-ONS AND UPDATES ORIGINALLY APPENDED AT THE TOP OF THIS REPORT:

• NEW: LETTER FROM VIENNA: BULLSEYE PERSPECTIVES ON THE GERMAN CRISIS: SPEECHES IN THE BUNDESTAG LAMENT THE IMMINENT FAILURE OF THE PAN-GERMAN PROJECT TO CONTROL EUROPE: THEY COULDN’T CARE LESS ABOUT THE PLIGHT OF THE FAILING SATRAP E.U. STATES. ALL THEY CARE ABOUT IS THE FACT THAT THEIR PROJECT IS COLLAPSING, NOCH EINMAL: LIKE EVERY PREVIOUS ATTEMPT THEY HAVE MADE TO TAKE OVER AND CONTROL EUROPE. THE PAN-GERMANS (DVD) ARE A MENACE TO EUROPEAN AND GLOBAL STABILITY. SEE THIS ADD-0N TO THE EUROPEAN COMMISSION CORRUPTION SECTION, WHICH FOLLOWS THE UPDATES IMMEDIATELY BELOW.

• BEFORE WE START: YOUNGEST SON OF LAWYER JOHN HEMENWAY, WHO BROUGHT A QUO WARRANTO ACTION AGAINST OBAMA, WAS SHOT DEAD IN BEDFORD, VIRGINIA ON 30TH APRIL. THE U.S. CRIMINAL GOVERNMENT’S CONTROLLING INTELLIGENCE POWER IS PREPARED EVEN TO LIE ITS WAY OUT OF THIS ASSASSINATION. MEMORIAL DETAILS ARE GIVEN BELOW.

The first information that we published about this shooting was as follows [3rd May 2010]:

The Editor has just received the following flash information from an impeccable US source whom he has known personally for the best part of two decades:

‘I just heard that John Hemenway’s younger son, also named John, was shot to death outside Bedford, Virginia. John Hemenway is the attorney who filed the Quo Warranto lawsuit against Obama. I just got off the phone and there’s an autopsy going on…’.

The Editor writes: We were originally advised that the Memorial is on 5th May, but this information has been updated: it’s on the 4th. We are in touch with parties quite close to the family and as the matter is so extremely sensitive, we are holding back on further details until we can obtain the go-ahead, if that is granted. In the meantime, here’s the Memorial announcement:

HEMENWAY JOHN MARTIN HEMENWAY (Age 47) On April 30, 2010 of Bedford, VA. Beloved husband of 7 years to Stephanie; loving father of Andrew Branham Hemenway; devoted son of John and Betty Hemenway; beloved brother of Catherine and Edward Siewick, Jane and John Sullivan, David and Margaret Hemenway and Fielding Williams. Pre-deceased by his beloved sister Mary Joyce Hemenway Williams. Also survived by many loving nieces, nephews, relatives and friends.

Memorial Service on Tuesday, May 4, at 4:30 p.m. at Otterville United Methodist Church, Bedford, VA. In lieu of flowers memorials may be made to the John M. Hemenway Camp CHILD Scholarship for special needs children c/o Bedford Primary School, 807 College Street, Bedford, VA 24523.

• NOTE: Late on Monday 3rd May 2010, the link count for our report ‘ALL UK LEGISLATION PASSED SINCE 2000 IS NULL AND VOID’ reached 33,700, after being frozen at 27,500 for days.

• UPDATE:
WAXMAN’S HOUSE COMMITTEE ON ENERGY AND COMMERCE PUTS HALLIBURTON IN THE FIRING LINE WITH RESPECT TO (OUR) SUSPICIONS CONCERNING THE FAULTY CEMENTING PROCESS. SEE BELOW FOR THE TEXT OF MR HENRY A. WAXMAN’S LETTER TO MR DAVID J. LESAR, C.E.O. OF HALLIBURTON CO., DATED 30TH APRIL 2010, DEMANDING ALL DOCUMENTS.

• UPDATE: HALLIBURTON HAD ONLY JUST FINISHED A CEMENTING JOB ON THE OIL RIG:
READ THIS AND THEN READ WHAT WE SAID BELOW BEFORE THIS DATA BECAME AVAILABLE:
Although no cause has been determined, oil services contractor Halliburton Inc. says it finished a cementing operation 20 hours before a Gulf of Mexico rig went up in flames.

Halliburton is named as a defendant in most of the more than two dozen lawsuits filed by Gulf Coast people and businesses claiming the huge oil spill could ruin them financially. In one lawsuit, two Louisiana shrimpers claim cementing contributed to the explosion.

Halliburton said Friday [30th April 2010] it had four workers stationed on the rig, performing several tasks, including cementing, a process of applying cement and water to a pipe used to prevent the wall of the hole from caving in during drilling.

According to a 2007 study by Minerals Management Service, cementing was a factor in 18 of 39 rig blowouts in the Gulf between 1992 and 2006. San Francisco Chronicle:

http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2010/04/30/financi…

See also The Wall Street Journal:

http://online.wsj.com/article/SB10001424052748703572504575214593564769072.html

* PLUS: Halliburton buys Oil Fire Fighting company on April 12th for $240 Million

In 1978, Edward “Coots” Matthews and Asger “Boots” Hansen founded Boots & Coots (WEL). Both were veteran oil-well firefighters. But the days of independence have come to an end for Boots & Coots as the company has agreed to sell out to Halliburton (HAL) for $240.4 million. Shareholders will get $1.73 in cash and $1.27 in Halliburton stock for every share of Boots & Coots.

• SO, IT WASN’T PREMEDITATED SABOTAGE TO SPITE THE BRITS, GIVEN WHAT’S BEEN GOING ON FINANCIALLY BEHIND THE SCENES AS THE CRIMINALS ARE BEING FACED DOWN? ASK CHENEY…. And read all about Halliburton’s scamming of the CIA and the Pentagon, and the national security breaches committed by Halliburton in the process, under Cheney’s watch, below.

• WAXMAN’S HOUSE COMMITTEE ON ENERGY AND COMMERCE PUTS HALLIBURTON IN THE FIRING LINE WITH RESPECT TO (OUR) SUSPICIONS CONCERNING THE FAULTY CEMENTING PROCESS. SEE BELOW FOR THE TEXT OF MR HENRY A. WAXMAN’S LETTER TO MR DAVID J. LESAR, C.E.O. OF HALLIBURTON CO., DATED 30TH APRIL 2010, DEMANDING ALL DOCUMENTS.

HENRY A. WAXMAN, CALIFORNIA, CHAIRMAN
JOE BARTON, TEXAS, RANKING MEMBER
COMMITTEE ON ENERGY AND COMMERCE
Congress of the United States
House of Representatives
2125 Rayburn House Office Building
Washington, DC 20515-6115

Majority: (202) 225 2927
Minority: (202) 225 3641

April 30, 2010-05-04

Mr David J. Lesar
Halliburton Co.
US Corporate Headquarters
3000 North Sam Houston Parkway East
Houston, Texas 77032

Dear Mr Lesar

According to a report in The Wall Street Journal today, one possible cause of the explosion that destroyed the Deepwater Horizon drilling rig and led to the oil spill in the Gulf of Mexico could be a problem with the cementing that was supposed to seal the well. In this procedure, cement is used to plug the well and to fill gaps between the well pipe and the hole drilled into the ocean floor in order to prevent combustible oil and gas from escaping. Problems with the cementing process have frequently been identified as causes of oil well blowouts. The article quoted one independent expert who said: “The initial likely cause of gas coming to the surface had something to do with the cement” (1). Halliburton Co. provided cementing services for the Deepwater Horizon rig.

As part of the Committee’s investigation into the cause of the oil spill, we ask that you take three steps. First, we request that you arrange a briefing on May 5, 2010, for Committee staff with Halliburton officials knowledgeable about Halliburton’s cementing activities at the Deepwater Horizon rig.

Second, we ask you to provide the Committee with all documents in Halliburton’s possession relating to (1) the explosion at the Deepwater Horizon rig; (2) the possibility or risk of an explosion or blowout at the Deepwater Horizon rig; and (3) the status, adequacy, quality, monitoring, and inspection of the cementing work relating to the Deepwater Horizon rig. We request that you provide these documents on May 7, 2010. An attachment to this letter provides additional information on how to respond to Committee document requests.

Third, we ask that you preserve for potential future production to the Committee all documents relating to Halliburton’s operations at and involvement with the Deepwater Horizon rig.

We appreciate your assistance with the Committee’s investigation. We believe it is essential that the spill and its causes are thoroughly investigated. If you have any questions regarding this request, please contact Meredith Fuchs of the Committee staff at (202) 226-2424.

Sincerely,

[Signed]
Henry A. Waxman, Chairman

[Signed]
Bart Stupak
Chairman, Subcommittee on Oversight and Investigations

Enclosure.

cc. The Honorable Joe Barton, Ranking Member
The Honorable Michael Burgess, Ranking Member,
Subcommittee on Oversight and Investigations.

(1) Drilling Process Attracts Scrutiny in Rig Explosion, The Wall Street Journal, April 30, 2010.

• Note: The oil rig issue and Halliburton’s scamming operations follow our exposure of parallel institutionalised corruption at the European Commission, subject of the Editor’s speech.

NOTICES:
Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

We are a private intelligence publishing house and have no connections to any outside parties including intelligence agencies. The word ‘intelligence’ on this website and in all our marketing material is used for marketing/sales purposes only and has no other connotations whatsoever: see ‘About Us’ on the red panels under the Notes on the Editor, Christopher Story FRSA, who has been solely and exclusively engaged as an investigative journalist, Editor, Author and private financial and current affairs Publisher since 1963 and is not and never has been an agent for a foreign power, suggestions to the contrary being actionable for libel in the English Court.

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• To access details about the INTERNET SECURITY SOLUTION, just press THE LIVE LINK YOU HAVE JUST READ, or else press SERIALS in the red panel below. This opens up our mini-catalogue of printed intelligence publications. Scroll right down to the foot of that section, where you will see details of this service. When you buy this special product, you will also, as we clearly state above, be paying a special premium by way of a donation to help us finance these exposures.

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Save

THE ABORTED PENNSYLVANIA FRAUD OF 8 MARCH 2010

cropped-chrisstory

BOTCHED OPERATION BY THE OBAMA WHITE HOUSE TO RE-STEAL THE SOVEREIGN

Friday 19 March 2010 08:00

• SALVATORE R DEFRANCESCO ‘SOUGHT BY DOJ, TREASURY’

• PENNSYLVANIA STATE CORPORATION BUREAU FAILS TO UPDATE
CORPORATE SCREEN AS SPECIFICALLY INSTRUCTED BY THE COMPANY’S BOARD

PENNSYLVANIA FRAUD UPDATE: NEW YORK: 19TH MARCH 2010: 3:00PM EDT

There have been two developments (that we are at liberty at this time to report) in connection with this colossal scandal orchestrated as described in our original report of 15th March 2010 below:

(A): PENNSYLVANIA DEPARTMENT OF STATE HAS RECEIVED THE CORPORATE RESOLUTION OF PENNSLYVANIA INVESTMENTS, INC. [SEE BELOW] BUT HAS NOT AMENDED THEIR SCREEN AS INSTRUCTED BY THE DIRECTORS, WHICH SHOULD HAVE BEEN DONE BY NOW:

• The Corporate Resolution of the Board of Pennsylvania Investments, Inc. identified in the Foreword immediately below, requires Michael C. Cottrell B.A., M.S., to be described publicly as:

PRESIDENT
CEO
SECRETARY and:
TREASURER

• The United States Postal Service Track & Confirm service reports that:

(1): The package containing the Corporate Resolution and the necessary Filing Fee addressed to Pennsylvania Department of State Corporation Bureau, P.O. Box 8722, Harrisburg, PA 17105-8722, was accepted at 10:44 am on 16th March 2010 at ERIE, PA Station No. 12 [USPS 16505] against total Postage and Fees of $10.70. We hold a copy of the relevant US Postal Service Certified Mail Receipt [and of all relevant such receipts].

(2): The package was processed through the Sort Facility on 17th March 2010 at 4:19pm in Harrisburg, PA 17107.

(3): The package containing the Corporate Resolution and Filing Fee was delivered to Pennsylvania Department of State Corporation Bureau, P.O. Box 8722, Harrisburg, PA 17105-8722 on 18th March 2010 at 1:11am. by the US Postal Service.

• FACT: As of the time of this Update the Pennsylvania Department of State Corporation Bureau had not updated the screen for Pennsylvania Investments Inc. to show Michael C. Cottrell B.A., M.S., registered as:

PRESIDENT
CEO
SECRETARY and:
TREASURER

… of Pennsylvania Investments, Inc., as required by the Corporate Resolution.

(B) THE COPY OF THE CORPORATE RESOLUTION AND OTHER DOCUMENTS SENT AT THE SAME TIME FROM ERIE TO MR A. CLIFTON HODGES, ATTORNEY FOR THE CMKM/CMKX VICTIMS, HAD NOT BEEN DELIVERED AS AT THIS POSTING. Specifically:

(1): The relevant package was accepted at ERIE Postal Station
No. 12 (USPS 16505) at 10:42 am on 16th March 2010.

(2): The package arrived at the Post Office, Pasadena, CA, at 8:35 am on 19th March 2010.

(3): We await confirmation that it has been delivered to Mr Hodges. UPDATE: At 4:45pm on 19th March, the Editor was advised that Mr Hodges’ package had arrived. The Editor was out of the office from 3:30pm until 10:00pm on Friday, so this Update was not appended until midnight.

( C): A THIRD PACKAGE CONTAINING THE SAME MATERIALS [FOR A PARTY
WE CANNOT REVEAL AT THIS TIME] HAS BEEN ‘MISSENT’, WHATEVER THAT MEANS.

Specifically:

(1): The relevant package was accepted at ERIE Postal Station No. 12
(USPS 16505) at 10:43 am on 16th March 2010.

(2): The package containing the Corporate Resolution arrived at the designated US Post Office at 8:54am on 19th March 2010.

(3): The next entry states: MISSENT, March 19, 2010, 8:55 am.

We await urgent confirmation that the package addressed to this
important third party has NOT been intercepted, and has been delivered.

(B): SALVATORE R. DEFRANCESCO REPORTEDLY BEING SOUGHT
BY THE DEPARTMENT OF JUSTICE AND TREASURY AGENTS:

• FACTS:

(1): On arrival in New York late in the evening of 16th March 2010, the Editor received an email
from a knowledgeable source indicating that Salvatore R. DeFrancesco ‘had been’ arrested in the preceding 24/48 hours.

(2): At 14:56pm on 17th March 2010, the Editor received an email from, another informed source who stated that in response to the Editor’s inquiry on this score, ‘so far, I can neither confirm nor deny the recent arrest of Salvatore R. DeFrancesco’, but that he was making further enquiries.

(3): At 10:55am on Thursday 18th March 2010, the Editor received the following email from Mr A. Clifton Hodges, lawyer for the CMKM/CMKX victims of the colossal SEC Phantom Shares scam:

‘I received [the following] information this morning: [quote]: “He is actively being sought by the DOJ and by Treasury agents; he is expected to be in custody by the end of the day”.

Mr Hodges elaborated: ‘I have been promised further information when he is in fact in custody; I will of course pass it on upon receipt’.

(4): At about 1.00pm on Friday 19th March, the Editor made further enquiries as to the status of the REPORTED search for the Mafioso impostor whose name had been illegally inserted as Secretary of Pennsylvania Investments, Inc. with the full prior knowledge and manifest cooperation of the Pennsylvania Department of State Corporations Bureau and the Pennsylvania Department of Revenue [see original report below], as a result of which we learned as follows:

• The information that Salvatore R. DeFrancesco is being sought by the DOJ and by Treasury agents is reconfirmed [by a ‘special’ source].

• As of the time of this posting SALVATORE R. DEFRANCESCO HAD NOT BEEN ARRESTED AND WAS THEREFORE NOT IN CUSTODY.

THEREFORE THE WHOLE MATTER REMAINS UP IN THE AIR ‘AS WE SPEAK’.

OUR WORKING ASSUMPTION IS OF MORE SKULDUGGERY
Given all of the above, our interim conclusion is that we are dealing with MORE DECEPTION and that various layers of hastily contrived cover-up operations have been activated to facilitate or cover up the intended giga-theft.

So far as we are concerned, indications that this Mafioso is being sought by the DOJ and Treasury agents must be accompanied by the necessary caution that NOTHING THAT U.S. FEDERAL OR STATE AUTHORITIES ASSERT AS FACT CAN BE TRUSTED.

LIES ARE STANDARD OPERATIONAL U.S. FEDERAL AND STATE GOVERNMENT PRACTICE.

We await further developments.

• NEW SCURRILOUS ATTACK ON THE EDITOR OF THIS SERVICE: FOOT OF THIS REPORT

• FORENSIC DECONSTRUCTION OF A BOLD, BRAZEN WHITE HOUSE CRIME CAUGHT IN TIME

• SECURITIZATION IS ILLEGAL UPDATE: In the Subs/Books Update panel immediately below the NEWS panel that you are currently viewing, you will see an announcement concerning publication of Economic Intelligence Review, Volume 12, Numbers 7 & 8. If you press that announcement text and open up the panel, you will see the contents list for the new [2010Q1] issue of E.I.R., including a breakdown of the Chapter Headings for the detailed analysis showing that Securitization is illegal. See our NEWS report dated 10th March 2010 for summaries of some of the data from this analysis. We understand that the report has created uproar in certain corridors of corrupt power.

FOREWORD:

ARTICLES OF AMENDMENT RE: PENNSYLVANIA INVESTMENTS, INC.
Submitted with the $70 necessary filing fee to Pennsylvania Department of State, Corporation Bureau by Pennsylvania Investments, Inc., 1157 West 7th Street, Erie, PA 16502, on 15th March 2010. Pennsylvania Investments, Inc. was incorporated on 11th December 1984 under the following Pennsylvania Statute: 19 PA CODE CH. 35 (1933) P.L. 354, as amended. The Articles of Amendment stated that: ‘The amendment shall be effective on March 13th [2010] at 12:01 pm.’

The amendment was adopted by the Board of Directors pursuant to 15 Pa. C.S. Section 1914(c) or Section 5914(b). ‘The amendment adopted by the Corporation is set forth in Exhibit A attached hereto and made a part hereof’. ‘In testimony whereof, the undersigned corporation has caused these Articles of Amendment to be signed by a duly authorized officer thereof this 13th day of March 2010: PENNSYLVANIA INVESTMENTS, INC.

[Signed] Michael C. Cottrell: Title: PRESIDENT, CEO, SECRETARY AND TREASURER: 3/13/2010

Exhibit A forming an integral part of these Articles of Amendment:

PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814-453 4453
Email: pii-mcc@msn.com; pii3mcc@gmail.com

EXHIBIT “A”: 13 March 2010

CERTIFICATE OF ADOPTION OF CORPORATE RESOLUTION

I hereby certify that at a meeting of the Board of Directors of Pennsylvania Investments, Inc., a corporation organized and existing under and by virtue of the laws of the state of Pennsylvania, held on the 13th day of MARCH, 2010 at which said meeting a quorum was present and acting throughout, the following resolutions were adopted and ever since have been and now are in full force and effect:

RESOLVED, that due to the attempted fraudulent devices indicated by the PENNSYLVANIA DEPT. OF STATE (www.corporations.state.pa.us/corp) of 8 MARCH 2010, et al., THIS CORPORATION HEREBY DECLARES any and all corporate resolutions pertaining to bank accounts excluding PNC ACCOUNT, ROBIN DRIVE, ERIE, PA, and all other Securities Accounts, excluding MORGAN STANLEY SECURITIES ACCOUNT (16 November 2005), as NULL AND VOID;

RESOLVED, that since this corporation has never granted a non-owner of shares of this corporation any directorship or office, it hereby grants Michael C. Cottrell, B.A., M.S., the retention of full authorities and powers as President, Vice President, Treasurer and Secretary, and is thereby granted full authorization and control of this corporation as per this duly authorized resolution;

IN WITNESS WHEREOF, I have hereunto set my signature
for said corporation this 13th day of March, 2010.

[Signed]:
Michael C. Cottrell, B.A, M.S.
President, CEO, Treasurer, & Secretary
Date: 3/13/2010

[Signed]:
Diane R. Cottrell, B.A., M.A.
(A.K.A. Diane R. Bertolini, B.A., M.A.)
Shareholder
Date: 3/13/2010

• Note: The Editor of this service holds copies
of these Articles of Amendment and of Exhibit “A” in our files.

• MAY WE INTRODUCE YOU TO SALVATORE R. DEFRANCESCO?

• ENTITIES THAT BALLOONED VIA ILLEGAL SECURITISATION

• DERIVATIVES EXPLOSION FOLLOWED PAULSON’S HIJACKING OF THE $4.5 TRILLION

• THE COLLECTIVE OF CRIMINAL AMERICAN PRESIDENTS

• MR COTTRELL CHECKS HIS CORPORATION’S STATE SCREEN

• OBJECTIVE: TO STEAL THE IMMINENT PAYOUTS
VIA THE ‘ITALIAN’ IMPOSTOR AS ‘SECRETARY’

• MONUMENTAL BLUNDER BY THE WHITE HOUSE CROOKS AND THEIR ASSOCIATES

• THE IMMEDIATE PREDECESSOR DECEPTION THAT WE ALSO ABORTED

• INDICATIONS OF RECKLESS, RUSHED IMPLEMENTATION

• ROUTINE EMBEDDING OF A STATE BUREAUCRACY
WHEN STRUCTURING SUCH A PLANNED GIGA-CRIME

• COMPARISON WITH THE STEALING OF TAX REVENUES IN WISCONSIN

• WHAT HAPPENED AFTER THE ‘ITALIAN SECRETARY’ WAS DISCOVERED

• CHINESE CONFIRM THAT ‘BUSH SENIOR’ IS STILL INTERFERING

• SUDDEN PHONE CALL FROM THE PA DEPARTMENT OF REVENUE

• COTTRELL DEMANDS FAXED COPIES OF PA’S TAX RECORDS

• MAFIOSO REMOVED FROM COTTRELL’S CORPORATE SCREEN

• FORENSIC ANALYSIS OF THE DOCUMENTS MAILED BY MS. CASTILLO

• STARTLING FINDINGS FROM OUR FORENSIC EXAMINATION
OF PA CORPORATE SCREEN DOCUMENTS

• INTENTION TO USE COTTRELL’S INVESTMENT CORPORATION
TO STEAL THE $6.2 TRILLION TRACEABLE BACK TO THE FALL OF 2007

• THEREFORE, AMERITRUST GROUPE, INC. WAS A TYPICAL C.I.A.
‘BLIND’ DECEPTION [SET UP VIA LEVITTE: FRANCE/DVD]

• INCOHERENT ‘EXPLANATION’ BY THE PA DEPARTMENT OF REVENUE

• PREPARATIONS FOR THEFT PUT IN PLACE SEVEN YEARS AGO:
ASSUMPTION THAT THE PAYMASTER WOULD COOPERATE

• WE HAVE NO DOUBT THAT GEORGE BUSH SENIOR, GORBACHEV, KOHL
AND ACKERMANN WERE EXPECTING TO SPLIT THE QUEEN’S $6.2 TRILLION
BETWEEN THEM, VIA DEUTSCHE A.G.. THAT WAS THE INTENTION.

• SUMMARY OF THE PENNSYLVANIA FRAUD

• DOCUMENTS RELATING TO THE PENNSYLVANIA FRAUD

MISPRISION OF FELONY: U.S. CODE, TITLE 18, PART 1, CHAPTER 1, SECTION 4:
‘Whoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some Judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both’.

‘Seeing what’s at the end of one’s nose requires constant effort’. George Orwell.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

• BOOKS: Edward Harle Limited has so far published FIVE intelligence titles: The Perestroika Deception, by Anatoliy Golitsyn; Red Cocaine, by Dr Joseph D. Douglass, Jr.; The European Union Collective, by Christopher Story; The New Underworld Order, by Christopher Story; and The Red Terror in Russia, by Sergei Melgounov. All titles are permanently in stock. We sell books DIRECT.

• ADVERTISEMENT: Details of the INTERNET SECURITY SOLUTION software offered by this service in conjunction with a donation can be accessed immediately: See the Home Page World Reports Limited serials catalogue by clicking World Reports Limited and scrolling to foot of page. Scroll to the foot of THIS page to read our extended Ad. for the INTERNET SECURITY SOLUTION.

Christopher Story FRSA, Editor and Publisher, International Currency Review, World Reports Limited, London and New York. For earlier reports, press the ARCHIVE. Order your intelligence subscriptions and ‘politically incorrect’ [i.e., correct] intelligence books online from this website.

• CMKM/CMKX CASE DOCUMENTS:
Press Archive for this report [29th January 2010]
Case Number CV10-00031 JVS (MLGx):
SERVICE OF CMKM.CMKX $3.87 TRILLION SUIT VS. S.E.C.
You can also access the CMKM/CMKX text at: http://viewer.zoho.com/docs/paKdda
The biggest lawsuit in world legal history: The phantom share giga-scandal.

NEW REPORT STARTS HERE:

MAY WE INTRODUCE YOU TO SALVATORE R. DEFRANCESCO?
Have you met or heard of Salvatore R DeFrancesco?

Salvatore DeFrancesco Senior, that is.

No? Then may we please have the pleasure of introducing him to you.

It has been reported to us that Salvatore R DeFrancesco Sr. is an associate of, or has current or past relations with, George H. W. Bush, and is well known in certain, shall we say, ‘exotic’ banking and other financial circles, and among ‘the Italian community’ in the United States, doubtless including Chicago. He has influence with a number of important financial institutions.

He is aged about 60, and has a son, Salvatore Raymond DeFrancesco Jr, CPA, aged 40. Prior to January 2003, Salvatore R. DeFranceso Jr. was Chief Financial Officer of Landmark Community Bank in Pittston, Pennsylvania.

In November 2009, Salvatore R DeFrancesco Jr. was reported to be Chief Financial Officer and Treasurer of Fidelity D & D Bancorp., Inc., positions he has held since January 2003 – as well as serving as Executive Vice President and Chief Financial Officer of Fidelity Deposit & Discount Bank, both of Dunmore, Pennsylvania.

ENTITIES THAT BALLOONED VIA ILLEGAL SECURITISATION
Salvatore DeFranceso Senior is Vice President of Penn Acceptance Corporation, and is a partner/owner with Daniel and Joseph Limongelli of Penn Acceptance Corporation, Avoca, PA.

Joseph Limongelli is President and Secretary, and Daniel Limongelli is Treasurer of Penn Acceptance Corporation, with their mailing address at 639 Main Street, Avoca, PA 18641-0.

However the Officers of Penn Acceptance Corporation function, according to the Pennsylvania Department of State, from 2007 Highway Suite 315, Pittston TWP, PA 18640-40.

Both Fidelity D & D Bancorp., Inc/ Fidelity Deposit & Discount Bank. Inc., and Penn Acceptance Corporation ballooned in size from 2006 onwards through trading Collateralized Debt Obligations (CDOs) – which, as exposed in our report dated 10th March 2010, are illegal under US and Common Law. All such contracts, being formulated to facilitate criminal actions, are void and fraudulent [see full report dated 10th March 2010 for details].

Yet in the year ended 31st December 2006, Fidelity D & D Bancorp Inc. was a small operation, the audit fee billed by auditors Parente Randolph, LLC having cost $86,203 [2005: $41,259].

Now, as you will recall from our early reports in this series, 2006 was the year when The People’s Bank of China transferred $4.5 trillion to the United States. The transfer was immediately hijacked by Henry M. Paulson Jr. as soon as he became President Bush’s third Treasury Secretary – a man sufficiently corrupt to meet Bush’s daily criminal requirements, which Mr Paulson’s two far-from-innocent predecessors had been, shall we say, less eager to satisfy.

So, instead of being applied for the purpose indicated by the Chinese central bank, the funds were diverted to underpin securitisation operations involving massive leveraging and hypothecation for corrupt and wholly illegal transactions purposes.

DERIVATIVES EXPLOSION FOLLOWED PAULSON’S HIJACKING OF THE $4.5 TRILLION
It was therefore ‘no accident’ that the derivatives explosion took off from 2006 onwards, leading straight to the brick wall encountered in September 2008; and among entities heavily involved in these CDO excesses were Fidelity D & D Bancorp, Inc./Fidelity Deposit & Discount Bank and Penn Acceptance Corporation, which expanded on a scale which could not possibly have occurred had they been involved exclusively in legitimate business.

On 11th December 1984, Michael C. Cottrell, B.A., M.S., founded and registered Pennsylvania Investments, Inc. with the Commonwealth of Pennsylvania Department of State Corporations authorities. The firm is registered as Business Corporation Entity #844244 in the Commonwealth of Pennsylvania, and its Principal Office Address is shown as 1157 West Seventh Street, Erie, PA 16502. The sole Officer of the Company has been Michael C. Cottrell, President and Secretary.

For the record, the Editor of this service holds paper copies of printouts confirming the foregoing outline information concerning Pennsylvania Investments, Inc., from the Pennsylvania Department of State Corporations authorities’ Microfilm Number 8475 [Start: 905; End: 907] dated: 6th April 2005; 1st October 2006; 27th March 2008; 15th May 2008; 22nd December 2008; and 9th May 2009.

THE COLLECTIVE OF CRIMINAL AMERICAN PRESIDENTS
You will recall that we have reported that the Collective of Five Criminal Presidents of the United States – Carter (39), Bush Sr. (41), Clinton (42), Bush Jr. (43) and Obama (44) – DEMANDED immunity from prosecution from the World Court around last September, and were granted such immunity in a scandalous departure by the World Court, given that in seeking immunity these Presidents were self-acknowledging their need for immunity from prosecution and therefore openly confirming that they themselves recognise that they are criminal operatives.

[A statement by an anonymous, and therefore non-credible, Internet source on 11th March, citing unprovenanced and unprovable so-called intelligence sources that this is not true, is false].

You may also have noted that we doubt whether the World Court’s outrageous grant of immunity – conveying the impression that the World Court considers that its responsibility may be to protect high-level criminals from prosecution – protects the Collective of Presidents in the United States itself: it is applicable to the financial crimes that have been committed in Britain and Europe.

These reminders are inserted here in order to re-emphasise that President Obama and the other four Presidents ‘work together’ as a criminal Collective: so the sudden appearance of President Obama in Pennsylvania on or before 8th March 2010, related to THIS enquiry, will most certainly have reflected an operation known to or masterminded by George H.W. Bush Senior and President Obama’s Italian and other Chicago Mafiosi associates, with the full knowledge and connivance of senior CIA operative Mrs Hillary Clinton and her CIA husband, former President Bill Rockefeller.

MR COTTRELL CHECKS HIS CORPORATION’S STATE SCREEN
Now, if you’d like to pour yourself a stiff glass of whisky, we’ll divulge the purpose of this report.

On 8th March 2010, the Editor’s birthday as it happened, Mr Michael C. Cottrell performed a routine check of the Business Entity Filing for Pennsylvania Investments, Inc.

He discovered that ALL OF A SUDDEN, the following additional entry had appeared on the filing for Pennsylvania Investments, Inc. (of which of course the Editor holds multiple copies, pulled both in Pennsylvania and in the United Kingdom):

Officers:
Name: MICHAEL C. COTTRELL
Title: President
Address: 1157 W 7th Street, ERIE PA 16502-25

Name: SALVATORE R DEFRANCESCO
Title: Secretary
Address: [Address not available].

• SELF-EVIDENT FACT:
At no time since the commencement of the solar system did Michael C. Cottrell, B.A., M.S., at a Meeting of the Board of his corporation, appoint SALVATORE R DEFRANCESCO or anyone else to serve as Secretary of Pennsylvania Investments, Inc. No such filing was ever submitted to the Commonwealth of Pennsylvania Department of State Corporations Registration authorities.

OBJECTIVE: TO STEAL THE IMMINENT PAYOUTS
VIA THE ‘ITALIAN’ IMPOSTOR AS ‘SECRETARY’
Michael Cottrell reacted, as did the Editor of this service, Mr A. Clifton Hodges, Attorney for the CMKM/CMKX victims of the colossal Securities and Exchange Commission PHANTOM SHARES fraud, and others informed of this intrusion, with justified fury and outrage.

MR COTTRELL PHONES THE PA DEPARTMENT OF STATE
Michael Cottrell began by telephoning a Ms. Butler, Supervisor, Pennsylvania Department of State between approximately 9:34 a.m. EST and 9:40 a.m. EST, informing her inter alia as follows:

• Pennsylvania Investments, Inc. is to receive funds amounting to $15 billion derived from a ‘Settlement’ between the United States of America, the World Court, the People’s Republic of China, with the signed approval of President Barack Obama; and:

• A loan worth $6.2 trillion from the British Monarchical Power for the purpose of funding a Private Refunding of the United States Dollar.

• Pennsylvania Investments Inc., and Michael C. Cottrell himself, will pay a sum in connection with Pennsylvania Corporate and Personal Taxes of $495 million arising from this ‘Settlement’ process.

• The Pennsylvania Department of State has become a participant, whether knowing or unknowing, in the perpetration of ongoing fraudulent attempts to DIVERT the foregoing funds and to subvert the payment of the foregoing PA State taxes, with the assistance of banking sector and political fraudsters located in London, Paris, Geneva, Houston, Dallas and Washington DC, and in various locations in the Commonwealth of Pennsylvania.

• This fraudulent attempt to divert the funds due to Pennsylvania Investments, Inc. is evidenced by the placement of ‘SALVATORE R. DEFRANCESCO as SECRETARY’ AS AN OFFICER (SECRETARY) OF Pennsylvania Investments, Inc. #844244 per the Pennsylvania Department of State corporations authorities’ screen dated 8th and 9th March 2010, without the knowledge or approval of the owners and Board of Pennsylvania Investments, Inc. and without the necessary Amendment of Articles.

• Michael Cottrell DEMANDED the IMMEDIATE removal of the name ‘Salvatore R. Defrancesco’ as Secretary from the screen identifying entry for Pennsylvania Investments, Inc. corporation #844244.

• Mr Cottrell also DEMANDED an investigation and a FULL REPORT TO THE BOARD of Pennsylvania Investments, Inc. corporation #844244 divulging WHO gave the authority for this intrusive name to be placed on the screen, what evidence existed of any authorization granting this individual the position of SECRETARY of Pennsylvania Investments, Inc. corporation #844244, and what action will be taken against the individual committing the fraudulent entry.

• Mr Cottrell then stated that if the offending intrusion was not removed IMMEDIATELY upon the receipt by facsimile of his letter and accompanying documentation [amounting in all to 39 pages], Pennsylvania Investments, Inc. corporation Number 844244 will move legally for fraud against the Secretary of the Commonwealth of Pennsylvania, Pedro A. Cortes and others, against this Salvatore R DeFrancesco individually and severally, referencing a fraud against Pennsylvania Investments, Inc. corporation #844244 for THREE TIMES DAMAGES, namely $45 billion:

… since the payment is IMMINENT and therefore the screen can be used to divert or steal the aforementioned funds to Fidelity Deposit & Discount Bank et al., and/or Penn Acceptance Corporation, et al.

• Pennsylvania Investments, Inc. corporation #844244 has no accounts with either. The funds are to be deposited with Pennsylvania Investments, Inc.’s identified securities account at Morgan Stanley & Co., New York, NY.

• Summary to date:
This represented a bold, brazen attempt to divert the $15.0 billion and the sovereign $6.2 trillion loan funds earmarked for the funding of the private sector Dollar Refunding Programme payable to Pennsylvania Investments, Inc., in accordance with international mandated authority, by using a fraudulent imposed ‘Italian community’ representative as SECRETARY, who would be in a position to issue instructions to the paymaster to DIVERT AND STEAL THE LOAN FUNDS for payment into accounts controlled by the unauthorised intruder posing as SECRETARY of Mr Cottrell’s firm.

MONUMENTAL BLUNDER BY THE WHITE HOUSE CROOKS AND THEIR ASSOCIATES
It also represented a MONUMENTAL BLUNDER by the criminal operatives concerned, starting with President Barack Hussein Obama – who, we have been AUTHORITATIVELY AND EMPHATICALLY INFORMED, presided over and condoned, or facilitated, this INTENDED BUT ABORTED THEFT, on behalf of the Collective of Criminal Presidents of which he is currently the de facto Chairman.

As you can well imagine, following the faxing of these documents to the named recipients, and the realisation in high places on both sides of the Atlantic that the Editor of this service had acquired copies of the documents in question, turmoil broke out in the relevant offices and corridors of corrupt power in Washington DC, London and elsewhere.

• THE CROOKS AT THE HIGHEST LEVEL HAD BEEN CAUGHT RED-HANDED TRYING, ONCE AGAIN, TO DIVERT/STEAL THE SOVEREIGN LOAN FUNDS INTENDED FOR DOLLAR REFUNDING.

THE IMMEDIATE PREDECESSOR DECEPTION THAT WE ALSO ABORTED
As you will recall, an earlier, more feeble operation had erupted, centred on a crude attempt to rewrite Mr Wanta’s legend, inter alia to purport to represent that he ‘worked for’ the Federal Reserve – which would have had tangible consequences facilitating’ diversion of the funds – contrary to the language of the Writ for a Petition of Mandamus and the Motion to Dismiss filed by the Federal Reserve Bank of Richmond, both of which were the subject of a hearing at the United States Court for the Eastern District of Virginia, Alexandria, attended by Michael C. Cottrell, Dana V. Wilcox, the Editor of this service, and Mr Wanta.

Any variation of Wanta’s legend would have undermined the language of the Petition, leaving him vulnerable to a charge of perjury: hence, when we republished the text of the Petition which it had been anticipated that everyone would have forgotten all about, that operation had to be aborted. Moreover parties involved in promulgating the lies in question had to cease and desist, as well.

So the criminal minds set immediately about reviving a dormant mechanism for stealing the funds (as they have been doing ever since our lives were turned upside down as a consequence of their serial criminality): and they came up with the Pennsylvania Fraud, built on preparations for the theft initiated seven years earlier – the most brazen attempt to steal the funds yet recorded.

INDICATIONS OF RECKLESS, RUSHED IMPLEMENTATION
The Pennsylvania Fraud has all the hallmarks of of crass. amateurish, brash risk-taking, and having been implemented (though not contrived: see below) in an extreme hurry.

The risks they took included the following elements:

• That Mr Cottrell would not check the Pennsylvania authorities’ corporate screen until after the thefts had been perpetrated, when it would, they will have assumed, have been ‘too late’.

• That the designated Paymaster would willingly participate in the diversion/theft.

• That ‘Salvatore R. DeFrancesco’ would be exposed and his connections with the Collective of Criminal Presidents and dubious financial institutions and linkages would be revealed.

• That, untypically, this Editor would not become aware of this monumental attempt to re-steal The Queen’s loan funds and the funds payable to Michael Cottrell’s corporation (related to the earlier stealing by George H. W. Bush of the Deutsche Bank AG contract and the electronic ‘stealing’ of his signature, for the private enrichment of George H. W. Bush, Mikhail Gorbachev, Helmut Kohl and Dr Joseph Ackermann as partners in Deutsche AG, St. Gallen, Switzerland) – until it was far too late.

ROUTINE EMBEDDING OF A STATE BUREAUCRACY
WHEN STRUCTURING SUCH A PLANNED GIGA-CRIME
And why did they imagine it was ‘safe’ to take such risks, implicating President Obama directly?

The answer to this question is interesting. It conforms to a standard pattern. This revolves around a STATE (never a FEDERAL: always a STATE) bureaucracy. The fraud is committed with the de facto assistance of the selected bureaucracy in question.

The function of the STATE bureaucratic element built into the operation is to provide the ‘fall-back’ pretext for the attempted theft – which is always the same, namely that the modern equivalent of ‘a clerical error’ had occurred. This ‘explanation’ surfaces when the operation has had to be aborted, as in this instance [see below]. It serves as a means of BLOCKING FURTHER ENQUIRIES, so that the sting is supposedly taken out of the outrage and everything subsides back to ‘normalcy’.

The only problem this time round is that the operation was identified, exposed, ‘stamped on’ and aborted in ‘real time’ – with the full details being made available to the Editor of this service, so that we can publicise the rotten stench of the head of the fish sitting in the White House.

In this instance, a mole inside the Commonwealth of Pennsylvania’s official structures would have procured the clandestine insertion of a Mafioso’s name as Secretary of Pennsylvania Investments, Inc. corporation #844244.

COMPARISON WITH THE STEALING OF TAX REVENUES IN WISCONSIN
We have observed and deconstructed similar corruption within the State structures in Wisconsin: see, for instance, our report dated 6th August 2007, giving comprehensive forensic details of the triplication of the same State tax, the massive cover-up that ensued, and the failure of authorities to address this corruption. Another dimension of ongoing fraudulent practice within the Wisconsin State Department of Revenue can be summarised as follows (we have documents proving this):

• As a WI State resident you receive a State tax demand, requesting tax to be paid to the Wisconsin State Department of Revenue at a box number address.

• You send the funds demanded by the Wisconsin State Department of Revenue to the post office box address printed on the tax demand.

• After a period of time you receive an agitated DEMAND from the Wisconsin State Department of Revenue for the SAME TAX, with a request that it must be paid immediately to the Wisconsin State Department of Revenue’s designated street address.

• You protest that you have already paid the tax and that you have no intention of paying it twice.

• Wisconsin State Department of Revenue then triggers its dunning procedure, charging interest on the tax you have already paid, threatening court action culminating in the sequestration of your assets to the value of the unpaid tax, and a possible jail sentence.

• You send proof of payment (the money sent to the P.O. Box) by registered recorded delivery.

• The Wisconsin State Department of Revenue reiterates that so far as it is concerned, it never received the funds. You protest that they passed through your bank statement and provide them with a copy of the bank statement in question. They continue to deny they ever received the money.

• You inform lawyers, officers under the United States under the Misprision of Felony Statute, etc. of the travesty and injustice, but nothing happens: because all involved are working this together, being masons and members of secret societies catering for their own sordid interests – but mainly because the Jewish mafia controls the Wisconsin State Department of Revenue. Undsoweiter.

In the case of the Pennsylvania Fraud, we have prima facie evidence of criminal behaviour inside the State structures. Why should Pennsylvania be any different from the State of Wisconsin?

• Here’s what happened next.

WHAT HAPPENED AFTER THE ‘ITALIAN SECRETARY’ WAS DISCOVERED
As indicated, Mr Cottrell faxed his letter and associated documents to the named recipients on 9th March 2010. The main documents faxed to the Pennsylvania Department of State and to the named recipients are reproduced verbatim below, following this narrative.

Nothing happened on 9th March; and by the morning of 10th March, Salvatore R. DeFrancesco remained on the State authorities’ official screen, falsely logged as SECRETARY of Pennsylvania Investments, Inc. So on 10th March, between 8:41 a.m. and 8:46 a.m., Michael Cottrell telephoned the Pennsylvania Department of State to ask why the necessary action to remove the imposter’s name had not been taken, as demanded in his letter to Ms. Butler, Supervisor, in that department.

Mr Cottrell was informed that Ms. Butler was ‘not in the office’. He was then placed ‘on hold’. When the woman returned to the phone, he was told that ‘we will not be taking any action at this time’. Mr Cottrell also contacted Martha Brown, General Counsel for the Pennsylvania Department of State.

CHINESE CONFIRM THAT ‘BUSH SENIOR’ IS STILL INTERFERING
On 10th March, we received authoritative intelligence from a Chinese official, sourced curiously from Hawaii, who had stated that ‘there are still problems with George Bush Sr’. This was a clear reference to the fact that the Chinese authorities knew that Bush Sr. stood behind the attempt to steal/divert the funds from Pennsylvania Investments, Inc. on 9th March – which was the (latest) date when the payouts should have taken place.

SUDDEN PHONE CALL FROM THE PA DEPARTMENT OF REVENUE
At 11.11 am Ms. Julie A. Castillo (717-705 6087), from the Pennsylvania Department of Revenue, not the Department of State, suddenly telephoned Mr Cottrell. She had ‘done some research’ and had discovered that Mr Cottrell had transposed ‘the last four digits of his [Mr Cottrell’s] own Social Security Number on a 2004 tax return, and that these last four digits corresponded to the last four digits of the Social Security Number belonging to Mr Salvatore R. DeFrancesco’. Quote unquote.

Provided you have not consumed too much whisky already, you will immediately understand that this ‘explanation’, apart from being nonsensical, was spurious and fabricated. Even if digits of a Social Security Number had been mixed up six years ago, that did not give anyone authority to assume the rôle of Secretary of Pennsylvania Investments, Inc. at any time, let alone, out of the blue, six years later, when the payments were imminent. Nice try, but manifestly irrelevant.

Further, even if this were true, it would not explain why all subsequent Cottrell tax documents after 2004 (2005) had not reflected this error.

And further still, if there was any connection whatsoever between this lame ‘explanation’ and the sudden appearance of this member of ‘the Italian community’ on the Pennsylvania Department of State’s screen for Pennsylvania Investments, Inc., why had Salvatore R. DeFrancesco not appeared on the screen from 2004 onwards?

COTTRELL DEMANDS FAXED COPIES OF PA’S TAX RECORDS
Mr Cottrell requested that Ms. Julie Castillo fax the Pennsylvania Tax authorities’ relevant Cottrell tax documentation from 2003-2004 to date, to him on his office facsimile Erie, PA. [814-453 4453], to enable him to verify the accuracy of the ‘explanation’ that she had just put forward.

Ms. Castillo said she would comply. She also said that she would need to give an instruction to the Pennsylvania Department of State, for the (intrusive, false) ‘SECRETARY’ to be removed from the screen. This telephone call terminated at 11:17 a.m..

At 11:26 a.m. on 10th March, Ms. Castillo rang Mr Cottrell back to say that she had ‘spoken to my supervisor’ who had stated that Ms. Castillo was not permitted to fax the documents in question, but that she would instead put them in the mail.

At 12:06p p.m. EST on 10th March the name of the ‘Italian’ imposter, a known associate of George Bush Sr., was still on the PA Department of State’s screen for Pennsylvania Investments, Inc.

MAFIOSO REMOVED FROM COTTRELL’S CORPORATE SCREEN
By 2:02pm on Wednesday 10th March, the screen had been amended to delete the name of the deliberately inserted Bush-Obama ‘Italian community’ impostor, so that it now read as follows:

Business Entity Filing History
Date: 3/10/2010
Name: Pennsylvania Investments, Inc.
Entity Number: 844244
Status: Active
Entity Creation Date: 12/11/1984
State of Business: PA
Registered Office Address: 1167 West Seventh Street, Erie, PA 16502-0, Erie
Officers:
Name: Michael C. Cottrell
Title: President
Address: 1157 W 7th Street Erie, PA, 16502-25

FORENSIC ANALYSIS OF THE DOCUMENTS MAILED BY MS. CASTILLO
In the early evening UK time on Saturday 13th March 2010, the Editor was informed that Ms. Julie A. Castillo had sent certain Cottrell corporate tax documents to Michael Cottrell, copies of which were faxed shortly afterwards to the Editor of this service. Specifically, we received PA Corporate Tax Reports for the years 2004, 2006 and 2007. Here’s what we found on examining these documents:

• PA Corporate Tax Report 2004: Pennsylvania Investments, Inc.
(1): The last four digits of Mr Cottrell’s Social Security Number are shown as: 8024,
which is NOT CORRECT. The first two digits of the last four digits should read: 08
(2) Michael Cottrell is listed as: President of Pennsylvania Investments, Inc. CORRECT
(3) Michael Cottrell is listed as: Secretary of Pennsylvania Investments, Inc. CORRECT
The document is signed by Michael C. Cottrell and his signature is correct.

• PA Corporate Tax Report 2006: Pennsylvania Investments, Inc.
(1): The last four digits of Mr Cottrell’ Social Security Number are shown as: 0824, which is CORRECT. That is to say, TWO digits, not FOUR digits, were transposed in the 2004 Tax Report. [Mr Cottrell advises separately that the incorrect transposition of the first two of the last four digits to 8024 also appeared on the corporate tax reports for 2003 and 2005].
(2) Michael Cottrell is listed as: President/Managing Partner of Pennsylvania Investments, Inc.
(3) Michael Cottrell is NOT listed as: Secretary of Pennsylvania Investments, Inc., contrary to the CORRECT information sustained on the PA Corporate Tax reports for 2003, 2004 and 2005. As shown separately [because of a certain complexity] below, for a number of years, Pennsylvania authorities REMOVED ALL MENTION OF MR COTTRELL AND HIS CORPORATE TITLES from the screen, as part of the intended fraud. The document is signed by Michael C. Cottrell and his signature is correct.

• PA Corporate Tax Report 2007: Pennsylvania Investments, Inc.
(1): The last four digits of Mr Cottrell’ Social Security Number are shown as: 0824, which is CORRECT. That is to say, TWO digits, not FOUR digits, were transposed in the 2004 Tax Report. [Mr Cottrell advises separately that the incorrect transposition of the first two of the last four digits to 8024 also appeared on the corporate tax reports for 2003 and 2005].
(2) Michael Cottrell is listed as: President/Managing Partner of Pennsylvania Investments, Inc.
(3) Michael Cottrell is NOT listed as: Secretary of Pennsylvania Investments, Inc., contrary to the CORRECT information sustained on the PA Corporate Tax reports for 2003, 2004 and 2005. As shown separately [because of a certain complexity] below, for a number of years, Pennsylvania authorities REMOVED ALL MENTION OF MR COTTRELL AND HIS CORPORATE TITLES from the screen, as part of the intended fraud. The document is signed by Michael C. Cottrell and his signature is correct.

STARTLING FINDINGS FROM OUR FORENSIC EXAMINATION
OF PA CORPORATE SCREEN DOCUMENTS
In the segment below divulging details of the letter and documents faxed and mailed by Mr Cottrell on 9th March 2010 to the Governor of Pennsylvania and the other named recipients, you will see under EXHIBIT “D” [Items D-01 to D-13], a list of screen documents displayed by the Pennsylvania Department of State to show the status of Pennsylvania Investments, Inc.

In addition to the findings exposed elsewhere in this report [e.g., above], we append immediately below each listing, a statement of what selected screen documents from the ‘EXHIBIT “D”’ list do OR DO NOT show – from which REITERATED INCONSISTENCIES we conclude that the Pennsylvania Department of State fiddled illegally with the screen displays for Mr Cottrell’s firm for many years, playing around with and varying what was displayed – despite the fact that no variations (Articles of Amendment) referencing changes in officers of the corporation had been filed. [Non-US readers: the US date format has to be displayed here to conform with standard US usage]:

D-01: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2010 [falsely] identifying SALVATORE R DEFRANCESCO as SECRETARY of Pennsylvania Investments, Inc. This imposter from the ‘Italian community’ appeared suddenly from ‘nowhere’.

• This represents AN ILLEGAL ACT by the Pennsylvania Department of State perpetrated against Pennsylvania Investments, Inc. The ‘explanation’ proferred by the PA Department of Revenue is spurious, insolent, diversionary, reckless, irrelevant and an insult to our intelligence.

D-02: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2010 indicating that NO AMENDMENT OF ARTICLES WAS SUBMITTED TO THE DEPT. OF STATE AUTHORIZING CHANGE OF OFFICERS since 12/11/1984.

D-03: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 5/9/2009, showing MICHAEL C. COTTRELL as PRESIDENT of Pennsylvania Investments, Inc.

D-04: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2009, showing that as of the search time 09:44 on that date no variations (Articles of Amendment) referencing changes in officers of the corporation had been filed.

D-05: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 12/22/2008, showing MICHAEL C. COTTRELL as PRESIDENT of Pennsylvania Investments, Inc. Since [see below] Mr Cottrell had been ARBITRARILY REMOVED AS PRESIDENT from the screen in earlier years [see below], the sudden ‘rehabilitation’ of Michael C. Cottrell as President of his own corporation by the Pennsylvania Department of State in December 2008 must surely have reflected some development which had compelled the corrupt PA officials concerned to REVERSE their previous illegal elimination [see below] of Mr Cottrell as President of his own corporation.

That event was the submission of an Affidavit by Michael Cottrell to Her Majesty the Queen via the Editor of this service in September 2008. Moreover it was then known, from telephone intercepts, that Michael Cottrell would be forwarding a further document [the Notarised Affirmation, shown as EXHIBIT “B”, included within the 39-page document faxed and mailed on 9th March 2010 to the Governor of Pennsylvania et al. and therefore appended (as ‘EXHIBIT “B”) below].

• This document was duly placed in the hands of the Editor of this service for forwarding to Buckingham Palace, as indicated.

D-06: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 12/18/2008 Uniform Commercial Code (UCC): This states that: Search Results Include Filings Through 12/18/2008 12:00 a.m., to which is appended the rubric: ‘There are currently no financing statements or other liens for the above requested criteria’.

D-07: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 12/22/2008, showing that as on that date no variations (Articles of Amendment) referencing changes in officers of the corporation had been filed.

D-08: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 5/15/2008. The necessary designation of Michael C. Cottrell as President and Secretary of Pennsylvania Investments, Inc., applicable since the corporation’s formation on 11th December 1984, has been REMOVED. This represents AN ILLEGAL ACT by the Pennsylvania Department of State perpetrated against Pennsylvania Investments, Inc.

D-09: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 5/15/2008, showing that as on that date no variations (Articles of Amendment) referencing changes in officers of the corporation had been filed.

D-10: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/27/2008. The necessary designation of Michael C. Cottrell as President and Secretary of Pennsylvania Investments, Inc., applicable since the corporation’s formation on 11th December 1984, has been REMOVED. This represents AN ILLEGAL ACT by the Pennsylvania Department of State perpetrated against Pennsylvania Investments, Inc.

D-11: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/27/2008, showing that as on that date no variations (Articles of Amendment) referencing changes in officers of the corporation had been filed.

D-12: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 10/1/2006. The necessary designation of Michael C. Cottrell as President and Secretary of Pennsylvania Investments, Inc., applicable since the corporation’s formation on 11th December 1984, has been REMOVED. This represents AN ILLEGAL ACT by the Pennsylvania Department of State perpetrated against Pennsylvania Investments, Inc..

D-13: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 4/6/2005. The necessary designation of Michael C. Cottrell as President and Secretary of Pennsylvania Investments, Inc., applicable since the corporation’s formation on 11th December 1984, has been REMOVED. This represents AN ILLEGAL ACT by the Pennsylvania Department of State perpetrated against Pennsylvania Investments, Inc.

• CONCLUSION FROM THE FOREGOING: The forensic evidence presented above (copies of which documents are held on file by the Editor of this service) shows that the original plan was simply to ‘delete’ Michael C. Cottrell, B.A., M.S., altogether, and to use his corporate vehicle, Pennsylvania Investments, Inc., as the shell for the purpose of stealing the $6.2 trillion sovereign funds (with its securities account with Morgan Stanley & Co., New York, NY).

The reason for this must clearly have been that it had been confirmed already by the international authorities concerned that Mr Cottrell was to be granted the privilege, given his trustworthiness and unique securities expertise, of organising and implementing the private sector fully taxable, transparent Refunding of the US Dollar.

INTENTION TO USE COTTRELL’S INVESTMENT CORPORATION
TO STEAL THE $6.2 TRILLION TRACEABLE BACK TO THE FALL OF 2007
At least that’s what appears at first sight. But on yet further investigation, it is recalled that while Michael Cottrell and Leo Wanta were staying in the Staten Island hotel (part of the ‘40 days in the hotel wilderness’) in November 2007, prior to Wanta’s ‘switch’ precipitated by what follows here, Wanta was incessantly arguing with Mr Cottrell about the necessity of equipping Pennsylvania Investments, Inc. with a BANK account with Citibank.

Mr Cottrell argued that he would never agree to using anything other than a SECURITIES ACCOUNT (i.e. the account of Pennsylvania Investments, Inc., with Morgan Stanley in New York).

[Mr Wanta was only able to travel outside Wisconsin at all because the Editor’s since stolen loan of $35,000 to him, had procured the shortening of Wanta’s probation by five years and two weeks – to 14th November 2005, rather than 28th November 2010].

In other words, while purporting to be rooting for payment into his AmeriTrust Groupe, Inc., what Wanta was actually seeking to procure while in the prolonged presence of Mr Cottrell in October-November 2007 [see our contemporary reports] was that Pennsylvania Investments, Inc. would acquire a BANK ACCOUNT from which The Queen’s sovereign $6.2 trillion loan, made available via the Bank of England to Bank of New York Mellon on 19th-20th June 2007, could be stolen as it was being paid to Pennsylvania Investments, Inc., in accordance with the international instructions.

• BECAUSE THEY COULD NOT HOPE TO STEAL THE $6.2 TRILLION
FROM PENNSYLVANIA INVESTMENTS INC.’S SECURITIES ACCOUNT.

• As repeatedly stated in these reports, a US Securities Account is infinitely more secure than a bank account. It would be VERY DIFFICULT to steal/divert money from a US securities account.

Recall that Wanta works for Bush Sr. and was the courier between Bush Senior and Gorbachëv. Wanta’s job all along has been TO FACILITATE THEFTS BY BUSH SENIOR.

• THEREFORE, AMERITRUST GROUPE, INC. WAS A TYPICAL C.I.A.
‘BLIND’ DECEPTION [SET UP VIA LEVITTE: FRANCE/DVD]
All the time that Cottrell and Story were involved with Wanta, the cover story was that funds sent over by the People’s Bank of China in May 2006 were to be paid into AmeriTrust Groupe, Inc., for the benefit of Wanta, who, as well as ‘working for’ Bush Senior, was also, all along, being used and deceived by him, and by Cheney and Bush Junior and their associates.

Wanta would leave the Staten Island hotel accommodation and go down to the public telephone booths in the hotel lobby to make calls to Mr Cheney and other operatives, to obtain his updated instructions, and to give progress reports on whether he was succeeding in getting Mr Cottrell to go along with the idea that Pennsylvania Investments, Inc., should acquire a bank account. It now transpires that this was all an elaborate cover masking the following circumstances:

• Ex-Treasury Secretary John Snow, considered by Bush Jr. to be ‘insufficiently malleable’, had to be ‘caused to resign’, in order to be replaced by Bush’s selected operative, Henry M. Paulson. The $4.5 trillion was then duly hijacked as intended (by the Bush Crime Family), by this Bush lackey, as Treasury Secretary, for use as footings for ILLEGAL securitisation operations (leveraged trading and hypothecation), thus specifically precipitating the vast EXPLOSION of derivatives in 2006-08, leading to the sudden bursting of the resulting global derivatives bubble and to the COLLAPSE following the intervention by the Editor of this service to the highest UK level – whereupon the sovereign monies were placed into ‘lockdown’ (out of access) almost immediately (on 10th-12th September 2008), unravelling exposed Bush-related Ponzi ops. (Madoff, Stanford et al).

• A year earlier, given that the $4.5 trillion had been ‘accounted for’, Wanta’s Petition for a Writ of Mandamus [June 2007] asking for the $4.5 trillion to be paid to AmeriTrust Groupe, Inc. turns out to have been an elaborate ruse, as was made obvious when Wanta appeared before the United States Court for the Eastern District of Virginia, Alexandria, on 19th October 2007, and deliberately made a complete jackass of himself from the podium. Judge Ellis accordingly pronounced in favour of the Federal Reserve Bank of Richmond’s Motion to Dismiss. The Editor was present in the Court and witnessed this fabricated theatrical scene at first hand.

• While ostensibly nevertheless subsequently waiting in the Staten Island hotel for the AmeriTrust Groupe Inc. payment to be made by Citibank in November 2007, Mr Wanta had in fact been tasked by Bush/Cheney to keep waffling about AmeriTrust Groupe while all the while pressurising Michael Cottrell to attach a bank account to his Pennsylvania Investments, Inc. corporation (which was to conduct financial transactions with AmeriTrust Groupe, Inc.). If that operation had succeeded, the intention would have been to use Pennsylvania Investments, Inc. as the shell with a bank account and an illegally imposed Secretary or Board of Directors, for the purpose of effecting the diversion of the payment of the $6.2 trillion US Dollar Refunding loan funds stipulated by the international authorities for Pennsylvania Investments, Inc., without Mr Cottrell’s knowledge or consent.

• By correctly refusing to agree to Pennsylvania Investments, Inc. acquiring a BANK account, Mr Cottrell FRUSTRATED THIS CRIMINAL INTENT, precipitating:

(1): Wanta’s ‘switch’ operation, starting with his intimation to Mr Cottrell that ‘we must get rid of Christopher Story but don’t tell him’, and culminating in Mr Wanta’s cack-handed, irregular and vituperative (without a cause) ‘dismissal’ of Michael Cottrell in March 2008 from the positions of Treasury and Executive Vice President of AmeriTrust Groupe, Inc. (received by Michael Cottrell with undisguised relief); and:

(2): The continued blocking of the Settlements because the White House et al. criminals had no intention of effecting the Settlements payments unless they could steal the bulk of them (especially the $6.2 trillion sovereign loan from the Queen for the Refunding of the US Dollar) for themselves.

FRUSTRATION BY MR COTTRELL AND THIS SERVICE of the further attempt to seize the $6.2 trillion sovereign loan fund on 8th-10th March 2010 has meant that the White House et al. have been UNABLE TO STEAL THE QUEEN’S LOAN FUNDS YET AGAIN; so they are currently trying to work out what deception they can mount next, to achieve that same constantly frustrated objective.

In other words, the Bush Crime Syndicate + CIA/DVD + the Collective of Criminal Presidents + the corrupt US Treasury under Geithner + the corrupt US State Department under Mrs Clinton have just demonstrated once again that they remain hell-bent on STEALING THE $6.2 TRILLION, i.e. mobilising these sovereign loan funds for their own purposes.

• THEY HAVE BEEN BLOCKED AT EVERY TURN.

What remains to be seen is: WILL THEY BE BRAZEN ENOUGH, AFTER BEING CAUGHT
SO RED-HANDED, TO WORK OUT YET ANOTHER WAY OF ACHIEVING THEIR OBJECTIVE?

Given that they have botched the latest attempt to steal the funds so badly, and have left such a rich trail of clues confirming their criminal intentions, the logical answer to this question, would be: NO. They have blown it. But the German element among these criminals never knows when to stop, and when it has been defeated. Their arrogance knows no limitations, as you are aware.

So a sensible precaution would be to assume that these crooks, and their associates, will continue to duck and weave and fiddle around, hoping against hope that they can pull off the stealing of the $6.2 trillion without getting caught in the act – and in spite of the fact that WE HAVE REPEATEDLY CAUGHT AND EXPOSED THEM ‘IN FLAGRANTE’.

• WHEREUPON U.S. LAW ENFORCEMENT, PAYMASTERS ETC, DO ABSOLUTELY NOTHING TO BRING THESE HIGHEST-LEVEL CRIMINALS TO JUSTICE. The fact that they hold or held high office does not place them above the law. Their continued perpetration of MASSIVE CRIMES insults the American people and all those around the world who are watching the US authorities’ lily-livered cowardice and brazen flouting of the Rule of Law in allowing these hideous criminals to continue operations, despite having been repeatedly caught either in the act or planning it.

Judging by the number of people who would have had to have known about the intended Pennsylvania Fraud, the word BRIBERY, or an illusory promise of same, springs to mind.

We understand that following the latest aborted theft attempt, the level of activity from the UK side has intensified: but of course those concerned never consult us at all.

• They just leave us ‘out there’ to stick our necks out for them, and to expose what’s going on.

INCOHERENT ‘EXPLANATION’ BY THE PA DEPARTMENT OF REVENUE
Reverting now to the attempted giga-theft of 8-9 March 2010, as you will have gathered from the above, what Ms. Julie A. Castillo of the Pennsylvania Department of Revenue represented to Mr Cottrell by telephone between 11:11 a.m. and 11:17 a.m. on 10th March 2010 was as follows:

• She had been ‘doing some research’ (following the fireworks from the Governor’s Mansion and the other official recipients which had erupted on receipt of Mr Cottrell’s 39-page facsimiles on 9th March), and had ‘established’ that:

• ‘The last four digits of [Mr Cottrell’s] Social Security Number on a 2004 tax return’ have been transposed, ‘and that these last four digits corresponded to the last four digits of the Social Security Number belonging to Mr Salvatore R. DeFrancesco’.

• This ‘somehow’ explained why Salvatore R. DeFrancesco appeared as Secretary for Pennsylvania Investments, Inc, – except that it DIDN’T. THERE WAS NO CONNECTION. THAT WAS A LIE.

PREPARATIONS FOR THEFT PUT IN PLACE SEVEN YEARS AGO:
ASSUMPTION THAT THE PAYMASTER WOULD COOPERATE
Deeper forensic consideration yields the following findings:

(1): The PA Corporate Tax Reports for 2004, 2006 and 2007 faxed to the Editor of this service are PRINTED REPORTS with all the entries inserted via the Pennsylvania Department of Revenue’s computerized system: i.e., the entries to procure the print-outs were inserted BY THE STATE AUTHORITIES themselves, NOT BY MR COTTRELL.

• The authorities are responsible for inserting the data for their print-outs.

These printed documents are signed by Mr Cottrell, and it is true that he missed the transposition of the two first digits of his Social Security Number when he signed the PA Corporate Tax report 2004 (and 2003 and 2005): but THE ERROR WAS THE TAX DEPARTMENT’S ‘ERROR’, because the document was generated by the tax authorities themselves.

• Contrary, therefore, to a subsidiary assertion by Ms. Julie A. Castillo, the ‘error’ was originated by the Pennsylvania tax authorities, NOT by Mr Cottrell.

(2): Which implies RATHER CLEARLY that this little entrapment mechanism was planned at least seven years ago – that is to say, not long after the stealing of Mr Cottrell’s Deutsche Bank A.G. contract and the ‘electronic stealing’ of his signature exposed recently in these reports, with the ultimate proceeds of that theft and the hijacking of his transactions being credited to Deutsche AG. (formerly Barrington Investment Group), St Gallen, Switzerland, the partners of which are George H. W. Bush Sr., Mikhail Gorbachëv, Dr Helmut Kohl and Dr Joseph Ackermann.

• WE HAVE NO DOUBT THAT GEORGE BUSH SENIOR, GORBACHEV, KOHL
AND ACKERMANN WERE EXPECTING TO SPLIT THE QUEEN’S $6.2 TRILLION
BETWEEN THEM, VIA DEUTSCHE A.G.. THAT WAS THE INTENTION.

(3): This deduction appears to contradict our working assumption cited above that the insertion of our ‘Italian community’ non-friend, Salvatore R. DeFrancesco, was effected IN A HELLUVA RUSH in connection with/following or coincident with the visit of President Obama to Pennsylvania – given that we have been definitively informed that President Obama was behind this attempted theft (on behalf of the Collective of Criminal Presidents).

However we think that what happened was that this long-laid bureaucratic enmeshment trap, which had been dormant for seven years, was ACTIVATED IN A HURRY so as to ‘facilitate’ the immediate stealing and diversion of Mr Cottrell’s $11.0 billion and the $6.2 trillion sovereign loan funds, which were to have been deposited on 9th March 2010: and this assessment appears to be the conclusion of the Chinese authorities, as well.

(4): The transposition of two of the last four digits of Michael Cottrell’s Social Security Number IS OF COURSE COMPLETELY IRRELEVANT to the matter in hand, since it does not ‘AUTHORISE’ the surfacing of the impostor Salvatore R. DeFrancesco as SECRETARY of Pennsylvania Investments, Inc. on the Pennsylvania Department of State’s screen for corporation ##844244.

(5): Therefore, the ‘explanation’ proffered by Ms. Julie A. Castillo [717-705 6087] is proven to be SPURIOUS, DISINGENUOUS, IMPERTINENT, OBFUSCATORY, DIVERSIONARY, AND IRRELEVANT.
The ‘explanation’ generated in extremis under pressure by Pennsylvania’s Department of Revenue DOES NOT ‘EXPLAIN’ the fraudulent appearance of a noted member of ‘the US Italian community’ as Secretary of Pennsylvania Investments, Inc., immediately ahead of the large payouts in question.

(6): The criminal crudity of this dirty little pre-planned stratagem with colossal implications for the WHOLE WORLD is self-evident, not least since it begs the subsidiary question: if Madam Julie A. Castillo’s ‘explanation’, is pertinent, why did Salvatore R. DeFranceso not appear as Secretary on the Pennsylvania Department of Revenue’s successive PA Corporate Tax Reports print-outs for Pennsylvania Investments, Inc., back in 2004 (2003 and 2005)? Problem: In 2004, the Secretary of Pennsylvania Investments, Inc. was shown as Michael Cottrell, so that ‘couldn’t happen’.

(7): SO: On subsequent PA Corporate Tax Reports for Pennsylvania Investments, Inc., Michael Cottrell’s name was REMOVED from the entry on the Department’s print-outs showing him as SECRETARY, in readiness for this diabolical criminal operation, see?

IN OTHER WORDS, THE EVIDENCE SHOWS THAT A CRIMINAL THEFT FROM PENNSYLVANIA INVESTMENTS, INC., on top of the theft of Mr Cottrell’s Deutsche Bank AG contract and the ‘electronic stealing’ of his signature, WAS PLANNED AS LONG AGO AS 2003-2005.

(8): There can be little doubt that if this outrageous criminal operation, masterminded in its most recent phase by the Obama White House, had not been spotted in time, the $15.0 billion and the $6.2 trillion sovereign loan funds WOULD HAVE BEEN DIVERTED/STOLEN, as was clearly intended – the underlying practical assumption being, no doubt, that this would have been achievable with the enthusiastic participation of the Paymaster, who would have been handsomely ‘paid off’ for his practical assistance in facilitating the stealing of The Queen’s loan funds by George Bush Senior, Mikhail Gorbachev, Helmut Kohl and the CEO of Deutsche Bank, Dr Joseph Ackermann.

• That’s how these people operate.

SUMMARY OF THE PENNSYLVANIA FRAUD
So this colossal aborted criminal operation represented a blatant, rushed, yet long preplanned, reckless, brazen attempt by the President of the United States, Barack Obama, in conjunction with the Collective of Criminal Presidents and their co-conspiring associates, of which Mr Obama is the de facto Chairman, to steal Mr Cottrell’s $11.0 billion and to re-steal the $6.2 trillion sovereign loan funds which the Basel instructions require to be paid into the Securities Account held with Morgan Stanley & Co, New York, NY, of Pennsylvania Investments, Inc., for the sole purpose of financing the transparent, on-the-books, fully taxable US Dollar Refunding process, which remains the ONLY solution to the crisis and has long been approved by the Group of Seven financial powers.

We have further definitive official confirmation from our special sources, that this ‘is what the instructions say’. We also have information to the effect that since Mr A. Clifton Hodges’ letter to the Editor of this service which we were recently asked to forward to Buckingham Palace, there has been ‘heightened activity’ from London in this overall context.

What distinguishes this brazen attempted giga-theft from its multiple predecessors is that, given the much more intense scrutiny of the behaviour of these organised criminals holding the highest offices in the United States, the perpetrators were caught IN FLAGRANTE, in real-time.

In their greedy RUSH and lust to re-seize these funds illegally for their own gross purposes and self-enrichment, that ‘Italian’ character linked to Bush and Obama was intentionally and illegally inserted as ‘SECRETARY’ of Pennsylvania Investments, Inc. immediately ahead of the relevant intended ‘Settlements’ payments, so that Salvatore R. DeFrancesco could instruct the Paymaster to divert the funds corruptly into bank accounts designated by the Collective of Criminal Presidents.

The operation had, as we have seen, all the hallmarks of having been devised under pressure and in a rush, albeit having been planned many years in advance in anticipation of such a contingency.

The payments were imminent, and there was not much that could continue to be done to block them: so emergency criminal measures needed to be taken to divert the funds at the point of remittance. Any problems arising from the theft could be ‘sorted out’ later.

We can see from the lame, concocted bureaucratic ‘clerical error’ explanation put forward in the phone call from Ms. Julie A. Castillo of the Pennsylvania Department of Revenue to Mr Cottrell between 11:11 a.m. and 11:17 a.m. on 10th March 2010 from 717-705 6087, that the bureaucratic back-stop had to be invoked in a terrible hurry – which was why Ms. Castillo came up hurriedly with such a completely disconnected and ludicrous insult to our intelligence with her unrelated invocation of ‘four’ Social Security digits allegedly mixed up back in 2004, which of course had nothing to do with the surfacing of Salvatore R. DeFrancesco as ‘Secretary’ of Pennsylvania Investments, Inc.

And what further emerges from this is that Ms. Castillo inadvertently ADMITTED that the criminal stratagem to steal funds that we have exposed had indeed been activated. This can be deduced from the fact of the disconnect between the ‘explanation’ and the fact of the member of the ‘Italian community’s’ appearance on the Pennsylvania Department of State’s screen. Because, as you will now readily concur, the very fact that THERE IS NO CONNECTION reveals precisely that THEY HAVE ADMITTED THE EXISTENCE OF THE CRIMINAL STRATEGY TO STEAL THE FUNDS.

• In other words, THEY BLURTED OUT THE ESSENCE OF THEIR CRIME.

Put another way, such a connection could ONLY be made by the criminal minds involved, given that there is no logical connection. So they have COMPOUNDED THEIR BLUNDER: they have actually confirmed the pinpoint accuracy of the conclusion from this forensic analysis.

• That, in turn, means that some or all of the recipients of Mr Cottrell’s faxes dated 9th March are CO-CONSPIRATORS in a colossal attempted fraudulent transaction the purpose of which was to STEAL THE FUNDS LOANED BY THE QUEEN PRO BONO PUBLICO IN ORDER TO FINANCE THE REFUNDING OF THE U.S. DOLLAR. And since we know that Mr Barack Obama and his White House precipitated this attempted hijacking operation, President Obama and his criminal cronies within and adjacent to the Beltway de facto ‘work for’ Bush, Gorbachev, Kohl and Ackermann.

For future reference, please take on board the criminal modus operandi explained above that is routinely used in the United States for such scamming operations: always to embed a STATE (NOT a Federal, but always a STATE) bureaucracy within the structured framework of the intended criminal giga-theft – for use as a ‘back-stop’ device, should the heist be exposed.

• That way, State officials, elected or career, always get the blame, and the whole operation disappears into a bureaucratic black hole hundreds of miles away from the Beltway.

Imagine how difficult it would have been to prove that the funds had been stolen, if this outrage had not been discovered in time to compel the criminals to abort their botched operation.

DOCUMENTS RELATING TO THE PENNSYLVANIA FRAUD

At about lunchtime UK time on 9th March 2010, the Editor’s fax machine delivered a large number of pages on Pennsylvania Investments, Inc. letterheading addressed to:

(1): Edward G. Rendell, Governor of Pennsylvania.
(2): Pedro A. Cortes, Secretary of the Commonwealth of Pennsylvania.
(3): Tom Corbett, Attorney general of the Commonwealth of Pennsylvania.
(4); Robert S. Cessar, United States Attorney, Pittsburgh, PA.
(5): A Clifton Hodges, Esq., Hodges and Associates, Pasadena, CA.
(6): Mr William Bonney, Sr., BOLDCAP.
(7): Mr Dana V. Wilcox.

Selected documents that were forwarded by fax and US mail by Mr Cottrell in the face of this criminal provocation were as follows:

……………………………………………………………………………….

(1): FAX COVER
PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com

TO: Pennsylvania Department of State
401 North Street, Room 206
P.O. Box 8722
Harrisburg, PA 17105-8721

Attention: Ms. Butler, Supervisor

Via: Fax: 717-783 2244

ITEMS ENCLOSED:
(1): Letter of Notification regarding: Fraudulent Entry on www.corporatyions.state.pa.u./corp by person(s) unknown against Pennsylvania Investments, Inc. [3/8.2010]: 3 Pages
(2): Exhibit “A”: 12 Pages
(3): Exhibit “B”: 5 Pages
(4): Exhibit “C”: 3 Pages
(5): Exhibit “D”: 15 Pages.

Number of pages including cover: 39
9 March 2010
……………………………………………………………………………….

(2): LETTER OF NOTIFICATION TO
PENNSYLVANIA DEPARTMENT OF STATE:

PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com

TO: Pennsylvania Department of State
401 North Street, Room 206
P.O. Box 8722
Harrisburg, PA 17105-8721

Attention: Ms. Butler, Supervisor

Reference:
Due Diligence Accounts Payable [Nov 19th, 2004 to March 25th, 2008]

RE: FRAUDULENT ENTRY ON www.corporations.state.pa.us/corp BY PERSON(S) unknown against Pennsylvania Investments, Inc. (3/8/2010)

Via: Fax: 717-783 2244/ AND U.S. MAIL

Dear Ms. Butler:
Per our conversation this date, between approximately 9:34 a.m. EST and 9:40 a.m. EST, I stated to you that Pennsylvania Investments, Inc. is to receive funds in the amount of Fifteen Billion United States Dollars ($15,000,000,000.00 USD):

[Ref: Exhibit “B, Page 1” Payables Due with the Due Diligence Documentation Part 1 and Part 2, dated November 19, 2004 to March 23, 2008]

derived from a “Settlement” between the United States of America, the World Court, the People’s Republic of China, with the signed approval of President Barack Obama, and a loan of Six Point Two Trillion United States Dollars ($6,200,000,000,000.00 USD) to Pennsylvania Investments, Inc., via Her Majesty, the Queen of England (Sovereign of the United Kingdom of Great Britain and Northern Ireland) for the purpose of a Private Funding Refunding of the United States Dollar (Ref: Exhibit “B” Pages 2-4, an Affidavit submitted to Her Majesty, et al. On 29 December 2008).

Additionally, I stated to you that Pennsylvania Investments, Inc. (including Michael C. Cottrell) will pay an amount of Pennsylvania Corporate and Personal taxes of approximately Four Hundred and Ninety-Five Million United States Dollars ($495,000,000.00 USD) from this “Settlement” process.

Page 2: RE: FRAUDULENT ENTRY ON www.corporations.state.pa.us/corp BY PERSON(S) unknown against Pennsylvania Investments, Inc. (3/8/2010):

However, the Pennsylvania Department of State has now become [a] knowing or unknowing participant in the ongoing fraudulent activities [being] attempted to divert said funds and the payment of Pennsylvania Corporate Taxes and/or to steal and place said funds in “off-balance sheet account(s)” with the aid of bank and political fraudsters – located in London (UK), Paris (France), Geneva (Switzerland), Houston and Dallas (Texas), Washington, D.C., and various locations in the Commonwealth of Pennsylvania

The above referenced fraudulent activity is evidenced by the placement of “SALVATORE R. DEFRANCESCO as SECRETARY” as Officer of Pennsylvania Investments, Inc. screen dated March 8, 2010 WITHOUT a correspondent Amendment of Articles – WITHOUT THE KNOWLEDGE OR APPROVAL OF THE DIRECTORS/OWNERS OF PENNSYLVANIA INVESTMENTS, INC.

Therefore, this corporation hereby demands that the name “SALVATORE R. DEFRANCESCO as SECRETARY” BE REMOVED IMMEDIATELY FROM THE SCREEN PAGE IDENTIFYING ENTITY 844244: PENNSYLVANIA INVESTMENTS, INC., 1157 WEST 7TH STREET, ERIE PA 16502-0.

Further, this corporation demands an investigation and a FULL REPORT TO THE BOARD OF DIRECTORS – as to who gave the authority for this name to be placed on said screen, what evidence [exists] of authorization granting said person the position of SECRETARY for this corporation, and what action will be taken against said person committing the fraudulent entry.

If the offending item is not removed immediately upon the facsimile receipt of this letter and documentation, this corporation will move legally for fraud against the Secretary of the Commonwealth, the Honorable Pedro A Cortes, et al., and against SALVATORE R. DEFRANCESCO (INDIVIDUALLY AND SEVERALLY) for Fraud against Pennsylvania Investments, Inc., for THREE (3) TIMES DAMAGES, e.g., FORTY-FIVE BILLION UNITED STATES DOLLARS ($45,000,000,000.00 USD) – since the payment is IMMINENT and therefore the screen identified can be used to divert or steal the aforementioned funds, e.g. [for account of] FIDELITY DEPOSIT & DISCOUNT BANK, et al., and/or PENN ACCEPTANCE CORPORATION, et al..

This firm has NO ACCOUNTS with either. The stated funds are to be deposited with this firm’s identified Securities Account at Morgan Stanley & Co, New York, NY.

Page 3: RE: FRAUDULENT ENTRY ON www.corporations.state.pa.us/corp BY PERSON(S) unknown against Pennsylvania Investments, Inc. (3/8/2010):

Thank you for your immediate attention and assistance in this matter.

Regards,

Michael C. Cottrell, B.A., M.S.
President, CEO and Secretary
Pennsylvania Investments, Inc.
1157 West 7th Street
Erie, PA 16502-1106

Reference:
Exhibit “A”: Pages 1 thru 11;
Exhibit “B”: Pages 1 thru 4;
Exhibit “C”: Pages 1 and 2;
Exhibit “D”: Pages 1 thru 13.

CC:
(1): The Honorable Edward G. Rendell, Governor of Pennsylvania
(2): The Honorable Pedro A Cortes, Secretary of the Commonwealth
(3): The Honorable Tom Corbett, Pennsylvania Attorney General
(4): Robert S. Cessar, United States Attorney, Pittsburgh, PA
(5): A. Clifton Hodges, Esq., Hodges and Associates, 4 East Holly Street,
Suite 202, Pasadena, CA 91103
(6): Mr William Bonney, Sr., BOLDCAP
(7): Mr Dana V. Wilcox

……………………………………………………………………………….

(3): EXHIBIT “A”: WE REPRODUCE HEREWITH ONLY THE LIST OF ITEMS, LABELLED A-1 TO A-11 THAT ACCOMPANIED THE FOREGOING LETTER OF NOTIFICATION [BY FAX AND U.S. MAIL]. The Editor of this service holds copies of ALL these documents on file:

EXHIBIT “A”:

A-01: Contact Information; Pennsylvania Department of State.

A-02: Identification Screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/8/2010 [falsely] identifying SALVATORE R. DEFRANCESO as SECRETARY of Pennsylvania Investments, Inc..

A-03: Identification Screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2010 indicating that NO AMENDMENT OF ARTICLES WAS SUBMITTED TO THE DEPT OF STATE AUTHORIZING CHANGE OF OFFICERS.

A-04: Pennsylvania Investments, Inc. Articles of Incorporation ID # 8475-907.

A-05: Pennsylvania Investments, Inc. Articles of Incorporation ID # 8475-906 identifying ALL DIRECTORS/OWNERS OF THE CORPORATION [Pennsylvania Investments, Inc.].

A-06: Pennsylvania Investments, Inc. Articles of Incorporation ID # 8475-905 identifying ENTITY NUMBER 844244 and the address of the corporation [Pennsylvania Investments, Inc.].

A-07: Oath of Publication Notice, The Erie Daily Times, dated 9 January 1985.

A-08: Google search for SALVATORE R. DEFRANCESCO dated 3/9/2010, page 1.

A-09: Google search for SALVATORE R. DEFRANCESCO dated 3/9/2010, page 2.

A-10: FORBES.COM screen identifying SALVATORE R. DEFRANCESCO, page 1.

A-11: FORBES.COM screen identifying SALVATORE R. DEFRANCESCO, page 2.
……………………………………………………………………………….

(4): EXHIBIT “B”: Pages B-1 thru 4:
Item:

AFFIDAVIT SUBMITTED TO HER MAJESTY, THE QUEEN OF ENGLAND [SOVEREIGN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND] on 29 December 2008 via Mr Christopher Story, FRSA, 108 Horseferry Road, Westminster, London SW1P 2EF, United Kingdom:
[01144-02[0] 7222 3836 or 1-800-661-4809].

PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com
29 DECEMBER 2008

I, Michael C. Cottrell, B.A., M.S., do hereby swear and affirm the following facts:

1: That on December 13, 2008 between approximately 4:47 pm EST and 4:52 p.m. EST, I placed a telephone call to Mr William Bonney, Sr., – during which he notified me of the following:

(a) My relationship with Delmarva Timber Trust, et al., has caused a legal concern that will prevent me from taking economic receipt of any funds regarding the Payables Due within the Due Diligence Documentation Part 1 and Part 2 (dated November 19, 2004) to March 23, 2008) presented to Mr Bonney on May 17, 2008, at Madison, Ohio;

[Reference: Delmarva Timber Trust [R.E.I.T.] – Owen C. Meddles, Dana V. Wilcox, Michael C. Cottrell, et al.: Allocation for Release of Blocked Funds License Application Submitted to the United States Department of Treasury Office of Foreign Assets Control: Exhibits: COPY No. 004 – # 1-A, #1-B, #1-C, #1-D, #3, #5, #14, #15, #G-6, #G-4, #G-2, and #G-1].

(b) That my participation in the attempted recovery of said funds for and on behalf of Delmarva Timber Trust, et al., has caused President George W. Bush’s Administration discomfort sufficient to warrant Mr Bonney’s personal guarantee to arbitrate the “differences between the White House/Leo (Lee) E. Wanta, and Michael C. Cottrell, B.A., M.S.”.

[Reference: Delmarva Timber Trust [R.E.I.T.] – Owen C. Meddles, Dana V. Wilcox, Mrs Cheryl D. (Meddles) Torres, Michael C. Cottrell, et al.: Letter and packet, dated January 15, 2002, delivered to: The Honorable Richard B. Cheney, Vice President of the United States, The White House/West Wing Executive Offices. Exhibits: COPY #0003: pp #1 of 3, #2 of 3, #3 of 3: Encl C; Encl E; Encl F].

(c) That ALL of my personal and corporate telephone calls are recorded and transcribed at Fort Meade (NSC), et al. and are submitted to the White House.

2: That on December 26, 2008, between approximately 7:31 a.m. EST and 7:34 a.m. EST, I placed a telephone call to Mr William Bonney, Sr., and was notified of the following items:

(a) That access to the “Settlement Funds” would commence on December 26th or serious consequences for the “Bush Administrations, et al.” will occur;

(b) That regarding Leo Wanta (Wanta Plan Funds), the “big guys” have determined that President G. W. Bush will fight to release the funds until after January 20, 2009, that the “big guys” have decided not to fight him for said reason before January 20th;

(c) That the “big guys” will wait until President Obama’s Economic Team presents the “Obama Plan” approximately on January 29, 2009;

(d) That the Obama Administration will “go with the G-7 Plan, but with ‘safeguards’, since ‘others’ do not have experience with such large funds”; and:

(e) That Mr Bonney has an agenda that must be accomplished first.

3: That Mr Dana V. Wilcox, as Financial Consultant, and Michael C. Cottrell, as Secretary and Trustee of Delmarva Timber trust [R.E.I.T.] physically delivered and paid for the recording of the Articles of Amendment to the Trust, therefore, reinstating the Delmarva Timber Trust as an Active Trust with Maryland Department of Assessments and Taxation on March 28, 2001 at 10:57 a.m. EST.

4: That, during the 1980s and 1990s, until October 17, 1992, Col. Dana V. Wilcox (now retired: Richmond, Virginia, USA):

• As CEO of Errickson, Inc. and acting for and on behalf of Owen C. Meddles/Delmarva Timber Trust, et al..

• actively participated in the “last proper refunding of the US Dollar” with the cooperation and participation of:

• Col. Kok Howe Kwong, of the People’s Republic of China, via:

• Aneko Credit Pte Ltd, Singapore, Hong Kong and Austria.

5: That the aforementioned Private Funding Refunding Operation of the US Dollar was initiated by President Ronald W. Reagan, via the communiqué on August 17, 1982 and agreed upon as a result of President Reagan’s State Visit to the People’s Republic of China in April 1984.

6: That on September 12, 2006 between approximately 8:37 a.m. EST and 8:52 a.m. EST, Dr Dana V. Wilcox telephoned me and discussed the following items:

(a) That the abovementioned items combined with the current sub-prime/derivative debacle now requires a new Private Funding Refunding Operation for the US Dollar – without US Govt. funding;

(b) That the new refunding flow charts would resemble the flow charts Delmarva Timber Trust, et al., had developed under Mr Wilcox and Mr Cottrell’

(c) That said flow chart system identified joint venture projects between Pennsylvania Investments, Inc., and Delmarva Timber Trust, et al., to create new tax incentives and full tax payment to the US Government, et al., as part of the refunding process, and to fund numerous low-income housing, waste management, other infrastructure projects, administration auditing teams for the projects;

(d) That these flow charts and processes were the actual basis of the “Wanta Plan” activities, as presented to Mr Christopher Story FRSA by Michael C. Cottrell, B.A., M.S., March 15 and 16, 2006;

(d*) That Mr Wilcox agreed upon receipt of the G-7 Refunding Funds to Pennsylvania Investments, Inc. Securities Account at Morgan Stanley NYC, per the “Wanta/Group of-Seven Plan”, he would act as “Consultant at least’ for Mr Michael C. Cottrell, B.A.,, M.S., and Pennsylvania Investments, Inc.;

(e*) That the people identified within the proposed Obama Economic Team – i.e., Dr Ben Bernanke, Mr Robert Rubin, Mr Timothy Geithner, Mr Lawrence Summers, Mr Paul Volcker, and specifically Mr Rahm Emanuel (Wasserstein Perella & Co.) – may have been tainted, by the actions of previous Presidential Administrations since 1981, and, therefore, may require “safeguards” that ensure the demise or hinder the effectiveness of the “Private Funding Refunding Operation of the US Dollar”;

(f*) That Mr Wilcox and Mr Cottrell believe the release of the aforementioned funds would demand a transparent presidency and a country operating under the Rule of Law. Only a proper privately funded refunding with third party auditing – not the President’s Cabinet as the auditing party – will allow the US Dollar to regain its capitalization value and renew the world’s international trading markets with full disclosure and transparent regulation.

7: That in reference to the sworn Affidavit signed and dated September 5, 2008, and submitted via Mr Christopher Story FRSA:

• I have not received an answer back concerning the question posed to Mr Thomas J. Melville, Jr., or his contact ‘J.B.” at the US Treasury Compliance Department, New York;

8: Therefore, I respectfully request the World Court and HMQ allow the directed “G-7” nations to operate the refunding program via the “Wanta Plan” commitment with Pennsylvania Investments, Inc./Mr Dana V. Wilcox to be executed with the designated funds from the Six Point Two Trillion USD as a “loan” via the Bank of England, to the Bank of New York Mellon (19-20 June 2007) to Morgan Stanley Securities Account of Pennsylvania Investments, Inc.

A copy of this affirmation shall have the same effect and force as the original.

I, Michael C. Cottrell, B.A., M.S., President of Pennsylvania Investments, Inc., located at 1157 West 7th Street, Erie, PA, 16502, United States Passport No. 205125335, do hereby swear and affirm that the above information is true and factual.

[Signed]
Michael C. Cottrell, B.A., M.S. Dare: 12-29-2008
President
Pennsylvania Investments, Inc.
Telephone: 814-455 9218
Facsimile: 814-453 4453

COMMONWEALTH OF PENNSYLVANIA
NOTARIAL SEAL
Raemarie T. Kovaly – Notary Public
CITY OF ERIE, ERIE COUNTY
My Commission expires Aug. 03, 2012
12-29-2008

* As original. Not amended by the editor here.
……………………………………………………………………………….

(5): EXHIBIT “C”: Pages C-1 thru 2:
Item: CORPORATE AND PROFESSIONAL EXPERIENCE OF
MICHAEL C. COTTRELL, B.A., M.S.:

Michael C. Cottrell, B.A., M.S.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814-453 4453
Email: pii-mcc@msn.com

CORPORATE AND PROFESSIONAL EXPERIENCE:

• DECEMBER 1984 TO PRESENT:
PENNSYLVANIA INVESTMENTS, INC.
PRESIDENT, CEO, TREASURER AND SECRETARY

Developed and executed marketing strategies to promote the sale of Investment Advisory Asset Allocation and Risk Analysis, Mutual Funds, and Cash Management services to Pension Plan Sponsors.

Marketed Investment Advisory Services and Mutual Funds to Pension Plans (Low to Mid Size: $10 million – $100 million) while training registered Representatives on the following techniques: cold calling approaches, sales presentation methods, and closes.

Marketed Investment Advisory Services and products to NYSE Broker/Dealers in a Twenty-Five (25) State Region.

Conducted advanced sales seminars for Registered Representatives: Development and acceptance of “market timing”, defined benefit/contribution plans; 501(k) plans; third party performance verification (SEI); marketing methods for fixed income and Pooled CIGs.

Developed, published, and marketed PENNSEARCH: RISK & ASSET ALLOCATION ANALYSIS: based on Sharpe’s Single-Index Beta Model and Morley Capital’s “Compass” program. Provided Investment Analysis/Advisory Services to Pension Plan Sponsors and TPAs

• JANUARY 1990 – TO MAY 1993:
NIAGARA SECURITIES, INC.
PRESIDENT and GENERAL SECURITIES PRINCIPAL

General Securities Broker/Dealer approved by N.A.S.D and S.E.C.
Securities Licensed Series 24, General Securities Principal.

Developed (with Pennsylvania Investments, Inc.) a Public/Private $55 Million – $60 Million AFFORDABLE HOUSING VENTURE CAPITAL LIMITED PARTNERSHIP for housing the Homeless, mentally and/or physically challenged. Renewed and endorsed by the Pittsburgh Regional Office for the Department of Housing and Urban Development.

Approved by Youngstown City Council (April 1990) for initial funding for WestWind Foundation.

• JANUARY 1983 TO JUNE 1984:
E. F. HUTTON and COMPANY, INC.
PENSION CONSULTANT/INSURANCE SPECIALIST

Promoted E.F. Hutton Universal Life Products and implemented training programs for the Account Executives to coordinate an effective program of capturing client assets.

• 1970 to 1976:
U.S. NAVY, ACTIVE DUTY, HONORABLY DISCHARGED:
AVIATION METEOROLOGY: FLEET WEATHER CENTRAL,
NAS NORFOLK, VA; USS AMERICA CVN-66

• LICENSING AND ACADEMIC BACKGROUND:
N.A.S.D. & S.E.C.:
SERIES 24, November 1987
SERIES 7, November 1983
SERIES 63, December 1983

ASSOCIATE MEMBER:
Association of Certified Fraud Examiners (2003)

MERCYHURST COLLEGE:
Master of Science, 2002
Administration of Justice

National Criminal Justice Honor Society (April 2001)

PENN STATE UNIVERSITY:
Paralegal Certificate, 1998

PENN STATE UNIVERSITY:
B.A. Political Science, 1978

• PUBLISHED MATERIAL:
‘Elite Power and Capital Markets’:
Master of Science Thesis identifying a topology of deviant financial activities that include:
Political-Financial, Entity-Financial, and White-Collar (criminal) Financial Activities.

These activities illustrate political deviance evolution, involving: wealth, access, knowledge, obfuscation, and denial.

‘Pennsearch’:
A description of a portfolio/asset allocation and efficient frontier analysis system based on the client’s desired rate of return, the risk level, and various measurement standards used to evaluate the portfolio investment performance.

……………………………………………………………………………….

(6): EXHIBIT “D”: List of documents submitted with the Letter of Notification and related papers addressed to the Pennsylvania Department of State and sent by facsimile and US Mail on 9th March 2010. The documents listed here are not displayed, but the Editor holds paper copies of each of them on file. [Note: When ongoing work on our upgraded website is complete, we will be able to display such documents: but the Editor was unwilling to proceed with the revised website, which was meant to have been complete by January, without further modifications, which are in hand].

D-01: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2010 [falsely] identifying SALVATORE R DEFRANCESCO as SECRETARY of Pennsylvania Investments, Inc.

D-02: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2010 indication that NO AMENDMENT OF ARTICLES WAS SUBMITTED TO THE DEPT. OF STATE AUTHORIZING CHANGE OF OFFICERS.

D-03: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 5/9/2009.

D-04: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2009.

D-05: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 12/18/2008.

D-06: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 12/22/2008

D-07: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 12/22/2008.

D-08: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 5/15/2008.

D-09: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 5/15/2008.

D-10: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/27/2008.

D-11: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/27/2008.

D-12: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 10/1/2006.

D-13: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 4/6/2005.

NOTE: ON REQUEST, THE EDITOR WILL FAX COPIES OF THE DOCUMENTS LISTED BELOW, PROVING THE FRAUD, TO APPLICANTS WHO SEND US AN EMAIL REQUESTING THEM.

• Please press CONTACT US in the Red Box below, which sends the Editor an email. You MUST include your full coordinates, including of course your fax number. We will NOT oblige applicants for this add-on who withhold any detail of their coordinates (name, address, telephone number, proper identity: not a pseudonym, etc): if we discern that any detail in the coordinates does not ring true, we will not respond.

The documents that will be forwarded by fax are as follows:

THE PENNSYLVANIA FRAUD:
SPECIAL ADD-ON FAX: PAGE ONE:
D-01: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2010 [falsely] identifying SALVATORE R DEFRANCESCO as SECRETARY of Pennsylvania Investments, Inc. This member of the US ‘Italian community’ IS A CRIMINAL IMPOSTOR.

THE PENNSYLVANIA FRAUD:
SPECIAL ADD-ON FAX: PAGE TWO
D-02: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/9/2010 indicating that NO AMENDMENT OF ARTICLES HAD BEEN SUBMITTED TO THE DEPT. OF STATE AUTHORIZING CHANGE OF OFFICERS.

THE PENNSYLVANIA FRAUD:
SPECIAL ADD-ON FAX: PAGE THREE
D-03: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 5/9/2009, showing Michael C. Cottrell as President but OMITTING his earlier designation as SECRETARY, despite the fact that NO AMENDMENT OF ARTICLES HAD BEEN SUBMITTED TO THE DEPT. OF STATE AUTHORIZING CHANGE OF OFFICERS.

THE PENNSYLVANIA FRAUD:
SPECIAL ADD-ON FAX: PAGE FOUR
NEW: Identification screen www.corporations.state.pa.us/corp of Pennsylvania Investments, Inc. dated 3/10.2010, taken at 2:02pm EST, showing that the impostor SALVATORE R. DEFRANCESCO as SECRETARY of Pennsylvania Investments, Inc., had been removed from the screen.

(7) APPENDIX:
The following document was not included in the urgent fax sent by Mr Cottrell dated 9th March 2010 to the Pennsylvania Department of State but is included herewith for reference:

PENNSYLVANIA INVESTMENTS, INC.
1157 West 7th Street
Erie, PA 16502
Telephone: 814-455 9218
Facsimile: 814- 453 4453
Email: pii-mcc@msn.com

16 NOVEMBER 2005

CERTIFICATE OF ADOPTION OF CORPORATE RESOLUTION

I hereby certify that at a meeting of the Board of Directors of Pennsylvania Investments, Inc., a corporation organized and existing under and by virtue of the laws of the State of Pennsylvania, held on the 16th day of November 2005 at which said meeting a quorum was present and acting throughout, the following resolutions were adopted and ever since have been and now are in full force and effect:

RESOLVED,
that US Dollar account(s) be established at Morgan Stanley & Co. Incorporated located at 1221 Avenue of the Americas, New York, New York 10020.

RESOLVED,
that Michael C. Cottrell, M.S., as President and Secretary, is hereby empowered with full legal authority to sign any necessary documents to open and conduct business within said account(s) on behalf of this Corporation;

FURTHER RESOLVED, that Michael C. Cottrell, M.S., is hereby granted authority to make, execute, and deliver, any and all written instructions necessary or proper to effectuate the authority hereby conferred to sign any and all necessary documents required to execute instructions regarding activities within said account(s).

IN WITNESS WHEREOF, I have hereunto set my signature for said corporation this 16th day of November, 2005.

[Signed]
Michael C. Cottrell
President and Secretary
Date: 11-16-2005

[Signed]
Diane R Bertolini-Cottrell, B.A., M.A.
Shareholder
Date: 11-16-2005.

• 20TH MARCH 2010: ANOTHER CAVALIER DIVERSIONARY ATTACK ON THE EDITOR
We understand that the notoriously cavalier CIA/FBI/DVD disinformation and fabrication operative, Thomas Heneghan, who specialises in diversionary agitation and propaganda rather than informing readers objectively, has published a further gratuitous attack on the Editor of this service, citing International Currency Review as his source. That’s odd, because the issue he cites doesn’t exist.

International Currency Review, Volume 35, Numbers 1 & 2 is on machine for the rest of March and so has not been published yet. It will be distributed worldwide in April 2010.

Since this notorious US agitprop operative cannot even be bothered to get his citations right, his prognostications and distortions retain as little credibility as the fake ‘Principality of Snake Hill’, Australia, which his client, Mr Wanta, is desperately perpetuating in order to sustain his creaking false credentials as ‘Ambassador’.

As this fake ‘Principality’ does not exist, no State Department or United Nations authentication of Wanta’s fraudulent Ambassadorship for the Principality of Snake Hill to the United States exists, either. On 20th September 2009 and in subsequent reports, we demonstrated before the whole world that ‘The Principality of Snake Hill’ is fraudulent. Therefore, Heneghan and Wanta must be suffering from an advanced form of mental disease, insisting that black is white, lies are the truth and vice versa, which is what people who lie all their lives wind up doing as they go mad.

For the record, and for the n’th time, here is the irrefutable proof that The Principality of Snake
Hill, Australia, is a crude fabrication (using a Washington, DC (202) number supplied for Wanta’s misuse by the French Embassy when M. Levitte, now President Sarkozy’s intelligence adviser in Paris, was French Ambassador to the United States. France covers for Germany under the Treaty of the Elysee [January 1963], providing DVD ‘Black’ operatives with cover). Ms Brenda Farrell of the Australian Embassy, Dublin, responded to our Irish associate, Richard Sharpe, as indicated in the segment reproduced from our report dated 20th September 2009 [see Archive] below:

‘PRINCIPALITY OF SNAKE HILL DOES NOT EXIST’: AUSTRALIAN EMBASSY, DUBLIN
On Wednesday 23rd September 2009, our Irish friend and associate, Mr Richard Sharpe, obtained independent confirmation from Ms. Brenda Farrell, of the Australian Embassy in Dublin, that ‘The Principality of Snake Hill’ does not exist, thereby reconfirming that the entire ‘Snake Hill’ operation is, as we explained in exhaustive detail below [i.e., in the report of 20 September], FRAUDULENT.

• This definitively destroys the bona fides and reputations of the poseurs and serial deception operatives exposed in this report, and should terminate the destructive activities of these people once and for all. They are FINISHED. They have been CAUGHT OUT. Before the whole world.

Forwarded message
From: <richardsharpe@eircom.net>
Date: Wed, Sep 23, 2009 at 12:25 PM
Subject: Fwd: Principality of Snake Hill [SEC=UNCLASSIFIED]
To: mrrichardsharpe <mrrichardsharpe@gmail.com>

richardsharpe@eircom.net wrote:
Many thanks for your timely response.

Regards
Richard

“Austremb Dublin” <Austremb.Dublin@dfat.gov.au> wrote:

Dear Mr Sharpe,

Thank you for your email.

There is no principality in Australia.

Kind regards

Australian Embassy
Dublin
Tel: +353 (0) 1 664 5300
Fax: +353 (0) 1 678 5185

richardsharpe@eircom.net

A reminder of just how cavalier the self-discrediting Heneghan, who opened bank accounts for al-Qaeda-funding Marvelous Investments Limited on behalf of Wanta (who, being a felon, cannot open or own any bank account) is with his fabricated facts, followed the foregoing definitive debunking of the ‘Principality of Snake Hill’ deception which Wanta is perpetuating in order to sustain his own mental delusion that he is an Ambassador, which is not the case:

THE EDITOR REMAINS IN NEW YORK
AND DID NOT ‘FLEE THE UNITED STATES’
The fantasmogorical allegation by a notorious US disinformation operative exposed in this report [Heneghan], that the Editor of this service fled the United States on Friday 18th September in order to escape arrest by the US Marshals Service, is inconsistent with the actual fact that the Editor is working ‘as we speak’ in his New York City office premises [as of 23rd September 2009*].

There is no need to labour the point that, given this stupid invention, none of the dogmatic statements that this notorious disinformation operative posts can ever command respect.

The fabrications of this and other notorious US disinformation artists have long since destroyed their ‘credibility’, making them a laughing stock and suggesting that the CIA disinformation apparat needs to review its operations and close many of them down.

• Their counterintelligence tradecraft seems to have become permanently counterproductive.

* The email from Ms Brenda Farrel of the Australian Embassy, Dublin, was sent and received on 23rd September. Our original report is dated 20th September, and the exposure of The Principality of Snake Hill as a fraud and a fabrication was confirmed in the Update of 23rd September 2009.

………………………………………………………………

LIST OF U.S. STATUTES, SECURITIES REGULATIONS AND LEGAL PRINCIPLES OF WHICH THE CRIMINALISTS, ASSOCIATES AND ALL THE MAIN FINANCIAL INSTITUTIONS REMAIN IN BREACH:

LEGAL TUTORIAL: The Steps of Common Fraud:

Step 1: Fraud in the Inducement: “… is intended to and which does cause one to execute an instrument, or make an agreement… The misrepresentation involved does not mislead one as the paper he signs but rather misleads as to the true facts of a situation, and the false impression it causes is a basis of a decision to sign or render a judgment”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Hauppauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

Step 2: Fraud in Fact by Deceit (Obfuscation and Denial) and Theft:

• “ACTUAL FRAUD. Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.

Step 3: Theft by Deception and Fraudulent Conveyance:

THEFT BY DECEPTION:

• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.

• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.

• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.

FRAUDULENT CONVEYANCE:

• “FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.

• “Conveyance made with intent to avoid some duty or debt due by or incumbent or person (entity) making transfer…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Conveyance’.

U.S. SECURITIES REGULATIONS OF WHICH INSTITUTIONS
HAVE BEEN SHOWN TO BE IN BREACH [SEE REPORTS]:

• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957
• 97-13 Bank Secrecy Act, Recordkeeping Rule for funds transfers and transmittals of funds, et al.

U.S. LAWS ROUTINELY BREACHED BY THE CRIMINAL OPERATIVES AND INSTITUTIONS:

• Annunzio-Wylie Anti-Money Laundering Act
• Anti-Drug Abuse Act
• Applicable international money laundering restrictions
• Bank Secrecy Act
• Crimes, General Provisions, Accessory After the Fact [Title 18, USC]
• Currency and Foreign Transactions Reporting Act
• Economic Espionage Act
• Hobbs Act
• Imparting or Conveying False Information [Title 18, USC]
• Maloney Act
• Misprision of Felony [Title 18, USC] (1)
• Money-Laundering Control Act
• Money-Laundering Suppression Act
• Organized Crime Control Act of 1970
• Perpetration of repeated egregious felonies by State and Federal public employees and their Departments and agencies, which are co-responsible with the said employees for ONGOING illegal and criminal actions, to sustain fraudulent operations and crimes in order to cover up criminalist activities and High Crimes and Misdemeanours by present and former holders of high office under the United States
• Provisions pertaining to private business transactions being protected under both private and criminal penalties [H.R. 3723]
• Provisions prohibiting the bribing of foreign officials [F.I.S.A.]
• Racketeer Influenced and Corrupt Organizations Act [R.I.C.O.]
• Securities Act 1933
• Securities Act 1934
• Terrorism Prevention Act
• Treason legislation, especially in time of war.

• BEWARE OF MALICIOUS IMITATIONS: It has come to our notice that certain websites have been in the habit of copying reports from this site, attributing the reports to the Editor of this service, but at the same time AMENDING AND INSERTING TEXT NOT WRITTEN BY THE EDITOR.

• This is a very old, malevolent US counterintelligence DIRTY TRICK.

Therefore, you should be advised that the GENUINE ORIGINAL REPORT is, by obvious definition, accessible ONLY FROM THIS WEBSITE. If you come across an article elsewhere that is attributed to the Editor of this service, you should refer to the ORIGINAL ARTICLE HERE and you should bear in mind that the illegally duplicated article may contain text that was NOT written by the Editor of this service, but which was inserted for malicious purposes by counterintelligence.

Likewise, although we haven’t yet had time to elaborate this issue, we have taken drastic steps around the world to close off the malicious piracy of our books. One technique used by several disreputable sites (in the United States, the Netherlands and Switzerland) is to copy our title(s) and (a) to display an image of the front cover WITHOUT THE ISBN DATA at the top of the cover; and (b) to DELETE THE COPYRIGHT PAGE. In so doing, the criminal pirates proclaimed that they knew perfectly well that they were/are engaged in theft and can be prosecuted for stealing copyright.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

We are a private intelligence publishing house and have no connections to any outside parties including intelligence agencies. The word ‘intelligence’ on this website and in all our marketing material is used for marketing/sales purposes only and has no other connotations whatsoever: see ‘About Us’ on the red panels under the Notes on the Editor, Christopher Story FRSA, who has been solely and exclusively engaged as an investigative journalist, Editor, Author and private financial and current affairs Publisher since 1963 and is not and never has been an agent for a foreign power, suggestions to the contrary being actionable for libel in the English Court.

ADVERTISEMENT: INTERNET SECURITY SOLUTION
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Press Internet Security Solution or go to the World Reports Limited serials catalogue and scroll down until you come to this product. Then proceed through the simple and ultra-safe ordering procedure [Visa or MasterCard only]. Send a donation as you order this RECOMMENDED solution.

NON-U.S. INTERNET SECURITY SOLUTION CD AVAILABLE: FAR BETTER THAN NORTON ETC
It has now been established that the National Security Agency (NSA) works with/controls Microsoft, Norton, McAfee, and others, in pursuit of the Pentagon’s vast BIG BROTHER objective, directed from the ‘highest’ levels (not the levels usually referred to) which seek to have every computer in the world talk direct to the Pentagon or to NSA’s master computers.

This should come as no real surprise since the cynical spooks even assert this ‘in-your-face’ by advertising ‘INTEL INSIDE’, which says exactly what it means. More specifically, NSA have made great strides in this direction by having a back door built into Microsoft VISTA. Certain computers, especially those labelled with the logo of the ‘fully collaborating’ firm Hewlett Packard, have hard-core setups which facilitate the remote monitoring and controlling of personal computers by NSA, Fort Meade. We now understand that if you are using VISTA* you MUST NOT enable ‘file and printer sharing’ under any circumstances. If you say ‘YES’, so to speak, to ‘file and printer sharing’, your computer becomes a slave at once to NSA’s master computers. DO NOT ENABLE SHARING.

Unfortunately, this abomination is so far advanced that this may not be the only precaution that needs to be taken. As long as Microsoft continues its extensive cooperation with NSA and the NSC (National Security Council), the spying system which assists the criminalised structures, and thus hitherto the Bush-Clinton ‘Box Gang’ and its connections, with their fraudulent finance operations, NSA may be able to steal data from your computer. The colossal scourge of data theft is associated with this state of affairs: data stolen usually include Credit Card data, which the kleptocracy regards as almost as good as real estate for hypothecation purposes. Even so, you can make life very much more problematical for these utterly odious people by NOT USING U.S.-sourced so-called Internet Security and anti-virus software. Having been attacked and abused so often, we offer a solution.

We use a proprietary FOREIGN Internet Security program which devours every PC Trojan, worm, scam, porn attack and virus that the National Security Agency (NSA) throws at us. We are offering this program (CD) to our clients and friends, at a premium. The program comes with our very strong recommendation, but at the same time, if you buy from us, you will be helping us finance ongoing exposures of the DVD’s World Revolution and the financial corruption that has been financing it.

The familiar US proprietary Internet Security programs are by-products of US counterintelligence, and are intended NOT to solve your Internet security problems, but to spy on you and to report what you write about, to centralised US electronic facilities set up for the purpose. You can now BREAK FREE from this syndrome while at the same time helping us to MAINTAIN THE VERY HEAVY PRESSURE UPON THE CRIMINALISTS WE HAVE BEEN EXPOSING, by ordering this highest quality FOREIGN (i.e., non-US) INTERNET SECURITY SOLUTION that we have started advertising on this website. This offer has been developed in response to attacks we have suffered from the NSA nerds who appear to have a collective mental age of about five years, judging by their output.

• To access details about the INTERNET SECURITY SOLUTION, just press THE LIVE LINK YOU HAVE JUST READ, or else press SERIALS in the red panel below. This opens up our mini-catalogue of printed intelligence publications. Scroll right down to the foot of that section, where you will see details of this service. When you buy this special product, you will also, as we clearly state above, be paying a special premium by way of a donation to help us finance these exposures.

The premium contains a donation for our exposure work and also covers our recommendation based on the Editor’s own experience that this INTERNET SECURITY SOLUTION will make your Internet life much easier. The program has an invaluable ‘Preview before downloading’ feature.

• It is suitable for PC’s but not for Mac computers. As with all such programs, the License is renewable at a modest fee annually. This is done on-line in the usual way [with the supplier direct].

SECURITISATION IS 100% ILLEGAL UNDER U.S. LEGISLATION

cropped-chrisstory

WHAT THE OFFICIAL RACKETEERS ARE DESPERATELY COVERING UP

Wednesday 10 March 2010 19:30

EAVESDROPPING AND CONSTANT AMERICAN TELEPHONE HARASSMENT
CONFIRM THAT THIS SERVICE IS RIGHT AT THE EPICENTRE OF THIS CRISIS

• REPORTS UPDATE: It has been decided to post this report, containing the ‘securitisation is illegal’ data, which was nearing completion when the fraud discovered on Monday and Tuesday, erupted. Our report on this monumental fraud (which we will call, for shorthand purposes, ‘the Pennsylvania Fraud’), will follow and will probably be alternated with the present analysis. The Editor has now obtained the underlying documentation on the Pennsylvania Fraud, and will be working on this exposure report immediately (so much for his regular publishing work schedule).

• MAJOR UPDATE, 12TH MARCH 2010:

OBAMA, GEITHNER AND THE D.C MEETING ON SECURITISATION
As elaborated below, securitisation in the United States is illegal and contrary to public policy.

All securitised contracts are void not least because they were created to facilitate one or more criminal acts, as explained in this presentation. By definition and US law, all contracts created to accommodate an illegal act are void.

So, what is happening in Washington, DC, ‘as we speak’? Why, a high-level meeting has been taking place to examine how SECURITISATION of FRNs can be used to dig the Obama Administration out of the void it has created by its bovine criminality and stupidity.

The prime movers of this demented, ILLEGAL activity are President Obama and Timothy Geithner, US Treasury Secretary, backed by other purblind officials such as Larry Summers. No doubt the careful timing of the publication of our exposure of securitisation here as completely illegal and contrary to the Rule of Law, will have given the underlings of these perpetrators some concern. Obama’s World Court-granted immunity from prosecution does not extend to domestic felonies.

UNITED KINGDOM: THE LAW OF PROPERTY ACT, 1925
In the United Kingdom, The Law of Property Act, 1925, particularly Section 136 which deals with assignments, makes it crystal clear that alienation by a mortgage provider of all assets that have been assigned without notice having been issued to, or permission granted by, the debtor, is void and fraudulent. Therefore, ALL SECURITISATION OPERATIONS BY FINANCIAL INSTITUTIONS WITHIN THE BRITISH JURISDICTION WHICH HAVE NOT BEEN EXPLICITLY SANCTIONED IN ADVANCE BY THE MORTGAGOR, with the mortgagor fully aware of the situation, are void.

Northern Rock and all financial entities engaged in assigning, on-selling, trading and benefiting financially from such activity without notice to or the prior consent of the mortgagor, are engaged in CRIMINAL ACTIVITY. These institutions have accordingly been trading worthless paper between themselves within a fraudulent financial carousel, as repeatedly stated in these reports.

The Directors of these institutions should be investigated and prosecuted by the UK authorities: and if this does not happen, we will keep asking why not. No doubt Lord Myners [see Appendix below], the ‘City Minister’, knows the score perfectly well, and is being ‘economical with the truth’. In which case he is a co-conspirator in this criminality.

The bottom line here is that it is possible in the British jurisdiction to stop anyone who holds a contract for debt (the creditor) from passing that debt to a third party (debt collector) if they have not complied fully with The Law of Property Act 1925 and to hold them to the original contract and, therefore, to their stringent obligations to the debtor under the Consumer Credit Act, 1974. If they do not, the contract is toast and they cannot collect or sue for recovery of the debt. And the debtor is at liberty to counterclaim even if they do sue the debtor: which is another reason why they don’t do this. For this reason, no one talks about the The Law of Property Act, 1925. They will now!

http://www.opsi.gov.uk/RevisedStatutes/Acts/ukpga/1925/cukpga_19250020_en_1

136 Legal assignments of things in action:
(1): Any absolute assignment by writing under the hand of the assignor (not purporting to be by
way of charge only) of any debt or other legal thing in action, OF WHICH EXPRESS NOTICE IN WRITING HAS BEEN GIVEN TO THE DEBTOR, trustee or other person from whom the assignor would have been entitled to claim such debt or thing in action, is effectual in law (subject to equities having priority over the right of the assignee) to pass and transfer from the date of such notice:
(a) the legal right to such debt or thing in action;
(b) all legal and other remedies for the same; and
(c) the power to give a good discharge for the same without the concurrence of the assignor:

Provided that, if the debtor, trustee or other person liable
in respect of such debt or thing in action has notice:
(a) that the assignment is disputed by the assignor or any person claiming under him; or
(b) of any other opposing or conflicting claims to such debt or thing in action; he may, if he thinks fit, either call upon the persons making claim thereto to interplead concerning the same, or pay the debt or other thing in action into court under the provisions of the Trustee Act, 1925.

MISPRISION OF FELONY: U.S. CODE, TITLE 18, PART 1, CHAPTER 1, SECTION 4:
‘Whoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some Judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both’.

‘Seeing what’s at the end of one’s nose requires constant effort’. George Orwell.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

• BOOKS: Edward Harle Limited has so far published FIVE intelligence titles: The Perestroika Deception, by Anatoliy Golitsyn; Red Cocaine, by Dr Joseph D. Douglass, Jr.; The European Union Collective, by Christopher Story; The New Underworld Order, by Christopher Story; and The Red Terror in Russia, by Sergei Melgounov. All titles are permanently in stock. We sell books DIRECT.

• ADVERTISEMENT: Details of the INTERNET SECURITY SOLUTION software offered by this service in conjunction with a donation can be accessed immediately: See the Home Page World Reports Limited serials catalogue by clicking World Reports Limited and scrolling to foot of page. Scroll to the foot of THIS page to read our extended Ad. for the INTERNET SECURITY SOLUTION.

Christopher Story FRSA, Editor and Publisher, International Currency Review, World Reports Limited, London and New York. For earlier reports, press the ARCHIVE. Order your intelligence subscriptions and ‘politically incorrect’ [i.e., correct] intelligence books online from this website.

• CMKM/CMKX CASE DOCUMENTS:
Press Archive for this report [29th January 2010]
Case Number CV10-00031 JVS (MLGx):
SERVICE OF CMKM.CMKX $3.87 TRILLION SUIT VS. S.E.C.
You can also access the CMKM/CMKX text at: http://viewer.zoho.com/docs/paKdda
The biggest lawsuit in world legal history: The phantom share giga-scandal.

• UPDATES, 11TH MARCH: The outline report on the Northern Rock case, in which the bank lied in writing to the paid-up mortgagor whose Title Deeds the bank said had been ‘de-materialised’ and held on to for FIVE YEARS AFTER THE MORTGAGE HAD BEEN PAID OFF, and yet finally disgorged after five years (during which time the householder could not sell her home), has triggered much interest. So we have added some new data beneath the outline Northern Rock report below.

• Under US whistleblower legislation, the whistleblower is entitled to a proportion of the fraud uncovered, a point made to the Editor this morning, too. No doubt this will likewise help to focus the serpentine minds of the criminal operatives being exposed. 15% to 30% of $4.2 trillion, plus $6.2 trillion, plus multiple billions, is a lot of dosh. In fact 15% of $10.4 trillion is $1.56 trillion, and 30% is $3.12 trillion. OK, the percentage is usually 10%, applicable only after conviction of course. So make that $1.04 trillion, then. Such awards are naturally available only to US taxpayers: please see the next report, on The Philadelphia Fraud, identified by a US taxpayer.

• LISTENING-IN TO OUR PHONE CALLS GIVES THE GAME AWAY

• WHY DO THEY LISTEN-IN TO EVERY WORD? WE’VE COMMITTED NO CRIMES

• WE’VE BEEN HARASSED DAILY WITH OBSCENE U.S. CALLS SINCE FEBRUARY 2008

• ‘MR STORY IS A PROBLEM FOR THEM BUT THEY CAN HANDLE IT PROVIDED
WHAT HE EXPOSES IS BLOCKED FROM THE ‘MAINSTREAM’’

• AS WE’VE COMMITTED NO CRIMES, AUTHORITIES SHOULD SUPPORT WHAT WE’RE
DOING TO HELP THEM DO THE JOB THEY ARE TOO CORRUPT TO DO UNAIDED

• THEY FALL OVER THEMSELVES TO LISTEN-IN, SO THEY CAN WARN
THE GUTLESS ‘MAINSTREAM’ OUTLETS TO BLOCK OUR EXPOSURES

• ALL THEY DO IS INFORM US BY THEIR SORDID BEHAVIOUR THAT WE ARE RIGHT
‘ON MESSAGE’ – WHICH IS BEYOND STUPID OF THEM, WHEN YOU THINK ABOUT IT

• CRIMINALISED INTELLIGENCE POWER INCOMPATIBLE WITH SOUND GOVERNANCE

• RACKETEERS CONSTANTLY CONFRONTED WITH THE RULE OF LAW

• COWARDLY CONTROLLED NEWSPAPERS WHICH HAVE IGNORED CIMKM/CMKX

• THE DAILY TELEGRAPH: A CONTROLLED OUTLET FOR MI-6

• MI-6 ‘INTEND TO TAKE MR CHRISTOPHER STORY OUT’

• BRITISH INTELLIGENCE APPEARS TO BE BEHAVING TREACHEROUSLY, AS USUAL

• ‘MAINSTREAM’ NEWSPAPERS REVEALING THEMSELVES
TO BE CO-CONSPIRATORS IN COVERING UP THE RACKETEERING

• WHY CONFINING EXPOSURES TO THIS WEBSITE HAS BEEN
COUNTERPRODUCTIVE FROM THE RACKETEERS’ PERSPECTIVE

• OUR EXPOSURE MODUS OPERANDI: ‘WALKING IN A STRAIGHT LINE’

• QUEEN’S GOLD THEFT STILL NOT RECTIFIED:
SO, KICK THE U.S. AMBASSADOR OUT OF LONDON

• STEALING OF $4.2 TRILLION TAX MONEY ON 31ST DECEMBER 2009
STILL NOT RECTIFIED: SO MASSIVE CRIMES HAVE BEEN COMMITTED

• FISH ROTS FROM THE STINKING HEAD: WORLD COURT IMMUNITY DEMANDED
AND SCANDALOUSLY OBTAINED BY THE COLLECTIVE OF CORRUPT U.S. PRESIDENTS

• GORBACHEV MANIPULATING DEVELOPMENTS FROM HIS WING IN THE KREMLIN, AS BEFORE

• GORBACHEV, BUSH, KOHL, ACKERMANN: RACKETEERING PARTNERS IN DEUTSCHE AG.

• WANTA: THE COURIER BETWEEN BUSH SENIOR AND GORBACHEV

• WANTA’S ‘REAGAN’S JUNK-YARD DOG’ DIVERSION

• WANTA KNEW ABOUT 9/11 IN ADVANCE, LIKE VREELAND

• FRANCE COVERS FOR GERMANY UNDER TREATY OF THE ELYSEE

• FRAUDULENT WANTA ‘SNAKE HILL’ WEBSITE’S GERMAN CONNECTIONS

• CIA/DVD PRACTICE OF EXPLOITING AND STEALING OUTSIDE EXPERTISE

• THE AMERICAN INTELLIGENCE POWER WHICH HAS USURPED
THE GOVERNMENT DANCES TO THE TUNE OF FOREIGN POWERS

• WORLD REVOLUTION RACKETEERING OFFENSIVE

• ‘WALKING IN A STRAIGHT LINE’ WILL EXPOSE THE DECEPTIONS

• COTTRELL THREATENS TO SNATCH AWAY THE RACKETEERS’ COVER,
THROWING THEM INTO A MAD PANIC. THIS WAS NOT ANTICIPATED.

• THE TWO MI-6 OPERATIVES WITH THE QUEEN’S SIGNATURE:
ARE THEY WORKING FOR, OR ARE THEY DOUBLE-CROSSING THE QUEEN?

• WHAT HAS HAPPENED TO THE CHINESE CURRENCY BOXES?

• GREEK DEPUTY PRIME MINISTER EQUATES NAZI GERMANY
WITH CHANCELLOR MERKEL’S STASI GERMANY

• WHAT DO THE FOUR RACKETEERS HAVE IN COMMON
WITH OTHER WELL-KNOWN DECEASED AND LIVING OPERATIVES?

• ‘FORECLOSURE ANALYSIS’ PARA-LEGAL SERVICES SPRINGING UP IN THE UNITED STATES

• NORTHERN ROCK’S LIES TO A FORMER MORTGAGOR MASKING
THE FACT THAT HER TITLE DEEDS WERE ‘OTHERWISE ENGAGED’

• SECURITISATION IS A KEY ELEMENT OF A REVOLUTIONARY ATTACK ON PRIVATE PROPERTY

• YES, A RUTHLESS, SYSTEMATIC ATTACK ON PRIVATE PROPERTY

• LOWEST COMMON DENOMINATOR SCAMS STILL ‘OUT THERE’

• WHY SECURITISATION IS ILLEGAL UNDER U.S. AND COMMON LAW

• SECURITISATION ENTAILS GROSS VIOLATIONS OF R.I.C.O. STATUTES

• NOTWITHSTANDING THAT IT’S ILLEGAL, U.S. AUTHORITIES
CONTINUE TO PROMOTE AND ENCOURAGE SECURITISATION

• SUMMARY FORENSIC ANALYSIS PROVING THE ILLEGALITY OF SECURITISATION

• SECURITISATION: A COVER FOR TAX EVASION

• SECURITISATION VIOLATES THE U.S BANKRUPTCY CODE
AND THEREFORE ALSO CONTRAVENES PUBLIC POLICY

• SECURITISATION VIOLATES FEDERAL R.I.C.O. STATUTES

• SECURITISATION ALSO VIOLATES U.S. ANTITRUST LEGISLATION

• There is also the tenet of English law of contract which governs US law, too, that any contract entered into in order to commit a crime is (automatically) void. So what exactly do the American and British Governments think they are doing ‘accommodating’ securitisation, given this principle?

• THE ‘PHILIPPINES EXCEPTION’ BURIED IN THE CLAYTON ACT

• FANNIE MAE, FREDDIE MAC ENGAGED IN FURTHER ILLEGAL SECURITISATION:
RE-SECURITISING ALREADY SECURITISED ‘DUD’ ASSETS TO DUMP BACK ON THE BANKS

• GARY GENSLER IS NOT AS OPPOSED TO FRAUDULENT FINANCE AS HE SEEMS

• ‘GREATER TRANSPARENCY’ IS EVIDENTLY ALL GENSLER’S AFTER

• INVESTORS’ MONEY USED TO REMUNERATE WALL STREET

•’THE MONEY YOU MAKE BY MISUSING MY MONEY
IS MY MONEY‘ – I.E., THE HOME OWNER’S

• A PERVERSE AND ARROGANT OFFICIAL INTENT TO CONTINUE VIOLATING U.S. LAW

• THE DEPOSITORY TRUST & CLEARING CORPORATION IS IN OVERDRIVE

• THE FEDERAL RESERVE HAS BECOME
THE BACK-STOP GUARANTOR OF CREDIT DEFAULT SWAPS

• STAGE SET FOR AN UNIMAGINABLE (AVOIDABLE)
CATASTROPHE: A DEATH-WISH

• THE DTCC’S OBLIGATIONS WAREHOUSE SERVICE

• GREATER TRANSPARENCY WON’T ELIMINATE SYSTEMIC RISK,
OR PREVENT A CONFIDENCE CRISIS

• SO, WHERE ARE YOU, MR HOLDER?

• APPENDIX: LORD MYNERS SAYS THERE MUST BE PENALTIES FOR BANK EXCESSES

• POSTSCRIPT: STIGLITZ: ‘THE AMERICAN BANKING SYSTEM IS CORRUPT’

NEW REPORT STARTS HERE:

LISTENING-IN TO OUR PHONE CALLS GIVES THE GAME AWAY
If we go back to square one and start asking basic questions about our experiences with these exposures, interesting answers emerge. The first question that arises is this:

• Why is it that so many intelligence eavesdroppers listen to every domestic and especially international telephone call that we make and receive?

After all, the Editor has not stolen any money, has not murdered anyone, has not abducted anyone else’s child, is not a Nazi war criminal, is not engaged in espionage, is not an agent of a foreign power, has not defrauded anyone, and is not engaged in criminal activity in any shape or form. And neither, for instance, is Michael C. Cottrell, B.A., M.S., let alone Mr A. Clifton Hodges, the Attorney for the CMKM/CMKX victims, whom the Editor speaks to quite frequently on the transatlantic line.

Is it that these eager eavesdroppers like the sound of the Editor’s voice? Do they seek knowledge from us that they could not obtain from other sources? Are we the fount of all known wisdom in the universe? What do we know and say that others don’t know and can’t say, which these decadent snoopers find so electrifying in our conversations? There must be SOME explanation for their manic preoccupation with what we have to say in our private communications.

WHY DO THEY LISTEN-IN TO EVERY WORD? WE’VE COMMITTED NO CRIMES
Because given that we have committed no crimes, and neither are we patriots terrorists, there HAS to be a coherent reason why these despicable little UK, US and foreign snooping apparatchiks rush to pick up their earpieces every time we begin a conversation – knocking over their plastic coffee cups and making a mess of their work spaces in their frantic anxiety to garner every precious nugget that falls from our lips. One can hear these scum clicking in one after the other.

Oh, the red light’s gone on, we’ve got to record what Story and his correspondents are saying. Why do they need to fall over themselves to find out what we discuss, as we have committed no crimes and are not terrorists?

And why are they routinely engaged in issuing threats against the Editor of this service, and also against Mr Cottrell, and harassing both on a routine basis – Mr Cottrell as recently as 6th March? The Editor, as previously reported, has received daily voicemail messages from a controlled MK-Ultra-style ‘Black’ US DVD nutcase via Skype (Washington, DC) since the Wanta ‘switch’ in February 2008: on some days, we have counted as many as nine such demented harassment calls.

WE’VE BEEN HARASSED DAILY WITH OBSCENE U.S. CALLS SINCE FEBRUARY 2008
These crude harassment calls, which as indicated have been continuing since the Wanta ‘switch’ in 2008, reminiscent of a DVD operation (because of their Bavarian Illuminati-style ‘Black’ content and because Germans never know when to stop, and when they have been defeated) have no effect on the Editor’s work, mind or intentions: yet some ignorant cadre inside the US component of the CIA/DVD revolutionary structures is employed, for money, to continue this illegal harassment.

They seem to think it will wear us down. Instead, the parties being worn down are those who are determined, despite our exposures of their iniquity, to continue their racketeering operations in defiance of the Rule of Law that they despise.

They never thought they would encounter any opposition, and they have been on the wrong foot ever since we stood up to them. Real opposition was never anticipated.

What arrogance! What right do these little malodorous eavesdropping twerps have to intercept our telecommunications and to record what we have to say – sending, we understand, transcripts of our coveted exchanges to the White House?

What right do the National Security Agency, GCHQ, French, Israeli and German intelligence have to listen-in to our phone calls? Are we at the apex of human understanding? Do we dispense pearls of insight and wisdom so penetrating that that these little creeps cannot develop them from other sources? Now let’s broaden our enquiry further, leading in to the next question.

‘MR STORY IS A PROBLEM FOR THEM BUT THEY CAN HANDLE IT PROVIDED
WHAT HE EXPOSES IS BLOCKED FROM THE ‘MAINSTREAM’’
As displayed at the top of our report dated 2nd March 2010, Mr A. Clifton Hodges, Attorney for the 50,000 CMKM/CMKX scamees (whose CMKM stock was exploited when 2.25 trillion PHANTOM SHARES were floated via an illegal platform from WITHIN the Securities and Exchange Commission itself, under the criminal George W. Bush Administration (between June 2004 and October 2005)), was informed by an inside source that ‘Christopher Story is a problem for them, but they think they can handle it PROVIDED that what he exposes does not spill over into the ‘mainstream’ media’ [see our report dated 2nd March 2010].

The source of this information was a US official whose job it is to ENFORCE THE LAW, not to connive in violating it for purposes of expediency.

AS WE’VE COMMITTED NO CRIMES, AUTHORITIES SHOULD SUPPORT WHAT WE’RE
DOING TO HELP THEM DO THE JOB THEY ARE TOO CORRUPT TO DO UNAIDED
One would have thought that since what we are exposing is RAMPANT RACKETEERING AND CRIMINALITY WITHIN THE U.S. GOVERNMENT STRUCTURES, as well as inside the corrupted financial institutions, Fannie Mae, Freddie Mac and the criminal enterprise known as the Central Intelligence Agency, such US operatives and officials would be only too keen on encouraging the broad dissemination of information liable to lead to the indictment and arrest of the racketeers and criminals that are being protected within and close to the Washington Beltway.

But that is not the case! On the contrary, this and other ‘inside’ sources appear to have been engaged in a systematic operation to use Story, Cottrell and now Hodges as a foil and barrier, behind which to plan double-dealing and continued financial deception, and to deceive at least the first two named, in order – as with the original Wanta deception – to preserve a smokescreen as cover for the pursuit of racketeering ‘business as usual’ in general.

The intention here has been to try to conduct the US Dollar Refunding themselves, with FRNs – which will lead very rapidly to a catastrophe, so that the racketeers below the radar can then, so they imagine, unscramble and release their accumulated and worthless nominal ‘derivative’ values from off-balance sheet and offshore sources, for deployment (as is currently happening to some extent) for the Fascist-style purpose of snapping up real assets at firesale prices.

• That’s the goal of the World Revolution.

THEY FALL OVER THEMSELVES TO LISTEN-IN, SO THEY CAN WARN
THE GUTLESS ‘MAINSTREAM’ OUTLETS TO BLOCK OUR EXPOSURES
So, on the one hand, the eavesdroppers knock over their dirty plastic coffee cups as they fall over themselves to listen to and record what we have to say on the telephone; while on the other hand, they appear to be seeing to it that what we have to discuss, and what the Editor is exposing, never reaches beyond the in-house intelligence censorship ‘pods’ sitting inside all press rooms of the controlled ‘mainstream’ media, prompting the next question:

• Why are these manipulators so anxious to hear what we have to say and simultaneously so determined that what we have to say and expose never hits the ‘mainstream’?

After all, given that we have committed no crimes and are not terrorists, and the governments which these despicable little eavesdropping worms serve, supposedly believe in ‘democracy’ and ‘free speech’, don’t you know, it should surely follow that if the eavesdroppers consider that what we have to say is so superb and priceless, their governments would all be awfully keen that our invaluable information and insights should be spread extensively abroad so that the sum of human understanding is enhanced, to the benefit of all, the governments included, n’est-ce-pas?

ALL THEY DO IS INFORM US BY THEIR SORDID BEHAVIOUR THAT WE ARE RIGHT
‘ON MESSAGE’ – WHICH IS BEYOND STUPID OF THEM, WHEN YOU THINK ABOUT IT
There is of course one benefit to all this – namely, that by listening in to all our telecommunications so routinely and conspicuously, and by engaging in such persistent and futile non-stop telephone harassment (which is recorded by us for future legal reference, not listened to, and zapped), the criminal intelligence cadres concerned are signalling to us LOUD AND CLEAR that we are indeed being highly effective: otherwise they wouldn’t be wasting their time and financial resources in such underhand and counterproductive activities, would they.

So, as we have previously pointed out, these intelligence and masonic cadres are indeed plain STUPID! By their behaviour, they are telling us that we’re being effective, making a difference, and that we’re getting in the way of their racketeering operations by exposing them (as you will see from the next post!). So the confused, panicking fools are telling us all we need to know. It’s neat!

Obviously, there’s something wrong here: and one doesn’t need a first class degree in logic to be able to discern the problem. We haven’t committed any crimes and are not terrorists. Why, then, do these authorities compete among themselves not only to listen to and record what we have to say, but also to prevent the ‘mainstream’ from picking up our insights and assessments?

• ANSWER: Because the governments themselves are engaged in the very financial terrorist criminality and racketeering that we are exposing, and are terrified that the exposures will lead to what from their perspectives might become intolerable ‘unintended consequences’, with rolling outcomes that they couldn’t control. And this is in fact what is going to happen, sooner or later.

CRIMINALISED INTELLIGENCE POWER INCOMPATIBLE WITH SOUND GOVERNANCE
At this point we need to insert an obvious but almost always overlooked anomaly arising from the fact, mentioned in earlier reports, that the coexistence of criminalised, racketeering intelligence powers enjoying carte blanche to embezzle public funds and break the law (and to indulge in petty dirty tricks and bearing false witness such as those involving Gordon Thomas on behalf of MI-6: see Note (1) below), with a system supposedly based on the Rule of Law, is INCOMPATIBLE WITH SOUND GOVERNANCE – let alone with the supposed supremacy of legality.

If they prefer a system without the Rule of Law, why bother any longer with Congress and routinely rigged elections which make a mockery of democracy and just confirm that the US authorities, who hypocritically preach democracy to the Rest of the World, are indistinguishable from corrupt ‘post’-Soviet régimes, where ballot boxes (as in Ireland) are brought pre-stuffed to the polling stations?

Because the criminalised intelligence powers and those serving them:

• Exhibit open contempt for the Rule of Law, but exploit it on an open-ended basis when it suits their own nefarious purposes.

• Seek to avoid leaving traces which would contravene the law when committing their endless crimes, and yet employ every delaying and obfuscation device known to Satan, to save their own skins whenever they perceive they are themselves in danger of the full wrath of legal enforcement.

• Have failed actually to ABOLISH the Rule of Law which they exploit, injure and contravene 24/7 in their pursuit of their ‘Black’ and illegal objectives – which they imagine are ‘allowed’ in the United States thanks to the cover that they assume to be provided under the National Security Act of 1947 et seq. (the criminals’ charter).

RACKETEERS CONSTANTLY CONFRONTED WITH THE RULE OF LAW
This sick mindset was further encouraged in the United States by such ill-advised liberties as President Reagan’s counterproductive Executive Order 12333 of 1981, which catastrophically authorised US intelligence operatives to form corporations of which the operatives themselves could own the shares and which would then ostensibly ‘contract’ with the compartmentalised components of the Intelligence Power and other US agencies to perform tasks required by the Executive Branch, for which the controlling Intelligence Power acts as the clandestine arm.

Obviously, to contract with intelligence operatives who are required by Statute to deny that they are intelligence operatives and therefore to lie for a living, is equivalent to entering into a contract with the fox to guard the chicken house. Significantly, Gorbachëv’s Politburo copied this crass 1981 Reagan formula in 1990.

Therefore, while abusing and contravening the despised Rule of Law, these amoral US officials are constantly being confronted by it. Despite their disdain of the Rule of Law, it stands in their way, and they keep bumping into it, even though they do their best all the time to corrupt it.

This ironical state of affairs provides, of course, another convenient underlying, ongoing dialectic (Thesis, Antithesis) – ripe for exploitation: but in this particular case, the dialectic is a ‘given’, not an artificial construct. In other words, short of an actual criminal dictatorship, there’s not a lot they can do to alleviate their situation here other than to continue compromising, abusing and eroding the Rule of Law, through bribery and corruption.

We have established already that: the criminal governments themselves are engaged in the very racketeering criminality that we are having to expose, given not least that, as reviewed below, ALL SECURITISATION IS ILLEGAL UNDER U.S. AND COMMON LAW – and are terrified that the endless exposures will lead to what, from their perspectives, might become truly intolerable ‘unintended consequences’, with rolling outcomes that they couldn’t control.

COWARDLY CONTROLLED NEWSPAPERS WHICH HAVE IGNORED CIMKM/CMKX
Because of this cowardice on the penetrated governments’ part, the newspapers listed below have been officially prevented, to our own certain updated knowledge [10th March], from reporting even the eminently reportable CMKM/CMKX case, in which payment of $3.87 trillion is demanded from the Securities and Exchange Commission and from certain of its current and former officials, given the unprecedented scandal of the S.E.C. having floated 2.25 trillion PHANTOM SHARES from a platform operated beneath the cover of the Securities and Exchange Commission itself (2).

• Note: Page B1 of the New York Edition of The New York Times dated 12th March carries the first ‘mainstream’ report of the CMKM/CMKX case, twisted to ignore the essence of the case and to suggest, contrary to the truth of the matter, that this is just another instance of the phenomenon that scamees can never admit that they have been scammed. Naturally, one did not expect such a newspaper to report the truth, which can be established from the Complaint [see our report dated 9th January (over two months prior to The New York Times’ article)]. No, the newspaper found a spurious, populist angle which has nothing to do with the substance of the Complaint against the S.E.C., indicating how nervous the US Establishment is over these developments.

Any ‘mainstream’ newspaper that was fulfilling its responsibilities objectively as a conscientious component of the Fourth Estate would have jumped on this story long ago. After all, we published the complete text of the Complaint within hours of it being filed [see our report dated 9th January 2010]. That was TWO MONTHS BACK: and so far, NONE of the ‘mainstream’ US/UK newspapers or broadcast outlets have touched this dynamite. SPECIFICALLY:

• Mr A. Clifton Hodges, Attorney for the 50,000+ CMKM/CMKX scammees, personally informed press contacts about the case, on the following media:

• The Los Angeles Times

• The Washington Post

• The Wall Street Journal

Mr Hodges received no response.

• The Editor of this service personally informed the prominent UK financial journalist Ambrose Evans-Pritchard on The Daily Telegraph, whom he has met in the past. Since The Daily Telegraph’s offices are within walking distance of our Central London office, the Editor offered to deliver a copy of the actual Summons and Complaint by hand last week.

• The Editor did not even receive the courtesy of an acknowledgment of his emails.

THE DAILY TELEGRAPH: A CONTROLLED OUTLET FOR MI-6
Notwithstanding his duplicitous behaviour in acting as an agent for MI-6 in bearing false witness against the Editor of this service in 2004, Gordon Thomas is persona grata at The Daily Telegraph, and recently published a large article in that paper on the subject of the use of British passports by Israel assassination operatives. As the Editor’s case shows, Thomas also acts as an agent for MI-6.

Therefore, The Daily Telegraph is under the thumb of MI-6, which helps to explain quite why this newspaper – which used to publish extensive op-ed. articles by the Editor of this service in the 1970s and early 1960s, until the takeover by the since disgraced and jailed corrupt globalist felon Conrad Black – has failed so far in its duty as a key member of the Fourth Estate to report (a) the biggest official corruption case to come to Court in world history and (b) the biggest and most-far-reaching exposure of government and financial institution racketeering since the world began.

MI-6 ‘INTEND TO TAKE MR CHRISTOPHER STORY OUT’
At about 10.45pm on Sunday 7th March, the Editor was informed via a transatlantic phone call that the Editor’s correspondent had been informed by an ‘inside’ source directly connected with MI-9 (MI-6) that ‘MI-6 intend to ‘take Mr Story out’’. Apparently the intention was or is to prepare one or more ‘stings’ and traps, in the hope that the Editor will fall into them, as happened once or twice before (given that, since these people only ‘do’ deception, it is almost impossible to avoid being deceived at some stage: except that the longer they drag out their cynical games, the easier it becomes to read their criminal minds and the unchanging techniques they use (the devil isn’t a great inventor)): so the deeper the discernment one eventually acquires, and the less chance do they have of pulling off a targeted dirty trick, as intended.

The Editor enquired why this evil intent should have surfaced at this late stage in the racketeering exposure proceedings: to which the answer was: ‘They want to move on by fixing things below the radar, they are furious that you have so much information, and they want to make sure you don’t publicise the outcome, especially concerning the Dollar Refunding which they have resisted so hard, when it happens’. To which the Editor responded words to the following effect: ‘Well, a gentleman’s word is his bond. They can walk across the bridge and ring our office doorbell’.

‘They wouldn’t do that. They’d sting you instead’.

Quite right: they can’t do that now, as they have squandered so many resources trying to entrap and trip the Editor up, that a ‘gentlemanly approach’ wouldn’t work now. It would probably have worked back in 2002: but not now. If you have been deceived and abused already by your own (let alone the hideous, criminalised American) intelligence services, you aren’t likely to succumb to such a ‘gentlemanly approach’. They burned their boats.

• Not very clever: but then again, as we’ve seen, these people are extraordinarily STUPID.

BRITISH INTELLIGENCE APPEARS TO BE BEHAVING TREACHEROUSLY, AS USUAL
Anyway, thanks for the heads-up – reiterated, by the way, by the faux-demented DVD ‘Black’ Psy-Ops voice who’s being paid to plague us daily since the completion of the Leo Wanta ‘switch’ in February 2008 (as revisited briefly above). So, what we have is the following devilish equation:

(1): The Editor of this service is a patriotic supporter of the nation state, is exactly what he says he is and has been for decades [see our testimonials], is viscerally opposed to the pagan, decadent, debauched World Revolution and its filthy ‘Black’ social and geopolitical detritus which is such a menace to civilisation, is a loyal subject of Her Majesty the Queen (with no other such connections whatsoever), believes (whether you like it or not) that Jesus Christ is the Lord, and is come in the flesh, and has stood up forcefully (because we have no choice, not because of any courage) to the abominations, abuses, verbal abuse and agitprop tirades, betrayals, successive threats (including seven death threats), innumerable lies and attempted ‘stings’, and the cynical exploitation by Mr Wanta of the Editor’s integrity and expertise; and has nevertheless sought to expose elements of the officially perpetrated and condoned racketeering and embezzlement of US taxpayers’ funds, and the myriad other Fraudulent Finance atrocities perpetrated with impunity under five self-acknowledged criminal Presidents of the United States.

(2): In exchange for which, conniving British intelligence cadres, according to the US ‘insider’ source whose identity is known to the Editor, are actively seeking ‘as we speak’ to ‘take Story out’ and to try, once again – à la Gordon Thomas – to discredit him.

This is to be the Editor’s reward for the serial abuse, deceit, lies, attempted ‘stings’, deceptions and other pathetic, underhand travesties, that the Editor has suffered in recent years in exposing these crimes. And these abuses, by the way, are AS NOTHING compared to what others, especially Michael C. Cottrell, have suffered at the hands of these serial thieves, racketeers and reprobate operatives over a much longer period of time.

• The Editor personally sent emails last week giving details of the CMKM/CMKX case to 14 well-known newspapers in India, Pakistan, China, Hong Kong, Malaysia and The Philippines, with the coordinates of Mr Hodges so that their journalists could check everything with the source. At the time of this posting, there had been no response.

‘MAINSTREAM’ NEWSPAPERS REVEALING THEMSELVES
TO BE CO-CONSPIRATORS IN COVERING UP THE RACKETEERING
None of this surprises us, given the above, nor does it even suggest that the Dark Forces are not in the process of being defeated. On the contrary, by cow-towing to their criminalised governments and intelligence communities, these newspapers are just allowing themselves to be tarred with the same Black Racketeering Brush that has covered the known official and financial criminalists with sticky black gunge that runs down into the sewer.

All that these media outlets are doing by ignoring these investigations is to confirm that they, too, are parties to, minded to be in favour of, and doubtless in many cases participants in, the familiar Fraudulent Finance racketeering practices that the perpetrators are trying in vain to cover up. In some US cases (known to this service), key media outlets are recipients of giant bribes paid out specifically in order to prevent them from covering these investigations.

We haven’t yet revealed the identities of the US news media concerned; but if there exists such a phenomenon as an honest journalist working for any of them, we would remind such persons of the basic reality that the bribee is actually in a stronger position than the distributor of the bribe – who won’t want to be exposed.

His bribe is presumably held in place by threats of lethal consequences, or blackmail: but these implied or actual threats are usually empty and cannot be fulfilled without entangling the source of the bribe in a cauldron of problems arising from his iniquity that he would wish to avoid.

WHY CONFINING EXPOSURES TO THIS WEBSITE HAS BEEN
COUNTERPRODUCTIVE FROM THE RACKETEERS’ PERSPECTIVE
And by adopting the strategy of trying to confine these exposures of official and financial sector racketeering to this website (even though some indications of broader coverage, with which we are associated, are ‘in the pipeline’), the US cover-up cadres have managed (counterproductively, from their disoriented perspective) to contrive that a reasonably consistent corpus of information has emerged into the public domain, as well as being captured for posterity and current research in successive issues of International Currency Review, which has official, central bank, institutional and library subscribers throughout the world – thereby precluding any possibility of the heirs of the perpetrators rewriting history so as to ‘airbrush’ this financial racketeering out of the record.

OUR EXPOSURE MODUS OPERANDI: ‘WALKING IN A STRAIGHT LINE’
Proceeding now to our modus operandi, we reiterate that our method is the straightforward one of ‘walking in a straight line’. Unlike your agents of influence and disinformation outlets – including notorious website peddlers of ‘Black Propaganda’, lies and confusion operating under Intelligence Power instructions to maximise the potential of the ‘Black’ fog of disinformation for the purpose of covering up the racketeering – our method, having done our due diligence to the extent possible, is to publish what we have learned either directly or else covered by a necessary ‘to the best of our knowledge and belief’ caution.

When we obtain information which can only be forthcoming from ‘inside’ and, very often, from dissident and double-crossed intelligence sources (because these people are always bitterly at loggerheads internally), we may publish such information ‘straight’ with no qualifications at all.

An example of this was our revelation that the late former Governor of the Bank of England, Lord ‘Eddie’ George, had been arrested and briefly jailed in July 2007. We have only recently learned, and publicised, WHY Lord George was arrested.

Lord George was seized because of his rôle in aiding, abetting and facilitating, with the criminal operative Dr Alan Greenspan, the stealing/diversion of The Queen’s gold on 29th-30th March 2007, as we reported six weeks or so later. Lord George, who died in April 2009, was instrumental in exchanging the gold for worthless pieces of ‘derivatives’ paper.

QUEEN’S GOLD THEFT STILL NOT RECTIFIED:
SO, KICK THE U.S. AMBASSADOR OUT OF LONDON
That operation represented the Bush-CIA-DVD’s biggest theft ever; AND IT STILL HASN’T BEEN RECTIFIED. If UK Governments consisted of people with conviction, knowledge and backbone, instead of the usual blackmailed, compromised and controlled psychological cases with dirty intelligence backgrounds, the American Ambassador should be ordered out of Britain, with his Embassy peremptorily closed sine die – until such time as this unspeakable assault has been resolved. When we mentioned this demand, which we first made in the summer of 2007, to a US contact, she said: ‘That’s precisely what the pan-Germans and the covert Soviets want’.

• To which our response is: SO WHAT?

If Lord George had even contemplated instructing his solicitors to try to obtain a retraction from us, he would immediately have been told advised nothing could be done because Christopher Story’s information was accurate (even though it was obtained from secret sources), and that Lord George couldn’t know what back-up information Mr Story held in support of his revelations.

In any case, to challenge such a report would certainly have embroiled the former Governor of the Bank of England in a dangerous encounter. Far better to assume that the sensational report would remain ‘buried’ in International Currency Review, and also covered by the Gordon Thomas MI-6 ‘blanket false witness’ lies about the Editor to the gullible so-called ‘mainstream’ media.

STEALING OF $4.2 TRILLION TAX MONEY ON 31ST DECEMBER 2009
STILL NOT RECTIFIED: SO MASSIVE CRIMES HAVE BEEN COMMITTED
Likewise, when we reported that the tax on the Settlements monies had indeed been subtracted effective 31st December 2009, we had obtained hard information to that effect, backing up ‘inside’ information provided via impeccably reliable sources. Specifically, we received an email at 20:24 UK time, on 1st January 2010, from a key figure involved in the Settlements (said by key US ‘inside’ sources, who may have been lying to our contacts, to be briefed to pay off corrupt US politicians) who was in almost daily contact with us by email under a pseudonym for over two and a half years, stating that: ‘sources here [in Dallas] and in Europe told me my taxes were taken off the top on or before 12/31 in order for them to be credited into Fiscal 2009. I got that word Wednesday 12/30/09’.

Since these taxes have not been restored to the Settlements funds which had not been paid out by the 45-day deadline of 14th February (by which date the funds from which the taxes had been taken should by law have been remitted):

• WHERE IS THAT TAX MONEY?

• WAS IT STOLEN AND IF SO, WHO STOLE IT, MR GEITHNER?

• WAS IT PLACED OUT ON CONTRACT, after $100 billion had been siphoned off into the hands of a well-known US false religion as we have reported, and if so, who is or was the foreign corrupt counterparty? Brazil? Zimbabwe? Denmark? Deutsche Bank, Frankfurt?

China Trust Bank? Barclays Bank?

• WHO are the foreign counterparties that have collaborated with the criminals in the White House, the US Treasury, the State Department and the CIA to STEAL over $4.0 trillion from the account of the US taxpayer, and imagine that there will be no ‘consequences’?

Of course, the problem that the official racketeers faced was that the tax accruals ‘could not be placed into the taxpayers’ accounts’ – because, suddenly, the $4.5 trillions squandered by the current reckless Obama Government would have been restored overnight – raising questions about SOURCE OF FUNDS. Ah, so THAT’s why there’s been a blackout across the board of these exposures and investigations, is it? Well, no: as will be shown, it’s much worse than that.

• They couldn’t pay the tax monies into the taxpayers’ accounts: so they just STOLE IT, which was what they always intended to do, anyway.

• Keep asking yourself basic questions like: WOULD THEY STEAL IT? THE ANSWER TO SUCH BASIC QUESTIONS CONCERNING THESE DESPERATE CRIMINALS IS: SURE. NATURLICH.

As can be seen from Mr Hodges’ letter to the Office of the New York State Attorney General [see our report dated 2nd March 2010], we know [and in any case, see above] that these tax monies were not ‘replaced’ back into the Settlements pool – as a consequence of which the perpetrators now face extremely severe criminal sanctions, as Mr Hodges has pointed out to Andrew Cuomo’s office when demanding an investigation, given that some of the main perpetrators, and many of his own client CMKM/CMKX victims (whose monies appear to be tied up with the Settlements funds) are resident in the State of New York [See Note 3].

How is it possible that this grievous official criminality and blatant racketeering has continued, notwithstanding these exposures (albeit in the context of the complicit and cowardly failure of the Fourth Estate to do its job properly)?

FISH ROTS FROM THE STINKING HEAD: WORLD COURT IMMUNITY DEMANDED
AND SCANDALOUSLY OBTAINED BY THE COLLECTIVE OF CORRUPT U.S. PRESIDENTS
The starting point here will be to remind you that FISH ROTS FROM THE HEAD and that we have reported that in or around September 2009, five US Presidents – Carter (39), Bush Senior (41), Clinton (42), Bush Junior (43) and Obama (44) DEMANDED IMMUNITY FROM PROSECUTION from the World Court. This immunity was, we were told, GRANTED – in a disgraceful abuse of power by the World Court, which appears to have caved in to Mr Obama’s DEMAND on behalf of himself and his four criminal predecessors.

As we can see from this episode, President Obama has been in lock-step with these four criminal predecessors – which eliminates all residual (courtesy) expectations that he might have had the guts to stand up to these racketeers. That would, however, have been impossible – since this operative, whatever his background, is of course a placeman and a puppet of the controlling criminalised US Intelligence Power.

We can thus state without fear of contradiction on the basis of the foregoing information that the five US Presidents openly acknowledge that THEY ARE CRIMINALS. If you are not a criminal, you do not need immunity from prosecution. These operatives, working together as a PRESIDENTIAL COLLECTIVE, demanded and received the immunity from prosecution that they sought.

That of course means that the World Court which sustains the figleaf of legality at the corrupted intergovernmental level (where in fact the Rule of Law does not operate properly or at all, or can be non-existent) is COMPLICIT IN LETTING ALL THESE CRIMINALS OFF THE HOOK – in other words, condones criminality at the highest level, irrespective of the consequences (which in this context includes destroying the lives, savings, hopes and physical assets of hundreds of thousands and probably millions of victims).

In translation, the World Court appears to regard its job as DEFENDING RACKETEERS IN HIGH PLACES – not to sustain the Rule of Law at the intergovernmental level without fear or favour.

GORBACHEV MANIPULATING DEVELOPMENTS FROM HIS WING IN THE KREMLIN. AS BEFORE
Behind this scandal of scandals, lies the deeper reality which we have publicised but which none of the ‘mainstream’ media has picked up on, and which, we are informed, is now of ‘no interest’ to the present generation. We refer to the PROVEN FACT that former President Mikhail Gorbachëv, who fronted ‘collapsible Communism’ for the benefit of the confused ‘mainstream media’ and strutted the stage for years thereafter (and indeed continues to do so, to this day), collaborated AND STILL COLLABORATES with the Black Godfather of the criminally penetrated US Intelligence Power, the Langley base of which is labelled the George Bush Center for Intelligence.

GORBACHEV, BUSH, KOHL, ACKERMANN: RACKETEERING PARTNERS IN DEUTSCHE AG.
Specifically, as we have exclusively reported, Gorbachëv is a partner with George H. W. Bush Sr. and Dr Helmut Kohl, the former Chancellor of Germany, together with Dr Joseph Ackermann, in Deutsche AG., formerly Barrington Investment Group, St. Gallen, Switzerland, which handles the illegal proceeds of racketeering operations – as was the case with the proceeds derived from the stealing of a contract belonging to Mr Michael C. Cottrell, B.A., M.S., and which was facilitated by the ‘electronic stealing and forging’ of Mr Cottrell’s signature. The background detail to these crimes is re-presented herewith:

• Former President Mikhail S. Gorbachev, working with former US President George H. W. Bush Sr., former German Chancellor Dr Helmut Kohl and Dr Joseph Ackermann, all partners in Deutsche AG (formerly Barrington Investment Group), Switzerland, stole a contract using the electronic tag to the securities account owned by Mr Michael C. Cottrell’s Pennsylvania Investments, Inc., with Benchmark Securities, Inc., New Jersey, at a table-top meeting in Geneva on 7th October 2002 by the means described below, which included the electronic ‘forging’ of Mr Cottrell’s signature.

This theft was preceded by seven related thefts from Mr Cottrell’s firm’s securities account.

• This means that former President Mikhail Gorbachev and former German Chancellor Helmut Kohl are financial criminals like George H. B. Bush Sr., and should be treated accordingly.

Mr Gorbachev and Helmut Kohl have, as partners in Deutsche AG, by definition been profiting from the theft of Mr Cottrell’s contract and property, and also from huge proceeds from the theft of The Queen’s gold, which, we were specifically informed at 1.15 am by telephone on 4th February 2010, have likewise been channelled through Deutsche AG, St Gallen, Switzerland.

• As of 10th March 2010, The Queen’s gold had not been restored.

• The proceeds of innumerable corrupt transactions involving Gorbachëv, Bush Sr., Kohl and Ackermann have been run through the DVD’s main institutions, Deutsche Bank and Dresdner Bank.
So what is being exposed is that George H. W. Bush Sr. (CIA/DVD) and Mikhail Gorbachev (Soviet Military Intelligence (GRU) and KGB/FSB) have been systematically ransacking American and non-American victims alike, and running this colossal open-ended racketeering through Germany, with the assistance of the former STASI of East Germany (who are GESTAPO in relabelled clothing).

Hence the presence on the scene of STASI operatives such as Eva Teleki, a (separate) ‘Swedish’ opera singer, and other dirty operatives suspected of being continuing STASI agents, such as Chancellor Angela Merkel (the former Secretary of the Agitation and Propaganda Department of the Young Communists at Marx Lenin University, in East Berlin). This explains why Merkel was earlier fingered by this service as the guardian in Germany of George H W Bush Sr.’s stolen and exploited racketeering assets with German institutions.

• Vladimir Vladimirovich Putin (Shalomov), who is a senior Soviet GRU operative, was based in East Germany before he migrated to Leningrad, and is believed to have been primarily responsible for orchestrating, at least from the Soviet side, the clockwork ‘collapsible Communism’ operations in Eastern Europe. Gorbachev has been reported to us to operate from a wing of the Kremlin, as though he never left the place.

• Which he didn’t. He’s been at the centre of this revolutionary criminality THROUGHOUT.

WANTA: THE COURIER BETWEEN BUSH SENIOR AND GORBACHEV
Reconsider now the unsavoury, treacherous rôle of Mr Leo/Lee Wanta in this context. As we have repeatedly shown [see our reports dated 20th September 2009, 22nd October 2009, 17th November 2009 and 29th January 2010 for instance], Wanta’s ‘Principality of Snake Hill’ cover, which provides him with a fraudulent virtual ‘Ambassadorship’ from the non-existent ‘Principality of Snake Hill’ to the United States ‘enabling’ him to continue using the false self-designation ‘Ambassador’, is the clumsy concoction of an undischarged felon who has stolen inter alia this Editor’s $35,000 loan plus interest and other monies, cannot own a bank account because he is a felon, and not only answers the telephone in German with ‘GUTEN TAG’, but spells telephone TELEFON, Groupe with an ‘e’ as in French, while also masquerading behind this false front using a 202 telephone number provided by the French Embassy in Washington, DC.

Thus AmeriTrust Groupe, Inc, with ‘Groupe’ spelt as in French, was a French/DVD operation set up with the assistance of the former French Ambassador to Washington, DC, Monsieur Levitte, now President Sarkozy’s top intelligence advisor – its purpose being to steal/divert funds on behalf of the Bush-CIA-DVD racketeers for which the bilateral treaty-bound Vichy-French authorities, being complicit with the pan-Germans in this corruption (think of the 3,000+ Bush-linked accounts with Paribas in Paris), provide permanent cover.

No wonder Wanta, who had operated out of Vienna in the late 1980s and early 1990s, had to sack Michael Cottrell as Treasurer of AmeriTrust Groupe, Inc. (which he did ‘illegally’ on 23rd March 2008: see website reports) when it became obvious that Cottrell and Story were hot on the trail of this devious foreign operation to steal vast funds belonging to the United States of America and its taxpayers. Against this background, please be reminded [see our report dated the 20th September 2009] that Wanta’s nauseating ‘excess patriotism’ and ‘apple-pie Americanism’ is ALL FAKE – part of his elaborate but now exposed cover, as is his false religiosity. Recall Story’s Third Law: ‘Sooner or later all operations and covers are BLOWN’.

WANTA’S ‘REAGAN’S JUNK-YARD DOG’ DIVERSION
Wanta told Claire Sterling, the late author of Thieves’ World [published by the CIA’s favourite book publisher, Simon and Schuster, New York, 1994], and also reconfirmed personally to the Editor of this service, that President Reagan used to refer to Wanta as his ‘junkyard dog’.

He told the Editor that George Bush Sr. was ‘never in the room when Ronald Reagan briefed me’. This statement conflicts with the reality, which has been emphatically reconfirmed to this Editor from ‘inside’ sources, that Wanta was indeed the courier between George Bush Senior and Mikhail Gorbachëv (who are, as indicated, joint partners with Dr Helmut Kohl and Dr Joseph Ackermann in Barrington Investment Group, now Deutsche AG, St Gallen, Switzerland: see above etc.).

So it transpires that Wanta systematically lies and lied to his contacts, including the Editor of this service, whose platform and expertise he exploited to provide a smokescreen behind which the Bush-CIA-DVD racketeers, which Wanta served, could continue unimpeded under the crook Henry M. Paulson’s supervision from the US Treasury.

• We did wonder why we encountered no interference from the highest US level for the first year while Wanta was using us in the manner described.

WANTA KNEW ABOUT 9/11 IN ADVANCE, LIKE VREELAND
Wanta was released from jail just over a week after 9/11, was collected from prison by Gerald Salchert, of Austrian extraction, and taken to a relative’s house in Chippewa Falls, Wisconsin. Because of his experiences at the hands of the Bush-Clinton Crime Syndicate (given that these mentally deranged capos always treat their underlings with cruelty), there was concern that his prior knowledge of the 9/11 abomination might be leaked prior to the event – which is in fact what the Office of Naval Intelligence and prospective/actual assassin, Lt. Mark Delmart Vreeland, did from jail in Toronto, after he had opened three diplomatic bags, which is treason.

In March 2005, the Pentagon-associated US operative nicknamed ‘The Visitor’, calling himself Walker whose real name is Demchuk, who pestered the Editor for information about the Soviet-originated Iraqi WMD-removal (‘Sarindar’) programme, informed the Editor that ‘Vreeland is in solitary confinement for a very long time, his case has been sealed and he is no longer a threat to you’ (Vreeland having threatened the Editor with death in 2003). Vreeland’s parole board meeting has been pencilled in for a date in 2163, according to an informed US source.

FRANCE COVERS FOR GERMANY UNDER TREATY OF THE ELYSEE
Under the Treaty of the Elysée dated January 1963, which is of indefinite duration, France and Germany are both required to coordinate their stances on all external matters, on which they are required to ‘reach an analogous position’. France is therefore indistinguishable from Germany in respect of international strategic deception operations (especially as there are special intelligence collaboration provisions under the Treaty), and accordingly fronts extensively for Germany.

In this particular context, it provides flimsy (and disintegrating, or disintegrated) cover for the Abwehr operative, Leo Wanta, who was indeed the courier between George H. W. Bush Sr. and Mikhail Gorbachev [see our report dated 4th February 2010]. Although he says he’s Polish, we think this felon and fraudster may be a DVD operative/double agent, possibly STASI.

The German Chancellor, Angela Merkel – formerly the Secretary of the Agitation and Propaganda Department of the Communist Yugend at Marx-Lenin University, East Berlin – is a STASI operative.

FRAUDULENT WANTA ‘SNAKE HILL’ WEBSITE’S GERMAN CONNECTIONS
Further research has revealed a direct German connection with the clumsy ‘Principality of Snake Hill’ deception, which we have demolished, not least with the imprimatur of Ms Brenda Farrell, an official at the Australian Embassy in Dublin, who replied to our Irish associate’s enquiry as follows:

Forwarded message
From: <richardsharpe@eircom.net>
Date: Wed, Sep 23, 2009 at 12:25 PM
Subject: Fwd: Principality of Snake Hill [SEC=UNCLASSIFIED]
To: mrrichardsharpe <mrrichardsharpe@gmail.com>

richardsharpe@eircom.net wrote:
Many thanks for your timely response.

Regards
Richard

“Austremb Dublin” <Austremb.Dublin@dfat.gov.au> wrote:

Dear Mr Sharpe,

Thank you for your email.

There is no principality in Australia.

Kind regards

Australian Embassy
Dublin
Tel: +353 (0) 1 664 5300
Fax: +353 (0) 1 678 5185

richardsharpe@eircom.net

The German connection exposed herewith below, reveals the low calibre of these operatives, whose arrogance and certainty that they will never be exposed, is such that they don’t put much expertise into their deception operations if they can help it. A sane person would have thought that in ‘designing’ the ‘Principality of Snake Hill’ deception, they would have used some common sense and established an actual domain name, rather than using freeware sites.

One of the ‘Snake Hill’ websites
[http://members.multimania.co.uk/snakehill/]
causes computers to display a warning [viewable at: http://safeweb.norton.com/report/show?url=multimania.co.uk].

That warning is really for the entire ‘Multimania.co.uk’ domain, not just the fake ‘/snakehill’ subset. But it is interesting, to put it mildly, to note that the website’s location is: GERMANY. Why would a GERMAN site use a United Kingdom domain identifier?

• ESPECIALLY on a site noted for hosting THOUSANDS of Trojan threats: except that the answer presents itself immediately: it’s a DVD operation.

Yes, the entire website is HOSTED IN GERMANY, so Wanta’s ‘/snakehill’ subdirectory on this domain absolutely emanates from GERMANY as well. The following is the actual Whois Internet registration data (fully available at http://who.is/whois/multimania.co.uk/):

IP: 213.131.252.254
IP Location: Dusseldorf*, Germany

*Note: Wanta’s lawyer, Steve Goodwin, was born in Dusseldorf.

Domain name: multimania.co.uk

Registrant: conversis GmbH

Registrant type: Unknown

Registrant’s address: Patrick Kirchhoff, Erftstrasse 11, Duisburg 47051, Germany

Registrar: InterNetWire Communications GmbH [Tag = INTERNETWIRE-DE]
URL: http://www.internetwire.de

Relevant dates: Registered on: 12-Feb-2009
Renewal date: 12-Feb-2011
Last updated: 23-Apr-2009

Registration status: Registered until renewal date.

Name servers: ns1.conversis.de; ns2.conversis.de

WHOIS lookup made at 02:44:25 27-Feb-2010

As you can now start to see, our original assessment that the United States and Britain are in thrall to the GERMAN enemy that they never defeated, which we have maintained without deviation ever since those ‘gasps’ emitted by eavesdroppers during a telephone call several years ago made by the Editor to Wanta (joined by his former lawyer, Thomas Henry or Heinrich, a.k.a. Mr ‘Nasty’) is being confirmed by more and more evidence that is accumulating all the time.

In addition to using the French as a convenient, permanent front for their continuing hegemony operations, the pan-German Nazi long-range strategic deception heirs of the Abwehr, Deutsche Verteidigungs Dienst (DVD), collaborate with the covert Soviets (Soviet Military Intelligence (GRU), and the KGB/FSB, in formulating, implementing and consolidating their comprehensive, failing revolutionary hegemony operations against the Main Enemy (Britain and the United States).

• That’s quite easy, since the heirs of the Abwehr and of Heinrich Himmler OWN THE CIA.

CIA/DVD PRACTICE OF EXPLOITING AND STEALING OUTSIDE EXPERTISE
Now it is standard CIA ‘tradecraft’ practice to usurp the expertise of outside professional talent if it is not available in-house or by some other means. In this context, the CIA perpetrators needed a US securities expert with impeccable credentials and a securities account. What the CIA does is apply its standard Bush-style ‘bait and switch’ technique, exploiting and maximising the potential of the usurped professional expertise, before rejecting it and stealing the assets associated with it.

Note that Wanta likewise used this Editor’s website and publishing platform in pursuing his own agendas for 15 months, telling Mr Cottrell in October 2007 that ‘we must get rid of Chris Story, but don’t tell him’. Mr Cottrell having formed his own view of Wanta’s unreliability, Teutonic arrogance and duplicity, carefully found a way to warn the Editor of this ‘switch’ in December 2007, without actually revealing what he could not then reveal.

In March 2008, Wanta fired Cottrell by issuing a vituperative three-page ‘Resolution of the Sole Shareholder’ (which is illegal, as corporate resolutions can only legally be issued by the Board at a Board Meeting: the text of this document used language familiar to the Editor of this service as having been written by Thomas Henry (‘Mr Nasty’)).

Relieved, Mr Cottrell then despatched the necessary resignation information to the tax authorities in Richmond, VA, requesting them to send all subsequent paperwork, including tax demands, to Wanta in Wisconsin – where he had long stated that he is not resident and does not run a business. The rest of this sequence can be gleaned from our website: see March 2008.

So what the cynical Intelligence Power routinely does is ‘borrow’ external expertise, before discarding or stealing it. In the Editor’s case, ‘bait and switch’ has worked both ways: it could be argued that we ourselves have done a ‘switch’, taking a leaf out of these deceivers’ book.

Meanwhile, the same happened to Mr Michael C. Cottrell, B.A., M.S. Because the standard CIA procedure of exploiting, then stealing and discarding outside expertise and assets, also explains Wanta’s ‘use’ of Mr Cottrell for his failed AmeriTrust Groupe, Inc. DVD stealing operation – because Michael C. Cottrell has the requisite securities market expertise and securities account facilities, which were (mistakenly) applied for the benefit of Mr Wanta’s AmeriTrust Groupe, Inc. (but which cannot be used without Mr Cottrell’s signature: so we shall see whether it has again been stolen).

[Note: This analysis was written BEFORE the incredible fraud perpetrated via the State of Pennsylvania, subject of our separate report, was known. Quite prophetic, you may think].

Note also that Steven Goodwin, the Wanta Attorney in Richmond, VA, who accepted this Editor’s $35,000, which Wanta stole, was born, as stated previously, in Dusseldorf. Goodwin wrote the shifty loan documents which Leo Wanta demanded that the Editor sign forthwith, as soon as the Editor arrived on 10th June 2005 at his relative’s address in Chippewa Falls.

Wanta took it for granted that the Editor would meet his preremptory demand to sign, and wouldn’t walk out on the spot (which he nearly did).

[INSERTION: The Editor received an email on 9th March from a US correspondent who said he had asked Mr Wanta why he hadn’t paid the Editor’s loan plus interest back on the due date (or at all). Wanta replied that Mr Story had been ‘offered’ the choice of a ‘Biblical’ payment of ten times the orginal loan (no such ‘Biblical norm exists, by the way), or payment of the amount due on the due date. This is a fabrication. No such choice was ever offered: in any case it contains what is known as an ‘illusory promise’: see the securitisation analysis below. Another Wanta fabrication/slither].

THE AMERICAN INTELLIGENCE POWER WHICH HAS USURPED
THE GOVERNMENT DANCES TO THE TUNE OF FOREIGN POWERS
As for the stealing of Mr Cottrell’s contract and the electronic forging of his signature – a specific case of which we have detailed information [see above], which proves the ongoing racketeering collaboration between Bush, Gorbachëv and Kohl from the outset – it has been shown not only that Gorbachëv, Bush Sr., Helmut Kohl and Ackermann are handling stolen accruals (4) (the money that you make from stealing my money, is my money), but also that the US Intelligence Power dances to the tune of the foreign power whom George H. W. Bush represents, namely Germany – whom the Allies were supposed to have defeated in 1945.

Working closely at the intelligence level with the Nazi Continuum is the covert Soviet Continuum – both of which ‘Black’ Revolutionary Forces went underground: the Nazi (pan-German) Continuum went underground well before the defeat of Hitler, and the Soviet Continuum went underground in 1991, remaining under the supervision of ‘former’ President Gorbachëv, who, as indicated above, occupies a large suite of offices inside the Kremlin to this day.

As the Editor of Soviet Analyst, this Editor believes that GORBACHEV calls the shots – as he did from the moment this former Secretary of the CPSU Administrative Department came to power after the ‘festival of three funerals’ of abruptly deceased (murdered) Soviet leaders, in 1985.

We also believe that the concerted offensive to ‘take down’ the ‘Main Enemy’ (Britain and the United States) is the TWIN operation following on from the ‘takedown’ of the Soviet Union – and furthermore, that this massive operation is perpetrated by THE SAME TOP THREE OPERATIVES who ransacked the USSR: Gorbachëv, Bush Senior and Helmut Kohl.

WORLD REVOLUTION RACKETEERING OFFENSIVE
In other words, what we are exposing is a colossal World Revolution programme, from which these three racketeers and handlers of stolen monies have benefited and continue to benefit personally. [Well, they can’t be expected to run the World Revolution for altruistic motives, can they].

The extent to which Metabridge (Mossad, DVD, CIA and MI-6) is implicated in this gigantic anti-nation state World Revolution operation will quite probably be exposed when it transpires whether or not the two high-level MI-6 officers in the United States who were reported to us to be holding The Queen’s signature authority for the Settlements and her hijacked loan funds, may be double-crossing the Monarch. Given that everyone appears to have been double-crossing everyone else, anything is possible and nothing can be taken for granted: the Pennsylvania episode lends support to our suspicions on this score.

The Allies defeated Herr Adolf Schickelgrüber (Hitler), NOT Germany. On the contrary, assisted by the absorption by and penetration of the CIA by multiple ‘rehabilitated’ Nazis thanks to that ‘reverse takeover’ masterminded in the 1940s with treacherous US State Department connivance inter alia by General Reinhard Gehlen – the thuggish Abwehr Nazi intelligence chief who had overseen the repression in the German-occupied areas of the Soviet Union – the CIA became the main ‘active’ component of the Nazi Continuum. This accounts for its hideous Himmlerian abominations over the years, its satanic experimentation operations, its ‘Black’ offensives against the American people and the Rest of the World, its Nazi-type military aggressiveness and its repulsive arrogance, its absolute disdain of and hatred for the Rule of Law, and the reality that it is much more dangerous nowadays than the KGB-GRU ever was.

So what we are actually confronting is indeed the Nazi Continuum, secretly supported as always by (covert) Soviet Communism – the US component of which, at the present time, is headed by Leon Panetta. This Director of Central Intelligence, who controls the White House, was reported to the Editor of this service to be STILL blocking the Settlements as of 5th March 2010.

But even as we were being told this, something interesting happened behind the scenes. Which brings us to the real nub of the matter.

‘WALKING IN A STRAIGHT LINE’ WILL EXPOSE THE DECEPTIONS
The struggle that has been raging behind these scenes within and close to the DC Beltway reflects:

• A corrupt and criminal official determination to frustrate the Bank for International Settlements’ instructions (‘Line Item’) designating the conduct of the necessary and overdue G-7-approved on-balance sheet, fully taxable and transparent PRIVATE SECTOR Refunding of the US Dollar to Mr Michael C. Cottrell, B.A., M.S., who, we were informed by US ‘inside’ sources (who will be exposed if this turns out to be false) is regarded by personnel working for The Queen as the only expert who can be trusted with this task.

• If none of this is true, the preceding report, containing a letter from Mr A. Clifton Hodges to the Editor of this service for onward delivery (which was implemented) to Buckingham Palace, was intended to expose the deception and those engaged perpetrating it (whose names we know, if they are so engaged, and who will be exposed along with the other deceivers, should a deception have been perpetrated. In accordance with our policy of ‘walking in a straight line’, we continue to assume that this is not the case: but we shall see).

• What certainly IS known is that the foregoing background has been used – in a similar manner as the Leo Wanta cover involving this Editor was exploited – to provide ‘smokescreen’ cover for an operation which might (in this context) supposedly enable the criminal perpetrators to conduct the Dollar Refunding themselves, for their own illicit profit, using FRNs, not US Treasury dollars.

In other words, the perpetrators have remained hell-bent on blocking the will of the international financial community as expressed via the BIS refunding ‘Line-Item’ instructions, given their horror at the prospect of losing control – and have illegally frustrated the intended use of the $6.2 trillion loan funds provided on 19th-20th July 2007 via the Bank of England under levy to six US money center banks, via the Bank of New York Mellon (as it became, effective July 2007).

COTTRELL THREATENS TO SNATCH AWAY THE RACKETEERS’ COVER,
THROWING THEM INTO A MAD PANIC. THIS WAS NOT ANTICIPATED.
On Friday 5th March, in telephone conversations, including one with the Editor of this service, attended by every despicable intelligence eavesdropper under the sun, Michael Cottrell stated unequivocally that if the $6.2 trillion refunding loan, as pre-agreed, is withheld from Mr Cottrell’s firm, Pennsylvania Investments Inc., he will walk away.

This statement evidently caused panic and a hurried strategic deception rethink inside the Beltway and in the other dark corners of the US criminal universe in question – more or less proving that, as with the Wanta operation which exploited both Mr Cottrell’s securities market expertise and this Editor’s publishing and publicity abilities and qualifications, the perpetrators had been using Mr Cottrell as cover for an intended deviation from the agreed-upon Basel instructions.

• The pending Pennsylvania Fraud exposure will PROVE THAT THIS ASSESSMENT IS CORRECT.

• The intention is for the proceeds of racketeering operations to be channelled inter alia into the hands of the partners of Deutsche AG, St Gallen, Switzerland.

And as indicated above, we know precisely who is behind this typical piece of CIA/DVD duplicity: and if it continues, they will be exposed by name. But, as always happens with these investigations, THIS OPERATION HAS ALREADY BEEN BLOWN. And it has been ‘blown’ because, whereas we have been walking ‘in a straight line’, the snakes are incapable of doing anything but slithering.

THE TWO MI-6 OPERATIVES WITH THE QUEEN’S SIGNATURE:
ARE THEY WORKING FOR, OR ARE THEY DOUBLE-CROSSING THE QUEEN?
It now has to be stated that if the two MI-6 operatives said to be carrying The Queen’s signature authority are or have been double-crossing Her Majesty, we will get to the bottom of that, as well, and will expose them, also. After all, we were able to expose the false assertion by the US ‘inside’ sources that Roy Grantham is a Representative of The Queen, when we asked Grantham to get in touch with us via this website. Although Grantham lives just a couple of miles from the Editor’s office, he saw fit to instruct a firm of ‘heavies’, based in Shreveport, LA, to issue a blatant threat by email against the Editor of this service.

• This ‘investigator’ said that Grantham would not be contacting the Editor of this service in view of his interest in preserving his ‘Stellar’ [note the geomasonic language] reputation.

Beyond this, it now has to be said that if the British Monarchical Power does not INSIST upon the agreed-upon Group of Seven-approved, private sector-based transparent, taxed Dollar Refunding operation proceeding precisely as specified by Basel, and is prepared to put up valuable assets in exchange for worthless Federal Reserve Notes, the Monarchy will self-destruct – WHICH IT IS THE OBJECTIVE OF THE PAN-GERMAN ENEMY TO PROCURE, since the British Monarchy stands in the way of the comprehensive realisation of Germany’s insidious and now collapsing ‘Europe from the Atlantic to the Urals/Vladivostok’ hegemony plans.

WHAT HAS HAPPENED TO THE CHINESE CURRENCY BOXES?
The same applies to the Chinese. What happened to the Chinese currency boxes which were made available SPECIFICALLY to provide backing for the Treasury dollar? Are the Chinese also stupidly risking their assets in exchange for worthless FRNs, as well – notwithstanding their knowledge that the US officials in charge are racketeers, and in spite of the still undischarged lien for $47 trillion against the US Treasury imposed on or about 6th December 2009?

GREEK DEPUTY PRIME MINISTER EQUATES NAZI GERMANY
WITH CHANCELLOR MERKEL’S STASI GERMANY
It is certainly true that the catastrophic (and soon to become even more catastrophic) European project is on the verge of self-destruction, too. In late February 2010, in an interview with the BBC, the Greek Deputy Prime Minister accused NAZI GERMANY – clearly eliding Nazi Germany with the current German STASI régime – of ‘taking away the gold that was in the Bank of Greece, and they never gave it back. They shouldn’t complain so much about stealing and not being very specific about [their] economic dealings’.

• In other words; WHAT ARE YOU TALKING ABOUT, FRAU MERKEL?

• The fact that Greece and Germany have since been in discussions, does NOT expunge the Greek Deputy Prime Minister’s pointed observation from the record.

As previously reviewed, Greece’s massive toxic debt was accumulated under the preceding Greek Government as a consequence of Fraudulent Finance and racketeering operations with associates of the Bush/CIA/DVD Crime Syndicate via Citibank Athens, as we originally revealed a long time ago.
Far from being the weak partner, therefore, Greece is in fact in a position to DESTROY the entire poisonous pan-German hegemony operation, and in our opinion may well wind up doing so – as will similar situations waiting to explode among the PIGS (VIZ. Portugal, Italy (Greece) and Spain, which ought to read PIIGS, since Ireland is in the same position. A country with a huge trade surplus and a colossal current account deficit is in SERIOUS TROUBLE.

Uncoincidentally, each of these countries, as well as Iceland and the corrupted United Kingdom itself, has provided Fraudulent Finance ‘counterparty racketeering services’ to elements and associates of the Bush-CIA/DVD Crime Syndicate – with accruals doubtless pouring into Deutsche AG, St Gallen, for the benefit of Bush Senior, Gorbachëv (Orbach), Kohl and Ackermann.

WHAT DO THE FOUR RACKETEERS HAVE IN COMMON
WITH OTHER WELL-KNOWN DECEASED AND LIVING OPERATIVES?
What do these four racketeers have in common with the following deceased and living revolutionary operatives?

Andropov, Yuri (Lieberman)
Barroso, José Manuel
Biden, Joseph
Brown, Gordon
Bush Jr., George W.
Bush Sr., George H. W.
Clinton, Hillary Rodomski
Clinton, William Jefferson (Rockefeller)
Dodd, Senator Christopher
Emanuel, Rahm
Farage, Nigel
Geithner, Timothy
Grossart, Sir Angus
Khrushchev, Nikita (Perlmutter)
Medvedev (Menakhem Aaronovich Mendel)
Panetta, Leon
Paulson, Henry M.
Putin, Vladimir Vladimirovich (Shalomov)
Salmond, Alex
Sarkozy, Nicolas
Schickelgrüber, Adolf (Hitler)
Stalin, Josef (Djiugashvili-Kochba)?

FORECLOSURE ANALYSIS’ PARA-LEGAL SERVICES SPRINGING UP IN THE UNITED STATES
We turn now to the central issue: that securitisation is illegal under US law and indeed in all Common Law jurisdictions. There are NO REDEEMING FEATURES.

Services are now springing up in the United States providing a ‘Foreclosure Autopsy’ assessment in which breaks in the chain of title, missing assignments, unlawful substitution of trustees and blatant fraud and forgery, is typically identified. Such services do not provide actual legal advice: what they do is offer recorded information in support of any planned evidentiary hearing or legal discovery going all the way back to the original creditor/depositor. Every recorded document can be identified and surfaced for distressed homeowners – representing a broad foreclosure analysis resource support system via reliable established networks, local title companies, county recorders and other parties, especially in non-judicial foreclosure states like California, Arizona and Nevada, which appear to be states in the greatest need – given that it has been predicted that some 3.4 million foreclosures are anticipated across the United States over the rest of this calendar year (see Note 5 below for more background to this ‘utter corruption’).

NORTHERN ROCK’S LIES TO A FORMER MORTGAGOR MASKING
THE FACT THAT HER TITLE DEEDS WERE ‘OTHERWISE ENGAGED’
In Britain, we have been engaged with a householder who paid off her mortgage with Northern Rock in June 2004. In exchange, Northern Rock informed the lady that they would be forwarding her Title (Lease) documents, but failed to do so for five years – proffering every excuse under the sun for their gross failure, including the statement that her title documents had been ‘dematerialised’ – before, all of a sudden, forwarding her missing documents under cover of a letter saying that ‘it has come to our notice that we did not return your Title Documents in June 2004. Here they are. Please keep them in a safe place’.

• This occurred in June 2009, after the householder had torn her hair out, metaphorically speaking, for five long years trying to extract her documents from this reprobate lender.

In this instance, it is likely that, given that Northern Rock had had to be taken over by the British Government (since Gordon Brown was terrified at the media coverage of long lines of customers outside Northern Rock branches seeking to retrieve their savings, as in Argentina), the British Government’s lawyers may well have instructed Northern Rock to disgorge the said householder’s documents, which may have been encumbered by incorporation within a securitisation package.

The lady accepted a ‘compensation’ payment of £150 brokered by the Financial Ombudsman (which seems to exist to protect recalcitrant financial institutions operating within the British jurisdiction from determined ladies like this householder who will not take prevarication for an answer), on the basis of blatantly fraudulent information (e.g. that her title documents had been ‘dematerialised’ – a false statement placed in writing by Northern Rock).

We have comprehensively deconstructed this Northern Rock case, with facsimiles of the relevant correspondence, in the forthcoming huge issue of International Currency Review (6), indicating that Northern Rock lied to the householder, who was accordingly subjected to five years of anxiety and was unable to exercise her right to move home at any time during those five years.

• UPDATE: The householder wrote many days ago to Northern Rock asking them to answer her question, YES or NO: were her Title Deeds assigned and incorporated in a securitisation package without her permission? As of this date [11th March], THERE HAS BEEN NO RESPONSE. This is because they can’t answer the question without re-incriminating themselves. They have lied in writing already, so they have a major problem: as does the British Government, as the bank is controlled by the Government. We’ll see where the serpents in question slither and writhe to.

• MORTGAGE DECEPTION IN SPAIN: This morning [11th March], we received an email from a UK correspondent who writes: ‘I have a house in Spain, with a mortgage attached to it from Banco do Valencia’. Three years ago, the lady in question sought specific answers to her questions about prospective changes to the conditions of the mortgage. The bank failed to respond at all.

Moreover even after she complained to the bank’s Head Offfice, enclosing all the correspondence, there was no reply. Some time later the bank branch manager admitted to the lady that the changes that she requested could not be implemented BECAUSE THE MORTGAGE HAD BEEN ‘SOLD’ ON TO ANOTHER COMPANY. But of course the Spanish bank refused to provide any details of the company in question, let alone guidance on how they could be contacted. This revealed that, as in the cited Northern Rock case, Banco do Valencia are hiding something.

Our correspondent states: ‘So I pay my monthly mortgage to Banco do Valencia without having a clue who really owns that debt or who I am ultimately paying. This chimes with your Northern Rock exposure. Keep up the good work’.

• Two points: (1): NEVER DO BUSINESS IN SPAIN. They will always deceive and double-cross you. And: (2): The fact that Britain and Spain are satrap states caught in the European Union Collective entrapment net MAKES NO DIFFERENCE. Sheisters are sheisters, no matter what the regime.

• AND A VERY KNOWLEDGEABLE PROFESSIONAL UK CORRESPONDENT ADDS [11th March]:
‘From my own experience of finance companies’ ‘lawlessness’, they never back down even when shown that their actions are illegal or contracts unenforceable; and the standard ploy is not to answer letters… In psychological terms, this shows that they are extremely afraid, beneath the superficial impression of arrogance that they display. Their power, therefore, is an illusion’.

• Editor’s add-on: With the Northern Rock test case, we can assure you that there will be no let-up as they have been caught lying to the former mortgagor IN WRITING and there’s not a lot they can do to retrieve their situation. No doubt the Government’s lawyers will be forced to intervene.

SECURITISATION IS A KEY ELEMENT OF A REVOLUTIONARY ATTACK ON PRIVATE PROPERTY
When you consider that, as will now be rehearsed, securitisation is completely illegal under US and Common Law, you can see not only that these criminal enterprise financial institutions are well and truly on the wrack, but also WHY there has been such intense and ruthless ongoing RESISTANCE to the exposure of this rampant dirty racketeering activity – which represents nothing less than an intentional, sustained and suitably ‘below the radar’ offensive by the manipulators of the World Revolution against private property – being micromanaged in parallel with the so-called ‘sexual revolution’ and ‘upside down’ outpouring of every form of reprobate behaviour and perverted sex which is aimed at destroying the family, regarded by these long-range geomasonic maniacs as the glue which ‘legitimises’ private property.

Even if a jaded observer has zero knowledge of the progress of the World Revolution, which has reached an advanced (and yet fragile) stage in our era, the relentlessly comprehensive spread and coverage of the racketeering and corruption being perpetrated against private home owners can easily be seen to be ‘no accident’. As with ALL dimensions of the World Revolution, one has to ask oneself: how come that this nefarious, barbaric behaviour appeared suddenly and on such a truly colossal scale in every corner of the world almost simultaneously? None of this is coincidental: people who treat such developments as ‘phenomena’ without enquiring WHY these things are happening, are destined to languish in permanent ignorance of the truth.

YES, A RUTHLESS, SYSTEMATIC ATTACK ON PRIVATE PROPERTY
And the truth IS that what we are exposing is nothing less than a carefully planned, ruthless, determined and systematic revolutionary attack on private property.

• No wonder Gorbachëv sits, to this day, in a huge wing of the Kremlin, as before.

HE COLLABORATED WITH BUSH SENIOR to unleash this scourge on homeowners in the United States, Britain and the White Commonwealth countries – the ‘Main Enemy’, in collaboration with the covert Soviets’ intelligence allies, German ‘Black’ intelligence (DVD, DACHAU), hiding behind the front conveniently provided by the duplicitous French under the Treaty of the Elysée.

The criminal mentality seeks at all costs to entangle its targets in its own corruption, so that if anything goes wrong, the targeted parties are readily identifiable as racketeers, thereby providing the originating perpetrators with cover (so they imagine).

Hence the subversion through corruption of foreign counterparties – in Britain, Iceland, Greece, Italy, the Vatican, Spain, Portugal, Albania, North Korea, India, China, Malaysia, Hong Kong, Dubai, Abu Dhabi, Saudi Arabia, Israel, Cyprus and wherever willing trading counterparties may be found.

LOWEST COMMON DENOMINATOR SCAMS STILL ‘OUT THERE’
That such Fraudulent Finance operations have continued as though there had been no historical discontinuity is of course well known. But a good deal of ‘scraping of the barrel’ is also taking place. Last year we drew attention to certain curious money-lending activities that were being fronted or sponsored by Newsmax.com which we were advised may be borderline financial scams.

The lowest racketeering common denominator we have ever come across, dated 2nd March 2010, from Cyprus – signed off by one Mr Ahmet Z. Altunis, ‘Principal Right Holder. World Wide Funding Trust’ seeks clients inter alia in the United States, to take advantage of their services for all ‘your unconventional funding needs’:

‘We give big opportunity to enter trade (PPP). If your assets SKRs (Safe-Keeping Receipts), Notes, Lease MTNS, Bond(s), IBOS, CMOS, have no available credit line now, we open credit line to your name. You can enter (PPP), your big profit [to] finance your project. We begin New Year contracts 2010: Enter Gateway to unlimited opportunities…. Send LOI + CIS + SKR + Passport. Then we open and activate credit line under YOUR NAME, even [though] the credit line is open on our name… Client have NO RISKS at 100%, all is secured by our and their lawyers, no tricks’.

When this crude solicitation written in barbaric English was sent to us from the United States, we were told that it represents a lowest common denominator fraud serving the Bush Crime Syndicate network. In due course, the client is asked for an up-front fee of between 12,800 and 15,000 Euros to cover ‘due diligence costs’, so it looks like a standard ‘Nigerian-type’ scam: but it isn’t.

Targets are being enticed into securitisation deals, which are illegal as indicated below, under US and Common Law. The solicitation sent to us (above) was being widely disseminated within the United States by US parties (wire fraud).

WHY SECURITISATION IS ILLEGAL UNDER U.S. AND COMMON LAW
Securitisation is illegal under US legislation – primarily because it is fraudulent and causes specific violations of R.I.C.O., usury, Antitrust and bankruptcy laws. And it flies in the face of public policy in numerous ways, as is expounded in extensive detail in an analysis to be published in our journal Economic Intelligence Review 2009Q1 (7) with several pages of book, article and case references.

To begin with, securitisation violates US State usury legislation. Secondly, all ‘true-sale’, ‘disguised loan’ as well as ‘assignment’ securitisations are essentially tax evasion schemes, and the penalties for tax evasion in the United States are excessively severe.

Thirdly, in all ‘true-sale’, ‘disguised loan’ and ‘assignment’ securitisations, the conflict of interest inherent in the sponsor also serving as the servicer constitutes fraud and conversion. In the fourth place, in all ‘true-sale’, ‘disguised loan’ and ‘assignment’ securitisations where the Special Purpose Vehicle [SPV] is a trust, the declaration of trust is void, as it exists for an illegal purpose.

In the fifth place, off-balance sheet treatment of asset-backed securities (both for ‘true-sale’ and for assignment transactions) constitutes fraud.

Sixth, all ‘true-sale’, ‘disguised loan’ and ‘assignment’ securitisations involve blatant fraudulent conveyances. In the seventh place, securitisation usurps United States bankruptcy laws and is accordingly illegal, as well as being also demonstrably contrary to public policy.

SECURITISATION ENTAILS GROSS VIOLATIONS OF R.I.C.O. STATUTES
In ‘true-sale’, ‘disguised loan’ and ‘assignment’ securitisations, there are fraudulent transactions which serve as ‘predicate acts’ under US Federal R.I.C.O. statutes.

The specific R.I.C.O. sections are: Section 1341 (mail fraud); Section 1343 (wire fraud); Section 1344 (financial institution fraud); Section 1957 (engaging in monetary transactions improperly derived from specified unlawful activity) [‘the money you make from the illegal exploitation of my money, is my money’]; and Section 1952 (racketeering).

Furthermore, securitisation constitutes violations of American antitrust statutes through market integration, syndicate collusion, price formation, vertical foreclosure, tying, price-fixing, predatory pricing, and the rigging of allocations.

Securitisation also involves void contracts, given the lack of consideration, illusory promises, the absence of any actual bargain, the absence of mutuality – and finally illegal subject matter and the contravention of public policy.

Securitisation is riddled with Fraudulent Transfer, Fraud in the Inducement, Fraud in Fact by Deceit, Theft by Deception (Fraudulent Concealment) and Fraudulent Conveyance: see the US securities regulations routinely breached in such activity, listed at the foot of this report and of most of these reports for THE PAST THREE YEARS, and other laws also routinely flouted in this context.

NOTWITHSTANDING THAT IT’S ILLEGAL, U.S. AUTHORITIES
CONTINUE TO PROMOTE AND ENCOURAGE SECURITISATION
Yet notwithstanding such crystal-clear indications that securitisation is 100% ILLEGAL under US Law, as well as under Common Law generally (so that these findings are largely applicable in all Common Law countries), US authorities from the highest level downwards, financial institutions, intermediaries, Intelligence Power operatives and others are gearing up for what they doubtless hope will be intensified racketeering and trading activity with (corrupt) foreign counterparties.

This behaviour is being fine-tuned ‘as we speak’, despite the reality that the securitisation activity being planned and implemented violates innumerable US statutes in the manner we summarise above, and notwithstanding that such activity is contrary to public policy.

Indeed, it’s as though the Rule of Law did not exist. From the highest level of the US Treasury, the White House, the US State Department and the Central Intelligence Agency and its subsidiaries such as the lethal Office of Naval Intelligence (ONI), the mindset, intention and perverse primary objective has all along been to resume Fraudulent Finance based on securitisation, as quickly and as seamlessly as possible. No wonder the five criminal Presidents DEMANDED immunity from prosecution from the World Court: did they arrange for key Justices (starting with the American Justice) at the World Court to receive pecuniary reward for granting them their demand?

SUMMARY FORENSIC ANALYSIS PROVING THE ILLEGALITY OF SECURITISATION
From whichever angle securitisation is considered, it is ILLEGAL. For example, the contracts are themselves VOID. This is because the process of securitisation involves several contracts that are either signed simultaneously, or within a short timeframe – many of which are rendered void inter alia because there is no consideration in contracts used in effecting the securitisations.

Many such contracts involve unilateral executory undertakings containing illusory promises. A unilateral executory promise is not a consideration. Such promises typically include a promise made by the Special Purpose Vehicle to pay out periodic interest, whether contingent or non-contingent on whether the collateral pays cash interest.

Collateral-substitution agreements contain a promise whereby the sponsor agrees to substitute impaired collateral. An assignment agreement of future (not yet existing) collateral may well be deemed a unilateral executory promise by the sponsor.

Illusory promises are not valid consideration for a contract. Such promises may be found in the Subscription/Purchase Agreement, whereby an existing asset is being exchanged for a future asset that does not exist as of the date of the subscription/purchase agreement. To make matters worse, none of the agreements typically signed by the investor as part of his/her purchase of the Special Purpose Vehicle’s Asset-Backed Securities expressly incorporates the (typically illusory) promises embodied in the offering prospectus.

OR: The Special Purpose Vehicle’s promise to pay interest and/or dividends on Asset-Backed Securities ‘Interest-Onlys’, Preferreds and ‘Pincipal-Onlys’ are essentially illusory promises because the underlying collateral may not produce any cash flows at all: so there won’t be any interest/dividend payments.

Moreover the lack of mutuality characterising such contracts renders them null and void, by definition. In any such contract, each party must have firm control of the subject matter of the contract and the underlying assets (consideration), and there MUST be a direct contractual relationship between the parties concerned.

But this is not the case, especially as the Special Purpose Vehicle’s corporate documents (trust indentures or bylaws or articles of incorporation) may typically limit the right of each Asset-Back Security investor; while there is typically no mutuality at all between the Special Purpose Vehicle and the sponsor/originator, because both entities are essentially the same, and are controlled by the sponsor before and after the securitisation takes place.

SECURITISATION: A COVER FOR TAX EVASION
In addition to their multiple violations of American State usury laws, all ‘true-sale’, ‘disguised loan’ and ‘assignment securitisations’ are essentially tax evasion arrangements. In the United States, the applicable tax evasion statute is the US Internal Revenue Code Section 7201 7 which reads: “Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution”.

Under this statute and related case law, prosecutors must prove three elements beyond any reasonable doubt:

(1): The actus reus (the guilty conduct) – which consists of an affirmative act (not merely an omission or failure to act) that constitutes evasion or an attempt to evade either: (a) the assessment of a tax or (b) the payment of a tax.

(2): The mens rea or “mental” element of willfulness – the specific intent to violate an actually known legal duty. In the case of ‘true sale’ transactions, the tax evasion occurs because:

(a): The sponsor determines the price at which the collateral is transferred to the SPV, and hence, can arbitrarily lower/increase the price to avoid capital gains taxes – it being assumed here that the sponsor is a profit-maximising entity and will always act to minimise its tax liability and to avoid any tax assessment;

(b): The sponsor typically retains a ‘residual’ interest in the SPV in the form of IOs, POs and “junior piece”, which are typically taxed differently and on a different tax-basis compared with the original collateral: hence, the sponsor can lower the price of the collateral upon transfer to the SPV, and convert what would have been capital gains, into a non-taxable basis in the SPV “residual”;

(c): There is typically the requisite “intent” by the sponsor – evidenced by the arrangement of the transaction and the transfer of assets to the Special Purpose Vehicle;

(d): Before securitisation, collateral is typically reported in the sponsors’ financial statements at book value (that is, lower-of-cost-or-market: under both the US and the international accounting standards, loans and accounts receivable are typically not re-valued to market-value unless there has been some major impairment in value) which does not reflect true Market Values, and results in effective tax evasion on transfer of the collateral to the SPV, as any unrealised gain is not taxed;

(e): The actus reus is manifested by the execution of the securitisation transaction and transfer of assets to the SPV;

(f): The mens rea or specific intent is manifested by the elaborate arrangements implicit in securitisation transactions, the method of determination of the price of the collateral to be transferred to the SPV, the aims of securitisation, and the sponsor’s transfer of assets to the SPV;

(g): The unpaid tax liability consists of foregone tax on the capital gains from the collateral (the transaction is structured to avoid recognition of capital gains), and tax on any income from the collateral which is ‘converted’ into basis or other non-taxable forms;

(h): Income (from the collateral) that would have been taxable in the sponsor’s own financial statements, is converted into non-taxable basis in the form of the SPV’s Interest-Only (IO) and Principal-Only (PO) securities: part of the Interest-Spread (the difference between the SPV’s income and what it pays as interest and operating costs) is paid out to PO-holders, and this transforms interest into return-of-capital or just capital repayment, with no tax consequences. [Leaving aside the Ponzi scam dimension here – Ed.].

In cases of ‘disguised loan’ or ‘assignment’ securitisation transactions, tax evasion occurs:
(a): Because the sponsor determines the price at which the collateral is transferred to the SPV, and hence can lower/increase the price of the collateral to avoid capital gains taxes;

(b): Because the sponsor typically retains a ‘residual’ interest in the SPV which is normally taxed differently and on a different tax-basis compared to the original collateral: hence, the sponsor can lower the price upon transfer to the SPV, and convert what would have been capital gains, into non-taxable basis for tax purposes;

(c): Because the transfer of collateral to the SPV and the creation of Interest-Only and Principal-Only securities converts what would have been taxable capital gains into non-taxable basis;

(d): Because gain in the value of the collateral is not recognised for tax purposes, because there has not been any ‘sale’;

(e): Where the ABS is partly amortising, any capital gains are converted into interest payments;

(f): Because actus reus is manifested by the execution of the securitisation transaction and transfer of assets to the SPV;

(g): Because the mens rea or specific intent is manifested by the elaborate arrangements implicit in securitisation transactions, the objectives of securitisation and the sponsor’s transfer of assets to the Special Purpose Vehicle;

(h): Because the unpaid tax liability consists of tax on the capital gains from the transfer of the collateral (the transaction is structured to avoid recognition of a sale, whereas the transfer to the Special Purpose Vehicle is effectively a sale), and tax on any income from the collateral which is ‘converted’ into basis or other non-taxable forms, by securitisation.

SECURITISATION VIOLATES THE U.S BANKRUPTCY CODE
AND THEREFORE ALSO CONTRAVENES PUBLIC POLICY
Any transfer or conveyance of the assets of a debtor that is deemed to be made for the purposes of hindering, delaying or defrauding actual or potential creditors, may be determined by Courts to be a Fraudulent Conveyance under Section 548 of the US Bankruptcy Code or under a relevant theory of Constructive Fraud.

Although each US State has its own laws regarding the appropriate elements of proof of Constructive Fraud, Section 548(a)(2) of the US Bankruptcy Code permits an inference of Constructive Fraud if the following factors exist:

(1): The debtor received less than reasonably equivalent value for the property transferred; and:

(2): The debtor was insolvent or became insolvent as a result of the transfer, or else retained unreasonably small capital after the transfer, or made the transfer with the intent or belief that it would incur debts beyond its ability to pay.

The following theories of Fraudulent Conveyance within the context of securitisation may apply:

• Where the sponsor/originator receives insufficient value for assets transferred.

• Where there is an ‘intent to hinder, delay or defraud’ creditors (representing an implicit pre-petition waiver of one’s right to file for bankruptcy), with regard to the originator’s transfer of assets to the SPV, or the originator’s transfer of assets to the SPV has clearly not been undertaken on an arms’-length basis.

• Where securitisation increases the originator’s bankruptcy risk; and:

• In all instances where securitisation usurps the United States’ bankruptcy laws and is therefore illegal on such a basis alone.

SECURITISATION VIOLATES FEDERAL R.I.C.O. STATUTES
Turning now to the reality that securitisation constitutes a violation of US Federal R.I.C.O. Statutes [see Legal Notes below], we can state without equivocation that the entire securitisation process constitutes violations of Federal R.I.C.O. statutes, because:

(1): There is the requisite criminal or civil ‘enterprise’ – consisting of the sponsor/issuer, the trustees and the intermediary bank. These three parties work closely together to effect the securitisation transaction.

(2): There are ‘predicate acts’ of:

(a): Mail fraud – using the mails for sending out materials among themselves and to investors.

(b): Wire fraud – using wires to engage in fraud by communicating with investors.

( c): Conversion – where there isn’t proper title to collateral.

(d): Deceit: misrepresentation of issues and facts pertaining to the securitisation transaction.

(e): Securities fraud: disclosure issues.

(f): It entails loss of profit opportunity.

(g): It involves the making of false statements and or misleading representations
about the value of the collateral.

(h): It entails stripping the originator/issuer of the ability to pay debt claims or judgment claims in bankruptcy court – a state of affairs that may apply where the sponsor is financially distressed and the cash proceeds of the transaction are significantly less than the value of the collateral.

There is also typically the requisite ‘intent’ by members of the enterprise – evident in knowledge (actual and inferable), acts, omissions, purpose (actual and inferable) and results. Intent can be reasonably inferred from:

(a): The existence of a sponsor that seeks to raise capital – and cannot raise capital on better terms by other means;

(b): The participation of an investment bank that has very strong incentives to consummate the transaction on any agreeable (but not necessarily reasonable) terms.

SECURITISATION ALSO VIOLATES U.S. ANTITRUST LEGISLATION
Securitisation further constitutes violations of US Antitrust laws, because the American Asset-Backed Securities and Mortgage-Backed Securities markets are dominated by relatively few large entities such as FNMA (Fannie Mae), Freddie Mac, the top five investment banks (all of which have conduit programs), and the top five credit card issuers (MBNA, AMEX, Citigroup, etc.), etc.. As a consequence, the top five ABS/MBS issuers control more than 50% of the US ABS/MBS market. This constitutes illegal market concentration under US Antitrust legislation.

THE ‘PHILIPPINES EXCEPTION’ BURIED IN THE CLAYTON ACT
In the Antitrust context, however, observe the following text from the Clayton Act, which specifically EXCLUDES transactions undertaken with The Philippines. Isn’t that interesting?

It provides a blanket rationale for the massive past and ongoing US clandestine focus on The Philippines, the CIA’s need for ‘black hole’ conditions there in connection with successive US operations to relieve Presidents Marcos and Aquino of the stolen and hidden ‘Yamashita’s gold’, the US Fraudulent Finance operations using Philippine institutions and related operations based in that territory, an aborted US operation to convert The Philippines into a new US State (as had been planned under Clinton for Somalia), and the frequent visits of operatives known to ourselves to The Philippines under cover of attending to ‘orphanages’:

§ 1 Clayton Act, 15 U.S.C. § 12 Definitions; short title:
(a) “Antitrust laws”, as used herein, includes the Act entitled:
‘An Act to protect trade and commerce against unlawful restraints and monopolies’, approved July second, eighteen hundred and ninety; sections seventy-three to seventy-seven, inclusive, of an Act entitled ‘An Act to reduce taxation, to provide revenue for the Government, and for other purposes’, of August 27th, eighteen hundred and ninety-four; an Act entitled ‘An Act to amend sections seventy-three and seventy-six of the Act of August twenty-seventh, eighteen hundred and ninetyfour’, entitled ‘An Act to reduce taxation, to provide revenue for the Government, and for other purposes’, approved February twelfth, nineteen hundred and thirteen; and also this Act.

‘Commerce’, as used herein, means trade or commerce among the several States and with foreign nations, or between the District of Columbia or any Territory of the United States and any State, Territory, or foreign nation, or between any insular possessions or other places that are under the jurisdiction of the United States, or between any such possession or place and any US State or Territory of the United States or the District of Columbia or any foreign nation, or within the District of Columbia or any Territory or any insular possession or other place under the jurisdiction of the United States:

Provided, That nothing in this Act contained shall apply to the Philippine Islands. The word ‘person’ or ‘persons’ wherever used in this Act shall be deemed to include corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the Territories, the laws of any State, or the laws of any foreign country.

FANNIE MAE, FREDDIE MAC ENGAGED IN FURTHER ILLEGAL SECURITISATION:
RE-SECURITISING ALREADY SECURITISED ‘DUD’ ASSETS TO DUMP BACK ON THE BANKS
Even so, it became apparent in early March that Fannie Mae and Freddie Mac, both controlled by the US Government, are preparing to force financial enterprises such as the CIA’s Bank of America Corporation, JP Morgan Chase & Co, Wells Fargo and Citigroup, Inc., to buy back further waves of newly securitised packages of mortgages – i.e., the former Government-Sponsored Enterprises are reportedly engaged again in repackaging mortgage securities already marked down to ‘true’ value.

In other words, they are trying to dump faulty securitised loans, as well as straight loans, back on the participating banks – under cover of such fantasies as the double-minded statement attributed to Sharon McHale, spokes‘person’ for Freddie Mac, located adjacent to the CIA in McLean, Virginia, on 5th March 2010: ‘We are trying to be good stewards of taxpayer dollars and as part of that, it’s important that those dollars not go to loans that should not have been sold to us in the first place’ – throwing the blame for Freddie Mac’s own scandalous racketeering behaviour back at the banks.

• Being interpreted, what this woman was saying was: this:

‘We are covering ourselves with a mantle of rectitude by posing as protectors of the taxpayer’s dollars in order to obfuscate our own ongoing racketeering behaviour, even as we prepare further Fraudulent Finance securitisations in violation of the relevant US legislation: and we couldn’t care less because we are owned by the Government itself, which is up to its neck in such violations’.

And Paul Miller, a former examiner for the Federal Reserve (hardly a guarantee of integrity, given the Fed’s own reputation for Fraudulent Finance), based in Arlington, VA, let the cat out of the bag with: ‘If you want to originate mortgages and keep that pipeline running, you have to deal with the push-backs. It doesn’t matter how much you hate Fannie and Freddie’ – and neither, apparently, does it matter to what extent the Rule of Law is cynically violated ‘in order to keep the pipeline (of Fraudulent Finance) running’.

GARY GENSLER IS NOT AS OPPOSED TO FRAUDULENT FINANCE AS HE SEEMS
The appointment of Gary Gensler as Chairman of the Commodity Futures Trading Commission under President Obama was greeted with signs of relief on Wall Street. Here was a hardened former Goldman Sachs trader with 18 years’ experience with that cynical, ruthless money shop, who could be relied upon to act at all times in the interests of Wall Street, not the investor and taxpayer.

But, as has since been reported elsewhere, over a private lunch at the Waldorf Astoria in midtown Manhattan on 6th January 2010, the 52-year-old Gary Gensler caused indigestion among the self-satisfied guests at the luncheon – Timothy O’Hara, head of global credit at Crédit Suisse Holdings USA, Inc.; Robert P. Kelly, CEO at Bank of New York Mellon Corporation; David B. Heller, co-head of the securities division at Goldman Sachs; and Seth Waugh, CEO of Deutsche Bank Americas.

Because when one banker asked Gensler what or whom he saw as the biggest obstacles to reform in the securities and commodities sectors, he replied: ‘You’ (8).

Mr Gensler has been seeking derivatives control legislation that goes beyond current proposals, including what President Obama put forward during the summer of 2009. Notwithstanding the fact that if the derivatives situation is not addressed, the forthcoming crash will be so horrific as to be likely to tip the world into open, rather than covert, warfare, a certain Samuel Hayes, Professor Emeritus of Investment Banking at Harvard Business School, Boston, told Bloomberg in February 2010 that ‘Gensler is going to raise real concerns’ for financial firms.

‘Derivatives are absolutely central to what is Wall Street in the 21st century’ – namely, a casino. ‘Nobody wants the regulations to affect them’ (9).

‘GREATER TRANSPARENCY’ IS EVIDENTLY ALL HE‘S AFTER
On closer examination, Mr Gensler has actually been pushing for ‘more transparency’ in the over-the-counter derivatives market, so as to lower spreads between buyers and sellers and to make it easier for new competitors to enter the market – which the big banks aren’t keen on, as more participants will deprive them of profit.

So, Gary Gensler is not actually in the business of tackling the underlying crisis arising from the determination of financial institutions to continue playing Russian roulette, using the model first developed by the US Intelligence Power as it sought what it thought were foolproof methods of ensuring its financial independence from Congress and the open-ended funding pipelines that it considered appropriate to buttress its usurped status as a recalcitrant ‘State within the State’ impervious to reform and determined to brook no interference with its stolen hegemony.

INVESTORS’ MONEY USED TO REMUNERATE WALL STREET
In any case, the derivatives institutions and their back-up infrastructure have not the slightest intention of adopting any course other than ’business as usual‘ – and on a far larger scale than in the past. This obtuse madness WILL lead to a global collapse, as derivatives products are usually without real value. As a noted article in The New York Times of 7th February 2010 at last stated, investment banks trading derivatives do not own the mortgage bonds, the obligations from home owners, notes signed by home owners or the mortgage deeds of the deeds of trust.

The ‘structured products’, consisting of bundled documents ostensibly relating to the above but having NO RECOURSE to underlying real value, were, however, invested with ‘value’ arising from the name of the institution marketing the ‘asset’ – that is to say, arbitrary ‘value’ arising from the fact that, as a Goldman Sachs compliance officer actually admitted to the Editor of this service: ‘A structured product is worth what someone is prepared to pay for it’ – a penetrating statement which encapsulates the possibility that it may be (is) worthless: which is indeed the case.

‘THE MONEY YOU MAKE BY MISUSING MY MONEY IS MY MONEY’ – I.E., THE HOME OWNER’S
The money sloshing around between investment banks in this dirty market was investors’ money unwittingly advanced into pools of capital which winds up being used primarily to finance the fees, profits, insurance proceeds, insurance premia, and so forth – all for the benefit of Wall Street, paid to the investment banks, and not to investors who stumped up the money in the first place.

These fees and relationships are not and have never been disclosed to the home owner despite, in the United States, clear legislation requiring such transparency, including the Truth in Lending Act, and Deceptive Lending – which require full transparency and disclosure.

• Further legislation applicable to the securities sector in the United States is re-listed below – in the list that we have republished at the foot of our website reports for the past three years.

• The list of applicable securities regulations and laws is augmented by a legal tutorial which, again, we have published for the past three years at the foot of these reports,

It would appear that, notwithstanding such reminders, Wall Street and its compliant infrastructure, as well as its co-conspiring portfolio of dubious foreign trading counterparty institutions, has every intention of continuing to violate the relevant US rules and legislation – while at the same time continuing to abuse, in the mortgage sector, the home owner with the same cynicism as in the past.

Given the legal principle that ‘the money you make from misusing my money is my money’, it is quite clear that undisclosed fees, profits, kickbacks and other financial abuses perpetrated by these big speculative financial entities which produce no real wealth at all, but simply move money around between themselves, are payable to the home owner who signed the ‘loan’ papers in the first place.

A PERVERSE AND ARROGANT OFFICIAL INTENT TO CONTINUE VIOLATING U.S. LAW
But none of these realities – which have been rammed home by the technical work that we have published on this subject in International Currency Review, prepared by Michael C. Cottrell, B.A., M.S. – have had any impact so far on the thinking of derivatives sector participants, analysts and observers, who appear to be hell-bent on continuing to violate US legislation.

On the contrary, these people are concerned exclusively with ensuring that the discontinuity that enveloped their sector and the financial markets as a whole in mid-September 2008 – is reversed, even though a total resumption of derivatives trading at full throttle WILL lead the world, and all engaged in this fraudulent activity, into a black hole

Moreover, since cracks are appearing in the entire structure of sophisticated finance ‘as we speak’, centred on Greece – the previous Government of which incurred, through Fraudulent Finance operations using Citibank, Athens, as counterparty to Bush/Cheney trading activities, an immense portfolio of derivatives obligations estimated at 300 billion Euros off-balance sheet, which can never be honoured – the timing of the collapse need no longer be measured in years.

So the self-centred, myopic speculative institutions are behaving like gun-toting bandits in a department store – determined to have their own way, irrespective of the consequences: one of which is that in the event of default, colossal payouts are due on Credit Default Swap contracts, which in fact amounts to institutionalised blackmail.

THE DEPOSITORY TRUST & CLEARING CORPORATION IS IN OVERDRIVE
For its part, the main component of the derivatives infrastructure supporting this prospectively catastrophic speculative activity is the Depository Trust & Clearing Corporation (DTCC) – best known for its Cede & Co. partnership nominee facility, which is the holder of almost every physical stock certificate in existence, and boasts of accounting for more than $2.0 quadrillion in (largely fake) securities transactions annually.

On 10th February 2010, the DTCC announced that the Federal Reserve Board had approved its application to establish a DTCC subsidiary which is to be a member of the Federal Reserve System to operate ‘the Trade Information Warehouse (Warehouse) for over-the-counter (OTC) credit derivatives and the ‘legally accepted’ global depository for over-the-counter credit derivatives transactions’. (10).

THE FEDERAL RESERVE HAS BECOME
THE BACK-STOP GUARANTOR OF CREDIT DEFAULT SWAPS
Which means, in practice, that the Federal Reserve is now the GUARANTOR behind all Credit Default Swap (CDS) transactions that clear via DTCC. The new Fed-endorsed organisation will settle CDS obligations in all currencies and process credit events. It will also handle all over-the-counter credit derivatives traded worldwide, will be regulated by the Federal Reserve and the New York State Banking Department, as well as being ‘overseen’ by other American as well as international regulators (via a sort of college of supervisors).

The DTCC’s Trade Information Warehouse will be operated by a Warehouse Trust, beginning its operations ‘once certain organizational conditions have been met, which are expected shortly’. It is understood that the company will have been funded and will have started operations by March.

One observer, commenting on these arrangements, wrote to say: ‘To be sure, the net notional CDS amount, which is what counterparties would be on the hook for in the case of an orderly unwind of the financial system, is materially lower than the gross total. Yet, as systemic unwinds are never orderly, gross tends to become net – as for instance when Lehman bonds went from par to 10 cents in the space of 24 hours. Should systemic risk flare up again’ (think Greece – Ed.), ’and fiat-based market values quickly catch up with ‘fair values’ – which in our Ponzi economy can very easily be calculated: they are ALL ZERO – the Federal Reserve will be on the hook’, with the US taxpayer, for amounts so large that the volume of printed money will reduce the value of a dollar to one cent or less within the space of a few weeks (or less).

So basis spreads can be expected to be severely compressed, once counterparty risk has become a thing of the past and all systemic risk in the biggest derivatives marketplace (excluding interest rate swaps) is fully backstopped (in theory) by the Federal Reserve.

In addition, the DTCC will be guaranteed monopoly status with respect to Credit Default Swap trading, as no-one in this business will wish to transact or clear anywhere else.

• FACT: Monopolies are illegal under US, British and European law.

STAGE SET FOR AN UNIMAGINABLE (AVOIDABLE)
CATASTROPHE: A DEATH-WISH
So the stage is well and truly set for a catastrophe of unimaginable proportions, bearing in mind that under Geithner as President, the Federal Reserve Bank of New York alone accumulated a portfolio of derivatives ‘assets’ commonly cited at $500 trillion, but which is probably much larger. This of course makes a complete nonsense of the formal derivatives data published by the Bank for International Settlements, which excludes double-counting; but none of these numbers can be relied upon, although the Bank for International Settlements’ information possesses the cachet of authority and has to be used for want of better data (11).

The DTCC is also boasting of further innovations, including the expansion of its Global Corporate Actions (GCA) service based on feedback, sourcing scheduled payment announcements from the Federal Reserve Board for US structured and non-structured securities, specifically Fannie Mae and Freddie Mac securities, which are not DTC-eligible; scheduled payments coverage to include international securities that are not DTC-eligible; and distribution information on UK Unit Trusts.

THE DTCC’S OBLIGATIONS WAREHOUSE SERVICE
The January 2010 issue of DTCC News and Information for DTCC customers further discusses how the DTCC’s Obligations Warehouse, to be launched by mid-2010, will quote ‘provide transparency for the industry and regulators while delivering operational efficiencies, cost savings and risk mitigation to financial firms’. The new service will ‘close the chapter on the manual processing of ex-clearing trades by empowering ops. professionals with a real-time automated service that will electronically manage these transactions and communicate a match to each side of the obligation’.

‘The Obligation Warehouse service will also automate the management of non-Continuous Net Settlement (CNS) fails. ’Because these trades exist outside Continuous Net Settlement, the back office faces an accounting nightmare in handling these transactions – not to mention bearing the added costs for maintaining comprehensive records and dedicated personnel to keep track of their status. The Obligation Warehouse will help mitigate this risk by consolidating all ex-clearing and non-CNS fails in a central location and storing them until settlement’.

‘The Obligation Warehouse enhances transparency by fully capturing, for the first time ever, all trading activity in NSCC-eligible securities in a central location from trade date until settlement. As a result, ex-clearing trades will no longer be invisible to all but the direct parties to that particular transaction. Instead, the industry and regulators will have a complete view of all open obligations traded in the US marketplace for equities, corporates, municipals and also unit trust investment securities – and [will] have a central vantage point to monitor and mitigate systemic risk’ (12).

GREATER TRANSPARENCY WON’T ELIMINATE SYSTEMIC RISK,
OR PREVENT A CONFIDENCE CRISIS
But while being able to see systemic risk stresses emerging may be an advantage, it won’t, and cannot, eliminate systemic risk. This is because these trades are fraudulent given the fact that securitisation violates US law (and Common Law in English-speaking countries), while in most contexts anyway, they are bedevilled by a lack of real value and non-recourse characteristics.

As for Credit Default Swaps, whatever the contract provides and whenever the counterparties decide on the basis of the contract that a default has taken place or is about to take place, it is in the interests of the provider to allow the default to take place, given the huge payouts which ensue. In other words, the contract is based on latent blackmail. That alone makes it illegal.

SO, WHERE ARE YOU, MR HOLDER?
Much more seriously, as summarised above, securitisation contracts are ALL ILLEGAL under US and Common Law. Therefore, all US official and ‘private’ sector operations being framed so as to revalidate and rehabilitate securitisation represent a perverse assault on the Rule of Law, and the commission of multiple felonies – accordingly leaving ALL perpetrators, whether holders of public office under the United States or any other level of government or employed by wayard financial institutions, or developing the securitisation infrastructure, vulnerable to criminal investigation, indictment, arrest and prosecution for gross and knowing violations of the law.

Whether the scandalous immunity from prosecution awarded by the World Court on demand to the five self-acknowledged criminal US Presidents protects them from the appropriate legal sanctions, prosecution and punishment within the US jurisdiction itself, isn’t clear: but we doubt it. Ironically, therefore, since the five Presidents have, by demanding immunity from prosecution from the World Court, acknowledged their own criminality, it is open to the US authorities to investigate, indict and arrest these operatives – since they have acknowledged their guilt. Where are you, Mr Holder?

Your job is to administer justice without fear or favour, isn’t it?

APPENDIX:
LORD MYNERS SAYS THERE MUST BE PENALTIES FOR BANK EXCESSES
On 8th March 2010, the UK ‘City Minister’ (Financial Services Secretary), Lord Myners, who in our opinion has been far too laid-back in failing to condemn criminality in the corrupted City of London, said that financial markets must ‘punish’ those who ‘make mistakes’ [sic!]. Without a ‘downside’, it would be impossible to ‘restore’ market discipline.

In all likelihood, Lord Myners didn’t really understand what he was saying – which was that the market system wasn’t functioning properly. And the reason for that is summarised in our report above: securitisation impedes the proper operation of market forces via its opposition to public policy in the bankruptcy context, its antitrust characteristics, and in the other ways described in outline in the present report. Does Myners understand this?

All that Lord Myners actually said, at a meeting in London, was that bankers had been obscenely remunerated even though they had ‘made serious mistakes’ (unspoken), code for ‘behaved like organized criminals’ (even more unspoken): ‘A lot of people lost money in the financial sector over the last few years – bank shareholders in particular suffered massive losses’.

‘But many people have been protected. Creditors have been bailed out. Far too many bankers themselves have enjoyed massive awards during the crisis, even as their firms were rescued’.

Well, we knew all that. When he got down to detail, Myners told the meeting that the Government was determined to ensure that no bank was too complex to fail. ‘We’re serious about removing the safety net that has allowed those with blind faith in market efficiency to ignore the consequences of their lack of discipline’ [sic! Let the word ‘criminality’ NEVER BE MENTIONED].

‘We are also working with G-20 countries and the IMF to access the feasibility of an international levy or fee on financial institutions. This will make sure that any residual insurance that banks are perceived to enjoy after living wills are implemented, will not come for free’.

Lord Myners then redeemed his rather shallow observations by pointing out that the implicit support of the financial industry in the past had probably represented the most expensive public subsidy to any industry in any part of the British economy, ‘vastly exceeding’ that paid to agriculture or the defence industry.

‘There is no reason why the public, taxpayers, should continue to provide a free at the source of delivery subsidy to the cost of capital of the banking system. We need to do everything we can to shrink the subsidy to zero’.

Under the Brown Government’s new Financial Services Bill, consumers would be granted new powers to seek redress through the courts. However the weakness of Lord Myners’ presentation was his complete failure to indicate that he and the Government understand that a colossal volume of the transactions which gave rise to the crisis in the first place were and remain ILLEGAL.

It’s no use trying to reform the ‘framework’ when the transactions being promoted within the framework contravene antimonopoly legislation, bankruptcy legislation and all the other elements of the law identified in outline above. So, laudable though Lord Myners’ objectives appear to be, he is in fact wasting everyone’s time.

He appears not to understand that the transactions which precipitated the crisis were CRIMINAL TRANSACTIONS, and his failure to address the criminality issue – which is really the ONLY issue – indicates that the Government in London is trying to cover up and ignore the criminality: because of the vast tax accruals from the recalcitrant financial sector that the Government needs more than ever, given its colossal subsidies to the criminal financial enterprises whose casino operations have been exposed.

POSTSCRIPT:
STIGLITZ: ‘THE AMERICAN BANKING SYSTEM IS CORRUPT’
The headline above appeared in the British press on 10th March 2010. Eager with anticipation and almost salivering with excitement, your correspondent rushed to read the article in question. Here, at last, he thought, was a fully paid-up member of the Great and the Good coming to his senses and calling a spade a spade at last. Alas, for Nobel Prize-winning Dr Stiglitz, a spade is in fact a fork.

Professor Stiglitz, who teaches at New York’s Columbia University, said that the Federal Reserve System ‘smells bad’. The Editor invoked the smell of the Fed, and of course agreed. But on further reading, it transpired that Dr Stiglitz was merely complaining that the Presidents of the 12 regional Federal Reserve Banks are chosen by commercial bankers.

‘The regional Reserve Banks… have a key role in regulation and in the last crisis [i.e., once again, it’s ‘in the past’: Ed.] of bailing out the banks. But the heads of these organisations are chosen by a committee dominated by the big banks that are being bailed out… so the people bailing out are appointed by the people who they bailed out. It smells bad. It looks bad. It undermines confidence’.

OH DEAR. Is this the best Dr Stiglitz can do? The American banking system is corrupt because the heads of the 12 regional Federal Reserve Banks are chosen by the big banks? Is that really, Dr S., the reason that the system is corrupt? Have we not been exposing rampant racketeering by the same big banks alluded to? Oh sorry, we forgot. He’s a Nobel Prize-winning economist.

The holder of a Nobel Prize can only say what’s considered kosher by the globalist internationalists who use the Nobel Prize system to ‘EMBED’ the ‘PARTY LINE’ in the public’s psyche. So the ‘party line’, as we speak, is to ACKNOWLEDGE that, yes, the US banking system is indeed corrupt, as Mr Story has been reiterating as nauseam, but to attribute this to the way the heads of the regional Feds are chosen. [With the Federal Reserve Board, the number of Feds is a geomasonic 13].

Notes and references:

(1): As previously reported, the Editor visited the veteran author and journalist Gordon Thomas, at his suggestion, in Bath in the fourth quarter of 2004.

During that visit, Mr Thomas indicated that MI-6 had informed the British media that Christopher Story has been a participant in the abortive putsch in Equatorial Guinea, with which Mark Thatcher was associated. Since the Editor of this service has done nothing, literally, since 1963, except run his publishing and print production businesses, the Editor asked why such lies and false witness would be perpetrated – especially against someone such as the Editor of this service whose loyalty to the Crown and the United Kingdom cannot possibly be, and has never been, questioned.

He replied:

‘They think you may be dangerous because you control your own
publications and you have the documents’.

In divulging this, of course, Mr Thomas revealed that MI-6 itself had something to hide. If the Editor was dangerous ‘because you hold the documents’, the documents themselves clearly represented elements of something much bigger. So the consequence of this intervention was that the Editor naturally redoubled his private investigations to establish what MI-6 were so anxious to cover up.

When the Editor protested to Thomas that the lies disseminated to the media about him were rank fabrications, Gordon Thomas uttered the memorable response:

‘It doesn’t matter that it’s not true. What matters is that it’s out there’.

In the course of this meeting, Gordon Thomas made it quite clear to the Editor that he is an agent of influence and acts as an agent for MI-6. He said that his father had been an MI-6 officer.

Given Thomas’s statement ‘It doesn’t matter that it’s not true. What matters is that it’s out there’, everything that Gordon Thomas himself publishes must, by definition, be questioned – since he was quite content to go along with this twisted and nefarious mentality.

• You could say that by revealing this to the Editor, both Thomas and MI-6 exhibited a degree of abject stupidity which perhaps we haven’t emphasised sufficiently.

Furthermore, it became quite obvious that the purpose of this exercise was intimidation. Thomas accompanied his message with a veiled threat, as well. Clearly, these people are accustomed to targets caving in to such pressures, and they have no immediate backstop plans when the target fails to react in accordance with their evil intentions.

As a follow-up to this operation, Thomas badgered the Editor in New York to get in touch with an operative who later turned out to go by the nickname ‘The Visitor’, who used the name Walker as an alias, but who’s real (Ukrainian) name is Demchuk. This operative was said to have Pentagon links. At fist the Editor refused, but Gordon Thomas (as agent for MI-6) persisted, and finally the Editor agreed to meet this fellow, by appointment (arranged via Hushmail) in the fishing tackle area of a sports store on Fifth Avenue. The Editor has no interest in sport and had never been inside a sports store. However at the appointed hour, the Editor appeared, and found this man lurking in the traditional grey raincoat amid the fishing rods. We repaired to the Algonquin Hotel, where the operative proceeded to pump the Editor on one subject alone, namely Lt. Mark Delmart Vreeland.

Subsequently, Demchuk pestered the Editor to reveal all he knew about the Iraqi ‘Sarindar’ WMD removal programme, under which two Soviet ships had sailed from the Iraqi port of Umm Qasr in February 2002, ahead of the illegal invasion. The Editor had obtained information on this from open sources, especially the high-level Romanian defector, Ion Pacepa, and additionally from Soviet Military Intelligence (GRU), some information about which is available on the Internet.

In other words, the information supplied to this ‘US’ operative by the Editor was all obtained from open sources. The operative ordered a number of our publications which he said he would pay for, received them, but later vanished without fulfilling his financial undertaking (par for the course).

In March 2005, the Editor suddenly received a phone call from this Pentagon-linked operative in London, in which he spoke immediately about some operation in Monaco involving the dubious operative Bernie Ecclestone. The US operative appeared to assume that the Editor knew what he was talking about, as he gave the Editor to understand that he (Demchuk) believed that the Editor was involved with whatever operation in Monaco (a key CIA center) he was talking about. When the Editor said: ‘I have no idea what you are talking about. You’d better go back to your source’, there was a very long and stony silence.

He then said: ‘Well, that’s very surprising, in view of where this comes from’. Since the Editor knew from another source that Demchuk had just visited MI-6, it almost immediately became crystal clear that this was yet another attempt by MI-6 to ‘sting’ the Editor of this service.

In view of the fact that a US ‘inside’ source told a contact of the Editor’s in February 2010 that ‘MI-6 intend to take Story out’, because he knows too much about what is going on (and what they are up to), we place the foregoing information on the record again: and we will revisit these sequences with greater, hitherto unpublished, detail, in due course.

If the British intelligence community thinks it can intimidate a private publisher whose sole interest is to expose the racketeering that these people are all trying to cover up, it had better think again. You could argue that what we have done to date has actually assisted the British authorities to get their acts together in the face of this unprecedented crisis: but to be informed, after going through so much, that they intend to ‘take Story down’, is one slap in the face too many: and it reflects very badly on the US source of this disgraceful threat and further intimidation attempt, as well.

For the elimination of all residual doubt, we will persist with these exposures until such time as the necessary remedial measures have been taken. Interestingly, as you will have noted appended to this report (Appendix), Lord Myners, the City (of London) Minister in the Labour Government, has just indicated that the measures taken to discipline the City have been quite inadequate to date – although he fails to use words like ‘criminal’, ‘fraud’, ‘organised crime’, ‘racketeering’, ‘Fraudulent Finance’ etc: so he has a great deal of catching up (with us) to do.

(2): See the following reports on this website [Archive]:

• 9th January 2010: Text of the CMKM/CMKX lawsuit against the S.E.C.: Case Number CV10-00031 JVS (MLGx): Santa Ana, California. Subsequent to our posting the complete text of the Complaint immediately it had been filed, the text was also made available on the following link: http://viewer.zoho.com/docs/paKdda

• 29th January 2010: Service of CMKM/CMKX $3.87 trillion suit vs. S.E.C.

• 07 February 2010: Legal moves to sue those blocking the Settlements

• 02 March 2010: S.E.C. Phantom Shares Fraud: New Intelligence

(3): See text of the letter from Mr A. Clifton Hodges, Attorney for the CMKM/CMKX victims, to the Office of the Attorney General for New York State, Mr Andrew Cuomo: report of 2nd March 2010.

(4): Wanta’s rôle, having served as courier between Bush Sr. and Gorbachëv, has always been to facilitate thefts and diversions of funds to George Bush Sr. (and Gorbachëv, given that the former Communist President is a partner with Bush Sr. in Deutsche AG., as explained in this and recent reports). This helps to explain why from time to time during these investigations, we have been told that ‘Bush Sr. considers the monies to belong to him’.

(5) A ‘Foreclosure Autopsy’ reporting service is available, for instance, from the following analyst:

Charles Wayne Cox
Certified Forensic Loan Analyst
Notary Public
131 Sutphen Street
Santa Cruz
California 95060
Telephone: 831-466 3440
Facsimile: 619-330 2379
Email: mailto:Charles@BayLiving.com
Website: www.ForensicLoanAnalyst.com

Charles Cox is recommended to the Editor personally by a friend of impeccable integrity who is also an expert on these issues, based in San Diego. Cox is a Para-Legal and a noted forensic expert on reading mortgage documents, serving lawyers to help their foreclosure clients. Our friend and correspondent wrote, when introducing Charles Cox: ‘Charles helped a friend of mine here in San Diego by reading his original Note and mortgage documents. Incredibly, the Note to the mortgage was made out to San Diego. Later, a copy from the County Recorder’s office showed that San Diego had been crossed out, and written in was ‘United Republic’.

The mortgage was done by a mortgage company in Colorado (now out of business) but was sold to Aurora which was owned by Lehman Brothers. Aurora is still the servicer on the loan, and my friend is suing them and requested through a qualified letter a copy of the original Note to show that they are the legal owners of the Note’.

(6): ‘Northern Rock’s Line in Excuses: Holding Paid-out Title Deeds for Five Years: A forensic analysis of how Northern Rock managed to hold on to title deeds belonging to a former mortgagor, with details of its conflicting excuses for non-performance’: International Currency Review, World Reports Limited, London and New York, Numbers 1 and 2, pages F-153 to F-172.

(7) ‘Securitization is completely illegal and fraudulent under US law’, Economic Intelligence Review, World Reports Limited, London and New York, pages 5-21.

(8): ‘Gensler Turns Back on Wall Street to Push Derivatives Overhaul’,
Bloomberg, 12th February 2010.

(9): ‘Gensler Turns Back on Wall Street to Push Derivatives Overhaul’,
Bloomberg, op. cit., 12th February 2010.

(10) ‘January 2010 News and Information for DTCC customers’ published
by the Depository Trust & Clearing Corporation’, accessed 13th February 2010.

(11): The derivatives data maintained by the Bank for International Settlements, and reproduced by the International Monetary Fund in successive issues of its literature, are the only ‘reliable’ data available. Because they are issued by the BIS, they are authoritative, but it is not known whether they are accurate. The BIS data, which exclude double counting, showed that in June 2008, total Notional Over-the-Counter derivatives contracts outstanding on that basis reached some $693,814 billion. By December 2008, this total had contracted to $547,371 billion given the discontinuity of September 2008; but by June 2008, the total outstanding had recovered to $604,622 billion.

The Gross Market value of total underlying derivatives contracts outstanding amounted to $20.4 trillion in June 2008. $32.2 trillion in December 2008, and $25.4 trillion in June 2009.

(12): ‘January 2010 News and Information for DTCC customers’ published
by the Depository Trust & Clearing Corporation’, op. cit., accessed 13th February 2010.

LIST OF U.S. STATUTES, SECURITIES REGULATIONS AND LEGAL PRINCIPLES OF WHICH THE CRIMINALISTS, ASSOCIATES AND ALL THE MAIN FINANCIAL INSTITUTIONS REMAIN IN BREACH:

LEGAL TUTORIAL: The Steps of Common Fraud:

Step 1: Fraud in the Inducement: “… is intended to and which does cause one to execute an instrument, or make an agreement… The misrepresentation involved does not mislead one as the paper he signs but rather misleads as to the true facts of a situation, and the false impression it causes is a basis of a decision to sign or render a judgment”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Hauppauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

Step 2: Fraud in Fact by Deceit (Obfuscation and Denial) and Theft:

• “ACTUAL FRAUD. Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.

Step 3: Theft by Deception and Fraudulent Conveyance:

THEFT BY DECEPTION:

• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.

• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.

• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.

FRAUDULENT CONVEYANCE:

• “FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.

• “Conveyance made with intent to avoid some duty or debt due by or incumbent or person (entity) making transfer…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Conveyance’.

U.S. SECURITIES REGULATIONS OF WHICH INSTITUTIONS
HAVE BEEN SHOWN TO BE IN BREACH [SEE REPORTS]:

• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957
• 97-13 Bank Secrecy Act, Recordkeeping Rule for funds transfers and transmittals of funds, et al.

U.S. LAWS ROUTINELY BREACHED BY THE CRIMINAL OPERATIVES AND INSTITUTIONS:

• Annunzio-Wylie Anti-Money Laundering Act
• Anti-Drug Abuse Act
• Applicable international money laundering restrictions
• Bank Secrecy Act
• Crimes, General Provisions, Accessory After the Fact [Title 18, USC]
• Currency and Foreign Transactions Reporting Act
• Economic Espionage Act
• Hobbs Act
• Imparting or Conveying False Information [Title 18, USC]
• Maloney Act
• Misprision of Felony [Title 18, USC] (1)
• Money-Laundering Control Act
• Money-Laundering Suppression Act
• Organized Crime Control Act of 1970
• Perpetration of repeated egregious felonies by State and Federal public employees and their Departments and agencies, which are co-responsible with the said employees for ONGOING illegal and criminal actions, to sustain fraudulent operations and crimes in order to cover up criminalist activities and High Crimes and Misdemeanours by present and former holders of high office under the United States
• Provisions pertaining to private business transactions being protected under both private and criminal penalties [H.R. 3723]
• Provisions prohibiting the bribing of foreign officials [F.I.S.A.]
• Racketeer Influenced and Corrupt Organizations Act [R.I.C.O.]
• Securities Act 1933
• Securities Act 1934
• Terrorism Prevention Act
• Treason legislation, especially in time of war.

• BEWARE OF MALICIOUS IMITATIONS: It has come to our notice that certain websites have been in the habit of copying reports from this site, attributing the reports to the Editor of this service, but at the same time AMENDING AND INSERTING TEXT NOT WRITTEN BY THE EDITOR.

• This is a very old, malevolent US counterintelligence DIRTY TRICK.

Therefore, you should be advised that the GENUINE ORIGINAL REPORT is, by obvious definition, accessible ONLY FROM THIS WEBSITE. If you come across an article elsewhere that is attributed to the Editor of this service, you should refer to the ORIGINAL ARTICLE HERE and you should bear in mind that the illegally duplicated article may contain text that was NOT written by the Editor of this service, but which was inserted for malicious purposes by counterintelligence.

Likewise, although we haven’t yet had time to elaborate this issue, we have taken drastic steps around the world to close off the malicious piracy of our books. One technique used by several disreputable sites (in the United States, the Netherlands and Switzerland) is to copy our title(s) and (a) to display an image of the front cover WITHOUT THE ISBN DATA at the top of the cover; and (b) to DELETE THE COPYRIGHT PAGE. In so doing, the criminal pirates proclaimed that they knew perfectly well that they were/are engaged in theft and can be prosecuted for stealing copyright.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

We are a private intelligence publishing house and have no connections to any outside parties including intelligence agencies. The word ‘intelligence’ on this website and in all our marketing material is used for marketing/sales purposes only and has no other connotations whatsoever: see ‘About Us’ on the red panels under the Notes on the Editor, Christopher Story FRSA, who has been solely and exclusively engaged as an investigative journalist, Editor, Author and private financial and current affairs Publisher since 1963 and is not and never has been an agent for a foreign power, suggestions to the contrary being actionable for libel in the English Court.

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It has now been established that the National Security Agency (NSA) works with/controls Microsoft, Norton, McAfee, and others, in pursuit of the Pentagon’s vast BIG BROTHER objective, directed from the ‘highest’ levels (not the levels usually referred to) which seek to have every computer in the world talk direct to the Pentagon or to NSA’s master computers.

This should come as no real surprise since the cynical spooks even assert this ‘in-your-face’ by advertising ‘INTEL INSIDE’, which says exactly what it means. More specifically, NSA have made great strides in this direction by having a back door built into Microsoft VISTA. Certain computers, especially those labelled with the logo of the ‘fully collaborating’ firm Hewlett Packard, have hard-core setups which facilitate the remote monitoring and controlling of personal computers by NSA, Fort Meade. We now understand that if you are using VISTA* you MUST NOT enable ‘file and printer sharing’ under any circumstances. If you say ‘YES’, so to speak, to ‘file and printer sharing’, your computer becomes a slave at once to NSA’s master computers. DO NOT ENABLE SHARING.

Unfortunately, this abomination is so far advanced that this may not be the only precaution that needs to be taken. As long as Microsoft continues its extensive cooperation with NSA and the NSC (National Security Council), the spying system which assists the criminalised structures, and thus hitherto the Bush-Clinton ‘Box Gang’ and its connections, with their fraudulent finance operations, NSA may be able to steal data from your computer. The colossal scourge of data theft is associated with this state of affairs: data stolen usually include Credit Card data, which the kleptocracy regards as almost as good as real estate for hypothecation purposes. Even so, you can make life very much more problematical for these utterly odious people by NOT USING U.S.-sourced so-called Internet Security and anti-virus software. Having been attacked and abused so often, we offer a solution.

We use a proprietary FOREIGN Internet Security program which devours every PC Trojan, worm, scam, porn attack and virus that the National Security Agency (NSA) throws at us. We are offering this program (CD) to our clients and friends, at a premium. The program comes with our very strong recommendation, but at the same time, if you buy from us, you will be helping us finance ongoing exposures of the DVD’s World Revolution and the financial corruption that has been financing it.

The familiar US proprietary Internet Security programs are by-products of US counterintelligence, and are intended NOT to solve your Internet security problems, but to spy on you and to report what you write about, to centralised US electronic facilities set up for the purpose. You can now BREAK FREE from this syndrome while at the same time helping us to MAINTAIN THE VERY HEAVY PRESSURE UPON THE CRIMINALISTS WE HAVE BEEN EXPOSING, by ordering this highest quality FOREIGN (i.e., non-US) INTERNET SECURITY SOLUTION that we have started advertising on this website. This offer has been developed in response to attacks we have suffered from the NSA nerds who appear to have a collective mental age of about five years, judging by their output.

• To access details about the INTERNET SECURITY SOLUTION, just press THE LIVE LINK YOU HAVE JUST READ, or else press SERIALS in the red panel below. This opens up our mini-catalogue of printed intelligence publications. Scroll right down to the foot of that section, where you will see details of this service. When you buy this special product, you will also, as we clearly state above, be paying a special premium by way of a donation to help us finance these exposures.

The premium contains a donation for our exposure work and also covers our recommendation based on the Editor’s own experience that this INTERNET SECURITY SOLUTION will make your Internet life much easier. The program has an invaluable ‘Preview before downloading’ feature.

• It is suitable for PC’s but not Mac computers. As with all such programs, the License is renewable at a modest fee annually. This is done on-line in the usual way [with the supplier direct].

S.E.C. PHANTOM SHARES FRAUD: NEW INTELLIGENCE

cropped-chrisstory

LATEST DEVELOPMENTS FOLLOWING THE BLOWING OF THE CAULDRON LID

Tuesday 2 March 2010 01:00

• REPORTS UPDATE: We have a very extensive report containing inter alia the promised detailed information demonstrating/proving that ALL securitisation is ILLEGAL under US and Common Law (applicable in the UK, Canada, Australia, New Zealand etc). This report is nearly ready to be posted.

However on 9th March we became aware of a MONUMENTAL FRAUD, so blatant and careless, that we are likely to need to present details of this fraud, which has been set up for the explicit purpose of stealing and diverting the monies directed to be payable to Mr Michael C. Cottrell’s Pennsylvania Investments, Inc. When we became aware of this US fraud, its extreme crudity and crass stupidity caused consternation beyond anything experienced to date. We are currently awaiting receipt of further details, but we already have enough official documentary information to hand to enable us to conclude that the racketeers that we have cornered have now gone completely mad.

There was no way that this fraud could not have been detected. Because it HAS been detected, all hell has broken loose today [9th March 2010], especially as ALL CONCERNED, via their cadres who are paid to listen-in to our phone calls, are aware that WE have the data on this fraud and WILL, as always, ensure that YOU are fully appraised of the lengths these serpents will go to STEAL MONEY.

• THE SECURITIES AND EXCHANGE COMMISSION PHANTOM SHARES FRAUD: UPDATE

• THE SITUATION REGARDING THE TAX TAKEN ON 31ST DECEMBER 2009:

• IT APPEARS TO HAVE BEEN MISAPPROPRIATED: THIS IS A COLOSSAL ‘INSIDE’ CRIME:
INVESTIGATION BY NEW YORK STATE ATTORNEY GENERAL’S OFFICE HAS BEEN DEMANDED

• LETTER TO THIS EDITOR FROM THE LAWYERS FOR THE CMKM VICTIMS

• LETTER WAS LEAKED, AND HAS BEEN CIRCULATING BELOW THE RADAR

• PARALLEL LETTER TO THE OFFICE OF THE ATTORNEY GENERAL
OF THE STATE OF NEW YORK FROM THE LAWYERS FOR THE CMKM VICTIMS

• RELEVANT TEXT FROM OUR REPORT DATED 12TH FEBRUARY 2010

• THE JAILING OF THE FORMER GOVERNOR OF THE BANK OF ENGLAND

• Quote of the year:

Christopher Story is a problem for them, but they believe they can handle it provided what he publishes is not taken up by the mainstream media’.

Statement to the Editor on 26th February 2010 by Mr A. Clifton Hodges, Lawyer for the CMKM/CMKX SEC scam victims, 26th February 2010

• Quote of the century:

‘It doesn’t matter that it’s not true. All that matters is that it’s out there’.

Statement to the Editor by journalist Gordon Thomas, December 2004, in Bath, Somerset, after Mr Thomas had informed the Editor that MI-6 had borne false witness against the Editor of this service by conveying the false report to the gullible mainstream press that Mr Story had been associated with Sir Mark Thatcher et al in connection with the notorious aborted Equatorial Guinea fiasco, notwithstanding that this Editor has done nothing at all since 1963 but run his own publishing businesses 24/7, 365 days a year, so much so that he never even went on holidays with our four daughters when they were growing up.

When the Editor asked Mr Thomas why such blatant lies would be disseminated to the press, especially given that the Editor used to have huge op-ed articles published regularly on the main page of The Daily Telegraph in the 1970s and early 1980s, Gordon Thomas replied:

‘They think you may be dangerous, because you control your own publications and you have the documents. They have told the press this stuff so that when you publish what they don’t want disseminated, the press won’t believe you and will pay no attention’.

Naturally, the Editor, realising that if ‘they’ thought he was dangerous, they must have something HUGE to hide, took the hint and has been pursuing these investigations intensively ever since. You need to understand that these intelligence personnel, in addition to being nasty pathological liars and deceivers, are also often extremely STUPID.

• MORE ABOUT GORDON THOMAS AND HIS GAMES AT THE FOOT OF THIS REPORT.

• Quote of the millennium:

‘The reason why 9/11 is not mentioned on Usama Bin Laden’s Most Wanted page is because the FBI has no hard evidence connecting Bin Laden to 9/11’.

At the FBI’s website, http://www.fbi.gov/wanted/terrorists/terbinladen.htm, you will see that Osama bin Laden is wanted for a couple of crimes (flimsy evidence) but not the 9/11 attacks. When asked why there is no mention of 9/11 on Bin Laden’s Most Wanted web page (30), Rex Tomb, Chief of Investigative Publicity for the FBI made the classic statement cited above, which of course makes a complete mockery of the lies spewed out by the Bush Administration and the CIA concerning 9/11 and ‘The War on Terror’. If you go to the FBI’s website, note that the background is BLACK.

• FACT: ALL websites with a BLACK background, have a BLACK background for a reason: The background is BLACK because the organisations in question belong to the BLACK FORCES of Lucifer that we are confronting. There is absolutely NO NEED to have a BLACK background. It sends the intended signal, and the intended signal is BLACK. This is just an add-on observation.

MISPRISION OF FELONY: U.S. CODE, TITLE 18, PART 1, CHAPTER 1, SECTION 4:
‘Whoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some Judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both’.

‘Seeing what’s at the end of one’s nose requires constant effort’. George Orwell.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

• BOOKS: Edward Harle Limited has so far published FIVE intelligence titles: The Perestroika Deception, by Anatoliy Golitsyn; Red Cocaine, by Dr Joseph D. Douglass, Jr.; The European Union Collective, by Christopher Story; The New Underworld Order, by Christopher Story; and The Red Terror in Russia, by Sergei Melgounov. All titles are permanently in stock. We sell books DIRECT.

• ADVERTISEMENT: Details of the INTERNET SECURITY SOLUTION software offered by this service in conjunction with a donation can be accessed immediately: See the Home Page World Reports Limited serials catalogue by clicking World Reports Limited and scrolling to foot of page. Scroll to the foot of THIS page to read our extended Ad. for the INTERNET SECURITY SOLUTION.

Christopher Story FRSA, Editor and Publisher, International Currency Review, World Reports Limited, London and New York. For earlier reports, press the ARCHIVE. Order your intelligence subscriptions and ‘politically incorrect’ [i.e., correct] intelligence books online from this website.

• CMKM/CMKX CASE DOCUMENTS:
Press Archive for this report [29th January 2010]
Case Number CV10-00031 JVS (MLGx):
SERVICE OF CMKM.CMKX $3.87 TRILLION SUIT VS. S.E.C.
You can also access the CMKM/CMKX text at: http://viewer.zoho.com/docs/paKdda
The biggest lawsuit in world legal history: The phantom share giga-scandal.

• See also: Legal moves to sue those blocking the Settlements: 7th February report [Archive].

• The promised report showing that ALL SECURITISATION IS ILLEGAL UNDER U.S. LAW (and indeed in ALL Common Law countries) has been superceded by this report, but will be presented as soon as practicable. Financial platform fraudsters have had it both ways so far: NO LONGER.

NEW REPORT STARTS HERE:

THE SITUATION REGARDING THE TAX TAKEN ON 31ST DECEMBER 2009
On 12th February 2010, we advised that TAX having been deducted on 31st December 2009 from the Settlements funds, it was incumbent under US law for those concerned to pay out the funds from which the tax had been deducted within 45 days (viz.: 30 days plus the statutorily available extension of 15 days).

On the basis of premium information, and our own best information and belief, the funds from which the tax was taken on 31st December 2009 remain undisbursed. This being the case, those who are responsible are liable to extremely serious criminal penalties.

Many parties around the world have asked the Editor to provide ‘the answer’ to the matter which appeared to have been left up in the air following our report dated 12th February. On a matter such as this, we cannot possibly be expected to comment, let alone in knee-jerk fashion, until we have the necessary information to hand.

So, since the tax was taken on 31st December, and the payouts did not take place within the 45 days, and there is no related information to the effect that the tax taken out of the capital sum was restored to the capital sum within the 45-day period as should have occurred (at a minimum), what happened to the tax accruals (of $4.0 trillion to $4.2 trillion)? Was it placed out under contract in Brazil, for example? As we understand the situation, confidence in ‘paper’ is crashing everywhere, so the money may be ‘just sitting there’. $100 billion was peeled off and remitted to a false religious outfit, the identity of which is known to us, as we also reported on 12th February 2010.

LETTER TO THIS EDITOR FROM THE LAWYERS FOR THE CMKM VICTIMS
On 1st March 2010, the Editor received the letter displayed below, by Fedex, from Mr A. Clifton Hodges, the Attorney for the 50,000+ CMKM/CMKX victims [see reports dated 9th January, 29th January, 7th February and 12th February 2010: press ARCHIVE] who, following our introduction, is also fully cognisant of the matter of the stealing of the Deutsche Bank contract for $500 billion and electronic signature belonging to Mr Michael C. Cottrell, B.A., M.S. which was illegally exploited as described in our report dated 7th February 2010, with the successive trading proceeds credited with Deutsche AG (formerly Barrington Investment Group), St Gallen, Switzerland. [See Appendix below for further detail from our report dated 7th February 2010).

The partners in Deutsche AG include Mikhail Gorbachev, former President of the Soviet Union, George H. W. Bush, former President of the United States, Dr Helmut Kohl, former Chancellor of Germany, and Dr Joseph Ackermann, CEO of Deutsche Bank AG..

Kohl, by the way, became the biggest holder of Young and Dawes Gold Certificates and of railroad certificates, and was notorious for his capacity to get hold of such certificates held by others and to procure their invalidation. The collection of Gold Certificates acquired by Kohl were never written off and never negated.

The letter from Mr A. Clifton Hodges to the Editor of this service reads as follows:

HODGES AND ASSOCIATES
A Professional Law Corporation
4 East Holly Street
Suite 202
Pasadena, CA 91103
Telephone: (626) 564-9797
Facsimile: (626) 564-9111

A. Clifton Hodges
James S. Kostas
Donald W. Ricketts*
* Of Counsel

February 26, 2010

Mr Christopher Story FRSA
Editor and Publisher
108 Horseferry Road
Westminster
London SW1P 2EF, UK

Re: US Domestic Settlement Funds Treasury Default

Dear Mr Story:

As we all labor to accomplish what we each hope will assist the financial world to return to a more constitutionally acceptable state, I write to enlist your assistance. I am informed and believe, as you have previously reported, that some $4.2 trillion was transferred to the US Treasury on December 31, 2009, as an initial payment of US taxes for the Domestic Settlement Funds.

New York State Law, United States Law and International Law all provide for criminal sanctions for failure to disburse Trust assets within an absolute maximum of 45 days after such a tax payment. That time period of 45 days expired at midnight on February 14, 2010. My further understanding is that the Trust assets remain undisbursed; accordingly, very serious criminal penalties have been incurred by those responsible for the continued failure to make these payments.

My clients and I are requesting your assistance in submitting this matter to Her Majesty The Queen, in hopes that she will direct her agents now present in this country to file a complaint that Interpol can act upon, and to have the MI-6 people take charge of getting this program finished.

My information is that the US Treasury still possesses these tax revenues [meaning of course that they have not been returned to the taxpayer] which in turn suggests that the US Government is in serious and substantial default.

You should be aware that I have also requested Mr William Bonney, whom I have been advised is a member of MI-9, to make a similar inquiry of The Queen.

I believe that, although you may not be directly in contact, you have sources and communication channels available to make this information and request known to Her Majesty. I know you to be a man of great integrity and of the highest moral standards; accordingly I am pleased and confident to leave this matter in your hands.

Thank you in advance and on behalf of my 50,000+ shareholders/clients.

Sincerely,
HODGES AND ASSOCIATES
[Signed]
A. Clifton Hodges

LETTER WAS LEAKED, AND HAS BEEN CIRCULATING BELOW THE RADAR
This letter to the Editor was leaked and has been in circulation since a faxed advance copy was made available to the Editor at the end of last week. Since it is known that Mr Hodges’ computers were compromised, it is possible that the letter was extracted by that means. Another possibility, suggested by Mr Hodges himself, is that one or more of his clients, who are reported to us to be beside themselves with fury at the scandal of 2.25 trillion CMKM/CMKX stock being floated via a platform from within the Securities and Exchange Commission itself under the George W. Bush Administration (between June 2004 and October 2005), leaked the letter, the top copy of which, as noted, arrived in London, at the Editor’s request, on 1st March 2010. The Editor asked for the top signed copy so that it could be forwarded as requested by Mr Hodges, which has now been done.

PARALLEL LETTER TO THE OFFICE OF THE ATTORNEY GENERAL
OF THE STATE OF NEW YORK FROM THE LAWYERS FOR THE CMKM VICTIMS
Also on 26th February 2010, Mr A. Clifton Hodges, lawyer for the CMKM/CMKX plaintiffs, wrote to the Office of the Attorney General of the State of New York, as follows [Hodges and Associates’ coordinates as above]:

[Office of] The Attorney General of the State of New York
120 Broadway, 23rd Floor
New York, NY 10001

Dear Ms. Brown:

Thank you for speaking with me earlier today and explaining that Mr. Markowitz was out for the rest of the day. We discussed briefly the nature of my request and you suggested that I forward the appropriate information to your attention via e-mail for Mr. Markowitz’s review on his return Monday, March 1, 2010. The information is as follows:

• I am a California trial attorney with some 40 years’ experience in State and Federal Court, as well as other jurisdictions.

• In January of this year I filed a Bivens Class Action against the five sitting SEC Commissions and five past SEC Commissioners seeking some 3.87 Trillion Dollars in damages for the taking of property by unconstitutionally withholding consent to distribute such sums as had previously been collected for the benefit of 50,000 + shareholders of CMKM Diamonds, Inc.; a conformed copy of the complaint is attached.

• The SEC Office of General Counsel has agreed to accept service on behalf of the sitting Commissioners; the other commissioners are currently being served.

• The weight of opinion is that this litigation will not be allowed to proceed into the discovery stages and/or to trial; there is mounting evidence that a distribution of funds to the shareholders is on the near horizon.

• I am advised that a portion of trust funds previously earmarked for distribution to support the U.S. Domestic Settlement Fund Program currently in process were distributed to the United States Treasury facility in New York City on December 31, 2009 through and with the assistance of the New York Federal Reserve Bank in New York City.

• I am advised that these trust funds totaled 4.2 Trillion Dollars and were paid into the U.S. Treasury as and for taxes due to be paid from the trust(s) upon distribution of the trust assets.

• I am further advised that pursuant to Federal Banking Regulations, New York State Banking Regulations, and the Martin Act, inter alia, the transferred funds could be held without return for a maximum period of time under any circumstances for 45 days or until midnight February 14, 2010.

• I am further advised that the U.S. Treasury has not remitted these funds, is still possessed of these funds and more importantly the trust(s) assets have not been distributed.

• The above circumstances, upon proof, demonstrate serious criminal violations of the statutes referred to above.

• I represent, at least as the Class Counsel, a number of New York residents who are beneficiaries of these trust(s) and are among the 50,000 + shareholders.

• I know many of these people on a personal basis in addition to being their counsel of record and can attest to their severe and continuing damage suffered and being suffered as a result of the non-distribution and non-receipt of the aforementioned trust assets; some of them are also anxious to visit you in person and describe their continuing outrage.

Demand is hereby made that your office initiate, at the earliest possible time, an investigation into the criminal activities of those persons within your jurisdiction who have contributed to and have otherwise facilitated these criminal acts. I would be happy to discuss these facts with you at your early convenience. Please feel free to contact me directly at: (626) 564-9797. Thank you in advance for your prompt attention to this matter.

A. Clifton Hodges (CSBN 046803)
HODGES AND ASSOCIATES
4 East Holly Street, Suite 202
Pasadena, CA 91103-3900

RELEVANT TEXT FROM OUR REPORT DATED 12TH FEBRUARY 2010
For the convenience of all concerned, the relevant portions of our report dated 12th February 2010 are now appended immediately below. With one exception, no editorial changes have been made by the Editor to the text as originally posted. It will now be appreciated that we could not elaborate on our report dated 12th February until this time:

As we reported earlier, the TAX was deducted from the Settlements monies effective from 31st December 2009. If we assume for current purposes that the Settlement monies aggregate about $14.0 trillion, then tax at 30% yields $4.2 trillion. In our report dated 28th December, we flagged the reported intent to divert $4.0 trillion of public funds [see Archive].

THE TWO SETS OF BOOKS
In order for diversion of funds to be ‘successful’, the source of the funds targeted for diversion must be obfuscated. These professional criminal financiers normally do this by creating two sets of books, which may entail two actual batches of cash, as in this case.

In the report dated 28th December 2009, we identified the second amount of about $4.0 trillion needed for this corrupt purpose. Specifically, it would consist of:

• The difference between the Debt Subject to Statutory Limit of $9,959,850 million for Fiscal Year 2008, which was raised in December 2009, to $12.4 trillion. The difference is $2.4 trillion. The 2010 Federal Budget documentation estimated that the 2010 Debt Subject to Statutory Limit would be raised to $12,843,344 million, representing an increase from the previous cap of $2,884 billion: so there’s another $400 billion in the wings.

• The debt cap of $400 billion previously applicable to the former GSEs (Government-Sponsored Enterprises), Fannie Mae and Freddie Mac, was removed. Therefore, another $400 billion or so of official background debt based on Collateralised Debt Obligations and Collateralised Mortgage Obligations ‘can be’ floated, as the old cap has been discontinued.

• Obama’s 2,000+ page social engineering healthcare legislation will not only create brand new permanent cash pipelines, ripe for diversion by the kleptocracy into Fraudulent Finance trading operations, but will also be financed by an initial $1.0 trillion of ‘seed money’.

THERE’S THE DUPLICATED $4.2+ TRILLION
$2.9 trillion (taking the Statutory Debt Ceiling total estimated for FY 2010) plus $0.4 trillion from the removal of the cap applicable to the former GSEs plus the $1.0 trillion playmoney to be released with the Leninist healthcare legislation, yields $4.3 trillion = the counterpart to the diverted tax monies of approximately $4.2 trillion identified above.

TAX IS PAYABLE WITHIN 45 DAYS MAXIMUM OF PAYMENT
Now although the tax WAS taken from the Settlements monies effective 31st December – so that, as we pointed out, the taxes would be technically applicable to the 2009 calendar year – the hijacked Settlements payments had not been made by the time this report was posted.

Which may explain Clinton’s heart attack [see ‘mainstream’ reports], because:

• Taxes must be remitted within 30 days, plus an extension of 15 days, i.e. 45 days. Now 45 days after 31st December is Sunday 14th February 2010.

• The tax accruals that were taken out on 31st December have not been reflected in the US Treasury’s ledgers because these funds ‘appeared out of nowhere’. If the tax accruals from this source were to have been credited to the Treasury’s accounts, all the fancy creative accounting perpetrated by the Office of Management and Budget would be toast – as would all concerned, because the Treasury Secretary and everyone beneath him would be asked in unison:

‘What is the source of these funds?’

THE TREASURY SECRETARY CANNOT ANSWER THAT QUESTION
Neither the Treasury Secretary nor anyone else in authority can answer that question without lying; and they are not about to come clean and say: ‘The money on which the tax was based represents restitution monies to recompense victims for what officials and office-holders inside successive US Governments stole from them from 1984 onwards’.

THEY DIVERTED THE TAX MONEY, THEN PUT IT OUT
So the criminal financiers in the Treasury did what criminal financiers do: they diverted the money first, and then worked out what to do with it afterwards (in a manner of speaking). When they had decided what to do with the money, they:

• Bunged $100 billion of it to a well-known false-religion outside collaborating party, we’re told.

• Placed the bulk of it into contract: indeed we told you where they would be bunging it: into trading operations involving China Trust Bank (run by the ‘bad’ Chinese), Deutsche Bank, and Barclays Bank. As we know, Deutsche Bank AG is controlled by Dr Joseph Ackermann, who’s a partner in Deutsche AG (aka Barrington Investment Group) with Godfather George H. W. D. V. D. Bush Sr., Mikhail Gorbachëv (Orbach or Korbach), the former Soviet President who maintains a large office inside the Kremlin to this day, and Dr Helmut Kohl, former Chancellor of Germany.

• These are the three leading Illuminated Ones who created the scamming free-for-all stealing-fest with the take-down of the Soviet Union – the precursor to the second leg of the same intelligence operation: the take-down of the United States.

As we have also proved, these gentlemen (Financial Terrorists, rather) handle stolen funds, from which they benefit inter alia through their partnerships in Deutsche AG, St Gallen, Schweitz.

DIVERTED $4.2+ TRILLION WILL BECOME EMBEZZLED $4.3+ TRILLION
The problem here is that the Settlements MUST be paid out by midnight this Saturday, or else:

• The tax monies of approximately $4.2 trillion which have so far been diverted, will become EMBEZZLED FUNDS OVERNIGHT by Sunday morning 14th February 2010, which is to say:

• The criminal financiers holding highest offices will stand accused of having STOLEN $4.2+ trillion (approximately) from the US taxpayer – since these funds should be credited to the US Treasury’s books, and those who have been stealing and fiddling the books should face the consequences (the rest of their lives in jail, or execution at dawn for embezzlement in time of war).

• Alternatively, the diverted tax monies will need to have been recredited to the bank accounts holding the hijacked Settlements funds on 14th February at the very latest.

EMBEZZLEMENT OF $4.2+ TRILLION OF TAXPAYERS’ FUNDS
So, in the prevailing context, if we ask the straightforward question: ‘What are they covering up?’, we wind up with the following answers:

(1): An intent to embezzle $4.3 trillion of tax accruals belonging to the US taxpayer.

(2): If they don’t pay out the Settlements funds by midnight on 13th February 2010, a TECHNICAL DEFAULT BY THE U.S. TREASURY, as well; with the $4.3 trillion of tax monies belonging to the US taxpayer, ‘missing’: a US Government ‘insider’ scandal even bigger than CMKM/CMKX.

APPENDIX:
Former President Mikhail S. Gorbachev, working with former US President George H. W. Bush Sr., former German Chancellor Helmut Kohl and Dr Joseph Ackermann, all partners in Deutsche AG (formerly called Barrington Investment Group), Switzerland, stole a contract using the electronic tag to the securities account owned by Michael C. Cottrell’s Pennsylvania Investments, Inc., with Benchmark Securities, In., New Jersey, at a table-top meeting in Geneva on 7th October 2002 by the means described below, which included the electronic ‘forging’ of Mr Cottrell’s signature.

This theft was preceded by seven related thefts from Mr Cottrell’s firm’s securities account.

This means that former President Mikhail Gorbachev and former German Chancellor Helmut Kohl are financial criminals like George H. B. Bush Sr. and should be treated accordingly. Mr Gorbachev and Helmut Kohl have, as partners in Deutsche AG, by definition been profiting from the theft of Mr Cottrell’s contract and property, and also, as further revealed below, from proceeds from the theft of The Queen’s gold, which, we were informed at 1.15 am on 4th February 2010, have likewise been channelled through Deutsche AG, Switzerland. As of 2nd February 2010 [and as of 2nd March 2010: Editor], The Queen’s gold had not been restored.

• The proceeds of innumerable corrupt transactions involving these characters have been run through the DVD’s main institutions, Deutsche Bank and Dresdner Bank. So what is being exposed is that George H. W. Bush Sr. (CIA/DVD) and Mikhail Gorbachev (Soviet Military Intelligence (GRU) and KGB/FSB) have been ransacking American and non-American victims alike, and running this colossal open-ended racketeering through Germany, with the assistance of the former STASI of East Germany (who are GESTAPO in relabelled clothing). Hence the presence on the scene of STASI operatives such as Eva Teleki, a Swedish opera singer, and other operatives suspected of being continuing STASI agents, such as Chancellor Angela Merkel (the former Secretary of the Agitation and Propaganda Department of the Young Communists at Marx Lenin University, in East Berlin). This explains why Merkel was earlier fingered by this service as guardian in Germany of George Bush Sr.’s stolen and exploited racketeering assets with German institutions.

THE JAILING OF THE FORMER GOVERNOR OF THE BANK OF ENGLAND
In the summer of 2007, we reported that the former Governor of the Bank of England, Lord ‘Eddie’ George, had been arrested and briefly jailed. We further reported that the former Chairman of the Federal Reserve Board, Dr Alan Greenspan, had been arrested and jailed in June 2007 for a limited period of time (it is believed he has in fact been arrested several times). Greenspan served as the financial technician and engineer for George Bush Senior’s financial scamming and stealing ops.

We did not receive a letter from the late Lord George’s solicitors. We published this information in International Currency Review in 2007. Lord George died aged 70 in April 2009.

At 1.45pm on 2nd February 2010, the Editor made renewed enquiries in the course of a telephone call to the United States concerning the scandal of the stealing of The Queen’s gold, which took place during an unnanounced UK banking sector ‘blackout’ on Friday and Saturday 29th and 30th March 2007. In late January 2010, the Editor had re-established from ‘inside’ sources that the gold had NOT been restored. In answer to the Editor’s question on 2nd February, our US party stated:

‘They stole The Queen’s gold in London, not in the United States. Her Majesty can therefore prosecute the perpetrators in Britain and Europe’.

Even as this statement was being made, the transatlantic telephone line was JAMMED, JUST LIKE WHAT USED TO HAPPEN DURING THE COLD WAR. On restoring contact via another phone call, the Editor reiterated to his party what we have had occasion to state many times before: namely, that each time these people interfere with our communications blatantly like this, they simply confirm the accuracy and the direct and immediate relevance of what was being discussed.

The Editor was later informed by the same impeccable source that ‘the former Governor of the Bank of England, collaborating with the US criminals at the highest levels [the Bush/CIA/DVD Crime Syndicate via Greenspan], quote ‘exchanged The Queen’s gold for derivative pieces of paper, which are worthless’. Which explains why we did not receive a letter from Lord George’s solicitors.

It also explains the considerable alarm which arose after the Editor had to sever contact with a US operative on 15th May 2007 who, having been informed by the Editor that ‘the US Government has stolen The Queen’s gold’, arrogantly retorted: I find that hard to believe’.

• GORDON THOMAS: AGENT OF INFLUENCE AND AGENT OF DUPLICITY?
As indicated at the top of this report, Gordon Thomas is the author of the classically duplicitous statement (in the context explained by the Editor above): ‘It doesn’t matter that it’s not true. All that matters is that it’s out there’. Mr Thomas was very happy to convey this information to the Editor, having explained that MI-6 were bearing false witness against the Editor, to ‘make you sit up’.

The Editor duly ‘sat up’ in a manner not anticipated by the rather stupid operatives involved, in that this episode had the effect, as explained, of galvanising the Editor of this service to redouble his efforts to expose the rampant financial criminality that is destroying civilisation worldwide.

But here’s another little trick that Gordon Thomas played on the Editor of this service. Some years ago, the Editor made the mistake of writing an article for American Free Press, not knowing (at the time) that is outfit was the revamped SPOTLIGHT, a notoriously anti-semitic CIA ‘pod’, having the remit of running the anti-semitic compartment of the dialectic. The CIA maintains ‘Black’ cadres targeted at every key element; for instance, the LaRouche operation specialises in attacking the British and blaming Britain for everything. SPOTLIGHT blamed the Jews for everything.

Naturally, these shifty people didn’t pay the Editor the money he was owed for writing the article in question when they should have done; so the Editor appeared physically at their offices to collect a cheque, by prior arrangement. While he was in the office of the controller of this CIA operation, the phone rang. It was some journalist on The Daily Telegraph. This was a set-up: organised by Gordon Thomas on behalf of MI-6. The journalist had nothing much to say, said he would call this Editor the next day and of course never did.

The purpose of this operation was to ‘inform’ The Daily Telegraph staff that Mr Story works with a rabidly anti-semitic organ (untrue), without of course informing the Telegraph journalists that the publication in question is a ‘pod’ of the CIA. And the deeper rationale was to make absolutely sure that the results of this Editor’s truly devastating (for the criminalised intelligence cadres) findings would never receive any coverage in The Daily Telegraph. NASTY.

• Gordon Thomas ‘fixed’ this deception for MI-6

The other day, Gordon Thomas filled a whole page of The Daily Telegraph with an article on the Israeli operation using stolen or fabricated British passports. Since the Editor of this service has personal experience of the duplicitous behaviour of Gordon Thomas, all concerned are advised that any article by this person needs to be considered in the context of his duplicitous behaviour towards the Editor of this service. A journalist who deceives in real life, or acts as an agent for an intelligence service engaged in a deliberate deception operation against a loyal taxpaying patriot, may be liable to deceive in his articles. Since this Editor used to have large op-ed articles in The Daily Telegraph himself in the 1970s and early 1980s, these rather basic toxic facts have a certain resonance that may even penetrate the dark corridors in Vauxhall and Buckingham Palace Road.

The ultimate losers in this particular context will be The Daily Telegraph. This newspaper has failed to cover the biggest criminal finance investigation in history, and is thus in blatant dereliction of its duty as Fourth Estate to hold authorities firmly to account for their systematic flouting of the Rule of Law. We for our part will continue to do just that: official parties that haven’t got the message, in both London and Beijing, cannot expect to be spared the necessary exposures. They won’t be.

LIST OF U.S. STATUTES, SECURITIES REGULATIONS AND LEGAL PRINCIPLES OF WHICH THE CRIMINALISTS, ASSOCIATES AND ALL THE MAIN FINANCIAL INSTITUTIONS REMAIN IN BREACH:

LEGAL TUTORIAL: The Steps of Common Fraud:

Step 1: Fraud in the Inducement: “… is intended to and which does cause one to execute an instrument, or make an agreement… The misrepresentation involved does not mislead one as the paper he signs but rather misleads as to the true facts of a situation, and the false impression it causes is a basis of a decision to sign or render a judgment”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Hauppauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

Step 2: Fraud in Fact by Deceit (Obfuscation and Denial) and Theft:

• “ACTUAL FRAUD. Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.

Step 3: Theft by Deception and Fraudulent Conveyance:

THEFT BY DECEPTION:

• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.

• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.

• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.

FRAUDULENT CONVEYANCE:

• “FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.

• “Conveyance made with intent to avoid some duty or debt due by or incumbent or person (entity) making transfer…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Conveyance’.

U.S. SECURITIES REGULATIONS OF WHICH INSTITUTIONS
HAVE BEEN SHOWN TO BE IN BREACH [SEE REPORTS]:

• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957
• 97-13 Bank Secrecy Act, Recordkeeping Rule for funds transfers and transmittals of funds, et al.

U.S. LAWS ROUTINELY BREACHED BY THE CRIMINAL OPERATIVES AND INSTITUTIONS:

• Annunzio-Wylie Anti-Money Laundering Act
• Anti-Drug Abuse Act
• Applicable international money laundering restrictions
• Bank Secrecy Act
• Crimes, General Provisions, Accessory After the Fact [Title 18, USC]
• Currency and Foreign Transactions Reporting Act
• Economic Espionage Act
• Hobbs Act
• Imparting or Conveying False Information [Title 18, USC]
• Maloney Act
• Misprision of Felony [Title 18, USC] (1)
• Money-Laundering Control Act
• Money-Laundering Suppression Act
• Organized Crime Control Act of 1970
• Perpetration of repeated egregious felonies by State and Federal public employees and their Departments and agencies, which are co-responsible with the said employees for ONGOING illegal and criminal actions, to sustain fraudulent operations and crimes in order to cover up criminalist activities and High Crimes and Misdemeanours by present and former holders of high office under the United States
• Provisions pertaining to private business transactions being protected under both private and criminal penalties [H.R. 3723]
• Provisions prohibiting the bribing of foreign officials [F.I.S.A.]
• Racketeer Influenced and Corrupt Organizations Act [R.I.C.O.]
• Securities Act 1933
• Securities Act 1934
• Terrorism Prevention Act
• Treason legislation, especially in time of war.

• BEWARE OF MALICIOUS IMITATIONS: It has come to our notice that certain websites have been in the habit of copying reports from this site, attributing the reports to the Editor of this service, but at the same time AMENDING AND INSERTING TEXT NOT WRITTEN BY THE EDITOR.

• This is a very old, malevolent US counterintelligence DIRTY TRICK.

Therefore, you should be advised that the GENUINE ORIGINAL REPORT is, by obvious definition, accessible ONLY FROM THIS WEBSITE. If you come across an article elsewhere that is attributed to the Editor of this service, you should refer to the ORIGINAL ARTICLE HERE and you should bear in mind that the illegally duplicated article may contain text that was NOT written by the Editor of this service, but which was inserted for malicious purposes by counterintelligence.

Likewise, although we haven’t yet had time to elaborate this issue, we have taken drastic steps around the world to close off the malicious piracy of our books. One technique used by several disreputable sites (in the United States, the Netherlands and Switzerland) is to copy our title(s) and (a) to display an image of the front cover WITHOUT THE ISBN DATA at the top of the cover; and (b) to DELETE THE COPYRIGHT PAGE. In so doing, the criminal pirates proclaimed that they knew perfectly well that they were/are engaged in theft and can be prosecuted for stealing copyright.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

We are a private intelligence publishing house and have no connections to any outside parties including intelligence agencies. The word ‘intelligence’ on this website and in all our marketing material is used for marketing/sales purposes only and has no other connotations whatsoever: see ‘About Us’ on the red panels under the Notes on the Editor, Christopher Story FRSA, who has been solely and exclusively engaged as an investigative journalist, Editor, Author and private financial and current affairs Publisher since 1963 and is not and never has been an agent for a foreign power, suggestions to the contrary being actionable for libel in the English Court.

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NON-U.S. INTERNET SECURITY SOLUTION CD AVAILABLE: FAR BETTER THAN NORTON ETC
It has now been established that the National Security Agency (NSA) works with/controls Microsoft, Norton, McAfee, and others, in pursuit of the Pentagon’s vast BIG BROTHER objective, directed from the ‘highest’ levels (not the levels usually referred to) which seek to have every computer in the world talk direct to the Pentagon or to NSA’s master computers.

This should come as no real surprise since the cynical spooks even assert this ‘in-your-face’ by advertising ‘INTEL INSIDE’, which says exactly what it means. More specifically, NSA have made great strides in this direction by having a back door built into Microsoft VISTA. Certain computers, especially those labelled with the logo of the ‘fully collaborating’ firm Hewlett Packard, have hard-core setups which facilitate the remote monitoring and controlling of personal computers by NSA, Fort Meade. We now understand that if you are using VISTA* you MUST NOT enable ‘file and printer sharing’ under any circumstances. If you say ‘YES’, so to speak, to ‘file and printer sharing’, your computer becomes a slave at once to NSA’s master computers. DO NOT ENABLE SHARING.

Unfortunately, this abomination is so far advanced that this may not be the only precaution that needs to be taken. As long as Microsoft continues its extensive cooperation with NSA and the NSC (National Security Council), the spying system which assists the criminalised structures, and thus hitherto the Bush-Clinton ‘Box Gang’ and its connections, with their fraudulent finance operations, NSA may be able to steal data from your computer. The colossal scourge of data theft is associated with this state of affairs: data stolen usually include Credit Card data, which the kleptocracy regards as almost as good as real estate for hypothecation purposes. Even so, you can make life very much more problematical for these utterly odious people by NOT USING U.S.-sourced so-called Internet Security and anti-virus software. Having been attacked and abused so often, we offer a solution.

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The familiar US proprietary Internet Security programs are by-products of US counterintelligence, and are intended NOT to solve your Internet security problems, but to spy on you and to report what you write about, to centralised US electronic facilities set up for the purpose. You can now BREAK FREE from this syndrome while at the same time helping us to MAINTAIN THE VERY HEAVY PRESSURE UPON THE CRIMINALISTS WE HAVE BEEN EXPOSING, by ordering this highest quality FOREIGN (i.e., non-US) INTERNET SECURITY SOLUTION that we have started advertising on this website. This offer has been developed in response to attacks we have suffered from the NSA nerds who appear to have a collective mental age of about five years, judging by their output.

• To access details about the INTERNET SECURITY SOLUTION, just press THE LIVE LINK YOU HAVE JUST READ, or else press SERIALS in the red panel below. This opens up our mini-catalogue of printed intelligence publications. Scroll right down to the foot of that section, where you will see details of this service. When you buy this special product, you will also, as we clearly state above, be paying a special premium by way of a donation to help us finance these exposures.

The premium contains a donation for our exposure work and also covers our recommendation based on the Editor’s own experience that this INTERNET SECURITY SOLUTION will make your Internet life much easier. The program has an invaluable ‘Preview before downloading’ feature.

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BUSH SR. AND CLINTONS TRY TO EXTORT 10% OF GROSS

KISSINGER, GREENSPAN TAKE THE DIRTY MONEY AND RUN: OBAMA THREATENED WITH PHYSICAL HARM BY THE RUTHLESS, ARROGANT BUSH-CLINTON CRIME GANG

Tuesday 26 May 2009 01:00

STORY’S LAWS PROLIFERATING [01 JUNE 2009]:
While we gather intelligence for the next report, certain current developments have prompted the fashioning of Story’s Law #4. This is appended immediately below the existing three Story’s Laws:

Story’s Law #1: ‘All organisations are run for the benefit of those running the organisation’.

Story’s Law #2: ‘The interests of the supplier and the consumer diverge’.

Story’s Law #3: ‘Sooner or later, all covers and operations are blown’.

Story’s Law #4: ‘The one sin in the banking underworld for which no forgiveness is possible, is for a crook to steal what his fellow criminal operatives have already stolen’.

MISPRISION OF FELONY: U.S. CODE, TITLE 18, PART 1, CHAPTER 1, SECTION 4:
‘Whoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some Judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both’.

WORLD WAR IF MATTERS ARE NOT SETTLED
During the review period, the Editor happened to mention to two highly intelligent and well informed people with whom he is in contact, that the financial Settlements issues HAVE to be resolved ‘because if they are not resolved, there will be a World War’.

• Neither person disagreed with this assessment.

• SUMMARY OF RELEVANT FACTORS FROM THE REPORT DATED 7TH MAY

• THE CRIMINAL COTERIE OF FIVE HOLDING THE WORLD TO RANSOM

• KISSINGER AND GREENSPAN TOOK THEIR MONEY AND RAN

• BUSH SR. AND HILLARY CLINTON ORDER NON-PAYMENT OF FUNDS

• PRESIDENT OBAMA THREATENED WITH PHYSICAL HARM

• ELABORATION OF THE FOREGOING INTELLIGENCE

• SPECIAL MEETING IN ERIE, PA, ON 15TH MAY, AND ITS SEQUEL

• MASSIVE 10% EXTORTION PAYMENT DEMANDED BY BUSH SR. AND THE CLINTONS

• FINANCIAL TERRORISM COUP D’ETAT IN PROGRESS IN AMERICA

• REPORT THAT BUSH SR.’S PASSPORT HAS BEEN CONFISCATED

• PROOF THAT THE CIA WORKS WITH THE MAFIA

• BARROSO PAEDOPHILIA EXPOSURE BY THIS SERVICE BARRED IN PORTUGAL

• THE NEW CHENEY-LINKED MONEY-CHASING DIMENSION

• NEW PONZI SCHEME TO MOBILISE DOLLARS FROM NAÏVE U.S. INVESTORS

• ANATOMY OF CLASSIC PRIME BANK INVESTMENT PONZI SCHEMES

• THE OBJECTIVE: TO STEAL THE INVESTOR’S FUNDS

• DETAIL OF THE NEW CHENEY-LINKED DOLLAR-COLLECTION SCHEME

• SOLVERAS INC., A NEW CIA MECHANISM FOR STEALING FUNDS?

• The Subs/Books Update Panel on the Home Page was updated at 8:00pm UK time on 22nd May 2009 to provide comprehensive details of all issues of our intelligence services published during the first five months of 2009, including the latest issue of our Global Analyst (Volume 3, #2). Soviet Analyst, Volume 31, #1 is ‘on machine’ at our print works and will be delivered soon. It will contain proof that the Soviet Union remains in existence, or certainly did as late as March 2001, a decade after it was said to have vanished into the trashcan of history. No surprise, but nice to prove it.

• BOOKS: Edward Harle Limited has so far published FIVE intelligence titles: The Perestroika Deception, by Anatoliy Golitsyn; Red Cocaine, by Dr Joseph D. Douglass, Jr.; The European Union Collective, by Christopher Story; The New Underworld Order, by Christopher Story; and The Red Terror in Russia, by Sergei Melgounov. All titles are permanently in stock. We sell books DIRECT.

• Globalist hegemony ideology and practice are comprehensively debunked in the Editor’s study entitled The New Underworld Order, which can be ordered via the books section of this website. If you want to see what may well happen if the angle of decline steepens much further, you could do worse than also order a copy of The Red Terror in Russia, by the contemporary Russian eyewitness Sergei Melgounov, another Edward Harle Limited book available direct from this website. Also, the Editor’s study entitled The European Union Collective, which proves that the EU is a long-range strategic entrapment operation to reduce European countries to satrap status within a German empire using economic strategy for relentless economic warfare purposes, can be bought here.

• Please Make a Donation, if you feel able to do so, to help finance Christopher Story‘s ongoing global financial corruption investigations. Your assistance will be very sincerely appreciated and will make a real difference, hastening the OVERDUE resolution of the worst financial corruption and linked financial fallout in world history. Just press Make a Donation, which is live, and it takes you straight to our ultra-safe ordering system, which accepts Visa and MasterCard.

• The Editor’s $35,000 Wanta bail-out money has been stolen.

• See the second white panel for details of our latest distributed intelligence publications.

• ADVERTISEMENT: Details of the Internet Security Solution software offered by this service in conjunction with a donation are appended at the very foot of this report, below the legal data. See also the catalogue by clicking on World Reports Limited and scrolling down to the bottom.

By Christopher Story FRSA, Editor and Publisher, International Currency Review, World Reports Limited, London and New York. For earlier reports, press the ARCHIVE. Order your intelligence subscriptions and our ‘politically incorrect’ intelligence books online from this website.

THE SOLUTION TO THE CRISIS THAT HAS BEEN AVAILABLE ALL ALONG:
Operating the $ Refunding from London without US Government participation delivers:

(1) Massive ongoing windfall tax accruals to the BRITISH Treasury given that all funds resident in the United Kingdom jurisdiction for 24 hours are taxable by the Inland Revenue. This makes the UK Refunding proposal of extreme interest to Her Majesty’s Government and the UK Treasury.

((2) Massive ongoing windfall benefits to the UNITED STATES Treasury given that it will also receive a cascade of tax accruals from this independent private sector Refunding Program.

(3) The necessary refinancing of the UK and US banking systems ON THE BOOKS with no input from either Government and NO CORRESPONDING DEBT CREATED IN THE BACKGROUND.

(4) GOOD (i.e., on-balance sheet, taxed) money which will CHASE OUT THE BAD MONEY that the crass US Fraudulent Finance concoction will generate.

NEW REPORT STARTS HERE:

EXECUTIVE SUMMARY
In this analysis, we will jump from our report dated 7th May, to the weekend of 23rd/25th May 2009, omitting a ‘diary’ that had been planned, as those developments have been overtaken by events; and we will present information which not only reveals the state of play in late May 2009, but further emphasises that, as we have frequently asserted, the world is confronted with a prospectively terminal SYSTEMIC CORRUPTION CRISIS, rather than with a supposedly ‘neutral’ breakdown of the international financial system. It is also variously reported directly to us, that between 400 and 500 bankers were arrested during the past week or so alone.

What has happened and is happening, as the plug has been well and truly pulled on the Workers of Darkness, reflects an almost total collapse of moral guidelines – which can be clearly seen in the format of the sordid crisis at Westminster (to be addressed in a separate report, emphasising that these MPs have been receiving so far untaxed ‘benefits in kind’ which are taxable for the rest of us), and other decaying dimensions of Godless human life – such as the promulgation of a filthy film at the Cannes Film Festival called ‘Antichrist’, a monument to ‘in-your-face’ depravity driven by the incredible Sufist-Sabbatian ‘line’ that the sooner the whole world descends into hell on earth, the sooner will the Messiah ‘return’. This demonic, upside-down madness is dissected in the very latest issue of our journal, Global Analyst, distributed worldwide on 22nd May 2009 (1).

It is symptomatic of the collapse of morality and the arrogant ‘Do as Thou Wilt’ mentality which has enticed holders of high office, bankers and intelligence operatives to flout the law in the perverse expectation that their unjustified impunity will continue uninterrupted – a facile expectation that is destined to be, and is in the process of being, comprehensively disappointed.

SUMMARY OF RELEVANT FACTORS FROM THE REPORT DATED 7TH MAY
In our report posted on 7th May from New York, we stressed that the international enforcement team, travelling on diplomatic passports, that arrived in the United States at the end of April 2009 in order to apply the Writ of Enforcement issued by the World Court which was served on President Obama – when (as we now understand) he was escorted by reliable ‘special’ senior UK intelligence officers into the presence of Her Majesty The Queen on 1st April – cannot cease and desist, until they have procured the necessary outcome.

Specifically, the ‘enforcers’ (who have since been reinforced: see below) are required to procure execution of the Writ by all means available to them – by which is meant that NOTHING whatsoever is precluded, including ‘horizontalisation’ by shooting, arrests, the removal of passports, and other measures appropriate to an international crisis of this magnitude.

We also pointed out that ALL, including the President of the United States, the Treasury Secretary, the Secretary of State, the Director of Central Intelligence (reported at this writing to be ‘on the run’ or in hiding from the ‘enforcers’), together with bank officials from the top down, who continue to impede the payouts, are automatically considered to be engaged in the obstruction of justice, whatever explanations they may proffer for their failure to deliver the necessary outcome, and are therefore vulnerable to a direct response from the ‘enforcers’: see above.

Since the (reinforced) ‘enforcers’ – consisting of Chinese, Swiss and British cadres – MUST deliver execution of the Writ, otherwise they will all themselves be liable to be indicted and arrested for failing to fulfil their standing orders – to say we’re ‘down to the wire’ would be an understatement.

But it gets much worse, as will now be explained.

THE CRIMINAL COTERIE OF FIVE HOLDING THE WORLD TO RANSOM

KISSINGER AND GREENSPAN TOOK THEIR MONEY AND RAN
Since we last reported, it has been reconfirmed that the five most egregious criminal operatives who are perpetuating ECONOMIC AND FINANCIAL TERRORISM against the United States, the much abused American people and the Rest of the World, are/have been the following snakes: Former President George H. W. Bush Sr., Dr Henry Kissinger, Dr Alan Greenspan, former President William Jefferson Clinton-Rockefeller, and Mrs Hillary Rodomski Clinton, the US Secretary of State.

Within the reporting period and very recently, Dr Henry Kissinger, who emerges clearly as the top DVD (Deutsche Verteidigungs Dienst, Dachau) coordinator, and Dr Alan Greenspan, wisely TOOK THEIR DIRTY MONEY AND RAN.

These two snakes are therefore ostensibly ‘out of the picture’, in that they are no longer standing in the way of the Settlements – being canny Jews who understood clearly that they had better get out from the line of fire, to avoid immediate ‘horizontalisation’, as they would be very likely to be ‘neutralised’ BEFORE the remaining three top criminals.

After all, a bird in the hand is worth two in the bush, or whatever: why hang on, when untold riches are poured into your lap? Hence, all of a sudden, the often-arrested Dr Greenspoon has now felt free to resurface again more prominently, delivering little self-serving homilies for the benefit of the craven international financial community on the global crisis, what needs to be done about it, and why paying attention to this crook is in everyone’s interest.

He thinks he won’t be re-arrested any time soon.

Since it remains the case that a sizeable proportion of the international financial community have STILL not understood the crime-driven background to this crisis – although, given the way the Editor was conspicuously avoided by certain national officials during the IMF/World Bank Spring Meetings in April, one cannot rule out that they do ‘get it’ but are fearful of being exposed by this service – hitherto-unarrested bankers and other financial market participants, and of course the craven Financial Times, continue like ‘Useful Idiots’ to pay attention to what this Greenspoon rogue sees fit to pontificate. These people find it convenient to keep their heads in the sand.

• It is doubtful whether they will be able to maintain that self-serving posture for much longer.

BUSH SR. AND HILLARY CLINTON ORDER NON-PAYMENT OF FUNDS
Seemingly oblivious to the glaring fact that they risked imminent ‘horizontalisation’, determined to maximise the potential for accruals from further illegitimate trading of the hijacked funds (unlike Kissinger and Greenspan), and driven by greed on a scale without precedent in human history, the three remaining US giga-criminals participating in the ‘Group of Five’ perpetrators of high financial and related crimes and misdemeanours, Bush Sr., and the Clintons (with intermittent participation by Bush Jr.), are now engaged in open defiance not only of the United States, the American people and the Rest of the World, but also of President Barack Obama – whom the CIA is blackmailing inter alia via the ‘usurper’ operation, which is being allowed to gather ever greater momentum so as to destabilise his legitimacy, thereby supposedly perversely ‘justifying’ the criminal behaviour of the top economic and financial terrorists themselves.

• FACT: The PURPOSE of this operation is to OBFUSCATE the legitimacy of the President, thereby in turn supposedly obfuscating his Executive Orders and everything else that he does, so that the crooks can (as they planned it) continue their illicit fraudulent finance and trading operations ad nauseam. THAT IS THE UNDERLYING RATIONALE FOR OBAMA’S PRESENCE ON THE STAGE.

• WE HAVE NEWS FOR THESE PEOPLE. THEY WON’T GET AWAY WITH IT…

PRESIDENT OBAMA THREATENED WITH PHYSICAL HARM
Because on or about 22nd May 2009, the following developments were reported to this service, all of which are ‘authorised’ for release via this report:

• President Barack Obama had either re-issued or reconfirmed an Executive Order compelling the Director of Central Intelligence (CIA), Leon E. Panetta, to implement the Executive Order obliging Bank of America to release the ‘Settlement funds’ to the Trustees (or to release the funds already placed in the relevant Trustees’ accounts as previously reported) for immediate distribution to the intended legitimate designates and beneficiaries.

• Upon learning of this development, former President George H. W. Bush contacted the former President William J. Clinton and US Secretary of State Hillary Clinton (who earlier had been caught in flagrante in Baghdad trying to divert the Katrina funds: see detail below), ORDERED them to STOP the execution of the Executive Order, and demanded NON-PAYMENT OF THE FUNDS.

• COMMENT: For all we know, Bush Sr. may have argued that Executive Orders issued by Barack Obama are illegal. WE EXPECT CONFIRMATION OF THIS DIMENSION AT ANY MOMENT…

• Former President Bush Sr. told the Clintons: ‘We are making money (on these illegally blocked funds – Ed.) and we are going to continue making money on them until August 2009’. This language has been SPECIFICALLY CONFIRMED to us.

• US Secretary of State Hillary Clinton then likewise ORDERED CIA Director Leon Panetta to STOP implementation of the Executive Order. Panetta is head of the CIA, of which Mrs Clinton is a lower-ranking operative: so this ‘order’ made no sense whatsoever in terms of ranking.

• COMMENT: if Mrs Clinton used the same argument as Bush Sr. may have used, then her own appointment is illegal and she has no right to issue such instructions (which is the case anyway).

• Bank of America, the CIA’s bank, accordingly TWICE refused to release the funds, in direct confrontations with top Trustees and US authorities.

• President Barack Obama has of late been directly or indirectly threatened with physical harm by operatives ‘working for’ Bush Sr. and the Clintons, should he ‘interfere’ with this illegitimate ‘policy’ or issue (re-issue) another Executive Order demanding the prompt release of the funds originally held within the Custodial Accounts of US money center banks with JPMorganChase and Deutsche Bank (Frankfurt, Germany). Recall that JPMorganChase acquired the clearing facilities of Deutsche Bank (which serves the global interests of the Nazi Strategic Deception Continuum, DVD, headed by Dr Kissinger and George Bush Sr.).

• FACT: When Mrs Clinton visited Baghdad, ostensibly ‘to hold a town meeting’ but in practice to move the stolen Katrina funds, she was shocked to be greeted at the bank by a GOLD BADGE who informed her that not only had she therefore been caught IN FLAGRANTE trying to move stolen funds, but also that the stolen Katrina funds had already been identified and moved. This episode was reminiscent of the occasion in the late 1990s when this Jezebel went down to Crozier Bank in Grenada, which she reportedly relieved of $500 million. When the since imprisoned (‘for a very long time’) ONI operative Lt. Delmart Mark Vreeland and three other operatives visited the bank, which later collapsed, to establish what had happened, the video tape covering the period during which Mrs Rodomski C. was present at the institution, was found to be blank.

ELABORATION OF THE FOREGOING INTELLIGENCE
An Affidavit submitted by the US securities expert, Michael C. Cottrell, B.A., M.S., on 3rd March 2009 via the Editor of this service for the attention of the highest levels in the United Kingdom, detailed a transparent and effective, fully above-board plan to resolve the derivatives (toxic asset/‘legacy’) instruments so as to remove them from the balance sheets of the world’s financial institutions – an indispensable prerequisite for sound and stable resolution of the global financial, economic and criminal finance crisis, without which no progress will be made.

• FACT: The forgoing financial criminals and their jealous associates are DESPERATE to BLOCK implementation of this Plan, which will allow good (viz., taxed’, on the books), money to supplant dirty off-balance sheet money generated surreptitiously along the lines preferred and intended by the giga-crooks referenced above.

This formula, which has been publicised in outline on this website and in our financial journal International Currency Review, is recognised by authorities to represent THE SOLUTION, being based upon the original Approved fully taxable and 100% transparent Refinancing Plan that was sanctioned by the Group of Seven Financial Powers and endorsed by her Majesty The Queen in 2007 and 2008. The requisite London-based infrastructure is being created, to implement the Plan.

This transparent Plan was approved by Her Majesty and her special advisers as representing the ONLY method that can be relied upon to ensure the restored soundness of the world banking and financial communities, by liquefying the banks legitimately ON THE BOOKS and thus restoring order to the financial markets and preventing the slump which is imminent if this Plan is delayed much longer. (At least five million US foreclosures are pending for later this year, while various US instrumentalities are believed to have accumulated a portfolio of at least half a million foreclosed properties that they cannot sell and which therefore imply a further leg of the pending downwave).

We are informed, via special channels, that this Refunding Plan was discussed by Her Majesty the Queen and President Obama during the special private meeting between the two Heads of State that preceded the Group of Twenty Meeting held in the London area on 2nd April. (It was against that background that disgruntled US operatives put out the eccentric, petulant disinformation ‘line’ that President Obama would not be attending the G-20 Meeting and would go sightseeing at the Tower of London, instead).

• FACT: There are very few people in the world with the expertise necessary to orchestrate and implement the Refunding Plan in question. Michael C. Cottrell, B.A., M.S., is one of these few. The London operation will be a closed-end securities trading firm, with NO CLIENTS.

SPECIAL MEETING IN ERIE, PA, ON 15TH MAY, AND ITS SEQUEL
On 11th and 12th May 2009, the Editor of this service visited Michael C. Cottrell, B.A., M.S., at Erie, PA, for meetings about this Plan and further exposures of the financial corruption. On 14th and 15th May (culminating in a prolonged meeting held on Friday 15th May 2009), irrefutable confirmation of aforementioned acceptance and endorsement was again evidenced.

• Immediately following this meeting:

• Additional international (Chinese, Swiss and British) enforcement personnel were ordered to travel forthwith to the United States over the following weekend to procure the orderly and legitimate execution and release of the hijacked funds.

In fairness, it is hereby confirmed that this measure was specifically initiated by US authorities in order to indicate internationally that the US Government remains intent on financial recovery (in the face of the intransigence of the remaining criminalist ‘Group of Three’ and rogue elements within the Central Intelligence Agency (CIA), the National Security Council (NSC) and the National Security Agency (NSA)). [Note: We cannot get drawn here into debating the obvious corollaries to the foregoing: but it should be borne in mind that a ‘blackmail card’ (the ‘Swine ’flu’ operation) has already been deployed, greatly weakening the blackmailers. Many other questions are begged which cannot be profitably addressed at this stage of the crisis].

MASSIVE 10% EXTORTION PAYMENT DEMANDED BY BUSH SR. AND THE CLINTONS
On 21st May 2009, the ‘Group of Five’ (which is now suddenly again referred to incongruously as the ‘Freedom Corporation’) consisting of the five aforementioned DVD-linked criminalist traitors, financial terrorists, saboteurs and their associates, ordered CIA Director Leon Panetta, as we have seen, NOT TO EXECUTE an existing Presidential Order to initiate actual RELEASE of the funds to the Trustees. This criminal ‘INSTRUCTION’ was accompanied by a brazen demand for a colossal EXTORTION PAYMENT representing a percentage of the GROSS AMOUNT to be released, of at least 10% (plus or minus) – in response to which demands, the CIA Director, Leon Panetta (now justifiably in fear of his life) STOPPED THE PAYMENTS.

This inappropriately named ‘Freedom Corporation’ (meaning ‘Slavery Corporation’) has additional ties to the Clintons via Stephens, Inc., a US Securities Dealer located in Little Rock, Arkansas, and at 245 Park Avenue, in Midtown New York City. Warren A. Stephens is Chief Executive Officer, Stephens, Inc., and also Director of Dillards (department stores) and Co-Chairman of SF Holdings Corporation, Little Rock, AK. Also involved and related, here, is former US General Wesley Clark, the Managing Director of Sf Holdings (Little Rock, AK), and Sf Holdings, LLC, located at 200 North LaSalle Street, Chicago, IL; and: Sf Holdings Ltd, Cayman Islands.

As will be elaborated upon below, the former Bush II Vice President, and ongoing criminalist intelligence operative Richard B. Cheney, who is furious that he is NOT being paid, has initiated and developed his own rogue operation to gather US investors, via the financial operative David Frazier, based in Fort Meade, MD, to suck in sufficient US dollar funds from gullible US investors, or via Ponzi-style repayable ‘subscriptions’, to be able to exchange the massive Euro-denominated holdings accumulated in the context of the Fraudulent Finance operations and thefts over which Cheney presided when in office, that are located in the Middle East and Switzerland, so as to be able to extract a profit of at least 15% NET for the benefit of Cheney and his cronies, representing ‘his’ portion of the corrupt Halliburton and oil monies, bringing these proceeds onto the books as ‘clean and cleared’. Such discounting of the US dollar represents a criminal operation.

This programme is being initiated via identified Ponzi schemes directed at naïve US investors (see below) who have not yet realised, or else refuse to accept, that the 320,000 victims of ‘prosperity’ and ‘humanitarian’ operations have all been scammed like the Madoff and Stanford et al. victims.

FINANCIAL TERRORISM COUP D’ETAT IN PROGRESS IN AMERICA
What this boils down to – and what US authorities have SPECIFICALLY ASKED US TO EMPHASISE – is nothing less than a creeping coup d’état by instalments, perpetrated by the following notorious, despicable FINANCIAL TERRORISTS contrary to the instructions of President Barack Obama, who is attempting to avoid obstruction of justice but who, for as long as execution of the Writ remains unfulfilled, is implicated in precisely that crime – just as the ‘enforcers’ are bound by their Standing Orders to procure execution of the Writ on pain of arrest themselves, for obstructing justice:

• Former President George H. W. Bush Sr., the most dangerous and ruthless bribery operative, serial criminal, murderer and extortionist in the world.

• Former President George W. Bush (although separate reports assert that he is no longer directly involved: however as he held up the Settlements for years, he is in the same category as his evil father. The correct interpretation, we understand, is that Bush Jr. is ‘in and out’ of the situation, reflecting the involvement of Cheney referenced above and below).

• Former President William Jefferson Clinton, who ‘works for’ George Bush Sr.

• The US Secretary of State, Mrs Hillary Clinton, ditto.

• The CIA Director of Central Intelligence, Leon Panetta.

• The US Treasury Secretary, Timothy Geithner.

From which it is concluded, and we are REQUESTED to publicise, that:

(1) A private group of economic and financial terrorists and extortioners has usurped the elected Government of the United States (with the question of whether the President of the United States is ‘legitimate’ deliberately interposed by prior design so as to confuse the issue – the pretext for disobeying Executive Orders being, no doubt, that President Barack Obama’s own legitimacy is in question. Very clever, very cynical, and DOOMED TO DEFEAT AND FAILURE: see above).

(2) Notwithstanding what is stated in (1) above, this private and illegitimate group of economic and financial terrorists has directly or indirectly threatened physical harm to the elected President of the United States.

(3) We are now authoritatively and specifically informed that this evil private group of economic terrorists has every intention to induce a world-wide financial implosion and deep depression by amassing trillions of off-balance sheet US dollars, while intentionally failing to take the necessary steps to prevent a US economic collapse (one cause of which will be the inadequacy of the US tax intake) – by continuing to impede the release of the hijacked funds to the legitimate beneficiaries, in defiance of the World Court, the President of the United States, and the all-important interested party, Her Majesty The Queen.

(4) We are also requested to confirm that this operation is now viewed as being INTENTIONAL, not ACCIDENTAL (that is, induced exclusively by greed, graft and bribery), and is aimed at the ultimate destruction and collapse of US Constitutional Government by means of the perpetuation of fraud, deceit and treason against the United States and the American people.

In this connection, it does not surprise us that Leon Panetta was reported to us on 24th May to be escaping the attention of the ‘enforcers’, in hiding or ‘on the run’.

Now what usually happens when we publish such verified intelligence is that the named perpetrator suddenly resurfaces in public, the objective being to discredit such reports.

Obviously, following the games played earlier along these lines by Paulson and Cheney, we and others are wise to this little game now. If Panetta resurfaces, please note that our report that he has been trying to escape the attentions of the ‘enforcers’, will NOT be invalidated.

Earlier, on 22nd May, Panetta was reported to have informed CIA operatives, prefacing his remarks with the weasel phrase ‘Let me be clear about this’, that ‘it is not CIA policy or practice to mislead Congress. That is against our laws and our values’. When officials or elected representative use the phrase ‘Let us be quite clear about this’, it heralds an imminent obfuscation. In this instance, Panetta stated that it is ‘not CIA policy’ to lie to Congress, which of course does not preclude lying to Congress, as the CIA, which specialises in deception, can set aside its purported ‘policy’ at any time. Likewise for ‘practice’: there can be numerous exceptions.

As a long-serving former Member of the House of Representatives, this practiced liar is perfectly well aware that the CIA (the criminal Intelligence Power) has a notorious history of deceiving and dissembling to Congressional intelligence committees. Examples are listed under Note (2) below.

REPORT THAT BUSH SR’S PASSPORT HAS BEEN CONFISCATED
On 24th May, we were advised that former President George Bush Sr. was ordered to hand over his passport. Although we cannot confirm this, it is likely that this demand will have been made in the context of a threat of lethal force.

Bush Sr. was also informed that if he or his associates intervene AT ALL in the payment completion process, he (Bush Sr.) will be arrested at gunpoint and conveyed to Europe (on Tuesday, 26th May, we were told), where he will be dealt with in accordance with the demands of the issuers of the Writ of Execution. When these reports were checked with authoritative official sources, THEY WERE NOT DENIED. Normally, when no official denial of such a report is forthcoming, it means that such information is not permitted to be explicitly confirmed, but that the lack of denial can be taken, at the Editor’s discretion, as signifying confirmation by default.

PROOF THAT THE CIA WORKS WITH THE MAFIA
A hand-drawn diagram that the Editor has obtained by legitimate means on the open market showing how ‘Secret Principals’ moved/move gold bullion stolen from Far Eastern locations for resmelting, shows that the CIA handled/handles banking and depository arrangements, while the Mafia is specifically entrusted with providing ‘international delivery protection services’. The removed (stolen) resmelted gold is typically delivered to bank vaults, assigned country recipients and others, and for assaying by Johnson Matthey, via Brinks, and selected controlled airlines and shipping lines, while the unsmelted gold is delivered to:

• The First Federal Silver and Gold Smelting Plant in Miami, Florida.

• The Iron Mountain Depository, United States.

• The Gold depository at Kloten Airport, Switzerland.

• The Bank of England.

BARROSO PAEDOPHILIA EXPOSURE BY THIS SERVICE BARRED IN PORTUGAL
It will be recalled that in our exposure of DVD (Deutsche Verteidigungs Dienst, Dachau) operations published on 20th September last year, we revealed that little Madeleine McCann was the child chosen by the President of the European Commission, Sr. Jose Manuel Barroso, out of the three children offered by the paedophile ring servicing the decadent and corrupt European structures.

Very recently, a Portugese correspondent informed us that while reports on this website are accessible in Portugal, the report containing this intelligence is not accessible there.

Separately a source has reported that this website is accessible in the international hotels in China, but not elsewhere. Both pieces of information are extremely revealing, don’t you think?

THE NEW CHENEY-LINKED MONEY-CHASING DIMENSION
Recall that when American officials who are intelligence operatives leave their posts, they remain intelligence officers and therefore continue the operations with which they were involved while holding public office. This explains why George Bush Sr., the Clintons and former Vice President Richard Cheney, continue to menace the world as they did when in power. Since Hillary Clinton is more senior within the CIA than her CIA husband, she cracks the whip (or purports to do so) these days, on the mistaken assumption that she remains ‘protected’ as a criminal intelligence operative.

On 24th May 2009, The Observer (London) devoted two whole pages to the resurfacing of Mr Cheney, a development which impressed gullible media types during the preceding week, after Cheney spoke at the American Enterprise Institute (AEI) at 10:30 am on 21st May, 20 minutes after President Obama was scheduled to speak at the National Archives. In his speech, carefully timed to obliterate Obama’s, the former MK-Ultra chief and sinister , ‘perfectly possessed’ operative Richard Cheney characterised President Obama as ‘a danger to the American people’ and attacked Obama’s policy on Guantanámo Bay and interrogation with torture.

Cheney appears to be comfortable that he can stick his neck out, since, for instance, he has never been arrested or indicted over the vast, grotesque criminal, war-profiteering operations that he controlled, such as the Halliburton scamming offices installed inside the CIA and the Pentagon, which orchestrate consecutive rip-offs of the US taxpayer, such as that notorious order for 1,000 toasters at a price of nearly $1,900 each when the cost of one toaster at a local hardware store in the United States was less than $20.

[See our huge report on this subject dated 26th May 2008: ‘How Bush, Cheney ripped off the CIA and the Pentagon: Halliburton scamming operations set up inside both organisations’].

But The Observer did have this to say:

‘The man who never talked [while in office] has become the man who won’t shut up. The man who wouldn’t list his office in the Federal jobs directory, who had the ex-Vice President’s residence blocked on Google Earth, who went to the Supreme Court to keep from revealing which Energy executives helped him write the nation’s energy policy, is now endlessly yelping about how Obama is holding back documents that should be made public’.

So what is really going on?

The answer is that Cheney is grandstanding, all of a sudden, NOT because he is in the slightest concerned about the issues he purports to be concerned about, but because he has been cut out of the settlements and is, instead, engaged in an emergency operation to mastermind the recovery of the Euro-denominated assets that he stashed abroad when ransacking the United States along with, and in competition with, the Bush Crime Family during his years in overt power.

The pressure he is suddenly exerting on President Obama, to the plaudits of gullible US and UK journalists and of the knee-jerkers within the discredited Republican Party, represent a ratcheting-up of the operation against Obama that is being presided over by the CIA, George Bush Sr. and the Clintons – even though Mrs Clinton is of course subordinate to the President, who can sack her at any time, which is what he should do (if she survives).

NEW PONZI SCHEME TO MOBILISE DOLLARS FROM NAÏVE U.S. INVESTORS
Most sensible people would have thought by now that:

(a) The hideous US Intelligence Power might have ‘got the message’ that its inordinate greed and usurped power is a menace to the Republic which even ‘white hats’ (if any such exist) within the Agency can appreciate; and:

(b) Private US investors would have been on guard against US get-rich-quick pyramid Ponzi schemes, given the devastation inflicted by Bernard L Madoff, Stanford, and the myriad other sheister operations feeding the Bush Crime Family ‘Freedom Group’ Octopus.

Given the wider realisation, since Madoff, that these schemes are not only designed to part victims from their funds, or carry a heightened risk of doing so, but are all illegal in one way or another, that would be logical. But most sensible people appear to be wrong.

Because, all of a sudden, on 10th May 2009, a US journalist and promoter who has systematically ignored everything that we have published as these exposures have gained in prominence in recent years, launched a new variant on the classic Ponzi-related hassling operation designed to part investors from their money, which is directly related to Cheney”s ‘predicament’.

As will be demonstrated, such newly triggered operations, all of which may tempt naive targeted investors to breach the ‘Prudent Man Rule’ [see the preceding analysis] and may further entail participants themselves in running the risk of winding up in jail for aiding and abetting and co-conspiring in wire fraud and in fraudulent transactions designed to discount the US dollar, have suddenly surfaced at this juncture because Cheney is desperate to convert the accumulated Euros stashed in Switzerland and the Middle East, into profit, and to launder them onto the books of the money center banks, in order to ‘pre-empt’ the London operation specified in outline above.

The particular new operation that we have identified is quite carefully crafted to dodge the SEC regulations because what is being sold is ‘a subscription’. In the United States, the crime of wire fraud is widely employed by prosecutors and courts to ‘take down’ promoters of financial frauds who market their offers across State boundaries. In this case, on the face of it, a subscription is being offered, so ON THE FACE OF IT, the scheme is not fraudulent – although when examined more closely, it crosses the line and turns out to be precisely that.

Wire fraud is a crime that is peculiar to the United States, and it carries a mandatory jail term of 20 years and a $250,000 fine per count [Title 18 U.S.C. Section 1343]. The language usually employed by prosecutors typically states that the perpetrator…

‘having devised and intended to devise a scheme and artifice to defraud and to obtain money and property by means of false and fraudulent pretenses, representations and promises and for the purpose of executing an above-described scheme and artifice, did knowingly transmit and cause to be transmitted by means of known wire communications in interstate and foreign commerce certain sounds, signals and writings, either sent from or received within the [district or State], to wit: all in violation of Title 18, United States Code, Section 1343’.

In order to understand the thinking behind routine financial frauds, we can do worse than examine, in brief outline, how the classic ‘high-yield investment program’ US financial fraud Ponzi schemes operate. This detail is interpolated here in order to illustrate a crucial point: that the new Cheney-serving operation(s) described below, imply a degree of desperation – as much smaller amounts are being targeted than is typically the case with classic bank fraud operations described herewith.

• FACT: The reason that Cheney and associates are targeting SMALL MONIES is that ALL THE BIG MONEY THEY HAVE STOLEN, HAS BEEN FROZEN.

ANATOMY OF CLASSIC PRIME BANK INVESTMENT PONZI SCHEMES
With the classic big-money frauds, claims are usually made (as is the case with the new wave of smaller-money schemes) that only a privileged few are invited to participate in the trading of some form of asset which may include a bank security such as guarantees, notes, stocks or debentures which can be bought at a discount and traded or sold through a series of purchases to an end-purchaser who has already agreed to pay a price greatly in excess of the original purchase price – these end-purchasers usually being referred to as commitment holders. The person who originally handled these trades is usually referred to as a trader licensed or authorised by the US Federal Reserve. Perpetrators of such schemes often insist that there is a limited number (usually five to seven) traders and commitment holders in the world, and that only the top ten, 25 or 50 banks in the world are involved in these trading programs. These banks are referred to as ‘prime bank’, from which the schemes take some of their names.

Prime bank investment frauds involve the placement by the investor of very large sums, whereas the new wave of Ponzi schemes is, by contrast, concerned with attracting much smaller sums (of up to $1.0 million). But to continue explaining here how Prime Bank Investment Frauds operate (as the underlying fraudulent intent and methodology does not vary), the investor is asked to invest a large sum, told that his funds are absolutely safe (an assurance which should act as a red flag to anyone not consumed by greed), and never liable to be at risk.

The investor is usually further asked to provide a Letter of Intent, a Non-Solicitation Agreement, a Confidentiality Agreement, a Non-Circumvention Letter, a Bank proof of Funds, a Client Information Summary, and (invariably) a copy of the investor’s passport. The investor is then told that he must go through ‘Compliance’, to be conducted by the Federal Bureau of Investigation (FBI), the Central Intelligence Agency, Interpol, the Federal Reserve, the National Security Agency or some other US official ‘compliance agent’. He is further informed that his funds will be verified on a ‘bank to bank’ basis, to make sure that they do exist, whereupon the familiar phrase designating that the funds are ‘good, clean, clear funds of non-criminal origin’ is employed.

As the fraudulent scheme continues, the prospective investor’s worried questions are deflected by constant references to the confidentiality requirement associated with the program.

In particular, when the investor asks for references from previous investors, he is advised that the program’s confidentiality requirements prohibit this. The investor is then told that if this program ever became known to the general public, the global financial system would collapse because nobody would invest funds anywhere but in these high-yield investment schemes.

The desperation of former V-P Cheney and associates to scoop up US dollars for the purpose of exchanging them for the mentioned accumulated Euros is hereby revealed, given that the new wave of schemes is, as noted, targeting ‘small monies’, not the huge amounts usually associated with high-yield investment programs; and this in turn illuminates the following fact:

• Out of overt power, and having been cut out of the Settlements, Cheney cannot mobilise large funds, the big monies accumulated and stashed abroad in the past having been frozen due to these exposures: so he and associates are therefore seeking to mobilise small funds – ‘necessitating’ the proliferation of this new wave of fraudulent schemes, using ‘captive’ markets exploiting proprietary subscription bases.

The point here is that these operations exploit a ‘captive subscriber’ or ‘small’ client base.

The thousands of investors who flock annually to Buffett’s annual jamborees worship at the old charlatan’s feet, and are supposedly naïve enough to represent mature, fertile targets for further ransacking. Such ‘small’ afficionados of given gurus are notoriously easier to part from their funds than individuals who use discernment and discretion with greater sophistication, and who decline to put all their eggs in one basket.

But to conclude our description of how ‘high-yield investment programs’ marketed in breach of the US wire fraud statute operate, before we continue: the perpetrators of such Ponzi schemes often contrive to introduce the investor to various individuals either in the United States or abroad, who are identified as ‘brokers’, ‘facilitators’, ‘cutting house operators’, ‘commitment holders’, ‘traders’, ‘compliance officers’, ‘gatekeepers’, ‘government officials’, or officials of the FBI, the Military, the International Monetary Fund, the Federal Reserve, or other well-known entities.

The purpose of such introductions is to persuade the targeted investor that he or she is moving at a high level in the chain of persons running these ‘programs’. Names of actual officials are usually touted, to impress the targeted investor concerned, and are represented as personal associates.

To conclude, it is often the case that the investor winds up being told that he or she will not be participating in a ‘Federal Program’ after all, because of unexpected complexities, but will instead be placed into a commercial transaction which is virtually identical and offers the same rates of return and guarantees, but which is purportedly simpler and easier to complete (begging the open question of why this was not suggested in the first place, of course).

It will be recalled from the original classic Ponzi scheme that the prospectus, or ‘pitch’ is changed (= ‘bait and switch’), as the schemer progressively acquires control of the investor’s funds.

THE OBJECTIVE: TO STEAL THE INVESTOR’S FUNDS
Ultimately, the perpetrator simply steals the investor’s funds.

This is achieved by means of a variety of banking transactions, each having in common the ultimate objective of moving the funds offshore so that they cannot be traced and recovered. Common methods of effectuating the transfer of funds out of the targeted investor’s account include:

• Using an assignment of accounts to the perpetrator.

• Assignment to the perpetrator of a Certificate of Deposit purchased by the investor.

• Transfer of the funds into a newly created corporate account controlled by the perpetrator.

• Transfer of the funds into an inactive corporate account owned by the perpetrator.

• Creation of a line of credit against the investor’s account which is then used to obtain an equal amount of funds from another bank; and:

• Simply transferring the funds by using the information provided by the investor to pose as the investor, and authorize the transfer.

• Plus innumerable variations on the methodology of theft outlined above.

BUT, how much easier it would be for the crooks if the stealing can be handled electronically within the parameters of a closely controlled, confined network, as is postulated in the context of sinister new developments outlined below.

DETAIL OF THE NEW CHENEY-LINKED DOLLAR-COLLECTION SCHEME
‘Your million dollar rescue plan’, screamed an email from Newsmax.com addressed to ‘Dear Fellow American’, dated 10th May 2009, and signed by Christopher Ruddy, CEO and Editor, Newsmax.com and Moneynews.com. We’ll select some sample passages from the email’s text, addressed to users of the Newsmax.com services, and forwarded to this Editor for his comments:

‘I’ve created a bold new initiative I’d like for you to be a part of [sic]… I’m offering you a real chance to take back your financial freedom. To take your stand against Wall Street and an Administration set on wreaking havoc to your investments and life savings. And I’m putting up $1 million of my own money to fund this venture. If you’d like to get your piece of the American Dream back, please take a few moments to read what I have to announce below. Here’s to your success!

The proposition is carefully and apparently designed NOT to breach SEC rules because what is being marketed here is a SUBSCRIPTION to what is labelled ‘Your Million Dollar Secret Code’, representing a purported aggregate value of $6,818 for a SUBSCRIPTION FEE of $1,295, thereby ostensibly SIDESTEPPING SEC rules and regulations, the subscription consisting of [per text]:

(1) About 36 Massive profit/Minimum Risk Plays (a $5,000 million value).
(2) Trade Alerts ($995 value).
(3) Phone Alerts ($199 value).
(4) Password Protection website ($295 value).
(5) Weekly commentary ($99 value)
(6) 24/7 Flash Alerts ($99 value).
(7) One-Year Membership to Financial Intelligence Report ($99 value).
(8) The Tao of Warren Buffett ($18 value).
(9) Milton Friedman’s Money Mischief ($14 value).
Total value: $6,818. ‘This portfolio goes live on May 21st’.

But the practical effect of this exercise, as the analysis below reveals, is for subscribers to provide Newsmax.com with what amounts to an interest-free loan for 59+ days, after which the subscriber can ‘get 100% of your money in our project back’ which means that the money so provided, albeit designated money for a subscription, has indeed been made available as an interest-free loan which can be used for trading purposes other than by the ‘subscriber’.

Groundbreaking Newsmax Announcement:

‘Tired of being bullied by Wall Street? Angry as your Nest Egg disappears and you feel helpless?

You can join me in turning the tables on Washington and Wall Street and once again unlock immense prosperity as you grow your wealth!

Why I’m pledging $1 million of my own money to rescue your wealth!

I’m taking cash out of my company’s bank account to give you an opportunity to profit wildly!’

• STOP! PERTINENT FACTS:

• Under US law, a journalist giving financial investment advice is exempt from Securities and Exchange Commission (SEC) and NASD regulations, i.e. cannot be arraigned for committing wire fraud in interstate commerce and for other grave breaches of the US securities rules.

• BUT IN THIS CASE, the promoter is actually participating in the scheme involving US dollars that he is promoting, even though he is only technically promoting a subscription. If the scheme had focused exclusively on Euros, the situation would be different.

The promoter is actually playing ‘dodge ball’ with the SEC regulations as reviewed below, and may be engaged in a Ponzi scam.

The blurb continued:

‘To share my blueprint for wealth, you must enroll before May 20th at 11:59pm!

[Blah blah blah…] I believe so strongly in this mission – this may shock you – I’m going to put $1 million of my own money on the line to do it! Are you excited? You should be? Maybe suspicious? Good! That shows you are very intelligent.

Let me walk you through what could be a very lucrative opportunity. Although every investment contains some level of risk… I can assure you that I am going to remove as much of it as possible from this proposition. I think my million dollar stake is a pretty telling statement about my belief in the confidence of this venture [sic].

But first, let me tell you what I am doing. I have placed a massive amount of cash – $1 million to be exact – in a TD Ameritrade brokerage account’.

• STOP! PERTINENT FACTS:

• TD = Toronto Dominion Bank, Toronto, Canada, outside the United States, and within the Bush Crime Family’s Canadian bailiwick.

• Ameritrade brokerage account: ANY operation using the prefix AMERI or the complete adjective AMERICAN is AN OPERATION and/or US intelligence community connected. (Yes, that includes the CIA’s airline, American Airlines).

The blurb continued:

‘I aim to use this money to create a great deal of wealth for myself’ [YUK – Ed.]. And here’s what I will do for you: you will be given the opportunity to grow your own wealth as I grow mine. And I’m going to be 100% upfront and transparent about how I do it. I won’t play Russian Roulette with this large sum of money…. I will be implementing a proprietary investment strategy [that] my Chief Financial Analyst has developed over the last 22 years…’.

• STOP! PERTINENT FACT:

• 2009 minus 22 = 1987, which was PRECISELY when the US intelligence community crooks were busily developing their new generation of electronically perpetrated financial scams.

• The significant identity of the promoter’s Chief Financial Adviser follows soon….

The blurb continued:

‘… to grow this $1 million safely… easily… and most importantly, MASSIVELY! Our goal is bold: I’m aiming for a 50% to 70% return in the next 12 months!

• STOP! PERTINENT FACTS:

• Enticing investors interstate to place their funds into a scheme that generates rates of return unobtainable in the normal course of investment business (a) breaches the Prudent Man Rule and (b) implies the strong probability of a scam: so ANYONE participating in such an operation, even by purchasing a ‘subscription’ to services purporting to enable the subscriber to monitor such trades, risks being taken to the cleaners as well as being indicted for aiding and abetting a US operation which (as explained in this report) is a scam to discount the US dollar and may actually be intended for the personal enrichment of Cheney et al and to relieve investors of their funds – just as the so-called ‘prosperity’ and ‘humanitarian’ Ponzi schemes were designed to do.

• All actual participants in this scheme beyond the proposed initial 60-day trial period – by which we mean ALL THOSE STUPID ENOUGH TO INVEST IN IT – are themselves participating in a fraudulent operation because the scheme sets out to discount the US dollar [25% gross: 15% net].

The blurb continued:

‘As you can see, I’m not making some B.S., crazy claim, I’m a shrewd businessman…. I’m not a big dream seller, a day-trader or a gambler. And I think get-rich-quick schemes are despicable [SIC!!!!]. So that’s why I put my own money on the line… because I’m quite confident this solution that I’m presenting with you is phenomenal. I am calling this remarkable program, which I am sharing with you… Your Million Dollar Secret Code’.

The blurb then briefly described how the scheme ‘works’ and revealed the identity of ‘My Private Financial Weapon, David Frazier’, who appears also to be ‘My Chief Financial Analyst’.

‘As someone who is invested heavily in the markets, I have relied on David Frazier’s investment advice to continually grow my wealth. This is why I’m constantly asking him to find me stocks primed for massive growth…’.

• STOP! PERTINENT FACTS:

• DAVID FRAZIER WORKS FOR CHENEY! His job here is to free up and collect the dollars with which the Euros stashed in Switzerland and the Middle East are to be exchanged.

• David Frazier works with DR CYNTHIA DREMEL, an American operative working in London. Her job is to perform the execution, converting the Euros into dollars.

Reportedly, this activity may represent a STING OPERATION aimed at Cheney himself!

• BUT: Because this operation involves DISCOUNTING THE DOLLAR, it is de facto a fraud against the United States.

Further, the sales blurb promoting ‘Your Million Dollar Secret Code’, contained the following text:

• ‘Because I know in today’s economy, each dime you have should be heavily scrutinized before you spend it, I’m including a 60-day 100% refund guarantee.

Test-drive David Frazier’s recommendations first… let us earn your trust!’

•UNSTATED: We won’t care whether you decide at the end of the 60-day trial period to ask for ‘your 100% refund’ because we’ll have had the use of your de facto interest-free loan for 59++ days, and we’ll have been trading that money for our own purposes. This IS a Ponzi operation, therefore.

• ‘So you can actually get a 2-month free peek at my investments. You can trade them and then on day 59, get 100% of your money in our project back’.

• UNSTATED: If the ‘subscriber’ can actually monitor on a virtual basis, the real trades undertaken by the promoter, that means that the promoter is using real money (including the subscriber’s de facto interest-free loan) to make money on the trades, which means that the promoter is actually using the ‘subscriber’s money for a Ponzi operation as the funds may have to be refunded to the ‘subscriber’. But in the meantime the promoter has been making money from the de facto interest-free loan. Put another way, the virtual trading involved in ‘taking a free peek at my investments’ implies that ACTUAL profits or losses will be made using the client’s funds as well as those of others: after all, that’s what the ‘subscriber’ is being invited to ‘take a peek at’.

The immediately discernible main trick, then, is latent within the 60-day trial period. The promoter is trying to imply the potential for a huge return. The actual hidden intent here appears indeed to be a Ponzi scheme, as the promoter gains prospective use of the money for 59 days, which is ample time for his trading purposes. The phrase ‘on day 59, get 100% of your money in our project back’ takes the dodgy, fuzzy language designed to evade the SEC and NASD regulations across the line into illegal Ponzi territory.

On 19th May, the promoter was telling his readers that there were now ‘only 56 charter membership slots left in the initial phase of the program, which was open ‘to 1,000 people who want to make great wealth’. Later the same day:

‘A few slots remain for this incredible opportunity to reap a potential massive financial windfall from the investments stock genius David Frazier will be selecting, the same ones I’ll be placing my own $1 into: but you must act now’.

On 20th May: ‘As you read this, there are less than 24 hours before I put my $1 million stake to work for you. At 11:59 pm tonight, the vault closes and I throw away the key. No getting around that.

Tomorrow, the first investment recommendation for my million dollar portfolio will be made. Do you want the opportunity to reap a life-changing windfall from this initiative, or do you prefer to stay on the sidelines while others [UNSTATED: that’s us – Ed.] profit [UNSTATED: by exploiting your de facto 60-day loan – Ed.]. If you want to be pro-active in claiming your financial prosperity, go here’.

But at the very end of the launch period, the ‘window of opportunity’ was extended, revealing how desperate for dollars the Cheney operation is, given that the former Vice President has been cut out of the Settlements.

SOLVERAS INC., A NEW CIA MECHANISM FOR STEALING FUNDS?
Our attention has also been drawn to a firm called Solveras Inc., operating out of Arlington VA (intelligence community and Pentagon territory), Nashville, TN (Gore territory) and St Paul, MN (Bush Crime Family territory) which calls itself ‘a leading provider of electronic payment solutions for businesses. Its products and services include software and processing support for MasterCard, VISA, American Express and Discover Credit Card transactions, debit card processing, Internet-based virtual terminal systems, electronic cheque services, and other initiatives. Founded in 2000, Solveras is both an independent sales and marketing organization for the National Processing Company representing First National Bank of Omaha (Mormon territory – Ed.), and an Automated Clearing House processing firm with multiple bank relationships’.

On 12th May 2009, Solveras Payment Solutions, announced the appointment of Jeffrey A. Fisher as the firm’s Chief Information Officer. The relevant Press Release stated that ‘in this position, Mr Fisher will be instrumental in charting the company’s technology strategy as well as its continuing development, delivery and implementation. Additionally, he will be responsible for the company’s existing IT infrastructure and all mission-critical systems currently operated by Solveras’.

Fisher was reported to have more than 20 years’ experience in the financial services industry, including eight years with VISA International. ‘For the past three years’, the PR announcement stated, ‘Fisher was employed by the Federal Reserve Bank [sic]. As Treasury/Capital Markets Program Manager at the Federal Reserve, he led the implementation of large-scale technology initiatives supporting both the Federal Reserve, Bank of New York and the US Treasury’.

Solveras is located at 4100 Fairfax Drive, Arlington, VA, the same address as a restaurant, but is not listed on the relevant property website. The location is not very far from the offices of the Defense Intelligence Agency (DIA) and Fort Meyer. Solveras Payment Systems is located at 800 Crescent Center Drive, Suite 400, Franklin, TN 37067, and is a registered ISO/MSP for First National Bank of Omaha, Omaha (Warren Buffet country as well as Mormon territory), Nebraska, and Fifth Third Bank, Cincinnati, Ohio (George Bush, Inc. country). The Chief Technology Officer for Solveras, Inc, is Joe Irrera, previously a country music operative (Berklee College of Music) – the Nashville country music industry having been notoriously exploited by the criminalised US counterintelligence community as a drug-distribution outlet.

The point here is that since money nowadays represents electronic impulses, intelligence-related electronic payment systems can be ‘reverse engineered’ to operate as ‘stealing systems’. Given that the Federal Reserve is irremediably broke, reportedly cannot account for at least $9.0 trillion and would be abolished under NESARA, it would become ‘necessary’ for an alternative closed and controlled scamming conduit to be up and running so that should the Fed be closed down, make that when it is closed down, scamming and stealing ‘business as usual’ can continue seamlessly without the corrupt services of the Federal Reserve Interbank Settlement Fund.

References and Notes:

(1) Global Analyst, Volume 3, Number 2, May 2009: Sabbatian Frankist Poison: Satanic Themes that Drive the Faltering World Revolution and Guarantee its Failure’, pages 21-25, citing the findings of Rabbi Marvin S. Antelman.

(2) The following deceptions perpetrated by the CIA against Congress and the Executive Branch illustrate the fact that the CIA lies routinely to Congress – which of course it despises, as it has long since established itself as the all-powerful ‘State within the State’ which, thanks to its endless Fraudulent Finance operations, uses its illegitimate accruals to fund its open-ended criminal ‘Black Operations’ against foreign Governments and the American people, and to control all branches of the Federal and State Government structures, including the selection, grooming and imposition of the holders of the highest political and administrative offices. This modest list is highly partial and merely identifies publicly perceived CIA deceptions of Congress:

• In 1973, CIA director Richard Helms deceived the Senate Foreign Relations Committee, refusing to acknowledge the rôle of the CIA in overthrowing the elected government in Chile. Helms falsely testified that the CIA had not passed money to the opposition movement in Chile. A grand jury was called to see if Helms should be indicted for perjury.

• In 1977, the Justice Department brought a lesser charge against Helms, who pleaded nolo contendere; he was fined $2,000 and given a suspended two-year prison sentence. Helms went from the courthouse to the CIA where he was given a gift of $2,000 to cover the fine.

• During the Ford Administration, Secretary of State Henry Kissinger, Secretary of Defense Rumsfeld, and White House Chief of Staff Cheney orchestrated fake intelligence for the Congress in order to get an endorsement for covert arms shipments to elements in Angola.

• The CIA lied to Senator Dick Clark, the chairman of the Senate Foreign Relations Committee, who was a critic of the CIA’s illegal collaborations with the Government of South Africa against Angola and Mozambique. Agency briefers exaggerated the classification of their materials so that the Congress could not publicise this information.

• In the 1980s, CIA director William Colby (murdered in 1996 on the instructions of Mr George H. W. Bush, who approved and authorised a contract put out to the Mossad because Colby was seeking to ventilate very sensitive and compromising information into the public domain) and his deputy, Robert Gates, consistently lied to the relevant Congressional oversight committees about their knowledge of Iran-Contra. Senator Daniel Moynihan (believed, correctly, that Casey and Gates were running a disinformation campaign against the Senate Intelligence Committee, to cover up drug-running and financial fraud.

• Gates’ lies on Iran-contra led to the Senate Intelligence Committee’s unwillingness to vote him out of the Committee in 1985, when he was nominated to be CIA Director by President Ronald Reagan. Gates was nominated again in 1991 and this time he was confirmed, but not before
the hearings surfaced data on Gates’ tailoring of intelligence to fit the biases of Bill Casey.

• Throughout the 1980s and the early 1990s, Aldrich Ames operated as one of the most destructive traitors in the history of the CIA; but CIA directors Gates, William Webster, and Jim Woolsey failed to inform the Congressional oversight committees of the serious counterintelligence issues that had accordingly arisen.

• In the late 1980s, the CIA concealed from the Congress that Saddam Hussein was diverting U.S. farm credits through Banca Nazionale del Lavoro (BNL), an Atlanta-based bank, to pay for nuclear technology and sophisticated weapons. The Chairmenn of the Senate and the House intelligence Committees, Senator Dennis DeConcini and Representative Dan Glickman. were furious with the deception tactics of CIA briefers.

• In 2002-03, CIA director George Tenet and his deputy, John McLaughlin, consistently lied about Iraqi training for al-Qaeda members on chemical and biological weapons as well as the existence of
mobile laboratories for the manufacture such weapons. They also withheld the fact, publicised by Soviet military Intelligence, and by our own services, that two Soviet ships had extracted all traces of Iraqi weapons of mass destruction in February 2003, immediately ahead of the invasion.

• Several days before the Congressional vote on the authorisation to use force, CIA senior analyst Paul Pillar delivered an unclassified memorandum to the Hill with a series of false charges about Iraqi weapons of mass destruction. Pillar’s memorandum and a National Intelligence Estimate on the same subject were also used to develop Secretary of State Colin Powell’s misleading address to the United Nations in February 2003.

• More recently, Rep. Peter Hoekstra, the Ranking Minority Member of the House Intelligence Committee, documented the dissembling of the CIA to cover up the criminal Agency’s involvement in a drug interdiction programme in Peru that led to the loss of innocent lives. Rep. Peter Hoekstra
accused CIA Director Tenet of misleading the Congress. The CIA has still failed to address the serious procedural and institutional problems that were exposed in a report prepared by the Office of the Inspector General on the Peru program, which concluded that Agency officials deliberately misled Congress, the White House, and the Justice Department.

• In the 1980s, the CIA withheld from Congress its intelligence on the decline of the Soviet Union.

• Much more seriously, the CIA’s myriad ‘Black Operations’ both at home and abroad, including its permissive sponsorship of debilitating agitprop and disinformation programmes, the systematic dissemination within the United States of lies and fabrications via controlled Internet outlets, as well as its sponsorship of the lies and mind-bending deceit arising out of the 1961 ‘Report from Iron Mountain’ concocted by a secret committee of 15 depraved US intelligence community operatives, together with the Intelligence Power’s colossal portfolio of corruption and Fraudulent Finance operations, have never been disclosed to Congress.

• Closing note to Note 2: With the exception of the final item in this list, the aberrations identified here represent perceptions held in the public domain. This illustrates what a yawning gulf prevails between observers with no real insight into the embedded criminality of the CIA, which is indeed a colossal criminal enterprise, and those who do have some understanding of this hideous problem. As mentioned once or twice in the past, the Editor STUDIES INTELLIGENCE, which is not the same thing as participating in intelligence operations as an operative. It is a straightfoward and simple distinction which one does not require a first-class degree in logic, to be able to comprehend.

LIST OF U.S. STATUTES, SECURITIES REGULATIONS AND LEGAL PRINCIPLES OF WHICH THE CRIMINALISTS, ASSOCIATES AND ALL THE MAIN FINANCIAL INSTITUTIONS REMAIN IN BREACH:

LEGAL TUTORIAL: The Steps of Common Fraud:

Step 1: Fraud in the Inducement: “… is intended to and which does cause one to execute an instrument, or make an agreement… The misrepresentation involved does not mislead one as the paper he signs but rather misleads as to the true facts of a situation, and the false impression it causes is a basis of a decision to sign or render a judgment”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

Step 2: Fraud in Fact by Deceit (Obfuscation and Denial) and Theft:

• “ACTUAL FRAUD. Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.

Step 3: Theft by Deception and Fraudulent Conveyance:

THEFT BY DECEPTION:

• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.

• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.

• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.

FRAUDULENT CONVEYANCE:

• “FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.

• “Conveyance made with intent to avoid some duty or debt due by or incumbent or person (entity) making transfer…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Conveyance’.

U.S. SECURITIES REGULATIONS OF WHICH INSTITUTIONS
HAVE BEEN SHOWN TO BE IN BREACH [SEE REPORTS]:

• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957
• 97-13 Bank Secrecy Act, Recordkeeping Rule for funds transfers and transmittals of funds, et al.

U.S. LAWS ROUTINELY BREACHED BY THE CRIMINAL OPERATIVES AND INSTITUTIONS:

• Annunzio-Wylie Anti-Money Laundering Act
• Anti-Drug Abuse Act
• Applicable international money laundering restrictions
• Bank Secrecy Act
• Crimes, General Provisions, Accessory After the Fact [Title 18, USC]
• Currency and Foreign Transactions Reporting Act
• Economic Espionage Act
• Hobbs Act
• Imparting or Conveying False Information [Title 18, USC]
• Maloney Act
• Misprision of Felony [Title 18, USC] (1)
• Money-Laundering Control Act
• Money-Laundering Suppression Act
• Organized Crime Control Act of 1970
• Perpetration of repeated egregious felonies by State and Federal public employees and their Departments and agencies, which are co-responsible with the said employees for ONGOING illegal and criminal actions, to sustain fraudulent operations and crimes in order to cover up criminalist activities and High Crimes and Misdemeanours by present and former holders of high office under the United States
• Provisions pertaining to private business transactions being protected under both private and criminal penalties [H.R. 3723]
• Provisions prohibiting the bribing of foreign officials [F.I.S.A.]
• Racketeer Influenced and Corrupt Organizations Act [R.I.C.O.]
• Securities Act 1933
• Securities Act 1934
• Terrorism Prevention Act
• Treason legislation, especially in time of war.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

We are a private intelligence publishing house and have no connections to any outside parties including intelligence agencies. The word ‘intelligence’ on this website and in all our marketing material is used for marketing/sales purposes only and has no other connotations whatsoever: see ‘About Us’ on the red panels under the Notes on the Editor, Christopher Story FRSA, who has been solely and exclusively engaged as an investigative journalist, Editor, Author and private financial and current affairs Publisher since 1963 and is not and never has been an agent for a foreign power, suggestions to the contrary being actionable for libel in the English Court.

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NON-U.S. INTERNET SECURITY SOLUTION CD AVAILABLE: FAR BETTER THAN NORTON ETC
It has now been established that the National Security Agency (NSA) works with/controls Microsoft, Norton, McAfee, and others, in pursuit of the Pentagon’s vast BIG BROTHER objective, directed from the ‘highest’ levels (not the levels usually referred to) which seek to have every computer in the world talk direct to the Pentagon or to NSA’s master computers.

This should come as no real surprise since the cynical spooks even assert this ‘in-your-face’ by advertising ‘INTEL INSIDE’, which says exactly what it means. More specifically, NSA have made great strides in this direction by having a back door built into Microsoft VISTA. Certain computers, especially those labelled with the logo of the ‘fully collaborating’ firm Hewlett Packard, have hard-core setups which facilitate the remote monitoring and controlling of personal computers by NSA, Fort Meade. We now understand that if you are using VISTA* you MUST NOT enable ‘file and printer sharing’ under any circumstances. If you say ‘YES’, so to speak, to ‘file and printer sharing’, your computer becomes a slave at once to NSA’s master computers. DO NOT ENABLE SHARING.

Unfortunately, this abomination is so far advanced that this may not be the only precaution that needs to be taken. As long as Microsoft continues its extensive cooperation with NSA and the NSC (National Security Council), the spying system which assists the criminalised structures, and thus hitherto the Bush-Clinton ‘Box Gang’ and its connections, with their fraudulent finance operations, NSA may be able to steal data from your computer. The colossal scourge of data theft is associated with this state of affairs: data stolen usually include Credit Card data, which the kleptocracy regards as almost as good as real estate for hypothecation purposes. Even so, you can make life very much more problematical for these utterly odious people by NOT USING U.S.-sourced so-called Internet Security and anti-virus software. Having been attacked and abused so often, we offer a solution.

We use a proprietary FOREIGN Internet Security program which devours every PC Trojan, worm, scam, porn attack and virus that the National Security Agency (NSA) throws at us. We are offering this program (CD) to our clients and friends, at a premium. The program comes with our very strong recommendation, but at the same time, if you buy from us, you will be helping us finance ongoing exposures of the DVD’s World Revolution and the financial corruption that has been financing it.

The familiar US proprietary Internet Security programs are by-products of US counterintelligence, and are intended NOT to solve your Internet security problems, but to spy on you and to report what you write about, to centralised US electronic facilities set up for the purpose. You can now BREAK FREE from this syndrome while at the same time helping us to MAINTAIN THE VERY HEAVY PRESSURE UPON THE CRIMINALISTS WE HAVE BEEN EXPOSING, by ordering this highest quality FOREIGN (i.e., non-US) INTERNET SECURITY SOLUTION that we have started advertising on this website. This offer has been developed in response to attacks we have suffered from the NSA nerds who appear to have a collective mental age of about five years, judging by their output.

• To access details about the INTERNET SECURITY SOLUTION, just press THE LIVE LINK YOU HAVE JUST READ, or else press SERIALS in the red panel below. This opens up our mini-catalogue of printed intelligence publications. Scroll right down to the foot of that section, where you will see details of this service. When you buy this special product, you will also, as we clearly state above, be paying a special premium by way of a donation to help us finance these exposures.

The premium contains a donation for our exposure work and also covers our recommendation based on the Editor’s own experience that this INTERNET SECURITY SOLUTION will make your Internet life much easier. Some versions have a ‘Preview before downloading’ feature.

*VISTA: Virtual Instant Surveillance Tactical Application.

COTTRELL’S U.S. REGULATORY SHAKE-UP PROPOSALS

CONGRESS WILL WASTE TIME ‘DEBATING’ GEITHNER’S CONVOLUTED MISH-MASH

Monday 18 May 2009 13:00

• The Subs/Books Update Panel on the Home Page was updated at 8:00pm UK time on 22nd May 2009 to provide comprehensive details of all issues of our intelligence services published during the first five months of 2009, including the latest issue of our Global Analyst (Volume 3, #2). Soviet Analyst, Volume 31, #1 is ‘on machine’ at our print works and will be delivered soon. It will contain proof that the Soviet Union remains in existence, or certainly did as late as March 2001, a decade after it was said to have vanished into the trashcan of history. No surprise, but nice to prove it.

• BOOKS: Edward Harle Limited has so far published FIVE intelligence titles: The Perestroika Deception, by Anatoliy Golitsyn; Red Cocaine, by Dr Joseph D. Douglass, Jr.; The European Union Collective, by Christopher Story; The New Underworld Order, by Christopher Story; and The Red Terror in Russia, by Sergei Melgounov. All titles are permanently in stock. We sell books DIRECT.

• Globalist hegemony ideology and practice are comprehensively debunked in the Editor’s study entitled The New Underworld Order, which can be ordered via the books section of this website. If you want to see what may well happen if the angle of decline steepens much further, you could do worse than also order a copy of The Red Terror in Russia, by the contemporary Russian eyewitness Sergei Melgounov, another Edward Harle Limited book available direct from this website. Also, the Editor’s study entitled The European Union Collective, which proves that the EU is a long-range strategic entrapment operation to reduce European countries to satrap status within a German empire using economic strategy for relentless economic warfare purposes, can be bought here.

• Please Make a Donation, if you feel able to do so, to help finance Christopher Story‘s ongoing global financial corruption investigations. Your assistance will be very sincerely appreciated and will make a real difference, hastening the OVERDUE resolution of the worst financial corruption and linked financial fallout in world history. Just press Make a Donation, which is live, and it takes you straight to our ultra-safe ordering system, which accepts Visa and MasterCard.

• The Editor’s $35,000 Wanta bail-out money has been stolen.

• See the second white panel for details of our latest distributed intelligence publications.

• ADVERTISEMENT: Details of the Internet Security Solution software offered by this service in conjunction with a donation are appended at the very foot of this report, below the legal data. See also the catalogue by clicking on World Reports Limited and scrolling down to the bottom.

By Christopher Story FRSA, Editor and Publisher, International Currency Review, World Reports Limited, London and New York. For earlier reports, press the ARCHIVE. Order your intelligence subscriptions and our ‘politically incorrect’ intelligence books online from this website.

THE SOLUTION TO THE CRISIS THAT HAS BEEN AVAILABLE ALL ALONG:
Operating the $ Refunding from London without US Government participation delivers:

(1) Massive ongoing windfall tax accruals to the BRITISH Treasury given that all funds resident in the United Kingdom jurisdiction for 24 hours are taxable by the Inland Revenue. This makes the UK Refunding proposal of extreme interest to Her Majesty’s Government and the UK Treasury.

((2) Massive ongoing windfall benefits to the UNITED STATES Treasury given that it will also receive a cascade of tax accruals from this independent private sector Refunding Program.

(3) The necessary refinancing of the UK and US banking systems ON THE BOOKS with no input from either Government and NO CORRESPONDING DEBT CREATED IN THE BACKGROUND.

(4) GOOD (i.e., on-balance sheet, taxed) money which will CHASE OUT THE BAD MONEY that the crass US Fraudulent Finance concoction will generate.

BARNEY FRANK’S COMMITTEE WILL BE WASTING ITS TIME
On 18th May 2009, The Financial Times reported that the US Congress will start the biggest regulatory overhaul of the US financial system in decades. The House of Representatives’ Financial Services Committee, chaired by Barney Frank, will hold hearings in early June into reforms outlined by Timothy Geithner, the US Treasury Secretary.

These proposals appear to lend new meaning to the word ‘convoluted’ and insofar as they reflect the duplicitous plans outlined by Geithner’s discredited predecessor, the corrupt Henry M. Paulson Jr., will be cumbersome and expensive: the precise opposite of the coherent proposals advanced by the US securities expert Michael C. Cottrell, B.A., M.S., which we published here last summer and on 18th September 2008 (as well as in International Currency Review).

HOUSE FINANCIAL SERVICES COMMITTEE SHOULD STUDY COTTRELL’S PROPOSALS INSTEAD
The American and British Legislatures have one thing in common. Faced with a choice between the correct course of action and its perverse and obtuse opposite, they invariably choose to select the perverse course. In this case, there is actually NO NEED for Barney Frank to hold hearings on the Geithner proposals. He should SCRAP these hearings and investigate Mr Cottrell’s straightforward outline plan instead. Then he wouldn’t waste his committee’s time, and taxpayers’ money, looking into Geithner’s convoluted and complex inventions, which, like everything else this US Treasury Secretary is playing at, won’t ‘fly’. (Nothing Geithner has come up with to date has ‘worked’).

And the reason for that is that they encapsulate the erroneous assumption that the defunct and fraudulent derivatives marketplace can be revalidated, as though there has never been a day of reckoning. It can’t: so far, roughly over $300 billion of deals have been recorded: at this rate, it will take Mr Geithner and his successors 210 years to revalidate the toxic (i.e. fraudulent) derivatives sector on the basis of the $683,341 billion of derivatives ‘assets’ outstanding at the end of June 2008. That was the notional value, as calculated by the Bank for International Settlements (BIS) and replicated by the International Monetary Fund in its April 2009 Global Financial Stability Report.

• FACT: The aggregated gross market value of outstanding contracts at the end of June 2008 according to the same sources was $20,353 billion.

Exactly how long it will take for the penny to drop in these confused official and legislative minds is anybody’s guess: but to assist Mr Frank in his investigations, we reproduce the Cottrell Plan that we last published here on 18th September 2008, below.

•FURTHER FACT: As anticipated in our report from the Spring Meetings of the IMF and the World Bank in April, the derivatives market shrank during the second half of 2008. This represented the first decline during the ten years since these data were first compiled.

The Bank for International Settlements (BIS) have just indicated that the notional amount of global over-the-counter derivatives contracts outstanding shrank from the estimated total cited above of $683,725 billion, as at the end of June 2008, to $592 trillion at the end of December 2008, just below the level of $595,341 billion reported by the BIS and the IMF for the end of December 2007.

REPORT OF 7TH MAY WILL BE UPDATED WHEN IT IS APPROPRIATE AND HELPFUL TO DO SO
There are various reasons why we aren’t YET updating the 7th May report. We will do so when it is considered helpful and appropriate. We will also, in due course, be able to answer a question that has been put to us: what is the ORIGIN of the financial resources that have been abused? This is now possible, following further research conducted by the Editor of this service.

THE EDITOR’S CORRUPTION FINDINGS IN THE MANHATTAN COURT: FORTHCOMING
In addition, the Editor spent some time during his recent stay in New York, extracting interesting documents from the United States District Court for the Southern District of New York, with special emphasis on WHICH huge banks are the most corrupt, judged by the number of cases involving them filed with the Court. It will be recalled that we have referred to certain institutions for some time by name as CRIMINAL ENTERPRISES, and that we have not been sued. This is because they cannot sue us as this statement is true. As you may imagine, these findings are ‘distressing’.

• Here is Michael C. Cottrell’s report as posted here on 18th September 2008, republished so as to assist Barney Frank and his Committee so they don’t waste their time and everyone else’s:

U.S. FINANCIAL MARKET REVAMP OF MARCH 2008 IS A FALSE PROSPECTUS BY THE TREASURY

ALTERNATIVE PLAN PRESENTED HEREWITH IS SIMPLER, TIMELY, CHEAPER AND EFFECTIVE

BUSH PRESIDENCY’S WORKING GROUP ‘REFORM PLAN’ EXPOSED AS A SELF-SERVING RUSE

BETTER PLAN BY MICHAEL C. COTTRELL, B.A., M.S. CAN BE UP AND RUNNING IN MONTHS

CONVOLUTED ‘PAULSON’ FABRICATION WOULD COST IMMENSE $ SUMS TO IMPLEMENT

TREASURY’S PROPOSALS REQUIRE SEVEN NEW AGENCIES, MR COTTRELL’S JUST ONE

THREE-STAGE ‘PAULSON’ PROPOSALS CALCULATED TO UNDERMINE MARKET PSYCHOLOGY

ALTERNATIVE PLAN SUPPLEMENTED BY A COMPREHENSIVE SECURITIES MARKET GLOSSARY

SIMPLE RULES-BASED MARKET STABILISATION PLAN BY MICHAEL C. COTTRELL, B.A., M.S.
In the first quarter of 2008, Michael C. Cottrell, B.A., M.S., President of Pennsylvania Investments , Inc., contacted the Editor of this service to brief him in detail on the dubious stratagems behind the disparate proposals that were finally unveiled at the end of last March by the President’s Working Group on Financial Markets, a.k.a. the ‘Paulson proposals’.

As a result of several conversations, Mr Cottrell, one of the foremost securities markets experts in the United States, prepared a critique of the US Treasury’s extraordinary ‘Plan’, which he was easily able to demonstrate is highly destablising, not least since its plainly confused recommendations undermine financial market confidence while demonstrably serving the interests of the criminalist kleptocracy at the expense of the genuine investment community. This analysis is presented here.

In short, the Working Group’s ‘blueprint’ is shown herewith to be a false prospectus.

Having discredited the Working Group’s proposals, which would call for the creation of no less than SEVEN expensive and mischievously overlapping new US regulatory bureaucracies and for the abolition of the essential rules-based securities market environment, which would be phased out over an imprecise but prolonged timeframe, Michael Cottrell presents his own effective and simple solution to the chaos brought about by years of officially condoned fraudulent finance.

This will require just ONE new US regulator, will call for the revalidation by Congress of the Glass-Steagall Act and for the decisive re-establishment of the essential rules-based system which the Securities and Exchange Commission (SEC) has neglected to enforce in recent years, and can be implemented in full within the space of just a few months, at most. Additionally, Mr Cottrell’s simple Plan will be infinitely cheaper to implement than the top-heavy Working Group proposals.

The Editor has incorporated Mr Cottrell’s proposal into this analysis; and the extensive Glossary, built around Michael C. Cottrell’s original framework, has been expanded so that all concerned can readily understand what has to be done. Michael C. Cottrell, B.A., M.S., can be contacted direct on: 814-455 9218 (voicemail), and at: pii-mcc@msn.com.

Mr Cottrell’s reform framework has been elaborated by the Editor to incorporate ideas for which he alone is responsible but which Mr Cottrell has graciously approved.

• Important Note: We can only report US law as it stands. We cannot make exceptions and neither can we speculate as to the prospective actions of authorities given, for instance, the admission by UBS that it broke the law, and the consequences of that admission for some US investors who may consider that they are eligible for Settlement payouts. Nor can we enter into ANY correspondence concerning that matter. The only issues that we will discuss arising from this post are Mr Cottrell’s practical and straightforward recommendations: and these issues should be raised with him direct.

EXECUTIVE SUMMARY
This paper describes, exposes and then systematically demolishes the credibility and relevance of the so-called ‘Paulson’ proposals, a.k.a. the mish-mash of convoluted notions brought forth by the President’s Working Group on Financial Markets at the end of March 2008.

In passing, it questions the basis upon which expectations of repayment by some US participants in ‘humanitarian’, Omega and other often unregistered, and therefore usually (in the United States) illegal, Ponzi schemes are predicated, shows why these schemes are illegal by comparing them to what the US securities and other relevant US legislation requires, and presents inexpensive and constructive proposals to replace ‘Paulson’s’ dog’s dinner – which, incidentally, would call for the establishment of no less than SEVEN expensive new US bureaucratic agencies, whereas the Plan, devised by the securities expert Michael C. Cottrell, M.S., which is advanced here, would require just ONE new agency instead. Further, Mr Cottrell’s scheme could be up and running within a few months, whereas the ‘Paulson’ dog’s dinner is phased over an indeterminate timeframe.

OFFICIAL PROPOSALS ARE MISCHIEVOUS
On investigating this matter, we were quite surprised at the ease with which the Working Group’s spurious obfuscation operation could be shown to be a glaringly false prospectus that has been jumbled together in order to disguise what can only be described as its underlying mischievous intent. For these proposals dishonestly seek to convey an impression of regulatory reform (in response to the chaos in the financial markets which has been brought about exclusively by the serial criminality of holders of high office) – whereas their actual purpose is to mask the objective of precluding meaningful reform in favour of cosmetic adjustments consistent with an even more permissive and crime-friendly environment than exists today.

Indeed a pattern of nefarious US official behaviour has become clear since the deregulation of the Savings and Loan Associations in 1982. It can be summarised as follows. Far from entertaining any clear intention of curbing excesses and seeking to contain financial sector crises and instability brought about by organised financial fraud condoned at the highest levels of American power, the participating US authorities typically allow the prevailing crisis of confidence and its real economic consequences to escalate until, as happened at the end of the 1980s with the messy ‘responses’ developed by Congress to the ‘hollowing out’ (enronisation) of the thrifts, the problems become so huge that radical departures are agreed upon ‘under duress’ which, in turn, provide the intended basis for a proliferation of fraudulent financial operations ‘by other means’.

FOLDING THE CRIMINALISTS’ CRISIS INTO A ‘UNIVERSAL SOLUTION’
This is exactly what these cynical ‘Paulson’ proposals are predicated to achieve. The underlying motive here is to ‘fold’ the contemporary financial and economic crisis into a ‘ universal solution’ which will, if this Treasury has its way, give the arch-planners of fraudulent finance practices, carte blanche to proliferate their scams and aberrations for many years to come.

Accordingly, the fraudulent prospectus disgorged by the President’s Working Group on Financial Markets needs to be consigned forthwith to the trash can. This report will help to achieve that.

As indicated, we present a simple, straightforward, constructive, inexpensive and quickly and easily implemented alternative Plan to replace it. Its author, Michael C. Cottrell, M.S., one of the United States’ foremost securities markets experts, argues that no further attention should be paid to the dishonest and discredited ‘Paulson’ proposals, which have in any case more or less run into the sand; and that the straightforward measures advocated below should be adopted, instead.

They would immediately inject the necessary discipline into the marketplace, precluding scope for securities scamming models to which the notorious American kleptocracy has become accustomed.

This paper is supplemented by an extensive Glossary of securities environment terms, for the benefit of the lay reader. The Editor has incorporated several appropriate new terms in the list.

SELF-SERVING PLAN TO ‘CLEAN UP’ MESS THE CRIMINALISTS THEMSELVES CREATED
Among the most distasteful characteristics of the world-class financial criminals exposed through our reports is their habit of advising the Rest of Us how the distasteful consequences of their own glaring criminality are to be overcome. The flip-side of the accomplished US financial criminalist is typically an unimpressive ‘angel of light’, who preaches the virtues of sound finance, in order to mask the fact of his endless reprobate financial misbehaviour.

Thus, having presided over and orchestrated the stealing of colossal sums of other people’s money, the US intelligence operative calling himself Henry M. Paulson Jr. [but see Memorandum below], as advertised, promulgated, in March 2008, a set of goofy and confused proposals for the ostensible ‘reorganisation’ of the way the US financial markets are regulated, which amounts to a pre-planned ‘new regulatory order’ – but the purpose of which, on investigation, turns out NOT to be improved financial sector discipline, but rather the cynical and surreptitious institutionalisation of market conditions that will facilitate replication of the abuses and fraudulent finance that have so far been exposed, but on a far broader scale, in the years to come.

A prerequisite for understanding what follows, and the prevailing financial days of reckoning and their origination generally, is to recognise the subversive reality of the ‘angels of light’ deception model. The financial sector traditionally clothes itself in a mantle of assumed righteousness, which is reinforced by generational layers of perception yielding a belief that financial institutions are, generally speaking, models of rectitude which cannot deviate from the strict codes of conduct that are presumed to surround them, and therefore from the Rule of Law.

BELATED, GRUDGING REALISATION THAT WHAT HAS BEEN REPORTED IS ACCURATE
Because this general lazy presumption is rarely, even today, called into question, it took, to our certain knowledge, certain British and American circles over two years to reach the staggered conclusion that what we have been reporting was accurate, both in general terms and more often than not, in terms of specifics as well.

By the same token, the underlying assumption that the exotic Treasury proposals developed by the President’s Working Group on Financial Markets, which will be demolished here, are of beneficial and enlightened intent, has no basis in reality, as will now be examined. On the contrary, as might have been expected, they represent ANOTHER pathetic scam, a deception, a diversion, a PLOY.

We will begin with a ‘straight’ summary of the ‘Paulson’ proposals, which will then be exposed as representing a false and deceitful prospectus.

THE FALSE PROSPECTUS AS ANNOUNCED
Following our exposures of financial fraud between June 2006 and the same month a year later, tensions rose to such a pitch behind the financial sector scenes that the US authorities felt the sudden need to be seen to be ‘doing something’ – an urge that resulted in the establishment of the President’s Working Group on Financial Markets.

But by ‘doing something’, the criminalists actually meant leveraging the financial crisis which has developed as a direct consequence of their criminality through the advocating of false ‘reforms’ under cover of which they intended to institutionalise a permissive US environment which would guarantee that their addiction to manufacturing liquidity out of thin air through untaxed high yield investment programs (out of bounds to ordinary mortals because outside the officially protected corruption zone, they are lethally risk Ponzi scams: see below), would be OK’d without recourse.

The phrase ‘Working Group’ is a designation used by Israeli intelligence to describe an operation inside the Israeli Government structures (viz., intelligence), with a focus on developing a modus operandi to achieve an instructed objective, according to Robert Littell [‘Vicious Circle’, Overlook Press, Peter Mayer Publishers, New York, 2006].

After ‘labouring’ for eight months, the Working Group brought forth a convoluted, fragmented and opaque ‘THREE-STAGE plan’ to ‘reform’ US regulation of the very financial institutions with which the now disgraced ruling kleptocracy has been collaborating to scam ordinary American citizens, mortgage ‘holders’, the US Government itself, and foreigners who fail to do their ‘due diligence’.

The overall effect of the regulatory fragmentation plan put forward in bad faith (as we demonstrate below) by the Working Group would be to place the control of all financial markets wholly under the power of the President of the United States – which, given the criminality of the present and recent incumbents, would be a recipe for the institutionalisation of fraudulent finance, the elimination of all remaining checks and balances, and consequently for a corrosive financial market environment leading to a financial meltdown in a few years’ time which would make the present crisis look like a pleasant afternoon by the seaside.

Before we go any further, we must summarise the Working Group’s proposals without commenting in any detail immediately on their implications:

STAGE ONE, AS PROMULGATED BY THE PRESIDENT’S WORKING GROUP:

• The President’s Working Group on Financial Markets would be expanded to add banking sector regulators not hitherto participating in its deliberations, in order to broaden the Working Group‘s supposed focus to incorporate the whole of the US financial sector, rather than just the financial markets as such (begging the question: what was the problem? Why the delay?).

• Lending by the Federal Reserve: Because non-bank financial institutions have, since December 2007 (thanks to the chaos brought about by fraudulent finance operations over which this ‘Paulson’ himself presided) had access to the US Federal Reserve, the Fed would be able to conduct on-site examinations of such borrowers and impose conditions on their operations.

• Establish a Mortgage Origination Commission to consist of six Board Members, taken mainly from Federal structures. The new entity would proceed to establish minimum licensing standards and testing criteria, and would gauge and grade the adequacy of each State’s mortgage control system. This would be accompanied by clarification of which Federal body is to enforce mortgage lending legislation (which, for some reason, the Working Group could not manage to do).

STAGE TWO, AS PROMULGATED BY THE PRESIDENT’S WORKING GROUP:

• Federal Oversight of State-Chartered Banks: It was reported that the US Treasury recommended a study to determine whether the Federal Reserve or the Federal Deposit Insurance Corporation (FDIC) should have oversight of State-chartered banks.

(Great! So we need a ‘study’. Why didn’t the Group perform that study, then? Why the ‘need’ for further delay while the ‘study’ is carried out?).

• Thrift Charter to be eliminated: The following banking sector regulator was categorised as ‘past its sell-by date’: The Office of Thrift Supervision. This entity, which oversees US Savings and Loan Associations (so-called ‘Thrift Institutions’) should be closed down and folded into the Office of the Comptroller of the Currency, which has oversight of National Banks. (No reason given).

• A new (optional) Federal Insurance Charter: The US Treasury proposed the creation of a Federal regulator to cover the insurance sector, which is extremely corrupt in the United States. The first step would be to ask Congress to create an Office of Insurance Oversight within the US Treasury, to focus on international issues and to advise the Treasury on insurance sector affairs. This would be the first step towards the creation of step two, namely the creation of a new Federal Insurance Charter. (Notice that everything is ‘spaced out’, laid-back, confused and overlapping).

• Revised payments and settlement arrangements: Under the eccentric proposals brought forward by ‘Paulson’, it was suggested that the Federal Reserve Board should be given oversight and rule-making authority over the payment and settlement systems for the processing of payments and the transfer of securities between financial institutions and their clients. (Hence, de facto regulation of the securities markets would devolve into the hands of the untrustworthy Fed).

• Futures and Securities markets: The US Treasury used this report to call for the merger of the Commodity Futures Trading Commission (the CFTC) and the Securities and Exchange Commission (the SEC), neither of which has been doing its job properly, given the sheer scale of the bribery and corruption behind the scenes, plus reports that the SEC has itself been engaged in trading on own account (see below).

In particular, the Treasury proposed that the Securities and Exchange Commission, which operates (or should operate) on the basis of precise rules and regulations backed by rigorous enforcement, should ‘preserve’ the modus operandi of the US Commodity Futures Trading Commission, which is that business should instead be conducted in accordance with stated ‘principles’.

In other words, the Treasury wanted to scrap the rules-based system (required under the 1933 and 1934 Securities Acts) and to replace it by a vague ‘principles- based’ system’, which would mean that enforcement would be almost impossible – because a régime of relativism would prevail and key terms would remain undefined.

Securities professionals are taught and intensively trained to operate exclusively on the basis of the SEC’s ‘rules-based’ system, which precludes any deviation whatsoever from the established rules (provided the regulations are enforced, which has not been the case for years because of corruption within the Securities and Exchange Commission itself).

STAGE THREE, AS PROMULGATED BY THE PRESIDENT’S WORKING GROUP:

A new US regulatory structure would be imposed over the longer term, under which US financial institutions would be asked to choose between one of three Federal Charters:

• Federally Insured Depository Institution:
This would be applicable to all lenders with Federal deposit insurance.

• Federal Insurance Institution:
Applicable to all insurers offering retail ‘products’ which entail some degree of Federal guarantee.

• Federal Financial Services Provider:
This charter would cover all other categories of financial services firms.

Under this regime, the following SEVEN NEW FEDERAL AGENCIES, each with its own hyper-expensive self-serving bureaucracy would ‘regulate’ US financial institutions:

• The Market Stability Regulator: Under this vague proposal, the Federal Reserve was to ‘look out’ for threats to the stability of the United States’ diverse financial system, whether they in fact originated with banks, insurance corporations, mortgage lenders, investment banks, hedge funds, or with any other type of financial institution.

The Federal Reserve could require corrective measures to be taken to address current risks or to curb future risk-taking, but these powers could only be exercised if overall financial stability was threatened. In other words, this entity would essentially achieve nothing at all, leaving the financial markets alone (until it was too late), thereby passively facilitating a progressive repetition of the near-catastrophe experienced since the mid-1980s, but on a far larger scale.

• Prudential Financial Regulatory Agency: This new entity would regulate US financial institutions buttressed by explicit Government guarantees associated with their operations, such as Federal deposit insurance. The new US agency would assume the rôles of the current Federal prudential regulators, including the Office of the US Comptroller of the Currency and the Treasury’s Office of Thrift Supervision. Yet another (subsidiary) regulator would focus on the hitherto unrestrained and unregulated off-off-budget Government-Sponsored Enterprises (GSEs) which, though established by the Federal Government, were placed (on creation) into the ‘private’ sector and have implicit Government backing, such as the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal Home Loan Bank System. See our report dated 26th December 2007 for insights into how Fannie Mae, for instance, has been used to perpetrate fraudulent financial transactions in the US mortgage sector [Archive].

• Conduct of Business Regulatory Agency: This new regulator would be charged with ‘consumer protection’ with respect to all categories of financial entities. The agency would watch disclosures and business practices, and would supervise the licensing of certain types of financial firm.

It would absorb many of the functions of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and would undertake some responsibilities that are currently handled by the Fed, state insurance regulators, and the Federal Trade Commission.

• Federal Insurance Guarantee Corporation: This new agency would replace the Federal Deposit Insurance Corporation, charging premia to guarantee bank deposits and insurance payouts.

• Corporate Finance Regulator: This new entity would take over other functions of the Securities and Exchange Commission, such as the oversight of corporate disclosures, governance issues, accounting, and other matters.

In other words, SEVEN NEW BUREAUCRACIES would regulate everything and achieve nothing.

THE PURPOSE OF THE FALSE PROSPECTUS: OBFUSCATION
Confused? That’s precisely what is intended. As can be seen, this curious pot-pourri of convoluted arrangements matches the intentions of those who framed it (and who will not see it implemented, we feel sure). Those intentions can be summed up in the single word: OBFUSCATION.

For these proposals were developed during the immediate aftermath of the emergence of overt financial sector strains arising from the ongoing exposures of the open-ended financial fraud; and their purpose, from the outset, was not to enhance regulation and to make it ‘more efficient’, but rather to bring forward a novel framework under cover of ‘overdue reforms necessitated by the credit crunch and the financial crisis generally’, which could be exploited and leveraged to cover up, rather than to further expose, the serial financial criminality that blew up in the faces of the US kleptocracy as a consequence of the exposures of its endless criminality.

In other words, the President’s Working Group on Financial Markets appears to have been briefed in bad faith, its task being to develop a platform and framework of proposals which would serve the purpose of obfuscating financial criminality, while appearing to do the opposite. This was, in short, nothing less than a typical deception, intended to convey the dubious impression that ‘reform’ was (belatedly) being recommended, while in practice substituting the existing regulatory system which has not been properly enforced, with a vague, woolly régime framed so as to facilitate the very free-wheeling fraudulent finance and risk-taking that the proposals are supposed to deter.

Since, however, the proposals were brought forward by deception operatives whose speciality has all along been dialectical ying-yang behaviour, duplication and duplicity, the discovery that these proposals are a sham, comes as no surprise. Whether those who listened to ‘Paulson’ making this pitch on 2nd July 2008 at the Royal Institute of International Affairs (Chatham House) in London (the globalist UK think-tank which masquerades as a free-standing institution of the British nation state while constantly undermining it), understood this duplicity, seems improbable.

On that occasion, ‘Paulson’ presented a series of vague generalities for the consideration of the British ‘Great and the Good’ assembled to hear this pitch, such as that ‘the financial landscape has changed, and non-bank financial institutions play a significantly greater role’ than used to be the case. (When one of our special contacts attempted to make himself known to this ‘Paulson’ fellow, he vanished out of sight).

But the existing US regulatory régime has not ‘failed’ because it is no longer ‘fit for purpose’. It has ‘failed’ for three straightforward reasons:

(1) Some of the regulatory agencies, such as the Federal Reserve Board itself, the Securities and Exchange Commission, and the Commodity Futures Trading Commission, are/have been corrupt.

(2) The corrupt regulators have accordingly failed to regulate, let alone to enforce their regulations.

(3) The focus of the corrupt regulators is to prolong the obfuscation operation, to verbalise their dereliction of duty through spinning for the benefit of the likes of The Wall Street Journal, and to seek to draw a veil over such issues as the SEC’s ‘legitimisation’ of naked shorts for a restricted group of participants, whereas a regulator should be completely impartial. The overall objective is self-preservation, protection of their own personal interests, and staying out of jail themselves.

• In respect of ‘naked shorts’, has the SEC conveniently forgotten the old securities market adage: ‘He who sells what isn’t his’n, Must put it back or go to prison’?

TERMS LEFT UNDEFINED UNDER THE INTENDED ‘PRINCIPLES-BASED’ REGIME
In place of the existing (albeit unenforced) regulatory régime, ‘Paulson’ proposed a system not of rules-based regulation, which could be enforced if the regulatory agencies themselves were not corrupt, but of ‘principles’-based regulation, which, by definition, would entail that there would be no rules to be enforced, terms are not defined, and that breaches of ‘principles’ are liable to be irrelevant because it would always be a nuanced matter of relatavist judgment whether principles were being flouted, or not. In otherwise, such a régime would not amount to a regulatory régime at all, but rather to a crooks’ charter and paradise. ALL OVER AGAIN.

If the existing US regulatory agencies were doing their jobs properly, they would be adequate for the purpose – and certainly far more adequate than the deliberately complexified, overlapping and obfuscatory framework suggested by the President’s Working Group on Financial Markets.

But while the Working Group may be redundant and has discredited itself, the financial market issues that it was supposed to have addressed, remain in existence and as intractable as before.

THE EXISTING U.S. REGULATORY FRAMEWORK
The existing US regulatory framework, for the record, consists of the following agencies:

• Federal Reserve System: Supposedly regulates the US monetary system and oversees bank holding companies. Historically lacked real assets apart from its contract to print the currency of the United States, which ought to be a function of the US Treasury,

• Securities and Exchange Commission (SEC): Established by the Congress in 1934 to regulate the securities markets in accordance with stated rules and under the 1933 and 1934 Securities Acts, to maintain ‘fair’ markets and to protect investors. The SEC also, as a primary element of its oversight powers, reviews corporate financial statements, is supposed to enforce the securities regulations, and provides guidance for the framing of accounting rules.

• Federal Deposit Insurance Corporation (FDIC): This regulator insures deposits lodged by bank customers against the failure of banks. The FDIC was created in 1933 to build and maintain public confidence and to encourage stability in the financial system by fostering sound banking practices.

• Office of the Comptroller of the Currency: This traditional arm of the US Treasury Department was established in 1863 to supervise and regulate National Banks and the Federal branches of foreign banks. Its purpose is to promote the safety and soundness of the banking system and to conduct on-site examinations of banks across the nation.

• Commodity Futures Trading Commission (CFTC): Established as a US agency in 1974, this entity is supposed to ensure the open and efficient operation of the US futures markets, which started out trading agricultural futures, and now trade sophisticated synthetics (derivatives).

• Office of Thrift Supervision: This agency issues and enforces regulations governing the United States’ Savings and Loan sector (Thrift Institutions). It is responsible for ensuring the safety and soundness of deposits with Thrift Institutions.

SHORT HISTORY OF U.S. FINANCIAL TRANSPARENCY

(A) 1890 to the 1920s:

Leading American financiers of the late 19th century, such as John J. Astor, Cornelius Vanderbilt, John D Rockefeller and J. P. Morgan (1), provided capital to finance the establishment of very large corporations and combines, also known as the trusts, which came to wield enormous power across entire industrial sectors. As a consequence, by the year 1890, the control of 5,000 corporations was held by about 300 such trusts operating all over the country. By 1900, the largest dozen of these combines were capitalised at over $1.0 billion (2) .

Accordingly, investment bankers became corporate directors – with Morgan, for instance, having board representation on 78 investment bank companies.

Therefore, when these large corporations needed injections of capital, the bankers who were sitting on their Boards claimed to represent the bondholders (3).

Disclosure of financial information was entirely voluntary, even though disclosure of predator practices could only be revealed via the balance sheet (4). The Sherman AntiTrust Act of 1890 was enacted in order to define and make the monopolistic activities of such trust companies illegal (5).

In 1914, the Clayton Anti-Trust Act sought to increase competition across the business sector by restricting predatory corporate activity such as acquiring other competing corporations and the practice of allowing interlocking corporate directorships (6).

And the Federal Trade Commission Act, passed in the same year, established a regulatory authority, acting as the ‘watchdog of competition’, to protect the American consumer from ‘unfair methods of competition’ (7). In other words, raw, unregulated capitalism was by now seen as being prone to abuse and in need, therefore, of official constraint.

(B) 1920s to 1941:

During this period, the number of investment companies that were formed in the United States steadily increased from six in the year 1921, to 46 in 1925 (8).

While most of these investment companies were subject in some measure to the ‘Blue-Sky’ [see Glossary] requirements, the State statutes and regulations appear not to have treated investment companies much differently from the general run of corporations and business trusts (9).

As previously, disclosure of financial information remained voluntary, even though the disclosure of predatory practices could only be conveniently disclosed through the balance sheet (10).

Between 1927 and 1929, these investment companies raised approximately $2,300,000,000 from the sale of new securities. Their assets increased from $550,000,000 in 1927 to almost $2,600,000,000 in 1929 (11). Distribution of the shares in these fixed trusts reached peak levels during 1930 and 1931, when $600,000,000 of their shares were sold, inducing the passage of various US statutes and the promulgation of regulations which brought the expansion of these fixed trusts to an end (12).

In 1933, North Carolina adopted a regulation (which in due course was adopted as Section 11 of the Investment Company Act of 1940) which prohibited the charging of any sales load on the switching of trust shares (13). As a consequence of the lessons learned the 1920s and early 1930s, including bitter experiences suffered by investors with ‘bucket shops’, the original and copycat Ponzi and Pyramid-selling schemes, and other forms of fraudulent finance that flourished in this free-for-all environment, the Congress passed the stringent Securities Acts of 1933 and 1934, followed by the Maloney Act of 1935; and in the banking sector, the Banking Act of 1933 and the Glass-Steagall Act of 1933 which restricted US banks to banking operations and precluded their participation in the securities markets. The Securities Acts were updated by the Securities Acts Amendments of 1970.

THE EXPENSIVE FALSE PROSPECTUS ANALYSED:

U.S. TREASURY’S 2008 REGULATORY ‘REFORM’ PROPOSALS (14), (15)

Astonishingly, in view of the obvious fact that these proposals would be bound to have an impact on fragile financial market confidence, the Working Group’s suggestions were phased, with short- medium- and long-term proposals set within an imprecise timeframe, interspersed with periods of reflection for ‘study’, and personnel being liable to be poached from old regulatory agencies that would remain alive in one phase, but not the next, and with every opportunity taken to ensure that the responsibilities of no less than SEVEN newly proposed, expensive agencies would overlap as much as possible, while existing agencies would languish in a state of limbo or uncertainty pending prospective abolition, or not, as might be decided in a later phase.

Self-evidently, this confused prospectus is a recipe for undermining confidence in the integrity of financial market regulation, and therefore in the integrity of the financial markets themselves, as well as maximising the potential for obfuscation, as will be seen:

(A) THE SHORT-TERM PROPOSALS:

The President’s Working Group on Financial Markets is/was intended, we read, to be composed of a Coordinator of Financial Regulatory Policy and to cover the entire American financial sector, as indicated above, not merely the financial markets.

It was thus to incorporate banking regulators not currently participating in the study group, and would need to broaden its financial focus to capture the whole of the financial sector.

Hence the Working Group was to facilitate inter-agency coordination and communication, with a view (ostensibly) to developing proposals to mitigate all systemic risks to the financial system, to enhance the integrity of the financial markets, to promote protection of consumers and investors, and to support the efficiency and competitiveness of the financial markets.

Since overall ‘competitiveness’ covers the stance of any given financial market environment by comparison with foreign counterparts, the Working Group would or will have had to consider the impact of any proposals it puts forward on the competitiveness of the market in question, with its equivalents abroad; and the moment that such considerations had to be considered, the knee-jerk response of the Working Group’s membership is liable to have been to opt for the most lenient and liberal ‘solution’ on the drawing board.

As for the proposed creation of a Federal Mortgage Origination Commission (MOC), this huge new bureaucracy would be headed by a Director appointed by the President of the United States for a four- or six-year term – which means that, in accordance with the standard corrupt US practice, the job would be likely to go to a presidential crony.

The six Board members would be supplied from the Federal Reserve, the Office of the Comptroller of the Currency (OCC), the Office of Thrift Supervision (OTS) and the Federal Deposit Insurance Corporation (FDIC), even though the last of these three agencies were to be abolished under the proposals, and the Federal Reserve itself remains vulnerable, under unpublished H.R. 2778 of the 110th Congress, to be abolished and merged within the US Treasury.

The other two Board Members would be supplied from the National Credit Union Association and the Conference of State Bank Supervisors.

The new Mortgage Origination Commission would develop minimum licensing standards, testing criteria and a system for grading the adequacy of each State’s financial regulatory arrangements. The drafting of regulations covering national mortgage lending legislation would, the Working Group apparently proposes, remain exclusively with the Federal Reserve, as provided for under the Truth in Lending Act.

Finally, the States should be given clear authority to enforce Federal mortgage legislation upon independent mortgage originators, that is to say, those mortgage originators considered to have been responsible for originating most of the so-called ‘sub-prime’ loans.

There was no reference to the practice of collectivising such mortgage loans, let alone with false documentation purporting to represent other mortgages but which lack any underlying asset at all, for the purpose of ‘securitisation’ and marketing to gullible investors at home and abroad who may not perform adequate (or any) due diligence.

For the short term, too, the Treasury’s blueprint put forward two considerations relating to the overall stability of the financial markets. Specifically:

(1) The prevailing temporary liquidity provisioning process, designed to alleviate threats to market stability (launched in December 2007 in the face of the crisis of confidence which overwhelmed the American authorities given the accumulated consequences of their incompetence, criminality and mismanagement of the US financial system), must ensure:

• That the process is calibrated and transparent (with no definition of terms here);

• That appropriate conditions are attached to the lending, (with no explanation of ‘appropriate’);

• That information flows to the Federal Reserve System via on-site examinations, and/or that other conditions or means can be imposed as determined by the Federal Reserve, with no recourse and without any indication here of what the Federal Reserve might have in mind.

(2) The President’s Working Group should consider broader regulatory issues related to discount window access for non-depository (i.e., investment banking) institutions. So, this Working Group has not yet undertaken such considerations? What, then, was it doing between August 2007 and March 2008, exactly?

(B) THE MEDIUM-TERM PROPOSALS:

Under this heading, the Treasury recommended, as summarised above:

• Elimination of ‘redundant’ banking regulators, without providing any rationale for such a drastic and reckless measure, and without having practical alternative proposals formulated or in place;

• Closing down the Office of Thrift Supervision, ditto;

• Folding the responsibilities of the Office of Thrift Supervision into the Office of the Comptroller of the Currency, again with no rationale for such action being provided.

Having shredded key existing regulatory institutions without replacing them (at this stage), the Treasury proposed that the next step should be that a leisurely ‘study’ should be undertaken, to establish whether the Federal Reserve or the Federal Deposit Insurance Corporation (the FDIC) should have oversight of the State-chartered banks.

This seems to us to be quite ridiculous, and asking for trouble. First, some existing regulators are abolished, without the Treasury at this stage having a clue what should take their place. Secondly, having abolished the regulators, the Treasury would then embark upon a ‘study’ to decide what to do next, as it says it is undecided (cannot make up its mind) whether the Fed or the FDIC should oversee the State-chartered banks – a confused recommendation akin to throwing all the furniture out of the window before deciding what, if anything, should replace it.

A moment’s reflection will convince even the most enthusiastic supporters of the corrupt US ‘Paulson’ Treasury that these proposals are, of put it mildly, mischievous.

Nobody who cares about US financial market stability can possibly take them seriously: indeed, the proposals , even as far as has so far been described here, are so mixed up and destabilising, that it is no exaggeration to ask whether they represent some kind of spoof.

Has some malevolent gremlin substituted this mischievous verbiage for what the Working Group actually submitted? Given the track record of ‘Paulson’s criminalist Treasury, that may not be as far-out a proposition as it may appear to be.

The third element of the intermediate recommendations brought forward by this muddled report departed from common sense by recommending that the Federal Reserve – which has achieved notoriety thanks to its two-tier policy of purporting to represent the Rule of Law while at the same time surreptitiously condoning and facilitating corrupt financial practices through exploitation of the unaudited and secretive Federal Inter Bank Settlement Fund – should acquire oversight and rule-making authority over payment and settlement systems that process payments and transfer securities between financial institutions and their clients.

This would be worse than placing the fox in charge of the chicken coop: it would ultimately lead to the liquidation of the chickens by guaranteeing the perpetuation of the fraudulent finance model that has been exposed by notorious recent developments. And again, no coherent rationale for this supposed ‘reform’ was presented with the recommendations.

Put another way, the report then recommended that the Federal Reserve should acquire oversight and, inconsistently, rule-making authority, over the payment and settlement systems that process payments and transfer securities between financial institutions and customers.

Since this all-embracing ‘reform’ would include ALL institutions, this would mean inter alia that the Federal Reserve would in practice acquire rule-making authority over securities broker-dealers. Hence, the rule-making authority to be abolished with the folding of the Securities and Exchange Commission (see below) would reappear under the aegis of the Federal Reserve, although we are not told what category of rules the Fed would promulgate. It can be taken as read that the rules to be promulgated by the Federal Reserve would bear no discernible relationship to the rules long since established (but lately, not enforced) by the Securities and Exchange Commission.

On top of this nonsense, the proposals recommended a further unresolved ‘solution’, calculated to maximise uncertainty – this time in the insurance sector. First, the Working Group floated the idea of creating a Federal regulator to oversee the insurance industry.

Then, after floating this suggestion, the Treasury wants to ‘ask Congress’ to create a new Office of Insurance Oversight (OIO) which would function from within the Treasury, meaning of course that the Treasury would control the insurance sector directly. Since the Treasury, like the US Federal Reserve, has demonstrated that it is thoroughly corrupt, this recommendation would simply enable the corrupt Treasury to capture and channel the well-known corruption that bedevils the insurance sector in the United States. The OIO would supposedly focus upon international insurance sector issues, while also providing the Treasury with ‘advice’ – a completely meaningless concept since the entity, resident within and therefore a part of the Treasury, would accordingly be advising itself.

[The probable hidden intention here would be to replicate the Federal Financing Bank (FFB), which is likewise an office (plus some filing cabinets) situated within the US Treasury but which for many years enjoyed off-budget status, thereby providing the Treasury with increased ‘wriggle-room’ for its usual ‘smoke-and-mirrors’ financial shenanigans. As matters stand today, the Federal Financing Bank is one of the basic mechanisms that enables the Secretary of the Treasury to manipulate the Government’s finances by exploiting the fact that is allowed by statute to have $15.0 billion of debt outstanding at any one time, so that by means of creative bookkeeping, up to $15.0 billion extra can be borrowed on those occasions when the Congress has deployed its residual ‘control’ over the spending of the Executive Branch by refusing to raise the Statutory Debt Limit, in exchange for some Federal Budget concession or other that it seeks to extract from the Executive Branch].

In short, and Office of Insurance Oversight inside the Treasury would simply be leveraged by the corrupt Treasury for its own purposes, and in furtherance of the dubious interests of the official perpetrators of fraudulent finance operations who have been cornered and are running for cover.

Even worse are the quite appalling proposals affecting the securities sector. The Working Group suggested, as mentioned above, that the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) should be merged – again, providing no rationale for such a radical shake-up. The actual purpose here would be to end the settlement reached by the Securities Acts of 1933 and 1934, which provided for the securities sector to be governed by the strict application of precisely defined rules – the settlement that ended the chaos arising out of the undisciplined free-for-all allowed in the 1920s, when bucket-shops ripped American investors off and investors enjoyed no protection from sharks other than that provided by the ‘Blue Sky’ above – in favour of standardising the so-called ‘principles-based’ approach employed by the ineffective Commodities Futures Trading Commission. Neither the SEC nor the CFTC have, in recent years, fulfilled their regulatory responsibilities, due to internal corruption; but scrapping the rules-based approach in favour of the CFTC’s permissive ‘principles-based’ approach would guarantee and perpetuate financial corruption perhaps for generations to come.

An indication of the deceptive nature of this recommendation can be gauged by the mealy-mouthed language employed to present this sorcery for public consumption. Specifically, the Working Group postulated that the Securities and Exchange Commission should seek to ‘preserve’ the CFTC’s principles-based approach, presupposing of course that the SEC should DROP its rules-based approach: but in order to mask this deception, THIS CENTRAL RUSE WAS LEFT UNSTATED.

‘Preserving’ the principles-based approach used by the ineffective CFTC would, self-evidently, be inconsistent with ‘preserving’ any rules-based approach – which is the point of this proposition.

What the Treasury is seeking to achieve here is to pass off a fraudulent reform as a key element of an improved regulatory system, when what would be perpetrated would be the de facto elimination of the existing framework which, if properly applied, would protect investors from fraud and make it impossible for fraudulent finance operations such as those that have been exposed, to exist, let alone to flourish. In other words, this recommendation represents a typically diversionary fraud by the ‘Paulson’ Treasury, consistent with the reputation it has earned for itself as an institution of the Federal Government in which no trust can currently be placed, not least because, on the basis of its recent behaviour, it cannot be relied upon to honour its obligations.

(C) THE LONG-TERM PROPOSALS:

Not content with the chaos that would be created as a consequence of this wrecking operation to date, the Working Group, true to its false prospectus, capped this truly shambolic mish-mash with a series of half-baked long-term proposals, the net effect of which would be to leave everything up in the air, thereby maximising scope for a 1920s-type free-for-all – and ensuring that the investment environment of future years would be consistent with the underlying intention of this dog’s dinner of spurious proposals – namely to facilitate the perpetuation of fraudulent finance, following the shocks administered to the criminalist kleptocacy by recent developments.

By staging its fitful proposals over a prolonged and imprecise timeframe, the US Treasury has of course already compromised the prospects for global financial stability, since no-one now knows what is coming next. The fact that proposals have been put forward in such a vague, disjointed and dissonant manner has itself added to the febrile atmosphere of uncertainty, although the Treasury doubtless hopes that the deceptions encased within these proposals will have passed its targeted audiences by – an example being the attendees at the Chatham House event in London addressed by ‘Paulson’ at the beginning of July. These people will have been easily impressed by anything that the Secretary of the Treasury might have told them – the purpose of such presentations being to build an unthinking ‘consensus’ (in London, especially) for the treacherous ‘reforms’ that the corrupt ‘Paulson’ Treasury is putting forward.

The so-called long-term proposals (with no timeframe mentioned) would involve, to begin with, a revolution in the status of all US financial institutions. All lenders equipped with Federal deposit insurance would be granted a brand new charter certifying them as a Federally insured depository institution. All insurers offering retail products involving some degree of Federal guarantee, would be chartered as a Federal insurance institution, under the direct regulatory control (see above) of the Treasury. Finally, all other types of financial institution would receive a charter signifying their status as a Federal services provider. Note the crucial use of the adjective ‘Federal’ here: what is intended is the usurpation or duplication by the Federal Government (it is not yet clear which) of ALL the regulatory functions currently exercised by the State Governments. Whether usurpation or duplication is intended, this proposition must have gone down like a lead balloon in State capitals.

Under the first of this final batch of dubious proposals, a so-called Market Stability Regulator, namely the Federal Reserve itself, or else an entity that is subservient to it (unclear), would be established, which, however, would hardly undertake any regulating of the financial markets at all. Instead, it would ‘look out for’ threats to the stability of the US financial system, whether they might originate with mortgage lenders, banks, insurance companies, investment banks, hedge funds or any other category of institution. The only environment in which the so-called new Market Stability Regulator would intervene would be when it had formed the subjective judgment that corrective action needed to be taken to address current risks, or that it is necessary to constrain further risk-taking. This proposal appears to have nothing to recommend it at all.

Establishing further expensive bureaucracies without any teeth is a pernicious practice equivalent to a fudge, and the impression given here is that the Working Group needed somehow to convey the impression that the permissive environment that it was subversively recommending would be watched closely for aberrations, whereas the underlying and thoroughly dishonest intention and consequences of these proposals will be to maximise potential for market abuses across the board.

The next piece of gross mischief would entail the establishment of a so-called Prudential Financial Regulatory Agency, with a brief to regulate financial institutions which have explicit Government guarantees associated with their business operations. Hence this new agency would regulate all institutions equipped with Federal deposit insurance. This agency would also take over the roles of the current Federal prudential regulators (for no discernible reason), such as the Office of the Comptroller of the Currency and the Office of Thrift Supervision.

The agency should, the report argued, focus on the protection of consumers and ‘help’ to maintain confidence in the financial system (by unspecified means). The agency would operate on the basis currently applied to the regulation of the insured depository institutions – in which case, since this new agency would replicate existing practice, why do the existing regulatory arrangements need to be changed? – using the standard capital adequacy requirement techniques, imposing investment limits, circumscribing the scope of an institution’s activities, and directing on-site risk management supervision. The agency would be focused on institutions, rather than operating generically.

On top of all this, a separate new regulator was proposed, to focus on the powerful and wayward Government-Sponsored Enterprises (GSEs) which have been surreptitiously exploited to facilitate fraudulent finance operations, such as the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal Home Loan Bank System. As we discussed in our report dated 26th December 2007, corrupt mortgage lenders have been transferring the full risk and ownership of mortgages to these off-off-budget entities which were established by the Government but positioned immediately upon their foundation, into the private sector, so that they could be excluded from the scrutiny of the Federal Budget process.

The crisis surrounding Fannie Mae and Freddie Mac that blew up during the week ending 11th July 2008 – over seven months after we posted our report on the abuse of the foreclosure process on 26th December 2007 – illustrated the mischievous and destabilising nature of the Working Group’s proposals, because this dimension of the crisis ‘suddenly‘ ran out of control in July 2008, despite the fact that the President’s Working Group had intended to ‘deal with’ the Government-Sponsored Enterprises problem under its ‘long-term’ category, rather than as an immediate, burning issue of the greatest significance, as flagged by our report dated 26th December last year.

This miscalculation alone showed the Working Group to be extremely incompetent, in dereliction of its self-appointed duties, and quite incapable of handling the huge mess for which its own largely corrupt membership has been specifically responsible. Fancy treating the US GSEs as a long-term problem when several of the key GSEs have all along been at the very centre of the machinery of fraudulent finance that is in the process of being widely exposed, and which the Working Group was meant to be addressing! This was surely taking OBFUSCATION too far.

No rationalisation was presented for the proposal that a separate regulator should be established to ‘regulate’ these off-budget entities, other than the spurious one that implicit Federal backing is qualitatively differentiated from explicit Government backing. Presumably the woolly thinking here is that the legal status conferred by Federal Statute on the GSEs would be violated if the proposed Prudential Financial Regulatory Agency were to assume regulatory responsibility for the GSEs – which have hitherto, by the way, escaped all regulation and have thus provided fruitful ongoing scope for organised criminal and financial fraud operations.

The other agencies proposed by the Working Group simply would compound the confusion and the seemingly deliberate dispersion of responsibilities which this dog’s dinner of recommendations perpetrates. Specifically:

• A so-called Conduct of Business Regulatory Agency would cut across the ‘responsibilities’ of the mish-mash of other agencies, establishing the basis for endlessly unresolvable turf wars that lead nowhere. This bureaucracy would ‘observe’ disclosure information and business practices (with no indication of what it would do with these observations), and would also engage in the licensing of certain categories of business firms (so that its personnel would be tin gods).

It would supposedly absorb ‘many of’ the functions of the Securities and Exchange Commission, the Commodities Futures Trading Commission, the Federal Reserve System, of the State insurance regulators and even the Federal Trade Commission. The rationale of all this is left unclear.

However it would do so, according to the Working Group’s blueprint, after an undefined period of uncertainty and therefore turmoil – during which hiatus the usual pork-barrel lobbying operations would have been deployed at full throttle, with no-one knowing which way any of the cats would be liable to jump, and a state of officially contrived chaos having long since been generated.

By this stage, the divisions of regulatory responsibilities will have multiplied to such an extent that every agency would have burgeoning responsibilities overlapping with some or all of the others, so that nothing at all could ever be resolved – a remarkably classical Leninist formula for ensuring the definitive perpetuation of the collective will of a small clique at the centre. Lenin established two orders for his Party-State, under which all the institutions of the State were replicated by Party entities. This meant that a complainant making representations to the State structures would find that his case would be frustrated by the parallel Party structures, and vice versa. This is exactly the state of affairs, albeit a much more fragmented and complicated one, that the President’s Working Group has put forward. This blueprint would have the following overall consequences:

• It would complete the process of discrediting capitalism which the free-wheeling fraudulent finance operations perpetrated by the exposed criminalist operatives and institutions have successfully initiated to date; and:

• By ensuring the perpetual overlapping of responsibilities with their concomitant bureaucratic turf warfare, it would institutionalise and confirm absolute power and freedom of corrupt action for the central controlling élite, namely for a successor group of organised financial criminals who would build upon this new foundation of institutionalised US regulatory confusion, to create the conditions for the next global financial showdown, which would certainly be terminal.

Since, whether ideologues like it or not, the ultimate objective is the destruction of free enterprise and the abolition of all private property except for the privileged criminalised élite, that showdown would be terminal. It is not going to happen, but that is the long-range objective.

Two other expensive US agencies would, under the convoluted blueprint, be tacked on to the contrived ramshackle mess so far recommended. The proposed Federal Insurance Guarantee Corporation, which is to replace (for no apparent reason) the existing Federal Deposit Insurance Corporation (FDIC), would charge premiums to ‘guarantee’ bank deposits and insurance payouts.

No terms are defined here (as is the case throughout this false prospectus), so it is not clear why the FDIC cannot, if really necessary, have its existing statute amended so as to expand or modify its responsibilities in accordance with this proposal. What is wrong with the existing structure?
This unanswered question is applicable throughout.

Finally, the Working Group floated the batty idea of a Corporate Finance Regulator which would supersede the functions of the Securities and Exchange Commission (SEC), and would focus on corporate disclosures, corporate governance, accounting matters, and other issues. Presumably the idea here is that there should be a special agency which sticks its nose into the affairs of US corporations generally – a suggestion that may mask a cynical political objective to subject all US corporations to an officially sponsored espionage system which would be abused, if information gathered by this agency fell into the ‘wrong’ hands. If we assume, as we must, given recent past experience, that the underlying intentions here are malevolent and mischievous, the creation of such an agency would signal to anyone who is not sitting on his or her brains that an ever more socialist United States had essentially finished with capitalism altogether.

There is also an obvious sense that these convoluted ‘regulatory’ proposals have been brought forward in bad faith for yet another reason: their purpose includes the need to deflect criticism that ‘nothing is being done to stop this happening again’. Meanwhile, the socialist European Union has predictably responded with various trial balloons suggesting that the unprecedented display of financial scandal that has been partially exposed, can at long last be exploited as a rationale for the imposition of European-style socialist (Communist) regulation which, by its nature and intent, would smother risk-taking and close off innovation.

For example, Tony Robinson, chief spokesman for the Socialist Group in the Soviet-style European Parliament, said on 3rd July 2008, quite correctly, that the capitalist system had disgraced itself and must now face much stricter regulation. Since we must agree that the capitalist system has indeed disgraced itself as a consequence of the hijacking of the American official structures by organised criminal cadres, it is hard to argue against what Mr Robinson had to say:

‘There is a groundswell of opinion building up for action at a European level. Our group wants a ban on all investment funds speculating on food. We support a proper functioning market, but what we have seen in this crisis is a most distasteful morality where decisions are driven by greed. Hedge funds have used debt to take over companies and strip out their assets. This must stop’.

Leaving aside the ideological hang-ups and ignorance of the market system embedded in these comments, it is a fact that although proposals for a pan-European regulator have not yet been crystallised into a draft EU Directive, the European Parliament has been ‘debating’ three separate proposals to crack down on private equity, hedge funds, and banking sector bonuses.

(Actually, no debate ever takes place inside the European Parliament: rather, the Members (MEPs) address the podium just as they do in the covert Soviet system. Indeed, the European Parliament chamber precisely replicates the Soviet model. In order to complete the transformation, all that would be necessary would be to replace the esoteric European flag above the podium with the familiar bust of Lenin and a nice red star plus a hammer and sickle, and we would all be back to square one. The Editor witnessed this reality in Brussels with his own eyes several weeks ago).

Should such an outcome materialise over time, as intended, the process would have been given decisive added momentum by the pillaging and fraudulent finance that have been exposed since June 2006. This would be a supposedly ‘unintended consequence’ of the organised criminality.

RESULT: EXTREME LACK OF REGULATION ENFORCEMENT
That the proposals put forward by the President’s Working Group are damaging and would have grim consequences has been well attested by people who know what they are talking about.

For instance no less than THREE former Chairmen of the Securities and Exchange Commission, David Ruder, Arthur Levitt and William Donaldson, have condemned these proposals outright, although the language they have used to date has been inappropriately circumspect.

Their general view is that a Treasury initiative to adopt the ‘principles-based’ regulatory approach applied by the Commodity Futures Trading Commission would be ‘a mistake’ (16) . David Ruder, an SEC Chairman under President Reagan, has commented that:

‘It’s not at all useful for the Securities and Exchange Commission to function on the basis of ‘a prudential-based attitude’ in which regulators solve problems by discussing them informally with market participants and asking them to change… we have an enforcement approach’ (17).

For his part, the former SEC Chairman, Arthur Levitt, a Bloomberg Board Member, has commented:

‘That proposal does more violence to protecting America’s investors from the standpoint of transparency as anything in the Paulson proposal’ (18) – referring specifically to substitution of a ‘principles-based’ approach for the tried and tested (until wantonly unenforced) rules-based approach which the existing securities market legislation requires of the SEC.

As matters stand the SEC is, however, considering the easing of its rules to allow foreign stock exchanges and brokerages to sell securities direct to US investors, under supposed surveillance by overseas regulators (such as the British Financial Services Agency) ‘who have rules that are similar to those in the United States’ (19).

In other words, even as we speak, the Securities and Exchange Commission is thinking of watering down its currently poorly enforced rules-based system to allow various foreign stock exchanges and brokerages to deal directly with US investors, rather than going through US intermediaries – so that there would be no control over the volume of dodgy financial ‘products’ that could soon be sold back into the United States, given that non-institution US investors would not necessarily be subjected to any surveillance at all. This might very well be hazardous in the future.

As for the immense problems surrounding derivatives – leveraged, securitised, hypothecated products yielding accruals that are not denominated in real US dollars, but rather exclusively as digitised entries generated electronically in just nanoseconds on bank statements – the Working Group’s proposals sidestepped them altogether: a sure indication that the real purpose of these proposals has never been to ‘solve’ any of the intractable problems created by the invasion of the capitalised system by organised crime, but rather that their purpose is precisely to obfuscate what has been happening so as to draw a veil over the criminal activities that have led to this crisis.

The irresponsible securitisation of ‘sub-prime’ loans and the hoodlum practice of mixing them up with fraudulent paper backed by no assets at all, were not even addressed.

THE ‘PROGRAMS’, OMEGA PONZI SCAMS, ETC.
Exotic investment schemes marketed by scamsters promising sky-high returns into which many Americans entered and ploughed their savings a number of years ago, and which have not paid out, may have purported to be exempt from registration under the Securities Acts of 1933 et seq. [see Glossary below] and in terms of State securities registration requirements.

Such unregistered schemes, unless narrowly they are exempt from registration in conformity with relevant stringent statutory restrictions (such as being confined, for instance, to no more than 35 subscribers nationwide), are all illegal and violate the National Association of Securities Dealers (NASD) and SEC regulations, and were/are also further illegal as they may not have been registered with the relevant State Securities Commission.

When considering such participations, such US investors, in conformity with the Prudent Man Rule under the 1933 Act [see Glossary] should, in performing their Due Diligence, have been in receipt, and should have reviewed, the necessary registration and prospectus documents meeting the requirements of the NASD, the SEC and State Regulators.

In cases where the issuer was a bank, the participants have undoubtedly been victimised. In all other instances, they will have acted on the basis of fraudulent documents which made them co-conspirators. The issuers were and remain engaged in Ponzi schemes, as we have several times reported [see Glossary and Appendix] and are all co-conspirators and open to prosecution under R.I.C.O. and other relevant US legislation, including multiple anti-money-laundering legislation.

Furthermore, it is likely that some American participants will have signed Non-Disclosure forms or agreements, a fatal error which will have meant that they can have no recourse to US authorities for relief from being scammed, not least because in having participated in any of these schemes and signing such forms, they became co-conspirators themselves, as indicated.

They cannot therefore seek protection from the relevant regulators, and neither can they disclose their participations, especially where money-laundering will likely have been intended, since this presupposes tax evasion: and under the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982, US taxpayers are required to report all sources of income, wherever it was earned anywhere in the world. It follows that all receipts by US taxpayers since the passage of this Act which have not been reported to the Internal Revenue Service are taxable, which means that all US taxpayer holdings in offshore accounts that are not declared for tax are vulnerable to payment of the tax and penalties. Imprisonment is also dished out to tax evaders in the United States with abandon.

But the participants in these programs have received nothing and have so far forfeited 100% of their investments. Having signed Non-Disclosure documents purporting to protect the program organisers or distributors from the consequences in the United States of their criminality, and the participants from the consequences inter alia of prospective tax evasion and of co-conspiring in a felonious transaction, some participants have been left dangling and are at the mercy of ruthless MK-ULTRA-style perception manipulators who have been managing their expectations for years.

Under the regular securities laws of the United States, investors and participants have to show source of funds. How can they take receipt of the proceeds of these ‘program’ and Omega-type Ponzi schemes without exposing themselves to US authorities, in many cases with prospectively grievous consequences?

These participants need to ask themselves: are the websites that may have been managing their expectations for years disclosing both sides of the equation, or have they simply been expressing justified anger and frustration at the brazen evil of the high-level, well-connected perpetrators of these scamming programs, thus deceiving their intended readerships by failing to look at the other side of the issue, namely the possibility that the scamsters may have compromised the investors?

They also need to consider whether it is likely that the hitherto ‘protected’ perpetrators of these scams have, all along, also been relying upon their knowledge that their victims may be impotent because they may be engaged in prospective tax evasion, as a rationale for the integrity of the Greenspan-Bush Sr. ‘Never-Pay’ model. In this connection, it is axiomatic that crooks always seek to compromise their victims, thereby ensuring, for instance, that they cannot testify against them.

In the case of the Swiss banks that marketed such participations, their first priority is understood to have been to obtain the targeted investor’s signature on the coveted Non-Disclosure document. Then the participant was typically asked to prove his or her funds. Thirdly, the participant may have been requested to travel to Europe, or to courier funds to the bank’s European address, where their account would have been be opened. In cases where very large amounts were put up, the bank’s aircraft was actually dispatched to collect the participant and his funds..

Participants in these schemes may be caught, if any of these unfortunate conditions apply to their circumstances. Co-conspiracy is a function of motive. If the motive was to receive inordinately high yields and/or to evade taxes in breach of the Prudent Man Rule, TEFRA and/or Internal Revenue Service regulations, it is not at all clear on what basis expectations of repayment of principal with interest may be predicated. The fact that the perpetrators (‘principals’) of these scams are indeed despicable, ruthless snakes is no comfort for the participants because the perpetrators may have taken care to ensure that those whom they have scammed are co-conspirators as well as victims.

Even more disconcertingly, the professional perpetrators of these fraudulent finance operations were fully aware of what they were doing from the outset, and may have deliberately ensured, in these cases, that their participants became co-conspirators and would therefore become impotent to recover their funds, which the perpetrators always intended to steal.

Their evil intentions will have been based upon extensive experience of the psychological reality that victims of financial Ponzi and Pyramid scams often collapse into a state of permanent denial, unable to move beyond the mental barrier that they have lost everything. This attitude is typically associated with embarrassment at the fact that the victim has been scammed, a state of mind akin to the humiliation of being mugged or the victim of common theft.

What has been achieved to date as a direct consequence of these exposures, though, is that life has been made extremely uncomfortable for the professional and official sector perpetrators of all categories of fraudulent finance, and will most certainly become more uncomfortable day by day – as official enforcement procedures, which grind slowly but surely, bring more and more decisive pressure to bear on these snakes. Despite everything that has had to be said above, this may still provide some minimal degree of comfort, no doubt, for the victimised participants; but it may not alleviate their problems or their suffering.

What we can say with confidence is that the prevailing sense of pessimism in the United States is misplaced. Perceptions are often slow to catch up with reality. We are being bombarded with data which has almost no bearing on the current environment, which can be summed up as follows: the crooks are on the run, are being hounded day and night, have nowhere to turn, did not anticipate what was about to hit them, and have been caught completely unprepared for the onslaught.

S.E.C. ‘CORRUPTLY ENGAGED IN OWN ACCOUNT TRADING’
And here is another exposure: the Securities and Exchange Commission – still the chief securities market regulator, no less – is itself apparently corrupt. For instance, it has failed to enforce its own regulations, and has only (it appears) been galvanised into action very recently, in response to the cacophony generated inter alia by our reports. No-one has been impressed by Mr Cox’s statements recently, because the failure of the SEC to do its job properly has become widely known.

The SEC irresponsibly dismantled their own enforcement division, and to make matters very much worse, have been engaged in trading, or allowing insiders to trade, for their own account.

For what purpose? The likelihood must be that SEC personnel have been trading for their own personal enrichment, taking their cue from the Black House: the nefarious principle being that if the President of the United States and his most senior colleagues are content to exploit public office for self-enrichment purposes, then what is to stop lesser officials doing the same?

The fact that the Securities and Exchange Commission, which exists for the purpose of regulation only, has reportedly branched out into participating in exotic money-making programmes instead of concentrating on its job of regulating the securities sector, provides us with a further indication of the extreme decadence of the US financial system which can hardly hope to recover unless such grotesque abuses are eliminated.

COUNTER-PROPOSALS FOR CLEANING UP THE MESS
It is perfectly clear to anyone who is not sitting on their brains that the so-called ‘Paulson’ Treasury proposals, a.k.a. the mish-mash of half-baked notions served up by the President’s Working Group on Financial Markets, is not fit for purpose and should be relegated to the dustbin of history with immediate effect. It is further clear that these messy proposals have actually exacerbated the crisis by introducing new dimensions of uncertainty surrounding future US Government policies, thereby further undermining confidence in an environment so febrile that the entire edifice of fiat money cards has been teetering on the verge of collapse anyway.

Given the perverse effects of these proposals on financial market confidence, we can legitimately go further, and accuse the Working Group of irresponsible behaviour which is tantamount to the financial criminality which the proposals are intended to obfuscate.

To place consideration of the problems surrounding the Government-Sponsored Enterprises in the ‘long-term reform category’ when, within months of our report on the subject last December, this central dimension of the overall crisis blew up in the Working Group’s faces, surely provides all who ‘need to know’ with sufficient evidence of the Working Group’s incompetence, let alone its clearly mischievous intent, to warrant the Working Group being closed down forthwith – before it does any more damage, like the proverbial elephant in the china shop.

Michael C. Cottrell, M.S., the securities markets expert, has therefore prepared the following basic recommendations, which should be substituted for the cack-handed and extremely damaging false prospectus promulgated last March by the disreputable President’s Working Group on Financial Markets, fronted by this ‘Paulson’ fellow.

MR COTTRELL’S COUNTER-PROPOSALS ARE AS FOLLOWS:

(A) Comprehensive funding of the necessary enforcement structures, which must remain intact. The organisations most suited for this function remain the Securities and Exchange Commission and the Federal Trade Commission. Before summarising Mr Cottrell’s proposals, here are some examples of what has happened when these regulators fail to do their jobs properly, or at all:

(1) The Securities and Exchange Commission (SEC): This entity must enforce its regulations with vigour, in the context of the further reforms that Mr Cottrell recommends, below:

The Chairman of the Senate Banking Committee, Christopher Dodd, and Senator Jack Reed, have asked the Government Accountability Office (formerly the Government Accounting Office, GAO) to investigate why sanctions imposed by the SEC plunged by 51%, to $1.6 billion, in the regulator’s most recent fiscal year. According to the SEC’s Annual Reports, it opened 15% fewer probes during the same period, than in the preceding fiscal year (20).

For instance, the Securities and Exchange Commission failed to enforce its regulations in the case of American Business Financial Services, Inc. (ABFS), located in Philadelphia, PA, which operated from 1988 until it declared bankruptcy in January 2005.

This case is revealing in the context being considered here.

ABFS financed its operations by selling its notes to the general public, by means of newspaper advertisements and mass mailings, which promised high interest yields. The notes it sold carried no collateral and were not insured, so that they were worthless when ABFS declared bankruptcy (21). More than 22,000 individual investors lost a total of approximately $750 million. The bankruptcy trustee has filed suit against Bear Stearns & Co., J. P. MorganChase & Co., Morgan Stanley and Crédit Suisse, to recover monies lost when these investment banks allegedly allowed or enabled ABFS to overstate the value of assets on its books (22).

ABFS extended loans to borrowers burdened with poor credit, worth more than $6.0 billion in the aggregate, which were then packaged for marketing purposes, but which essentially represented securitised pools of sub-prime loans. ABFS also secured cash from individual investors by selling the investors uncollateralised notes via public offerings (23).

The investment banks converted the sub-prime loans and uncollateralised notes into ‘interest only strips’, or ‘residuals’ which represented ‘the right to receive future cash flows from securitised loans’ (24). ABFS assigned to these securities a value much higher than their actual worth because the falsification of these values made ABFS look more financially sound than was in fact the case.

Specifically, ABFS booked more than $500 million in ‘fictitious assets’ when the investment banks allowed ABFS to underestimate early repayments of the ‘sub-prime’ loans. ABFS assumed its had a 23% prepayment rate when, in reality, Crédit Suisse had questioned the percentage as being too low. In fact, repayment rates were running at between 30% and 35% of total such ‘assets’ (25) .

Wall Street investment banks finally stopped securitising AFBS sub-prime loans when one investment bank received a letter dated 15th May 2003, addressed to the Federal Bureau of Investigation (FBI) and the SEC asking: ‘Who is protecting these (AFBS) investors?’

Notwithstanding this state of affairs, the Securities and Exchange Commission did not launch an investigation into the behaviour of ABFS until 2004, when ABFS asked for SEC approval to enable it to make another public offering (26). In this, as in so many other instances, the US Securities and Exchange Commission simply failed to enforce its own regulations.

We have summarised these regulations in our reports since 2006, in case this fact had escaped the SEC’s notice. It hasn’t escaped the notice of the financial community generally, so we are entitled to ask why the Securities and Exchange Commission appears to have been an exception.

The SEC regulations of specific relevance to these issues that NEED TO BE ENFORCED include the following [see also the usual Annex at the end of this report].

These details have been published here for at least 18++ months, so as to emphasis the chronic necessity of substituting the Rule of Law for the Law of the Jungle:

• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957

(2) Federal Trade Commission: This Government structure has authority to investigate fraudulent transactions in all markets.

According to a plea bargain agreement announced on 8th April 2008, a former Board Member at the New York Mercantile Exchange pleaded guilty to two felony counts relating to illegal natural gas trading. Mr Steven Karvellas, aged 48, made trades and then waited to watch how they turned out before assigning the trades either to his own account or to his client’s account – an abuse referred to as ‘trading ahead of the customer’, which is a violation of the SEC’s Fair Dealing With Customer rules. Karvellas was a floor Exchange Board Member of the publicly traded Nymex Holdings, Inc., and indeed headed up its compliance review committee when the illegal trades took place (27).

Under the supervision of the Commodity Futures Trading Commission (CFTC), floor brokers such as Mr Karvellas can operate both as broker for customers and trade for own account operations. This practice is referred to as the ‘dual trader’ mode, with the floor broker under an obligation to act at all times in the customer’s best interest, a responsibility that entails an obligation upon the broker to seek the best possible prices for the customer 28 .

Ironically (perhaps not, since we are of course dealing with the familiar double-mindedness here), in a letter addressed in 2002 to Nymex Holdings members as part of his campaign for re-election to the Board, Mr Karvellas opined that ‘the shocking collapse of Enron indicates that our Exchange does wear a white hat in the financial world. We illustrate how markets should operate, honestly and with openness and transparency that gains the public’s trust’ (29).

In January 2008, a Grand Jury subpoenaed a five-year-old trading ticket related to this investigation and to Mr Steven Karvellas, who pleaded guilty to tampering with physical evidence by ordering a subordinate to destroy the subpoenaed trading ticket (30).

Nymex, which has been or is currently being acquired by the Chicago Mercantile Exchange (CME, Inc.), and other floor exchanges, have been financially hurt by the emergence of electronic trading, and have attempted to reduce costs and to speed up the ‘open-outcry’ process [see Glossary] (31).

But floor trading remains vulnerable to manipulation: for instance, in 2005, 15 traders at the New York Stock Exchange (NYSE) were indicted on charges of cheating investors. Although many of these traders actually won their criminal cases, the Exchange realised that it had to ‘do something’, and upgraded its surveillance systems at a cost of about $20 million (32).

These examples, which could be replicated here ad nauseam, illustrate the absolute necessity for a regulatory régime that is underpinned by enforcement, which must be implemented without fear or favour at all times – so that everyone participating in the financial markets is aware of the severe consequences of any breach of the rules and regulations.

Talk of operating on the basis of relatavist ‘principles’ is not only irresponsible and unprofessional: it encourages the misplaced belief among the easily swayed and the corrupt, that the ‘way forward’ need not include enforcement as conceived in the 1930s, so that everyone can feel comfortable and at ease – a recipe for the proliferation of fraudulent finance on an open-ended basis.

Moreover it is crystal clear that the dishonesty, hesitation and the sheer confusion surrounding the ‘Paulson’ proposals have severely exacerbated a fragile situation and the crisis of confidence which the criminal incompetents in charge of US financial affairs have never intended, on the basis of the massive evidence of their ongoing corruption, should be addressed in an orderly fashion, since their agenda has all along diverged from the public interest.

Almost as though it had suddenly woken up from a long slumber, the SEC was reported to have launched a probe on 13th July 2008 into the manipulation of stock prices through the spreading of false rumours, focusing on compliance controls which are supposed to be applied by traders and investment houses. This initiative appeared to mimic a similar attempt by the UK Financial Services Authority FSA) in London, to crack down on rumour-mongering and short-selling in the UK market following the plunge in the shares of HBOS (Halifax Bank of Scotland) last March.

The FSA was unsuccessful in its search, suggesting that the SEC’s response represents a belated cosmetic attempt to be seen to be ‘doing something’, since the SEC must certainly be aware of the FSA’s failed investigation. However nothing that the US regulator does now, with the benefit of any hindsight and with the fraudulent prospects implied by the Treasury’s proposals hanging over its head, can make up for its past failure to enforce its own regulations – as a consequence of which fraudulent securities operations/scams have assumed colossal and, as we have been observing, catastrophic proportions, in recent years.

The SEC’s failure and dereliction of duty is no reason for abandoning the enforcement approach in favour of a contrived, weak ‘principles-based’ approach. On the contrary, what remains essential is proper and rigorous enforcement of appropriate regulations.

(B) Mr Cottrell insists that the following structure and disciplines should be created and imposed:

Office of Inspector General for Financial Markets Compliance (OFMC):
A new regulatory entity with the function described by its title should be established by Statute, who would be required to report directly to the Chairman and ranking Member(s) of the following US Congressional Committees, who would be considered to be their superiors (Bosses):

• The US Senate Financial Services Committee.

• The US House of Representatives’ Financial Services Committee.

All management and field personnel employed by the Office of the Inspector General for Financial Markets would need to be fully trained and qualified compliance officers. Specifically:

• They must be field-tested and recognised as licensed compliance officers, and they must all be licensed under the following régimes:

(1) Financial Industry Regulatory Authority (created in July 2007 through consolidation of the NASD (National Association of Securities Dealers) and the NYSE (the New York Stock Exchange) member regulation régimes [see also: Glossary]) with respect to the following examinations:

• Series 24 [General Securities Principal];
• Series 27 [Financial and Operations Principal];
• Series 4 [Registered Options Principal];
• Series 51 [Municipal Fund Securities Principal]; and:
• Series 53 [Municipal Securities Principal].

(2) They must be licensed members of NYSE Member firms.

(3) They must be licensed as US Treasury compliance officers.

Nothing short of the deployment of management and field personnel qualified to these demanding industry standards will suffice. Because this is so, it is self-evident that the half-baked, confused and deliberately fragmentary proposals put forward by the President’s Working Group, which are intended to OBFUSCATE the situation and to lodge total power in the hands of the Presidency by default, with no checks and balances at all, represent a fraudulent prospectus, which should be consigned to oblivion forthwith. NO FURTHER CONSIDERATION SHOULD BE GIVEN TO THEM.

(C ) Michael Cottrell further demands (recommends is much too weak a word here) that The Glass-Steagall Act of 1933 must be re-enacted in order to re-establish once and for all the very stringent regulatory requirements enshrined in the 1933 and 1934 Securities Acts.

In the same context, and in parallel, the divisive Gramm-Leach-Bliley Act – written by lobbyists for the banking sector – must be repealed.

(D) Regulation of Credit and Debt Derivatives:
An essential further reform will be the development of overdue new securities regulations specifically focused on the creation, use and risk limitation of structured instrument vehicles (credit and debt derivatives). These new regulations would be enforced by the Securities and Exchange Commission (and the Federal Trade Commission, as appropriate), and of course subject to compliance oversight by the trained personnel of the newly established Office of the Inspector General for Financial Markets Compliance [see above].

(E) Finally, the revitalised regulatory regime for all US financial markets will be seen to be entirely rules-based, with all ‘legacy’ ‘principles-based’ thinking and language expunged from the system, which must be backed up by rigorous enforcement applied impartially and across the board.

SEC, FTA AND OFMC management and field personnel would be well remunerated, but at the same time subject to specified and appropriately severe sanctions in cases of official corruption within these structures. One reason why the regulations have not been properly enforced, or applied at all, in recent years is that the existing agencies, and/or certain personnel within them, have been corrupted. Fish rot from the head.

CONCLUSION
This far simpler regulatory régime requires a minimum of new legislation, building upon existing regulatory structures and experience, with the introduction of precisely ONE new US agency (the OFMC), compared with SEVEN new burdensome, confusing, bureaucratic, intentionally overlapping, obfuscatory agencies as proposed by the Working Group on Financial Markets (33).

Therefore, these straightforward reforms, instead of being spurious and deliberately opaque and spread out over an indeterminate timeframe, exacerbated by the carrying out of vague ‘studies’ as specified in the ‘Paulson’ proposals, could be implemented within a very limited timeframe at an early stage of the next Presidency. Establishing ONE new agency instead of SEVEN should, of itself, provide a powerful incentive for adopting Mr Cottrell’s straightforward proposals and for rejecting the hugely expensive and mischievous dog’s dinner put forward by the Working Group.

Such an initiative would do more to restore confidence in the battered US financial markets than innumerable further confused announcements by the ‘Paulson’ Treasury and other intermeddlers, and would place the incoming Administration on a sound financial market footing, without which everything it touches will disintegrate as has happened under the criminalised Bush II Presidency.

In short, these are straightforward, practical reforms which can be legislated for and implemented quickly. They can also be publicised with advantage ahead of their implementation, so that the US and world financial markets are made appropriately aware of the smack of firm, sound and decisive governance, with all that this approach will imply for the restoration of confidence in the battered financial markets in the United States and worldwide. (34).

Notes and References:

1. Howard Abadinsky, ‘Organized Crime’, 6th Edition, Belmont,
Wadsworth Thompson learning, 2000, pages 49-58

2. Gary Giroux, Ph. D., ‘A Short History of Accounting and Business’, available at: http://acct.tamu.edu/giroux/financial.html (Internet), page 1.

3. Giroux, op. cit., page 1.

4. Giroux, op. cit., page 2.

5. Michael C. Cottrell, M.S., ‘Elite Power & Capital Markets’ thesis submitted in partial fulfillment of the requirements for Master of Science, Mercyhurst College, 2001, page 33.

6. Cottrell, op. cit., page 33.

7. Cottrell, op. cit., page 33.

8. John H Hollands, Acting Director, Investment Company Division, Securities and Exchange Commission (SEC), ‘Government Regulation of The Distribution of Investment Company Shares’, dated 8th October 1941, page 2.

9. Hollands, op. cit., page 2.

10. Hollands, op. cit., page 2.

11. Hollands, op. cit., page 2.

12. Hollands, op. cit., page 2.

13. Hollands, op. cit., page 2.

14. ‘Treasury’s Summary of Regulatory Proposal’, The New York Times Company, 29th March 2008, available at: http://www.nytimes.com (Internet).

15. Kara Scannell and Michael R Crittenden, ‘Treasury’s Blueprint: the View from Washington’,
The Wall Street Journal, 31st March 2008, Section A, page 15.

16. Jesse Westbrook, ‘SEC Overhaul Bid by Bush Condemned by SEC Chairman (Update 1)’, New York, Bloomberg, L.P., 8th April 2008, available at: http://www.bloomberg.com (Internet), page 1.

17. Westbrook, op. cit.,, page 1.

18. Westbrook, op. cit., page 2.

19. Westbrook, op. cit., page 2.

20. Westbrook, op. cit., page 1.

21. Steve Strecklow, ‘Subprime Lender’s Failure Sparks Lawsuit Against Wall Street Banks’,
The Wall Street Journal, 9th April 2008, Section A, page 1.

22. Strecklow, op. cit., page A1.

23. Strecklow, op. cit., page A14.

24. Strecklow, op. cit., page A14.

25. Strecklow, op. cit., page A14.

26. Strecklow, op. cit., page A14.

27. Aaron Lucchetti and Gregory Meyer, ‘Dual Traders Under Fire’, The Wall Street Journal,
9th April 2008, Section C, page 1.

28. Lucchetti and Meyer, op. cit., page C18.

29. Lucchetti and Meyer, op. cit., page C1.

30. Lucchetti and Meyer, op. cit., page C18.

31. Lucchetti and Meyer, op. cit., page C18.

32. Lucchetti and Meyer, op. cit., page C18.

33. The seven new agencies recommended by the President’s Working Group on Financial Markets, which of course obfuscate the regulatory environment out to infinity, with intent, are: Mortgage Origination Commission; Market Stability Regulator; Prudential Financial Regulatory Agency; Government-Sponsored Enterprises Regulator; Conduct of Business Regulatory Agency; Federal Insurance Guarantee Corporation; and: Corporate Finance Regulator.

34. The one dimension of Mr Cottrell’s practical reforms that will require an appropriate lead-time concerns the recruitment of the necessary trained and licensed management and field compliance personnel for the new Office of the Inspector General for Financial Markets Compliance (OFMC).

In addition to the need to remunerate such expert personnel sufficiently well not least in order to minimise the temptation to succumb to bribery (which has bedeviled enforcement of late), financial compensation must reflect the expertise of recruited staff and the exceptional importance of their responsibilities. At the same time, it will not be necessary to recruit a large compliance staff. A tight ship is recommended, given that a modest staff can be motivated to higher levels of achievement, especially since the recommended ethos would be one of sober determination to stamp out market abuses and corruption generally. Despite the ravages inflicted by the permissive financial market environment in recent years, it is believed that the pool of such qualified experts who are keen to enforce the Rule of Law in the United States remains of sizeable proportions.

GLOSSARY OF U.S. FINANCIAL MARKET DEFINITIONS

References only entries specifically germane to the market issues purportedly addressed by the President’s Working Group on Financial Markets, and relevant to Mr Cottrell’s alternative proposal:

• Annunzio-Wylie Anti-Money Laundering Act of 1992:
This legislation enlarged the definition of ‘financial transaction’, and made money-transmitting, without reporting, a crime. Source: Howard Abadinsky, ‘Organized Crime’, 6th Edition, Belmont: Wadsworth/ Thompson Learning, Inc., 2000, page 411.

• Anti-Drug Abuse Act of 1988:
This law detailed undercover operations involving money-laundering. Source: John Madinger and Sydney A. Zalopany, ‘Money Laundering: A Guide for Criminal Investigators’, New York: CRC Press, LLC, 1999, page 43.

• Anti-Trust Laws:
US Federal legislation designed to prevent monopolies, cartelisation and restraint of trade. Landmark statutes include:
(1): Sherman Anti-Trust Act of 1890, which prohibited actions or contracts tending to create a monopoly and initiated an era of trust-busting;
(2): Clayton Anti-Trust Act of 1914, passed as an amendment to the Sherman Act, which dealt with local price discrimination, interlocking directorates, holding company activities and restraint of trade; and:
(3): Federal Trade Commission Act of 1914, which created the Federal Trade Commission (FTC), with the power to conduct investigations and the power to issue orders preventing unfair practices in interstate commerce. Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Ed., Happauge: Barron’s Educational Series, 2006, s.v. ‘Antitrust Laws’.

•Bailout Bill:
See Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA).

• Bank Holding Company Act of 1956:
This act brought, for the first time, holding companies under the banking regulations, and provided that the holding company was subject to the same regulation and examinations as member banks. A Holding Company is a company that exercises control over another via voting shares. Organisation as a holding company allows a banking firm to engage in other non-deposit taking activities, such as discount brokerage operations, securities underwriting, and general public or industrial leasing.
Sources: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, The Administration of Justice Department, Mercyhurst College, Erie, PA 13th February 2002; Munn, ‘Encyclopedia of Banking and Finance’, page 84; Fitch, Dictionary of Banking Terms, page 225. See: Financial Holding Company.

• Bank Holding Company Act Amendments of 1970:
This legislation expanded the Bank Holding Company Act of 1956 by legislating for a new Holding Company that controls only one bank, and limiting the permissible activities of these entities to those ‘closely related to banking’. The effect of these amendments was to permit one-bank holding companies, such as Bank of New York Company, Inc., to become conglomerates with subsidiaries in non-banking fields without regulation. Sources: Mr Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, op. cit., thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, Administration of Justice Department, Mercyhurst College, Erie, PA, on 13th February 2002; Munn, ‘Encyclopedia of Banking and Finance’, page 87; Thomas A. Eder, Thompson Desktop Financial Directory, Volume 3, Skokie: Thompson Financial Publishing, Inc., 1993, page 252. See: Financial Holding Company.

• Banking Act of 1935:
This legislation implemented changes to the Federal Reserve Board, prohibiting any banker from serving on the Board of Directors, or being an officer or employee, of more than two institutions. Sources: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, The Administration of Justice Department, Mercyhurst College, Erie, PA, 13th February 2002; Munn, ‘Encyclopedia of Banking and Finance’, page 89. See: Financial Holding Company.

• Bank Secrecy Act of 1970:
This legislation, the formal title of which is the Currency and Foreign Transactions Reporting Act of 1970, extended to the Secretary of the US Treasury great flexibility in respect of official definitions of ‘monetary instruments’, which could now all of a sudden include ‘coins and currency of a foreign country, travelers’ checks, bearer negotiable instruments, bearer investment securities, stock on which title is passed on delivery’. The ostensible intention of this law was to deter criminal activity in order to assist criminal investigations by requiring all financial institutions to report large cash transactions and the transportation of such instruments initially exceeding $5,000, (now, amounts that in excess of $10,000). Sources: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, The Administration of Justice Department, Mercyhurst College, Erie, PA, 13th February 2002; See also Munn, ‘Encyclopedia of Banking and Finance’, p.109; John Madinger, Sydney A. Zalopany, ‘Money Laundering: A Guide for Criminal Investigators’, New York, CRC Press, LLC, 1999, page 43.

• Basel-II:
The Bank for International Settlements (BIS), located in Basel, Switzerland, has established and provides the Secretariat for the Basel Committee on Banking Supervision, which consists of senior representatives of bank supervisory authorities and central banks from Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, Netherlands, Spain, Sweden, Switzerland, the United Kingdom and the United States. Basel-II is the comprehensive updated and agreed version of ‘International Convergence of Capital Management and Capital Standards’ revising the 1988, 1996 and 2005 texts to secure an international standard on revisions to supervisory regulations governing the capital adequacy of internationally active banks. Source. and for further information: Basel Committee on Banking Supervision, ‘International Convergence of Capital Measurement and Capital Standards’, Basel, Press & Communications, 2004, available at: http://www.bis.org (Internet).

• Bucket Shop:
An illegal brokerage firm which accepts orders from customers but does not execute them right away, as Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) regulations require. Bucket shop brokers confirm the price that the customer asked for, but in fact make the trade at a time considered to be advantageous to the broker, whose profit is the difference between the two prices. Sometimes bucket shops neglect to fill the customer’s order and just pocket the money. Main source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Bucket Shop’.

• Clayton Anti-Trust Act of 1914:
This law was passed in order to increase competition in business, by restricting the corporate activity of acquiring other competing corporations or the practice of interlocking directorships. Sources: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, The Administration of Justice Department, Mercyhurst College, Erie, PA, 13th February 2002; additionally: Jack C Plano and Milton Greenberg, ‘The American Political Dictionary’, 4th Edition, Hinsdale, The Dryden Press, 1976, page 328. See: Anti-Trust Laws.

• Clear:
(a): In banking: Collection of funds on which a cheque (check) is drawn, and payment of these funds to the holder of the check.
(b): In the securities sector: Comparison of the details of a transaction between brokers prior to settlement; final exchange of securities for cash on delivery. Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Clear’.

• Commodity Futures Trading Commission (CTFC):
An independent agency created by Congress in 1974 which is responsible for regulating the US commodity futures and options markets. The CFTC is responsible for ensuring the integrity of the commodity futures and options markets everywhere, and for protecting market participants against manipulation, abusive trade practices, and fraudulent operations. Primary source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘CFTC’.

• Commodity Futures Contract:
A Futures Contract that is tied to the price movements of a particular commodity. This arrangement enables contract buyers to purchase a specific amount of a listed commodity at a specified price on a particular date in the future. The price of the contract in question is determined using the ‘open outcry’ system on the floor of a US commodity exchange such as the Chicago Board of Trade or the Commodity Exchange in New York. Commodity Futures Contracts are typically based upon (a) meats (cattle and pork bellies); (b) grains (corn, oats, soybeans and wheat); (c) key metals (gold, silver and platinum); and energy products (heating oil, natural gas, and crude oil). Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Commodity Futures Contract’.

• Commercial Bank:
A State or National Bank owned by stockholders that accepts demand deposits, makes commercial and industrial loans, and performs other banking services for the public. The phrase Full Service Bank covers banks that, as is the case with many commercial banks, supply trust services, foreign exchange, trade financing and international banking services. Source: Thomas P. Fitch, ‘Dictionary of Banking Terms’, 3rd Ed., Happauge: Barron’s Educational Series, Inc., 1997, c.v. ‘Comm. Bank’.

• Compliance Department:
A department typically established by brokers and all US organised stock exchanges to oversee market activity and make sure that trading and other activities comply (in the United States) with Securities and Exchange Commission (SEC) and specific Exchange regulations. A company that does not adhere to the rules can be delisted. And a trader or brokerage firm that violates the rules can be barred from trading. Main source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Compliance Department’.

• Compliance Examination:
Periodic bank examination by a Federal regulatory agency to ensure compliance with consumer protection regulations, such as the Community Reinvestment Act, the Equal Credit Opportunity Act and the Truth in Lending Act. Financial institutions are required by law to issue reports at regular intervals – for example, an annual statement of their mortgage lending in the lender’s market area. Compliance examinations are intended to uncover any hidden violations of consumer protection regulations so that remedial action can be taken. Source: Thomas P. Fitch, ‘Dictionary of Banking Terms’, 3rd Ed., Happauge: Barron’s Educational Series, Inc., 1997, c.v. ‘Compliance Examination’.

•Consumer Credit Protection Act of 1968: See: Truth in Lending Act.

• Criminalism: A new word invented by the Editor of this service, meaning the perpetration and exploitation of organised criminal operations in the interests of political strategy and/or one or more secret agendas; noun, ‘criminalist’, an operative or other cadre who engages in criminalist activities and assumes that he is protected and can therefore continue such activities beyond and above the reach of the Rule of Law. The Editor first used this word in the context of Soviet criminal operations, as exposed in Soviet Analyst, and has since extended it to cover the American variant.

• Currency and Foreign Transactions Reporting Act of 1970: See: Bank Secrecy Act.

• Debenture:
A certificate or bond acknowledging a debt on which fixed interest is being paid. Source: Oxford Senior Dictionary, Oxford University Press, 1984.

• Depository Institutional Deregulation and Monetary Control Act of 1980:
This law gave the Federal Reserve Board tighter control over monetary policy. It also required the Fed to assign examiners to examine foreign operations of State member banks, and prohibited the Fed from rejecting any application from a one-bank holding company on the basis of a stock loan, unless that applicant’s financial arrangements were deemed to be unsatisfactory. The applications were to be judged on a case-by-case basis. The Act further proclaimed that collateral was no longer required to support Federal Reserve notes held in the vaults of the Federal Reserve banks, and that the kinds of eligible collateral for Federal Reserve notes were expanded to include those of foreign governments and/or agency or any other ‘asset’ purchasable by Federal Reserve Banks. Sources: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, The Administration of Justice Department, Mercyhurst College, Erie, PA, 13th February 2002; Munn, ‘Encyclopedia of Banking and Finance’, pages 252 and 253.

• Derivative Instrument (Derivative):
A contract the value of which is determined from publicly traded securities, interest rates, currency exchange rates, or market indices. Derivative Contracts are often ostensibly used for the purpose of ‘protecting’ assets against changes in value. Types of derivatives include the following:

(1): Over-the-counter derivative ‘products’, such as currency swaps and interest rate swaps, which are privately negotiated bilateral agreements, transacted OFF the organised US exchanges. In the currency markets, forward delivery contracts allow traders to lock in current prices when buying and selling baskets of currencies for future delivery.

(2): Derivative securities: Bond-like securities created when pools of loans and mortgages are packaged and sold to investors. In the hands of knowledgeable users, derivative contracts have many applications in the floating interest environment, such as managing currency and interest rate risk, or locking financing costs in by swapping floating rate debt for fixed-rate debt.

Derivatives gained public notoriety in the 1990s when a number of corporations and municipalities embarked upon the use of derivatives for speculative purposes (known as ‘taking a view on the market’), and suffered large losses when interest rates moved against them. Source: Thomas P. Fitch, ‘Dictionary of Banking Terms’, 3rd Edition, Happauge: Barron’s Educational Series, Inc., 1997, c.v. ‘Derivative’.

• Disclosure:
Release by listed companies of all information, both positive and negative, that might bear on an investment decision, as required by the Securities and Exchange Commission (SEC) and the stock exchanges. Source: Thomas P. Fitch, ‘Dictionary of Banking Terms’, 3rd Edition, Happauge: Barron’s Educational Series, Inc., 1997, c.v. ‘Compliance Examination’.

• Edge Act:
Passed in December 1919, the Edge Act, under the heading ‘Banking Corporations Authorized to Do Foreign Banking Business’, permitted the establishment of foreign banking corporations that aided in the financing of foreign trade. This allowed US banks to establish branches in foreign countries to accommodate American corporations engaged in foreign trade transactions. Sources: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, his thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science (M.S.), The Administration of Justice Department, Mercyhurst College, 13th February 2002; Munn, ‘Encyclopedia of Banking and Finance’, page 289.

• Equal Credit Opportunity Act of 1974:
Monitored by the Federal Trade Commission (FTA), this legislation seeks to ensure that all US consumers are given an equal chance to obtain credit. The Act prohibits discrimination in the granting of credit on the basis of race, colour, religion, national origin, sex, marital status, age, receipt of income from any public assistance scheme, and good faith exercise of any rights under consumer protection legislation. The US Department of Justice may file a lawsuit under the Act where a pattern or practice of discrimination appears to exist. For further information, see: http://www.usdoj.gov/crt/housing/housing_ecoa.htm (Internet).

• Emergency Banking Relief Act:
Passed on 9th March 1933, this Act was triggered following the national liquidity crisis that followed the stock market crash of 29th October 1929 and the extended ‘bank holiday’ of the 4th-12th March 1933. The bank holiday closed all banks nation-wide for one week by order of President Franklin D Roosevelt, to control the wave of banking failures and to restore confidence in the United States’ battered banking system. This legislation permitted banks to issue new stock, with the new stock exempt from subjecting the holder to be liable for the bank’s previously issued stock. The Act also authorised the issuance of US Federal Reserve Bank notes that were redeemable in lawful money in the United States, as 100% obligations of the Federal Government. Sources: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, Administration of Justice Department, at Mercyhurst College, Erie, PA, 13th February 2002; Moore, ‘The Federal Reserve System’, pages 81-82; Fitch, ‘Dictionary of Banking Terms’, pages 46 and 83.

• Enronisation: A new word coined by the Editor of this service, meaning ‘hollowing out’. Verb: ‘to enronise’; noun: ‘enronist’, a financial criminal who ‘hollows out’ a targeted entity. The essence of the destruction of Enron was that executives and directors formed private partnerships and stole or diverted financial assets or proceeds from the corporation into offshore bank accounts of the partnerships. These diverted monies were then systematically leveraged and hypothecated into high-yield investment and other programs which wound up being far more profitable than Enron itself. Such illegitimate financial arrangements proliferated, so that the original enterprise, Enron, was ‘hollowed out’, while the illicit partnerships prospered, with 100% of the proceeds being held undeclared and untaxed offshore. ‘Enronisation’ strategies are applied not only to companies, but also to whole countries (e.g., Ireland, Zimbabwe, Iceland, probably also Spain (forthcoming)).

• Federal Reserve Act of 1913:
The purpose of this legislation, according to the precise language of the Act, was ‘to provide for the establishment of US Federal Reserve Banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States and for other purposes’. The Act established two basic structures:
(1): A central body known as the Federal Reserve Board; and:
(2): Not more than 12 Reserve banks located throughout the country. The Federal Reserve Board is comprised of seven members appointed by the President of the United States and confirmed by the US Senate for 14-year terms. Sources: Mr Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, his thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, Administration of Justice Department, Mercyhurst College, Erie, PA, on 13th February 2002 Carl H. Moore, The Federal Reserve System, Jefferson: McFarland & Company, Inc., 1990, page 7; Fitch, Dictionary of Banking Terms, page 46.

• Federal Trade Commission Act of 1914:
This legislation established the Federal Trade Commission as the ‘watchdog of competition’, and as a comprehensive regulatory authority empowered to protect the consumer against ‘unfair methods of competition’. Sources: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, the thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science (M.S.), for The Administration of Justice Department, Mercyhurst College, Erie, PA, 13th February 2002; See also: Munn, ‘Encyclopedia of Banking and Finance’, page 383. See: Anti-Trust Laws.

• Financial Future:
A Futures Contract based upon (relating to) a financial instrument. Such contracts usually move under the influence of interest rates: as interest rates rise, contracts fall in value; as rates decline, contracts gain in value. Examples include: Treasury Bills, Treasury Notes, GNMA Pass-Throughs, foreign currencies, and Certificates of Deposit (CDs). Main source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Ed., Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Financial Future’.

• Financial Guarantee:
A non-cancellable indemnity bond guaranteeing the timely payment of principal and interest due on securities by the maturity date. If the issuer defaults, the insurer will pay out a fixed sum of money to holders of the securities. Financial guarantees are further written by banks which are allowed to operate in the insurance business by the Garn-St Germain Act of 1982, which prohibited banks from entering the insurance business. Insurance companies selling bond insurance must be monoline underwriters, a status which precludes their direct ownership by property and casualty insurance corporations. Source: Thomas P. Fitch, ‘Dictionary of Banking Terms’, 3rd Edition, Happauge: Barron’s Educational Series, Inc., 1997, c.v. ‘Financial Guarantee’

• Financial Holding Company: The Bank Holding Company Act of 1956 prohibited any affiliations between banks and insurance companies (referred to as ‘firewall restrictions’). A Bank Holding Company qualifies as a Financial Holding Company if:
(1): Its banking subsidiaries are ‘well capitalised’ and ‘well managed’; and:
(2): It files with the Federal Reserve Board a certification to such effect and a declaration that it elects to become a Financial Holding Company.

Securities firms and insurance companies must undergo a two-stage process: first, they must qualify as Bank Holding companies under the 1956 Act; and secondly they must then qualify as Financial Holding Companies. Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Financial Holding Company’.

• Financial Industry Regulatory Authority (FINRA): FINRA was brought into existence in July 2007 through consolidation of the National Association of Securities Dealers (NASD) and NYSE Member Regulation. It is the largest US non-governmental regulator and covers all securities firms doing business in the United States. FINRA oversees nearly 5,000 brokerage firms, about 172,000 branch offices and more than 676,000 registered securities representatives. Source: Financial Regulatory Authority, corporate information ‘About FINRA’: copyright 2008 FINRA; this document is available from: http://www.finra.org (Internet).

• Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA):
Enacted on 9th August 1989, this legislation addressed the crisis affecting the Savings and Loan Associations (‘thrifts’) after the sector had been ‘enronised’ by the criminalist kleptocracy headed by George H. W. Bush Sr. Also known as the Bailout Bill, this legislation revamped the regulatory, insurance and financing structures, establishing the Office of Thrift Supervision. It created:

(1): The Resolution Trust Corporation (RTC) which, operating under the management of the Federal Deposit Insurance Corporation (FDIC), was charged with closing or merging institutions which had become insolvent and would be becoming insolvent in the future;

(2): The Resolution Funding Corporation (a.k.a. REFCORP), which was charged with borrowing from private capital markets to fund the RTC’s operations to manage the remaining assets and liabilities that had been taken over/assumed by the Federal Savings and Loan Insurance Corporation (FSLIC), a Government-Sponsored Enterprise (GSE), prior to 1989;

(3): The Savings Association Insurance Fund (SAIF), which was to replace the FSLIC as the insurer of ‘thrift’ deposits and would henceforth be administered by the FDIC separately from its bank deposit insurance programme, which then became the Bank Insurance Fund (BIF); and:

(4): The Federal Housing Finance Board (FHFB), which was charged with overseeing the Federal Home Loan Banks.

• The Resolution Trust Corporation was authorised to accept additional insolvent institutions up to June 1995, after which date responsibilities for the handling of newly failed institutions was shifted to SAIF. This typically convoluted mishmash of arrangements successfully (up to a point) masked and obfuscated the reality, which was that the Savings and Loans Associations (S & Ls) had been systematically scammed and ‘enronised’ by the organised kleptocracy, this being the model for the kleptocracy’s subsequent systematic attacks on the US financial bedrock.

• The overall strategy here was to allow the scandal to escalate to the point where Congressional action became mandatory, whereupon Congress was pressurised to establish institutions that the insiders could then exploit – in this case, to buy up vast portfolios of land and assets for cents on the US dollar, which were then used as collateral for borrowings that were in turn leveraged and hypothecated into high-yield trading programmes for the benefit of the corrupt insider community.

Source for technical information (not the commentary):
John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIERRA)’.

• Financial Institutions Regulatory Act of 1978 prohibits management interlocks by banks operating in the same Metropolitan Statistical Area (MSA). However it exempts the smaller banks, and permits interlocks of up to 49% of a bank’s management officers. See also entry: Interlocking Directorates. Source: Thomas P. Fitch, ‘Dictionary of Banking Terms’, 3rd Edition, Happauge: Barron’s Educational Series, Inc., 1997, c.v. ‘Interlocking Directorates’.

• Financial Operations Officer, of a Securities firm: The financial Operations Officer of a securities firm is equally responsible with the Registered Principal [see Principal, of a Securities firm], for the firm’s financial reports to the SEC and the NASD, for the accurate record-keeping of the firm’s Net Capital Account, and for all trades and customer accounts and correspondence, advertising, and sale literature issued by the company. The Financial Operations Officer must also pass the Series 27 (Financial and Operations Principal) as well as the Series 7 (General Securities Representative) Examinations conducted by the NASD; and must further pass written procedures and oral interview prior to assuming this position with the firm. Source: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, the thesis he submitted in partial fulfillment of the requirements for the Degree of Master of Science, The Administration of Justice Department, Mercyhurst College, Erie, PA, on 13th February 2002; NASD, ‘National Association of Securities Dealers, Inc.: Manual’, April 1998, page 3171; NASD, ‘NASD Compliance Check List’.

• Financial Services Modernization Act (FSMA) of 1999, also known as the Gramm-Leach-Bliley Act: This Act repealed parts of the Glass-Steagall Act of 1933 and the Bank Holding Company Act of 1956. It permits commercial banks, merchant banks, securities firms and insurers to affiliate through the structure called the Financial Holding Company. Under the Act, Nationally (Federally) Chartered Banks are permitted to engage in most financial activities through Direct Subsidiaries. The FSMA permitted Financial Holding Companies to:
1: Lend;
2: Exchange;
3: Transfer;
4: Invest for others;
5: Safeguard money or securities (custodial services);
6: Engage in insurance activities, including insuring and acting as principal, agent, or broker for all types of insurance (including health), and providing financial advice (including the provision of financial advice to investment companies);
7: Issue or sell instruments representing interests in pools of assets that are permissible for a bank to hold indirectly;
8: Underwrite, deal in, or make a market in securities with no limitation as to revenue;
9: Engage in activities outside the United States;
10: Be seized of the following (text is verbatim here): ‘The Federal Reserve Board has determined to be usual in connection with the transaction of banking or other financial operations abroad’.
Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. under: ‘Financial Services Modernization Act’.

• FinCEN [Financial Crimes Enforcement Network] is a bureau of the US Treasury which collects and analyses information about financial transactions in order to combat money laundering, the financing of terrorism, and other financial crimes and fraudulent finance. In line with the double-mindedness which characterises the kakocracy, almost all the senior criminalist figures identified in our reports have themselves been engaged in financing terrorism on a colossal scale.

Created in 1990, FinCEN seeks to realise the potential of critical information-sharing among law enforcement agencies and its other partners in the regulatory and financial communities. While the Financial Crimes Enforcement Network’s task is to safeguard the US financial system from abuses associated with financial crime, including the financing of terrorism, money laundering and other illicit activities, it does nothing the curb the excesses of the criminalists holding high office, who assume that the privileges and power of their offices, together with their prolific use of the ‘Black Arts’ of bribery and blackmail, protect them from the consequences of their actions.

While, therefore, FinCEN’s publicity presupposes that it thinks it is doing a good job, the record inter alia of our reports suggests the reverse. FinCEN was established by order of the Treasury Secretary (Treasury Order Numbered 105-08) on 25th April 1990. In May 1994, its responsibilities were broadened to include regulatory responsibilities, and the US Treasury’s Office of Financial Enforcement (OFE) was merged with FinCEN in October 1994. On 26th September 2002, after the passage of Title III of the USA Patriot Act, Treasury Order Numbered 180-01 [1] made FinCEN an official bureau within the Department of the Treasury.

Under Section 314(a) of the USA Patriot Act of 2001, Federal law enforcement agencies, through FinCEN, are empowered to reach out to more than 45,000 points of contact at over 27,000 financial institutions to locate bank accounts and transactions by persons that may be involved in terrorist financing and/or money laundering. This cooperative partnership between the financial community and law enforcement allows disparate items of information to be identified, centralised, and rapidly evaluated. FinCEN has its headquarters in Vienna, VA. See: www.fincen.gov [Internet].

• Full Disclosure: Public information requirements established by the Securities Act of 1933, the Securities Act of 1934, and the major US stock exchanges. Source: John Downes and Jordan Elliot Goodman, see their ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Full Disclosure’.

• Garn-St Germain Depository Institutions Act of 1982: This Federal law was enacted in 1982, and authorised banks and savings institutions to offer a new type of account, known as the Money Market Deposit Account, which is a transaction account with no interest rate ceiling, to compete more effectively with money market mutual funds. The legislation also gave the Savings and Loan Associations the authority to extend commercial loans; and it gave Federal regulatory agencies the authority to approve, for the first time, interstate acquisitions of failed institutions and also savings institutions. Thus, the Act effectively created the environment for the subsequent enronisation of the Savings and Loan Associations, providing inter alia that:

(1): Savings and Loan Associations were authorised to extend commercial, corporate, business or agricultural loans up to 10% of assets after 1st January 1984;

(2): The deposit interest differential, allowing Savings and Loans and Savings Banks to offer rates on interest-bearing deposit accounts that were 0.25 of 1% higher than commercial banks, was lifted, as of January 1984;

(3): The Act authorised a new capital assistance program, the Net Worth Certificate Program, under which the US Federal Savings and Loan Insurance Corporation and the Federal Deposit Insurance Corporation would be able to purchase novel capital instruments called Net Worth Certificates from savings institutions with net worth-to-assets ratios of under 3%, and would subsequently redeem the certificates as they regained financial health;

(4): The Act permitted Savings and Loan Associations to offer checking accounts (demand deposit accounts) to individuals and business checking accounts to customers who had other accounts;

(5): Savings and Loans were authorised to increase their consumer lending from 20% to 30% of assets, and to expand their dealer lending and floor-plan loan financing;

(6): The Act raised the ceiling on direct investments by savings institutions in nonresidential real estate from 20% to 40% of assets, and also allowed investment of 10% of assets in education loans for any educational purpose, and up to 100% of assets in state and municipal bonds;

(7): The Act pre-empted State restrictions on enforcement by lenders of due-on-sale clauses in most mortgages for a three-year period ending on 15th October 1985, and further authorised State chartered lenders to offer the same kind of alternative mortgage deals that nationally chartered financial institutions were allowed to offer (opening the door to what became the ‘sub-prime’ crisis;

(8): The Act authorised the Comptroller of the Currency to charter Bankers’ Banks, or depository institutions owned by other banks;

(9): It made State chartered industrial banks eligible for Federal deposit insurance; and:

(10): It raised the legal lending limit for National Banks from 10% to 15% of their capital and surplus.

Source: Thomas P. Fitch, ‘Dictionary of Banking Terms’, 3rd Edition, Happauge: Barron’s Educational Series, Inc., 1997, c.v. ‘Garn-St. Germain Depository Institutions Act’. See also: Financial Guarantee; Savings and Loan Deregulation.

• Glass-Steagall Act of 1933:
Legislation passed by Congress which:

(1): Authorised deposit insurance;

(2): Prohibited commercial banks from owning full-service brokerages (Securities Houses of Broker/Dealers);

(3): Prohibited banks from undertaking investment banking activities, for instance underwriting corporate securities or municipal revenue bonds;

(4): Was framed to insulate bank depositors from the risk involved when a bank deals in securities, in order to prevent banks from collapsing.

The Glass-Steagall Act was disabled by the Financial Services Modernization Act (a.k.a. the Gramm-Leach-Bliley Act, a.k.a. the Financial Services Modernisation Act). Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Glass-Steagall Act’.

• Gramm-Leach-Bliley Act of 1999:
See: Financial Services Modernization Act; Glass-Steagall Act of 1933.

• Guarantee: This entails the acceptance of responsibility for payment of a debt or for performance of some obligation if the person (entity) primarily liable fails to perform. The guarantor acquires a Contingent liability – namely, a potential liability that is not going to be recognised in accounts until the outcome becomes probable in the opinion of the company’s accountant. Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Guarantee’.

• Guaranteed Bond: A Bond that is characterised by the fact that the principal and interest are guaranteed by a firm other than the issuer. Both guaranteed stock and guaranteed bonds become, in effect, debenture (unsecured) bonds of the guarantor. Source: John Downes and Jordan Elliot Goodman, see: ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Guaranteed Bond’.

• High-Yield Investment Program:
A sophisticated scam perpetrated in many instances by corrupt elements of US intelligence and associates, masterminded inter alia by the arch-criminalist George H. W. Bush Sr. and his corrupt co-conspirator, Dr Alan Greenspan, the former Chairman of the Federal Reserve Board. Due to overuse of this term by the corrupt operators, it has become more or less synonymous with the generic term ‘fraudulent finance’, and with Ponzi and Pyramid Schemes (known as ‘pyramid-selling schemes’ in Britain). Experts are divided as to whether most High-Yield Investment Programs are Ponzi schemes, or not. Our own investigations suggest that colossal sums of stolen and duplicated funds (as explained in the Wantagate reports) were also used in these schemes, with stolen money being employed as purported back-up for promised and actual initial payouts. However these were never intended to occur beyond the first and perhaps the second layers, as the fraudulent finance techniques were used to entice retail investors into parting permanently with their funds, often after signing illegal Non-Disclosure Agreements.

High-yield investment programs were/are able to collect large amounts of money for the criminalist operators because initial payoffs to first and second round participants (financed from the stolen money in the case of the giga-scams presided over inter alia by the aforementioned master crooks) gave the scams momentum by spreading news of the sizeable initial payments by word of mouth – a situation that prevails as long as new participants can be found and/or old participants are foolish enough to leave their money in the schemes in the hope of gaining high rolled-up interest on their initial investments. Participants are usually attracted by some form of an appeal to emotion or faith that the program will help them to achieve rapid financial freedom. High-Yield Investment Programs may also mirror pyramid-selling schemes by offering current investors incentive commissions, for instance, 9% of investment by the participant on top of promised accruals, to recruit new investors.

Notorious documented High-Yield Investment Programs include:
(1): OSGold, founded as an e-gold ‘imitation’ in 2001 by David Reed, It folded in 2002. According to a lawsuit filed in US District Court in 2005, operators of OSGold may have made off with $230 million.

(2): The second largest documented High-Yield Investment Program was PIPS (People In Profit System), or Pure Investors. Started by Bryan Marsden in 2004, this scheme spanned more than 20 countries. PIPS was investigated by Bank Negara Malaysia in 2005, resulting in Marsden and his wife being charged in a Malaysian Court with some 97 counts of money laundering more than 77 Malaysian ringgit, equivalent to $20 million [New Straits Times, 11th October 2006]. Yet even after these charges were brought, many of Marsden’s followers continued to support him and to believe that they would be seeing their money in future. A similar rationalisation and denial syndrome can be observed in many other High-Yield Investment Program contexts.

(3): Indicted operators or schemes under investigation:
12DailyPro Autosurf (United States: Securities and Exchange Commission); Ginsystem, Inc. (Singapore: Commercial Affairs Department of Singapore); IT4US (United States); PlexPlay (Norway: HegnarOnline, in Norwegian); Solidinvestment (United States).

The foregoing provides merely a preliminary outline of the background to these scams, concerning which a considerable literature now exists. Promoting or perpetuating Ponzi schemes is a criminal offence punishable by jail terms or fines in most countries. The fact that the High-Yield Investment Program monitoring websites publicise disclaimers to the effect that the sites ‘do not promote the programs advertised’ on their websites, does not absolve the operators from criminal liability.

A disturbing feature of this environment is that a large number of High-Yield Investment Program participants persist in participating in further schemes long after they have already lost money in schemes that have either folded, or in respect of which the operator has disappeared. The fact that most of the publicised schemes are openly labelled scams on the relevant Internet monitor boards, even though their operators are themselves criminally liable, suggests that many participants are well aware of the risks they are running, know that the schemes are fraudulent, but choose to put money in them anyway, like addicted gamblers.

Former officials and members of the US armed forces may have been taken in by indications that the operators were officially connected or even that the scams in which they have participated were legitimate because of such alleged connections, including intelligence backgrounds.

The perpetrators play on the understandable anger felt by those who have been scammed, even though they were originally enticed by the US perpetrators into becoming prospectively felonious participants themselves, a condition which leads psychologically to the state of denial that in turn supposedly provides the perpetrators with the protection that they require.

However the operators, sitting on their stolen funds, may well fear the ultimate outcome, should manipulation of the expectations of the scammed investors cease to remain perversely ‘credible’, or those manipulative counterintelligence Psy-Ops initiatives are closed down.

• Hypothecation:
Originally a pledge of property as collateral for indebtedness without transfer of possession to the party extending the loan. This arrangement is common in the case of mortgages. The borrower retains legal ownership of the property but provides the lender with a lien over the property until the debt is paid off. Rehypothecation occurs when a broker pledges hypothecated client-owned securities in a margin account to secure a bank loan.

The fraudulent finance buried inside the ‘sub-prime’ mortgage nexus of scandals was explained in our report dated 26th December 2007 [www.worldreports.org: Archive]. As described in that report, the ‘homeowner’ has been scammed, either he or she has been coerced into signing several top copies of the same document, enabling the lending bank to claim ownership even though the bank has sold the mortgage on the basis of another top copy, for instance, to one of the co-conspiring Government-Sponsored Enterprises; or because the bank has alienated its ownership of the loan to the GSE in question, or has packaged the mortgage with other loans, as well as with worthless securities underpinned by no real asset, and has sold such packages on to parties (usually abroad) which have not performed due diligence.

In our report of 26th December 2007, we advised ALL US ‘homeowners’ facing foreclosure to let the Court know that the underlying contract has been requested from the bank. In most instances, the bank will be unable to supply it, because it has sold on the mortgage to the GSE, having therefore already passed on the risk. People facing foreclosure who ask for the contract can usually expect to be pleasantly surprised at the outcome of their cases.

• Internal Revenue Service (IRS):
The IRS is part of the US Treasury Department, and was officially created by Act of Congress on 1st July 1962. The IRS is responsible for administering and enforcing the Internal Revenue Code (IRC), as established under US Congressional authority, passed in 1913, to levy taxes on the income of individuals and corporations.

In 1939, the IRC was codified from the separate Internal Revenue laws. The IRS Code was further overhauled in 1954, with substantive new provisions being added concerning depreciation, the double taxation of dividends, research and experimental expenditures, carryback on operating losses, tax on ‘unreasonable’ accumulations of surplus, preferred stock bail-outs, and collapsible corporations and partnerships.

Of the enormous changes to the IRC implemented since 1954, the most important for the context we are dealing with here was the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982 which, inter alia, required US taxpayers to report all sources of income, wherever it was earned anywhere in the world. It follows that all receipts received by American taxpayers since the passage of this Act which have not been reported to the Internal Revenue Service are taxable, which means that all US taxpayer holdings in offshore accounts that have not been declared for tax are liable for tax and penalties. Main source: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, for The Administration of Justice Department, Mercyhurst College, Erie, PA, 13th February 2002; see also: Munn, ‘Encyclopedia of Banking and Finance’, page 589.

• Interlocking Directorates:
These reference commercial banks or savings institutions which have individuals on their Boards of Directors who further serve on the Board or Boards of one or more unaffiliated competitor(s) operating in the same marketplace. The US Financial Institutions Regulatory Act of 1978 prohibits management interlocks by banks operating in the same Metropolitan Statistical Area (MSA). But it exempts smaller banks, and also permits interlocks of up to 49% of a bank’s management officers. Source: Thomas P. Fitch, ‘Dictionary of Banking Terms’, 3rd Edition, Happauge: Barron’s Educational Series, Inc., 1997, c.v. ‘Interlocking Directorates’.

• International Banking Act of 1978:
This legislation essentially places American branches and agencies of foreign banks under the supervision of US bank regulators. The provisions included: authorising the Comptroller of the Currency to license and supervise a foreign bank; authorising Federal bank agencies to examine US offices of any foreign bank; subjecting any foreign bank branch or holding company to the Bank Holding Company Act, just like any US bank holding company; and imposing reserve requirements and Federal deposit insurance coverage for foreign banks to the same extent as the US member banks. Sources: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, for The Administration of Justice Department, Mercyhurst College, Erie, PA, 13th February 2002; see: Munn, ‘Encyclopedia of Banking and Finance’, page 563.

• International Banking Act of 1987:
Created a Federal regulatory structure similar to the Federal Reserve to examine the assets and liabilities of foreign banks on-site, and to ensure similar licensing and regulation of non-banking activities of foreign banks. It also required the Federal Reserve to maintain the same competitive equity requirements for foreign banks as for US member banks. Sources: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, Administration of Justice Department, Mercyhurst College, Erie, PA, 13th February 2002; Munn, ‘Encyclopedia of Banking and Finance’, page 563.

• Investment Banking:
The sale and distribution of a new offering of securities, carried out by a financial intermediary (an investment banker), who purchases securities from the issuer as principal, and assumes the risk of distributing securities to investors. Source: Thomas P. Fitch, ‘Dictionary of Banking Terms’, the 3rd Edition, Happauge: Barron’s Educational Series, Inc., 1997, c.v. ‘Investment Banking’.

• Investment Company Act of 1940:
This Act requires that all companies which offer securities or investment advice to the public must register with the Securities and Exchange Commission. For instance, any advisory corporation that offers investment advice (not straight reporting, but advice) must register with the SEC. For those who may be interested, this explains why this service does not offer advice and will not respond to the frequent requests for financial investment advice that we routinely receive. Sources: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, for The Administration of Justice Department, Mercyhurst College, 13th February 2002; Munn, ‘Encyclopedia of Banking and Finance’, page 589.

• Kakocracy: Rule by the worst elements of society exclusively in their own interests and with cynical and permanent disregard for the interests of anyone else.

• Kleptocracy: The ascendancy of a rapacious, thieving class of co-conspiratorial bandits protected by public office that is bent on maximising the open-ended potential of their office and power for personal enrichment and for the furtherance of clandestine agendas divorced from the interests of the people and the constituencies they are supposed to serve. This term is used in these reports even though kleptomania is strictly defined in the Oxford Senior Dictionary as ‘an uncontrollable tendency to steal things, with no desire to use or profit by them’.

The definition is interesting, because it reveals an element of madness that is clearly inherent in the behaviour of the criminalist snakes identified in these reports. This madness can be observed in the rapacious behaviour, for instance, of the arch-criminalist DVD godfather, George Bush Sr., whose avarice for other people’s money notoriously knows no bounds, despite his age, indicating that he chooses to remain unaware of his own mortality: a characteristic of greed which can only be described as symptomatic of mental derangement.

• Leverage, Financial and Investment:

(1): Financial Leverage: Debt in relation to equity in a firm’s capital structure (such as long-term debt, preferred stock, and shareholders’ equity. Financial leverage is measured by the debt-to-equity ratio: the more long-term debt there is, the greater the financial leverage.

(2): Investment leverage: A means of enhancing return or value without increasing investment: for instance, by buying securities on margin with borrowed money. Extra leverage may be achievable if the leveraged security is convertible into common stock.

(3): Note: Option contracts provide leverage, with NO borrowings, offering the prospect of high return for little or no investment.

Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Leverage’.

• Maloney Act of 1938: An amendment to the Securities Act of 1933 which created the US National Association of Securities Dealers (NASD). The legislation promoted the organisation of member securities dealers as a Self-Regulating Organizations (SRO) under the supervision of the Securities and Exchange Commission (SEC) to institutionalise a code of ethics in the securities industry and its enforcement nationwide. NASD members are known as Broker/Dealers, since they represent both clients that buy and/or sell securities, and themselves, as a principal, when they are engaged in underwriting and/or selling a stock or bond issue directly to the public. The NASD is the only firm operating under the Maloney Act. See: NASD: National Association of Securities Dealers. Sources: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, Administration of Justice Department, Mercyhurst College, Erie, PA, 13th February 2002; NASD, ‘National Association of Securities Dealers, Inc.: Manual, April 1998, page 3171.

• Margin Accounts: See Mark to [The] Market and: Margin Requirements

• Margin Requirements:
The minimum amount that a client must deposit in the form of cash or eligible securities in a Margin Account, as is spelled out under Regulation T of the Federal Reserve Board. Regulation T requires a minimum of $2,000 or 50% of the purchase price of eligible securities bought on margin or 50% of the proceeds of short sales. Also referred to as the Initial Margin. Primary source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Margin Requirement’.

• Margin Security:
This is a security that may be bought or sold in a Margin Account. Regulation T of the Federal Reserve Board defines margin securities as:

(1): Any registered security (a listed security or a security having unlisted trading privileges);

(2): Any OTC margin stock or OTC margin bond, which are defined as any unlisted security that the Federal Reserve Board (FRB) periodically identifies as having the investor interest, marketability, disclosure and solid financial position of a listed security;

(3): Any OTC security designated as qualified for trading in the National Market System under a plan approved by the Securities and Exchange Commission;

(4): Any mutual fund or unit investment trust registered under the Investment company Act of 1940. Other securities that are not exempt securities must be transacted in cash. Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Margin Security’.

• Mark to [The] Market:
Adjustment of the valuation of a security or portfolio to reflect current (prevailing) market values. For instance, Margin Accounts are marked to market in order to ensure compliance with financial maintenance requirements. (In UK parlance, the definite article is dropped). Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Mark To The Market’.

• Money laundering:
Passing illegally acquired funds or taxable funds on which no tax has been paid inter alia with the intent to evade tax and to hide the funds from relevant national authorities. American legislation addressing money-laundering includes:

(1): The Bank Secrecy Act of 1970;
(2): The Money Laundering Control Act of 1986;
(3): The anti-Drug Abuse Act of 1988;
(4): The Annunzio-Wylie Money Laundering Act of 1992;
(5): The Money Laundering Suppression Act of 1944; and:
(6): The Terrorism Prevention Act of 1996.

The Money Laundering Control Act of 1986 made money laundering a Federal crime corresponding to the previously passed Organized Crime Control Act of 1970. See separate entries in Glossary.
Sources: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, The Administration of Justice Department, Mercyhurst College, Erie, PA, 13th February 2002; Munn, Encyclopedia of Banking & Finance, page 109; also: John Madinger and Sydney A. Zalopany, ‘Money Laundering: A Guide for Criminal Investigators’, New York, CEC Press, LLC, 1999, page 43; Howard Abadinsky, ‘Organized Crime’, 6th Edition, Belmont: Wadsworth/Thompson Learning, Inc., 2000, page 411; FINCEN, ‘The Global Fight Against Money Laundering’, Financial Crimes Enforcement Network (FINCEN, 1999, available from: http:// www.occ.treas.gov/launder (Internet).

• Money Laundering Control Act of 1986:
This legislation made money laundering a Federal crime corresponding to the previously passed Organized Crime Control Act of 1970. See: Money laundering.

• Money Laundering Suppression Act of 1994: Legislation which required that ‘any person who owns or controls a money services business’ must register with the Secretary of the Treasury. Source: FINCEN, ‘The Global Fight Against Money Laundering’, Financial Crimes Enforcement Network (FINCEN, 1999, available from: http:// www.occ.treas.gov/launder (Internet).

• Municipal Securities Rulemaking Board (MRSB): See Self-Regulatory Organization (SRO).

• NASD: National Association of Securities Dealers:
A non-profit organisation that was formed under the joint sponsorship of the Investment Bankers’ Conference and the US Securities and Exchange Commission (SEC) in order to comply with the requirements of the Maloney Act. NASD Members include virtually all investment banking houses and firms dealing in the Over-the-Counter Market.

Operating under the supervision of the SEC, the basic purposes of the NASD are to:
(1): Standardise practices in the field;
(2): Establish high moral and ethical standards in the securities trading business;
(3): Provide a representative body to consult with the Government and investors on matters of common interest;
(4): Establish and enforce fair and equitable rules of securities trading;
(5): Establish a disciplinary body capable of enforcing the above provisions.

The NASD requires members to maintain ‘quick assets’ in excess of current liabilities at all times.

Within the NASD, a special Investment Companies Department concerns itself with the problems of investment companies and has the responsibility of reviewing companies’ sales literature in that segment of the securities industry.

Michael C. Cottrell, M.S., has described the NASD’s contemporary responsibilities as including the following (to be read in conjunction of the foregoing information):

(1): Nationwide inspections of member firms;
(2): Provision of centralised computerised surveillance of the trading of NASD Automated Quotations, of its sister company NASDAQ;
(3): Enforcement of Securities and Exchange Commission rules and regulations, as well as of its own rules for members;
(4): To review underwriting arrangements for securities offered to the public;
(5): To perform and monitor qualification examinations of personnel of members; and:
(6): To coordinate and cooperate with the SEC, the States and with other Federal agencies.

The responsibilities of the SEC do NOT include trading on own account [see text], a gross abuse of which it has been and continues to be accused. This abuse is inconsistent with its responsibilities as a regulator and is considered by experts to be a scandalous development. See also: Financial Industry Regulator Authority (FINRA). Sources: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘NASD’; Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, The Administration of Justice Department, Mercyhurst College, Erie, PA, 13th February 2002; Munn, ‘Encyclopedia of Banking & Finance’, page 696.

• National Market System: See: Securities and Exchange Commission (SEC).

• Non-Disclosure agreement:
An illegal document which, if signed by a participant to a transaction, precludes any recourse to official regulators for protection after the participant has predictably been scammed, and likewise precludes any legal recourse.

• Office of the Comptroller of the Currency (OCC):
This is the chief regulator of US National Banks. The Comptroller of the Currency is appointed by the President of the United States for a five-year term, with Senate confirmation. The OCC, the supervisory agency covering nationally chartered banks, is the oldest US Federal regulator of financial institutions. The Comptroller of the Currency also serves as one of the three Directors of the Federal Deposit Insurance Corporation. Source: Thomas P. Fitch, ‘Dictionary of Banking Terms’, 3rd Ed., Happauge: Barron’s Educational Series, 1997, c.v. ‘Comptroller of the Currency’.

• Office of Thrift Supervision (OTS):
This US Federal agency was established under the Financial Institutions Reform, recovery and Enforcement Act of 1989 to examine and supervise Savings and Loan Associations (‘thrifts’) and Federal Savings Banks. It replaced the Federal Home Loan Bank Board as the primary regulator of State chartered and Federally chartered savings institutions. It is a bureau within the US Treasury Department. The Director and Chief Operating Officer (CEO) of OTS is appointed by the President of the United States with Senate confirmation, and is also one of five directors of the Federal Deposit Insurance Corporation (FDIC). The fact that the OTS is structured within the US Department of the Treasury parallels the position with the Office of the Comptroller of the Currency. Source: Thomas P. Fitch, ‘Dictionary of Banking Terms’, 3rd Edition, Happauge: Barron’s Educational Series, Inc., 1997, c.v. ‘Office of Thrift Supervision’.

• ‘Open outcry’:
A non-electronic method of communication between professionals on a stock or futures exchange involving shouting and the use of hand signals to transfer information primarily about buy and sell orders. The component of the trading floor where this takes place is often called the pit. The best-known ‘open outcry’ markets in the United States remain the New York Mercantile Exchange, the Chicago Mercantile Exchange, the Chicago Board of Trade, the Chicago Board Options Exchange, and the Minneapolis Grain Exchange. In the United Kingdom, the London Metal Exchange (LME) still makes use of the ‘open outcry’ method. Many traders prefer the ‘open outcry’ system on the basis that physical contact in the pit allows traders to speculate as to the motives or intentions of buyer/seller, so that positions can be adjusted accordingly.

• Organized Crime Control Act of 1970:
See Money Laundering Control Act of 1986; and Money laundering.

• Over-the-Counter:
(1): Of a security: A security that is not listed and traded on an organised exchange;
(2): Of a market: A market in which securities transactions are conducted through a telephone and computer network connecting dealers in stocks and bonds, rather than, as classically, on the floor of an exchange. Over-the-counter stocks are traditionally those of smaller companies that do not meet the listing requirements of the New York Stock Exchange or the American Stock Exchange.

In recent years, however, many companies that qualify for listing have chosen to remain with Over-the-Counter trading, because they consider that the system of multiple trading by many dealers is preferable to the centralised trading approach of the New York Stock Exchange, where all trading in a stock has to go through the Exchange specialist in that stock. The rules for Over-the-Counter stock trading are written and enforced largely by the US National Association of Securities Dealers (NASD), which is self-regulating (see NASD).

Prices of Over-the-Counter stocks are published in daily newspapers, with the National Market System stocks listed separately from the rest of the Over-the-Counter market. Over-the-Counter markets incorporate markets in both Government and municipal bonds. Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Over-the-Counter (OTC)’.

• Pass-Throughs:
Pass-Through Securities: Pools of fixed-income securities that are backed by a package of assets. A servicing intermediary collects monthly payments from issuers and, after deducting a fee, remits or passes them through to the holders of the pass-through security. This device is also known as a ‘pass-through certificate’ or a ‘pay-through security’. The most common type of pass-through is a mortgage-backed certificate, whereby ‘homeowners’’ payments pass from the original lending bank through a Government agency or investment bank to the investors (per the supposed model).

• Ponzi Scheme:
A scam designed to entrap the unwary investor, as described in the following analyses published on this website [see Archive) and in International Currency Review:
(1): ‘Treasongate Update: Omega ‘Ponzi Game’ scams, 13th January 2007;
(2): ‘Treasongate Background: Intel Ponzi Scams’, 22nd January 2007.

So-called ‘lending programs’, a.k.a. High-Yield Investment Programs operating along Ponzi or Pyramid Scheme lines promoted clandestinely inter alia by corrupt elements of the criminalist US intelligence community (including the CIA’s OMEGA OPS scams) will comply with none of these stringent regulations and requirements, and are accordingly, by definition, ALL ILLEGAL IN THE UNITED STATES. This may well be the basis upon which non-payment of these accounts has been predicated. The question therefore arises: why have these illegal schemes been so widespread, having given rise to a colossal constituency of the American ‘broken hearted’, who have been scammed in one way or another but who have been clinging to the hope, like Rip van Winkel, that they, their family trusts or their restless associations of ‘the scammed’, will finally be paid out one sunny day far out into the future?

The generic answer to this question is that the cynical, criminalised fraudster élite, headed by the crooks controlling and inside the intelligence community, have taken precautions to instal their own corrupt operatives within and in control of certain enforcement institutions, including the SEC.

Enron and the Federal Deposit Insurance Corporation (FDIC) have been used to proliferate and perpetuate these illegal securities scams: indeed, it is from operations such as the CIA’s nefarious Enron scamming system, that the derivatives overhang and crisis have mainly arisen.

As a consequence, blind US official (Federal and State) eyes have been turned to what has been going on, the securities regulations have not been enforced with respect to such illegal Ponzi frauds, and the old system whereby anyone involved with trading securities was blackballed for life if caught engaged in irregular activities, has been moribund since the 1970s.

When an uncorrupt SEC Commissioner tried, quite recently, to enforce the regulations, he was removed from his post on some typically trumped-up pretext or other. In other words, the wolves are and have been in charge of the chicken coops.

So key enforcers are, as matters stand, co-conspirators in the despicable, hitherto (but since the Wantagate and the subsequent exposures, no longer) proliferating intelligence community-driven Ponzi Game operations that have devastated an unknown number of American families – with the proceeds channelled through corrupt participating banks into offshore accounts. See Appendix to this report for the narrative of the original Ponzi fraud.

• Principal:
(1): The person with highest authority in a business, or a person for whom another acts as an agent.
(2): A capital sum as distinguished from the interest on it.
(3): See also: Principal, of a Securities firm.
Source: Oxford Senior Dictionary, Oxford University Press, 1984.

• Principal, of a Securities firm:
An NASD member firm is directed by a Registered Principal, who can be the sole proprietor, an officer, a partner, a manager of an office of Supervisory Jurisdiction, and/or a Director of the firm.

The Registered Principal is answerable for all actions taken on behalf of the firm, and all trades submitted by the firm, and all actions of its registered representatives, subject to the rules and regulations of the NASD, SEC and the State of registration. The Registered Principal must pass the Series 24 (General Securities Principal) and also the Series 7 (General Securities Representative) Examinations conducted by the NASD, and must pass the written procedures and oral interview before assuming this position for the firm. Sources: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, the thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, Administration of Justice Department, Mercyhurst College, Erie, PA, on 13th February 2002; NASD, ‘National Association of Securities Dealers, Inc.: Manual’, April 1998, page 3171; NASD, NASD Compliance Check List, Gaithersburg: NASD MediaSource, 1992.

• Principle:
A basic truth or a general law or doctrine used as a basis of reasoning or a guide to action or behaviour; a fundamental truth or doctrine, as of law; a comprehensive rule or doctrine which furnishes a basis or origin for others; a settle of action, procedure or legal determination. Also defined as: a truth so clear that it cannot be proved or contradicted unless by a proposition which is still clearer. Sources: Oxford Senior Dictionary, Oxford University Press, 1984.; Henry Campbell Black, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul, West Publishing Company, 1968, s.v., ‘Principle’.

• Prudent Man Rule:
This is the fundamental American principle that is applicable in respect of professional money management, originally asserted by Judge Samuel Putnum in 1830 as follows:

‘Those with responsibility to invest money for others should act with prudence, discretion, intelligence, and regard for the safety of capital as well as income’ [1830 Massachusetts Court decision: Harvard College v. Armory]. The Prudent Man Rule directs trustees ‘to observe how men of prudence, discretion and intelligence manage their own affairs, not in regard to speculation, but in regard to the management and disposition of their funds, considering the probable income as well as the probable safety of the capital to be invested’. Investments in risky Ponzi and Pyramid Schemes and in ‘programs’ such as those referenced, typically breach the Prudent Man Rule.

• Public Offering Price: See: ‘Underwrite’ below.

• Pyramid Scheme or scam: See: Ponzi Scheme.

• Registered Principal: See: Principal, of a Securities firm.

• Registered Representative, of a Securities firm:
This officer is licensed and authorised to purchase and/or sell stocks, bonds, options, limited partnerships, tax shelters, mutual funds, and variable annuities on behalf of a customer or the firm.

The Registered Representative must have qualified by passing the Series 7 (General Securities Representative) Examination and must be registered with the firm as an authorised representative. Additionally, all licensed representatives must have passed the NASD Series 63 (Uniform State Law) AntiFraud Examination, and must register with each State the firm intends to operate in.

Source: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, The Administration of Justice Department, Mercyhurst College, Erie, PA, 13th February 2002; NASD, ‘National Association of Securities Dealers, Inc.: Manual’, April 1998, page 3201; NASD, ‘NASD Compliance Check List’.

• Risk:
Uncertainty as to whether an asset will earn an expected rate of return, or whether a loss may occur: Various categories of risk apply in the securities market environment:

(1): Delivery risk: The possibility that the buyer or seller of an instrument or foreign exchange may be unable to meet obligations at maturity.

(2): Liquidity risk: The possibility that a bank may have insufficient cash or short-term marketable assets to meet the needs of depositors and borrowers.

(3): Settlement risk: The possibility that the failure of a major bank, or its inability to honour payment commitments in a wire transfer network, could have a domino effect on other institutions, causing similar failures elsewhere. In the United Kingdom, this is usually referred to as ‘systemic risk’.

Source: Thomas P. Fitch, ‘Dictionary of Banking Terms’, 3rd Edition, Happauge: Barron’s Educational Series, Inc., 1997, s.v. ‘Risk’.

• Risk Free Asset:
A non-callable, default-free bond such as a short-term Government security. While such an asset is not risk-free in terms of inflation, it is (given that the Government can always print money) risk-free in a dollar sense. Source: Jerry M. Rosenberg, ‘The Essential Dictionary of Investing & Finance’, New York, Barnes & Noble, Inc., 2004, s.v. ‘Risk Free Asset’.

• Rule of Law, A (indefinite article):
The way this may be defined in the present context is to begin with the word ‘Rule’. A ‘Rule’ is an established standard, guide or regulation, especially a regulation set up by an official authority. It prescribes or directs action or forbearance. The term also covers a regulation made by a Court of Justice or a public office with reference to the conduct of business therein. Hence, ‘A Rule of Law’ encompasses a legal principle, or a body of legal principles, of general application, sanctioned by the recognition of authorities, and usually expressed in the form of a maxim or logical proposition. The word ‘Rule’ is used because in doubtful or unforeseen circumstances it is a guide or norm for the decision of those concerned (Toullier, tit. Prel. No. 17).

Source: Henry Campbell Black, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul, West Publishing Company, 1968, s.v. ‘Rule of Law’.

• Rule of Law, The (definite article): Note that the foregoing diverges from ‘The Rule of Law’. The common interpretation of The Rule of Law is that ‘the Law rules’ or is paramount: in other words that everyone in society, including the Government, operates within the ordered framework of the Law, precluding arbitrary behaviour. It is important to distinguish between the indefinite and the definite article here, because ‘Rule of Law’ has a different meaning, depending on which is used.

• Savings and Loan Deregulation:
The Garn-St Germain Act of 1982 cut Savings and Loan Associations loose from the tight girdle of ‘old-fashioned’, ‘restrictive’ Federal legislation, opening the door wide to the ransacking and enronisation of the ‘thrift’ banking sector, which in turn laid the groundwork for the subsequent giga-financial scandals that are now being exposed. President Reagan unveiled this legislation at a Rose Garden presentation and signing ceremony on 15th October 1982, before an audience of 200 people. Billed as a major piece of deregulation legislation, this law represented nothing less than the US criminal kleptocracy’s charter to ransack and pillage the middle and working classes. For 50 years, American families had relied on Savings and Loan Associations to finance their homes; but Reagan now pronounced that ‘outmoded regulations left over from the 1930s Great Depression’ had been preventing thrift institutions from competing in the complex, sophisticated financial marketplace of the free-wheeling 1980s.

When signing the bill with a flourish, Reagan pronounced: ‘All in all, I think we’ve hit the jackpot’.

But those who ‘hit the jackpot’ turned out, predictably, to be the organised criminal kleptocracy that had infiltrated official structures, could immediately mobilise criminal funds to buy their way into thrift institutions, and were embedded inside the corrupted US intelligence community. A new breed of swashbuckling Savings and Loan executive sprang up on cue, like weeds, out of the rich soil fertilised at the October 1982 Rose Garden ceremony.

Among their leaders was the notorious Neil Bush, then-Vice President George H. W. Bush’s son, who became a Director of Silverado Savings and Loan, of Denver, CO, and Andrew Cuomo, the son of New York Governor Mario Cuomo, who tried to buy Financial Security Savings of Delray Beach, Florida. The former Governor of Illinois, Dan Walker, bought First American Savings of Oak Brook, Illinois. Within 18 months of the Rose Garden signing, Edwin Gray, Chairman of the Federal Home Loan Bank Board (FHLBB) was provided with a grim, classified report and video, which revealed a swathe of abandoned, half-finished condominium units financed by Empire Savings and Loan of Mesquite, Texas: this was when the FHLBB was made aware of the fact that organised criminal cadres had immediately taken advantage of the deregulation of the Savings and Loans, and that an open-ended financial implosion was under way as a consequence. The enronisation of the US thrift industry was an ‘inside job’ from the outset. Source: ‘Inside Job: The Looting of America’s Savings and Loans’, Stephen Pizzo, Mary Fricker and Paul Muolo, McGraw-Hill Publishing Company, New York, 1989, ISBN 0-07-050230-7.

• Securities Act of 1933: This Act, which followed the 1929 crash and the Great Depression, was framed in accordance with the interstate commerce clause of the US Constitution, and requires that any offer for sale of securities using the means and instrumentalities of interstate commerce must be registered under the terms of the 1933 Act. Prior to the 1933 Act, the public regulation of securities in the United States had been governed mainly by State laws (commonly referred to as the ‘Blue Sky’ laws). With passage of the 1933 Act, the patchwork of existing State securities laws was left in place, to supplement the Federal legislation. A crucial dimension of the law is that the 1933 Act makes it illegal to commit fraud in conjunction with the offer or sale of securities.

Exemptions to the registration process under the Act are extremely tightly prescribed.

Hence, except for extremely narrowly defined offerings (for instance, to groups of no more than 35 investors), securities offered or sold to the general public in the United States must be registered by the filing of a registration statement with the Securities and Exchange Commission.

The prospectus for the offering is generally filed in conjunction with the registration statement. The SEC itself prescribes the relevant forms on which an issuer’s securities must be registered, and these forms call, inter alia, for:

(1): A description of the issuer’s properties and business;
(2): A description of the securities to be offered for sale;
(3): Information about the management of the issuer;
(4): Information about the securities (if other than common stock); and:
(5): Financial statements certified by independent accountants.

It is illegal for an issuer to lie or to omit material facts from a registration statement or prospectus. Secondary market transactions may take place without registration. Under Rule 144A, resales of restricted securities between ‘Qualified Institutional Buyers’ (QIBs) are exempted, thus creating a secondary market in restricted securities among the largest Wall Street houses.

• Securities Acts Amendments of 1975: See: Securities and Exchange Commission (SEC).

• Securities and Exchange Commission (SEC): A Federal agency created under the Securities Exchange Act of 1934, to administer the following legislation:
(1): The Securities Exchange Act of 1934;
(2): The Securities Act of 1933;
(3): The Public Utility Holding Company Act of 1935;
(4): The Trust Indenture Act of 1939;
(5): The Investment Advisor Act of 1940; and:
(6): The Securities Acts Amendments of 1975, which ratified free market determination of brokers’ commissions and gave the SEC authority to oversee the development of a National Market System.

The SEC has five Commissioners, appointed by the President of the United States on a rotating basis for five-year terms. The statutes administered by the SEC are designed to:
(1): Promote full disclosure;
(2): Protect the investing public against malpractice in the securities markets;
(3): Require all issues of securities offered in interstate commerce or through the mails, to be registered with the SEC;
(4): Supervise all national securities exchanges and associations;
(5): Supervise investment companies, investment counselors and advisers, Over-the-Counter brokers and dealers, and virtually all other individuals and firms operating in the investment field.

Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘SEC‘.

• Securities Exchange Act of 1934: This legislation, which governs the US securities markets, was enacted on 6th June 1934. The Act:
(1): Outlawed misrepresentation and manipulation, and other abusive practices in respect of the issuance and marketing of securities.
(2): Created the Securities and Exchange Commission to enforce the Securities Acts 1933 and 1934.
The primary stipulations of the 1934 Securities Act are as follows:
(1): Registration of all securities listed on stock exchanges, and periodic disclosures by issuers of financial status and changes in condition.
(2): Regular disclosure of holdings and transactions of ‘INSIDERS’ (officers and directors of a corporation and those who control at least 10% of equity securities).
(3): Solicitation of proxies enabling shareholders to vote for or against policy proposals.
(4): Registration with the SEC of stock exchanges and brokers and dealers to ensure their adherence to SEC rules through self-regulation.
(5): Surveillance by the SEC of trading practices on stock exchanges and Over-the-Counter (OTC) markets, to minimise the possibility of insolvency among brokers and dealers.
(6): Regulation of Margin Requirements for securities purchased on credit. These requirements are set by the Federal Reserve Board.
(7): The provision of subpoena power for use by the SEC in investigations of possible violations and in enforcement actions.

Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Securities Exchange Act 1934’.

• Self-Regulatory Organization (SRO):
These are Federal organisations established to enforce fair, ethical and efficient practices in the securities and commodities futures industries. The practices are referred to as ‘industry rules’ to distinguish them from regulatory agencies such as the Securities and Exchange Commission (SEC) or the Federal Reserve Board. SROs include:
(1): All the national securities and commodities exchanges; and:
(2): The National Association of Securities Dealers (NASD), representing:
• All firms operating in the Over-the-Counter market; and:
• The Municipal Securities Rulemaking Board (MSRB), established under the US Securities Acts Amendments of 1975 to regulate brokers, dealers and banks dealing in municipal securities. The NASD enforces the rules promulgated by the MSRB with bank regulatory agencies. Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘SRO’.

• Settlement:
(1): Of Securities: The conclusion of a securities transaction in which a broker/dealer pays for securities bought for a customer or delivers securities sold, being paid from the buyer’s broker.
(a): Regular Way Delivery and Settlement is completed on the third full business day following the date of the transaction for stocks (called the Settlement Date).
(b): Government Bonds, and Options, are settled on the next business day.
(2): Of Futures/Options: Represents the final price, established by Exchange Rule, for prices prevailing during the closing period and upon which Futures Contracts are Marked to The Market. Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Settlement’.

• Sherman AntiTrust Act:
Passed in July 1890, this legislation described in general terms, without the benefit of definitions, activities that were viewed as monopolistic and were therefore illegal. Many of the definitions had already been determined by case law involving court actions by employers combating the activities of trade unions. The Act forbade ‘every contract, combination… or conspiracy in the restraint of trade or commerce’. Sources: Michael C. Cottrell, B.A., M.S., ‘Elite Power & Capital Markets’, thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science, for The Administration of Justice Department, Mercyhurst College, Erie, PA 13th February 2002; Jack C. Plano and Milton Greenberg, ‘The American Political Dictionary’, 4th Edition, Hinsdale, the Dryden Press, 1976, page 328.

• Story’s First Law:
‘All organisations are run for the benefit of those running the organisation’.

• Story’s Second Law:
‘The interests of the supplier and the consumer diverge’.

• Story’s Third Law: ‘Sooner or later, all operations and covers are blown’.

• Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA):
Federal legislation which reversed some earlier tax reductions, established a 10% withholding tax applicable to dividends, repealed accelerated appreciation deductions and provided that American taxpayers must report all sources of income, wherever it was earned anywhere in the world.

It follows that all receipts received by US taxpayers since the passage of this Act which have not been reported to the Internal Revenue Service (IRS) are taxable, which means that all US taxpayer holdings in offshore accounts that have not been declared for tax are liable for US tax and also for penalties. It also means that ‘program’ participants expecting their funds eventually to be paid into offshore accounts may not only be in denial about the fact that they have been scammed, but may have also allowed themselves to become co-conspirators in tax evasion with the perpetrators of the scams themselves. It is standard criminalist practice to procure that targeted victims are enticed into compromising themselves by the perpetrators.

• Terrorism Prevention Act of 1996:
This legislation added terrorism-related crimes as predicates for money-laundering. Madinger and Sydney A. Zalopany, ‘Money Laundering: A Guide for Criminal Investigators’, New York: CRC Press, LLC, 1999, page 43.

• Transparency:
(1): In Financial Reporting: Ease of understanding, made possible by FULL, CLEAR and TIMELY disclosure of relevant information.
(2): In Securities Transactions, price transparency means access to information concerning the depth of the market that would enable detection of fraud or manipulation. Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Transparency’.

• Trust Indenture Act of 1939:
This legislation supplemented the Securities Act of 1933, requiring the appointment of a suitably independent and qualified trustee to act for the benefit of the holders of securities. The legislation specified certain substantive provisions for such a trust indenture that must be entered into by the issuer and the trustee. The law is administered by the Securities and Exchange Commission (SEC).

• Truth in Lending Act:
Federal legislation which established disclosure rules that lenders must observe in dealings with borrowers. The Act stipulates that consumers must be told annual percentage rates, potential total cost, and any special loan terms. Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Consumer Protection Act of 1968’.

• Truth in Lending Act (TILA) of 1968:
This legislation is designed to protect consumers involved in all kinds of credit transactions, including (and especially) mortgages. It is contained in Title 1 of the Consumer Credit Protection Act as amended. The purpose of the legislation is to promote the informed use of consumer credit by requiring disclosures about its terms, and gives consumers the right to cancel certain credit transactions that may involve a lien on the consumer’s principal home. It regulates certain credit card practices, and provides a mechanism for the fair and timely resolution of credit disputes. The law requires the uniform and standardised disclosure of costs and charges so that consumers can shop around (thereby promoting competition). The legislation further prohibits certain practices associated with credit secured on a consumer’s principal dwelling. The lender must disclose to the borrower the annual percentage rate charged (APR), which must reflect the cost of the credit to the consumer. The legislation proved ineffective in curbing the abuses which were highlighted as a consequence of the corruption exposures, because many mortgage lenders failed to comply with the Act’s disclosure provisions, and were not prosecuted or penalised accordingly.

• Underwrite:
To assume the risk of buying a NEW ISSUE of securities from an issuing corporation or Government entity and reselling the securities to the public, either directly or through dealers. The underwriter makes a profit on the difference between the price paid to the issuer and the Public Offering Price, called the Underwriting Spread. Source: John Downes and Jordan Elliot Goodman, ‘Dictionary of Finance and Investment Terms’, 7th Edition, Happauge: Barron’s Educational Series, Inc., 2006, s.v. ‘Underwrite’.

• Underwriting Spread: See ‘Underwrite’ above.

• Vault Cash Act of 1959:
This legislation modified the reserve requirements of Federal Reserve member banks to allow the banks to count their vault cash, in excess of specified percentages of their deposits, as part of their required reserves. This was one of innumerable retrograde modifications since the Second World War which have facilitated covert financial operations, to the detriment of global financial stability and integrity. Source: Munn, ‘Encyclopedia of Banking & Finance’, page 589.

APPENDIX:

THE ORIGINAL PONZI SCHEME EXPLAINED:

Charles Ponzi, an immigrant from Italy to Boston, MA, made millions of dollars for a brief period, by exploiting his shrewd observation that while national currencies were fluctuating wildly in 1920, just after the end of the First World War, the Universal Postal Union (UPU) issued coupons which were always worth a given amount of postage stamps.

In those days, European refugees were flocking to the United States, Canada and Brazil; and often, their only contact with their families and friends back home was an occasional letter, enclosing a few dollars. The Universal Postal Union arranged to move the millions of postwar letters, business documents and messages across national borders by issuing Postal Reply Coupons.

You bought a Postal Reply Coupon in your country of residence, and enclosed it with your letter. Your mother, once she had received the letter, exchanged the Postal Reply Coupon for stamps at her local post office.

Charles Ponzi told friends in Boston: ‘Everybody’s heard of the Postal Union. They print coupons like these I’m holding here: Postal Reply Coupons. You can send a letter home, or anywhere in the world, with these coupons. And you can trade this coupon for a stamp in any country. I send my mother coupons with every letter that I write home’.

‘Now, in cooperation with certain large businesses in our city, I am making a fortune on the Postal Reply Coupon. Stocks are too risky. Forget it. And bonds, what are they paying these days? Maybe six percent? Savings accounts at Tremont Trust, they’ll give you four and a half cents on the dollar. Give them $100 and they’ll give you back $104.50. I can beat that into the ground’, Ponzi insisted, beating his cane against the floor. ‘My investors get 50 cents on the dollar. Place a hundred dollars with my Securities Exchange Company, and you take out $150. Put that $150 in, you’ll get back $225. That’s right, in six months, you can more than double your money’.

How could he pay 50%, when banks couldn’t even manage to pay 5%? ‘Exchange rates’, Mr Ponzi explained. ‘Every morning I go down and check to see how the lira is doing against the US dollar. Usually you get five lire for a dollar. This morning I checked, and with the war just ended, it takes 20 lire to the dollar’. While currency rates were bouncing around like popcorn, Mr Ponzi explained, the Postal Reply Coupon always bought one stamp. Here’s what I do’.

‘I send my cousin in Parma, Italy, $1.0. He exchanges the dollar for lire. With the 20 lire ( or 2,000 centesimi), he can buy 66 Postal Reply Coupons (worth 30 centesimi each, the cost of a letter-sized stamp in Italy). Back in the United States, each of the coupons buys one stamp, at face value five cents. I redeem all 66 coupons for $3.30 worth of stamps. The magic happens in the exchange rate. In America, my dollar buys 20 Postal Coupons. But if I exchange the dollar for Italian lire, and buy the coupons in Italy, then return and buy the stamps in America, I get $3.30 worth of stamps for that same $1.0. My profit margin is 230%’.

‘Yeah, but $3.30 worth of stamps is still stamps’, complained an attentive listener.

‘I know’, said Ponzi. ‘So I sell the stamps at a 10% discount through my contacts with the larger firms downtown in our city. Deducting the discount, I’ve got $3.0 cash now, from the $1.0 that I started out with. Now, let’s say, I got that dollar from you. I will pay you back your dollar, plus 50 cents of interest. Since I just sold $3.0 worth of stamps, I have a dollar and 50 cents for myself. I’m going to spend a third of that on my offices and processing overheads, and a third on commissions and bonuses to my sales people; and then, ladies and gentlemen, I’m going to pocket the other third and take my wife for a stroll’.

THE ORIGINAL FALSE PROSPECTUS IS SOON ABANDONED, AND REPLACED BY… ZILCH
This was the essence of the original Ponzi scheme. Note that in this description, Ponzi starts out by exploiting the fluctuations of exchange rates, and the lack of arbitrage; and note that, by the end of the explanation, he is simply NOW offering 50% interest, which he pays out to claimants out of the additional funds he has received from other investors who are likewise anticipating a 50% return on their investments, within a short space of time.

The germ of the idea was derived from the foreign exchange market; but once Ponzi has realised that people will pour their money his way if they are promised a 50% return, he can abandon his elaborate explanation (his ‘prospectus’) of the exploitation of exchange rate fluctuations and the tedious task of shipping, receiving, handling and exchanging Postal Reply Coupons, which gave him the ‘easy money’ idea in the first place.

In other words, his sales pitch is no more than a now redundant, expendable illustration – a false prospectus which disguises the fact that he is really promoting a pyramid selling operation. For he has realised that all his investors care about is receiving 50% on their money. How this is to be achieved does not normally concern them.

ALL THEY WANT IS A HUGE RETURN ON THEIR MONEY.

By December 1920, Charles Ponzi was matching old money with ever larger amounts of new money. In May 1921 alone, almost $500,000 of new money poured into the Securities Exchange Company – as 1,500 or more new customers, lured by the 50% yield offered through advertisements, sought their share of the huge profits they thought would be forthcoming at minimal risk. The office now bulged with fat stacks of dollar bills.

THE FLOOR STARTS TO GIVE WAY BENEATH HIM
But problems started to arise when Joseph Daniels filed a lawsuit alleging that he had helped to found the Securities Exchange Company (SEC) with a loan of $230 worth of furniture plus $200 in cash. Daniels had indeed provided the beaten-up desks that had been offloaded in the dusty office, and had let Mr Ponzi have $200 to spark interest in the Postal Coupons. It wasn’t just a loan, Daniels maintained, now that Ponzi was drowning in cash. ‘We were partners. I put up capital and property’. On 2nd July, Mr Ponzi was handed a demand for $1.0 million.

The Boston Post telephoned, and Mr Ponzi told the reporter that he had indeed bought furniture from Mr Daniels, but that he had never received any money for investment from him.

But when the newly installed banking commissioner for Massachusetts, Joseph Allen, read the newspaper, he wondered: ‘Where did Ponzi come from? Who are his associates? How is he managing to double people’s money?’

Allen asked Ponzi to pop round to his office, for an interview. The Securities Exchange Company did not describe itself as a bank, nor did it offer any banking services.

Therefore, in the absence of a complaint – and none had yet arrived – the Commissioner had no jurisdiction to examine Charles Ponzi’s business. At the interview, Ponzi explained the curiosities surrounding Postal Coupons, pointed out that money chased money, collected his black hat and coat, doffed his hat, and bid Mr Allen goodbye.

But Richard Grozier, city editor at The Boston Post, had always thought that Charles Ponzi’s scheme was fraudulent; and to initiate what he fancied would be the inevitable coming débacle, he elicited a comment from one of Boston’s leading citizens, Clarence Barron, the owner of Dow Jones & Co and The Wall Street Journal.

At the end of July 1920, The Boston Post carried a front page story entitled: ‘Clarence Barron questions the motive behind Ponzi’s scheme’.

Theoretically, Barron admitted, you could indeed turn a profit on the UPU coupons. But that was the only truth buried within the operation. You could never earn more than a few thousand dollars, not just because of the trouble involved in offloading the stamps and tracking the various conversions driving the process, but because there simply were not enough coupons available.

France, Romania and Spain had just abandoned the scheme, a few months earlier. A cursory check with the UPU showed that they only had a few hundred thousand dollars’ worth of coupons left in circulation – nowhere near the $10 million or $15 million Mr Ponzi claimed to be trading. So where was Ponzi getting his coupons from? Furthermore, the US Postal Service had announced, on 2nd July 1920, that Postal Reply Coupons would no longer be redeemable in lots larger than ten. So how was Ponzi converting his coupons into stamps?

Finally, Barron asked, if Ponzi is doubling everyone else’s money, why does he keep his own funds in regional banks? The Boston Post knew that Ponzi kept millions of dollars on deposit at seven or eight New England banks, and that the accounts were ballooning. How could a man who was paying 100% interest every 90 days, put up with drawing just 4% on his holdings? Barron concluded:

‘Right under the eyes of our Government, Mr Ponzi has been paying out US money to one line, with deposits taken from a succeeding line’ (another bank).

All of a sudden, all the doors which had flown back on their hinges at the sight of Mr Ponzi, were slamming tight shut. The Massachusetts District Attorney ordered Ponzi to cease and desist. His customers demanded their money back, and Ponzi was eventually jailed for Federal mail fraud, then deported. He wound up destitute in a poor house in South America (1).

Reference:
(1). ‘How Charles Ponzi pulled it off: Making a fine art out of a pyramid fraud’, International Currency Review, Volume 27, Number 3, December 2001, pages 51-52.

ANNEXE:

REITERATION OF THE STATUTES, SECURITIES REGULATIONS AND LEGAL PRINCIPLES OF WHICH THE CRIMINALISTS, THEIR ASSOCIATES AND RELEVANT BANKSTERS ARE IN BREACH:

LEGAL TUTORIAL: The Steps of Common Fraud:

Step 1: Fraud in the Inducement: “… is intended to and which does cause one to execute an instrument, or make an agreement… The misrepresentation involved does not mislead one as the paper he signs but rather misleads as to the true facts of a situation, and the false impression it causes is a basis of a decision to sign or render a judgment” Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

Step 2: Fraud in Fact by Deceit (Obfuscation and Denial) and Theft:

• “ACTUAL FRAUD. Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.

Step 3: Theft by Deception and Fraudulent Conveyance:

THEFT BY DECEPTION:

• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.

• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.

• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.

Source: Black, Henry Campbell, M.A., Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.

FRAUDULENT CONVEYANCE:

• ‘FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.

• “Conveyance made with intent to avoid some duty or debt due by or incumbent or person (entity) making transfer…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Conveyance’.

U.S. SECURITIES REGULATIONS OF WHICH KEY INSTITUTIONS HAVE BEEN SHOWN TO BE IN BREACH:

• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957
• 97-13 Bank Secrecy Act, Recordkeeping Rule for funds transfers and transmittals of funds, et al.

U.S. LAWS ROUTINELY BREACHED BY THE CRIMINAL OPERATIVES AND BANKSTERS:

• Annunzio-Wylie Anti-Money Laundering Act
• Anti-Drug Abuse Act
• Applicable international money laundering restrictions
• Bank Secrecy Act
• Conspiracy to commit and cover up murder.
• Crimes, General Provisions, Accessory After the Fact [Title 18, USC]
• Currency and Foreign Transactions Reporting Act
• Economic Espionage Act
• Hobbs Act
• Imparting or Conveying False Information [Title 18, USC]
• Maloney Act
• Misprision of Felony [Title 18, USC] (1)
• Money-Laundering Control Act
• Money-Laundering Suppression Act
• Organized Crime Control Act of 1970
• Perpetration of repeated egregious felonies by State and Federal public employees and their Departments and agencies, which are co-responsible with the said employees for ONGOING illegal and criminal actions, to sustain fraudulent operations and crimes in order to cover up criminalist activities and High Crimes and Misdemeanours by present and former holders of high office under the United States
• Provisions pertaining to private business transactions being protected under both private and criminal penalties [H.R. 3723]
• Provisions prohibiting the bribing of foreign officials [F.I.S.A.]
• Racketeer Influenced and Corrupt Organizations Act [R.I.C.O.]
• Securities Act 1933
• Securities Act 1934
• Terrorism Prevention Act
• Treason legislation, especially in time of war.

• Please be advised that the Editor of International Currency Review cannot enter into email or other correspondence related to this or to any of the earlier reports.

We are a private intelligence publishing house and have no connections to any outside parties including intelligence agencies. The word ‘intelligence’ on this website and in all our marketing material is used for marketing/sales purposes only and has no other connotations whatsoever: see ‘About Us’ on the red panels under the Notes on the Editor, Christopher Story FRSA, who has been solely and exclusively engaged as an investigative journalist, Editor, Author and private financial and current affairs Publisher since 1963 and is not and never has been an agent for a foreign power, suggestions to the contrary being actionable for libel in the English Court.

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This should come as no real surprise since the cynical spooks even assert this ‘in-your-face’ by advertising ‘INTEL INSIDE’, which says exactly what it means. More specifically, NSA have made great strides in this direction by having a back door built into Microsoft VISTA. Certain computers, especially those labelled with the logo of the ‘fully collaborating’ firm Hewlett Packard, have hard-core setups which facilitate the remote monitoring and controlling of personal computers by NSA, Fort Meade. We now understand that if you are using VISTA* you MUST NOT enable ‘file and printer sharing’ under any circumstances. If you say ‘YES’, so to speak, to ‘file and printer sharing’, your computer becomes a slave at once to NSA’s master computers. DO NOT ENABLE SHARING.

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WHEELS COMING OFF WHITE HOUSE CORRUPTION ENGINE

PERVERSE OPERATION TO ‘REIGNITE’ FRAUDULENT FINANCE IS FALLING APART

Tuesday 24 March 2009 03:00

THE LATEST MISGUIDED, WRONG-HEADED GEITHNER PLAN

• MICROCHIP STUCK ON THE EDITOR’S LEG BY NSA MANIACS AT NIGHT IN A U.S. HOTEL

• EARLIER INSTANCES OF ILLEGAL U.S. ATTEMPTS TO TRACK THE EDITOR OF THIS SERVICE

NO TAKERS FOR ‘GEITHNERS’

‘A HORRIBLE, HORRIBLE FEELING THIS IS GOING TO END BADLY’

TALF SUPPOSEDLY ‘TO REIGNITE THE SECURITIZATION MARKETS’: RIGHT

HUGE THEFT OR ‘REASSIGNMENT’ OF FUNDS TOOK PLACE ON 17TH MARCH

THE $4.0 TRILLION THAT ‘SUDDENLY’ APPEARED AT THE U.S. TREASURY

THE PRIMARY MOTIVE UNDERLYING THE RECKLESS BAILOUTS

REPORT THAT PAPERS WERE SERVED ON DR BEN BERNANKE

A.I.G. FOUNDER FRANK WISNER SR.: LIAISON TO THE NAZI GEHLEN ORGANISATION

THE CIA BACKGROUND OF FRANK WISNER JR., A.I.G. VICE CHAIRMAN

U.S. SEEKS CONTROL OF INTERNATIONAL CRIME, TERRORISM AND DRUG TRAFFICKING

A CRIMINAL GOVERNMENT OPERATING ON DURKHEIM PRINCIPLES

BUSH-CLINTON-CIA DRUG-TRAFFICKING LINKS TO STANFORD OPERATION

REASON FOR REFUSAL TO IMPLICATE OTHERS: DEATH THREATS TO FAMILY MEMBERS

OTHER PONZI SCHEMES ON BRINK OF BEING EXPOSED: ‘PONZIMONIUM’

MADOFF ACCOUNTANT FRIEHLING ARRESTED: SECURITIES FRAUD

DOUBLE STANDARD FOR MUNICIPAL ISSUERS

SLOW AND PAINFUL PROGRESS IN ‘TAKING DOWN’ THE OCTOPUS

STANFORD OPERATIONS AND THE OCTOPUS

STANFORD ‘TOOK OVER’ FROM NORIEGA AGAINST WHOM LEHDER TESTIFIED

EFFICIENT TEUTONIC ORGANISER OF THE MEDELLIN CARTEL FOR BUSH/CIA

CATALOGUE OF VIOLENCE UNLEASHED BY LEHDER

LEHDER EXFILTRATED TO GERMANY UNDER CORRUPT 2000 ELECTION PAYOFF DEAL

STANFORD LINKS TO FUND RUN BY BIDEN FAMILY MEMBERS

OTHER BIDEN BACKGROUND SCANDALS

BIDEN ATTEMPT TO SET US UP/USE THIS SERVICE

CHINESE REPORTED TO HAVE OBTAINED LIEN ON FEDERAL RESERVE

KISSINGER AND BAKER RETURN FROM MOSCOW ‘WITH GORBACHEV’

SECRET MEETING BETWEEN OBAMA, BIDEN AND GORBACHEV

BRITISH-AMERICAN RELATIONS AT AN ALL-TIME LOW

BELATED WHITE HOUSE SECOND THOUGHTS GIVEN THE IMMINENT MEETING WITH QUEEN

FACE-TO-FACE EXCHANGE BETWEEN PRESIDENT OBAMA AND THE QUEEN

POSTSCRIPT; WHITE HOUSE SCURRIES TO MEND THE RIFT

• MADOFF ‘VICTIMS’ LIST: Two reports were posted on 6th February 2009 containing the entire list of customers of Bernard L. Madoff Securities, Inc.. Because the list is so huge, we divided it into two segments: Clients A-N; and clients O-Z, plus a Miscellaneous Section. See: Archive. Our list is the easiest to load and clearest of the lists that have been reproduced privately on the Internet.

• We have just published: International Currency Review Volume 34, #2 on Systemic Fraudulent Finance and The Legalisation of Financial Corruption. Also just published are issues of our titles Economic Intelligence Review, London Currency Report, Interest Rate Service and Arab-Asian Affairs. For further details, please check the second white panel on the Home Page.

• Globalist hegemony ideology and practice is comprehensively debunked in the Editor’s study entitled The New Underworld Order, which can be ordered via the books section of this website. If you want to see what may well happen if the angle of decline steepens much further, you could do worse than also order a copy of The Red Terror in Russia, by the contemporary Russian eyewitness Sergei Melgounov, another Edward Harle Limited book available direct from this website.

• ADVERTISEMENT: Details of the Internet Security Solution software offered by this service in conjunction with a donation are appended at the very foot of this report, below the legal data. See also the catalogue by clicking on World Reports Limited and scrolling down to the bottom.

By Christopher Story FRSA, Editor and Publisher, International Currency Review and associated intelligence publications and information services. See this site for details and ordering facility.

• CORRESPONDENCE TO THE EDITOR: We routinely, automatically DELETE all emails which OMIT any element of the requested coordinates. We are not prepared to deal with anonymous spooks and other cowards who are too scared to provide their coordinates, for identification.

• The CONTACT US facility is found in the red box throughout this combined website.

NEW REPORT STARTS HERE:

THE LATEST MISGUIDED, WRONG-HEADED GEITHNER PLAN
It is very difficult to find words to describe the desperation, stupidity and folly of the latest Geithner wheeze. This proposal for private sector investors to collaborate with the Government to relieve the banks, as The New York Times put it on 23rd March 2009, ‘of assets tied to loans and mortgage-linked securities of unknown value’, with the Government reportedly ready to lend nearly 95% of the funds for any such investment, is beyond reckless and irresponsible: it is laughable.

It reeks of an utterly perverse and desperate, A REALLY DESPERATE, perverse throw by the Obama Administration to revalidate and revalue trades within the moribund derivatives sector, which has crashed and in which no-one not in need of brain surgery has been at all interested in since the worthlessness of these Fraudulent Finance assets were exposed.

The extraordinary weakness and idiocy of this wheeze – which must rank as the most eccentric and demented proposition ever to have been marketed by the corrupt US Treasury – was impregnated within the feeble remarks of Christina D. Romer, the Chief Economist at the White House, who said in an interview on ‘Fox News Sunday’ [22nd March 2009]:

‘What we’re talking about now are private firms [i.e. the hedge funds and sovereign wealth funds, mainly – Ed.] that are kind of doing us a favor [i.e., digging us out of the hole that we’ve dug for ourselves – Ed.], right, coming into this market to help us buy these toxic assets [note that she agreed that they are worthless, by using the word TOXIC: what a superb marketing ploy!] off banks’ balance sheets…. They are the firms that are the good guys here’, she added, in order to head off the obvious objection that on the basis of recent experience, participants might be vulnerable to a massive retroactive tax, or a Congressional hearing, or both of the above.

The White House spokeswoman wasn’t asked why, if the banks’ (fraudulent Ponzi) ‘assets’ were so ‘toxic’, ANYONE would want to buy ANY of them, EVER, given that by definition worthless assets aren’t tradeable – let alone borrow money from the Government (creating further background Government debt) for the purpose, even with the official loans reaching almost 95% of value.

• BUT WHAT VALUE? Even the few cents in the dollar suggested, is almost a non-starter.

Uh, as The New York Times pointed out:

‘Still, a big stumbling block remained: how to place a value on mortgage-related assets that have not been traded for months’,

Right.

The only reason that Pimco, Black-Rock and other such entities might participate in this demented scheme would be in the forlorn hope that it might succeed in revalidating and revaluing their vast portfolios of DUD derivatives ‘assets’ that they can’t shift. Not a valid or responsible reason for a money manager to trash his fiduciary responsibilities by investing in ‘assets’ that the White House Chief Economist has herself publicly labelled TOXIC.

MICROCHIP STUCK ON THE EDITOR’S LEG BY NSA MANIACS AT NIGHT IN A U.S. HOTEL
The Editor flew to Chicago on 16th March 2009, took care of some business in the city, and later caught an Amtrak train to another destination, for some further meetings.

At 4:00am in the morning of 18th March 2009, the Editor awoke in his hotel room and felt an itch on the back of his lower right leg. On feeling the area, he became aware that a piece of plastic had been stuck onto his inner leg without his knowledge.

The Editor had been surprised to be given a large suite at the hotel in question. On 23rd March, an expert analyst informed him that the plastic was not simply placed in the bed on the off-chance that it would adhere to the back of the Editor’s right leg, but that it was actually applied to the Editor very early in the morning while he was sleeping. This assessment comes from experts with such background that when asked whether the resulting Tattoo on the Editor’s leg (see below) may be permanent, they were unable to answer the question, and subsidiary questions, on the telephone: meaning that they could not do so without breaching national security.

The plastic peeled off and on turning on the light, the Editor found that he was holding a printed circuit microchip embedded in a piece of transparent plastic measuring about one inch square. On holding the plastic up to the light, the embedded printed circuits, with various arrows, were very clearly visible. There is a lesion on the Editor’s inner right leg where the chip was applied.

• The printed circuit contained a DIAMOND shape, which is a TARGET symbol.

It also contained three ‘shoes’ associated with arrows, which are indications of a GPS operation to track the Editor’s exact movements so that at the appropriate time he can be shot dead on demand. Three shapes in the form of flayed skins were also evident, as was a miniaturised grid, indicating, we understand, the whereabouts of the Editor physically. After being peeled off the Editor’s lower right leg, a lesion remained at the place where the printed circuit/chip had been located.

The Editor reported this via intermediaries to several US operatives, who quickly responded that they had no knowledge of any such evil device being placed upon the Editor’s person: in fact this message emerged almost in unison. The Editor was not satisfied with this and reported the issue to a close friend with ‘connections’, who was able to unravel the truth of the matter.

This is that, in addition to being a tracking device to facilitate assassination, the printed circuit also creates a TATTOO, which then operates just like the printed circuit itself when it has peeled off.

Furthermore, the friend pointed out that these people are trained to say precisely the opposite of the truth when exposed. The proposition that the US operatives had put forward was that the GPS printed circuit had been applied to the Editor’s inner right leg by British MI6 operatives for his own protection, presumably on the American Airlines plane: a contradiction in terms given what the US operatives in question know about the Editor of this service.

What is certain that if this was a British operation, the plastic printed circuit would not carry a target (assassination) symbol (DIAMOND), indicating how ridiculous such US denials and lies are.

EARLIER INSTANCES OF U.S. ATTEMPTS TO TRACK THE EDITOR OF THIS SERVICE
Nor is this the first time that mentally retarded, murderous NSA parasites (which is what many of them are: they produce NOTHING) have applied these craven tactics to the Editor. On the first such occasion, after the Editor had conducted certain interviews in May 2003 in North America, he found a bean-shaped object among his effects while he was visiting the seaside in the British Isles.

Fearing that it might explode, he climbed up a rock adjacent to the beach and placed the plastic bean-shaped transmitter inside a hole in the rock, and wedged a loose piece of rock into the hole. Returning out of rank curiosity two days later to see whether the ‘bean’ was still there, he carefully removed the wedge, only to find that the object had completely vanished. A bird or other creature could not possibly have removed it from deep inside the cliff face.

The second occasion that a chip was placed with the Editor, occurred after the Editor had paid a second visit to the office of the NSA operative William Hmailton, of PROMIS fame. On the first such occasion, everything was sweetness and light, the receptionist was warm and cosy and the Editor was treated with courtesy. On the second occasion, the previously pleasant Hamilton receptionist was distant and surly. The Editor was kept waiting in the reception area for 25 minutes, and was then ushered into a conference room by Mr Hamilton. First mistake: the Editor removed his jacket.

Almost immediately, a man in jeans knocked on the door and asked if he could ‘continue’ working at a computer console that was located in the corner of the room.

The Editor thought it very odd that a single computer was stuffed into the corner of the Boardroom. Hamilton said ‘OK’, and minutes later ‘suggested’ that it would be a good idea ‘if we move next door. Leave your briefcase and jacket here: we’ll look after them’. Second mistake. Manifestly, the fellow in jeans was acting a role: if the Boardroom had been set aside for the meeting with the Editor of this service, the computer nerd wouldn’t have been given access.

‘Next door’ turned out to be a completely empty office suite. In at least one room, however, the Editor noticed a large number of large carboard boxes stacked all over the floor. After clicking his heels for ten minutes, the unpleasant receptionist brought in a tray with a glass and an opened bottle of Pepsi. Third mistake. NEVER DRINK FROM AN OPENED BOTTLE IN SUCH COMPANY.

• Please now refer to the Gospel of Mark, Chapter 16, verse 18.

The Editor later travelled to another location and during dinner in a diner with a former contact, he described what had happened. The contact asked to look at the Editor’s jacket. The microchip was stuck to the inner side of the right-hand part of the jacket. It was quickly consigned to the candle burning on the dining table.

On each of these occasions, the operatives concerned behaved in an unfriendly manner towards a visitor from the United Kingdom which is still supposed to be the United States’ closest and most reliable ally. On all three occasions, we deduce that the concern within the warring and confused US intelligence community, which is being brought low by the collapse of its Fraudulent Finance schemes arising from these exposures, has been to compromise the Editor in order to attempt to close down these ongoing arms-length investigations, which have made immense progress since the Editor first became involved in this investigative reporting six years ago.

It’s all about COVERING UP FINANCIAL CRIMINALITY. It’s nothing to do with US NATIONAL SECURITY. The investigations are focused exclusively on the betrayal of the American people and the Rest of the World by a bunch of arrogant thieves and amoral US operatives who believe that they can do what they like, including stealing from widows (‘devouring widows’ houses’), depriving their Ponzi victims of all hope of recompense, and treating the rest of humanity with malice.

Unfortunately for the terrified perpetrators, this horrendous episode of US officially-sponsored financial terrorism is unravelling faster than these mental defectives and crooks can stitch their model back together again. The angle of deterioration is steepening by the day, and the more they try to patch up the broken system based on Fraudulent Finance, the worse the mess they create.

NO TAKERS FOR ‘GEITHNERS’
We have just published International Currency Review, Volume 34, #2, which contains an analysis of the Paulson TARP operation, with charts, and shows that the entire purpose of that operation was to refinance, not the US dollar system and the economy, but rather Carlyle, Carlyle Capital, George H.W. Bush Sr., James A Baker III and other Bush-Clinton insiders.

The issue was mailed worldwide on Wednesday 18th March. In addition, we have produced and distributed a four-page leaflet containing the three main TARP charts, showing precisely how the corrupt Paulson financing operation was intended to operate. Copies of this leaflet have been hand-delivered in sensitive places in Virginia and inside the Beltway for the past several weeks.

We have also just published several other financial services, all of which contain a chart showing that the quite incredible Geithrner TALF (Term Asset Backed Securities Loan Facility) Fraudulent Finance circular financing operation is designed with the same sick objective in mind, and that the trumpeted Obama ‘Stimulus Program’ is nothing more nor less than a reckless fraud: cover for the rehabilitation of the Fraudulent Finance derivatives orgy which is in fact nevertheless collapsing from the roof into the basement, as we predicted.

And the reason for this is that the exposures have been SO SUCCESSFUL that NO-ONE trusts what the US Treasury and White House, let alone the State Department, choose to concoct, which ‘as we speak’ entails a new scheme every few days, as the pressure of events sucks everything into its own vortex and nixes whatever new wheeze Geithner, Rahm Emanuel, Mrs Clinton, Vice President Biden and Barack Obama come up with. The objective is to re-ignite the now moribund derivatives sector that has been dealt a mortal blow by the exposures and that everyone in the business now realises is dead in the water, since the simple message that NO RECOURSE assets are by definition without value, has finally sunk in where it matters.

Witness what the big hedge fund manager Dan Loeb had to say about NO RECOURSE derivative assets on page C8 of The Wall Street Journal dated 16th March. Writing to investors in his Third Point Offshore Fund, Mr Loeb could not have been more specific:

‘One area we are decidedly NOT interested in is the ‘opportunity’ to purchase structured debt… with non-recourse leveraging from the US Government’.

‘One of our guiding principles is that we do not use financial alchemy (leverage) to turn mediocre returns into gold’. He’s buying gold instead.

‘A HORRIBLE, HORRIBLE FEELING THIS IS GOING TO END BADLY’
Also on 16th March, the Washington Post, running after red herrings as always, published an article which contained certain revealing observations by ‘people in the know’, but which (as usual) were designed to terrify Congress into leniency.

The article addressed the diversionary but nevertheless extremely disturbing (especially for the Obama Government which is supposed to be ‘on the side of the people)) issue of the AIG bonuses: a theme replicated, by the way, in London, where similar outrage has been expressed at bonuses being paid out to large UK banks and other participants in Fraudulent Finance Ponzi operations.

Lloyds Bank called us up to snoop around recently to see whether the Editor would be willing to part with collateral, for no good reason! Likewise, Coutts Bank is snooping around a colleague of the Editor’s who owns a half interest in certain development land, for the same purpose:

• GRABBING COLLATERAL, for use in a reignited derivatives ORGY, which won’t ignite.

The Washington Post item, entitled ‘Rage at AIG Swells as Bonuses Go Out’, contained this:

‘Company officials contend that the uproar is scaring away the very employees who understand AIG Financial Products’ complex trades and who are attempting to dismantle the AIG division before it further endangers the world economy’. HOW INTERESTING!

In other words, as others have pointed out, it is said to be ‘appropriate’ for the corrupt Fraudulent Finance technician foxes who orchestrated the corrupt orgy in the first place, to remain in charge of the hen house: otherwise the hen house will collapse.

”It’s going to BLOW UP’, said a senior Financial Products Manager, who spoke on condition of anonymity because he was not authorised to speak for the company. ‘I have a horrible, horrible feeling that this is going to end badly”. The same message was then immediately delivered to the Congress, which subsequently decided that the ‘way forward’, for their own ‘CYA’ purposes, was to tax the obscene bonuses by 90%, an unprecedented misapplication of the Congressional power to use the tax weapon, which will have devastating consequences for many bonus recipients who may already have spent or otherwise deployed the funds (probably offshore) in question.

TALF SUPPOSEDLY ‘TO REIGNITE THE SECURITIZATION MARKETS’: RIGHT
For further corroboration that of the accuracy of our analysis that the entire purpose of these mad financial manouvres is to ‘revalidate’ derivative assets that have no value, one only needed to read The Wall Street Journal’s blurb by Peter Eavis published on page C10 of that newspaper on the 12th March 2009, from which the following excerpts will suffice:

‘The TALF aims to reignite the securitization markets and increase the availability of consumer loans by encouraging investors to buy asset-backed bonds using borrowed money’, a mad formula which could only have been developed by financial sorcerers and witchcraft specialists.

First of all, the so-called assets to be used are not real assets at all but are fictitious constructs offering NO RECOURSE, as is precisely exposed with diagrams in International Currency Review Volume 34, #2, and further publicised by means of the four-page ICR leaflet which is being hand-distributed in appropriate US places ‘as we speak’, and which contains the three colour diagrams which illustrate the official Fraudulent Finance scams for any confused operative to see.

Secondly, to encourage cheap BORROWING for the purpose of such TRASH is not just amoral, but also shows that the Obama Administration is engaged in a defiant operation to proliferate its own brand of Financial Terrorism, since as usual the proceeds of these fictitious trades will be stashed untaxed in offshore bank accounts, while the Treasury accumulates debt in the background on a scale with no historical precedent, aggregating some $450 billion of debt per month between this month and the end of September 2009, on the basis of the Obama Federal Budget data WHICH ARE ALREADY OUT OF DATE: according to the Congressional Budget Office report published on 20th March, which stated that the Obama Administration’s agenda will gtenerate annual budget deficits of $1.0 trillion over the next ten years, over $2.3 trillion of debt-creating deficit will be incurred in excess of the Budget presentations, which were barely a month old: a display of utterly reckless irresponsibility that has appalled the Rest of the World and will lead to a hyperinflation.

• Indeed, there is rejoicing in Washington, we are told, that prices ARE RISING. Believe us, if they are rising amid the worst slump for a century, you can be very certain that they will be soaring in 18 months’ time, and probably much earlier than that.

The Wall Street Journal analysis elaborated:

‘Yet even though the (TALF) program offers as much as 20-to-1 leverage at generous interest rates, investors have pushed for concessions during the consultation process. And the Fed has agreed to some changes’. Note that TALF has not yet got off the ground: because no-one wants it.

‘One thorny issue: what to do when an asset-backed security purchased with TALF loans is subsequently found to be ineligible under the program. It is a valid concern, given the poor loan collateral shovelled into asset-backed securities during the credit boom’.

‘The original agreement said that when collateral is discovered to be ineligible, investors would have to pay back their loans or find eligible collateral’.

‘But investors felt this meant TALF loans weren’t truly non-recourse: meaning the lender can only claim the collateral it holds, and the borrower’s potential losses are capped. The new agreement should ensure the loans really are non-recourse’.

Have you understood the perverse stupidity of this convoluted upside-down reasoning? It goes: we need to be sure that the ‘assets’ really are non-recourse. Which is precisely what the biggest hedge fund moguls object to: vide Dan Loeb’s observations above.

So you see, there is not an icicle’s chance in Hades (which is where these crooks are headed) of the Obama regime’s substitute for sound finance, which he signed up to on his European tour last year, achieving the intended results.

On the contrary, choices made by the new team of Financial and Economic Terrorists (by their own legislated definition) in the White House, the US Treasury, the State Department, the George Bush Center for Intelligence (Terrorism), the Office of Naval Intelligence (ONI) and all the other nests of open-ended, reckless criminality such as the Office of the Vice President, who presides over the National Security Agency (NSA), have guaranteed a hyperinflation of unprecedented severity.

The Editor has noticed no alleviation of inflationary pressures in New York this March: quite the contrary. A breakfast in a diner that cost $3.50 four years ago now costs $12.50. Deflation?

HUGE THEFT OR ‘REASSIGNMENT’ OF FUNDS TOOK PLACE ON 17TH MARCH
On arrival in the United States, the Editor was almost immediately informed that a very large theft or ‘diversion’ or ‘reallocation’ of giga-funds, KNOWN ABOUT IN ADVANCE, was said to be scheduled to take place on 17th March 2009. At the end of that day, the Editor learned that Chinese interests had been paid a large sum IN CASH, not in Treasuries, to which they had objected.

Thus the ‘reallocation’, or part of it, about which we were warned in ‘real-time’, financed a payoff to the Chinese, in accordance with the pattern that has now become apparent. When a really large debtor gets nasty, the people in charge ‘find a way’ to make the necessary payment, in order, like drunks falling out of the pub, to sidestep an even ‘worse’ outcome.

Examples of this syndrome include a vast sum of money that was conveyed to the Vatican during the visit of the German Pope to America in April last year; payments made to the Mormon Church; payments to the Knights of Malta; and payments (or a payment) to the Knights Templar.

Now we have an instalment paid out to the Chinese, who are indeed owed colssal sums arising from transactions in the late 1930s and the recent expiry of the 70-year period after which the Chinese are required to be paid.

• The sums are so enormous that it will take the United States TWO GENERATIONS to pay what is owed. Let us consider why this payment (may have) finally ‘happened’.

Earlier in March, Chinese representatives of the Peking Government appeared at the World Court and demanded payment of monies owed following the recent expiry of the 70 years arising from the old Morgenthau ‘box deal’ of the late 1930s. The Chinese were reported to us by several sources to have obtained, in the week of 6th March, a lien on the Fed, which ‘works for’ the US Treasury.

On 12th March, against the background of ‘tensions’ between China and the United States over a staged confrontation at sea, the Chinese Foreign Minister, Yang Jiechi, paid a sudden visit to the White House. Mr Yang was also scheduled to meet Mr Barack Obama’s National Security Adviser, former Marine Corps General James Jones. On 11th March, Mr Yang had met Mrs Hillary (who is now relabelled ‘Rodham’, for Rodomski) Clinton, who pontificated that the United States and China needed to reduce tensions and to avoid a repeat of a weekend confrontation between American and Chinese vessels in the South China Sea.

However the ‘confrontation at sea’ represented a proxy ‘tension’ hotspot conjured up for the sole purpose of masking the ACTUAL source of tension between the two countries: namely the ongoing illegal and criminal behaviour of the US official financial fraudsters, and the Chinese intention of exercising their lien on the Federal Reserve, reportedly obtained from the World Court.

If exercised, this would have led to the immediate seizure by the Chinese authorities of all US assets within their jurisdiction, in Hong Kong, Singapore and elsewhere, and thus to a dramatic open-ended, publicised escalation of international tensions, which are explicitly and exclusively a consequence of the hijacking of the US power centres by organised criminal elements as exposed for several years now in these reports.

Any such development would also have collapsed what remains of international economic and financial confidence, would have dealt the final blow to what remains of the self-appointed elite’s deception called ‘globalism’ and would have catapulted the world much closer to World War: where we would appear to be headed anyway, thanks to the crass behaviour of the US authorities. Indeed, if they go on like this, World War III will be their sole recourse.

So, to ‘get round the Chinese problem’, funds had to be ‘reallocated’, like, ‘immediately’. A small part of the funds were found, we understand, by taking them from two projects:

(1) The two British aircraft carriers that were to have been constructed and ‘owned’ by The Queen, and probably also the two further aircraft carriers that were to have been made available to the European Union Collective; and:

(2) The Bush-era ‘missile shield’ project for Eastern Europe, much to the fury of Poland, which greatly distrusts the Russians and thought that this protective mechanism would go ahead.

These projects, representing Bush-era quid pro quos, have been ditched by the Obama clique in order to help pay off the Chinese parties, in order to achieve a belated stay of execution of the Chinese lien against the Federal Reserve, according to sources ‘special’ to this service.

And nor is this the first such ‘reallocation’ to have taken place under Obama’s watch.

THE $4.0 TRILLION THAT ‘SUDDENLY’ APPEARED AT THE U.S. TREASURY
Before he was reportedly arrested and placed in a 30-day cell recently, arch-fraudster Dr Alan Greenspan was stated to us by primary sources to have ‘stolen’ or diverted $3.0 trillion of funds, originally perhaps sourced from The Philippines. These funds, we understand, were ‘restored’ (like The Queen’s $52 billion ‘guarantees’, immediately after we had publicised that theft).

On or about Wednesday 18th March 2009, $4.0 trillion ‘suddenly’ appeared at the US Treasury, a fact reported to us by several sources and later confirmed. Of this total, $1.0 trillion was directed to the Federal Reserve, to finance the INCREDIBLE scheme to revalue worthless derivatives assets that was trailed by The New York Times on Saturday 21st March 2009 and subsequently announced by the spinning top named Timothy Geithner, US Treasury Secretary the following week (see below).

Although this is hypothesis, it is a fact that the US authorities operate THREE currency printing plants abroad, one of which is located in The Philippines, a deeply corrupt country where such operations can be hidden, no problem. It is understood that, in the past, Greenspoon presided over the printing of a large volume of currency there, which had NOT BEEN REGISTERED with the US Treasury. Under the new legislation, anything goes, so it would have been possible for the US authorities to have simply registered this currency, and then credited it to the Treasury’s books, before passing $1.0 trillion of it to the Federal Reserve.

The remaining $3.0 trillion was earmarked for payment to a US Paymaster on or about 23rd March.

Which leaves the matter of Greenspan’s further DETENTION up in the air. WHY was it decided, at the meeting held on 9th March, finally to shove Dr A. Greenspoon into a 30-day holding cell (again, according to special sources)? Uh, if the information is correct, NOT because of official outrage at the fact that George Bush Sr.’s very own corrupt trader had stolen colossal amounts of funds, so much as that the stolen or ‘diverted’ funds were being remitted directly to the corrupt apparatus serving the George Bush Sr. Crime Nexus: whereas certain current Financial Terrorists want the stolen funds in question to pass through/into their own and their cronies’ untaxed offshore bank accounts, instead of going direct into accounts within the Bush Sr. segment of the Octopus.

Hence, this is all about trying to prevent the TOTAL EXPOSURE of the PONZI MODEL, which applies right across the board and is the entire and sole explanation for the global crisis. We pointed this out as long ago as the first quarter of 2007, you may recall.

REPORT THAT PAPERS WERE SERVED ON DR BEN BERNANKE
We were advised during the week ending 6th March, and subsequently, that the Chairman of the Federal Reserve, Dr Ben Bernanke, had been served in person with indictment papers, in late February or early March. There have also been unconfirmed reports that the arch-criminal Mr Hank M. Paulson Jr., one of whose doubles was believed to have been shot dead between Christmas and New Year of 2007, is cruising for a bruising and may be indicted and arrested.

It is impossible to verify such ‘information’, so we simply report what has surfaced, with the caution that the self-appointed geomasonic elite are past-masters of the art of the duplicitous cover-up.

What they cannot handle is damage control when the roof and walls are caving in, and they find that they cannot steal enough supports quickly enough to prop up the metaphorically imploding money tower. They had no problem at all blowing up the Twin Towers and incinerating 3,000 people in the process: that was ‘not a problem’. But propping up the Fraudulent Finance edifice?

• They haven’t a clue. WORSE: They have perversely disregarded what they are supposed to be doing, in accordance with the Group of Seven-approved Refunding Programme, agreed upon in 2007 and 2008: allowing private sector-based trading operations to take place ON THE BOOKS, FULLY TAXED AND WITH MAXIMUM TRANSPARENCY, as reiterated in these reports. This is what these US financial engineers SHOULD be doing. Instead of which, they prefer financial sorcery and witchcraft. They will MOST CERTAINLY pay dearly for their wilful perversity.

• FACT: Private sector on-the-books trading would reliquefy the banks within weeks, or less, all above board, fully transparent and disclosed, and yes: TAXED. No more corrupt, clandestine, off-balance sheet Fraudulent Finance: but the banks survive AND PROSPER.

• FACT: The public sector cannot generate TAX ACCRUALS. It can ONLY generate DEBT, AND MORE DEBT, AND MORE DEBT. The private sector generates TAX ACCRUALS, which enable the Treasury to REDUCE ITS DEBT and thus the burden on taxpayers and future generations.

• FACT: It follows that the Obama Administration is perversely betraying the American people by DOING THE EXACT OPPOSITE OF WHAT IT KNOWS IT SHOULD BE DOING.

• This is TREASON.

• Don’t try to tell us that the US Treasury and the Federal Reserve don’t know that this is true and correct. They have BRAINS in both institutions: they can work it out for themselves: they don’t need to read about what they should be doing on this website. However MILLIONS of people around the world DO READ THIS WEBSITE, and they KNOW that this simple logic is ACCURATE.

Sooner, rather than later, the Obama White House and the Treasury will be FORCED to recognise that they should have done what the G-7 asked them to do, starting in 2007.

If they had paid attention, they would not have got themselves, through GREED and pride, into the horrendous, terminal mess they now face.

THE PRIMARY MOTIVE UNDERLYING THE RECKLESS BAILOUTS
The media focus on A.I.G., a huge laundry originally created under Frank Gardiner Wisner (born on 23rd June 1909; died on 29th October 1965) has failed to identify the most pressing factor that has been driving the reckless Fed money-spraying behaviour, which will generate hyperinflationary pressures the ‘early green shoots’ of which are already apparent. It is this:

• Placing compromised entities such as AIG (or General Motors) into bankruptcy would involve the appointment of a TRUSTEE. Under US bankruptcy arrangements, a Bankruptcy Trustee has almost unlimited powers to investigate every facet of what has been going on. One obvious focus of the Trustee’s investigations would be the 728++ AIG offshore ‘subsidiaries’, of which we have published a small sample in an earlier report [Archive].

• Many of these subsidiaries have names such as ‘Baker’ This and ‘Baker’ That; and one wouldn’t want the spotlight thrown onto James A. Baker III, would one?

So rather than implicate themselves further, the perpetrators are instead cynically mortgaging the futures of the next several generations of Americans by engaging in a reckless orgy of desperate Fraudulent Finance and creating colossal official debt in the background, which guarantees that the ‘enforcement arm’ of the World Revolution (the United States military) will in just a few years be unable to project its dangerous power around the world (a good thing) and that the Pax Americana, like the Anglo-American ‘special relationship’ (see below) has been destroyed.

All this is being done for one primary reason: to try to minimise the devastating consequences for the perpetrators of the ongoing exposures and the unravelling of the Fraudulent Finance orgy that has brought the whole world (deliberately?) to the brink of avoidable catastrophe.

A.I.G. FOUNDER FRANK WISNER SR.: LIAISON TO THE NAZI GEHLEN ORGANISATION
Frank Gardiner Wisner was a key figure linking the penetration of the US intelligence structures by Nazis to the present millennial crisis of the World Revolution. After being transferred from the US Navy Censor’s Office, Frank Wisner Sr. was transferred to the Office of Strategic Services (OSS), predecessor of the Central Intelligence Agency, and served in Turkey and Romania. His agents penetrated the Romanian Communist Party and the headquarters of the Soviet Army in Bucharest, whence he discovered that the Soviet Union intended to ‘annex’ the whole of Eastern Europe.

In March 1945, Wisner was transferred to Wiesbaden, Germany, where he served as OSS liaison to the Gehlen Organisation. General Reinhard Gehlen, referenced in some detail in the Editor’s book The New Underworld Order, was the brutal Nazi repression chieftain in the German-occupied areas of the Soviet Union, responsible for untold atrocities.

The Editor’s book explains, drawing from open information, that Gehlen, over time, managed to persuade the gullible Americans that Stalin, having supposedly absorbed Eastern Europe, was poised several years after the end of the Second World War, to overrun Western Europe with 210 divisions. Soviet Divisions are smaller than Western military divisions, but even so, at that time only one and a half of Stalin’s divisions which the strategic deceiver Gehlen represented were standing by to invade Western Europe, were mechanised.

• FACT: The rest were sill horse-drawn, in World War I mode!

With the postwar US State Department penetrated by agents of influence working for the German cause, the de-Nazification process was placed into reverse without President Truman’s approval, and very large numbers of Nazi scientists who had been working on Heinrich Himmler’s mind and personality control abominations and other hideous activities, were transferred by proprietary CIA transport aircraft under ‘Operation Paperclip’ and later programmes, to the United States with their families, with a sizeable contingent of Abwehr officers whose slates had abruptly been wiped clean.

This vote-face occurred after General Reinhard Gehlen had falsified information about Soviet intentions fed to the Americans, and had re-recruited many of his former operatives to operate clandestinely under cover of the Iron Curtain environment which focused the West’s attention exclusively on ‘containing the Soviet Union’, leaving Gehlen and his organization and associates free to pursue the Nazi long-range strategy that had been developed at the German Geopolitical Centre in Madrid, established in 1942 by the Nazi intelligentsia and the Abwehr, which had always recognized that Hitler was expendable.

These operatives perceived that the defeat of Hitler could be turned almost immediately to their advantage because the West would be likely to jump to the false conclusion that the death of Hitler would be synonymous with the permanent destruction of Nazism – a perception which proved to be accurate. In the new environment, and having effectively penetrated the CIA by the late 1940s, the Nazi cadres were free to pursue their long-range strategy without let or hindrance, especially since the East German State, while clothed in Communist garb, was actually a de facto continuation of the Nazi régime, with the East German STASI secret police operating precisely along Gestapo lines.

Information obtainable at Arlington National Cemetery reveals that Frank Wisner Sr. committed suicide in 1965 using one of his three sons’ shotguns, and was buried in the Cemetery as a naval commander, his wartime rank. The reason for Frank Wisner Sr.’s suicide has never been explained, but the official ‘line’ includes the following assertions, posted on a certain US intelligence website which ‘facilitates’ the rewriting of history:

• Wisner Sr. was recruited in 1947 by Dean Acheson to join the US State Department’s Office of Occupied Territories. When, a year later, the CIA invented a covert operations cadre, the Office of Policy Coordination (OPC), Frank Wisner Sr. was placed in charge.

The OPC’s secret Cold War charter included ‘propaganda, economic warfare, subversion against hostile states, including assistance to underground resistance groups, and support of indigenous anti-Communist elements in threatened countries of the world’.

• Wisner was responsible for establishing Operation Mockingbird, the purpose of which was to influence the foreign AND DOMESTIC media. This ongoing programme remains an extreme menace domestically, to this day, embracing approximately 60 websites, for instance, which routinely punch out deliberately confusing diversionary lies and disinformation – with the main orientation in the prevailing chaotic context being that its primary purpose these days is to obfuscate the rampant Fraudulent Finance operations that the US intelligence community has developed and exploited in order to finance its status as the arrogant, uncontrolled ‘State within the State’.

A key further purpose of Operation Mockingbird in its contemporary manifestation is to throw sand in the eyes of the 320,000+ scammed Ponzi victims who have been robbed blind by these official criminals and their underworld collaborators, in order primarily to prevent them from reaching for the weapons in their attics simultaneously.

Its overarching purpose is to generate as much confusion as possible, so that the reality that the entire Fraudulent Finance crisis is one gargantuan Ponzi Fraud is constantly obfuscated. Prior to the exposures, its main purpose domestically was to keep the 320,000 scammed Ponzi victims living in la-la land, entertained by the false gods Atonn, and Atonn with his Hatonn, and a-dreaming MK-Ultra-type dreams with space ships replacing moving stairways in accordance with mental taste.

• In 1952, Wisner was appointed head of the CIA’s Directorate of Plans, with Richard Helms as his operational chief, and control of 75% of the CIA’s formal budget. He was instrumental in bringing about the fall of Mohammed Mossaddegh, an Iranian Jew, in Tehran, and Jacobo Arbentz Gusmán, also of Jewish extraction, in Guatemala.

• When the FBI Director, Mr J. Edgar Hoover, became ‘jealous’ of the CIA’s unfettered power, he investigated the past histories of the OPC operatives, establishing that many of them had been active in left-wing politics in the 1930s. The information was provided to Joseph McCarthy, briefed to run an operation to discredit Communism. Hoover made sure that McCarthy was given details of an affair that Wisner had conducted with Princess Caradja in Romania during the war. Hoover also claimed that the Princess was a Communist agent.

• Crucially, Wisner worked closely with the British traitor Kim Philby, the British agent who was eventually unmasked as a Soviet spy but is believed by this service to have worked for the Nazis.

• The official ‘line’ concludes that Wisner was mentally destabilised by the Soviet crushing of the Hungarian Revolution – a piece of imaginative make-believe that we consider to be laughable.

However what is not laughable is that he then underwent psychoanalysis and was subjected to electroshock therapy. After treatment and apparent recovery, Allen Dulles, CIA Director of Central Intelligence, a long-term Abwehr agent, appointed Frank Wisner to be chief of the London Station. However he was judged to be still suffering from mental illness, was recalled to Washington, and agreed to retired from the Agency.

THE CIA BACKGROUND OF FRANK WISNER JR., A.I.G. VICE CHAIRMAN
Frank G. Wisner, eldest son of Frank Wisner Sr., born in 1938, very conveniently announced his intention to retire from the position of Vice Chairman, External Affairs, for American International Group (AIG) on 13th February 2009, when the heat in the kitchen became too hot. He had joined AIG in 1997, and was a Director of AIG from that year until 2003.

Here is a list of Frank G. Wisner Jr.’s ‘accomplishments’, apart from the senior AIG positions that this veteran and prominent CIA operative has held:

• US Agency for International Development, Vietnam, 1964-68.
• GAP in record from 1968 to 1979.
• US Ambassador to Zambia,, 1979-82.
• US Ambassador to Egypt, 1986-91.
• Senior US Deputy Assistant Secretary for African Affairs, US State Department, 1982-86.
• US Ambassador to the Philippines, 1991-92.
• US Under Secretary of State for International Security Affairs, 1992-93.
• Under Secretary for Policy, US Department of Defense, 1993-94.
• US Ambassador to India, 1994-97.
• Member of the Board of ENRON, 1997-99.
• Member of the Board of EOG Resources, 1997-
• Partnership for a Secure America Advisory Board Member.
• Trustee, Rockefeller Brothers Fund.
• Director, US-India Business Council.
• Member, Council on Foreign Relations (CFR).

Wisner Jr.’s domestic political affiliations illustrate our central point that it is neither here nor there which of the two wings of ‘The Party’ wins elections, as the Intelligence Power (the ‘State within the State’) always wins. He is named as having been associated with:

• Bill Bradley for President;
• Friends of Dick Lugar;
• Friends of Hillary;
• George W. Bush for President;
• Gore 2000;
• Hillary Clinton for President;
• John Kerry for President.

Politically, therefore, this man is whatever the male equivalent of a prostitute happens to be: totally devoid of principles and with infinitely ‘variable’ loyalties, and therefore ethics – a view confirmed by Vijay Prashad, then Assistant Professor of International Studies at Trinity College, Hartford, CT, in 1997. The Assistant Professor wrote:

‘When Wisner was US Ambassador to the Philippines (1991-92), Enron was engaged in negotiations to manage the two Subic Bay power plants. When Mr Wisner left Manila in July 1992, Enron won the contract and started managing the plants in January 1993. During Wisner’s long tenure in India, he fought long and hard to secure various deals for Enron’, and only left India when it appeared that Enron’s prospects in India, thanks to bribery and corruption, were secure.

Enron, of course, could hire whichever CIA operative it liked to do its dirty work, given that CIA operatives all believe they are protected from the consequences of their endless crimes by the crooks’ charter known as the National Security Act (et seq.), 1947. Thus, for instance, Vijay Prashad also pointed out that, to gain access to a lucrative contract to rebuild the Shuaiba power plant in Kuwait after it had been conveniently destroyed in Bush Sr.’s war, Enron hired James A. Baker III as consultant, ‘who travelled to Kuwait to negotiate for Enron’, a CIA scamming operation which, like BCCI before it, was later stripped bare, its cash and borrowings used for illicit off-balance sheet, untaxed, clandestine leveraging and hypothecation Fraudulent Finance to generate ‘new money’ for the overall Ponzi Programme and to help finance the corrupt CIA ‘State within the State’, and then left to wither as a corpse.

One imagines that the prospect for this 70-year old of winding up contemplating cockroaches in the Metropolitan Correctional Center along with Madoff while awaiting trial for his part in the scamming operations perpetrated by A.I.G., should it finally collapse, was less than enticing: hence his exit.

We will now address some broader related issues before reverting to current themes.

U.S. SEEKS CONTROL OF INTERNATIONAL CRIME, TERRORISM AND DRUG TRAFFICKING
On 8th November 2005, The Jewish Institute for National Security Affairs [JINSA], which is located in Washington, DC, published a press release about a panel it had sponsored on ‘Terrorism in Latin America’, in which it reported that the event had been opened by the hardline ‘conservative’ US Republican, Congressman Dan Burton, who had made the following statement: and we quote:

‘US national security interests in South America include control of international crime, terrorism, and drug trafficking’.

Congressman Daniel Burton did NOT say:

‘US national security interests in South America include DEFEAT of international crime, terrorism, and drug trafficking’. OR:

‘US national security interests in South America include ERADICATION of international crime, terrorism, and drug trafficking’. OR:

‘US national security interests in South America include REDUCTION of international crime, terrorism, and drug trafficking’. OR:

‘US national security interests in South America include SUPPRESSION of international crime, terrorism, and drug trafficking’.

NO. What Congressman Burton said, DELIBERATELY AND SPECIFICALLY, as reported in the JINSA Press Release (page one) was:

‘US national security interests in South America include CONTROL of international crime, terrorism, and drug trafficking’.

In other words, the Congressman spoke the truth. Yes, it is indeed United States policy to:

• CONTROL international crime (i.e. to RUN international criminal operations).

• CONTROL terrorism (i.e. to orchestrate international terrorism on an open-ended basis).

• CONTROL drug-trafficking worldwide.

You will already have observed, no doubt, that although Congressman Dan Burton was addressing a REGIONAL conference (on terrorism in Latin America) he did not in fact qualify his remarks so that they referenced just Latin America alone. NO. What he did was to emphasise that it is in the United States’ national interest to ‘CONTROL’ international crime, terrorism and drug-trafficking.

• Not REGIONAL crime, terrorism and drug-trafficking, but GLOBAL ditto.

Just consider precisely what this means. In summary, what the Congressman said was that the entire complex of US Government assets and power is geared to achieving CONTROL over these heinous activities, that is to say SPONSORING, DEVELOPING AND EXERCISING HEGEMONY OVER THESE CRIMINAL OPERATIONS. When did the American people authorise THAT?

And Congressman Burton helps us all to understand that it is ‘in the US national interest’ that the United States’ Government IS a criminal enterprise.

This being the case, we should not be surprised at any of the abominations involving despicable operatives in high places that have been referenced in these reports since we had to start posting them. After all, IT IS IN THE U.S. NATIONAL INTEREST that these abominations should take place!

A CRIMINAL GOVERNMENT OPERATING ON DURKHEIM PRINCIPLES
Welcome back to the DURKHEIM PARADIGM: the model used by these Fraudulent Finance types.

Emile Durkheim (1856-1917), postulated and promulgated that the ‘natural’ norm for humankind was criminality, and that the absence of criminal behaviour was by definition aberrant. Note that in so doing, Durkheim not only specifically contradicted the glorious hope and truth of Jesus Christ, but also the core teachings of his own Torah. According to Durkheim, the Rule of Law and adherence to it are disoriented, perverse, eccentric and somewhat pathetic.

Notice any relationship to the arrogant criminal high-level behaviour spelled out in these reports?

BUSH-CLINTON-CIA DRUG-TRAFFICKING LINKS TO STANFORD OPERATION
Next, you may by now have had a chance to read through the full text of the Complaint filed by the Securities and Exchange Commission on 16th February against R. Allen Stanford, James M. Davis, Laura Pendergest-Holt, Stanford International Bank Limited, Stanford Group Company and Stanford Capital Management LLC posted by this service on 12th March 2009.

This Bush-Clinton money laundry operation developed from the Tupelo and Memphis laundry used by the Clinton gang, and subsequently by the Bush gangsters when they were running ‘Black’ drug deliveries into Miami and Mena, Arkansas. The Chief Investment Officer for Stanford, 35-year-old Laura Pendergest-Holt, who was also head of ‘transfer operations’, was arrested on 25th February and taken to a location near Houston described to us by a Houston-based source as ‘super-secret’. Word from the source, based on ‘inside’ information, was that she was ‘singing like a canary’, and would be arraigned before a Federal Court on 27th February 2009. However, like ‘Sir’ Allen Stanford himself, this woman has in fact refused to cooperate with the special (not regular) FBI investigating team, and with the United States District Court for the Northern District of Texas, Dallas Division.

According to our sources, the ‘transfer operations’ involving colossal sums of money were those designated in the S.E.C. Complaint as ‘Tier 3 Investments’. You can read how Stanford represented these investments by perusing the complete text of the Complaint [see Archive].

So what we have is another Bush-Clinton money laundry and criminal finance distribution operation handling drug proceeds (‘Black Ops’), in the process of being closed down. And it will have been observed that 70-year-old Bernard L. Madoff pleaded guilty to all 11 counts against him, refusing to acknowledge that his operation was part of a much broader conspiracy (as was the case, given that Madoff was ‘recruited’ we understand, by the Bush Spider [‘Die Spinne’]).

As a result, Madoff, who will be sentenced in June, faces serving;

• 20 years for Securities Fraud (Count One);
• 5 years for Investment Adviser Fraud (Count Two);
• 20 years for Mail Fraud (Count Three);
• 5 years for Wire Fraud (Count Four);
• 20 years for international money laundering to promote specified unlawful activity (Count Five);
• 20 years for international money laundering to conceal and disguise the proceeds of specified unlawful activity (Count Six);
• 10 years for Money Laundering (Count Seven);
• 5 years for False Statements (Count Eight);
• 5 years for perjury (Count Nine);
• 20 years for making a false filing with the SEC (Count Ten); and:
• 20 years for theft from an employee benefit plan (Count Eleven).

REASON FOR REFUSAL TO IMPLICATE OTHERS: DEATH THREATS TO FAMILY MEMBERS
Obviously, in Madoff’s case, the prospect of him dying in prison could not be higher. In the case of Pendergest-Holt, however, she would possibly expect to be freed by her 65th birthday if she had been prepared to implicate others (which she is reported to have done when ‘singing like a canary’ but this is inconsistent with the reported fact that she is ‘not cooperating’).

Assuming that she is not, we have (a) Mr Madoff who would have nothing to lose (ostensibly) by cooperating, since his outcome would not be affected; and (b) Pendergest-Holt who could improve her prospects some, by cooperating. So why aren’t these people (including Stanford who, it will be recalled, was picked up in Virginia, intelligence community country, after his Credit Card had been refused by a firm he approached to fly him privately to Antigua), cooperating with authorities?

There can be only one obvious explanation for this common factor: they have all been threatened: if you ‘shop’ other components of the Octopus, we’ll murder your family members.

OTHER PONZI SCHEMES ON BRINK OF BEING EXPOSED: ‘PONZIMONIUM’
On 20th March, Bart Chilton, a Commissioner for the US Commodities Futures Trading Commission, said that ‘rampant Ponzimonium’ was being uncovered by the authorities all over the place. And as previously reported here, it is believed that at least TEN large European Ponzi schemes are ‘waiting to unravel’ ‘as we speak’. Some are believed to be larger than the Madoff frauds.

MADOFF ACCOUNTANT FRIEHLING ARRESTED: SECURITIES FRAUD
On 18th March 2009, David G. Friehling. Madoff’s accountant, who operated from a small storefront office in the New York City suburb of New City in Rockland County, was arrested and charged with securities fraud and with aiding and abetting the investment adviser fraud perpetrated by Bernard L. Madoff. A related civil case was filed against him and his firm, Friehling and Horowitz, by the Securities and Exchange Commission.

Friehling was accused by United States Attorneys Lisa A Baroni and Marc Litt, in a filing before United States Magistrate Judge Theodore M. Katz, Southern District of New York, of deceiving investors by creating false and fraudulent certified financial statements for Bernard L. Madoff Investment Securities LLC and its predecessor corporation, and causing those certified financial statements to be filed with the US Securities and Exchange Commission (Securities Fraud: Count One). Count Two accused Friehling of Investment Adviser Fraud; Counts Three to Six dealt with False Filings with the Securities and Exchange Commission.

Special FBI Agent Keith D. Kelly stated in his sealed complaint, of which the Editor obtained a copy from the United States Court for the Southern District of New York on 20th March 2009, that David G. Friehling’s audit workpapers did not include documentation showing that Friehling had:

• (a) Conducted independent verification of his client’s assets;
• (b) Reviewed material sources old Madoff revenue, including commissions;
• (c) Examined a bank account through which billions of dollars of Madoff’s clients’ funds flowed;
• (d) Verified liabilities related to Madoff client accounts; or:
• (e) Verified the purchase and custody of securities by Bernard L. Madoff Investment Securities LLC and its predecessor, Bernard L. Madoff Investment Securities.

The FBI Agent stated that Friehling did not request back-up documents or make enquiries required for any auditing procedure that is compliant with accepted standards, and failed to take any steps, between 1994 and 2008, to test internal controls over key areas such as redemptions by Madoff’s enterprises of clients’ funds, the payment of invoices for corporate expenses, or the purchase of securities by Madoff for its clients. (It has been separately confirmed that Madoff did not purchase a single security for at least 13 years).

The American Institute of Certified Public Accountants (AICPA) requires that accountants who are members and who perform audits must undergo a peer review process, which includes a review of audit work papers. The FBI Special Agent elaborated that ‘each year, from at least 1994 through and including 2008, while he was certifying to the SEC that he was performing annual audits of Bernard L. Madoff Investment Securities in conformity with [the required standards], David G. Friehling, the Defendant, represented to the AICPA that he did not perform any audits, thereby avoiding the peer review process’.

This contradiction, extremely damaging for Friehling, highlights the PRACTICAL CONSEQUENCES of Fraudulent Finance upon discovery of the frauds in question. What is happening generally is that similar contradictions are being exposed every day, clashing with the Rule of Law in an endless series of ‘train wrecks’, which will continue for years.

Agent Kelly added:
‘In each… Report accompanying Bernard L. Madoff Investment Securities’ financial statements, Friehling… falsely stated that “we conducted our audit in accordance with auditing standards generally accepted in the United States of America”, when in fact he had not. Friehling also falsely stated that the audit “include[d] examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements”, when in fact, no such examination ever took place.

The acting Director of the SEC’s New York office informed The New York Times (20th March 2009) that Friehling ”essentially sold his license to Madoff for more than 17 years while Madoff’s Ponzi scheme went undetected”.

Further, under US law (Title 17, Code of the Federal Regulations, Section 240.17a-5(f) (3), the accountant must be independent in accordance with the provisions of Title 17, Code of Federal Regulations, Section 210.2-01 (b) & (c). Under that provision, an accountant’s independence is impaired when an accountant, or an accountant’s immediate family member, has ‘brokerage or similar accounts maintained with a broker-dealer that is an audit client if… the value of assets in the accounts exceeds the amount that is subject to a Securities Investment Protection Corporation [SIPC] advance, for those accounts, under Section 9 of SIPA (16 U.S.C. paragraph 78fff-3)…. Under Title 15, United States Code, Section 78fff-3(a), advances from SIPC are limited to a maximum of $500,000 to each customer’.

At the end of each year, between at least as far back as 1995 and 2007, an account owned by Friehling or his wife held equity balances in excess of $500,000. If convicted on all six Counts, David Friehling faces 105 years in prison. In Part 1 of our list of Madoff ‘victims’, posted on 6th February 2009 [Archive], the following Friehling accounts are displayed:

DAVID FREIHLING FRIEHLING AND HOROWITZ FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FRIEHLING & HOROWITZ CPA PC FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FRIEHLING & HOROWITZ CPAS FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FRIEHLING & HOROWITZ CPAS FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FRIEHLING AND HOROWITZ FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW YORK, NY 10956
DAVID FRIEHLING FOUR HIGH TOR R0AD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05403
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956H5703
DAVID FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID G FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID G FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOUR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956 05703
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956
DAVID G FRIEHLING CPA FOUR HIGH TOR ROAD NEW CITY, NY 10956

DOUBLE STANDARD FOR MUNICIPAL ISSUERS
The Securities and Exchange Commission under Mary Schapiro, its new chief, is now of course trying to rectify its own battered reputation for laxity. Given its reportedly laid-back attitude for years while these abuses were both routine and accumulating, it cannot now afford to allow a single exposed instance of breach of the Securities Acts and regulations to be overlooked.

• Yet at the same time, municipal issuers are reported to be among the worst offenders in terms of lax filing behaviour in conformity with their statutory obligations.

According to research published in The New York Times on 22nd March 2009, even though US hospitals, cities and states that borrow money are required by their bond covenants to make the required filings, nondisclosure among the community of nearly 65,000 US municipal issuers is commonplace. DPC Data, based at Fort Lee, New Jersey, which collects information on municipal securities transactions, says that 50% of such issuers are more than a year late with their filings with the SEC, while 25% are said to be chronically delinquent, by three years or more.

Apparently legislation on the Statute Book dating from the 1970s restricts the SEC’s powers to investigate municipal issuers that fail to make the required disclosures. The SEC can spring into action only if fraud is suspected. This means that when fraud does take place in this $2.7 trillion marketplace, but is not suspected, the perpetrators ‘walk away’. The small print enables the SEC to take action against brokerage firms that underwrite municipal bonds if the brokers ‘allow’ an issuer to sell debt securities without being up to date with filings for the most recent five years. However such interventions are described as ‘unusual’, code for: it never happens.

Industry insiders therefore confirm that noncompliance with filing requirements in this sector attracts zero penalty. Peter J. Schmitt, Chief Executive of DPC Data, said that failure to enforce disclosure rules in the municipal securities market ‘has created a no-penalty environment that leaves investors defenceless against questionable practices by dealers’.

One proposal now before Congress is that the Municipal Securities Rule-Making Board, a self-regulating agency established by Congress in 1975 to devise rules by brokerage firms and banks that sell and trade in municipal bonds, should be merged with the SEC, which already ‘oversees’ its operations: to no apparent effect.

All in all, this represents another vast US marketplace in which parties appear to have been playing fast and loose with the rules, so that investors may have been paying over the odds for distressed bonds without being aware that the debt issuers were under stress, let alone that fraud was going undetected: another instance of double standards: one standard for the likes of David G. Friehling, and another for a hospital board in Cincinnati, Ohio.

SLOW AND PAINFUL PROGRESS IN ‘TAKING DOWN’ THE OCTOPUS
As the SEC Stanford Complaint [Archive: 12th March] makes clear, the Stanford leg of the Octopus was destabilized as a direct consequence of the Madoff implosion, which followed the ‘lockdown’ on 10th-12th September 2009 of the $14.0 trillion of real funds, including the $6.2 trillion of LOAN money belonging mainly to the British Head of State and made available to finance the Group of Seven-Approved on-the-books Dollar System Refunding operation described in previous reports.

Madoff was battling with a reported $7.0 billion of redemption requests from October 2008 onwards, after ‘spare’ liquidity had completely dried up, except for drug money flows, completely, following the ‘lockdown’. Likewise, the SEC’s Stanford Complaint document revealed that ‘in recent weeks… an increasing amount of liquidation activity’ had been monitored, plus ‘attempts to wire money out of its investment portfolio’. The Commission had received information ‘indicating that in just the last two weeks, SIB has sought to remove over $178 million from its accounts’.

Accordingly, the sequence of events is clear: ‘lockdown’ of the real-money $14.0 trillion, triggered on our advice as a consequence of the rampant ongoing abuses of these funds perpetrated by the US authorities and the corrupt US money center banks participating in the US Treasury’s Custodial Account network; the consequent drying up of interbank market liquidity, drug money flows being insufficient to keep the vast carousel going; exposure and implosion of the Madoff Ponzi networks; leading directly to the exposure and implosion of the Stanford Fraudulent Finance operations.

Although it is true that Ponzi Scheme collapses such as these are considered by the biggest and most ruthless ‘players’ to represent mere collateral damage while ‘life moves on’, the reality is that these developments represent material gains in the process of ‘taking down’ the Octopus, which has so many tentacles that it may well take more than a generation for the beast to be slaughtered. But just remember the state of affairs two years ago: back then, the US criminalist classes thought there would and could never be any effective opposition. Recent events and have compelled some of the less arrogant of these creatures to accept that they were wrong.

Which makes it all the more extraordinary that, notwithstanding such developments, the stealing and diversion of funds has continued on an even larger scale, according to reports received during the first quarter of 2009, under Obama than under the discredited predecessor régime – even though some observers think that Mr Obama is not in charge of events.

STANFORD OPERATIONS AND THE OCTOPUS
Whether Obama is or not, a photograph of Mr Obama and Stanford published by Wayne Madsen’s service on 19th February, and public domain intelligence to the effect that Stanford’s island base of Antigua has featured prominently as a center of operations for the Israeli-Russian mafiya, make it clear (a) that President Obama knew about Stanford before he came to office and (b) that Stanford’s activities, in which many governments have taken an interest for years, were unsavoury. Stanford, who has been exposed as a long-time associate of the Bush Crime Family, has his Houston offices, Madsen reported, ‘directly across Westheimer Road in the part of the Galleria complex where the Carlyle Group offices are located. Coincidence? Not with the Bush criminal cartel’.

• On 18th March it was reported that Madsen was arrested while he was meeting a source with knowledge of Stanford’s connections, but both were later released.

According to ABC TV, in 2008 Mexican authorities seized one of Stanford’s private jets as part of an investigation into the Gulf Cartel by both the Mexican authorities and the FBI. Inside the cabin of the Gulfstream jet, police found cheques connected to drug cartel recipients. On 1st January 2009, the one-man-band accountant based in Antigua who had provided Stanford with ‘auditing’ and related services, died mysteriously just one day after the expiry of his contract with Stanford.

STANFORD ‘TOOK OVER’ FROM NORIEGA AGAINST WHOM LEHDER TESTIFIED
As previously reported, R. Allen Stanford ‘took over’ from Noriega, after Bush Sr. had double-crossed the Panamanian operative; and indeed, drug-running connections to Stanford are widely accessible in the public domain. Which brings in the covert DVD operative, Carlos Lehder Rivas, born in the United States of a Colombian mother and a German father.

Carlos Lehder began his life of crime as a low-level drug dealer in Michigan, and after doing time in jail for a drug-related car theft, Lehder ‘decided’ to seek his fortune in Colombia, according to the open ‘legend’. In reality, he was targeted and then recruited by or on behalf of the German ‘Black’ counterintelligence agency which is the heir of the Nazi Abwehr, Deutsche Verteidigungs Dienst (DVD), based in Dachau, near Munich, almost certainly with the knowledge or on the instructions of George H. W. Bush Sr., the top Godfather implementing long-range DVD criminalism strategy in the Americas. As we have repeatedly mentioned, the headquarters building of the Central Intelligence Agency is named the George Bush Center for Intelligence, a simple fact which itself confirms the pinpoint accuracy of Congressman Dan Burton’s revealing admission above.

Lehder was so well-placed that when housed in a two-cell unit at the US Penitentiary in Marion, IL, he was given a telephone, which he used to contact aides to the then-Vice President George H. W. Bush, who had been in charge of the CIA during the early years of the Medellín Cartel. The Editor’s book The New Underworld Order develops intelligence to reveal that the Colombian drug cartels were in fact established with the close assistance of the CIA and that foreign operations inside the CIA (which turned out to be German and Soviet) were instrumental in their evolution.

EFFICIENT TEUTONIC ORGANISER OF THE MEDELLIN CARTEL FOR BUSH/CIA
According to a report in the Pittsburgh Post-Gazette published in May 1996, Carlos Lehder Rivas used an efficient, high-tech approach to cocaine smuggling that facilitated the bulk shipment of the drug in mass volume. Using a remote landing strip, Norman Cay, in The Bahamas, which Lehder had secured by bribing Bahamian officials and scaring off inhabitants.

Lehder arranged for jets loaded with bulk cocaine to land at Norman Cay, where the drug would be loaded onto similar aircraft and dispatched into northern Florida, Georgia and the Carolinas. These unexpected destinations made evasion easier because the authorities were only then watching the United States’ southern borders.

Following this ‘success’, Lehder talked other drug lords into forming a cooperative based in the northwestern industrial city of Medellín. At the peak of the Medellín Cartel’s power, a jet loaded with up to 300kg of cocaine would fly into the small Bahamian airstrip every hour of every day, 24/7. The similarity with the operation using the Mena, AK, airport facility has not been lost on observers.

CATALOGUE OF VIOLENCE UNLEASHED BY LEHDER
Gross, unfettered, demonic violence, typical of the German Nazi mentality, accompanied all of the Medellín Cartel’s operations.

A US Federal detention order for Lehder drawn up in 1987 stated that Lehder and other Medellín Cartel operatives were responsible for assassinating the Colombian Justice Minister in 1984; for the 1985 armed attack on Colombia’s Supreme Court building that killed eleven justices and 84 other people; for assassinating two Colombian newspaper editors and 26 other journalists; for shooting the Colombian Ambassador to Hungary in 1987; and for a long list of murders of police officers, informants and government officials. Lehder also threatened to kill one Colombian Federal Judge a week if he was caught, prompting US officials to place narcotics agents, their families and other officials on worldwide alert after Lehder was finally arrested.

Yet when, following three years of US pressure on Colombia to adhere to an extradition treaty and turn Carlos Lehder Rivas over, he was finally extradited, Lehder was given kid-gloves treatment from the outset. For ‘public consumption’, the reason for this approach was that the Government wanted Sr. Lehder to testify against General Noriega, who had interfered with the George Bush Sr.-related drug operations in the region (i.e. Bush had double-crossed Noriega, as he always does, not the other way round).

In reality, Lehder’s evidence, as previously reported, was useless: and Mr Robert Merkle, the US Attorney at Tampa, Florida, at the time, who had prepared a Noriega indictment, believed that he had more than enough evidence against Noriega for any input from Lehder to be superfluous.

In the event, Carlos Lehder testified that he had had no direct contact with Noriega, although he acknowledged that the Medellín Cartel had paid millions of dollars to the Panamanian President. For much of his testimony against Noriega, Carlos Lehder Rivas in fact indulged in rambling tirades about US imperialism. This is routine among not only the ‘former’ Soviet apparatus, but among Nazi operatives, to this day. Anyone who doubts this fact should study the hatred tirades by Argentine Nazis against the United Kingdom, as part of the ongoing DVD-manipulated campaign by Argentina (which has failed) to acquire sovereignty over the Falkland Islands.

• In 1982, the Argentine junta was given the ‘green light’ by the secret German ‘Black’ penetration agent, George H. W. Bush Sr., then Vice President of the United States and in charge, therefore, of the National Security Council, to invade the Falklands.

LEHDER EXFILTRATED TO GERMANY UNDER CORRUPT 2000 ELECTION PAYOFF DEAL
When the time came for the 2000 US Presidential election to be stolen, ready money was needed to pay off the Democratic National Committee (which received a $32 million payoff) plus the judicial, law enforcement and legal parties whose cooperation suddenly became necessary and who were to be paid $8 million: whereupon Lehder was tapped in jail for the necessary $40 million in bribes.

The deal was that the top representative of the Bush Crime Family who required the ready cash (because of course the Bush Crime Family could not be expected to part with a single rotten cent of their own ill-gotten gains) would arrange for Lehder’s immediate exfiltration to GERMANY in exchange for Carlos Lehder Rivas extracting $40 million from a bank account on demand.

STANFORD LINKS TO FUND RUN BY BIDEN FAMILY MEMBERS
Recalling again that the Stanford tentacle of the Bush-Clinton-CIA money laundering and financial distribution network ‘took over from’ Noriega’s drug-trafficking operations, the revealing article entitled ‘Stanford has links to a fund run by the Bidens’ published in The Wall Street Journal on Tuesday, 24th February 2009, was clearly of more than incidental interest. The report stated:

‘A fund of hedge funds run by two members of Vice President Joe Biden’s family was marketed exclusively by companies controlled by financier R. Allen Stanford, who is facing Securities and Exchange Commission accusations of engaging in an $8.0 billion fraud’.

‘The $50 million fund was jointly branded between the Bidens’ Global Advisors and a Stanford Financial Group entity and was referred to as the Paradigm Stanford Capital Management Core Alternative Fund’. ‘Paradigm’ is a high-level Masonic key-word. Stanford-related firms marketed the fund to investors. Paradigm Global Investors is owned through a holding corporation by the Vice President’s son Hunter, and Joe Biden’s brother James, the newspaper stated.

Paradigm’s Attorney, Mr X. LoPresti, told The Wall Street Journal that ‘the fund has offered to turn over the $2.7 million investment it received from Mr Stanford’s firm in 2007 to a Court-appointed receiver in the SEC’s civil fraud case involving Mr Stanford’.

Crucially, Mr LoPresti told the newspaper that the Stanford entities put up the $2.7 million in seed money and marketed the (Paradigm) fund to investors. SEC records show that the fund, which was launched in June 2007, had 104 investors as of November 10, 2008, with assets of $49.8 million. Paradigm, based in New York, manages assets worth about $270 million.

Paradigm is/was mentioned on the website of a Stanford entity called Stanford Trust Company, as one of that firm’s ‘investment management strategies’.

Attorney LoPresti confirmed that under an agreement, the Stanford group was entitled to share in a proportion of the fund’s management and performance fees.

When the Bidens bought Paradigm in 2006, the purchase was accompanied by bitter litigation. A knowledgeable source separately references the sale of the MBNA Credit Card operation to the CIA’s very own Bank of America, the proceeds of which deal provided lubrication.

It will have been observed that if Stanford, a Fraudulent Finance operation, was marketing the Biden-owned Paradigm fund to investors, the owners and managers of the Paradigm entity, viz. members of Vice President Joe Biden’s family, may have been co-conspirators in the marketing of fraudulent securities to Americans in various US States. Wire Fraud. 20 years.

OTHER BIDEN BACKGROUND SCANDALS
Separately, Joe Biden had to agree finally to pay for the hire of a jet plane, after ignoring repeated requests for payment from the owners of the aircraft. This particular Biden scandal was exposed by an accountant (CPA), whom Biden still reportedly owes $15,000. A distinguished lady known to the Editor for many years now, worked on Mr Joe Biden’s Presidential campaign financial disclosure engagement. The source tells us:

‘I busted it for him and got everything right. He stiffed me for over $15,000 worth of work. He refused to pay once he dropped out of the race. I undertook similar Capitol Hill campaign financial disclosure work for Bob Dole, Pat Buchanan and a Democratic Candidate for Ambassador to New Zealand. All those folks paid me even though they either lost the election or else did not get the appointment. That type of work is very demanding and very tedious because your efforts are scrutinized by Congress. Biden did not care’.

BIDEN ATTEMPT TO SET US UP/USE THIS SERVICE
As previously reported, the Editor exercised his discretionary right NOT to publish certain details that were proffered to us over the weekend of 7th-8th March 2009 – at the instigation, it transpired, of Vice President Joe Biden and certain gentlemen of Italian extraction.

Specifically, Michael C. Cottrell, B.A., M.S., received an insistent request for him to ‘ask’ the Editor to publish certain information which would have had the effect of shifting the blame for ongoing financial misappropriations and thefts squarely onto the previous (Bush) Administration, thereby redirecting the focus of attention away from the ongoing sabotage of overdue settlement payments perpetrated under the Obama-Biden Administration itself.

The only element of the information, which had been made available to the Editor IN WRITING, that was used, was the request from US sources for us to amend our earlier reference to ‘about $50 billion of funds belonging to The Queen’ having been stolen in the context of the withdrawal on 29th January 2009 of the $14 trillion in cash including the $6.2 trillion of LOAN funds, to read ‘$52 billion of ‘guarantees’ signed by the Queen (no funds stolen)’.

A guarantee with The Queen’s signature could arguably be said to be by far the most valuable prospective collateral in the world: so the stealing of these guarantees worth $52 billion face value seems to us to be even more serious than the stealing of $52 billion of monies belonging to the British Sovereign. We were subsequently informed that the ’52 billion of guarantees’ signed by the Queen had by some miraculous process been ‘restored’.

In other words, if I break into your house and steal all your family’s silver with a view to pledging it as collateral at a bank for a loan, but I get caught in flagrante and so send the stolen silver back, I have made restitution and remain a free man. We don’t think so. A theft took place, more than fully justifying The Queen’s belated decision to withdraw the LOAN funds, which had been languishing ever since they were made available via the Bank of England to the Bank of New York Mellon on 19th-20th June 2007 for the purpose of financing the Group of Seven-approved transparent, on-the-books, fully taxable Dollar System Refunding Programme, which would reliquefy the money center banks ON THE BOOKS not only AT NO COST TO THE U.S. TREASURY, but also to the huge advantage of the Treasury, which would receive an open-ended cascade of tax payments.

Interestingly, by way of ‘blowback’ from this development, it was reported to the Editor at 5:00pm on Sunday 22nd March that President Obama had told associates words to the effect that ‘I don’t care whether it’s the fault of my Administration or the previous Administration [that the numerous overdue settlement payments have been held up]. It’s got to be done’.

This outburst was either staged (very possible) or else reflects a blazing row that appears to have taken place between President Barack Obama and Vice President, Joe Biden, who has completely discredited himself by actually authorising an operation to try to persuade us to publish certain information that would have assisted him inter alia at his then imminent appearance on behalf of the US Government at the World Court. Although this institution is anathema to Washington, the US Government cannot avoid dealing with it, as other countries use the Court to press their claims against a pariah country called the United States.

And indeed, during the same period, Vice President Biden was reported to have appeared at the World Court, where he was refused a hearing. Had the information that we were pressed to publish actually appeared on our website, we are told that the outcome might have been different.

The attempted Biden set-up involved us publishing a series of detailed known facts concerning the misappropriation (on 18th January 2009, immediately ahead of the Inauguration) of the CMKX $12.8 billion, which would have explicitly implicated George W. Bush Jr., George H. W. Bush Sr., Dr Alan Greenspan, and the Carlyle Group in the theft of the CMKX funds. Since certain elements of the proffered information could not be verified and the pressure to publish this was not only traced to the Office of the Vice President but we were expressly informed that Mr Joseph Biden wanted the information published, we declined to agree to this quite extraordinary request – a refusal which caused consternation and much anger all round.

Further, the Editor decided that the exceptional pressure that had been exerted upon Mr Cottrell, asking him essentially to ‘order’ the Editor to publish this material, constituted not only the exertion of unfair pressure on Mr Cottrell himself, but a gross infringement of the Editor’s right to decide precisely what and when he will publish: a view with which Mr Michael Cottrell, who had been most uncomfortable with the request, immediately agreed. In fact both parties simultaneously concurred that since neither was satisfied with the information, let alone the motives behind the request, the material could not be published without further clarification (which was not forthcoming).

At all events, it is understood that this refusal by the Editor caused much annoyance all over the place: and the reason soon became clear. Mr Biden’s reported foray to the World Court flopped, because whatever he was asking for (believed to entail blaming the previous Administration for the Obama Administration’s failure to date, to perform) simply wasn’t believed. Had we published what was proffered to us, the outcome might have been different.

• In a separate instance of the US propensity to try to entrap the Editor of this service, information has recently appeared elsewhere concerning the Clinton theft of $500 million from Bank Crozier in Grenada, in the 1990s – a theft that we have referred to in International Currency Review, based upon our own long-term investigative research. It was being falsely alleged that this theft ‘must have’ occurred some time in 2003, which is not true. The purpose of this falsified information and provocation, devised by ‘Die Spinne’, was to inveigle the Editor into ‘correcting’ this false report, which the Spider hoped might have certain ‘repercussions’, given the operative currently serving as American Secretary of State.

However if we were to try to correct the lies, deliberately cynical diversionary distortions and other ‘reinterpretations’ of what we know to be true, that litter US websites, we would be fully engaged in that futile process and we would get no publishing work done at all.

CHINESE REPORTED TO HAVE OBTAINED LIEN ON FEDERAL RESERVE
By contrast, the Chinese Government, as noted above, went to the World Court in early March and obtained a lien on the Federal Reserve, we were informed. This was reportedly forthcoming after the Chinese parties had concluded that the Obama Administration had no more intention than its corrupt predecessor to meet its old financial obligations towards the Chinese, which relate to US undertakings made in the late 1930s for a 70-year period which has expired.

In this connection, the US authorities had originally assumed that the cap placed on the price of gold would limit their liabilities to the Chinese parties for all time: but because the Bretton Woods monetary system collapsed in the early 1970s, and even more to the point because the United States has been hijacked by ruthless organised criminal gangs whose only interest has been self-enrichment, funding the ‘State within the State’ and thus the World Revolution for three decades now, the price of gold has long since broken loose, while in terms of gold the dollar’s value has of course accordingly declined – so that it will, we are now told, take several generations for the US authorities to recompense the Chinese without resorting to war.

This horrendous strand of the crisis is overlain by the multiple other evil strands about which the ‘mainstream media’ have remained culpably silent.

For instance, the stealing of Her Majesty’s gold on 29th-30th March 2007, which we alone reported and for which we were excoriated by people in the United States who had no idea what they were talking about, appears to have been linked to an arrogant attempt by Bush-related operatives to provide the wherewithal for the Chinese Settlement. It may be the case (although no-one has told us this) that the publicity we were able to give to this matter, put paid to that criminal operation – which ended when the gold was restored, we believe, by around the same time (June 2007) that The Queen’s LOAN funds were made available for the Dollar System Refunding Programme.

Had the corrupt Paulson Treasury not immediately moved to exploit the Queen’s LOAN funds, along with the other sovereign cash funds making up the $14.0 trillion referenced in our reports, but had rather allowed the planned private sector refunding activity to proceed, the United States would have acquired sufficient accruals by now not only to have been able to meet its obligations to the Chinese, at least in part, but to implement sound financial policies across the board.

• However since Paulson is a professional criminal financier, his priorities lay elsewhere.

As a consequence, the collapse of the derivatives Fraudulent Finance Ponzi networks triggered inter alia by our exposures has occurred in sync with the colossal crisis surrounding the Chinese payments: a concatenation of events which could not possibly be worse, and which appears tailor-made to lead to World War. Given what President Obama is reported to have proclaimed (above), it is appropriate, absent contradictory information, to give the President the credit for understanding the extreme gravity of the world’s crisis, even though President Barack Obama has presided over very serious criminal events which may or may not have been perpetrated with his knowledge: our inclination is still to give the President the benefit of the doubt: when dealing with such secret but earth-shattering matters, it is impossible for outside observers, whether ‘connected’ or not, to know more than a fraction of the truth.

The following information is therefore reported as received:

• 12th March 2009: Armed with the lien from the World Court, the Chinese Foreign Minister, Yang Jiechi, appeared in the Oval Office amid the cover story about tensions between American and Chinese ships in the South China Sea.

• 17th-18th March: Chinese reported to us to have received the first instalment payable by the United States as referenced above.

• 19th March: Unconfirmed rumour that, on the contrary, the Chinese Government had exercised its lien against the Federal Reserve. On our checking this out, the rumour was dismissed out of hand by knowledgeable sources.

• 20th March: Unconfirmed rumours of arrests in Washington, DC. The Editor is advised by several sources that $3 trillion ‘arrived’ at the Treasury. This is later amended to $4.0 trillion.

• 21st March: It is reported to the Editor that five officers at the Federal Reserve were arrested (see above) after having attempted to divert or steal $200 billion. Other sources said that two officials were arrested: but on 22nd March, separate sources confirm that the number of officials arrested was five.

• 22nd March: At around 5:00pm New York time, it is reported to us that the Chinese parties were paid $13 trillion by the US Government between Wednesday 18th and Friday 20th March 2009. The source provides confirmation of President Obama’s remarks, summarised above; and it is further reported that at least one Obama official was arrested on 20th March, indicating that suspicions of treachery within the Obama Administration are justified.

• 22nd March: About 20 minutes later, the following completely conflicting ‘information’ is made available to us:

• First, the Obama Treasury offered to pay the Chinese parties in Treasuries, an offer which the Chinese turned down flat.

• Secondly, President Obama or his officials then told the Chinese: in that case, we’ll pay you in cash (as suggested by the earlier report above).

• Thirdly, the Chinese said: ‘No way. Pay us in gold’.

• In the fourth place, the President or his officials responded:
‘There is no way we are going to pay you in gold’.

• Fifth: The Chinese responded: ‘We will only take gold’
(Unspoken: You fools are preparing your own hyperinflation and at the same time you are trying to sell trash Treasuries which no-one in the world wants to buy. Your currency is going to hell due to your own stupidity and to your successive attempts to avoid facing reality: and you want to pay us in Treasuries or cash? We have no confidence in either. We must be paid in gold).

• Sixth: President Obama or his officials responded: ‘No way. Take us to court. You’ll lose’. Which is probably true, since, if any of the foregoing sequence is accurate, the US Government had already offered to pay the Chinese in US Treasury instruments or cash.

The outcome of all this could have been that the Chinese finally accepted cash, as was implied by the original report. It should also be borne in mind either that the scenery has since changed, or that some of the so-called information is false, or that all of the information is false, or all of the above. However the foregoing provides a snapshot showing what may have been going on behind the scenes, beyond what the Editor knows because of the direct attempt to influence us to publish certain information, as detailed here and previously.

Certainly, if that information had been published, the consequences would have been severe. It may transpire that it needs to be published, given that Vice President Biden did not achieve his objectives on that occasion. The information implicating the Bush Crime Family in the CMKX theft is extremely damaging and may need to be publicised outside the Biden context.

KISSINGER AND BAKER RETURN FROM MOSCOW ‘WITH GORBACHEV’
On 19th March, Bloomberg reported that President Obama had despatched Dr Henry (‘call me Henny’) Kissinger, the odious triple or quadruple+ DVD agent with the guttural German accent, and the Bush Crime Family’s #1 fixer, James A. Baker II, to Moscow to ‘talk to the Russians’. Following their meeting with President Medvedev and GRU-‘Prime Minister’ Vladimir Vladimirovich Putin in Moscow, Kissinger and Baker returned to Washington DC; and our sources believe that they were accompanied by Mikhail Gorbachev, the former Chief of the CPSU’s Administrative Department under Yuri Andropov (Lieberman), whose real name is Korbach or Orbach.

• FACTS: The Administrative Department was the most powerful slot in the entire Soviet CPSU structure. Gorbachev occupied that slot as early as the beginning of the 1980s. This consummate Leninist deceiver has never changed his spots. He occupies a large suite of offices inside the Kremlin. The sudden arrival of the top Soviet in the Oval Office (see immediately below) after being brought to Washington by Kissinger and Baker, must be viewed as an ominous development.

SECRET MEETING BETWEEN OBAMA, BIDEN AND GORBACHEV
On Friday 20th March, a secret meeting took place in the White House between Mikhail Gorbachev, Presidnet Obama and Vice President Biden.

BRITISH-AMERICAN RELATIONS AT AN ALL-TIME LOW
It has been reported that US-British relations are at their lowest level ever, a state of affairs that is supported by the insulting treatment meted out to this Editor in having a printed circuit or ‘chip’ stuck onto his right leg by an NSA or other US operative while he was sleeping in a hotel during his visit to the United States as described above.

On 11th March, it was reported that Sir Gus O’Donnell, the Head of the British Civil Service (an aimiable man whom the Editor has met) had protested that he had been finding it ‘unbelievably difficult’ to get hold of any Obama Administration personnel. Very senior British officials were complaining that they cannot get beyond the Administration’s mindless answering machines, and that attempts to coordinate the so-called G-20 ‘pre-summit’ summit meeting, held ludicrously in humble Lower Beeding, Horsham, in West Sussex, proved particularly aggravating in this respect.

• An anonymous German delegate to that meeting complained in Paris Match magazine that the event was “a madhouse”, adding “You don’t choose some place in the middle of nowhere for a summit of such importance’ – the point being of course that the importance of both the pre-summit summit and of the G-20 summit itself has been downgraded by the British: the actual conference in early April is not being convened in the Queen Elizabeth Conference Centre opposite Westminster Abbey and the Houses of Parliament, where it should be held, but miles away in Docklands – a clear signal that the whole idea of elevating the G-20 onto a pedestal to smother the G-7 in order to bury the G-7-Approved private sector Dollar Refinancing Programme is felt in London to be a ‘mistake’.

The top British civil servant said in public that when he tries to make contact with key members of the Obama Treasury Department, ‘there is nobody there’.

The phones ring and nobody answers. ‘You cannot believe how difficult it is’, Sir Gus O’Donnell told participants at a recent civil service conference. The reports of this fracas that we have seen did not provide any explanation for this perverse US official behaviour – which was, and is, that the British authorities do not go along with all this Obama-Geithner madness and are incensed at the repeated insults and thefts committed against the British Sovereign by the White House, reported in these presentations. Of course this is never mentioned as the underlying cause of the tension.

Although we do not credit the British Treasury with having pursued sensible policies under the Labour Government, at least there is no whiff (that we can detect anyway) of corruption there – in sharp contrast to the position in the United States, where the Treasury’s reputation sank into the sewer under the corrupt Henry M. Paulson, and is liable, under Geithner, to sink below it.

The real source of the UK-US tension, namely the cowboy finance operations of the US authorities, was ‘disguised’ for public consumption by the ‘substitute’ cover stories about Obama removing the bust of Sir Winston Churchill from the Oval Office, and the farcical gift of 25 DUD DVDs by Obama to Gordon Brown – an intellectual who reads voraciously and certainly, like this Editor, has no time at all for videos. In addition, some bumped-up American apparatchik told British officials that Britain isn’t ‘special’ to the United States, which is quite true. The Brits feel the same way, in reverse, after having had to live with the strench of the corruption machine wafting from Washington and Wall Street and the feckless refusal of US law enforcement (hitherto) to enforce the Rule of Law.

• FACT: To make matters worse, and to illustrate the crudeness of these people, the DVDs are no use in Britain, where different technical standards apply, so presumably they’ve been thrown away.

In any case, given recent experiences and the multitude of US abominations recorded in these reports, it is our own view that the so-called ‘special’ relationship was destroyed by the Bush II Administration; and that even though Britain itself has a criminal government, too, the United Kingdom should distance itself from a cnation run by a terrorist ‘State within the State’ which no-one in the United States has the guts, apparently, to try to bring under control.

If Congress were doing its job properly, it would demand to know why the CIA (proxy for the huge number of US intelligence agencies of which the CIA is the best known) is in the drug business.

Put another way, it would be asking WHY the United States’ national security interests ‘include the CONTROL of international crime, terrorism and drug trafficking’. President Obama should be asking these questions, too – instead of which he is complacently permitting the ‘State within the State’ to remain unreformed, running the Government, and dictating the President’s priorities.

More to the point, it is the self-financing requirements of the ‘State within the State’ that are the root cause of the Obama Administration’s short-sighted and probably fatal rejection of the ONLY solution to the entire crisis: private sector on-the-books trading that is fully transparent and taxed, generating massive ongoing windfall tax REVENUES to the Treasury, and zero cost to the taxpayer. Because the corrupt ‘State within the State’ fears that it would lose its usurped power to control the Executive Branch if it were to cease to be self-financing via its proprietary Fraudulent Finance Ponzi operations, its drug-trafficking and all the other corrupt practices in which it indulges, it has seen to it that the new Administration has chosen the route to financial and economic perdition.

• In other words, the ‘State within the State’ has placed its own corrupt interests ahead of those of the American people, as usual.

BELATED WHITE HOUSE SECOND THOUGHTS, GIVEN THE IMMINENT MEETING WITH QUEEN
The damage to US-British relations has been done, and attitudes in Britain are hardening not only against the disliked European Union Collective (the remodelled Soviet Union in the making, and a monstrosity so corrupt that even its own Court of Auditors has refused to sign off on the European Commission’s accounts for the 14th year in a row), but likewise against the United States, which is perceived to have triggered this crisis.

• The fact that the City of London is among the most corrupt sinks of speculative iniquity on earth is not yet properly understood, although recent controversies over obscene self-enrichment and bonus arrangements are causing scales to fall from many eyes.

On 15th March 2009, The Sunday Telegraph carried a prominent article entitled ‘Obama’s bungling aides ‘are told to get a grip’’, implying that somewhere deep inside the recesses of the collective mentality within Washington DC power circles, a soupcon of anxiety about kicking Americas’s most (misguidedly) loyal ally in the teeth, was proving somewhat counterproductive.

Specifically, the article said that ‘Barack Obama’s aides have privately admitted that presidential errors during his first 50 days in power have contributed to a sharp fall in Obama’s popularity with voters and pundits alike. His staff are being warned to get a firmer grip now that he has passed the 50-day mark, and prevent a repeat of the mistakes that marred the past seven weeks’.

Natürlich, the newspaper made NO MENTION of the catastrophic error that matters – the only one that matters – namely the fact that instead of ‘going financially straight’, Barack Obama has instead allowed his advisers to choose and pursue the crooked path of dud, leveraged, debt-accumulating Fraudulent Finance based on NOTHING, which will saddle the Treasury with vast accumulations of background official debt and will jeopardize the futures of several generations of Americans in the process. The only way that will be avoided is via the hyperinflation that the model presupposes.

FACE-TO-FACE EXCHANGE BETWEEN PRESIDENT OBAMA AND THE QUEEN
The British newspaper focused on the WRONG ISSUES, but this fascination with the trivial aspects of diplomacy did reveal how nervous the Obama White House appeared to be over the President’s meeting with the Queen (IF he turns up), giving rise to the following predicted exchange:

Her Majesty: Good morning, Mr President, how very nice to meet you.

President Obama: It’s a pleasure to be here, Your Majesty.

HMQ: Mr President, I was concerned to hear about a small matter of $52 billion of my guarantees that apparently went missing recently.

PO: I understand that these were restored, M’am.

HMQ: Yes, but why were the guarantees diverted or stolen in the first place? Were any of my guarantees used for purposes for which they were not intended?

PO: I don’t know M’am. I imagine not.

HMQ: Mr President, you are aware, are you not, that after my LOAN funds within a total amount of $6.2 trillion languished within your banking system within the Treasury Custodial Account network at several money center banks for 19 months, to no avail, I was compelled, on 29th January 2009, to order the withdrawal of these funds, which were made available via the Bank of England on 19th-20th June 2007 to finance the Group of Seven-Approved Dollar System Refunding Programme by means of transparent private market trading transactions?

PO: I am, M’am.

HMQ: Mr President, are you aware of the REASON that I had to order these funds to be withdrawn?

PO: Not entirely, Your Majesty. Please explain.

HMQ: Mr President, when you toured European countries last year, you signed documents in which, I understand, you pledged to release all the blocked or hijacked funds and to proceed, if I am not mistaken, with the G-7-Approved private sector Refunding Programme. I had been led to believe that, in the light of your undertakings, you would indeed honour your commitments.

PO: My advisers decided that I should adopt alternative strategies, I am afraid.

HMQ: But Mr President, a signed commitment is a signed commitment, you know! Furthermore, my own expert advisers inform me that the ‘alternative strategies’ that your officials have adopted are designed to revalidate and revalue fundamentally worthless false derivative ‘assets’ while at the same time accumulating vast new mountains of real debt with which generations of Americans will be burdened in the future – a state of affairs which could have been entirely avoided if you had implemented the Group of Seven-Approved Dollar System private sector Refunding Programme for which I provided the necessary funds on LOAN, and which you undertook to do last year.

PO: Unfortunately, M’am, I was advised that our banks would not be prepared to cooperate in the proposed G-7-Approved private sector Refunding Programme.

HMQ: But Mr President, you carry the privilege of being the most powerful human being on earth! You have the power to insist upon the implementation of what was agreed by the world’s leading financial powers in 2007 and 2008! In addition, I made available a very large sum of money pro bono publico on a LOAN basis to finance this project, which I told the Group of Seven powers in 2007 was necessary ‘for the sake of the whole of humanity’. Moreover the Group of Seven-Approved private sector Refunding Plan would have cost the US Treasury NOTHING, while showering it with windfall tax revenues for a long time to come! What on earth persuaded you to disregard this very simple and straightforward solution to your problems, which are OUR problems, too?

PO: Uh, I hear what you say, M’am. It looks as though the various patchwork schemes developed by Timothy Geithner are going nowhere anyway. I’ll reconsider the situation.

HMQ: Ah, but Mr President, as you know my LOAN funds were withdrawn on 29th January after it had become clear that your Administration was not about to honour its undertakings in this regard. I am advised that there is now a proposal that the G-7-Approved Refunding Programme should be run out of London. Very conveniently, there is a provision in British tax law whereby funds that are resident within the British jurisdiction for 24 hours, are taxable.

My Government finds it most attractive that windfall tax accruals should arise from such ongoing, transparent on-the-books trading activity. Of course, since the Refunding Programme will remain an American private sector operation, your Treasury will likewise receive immense ongoing accruals from tax. So, by running the transparent private sector Refunding Programme from London, we will be able to help you, after all. Don’t you think the daffodils in my garden are gorgeous this year?

PO (looking out of the Palace window at the magnificent display of British daffodils): Yes, Your Majesty, they are gorgeous. Don’t you think so, Michelle?

POSTSCRIPT; WHITE HOUSE SCURRIES TO MEND THE RIFT
In a quite extraordinary demarche, The Sunday Telegraph reported on 15th March that ‘a White House official last week passed details to The Sunday Telegraph of Mr Obama’s desire to avoid a repeat of such errors as the inept handling of Gordon Brown’s recent visit to Washington’, in which the White House – furious at the withdrawal of the $14.0 trillion cash, and at the exposure of the $52 billion of ‘stolen’ guarantees – went out of its way to ensure that nobody from the Executive Branch attended Congress to hear the British prime Minister praise the collective of financial scamsters to the skies, while curtailing the press conference with Mr Brown to the point of extreme rudeness.

‘The concession came as allies of President Obama have begun breaking cover to question his performance and leadership on the economic meltdown and diplomacy’.

In other words, certain people on the ‘inside’ are ALREADY wondering whether the ship that they embarked upon was already starting to sink even before it set sail.

The British newspaper continued:

‘Mr Obama has now told his staff to learn from the errors made during Mr Brown’s visit and to ensure that protocol is observed when he meets The Queen later this month’.

‘A source close to Mr Obama’s top team telephoned this newspaper last week’ (and got through, unlike what happens when Sir Gus O’Donnell calls the US Treasury) to say that top White House officials now regard it as a ‘mistake’ to have returned the bust of Sir Winston Churchill that the (British) Government lent George W. Bush… and then to have sent the Prime Minister home with a gift of 25 DVDs after his visit to Washington’.

For ‘mistake’, read ‘calculated insult’.

‘Clearly it was a mistake, and they want people to know that they know that’, the source said. No apology, of course. ‘There is a collective desire to learn from the experience. They didn’t have their eye on the ball… they all know they’ve got to do better’.

NO THEY DON’T! They are NOT aborting the TALF system, which is designed to revalidate worthless false ‘assets. They are NOT aborting Fraudulent Finance; they have NOT abandoned the Fraudulent Finance Ponzi model, despite elements of law enforcement arresting exposed Ponzi practitioners like Madoff and Stanford. President Obama has NOT ordered the ‘State within the State’ to GET OUT OF DRUG-TRAFFICKING. Does he regard drug-trafficking as acceptable?

The ‘mistakes’ that the White House was desperately trying to alleviate were the insults meted out to the British because the new Administration was piqued that it was being held to Obama’s signed undertakings, because the $14.0 trillion cash was withdrawn altogether from access, because the stealing of $52 billion of The Queen’s guarantees had been exposed, and doubtless also because the earlier (2007) theft of The Queen’s gold, probably in order to finance the United States’ colossal overdue debts to the Chinese, had been aborted (after we publicised it).

‘The source said: ‘The point was made about the protocol, people need to be absolutely sure they are on top of everything to do with meeting The Queen and make sure that everyone knows what is expected. The Queen won’t be getting any DVDs’.

By the way, if any sceptics remain out there, the Editor holds in his hand a sworn document dated 9th March 2009, containing the information referenced earlier that the Editor declined to publish, which also contained the information about the $52 billion of The Queen’s guarantees, which we DID publish. It follows of course that, this confirmation in turn confirms that the $6.2 trillion LOAN information that we have referenced repeatedly, is accurate (not that it has ever been disputed by anyone at all). This is what the sworn document dated 9th March 2009 stated verbatim:

‘I, Michael C. Cottrell, B.A., M.S., do hereby swear and affirm the following:

• That on Friday, March 6, 2009, between approximately 8:19pm EST and 8.20pm EST, I received a telephone call [requesting me to inform Mr Story that]

… a clarification was “necessary” regarding “the $50 billion of The Queen’s money allegedly stolen prior to repatriation” [in the report dated Thursday 5 March 2009 02:00]

… [This] should be changed to “$52 billion of guarantees by The Queen”’ [no cash stolen].

As will be clearly understood by anyone taking care not to sit on his or her brains, this of course basically CONFIRMS EVERYTHING. We choose not to identify the name of the official party who telephoned Mr Cottrell with this request; but this is what the document states. In black and white.

LIST OF U.S. STATUTES, SECURITIES REGULATIONS AND LEGAL PRINCIPLES OF WHICH THE CRIMINALISTS, ASSOCIATES AND ALL THE MAIN FINANCIAL INSTITUTIONS REMAIN IN BREACH:

LEGAL TUTORIAL: The Steps of Common Fraud:

Step 1: Fraud in the Inducement: “… is intended to and which does cause one to execute an instrument, or make an agreement… The misrepresentation involved does not mislead one as the paper he signs but rather misleads as to the true facts of a situation, and the false impression it causes is a basis of a decision to sign or render a judgment”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

Step 2: Fraud in Fact by Deceit (Obfuscation and Denial) and Theft:

• “ACTUAL FRAUD. Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.

Step 3: Theft by Deception and Fraudulent Conveyance:

THEFT BY DECEPTION:

• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.

• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.

• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.

FRAUDULENT CONVEYANCE:

• “FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.

• “Conveyance made with intent to avoid some duty or debt due by or incumbent or person (entity) making transfer…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Conveyance’.

U.S. SECURITIES REGULATIONS OF WHICH INSTITUTIONS
HAVE BEEN SHOWN TO BE IN BREACH [SEE REPORTS]:

• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957
• 97-13 Bank Secrecy Act, Recordkeeping Rule for funds transfers and transmittals of funds, et al.

U.S. LAWS ROUTINELY BREACHED BY THE CRIMINAL OPERATIVES AND INSTITUTIONS:

• Annunzio-Wylie Anti-Money Laundering Act
• Anti-Drug Abuse Act
• Applicable international money laundering restrictions
• Bank Secrecy Act
• Conspiracy to commit and cover up murder.
• Crimes, General Provisions, Accessory After the Fact [Title 18, USC]
• Currency and Foreign Transactions Reporting Act
• Economic Espionage Act
• Hobbs Act
• Imparting or Conveying False Information [Title 18, USC]
• Maloney Act
• Misprision of Felony [Title 18, USC] (1)
• Money-Laundering Control Act
• Money-Laundering Suppression Act
• Organized Crime Control Act of 1970
• Perpetration of repeated egregious felonies by State and Federal public employees and their Departments and agencies, which are co-responsible with the said employees for ONGOING illegal and criminal actions, to sustain fraudulent operations and crimes in order to cover up criminalist activities and High Crimes and Misdemeanours by present and former holders of high office under the United States
• Provisions pertaining to private business transactions being protected under both private and criminal penalties [H.R. 3723]
• Provisions prohibiting the bribing of foreign officials [F.I.S.A.]
• Racketeer Influenced and Corrupt Organizations Act [R.I.C.O.]
• Securities Act 1933
• Securities Act 1934
• Terrorism Prevention Act
• Treason legislation, especially in time of war.

• Please be advised that the Editor of International Currency Review and associated intelligence services cannot enter into email correspondence related to this or to any of the earlier reports.

We are a private intelligence publishing house and have no connections to any outside parties including intelligence agencies. The word ‘intelligence’ on this website and in all our marketing material is used for marketing/sales purposes only and has no other connotations whatsoever: see ‘About Us’ on the red panels under the Notes on the Editor, Christopher Story FRSA, who has been solely and exclusively engaged as an investigative journalist, Editor, Author and private financial and current affairs Publisher since 1963 and is not and never has been an agent for a foreign power, suggestions to the contrary being actionable for libel in the English Court.

ADVERTISEMENT: INTERNET SECURITY SOLUTION

NON-U.S. INTERNET SECURITY SOLUTION CD AVAILABLE: FAR BETTER THAN NORTON ETC
It has now been established that the National Security Agency (NSA) works with/controls Microsoft, Norton, McAfee, and others, in pursuit of the Pentagon’s vast BIG BROTHER objective, directed from the ‘highest’ levels (not the levels usually referred to) which seek to have every computer in the world talk direct to the Pentagon or to NSA’s master computers.

This should come as no real surprise since the cynical spooks even assert this ‘in-your-face’ by advertising ‘INTEL INSIDE’, which says exactly what it means. More specifically, NSA have made great strides in this direction by having a back door built into Microsoft VISTA. Certain computers, especially those labelled with the logo of the ‘fully collaborating’ firm Hewlett Packard, have hard-core setups which facilitate the remote monitoring and controlling of personal computers by NSA, Fort Meade. We now understand that if you are using VISTA* you MUST NOT enable ‘file and printer sharing’ under any circumstances. If you say ‘YES’, so to speak, to ‘file and printer sharing’, your computer becomes a slave at once to NSA’s master computers. DO NOT ENABLE SHARING.

Unfortunately, this abomination is so far advanced that this may not be the only precaution that needs to be taken. As long as Microsoft continues its extensive cooperation with NSA and the NSC (National Security Council), the spying system which assists the criminalised structures, and thus hitherto the Bush-Clinton ‘Box Gang’ and its connections, with their fraudulent finance operations, NSA may be able to steal data from your computer. The colossal scourge of data theft is associated with this state of affairs: data stolen usually include Credit Card data, which the kleptocracy regards as almost as good as real estate for hypothecation purposes. Even so, you can make life very much more problematical for these utterly odious people by NOT USING U.S.-sourced so-called Internet Security and anti-virus software. Having been attacked and abused so often, we offer a solution.

We use a proprietary FOREIGN Internet Security program which devours every PC Trojan, worm, scam, porn attack and virus that the National Security Agency (NSA) throws at us. We are offering this program (CD) to our clients and friends, at a premium. The program comes with our very strong recommendation, but at the same time, if you buy from us, you will be helping us finance ongoing exposures of the DVD’s World Revolution and the financial corruption that has been financing it.

The familiar US proprietary Internet Security programs are by-products of US counterintelligence, and are intended NOT to solve your Internet security problems, but to spy on you and to report what you write about, to centralised US electronic facilities set up for the purpose. You can now BREAK FREE from this syndrome while at the same time helping us to MAINTAIN THE VERY HEAVY PRESSURE UPON THE CRIMINALISTS WE HAVE BEEN EXPOSING, by ordering this highest quality FOREIGN (i.e., non-US) INTERNET SECURITY SOLUTION that we have started advertising on this website. This offer has been developed in response to attacks we have suffered from the NSA nerds who appear to have a collective mental age of about five years, judging by their output.

• To access details about the INTERNET SECURITY SOLUTION, just press THE LIVE LINK YOU HAVE JUST READ, or else press SERIALS in the red panel below. This opens up our mini-catalogue of printed intelligence publications. Scroll right down to the foot of that section, where you will see details of this service. When you buy this special product, you will also, as we clearly state above, be paying a special premium by way of a donation to help us finance these exposures.

The premium contains a donation for our exposure work and also covers our recommendation based on the Editor’s own experience that this INTERNET SECURITY SOLUTION will make your Internet life much easier. Some versions have a ‘Preview before downloading’ feature.

*VISTA: Virtual Instant Surveillance Tactical Application.

CATASTROPHIC BANKERS’ RAMP TO CONTINUE UNDER OBAMA

SMALL PROBLEM: THE MARKET AND THE WORLD AREN’T BUYING IT

Sunday 15 February 2009 04:00

UPDATE 25th February: Note from the Editor: Would the party who emailed me last year with outline details of $25,000 that Wanta accepted from him and never repaid, please email the Editor as soon as possible, with ‘further and better particulars’? We do have the original email, but it is in another location, and the Editor could usefully apply this information now: cstory@worldreports.org.

See new update for 23rd February: ‘EU ELITE FEASTS WHILE THE WORLD CRUMBLES’ below…

See new update for 20th February: ‘STANFORD TOOK OVER FROM NORIEGA’, below this update…

IF THE BLIND LEAD THE BLIND, BOTH SHALL FALL INTO THE DITCH (1)

• UPDATE 19TH FEBRUARY 2009:
AND LO! THEY ARE FALLING INTO THE DITCH ‘AS WE SPEAK’:
Specifically, on 18th February, the cost of insuring a $10 million US Treasury instrument for a five-year maturity reached $90,000. On 19th February, the cost had risen to $93,000! In a normal market, the cost should not exceed $10,000, at the most.

• SO, the more they write, the more junk the US Treasury creates, the higher the price. It’s been doing this more or less constantly since Obama took office, by the way.

This data, publicised by CNBC and derived from CME ‘pit’ sources, tells you that the market is 100% in agreement with the assessment elaborated upon below. Confidence in US Treasury instruments is collapsing, as a consequence of the fact that not all financial market participants and observers are as mentally deficient as the corrupt technicians who are taking Barack Obama and the United States’ financial economy to the cleaners.

What they thought they could get away with is a giga-TARP operation, involving circular financing which only delivers vast mountains of new garbage Treasury debt in the background: and we are talking about TRILLIONS here. We therefore CONFIRM that the disastrous course adopted by the financial sorcerers surrounding President Obama WILL lead this Adminstration, the US dollar and the US and world financial economies into a BRICK WALL, and that the deterioration of which the above-mentioned price is a potent symptom will be RAPID, taking the whole world by surprise.

When this materialises, kindly remember the following, would you? The catastrophe is specifically and EXCLUSIVELY a consequence of the determination of these Fraudulent Finance specialists to CONTINUE with their exotic, illicit financial Ponzi operations, LONG AFTER THE REST OF THE WORLD HAS SEEN RIGHT THROUGH THEIR DUPLICITY. So, fasten your seatbelts: these US idiots made their choice, hoping to cover up their complicity in the Banker’s Ramp. Now they will finally discover that by wilfully refusing to ‘go straight’ with on-the-books financing as agreed ages ago by the Group of Seven, they will reap the whirlwind. And so, unfortunately, will the Rest of Us.

THE BLIND FOOLS HAVE BROUGHT THIS PREDICTED CATASTROPHE UPON THEMSELVES

• UPDATE, 20TH FEBRUARY 2009: STANFORD TOOK OVER FROM NORIEGA:
In extensive coverage of the Stanford scandal today, The Daily Telegraph states: ‘As ‘Sir’ Allen’s financial empire unravelled, depositors across the Caribbean and South America besieged banks that he controlled in Antigua, Venezuela, Ecuador, Colombia, Peru and Panama’: which HAPPEN of course to be the primary locations of the Bush-CIA drug empire. On making further enquiries, the Editor has just been informed that quote ‘Stanford took over from Noriega’ unquote.

Stanford’s offices in Houston are in the Galleria complex where Carlyle’s offices are located.

And WHERE was Stanford ‘picked up’? Uh, in Fredericksburg, Virginia, deep inside intelligence communitysville. Who would want to GO THERE when ostensibly on the run from law enforcement?

Only a high-level drug-running Central Intelligence Agency operative in trouble who needed to be debriefed in a hurry and told what steps to take to PROTECT THE AGENCY from exposure, right?

On 1st November 2008, according to Mr Wayne Madsen’s service, the Spanish news agency EFE reported that Venezuelan military intelligence operatives raided Stanford International Bank in Caracas and investigated three Stanford Bank employees at the Venezuela branch believed to be US drug-running intelligence agents. The press is also reporting an extremely unfortunate photo of Stanford and Barack Obama ‘in happier times’.

So you see, folks (to coin a phrase), it’s not simply all about the money, it’s ALL ABOUT THE CIA MONEY: THE COLOSSAL DRUG-TRAFFICKING AND FRAUDULENT FINANCE CRIMINAL PONZI NEXUS upon which the power to control the US Government USURPED by the CIA rests.

• The CIA is IN CONTROL, OUT OF CONTROL, and needs to be BROUGHT UNDER CONTROL, which is not about to happen under Leon Panetta, who ‘ran the money’, didn’t he, under Clinton. And this, in turn, is WHY the financial sorcerers in the White House and the Treasury are risking a catastrophic collapse: because they defer NOT to the US President, but rather to the reprobate, arrogant, ruthless Intelligence Power that CONTROLS the President, and which has USURPED the Presidency given its power as the ‘State within the State’ (operating from the George Bush Center for Terrorism), acquired by financial corruption and its allegiance to the DVD’s George Bush Sr..

• All of which brings to mind our letter to the British Ministry of Defence some months ago, in which we asked: WHAT ARE WE DOING IN AFGHANISTAN? And to which, as subsequently reported, the Editor received NO REPLY. The lack of response reflected the fact that the MOD knew that any response would be displayed on our website: so, rather than LIE TO US, they didn’t respond at all.

Today, The Daily Telegraph carries an op-ed article ASKING THE SAME QUESTION. The article begins as follows: ‘ALTHOUGH IT HAS YET TO COME CLEAN ON THE ISSUE, the Government believes that our commitment in Afghanistan will last for generations. Our Ambassador to Kabul blithely mentioned us being there for “30 years”. BUT WHAT ARE WE THERE FOR?’

The author, Michael Burleigh, doesn’t say. He thinks we are ‘chasing phantoms’. WE SAY:

• NO, WE’RE NOT, SIR. WE’RE CLAIMING AND GRABBING CONTROL OF THE DRUG TRADE. That’s why the idiot Brit in Kabul says we’ll be there for 30 years. Because that’s how long they think it’s going to take to ELIMINATE THE OPPOSITION.

• By its cowardly non-response to the Editor’s straightforward question (which it can rectify at any time, to ‘correct’ any ‘misapprehensions’ we may have), the Ministry of Defence has confirmed by its default, that it is a criminal enforcement organisation.

• Like the Central Intelligence Agency and the US military.

IN OTHER WORDS, the British Government SUPPORTS THE CIA, which means that it is perfectly content that this revolutionary US ‘State within the State’ controls the US Government, which by extension means that the British Government is a co-conspirator in the entire range of scandals.

So the ‘Special Relationship’ has decayed to the point at which it serves exclusively the interest of a vast, unfettered criminal enterprise which knows no bounds to its abuse of power. And treads all over the British at every possible opportunity, by the way. Indeed it treats the Brits with disdain.

In any rational environment, that would be cause enough for a comprehensive suspension of these intelligence relations until such time as the Americans get round to cleaning up their act.

• UPDATE 23RD FEBRUARY: EU ELITE FEASTS WHILE THE WORLD CRUMBLES
We are not commenting quite yet on familiar financial issues we have been asked to comment on, because (a) certain information we hold has to be held back due to ongoing geopolitical ‘real-time’ considerations and (b) because other information is not yet ‘hard’ enough to be used. So, instead, you may be interested in the following description of filthy EU pigs with their stinking snouts in the feeding trough that appeared in an article in Murdoch’s Sunday Times, even, on 22nd February:

‘The past few months have been an interesting time to be working in Brussels’.

‘Outside, in the real world, reputable banks crumbled to dust, shares went into a nosedive, big companies became close to worthless, hundreds of thousands lost their jobs and millions feared the worst. Inside the Eurobubble, you’d hardly have known. The elite continued to go to champagne
receptions in the evenings before eating in highly-rated restaurants at taxpayers’ expense’.

‘They continued to flit from city to city to attend meetings; continued to fly around the world on fact-finding missions; and continued to think up ever more rules and regulations to help organise the
lives of the European Union’s 500 million citizens’.

Our only further comment would be that had the Editor written this, the language would have been, as the erstwhile Carlyle employee John Major used to say, ‘not inconsiderably’ fruitier.

‘STRUCTURED PRODUCTS’: TOXIC INVENTION OF A MASSIVE BANKERS’ RAMP

REVALIDATING AND FALSELY REVALUING WORTHLESS ASSETS

ROOT CAUSE OF THE GLOBAL CRISIS: THE CIA FUNDS ITSELF BY FRAUD

RECENT DEVELOPMENTS: THE DUBAI THEFT • GREENSPAN’S INDICTMENT

PUFFING UP FLAWED POLICIES GUARANTEED TO FAIL

THE SOLUTION

WHY THE SOLUTION IS BEING BLOCKED, AND WHO IS BLOCKING IT

FRIGHTENED HEDGE FUND OPERATIVES MEET AT GOLDMAN SACHS

COALITION OF PARTIES BLOCKING THE REFUNDING

ANATOMY OF MBS-CDO-CDS FRAUDULENT FINANCE OPERATIONS

NSA STEALS ICR TEXT PROVING TARP WAS A SCAM TO REFUND CARLYLE, BUSH ET AL.

THE DIAGRAMS TO BE PUBLISHED WITH OUR PAPER

FAT CAT BRITISH BANKERS SO SORRY THEY LOST THEIR OWN MONEY

BARCLAYS BANK’S FALSE BALANCE SHEET

WHY WE WERE TOLD TO ‘COOL IT’ ON CRITICISING BANKERS

A COUPLE OF PERTINENT ‘PERISH THE THOUGHTS!’

SNAPSHOTS OF PONZI CRISIS FALLOUT IN BRITAIN AND EUROPE

EUROPEAN COMMISSION’S DELUSIONS ABOUT ‘ASSET RELIEF’

SWISS RE SCRAPS ITS DERIVATIVES OPERATION COMPLETELY

WORST PROSPECTS FOR BRITAIN SINCE 1931

GOVERNMENTS UNABLE TO HANDLE HUGE INSTITUTIONAL COLLAPSES

MADOFF UPDATES

OUR SUSPICION OF A STITCH-UP IS SUPPORTED BY ANOTHER SOURCE

CRUDE CIA BLACKMAIL THREAT AGAINST MI-6

IN MEMORIAM

REACTIONS TO OUR REVELATION CONCERNING MICHAEL C. COTTRELL, B.A., M.S.

THE LIBELLOUS ATTACK ON MICHAEL C. COTTRELL, B.A., M.S.

THE EDITOR’S INTERIM STATEMENT

MICHAEL C. COTTRELL’S SWORN AFFIDAVIT IN RESPONSE TO THE ATTACK

• Attack on the Editor by Heneghan following this posting:
This operative has now dispensed libel in the Editor’s direction, a somewhat foolish move as it is plainly now open to the Editor to take action against him for libel in the English Court. Readers can of course judge for themselves whether an operative who loses no opportunity to excoriate Mrs Clinton yet at the same time contributes to the Hillary Clinton for President political campaign, is someone in whom trust can be placed when assessing the veracity of his so-called ‘intelligence’. And by the way, the Editor is not an intelligence ‘asset’: ‘liability’ would clearly be more accurate!

We have no information to suggest that this reckless operative has seen fit to retract his earlier libels against Michael C. Cottrell, B.A., M.S., and Colonel Dana Wilcox, and likewise no overtures have been forthcoming from this fellow to retract his libels and fabrications against the Editor of this service. Presumably he assumes that he is somehow protected from the consequences of his rash behaviour. According to what we hear, we strongly doubt that this can be the case. Since we have been ‘asked to comment’ on Heneghan’s libels against the Editor, here is our comment: they are libels, see? What he has stated concerning the Editor represents febrile fabricated gibberish.

The Editor has been asked to point out that anyone ‘out there’ who wants to know more about the background to these ignorant rants, and why they are doing them, should get directly in touch with Michael C. Cottrell, B.A., M.S., at his phone number 814-455 9218. Calls will only be accepted from parties who reveal their full identity. Spooks and others who hide their identities because they are scared of being exposed by us, will naturally not be inclined to make such a telephone call.

• Greenspan update: Enquiries by the Editor have CONFIRMED that that Dr Alan Greenspan WAS arrested the week before last, and we know precisely WHO performed the arrest. This being the case, it is reasonable to ask why this crook has been allowed to remain in circulation, delivering a speech, for instance, to dummies attending the Economic Club of New York on 17th February.

The answer appears to be that the 45-page indictment has NOT been withdrawn, that he HAS been arrested, and for all we know he may be walking around with an electronic tag on his right foot.

As these reports inter alia have established, there is one rule for crooks operating at the highest levels, and another for subsidiary crooks, such as the Bush laundryman ‘Sir’ Allen Stanford, who tried to escape from the United States on the 18th February but was frustrated when the private jet firm hired to fly him to Antigua, refused his dodgy card. The Stanford unravelfest is of course just another dimension of the spasms of violent implosions arising from the exposures of this hive of Fraudulent Finance – which has completely destabilised all governments, central banks and their advisers, who have responded with chaotic, uncoordinated, pointless, knee-jerk ‘do-something’ policy changes, such as reducing interest rates to close to zero, and thereby effectively deleting the financial sector from the equation: which is why Greenspoon is now ‘calling for’ nationalisation of all banks. Not only is he himself specifically responsible for the crisis, but central government control of banks = Communism, which places ALL assets in the hands of guess who: THE CROOKS.

Zero rates WORSEN the prospective plight of the banks, as depositors seek actively to improve returns, thus threatening the finances of the banks which were corrupted by the Bush-Greenspan derivatives Ponzi operations. We will be deconstructing some of these flailing responses later.

•INTERNATIONAL CURRENCY REVIEW, Volume 34, #2: This issue is now well advanced in our print works and will be distributed worldwide soon. As indicated previously and below, it contains three flowcharts which show how the fake ‘derivatives’ sector represents a gigantic BANKERS’ RAMP, how the Paulson TARP operation was designed to reliquefy the likes of Carlyle, Carlyle Capital, George Bush Sr. and other familiar perpetrators, and why ALL derivatives ‘products’ are frauds – equipped, even, with their own esoteric language, the purpose of which is to prevent ordinary mortals from understanding how these interrelated Ponzi Scheme operations function.

But it is historically true that ALL Ponzi schemes implode sooner of later. What makes the present situation unprecedented in the history of fallen humanity is that (a) what is happening was indeed predicted here long before anyone had ever heard of Roubini, and (b) all the Ponzi operations are interlinked. Hence reports of EIGHT more Ponzi collapses pending in Europe, the panic that is now evident everywhere as it has been realised that hardly any institutions managed to avoid being caught up in the corruption, and the chaotic responses of terrified governments and officials who have not understood the central issue: THE DERIVATIVES ARE FAKE AND HENCE WORTHLESS.

International Currency Review may be ordered direct via this website. To order the forthcoming issue alone, please enter a regular order and ALSO send us an email via the CONTACT US tab to state that you specifically require International Currency Review Volume 34, #2 only. We have to charge a premium for individual issues, as we sell only serials in the normal course of business.
On this occasion, we are charging $300 for this issue, incorporating a 50% DONATION mark-up.

All such orders, as with all donations made to assist us with the financing of this research and our necessary exposures, are appreciated and acknowledged by the Editor.

• MADOFF ‘VICTIMS’ LIST: Two reports were posted on 6th February 2009 containing the entire list of customers of Bernard L. Madoff Securities, Inc.. Because the list is so huge, we divided it into two segments: Clients A-N; and clients O-Z, plus a Miscellaneous Section. See: Archive. Our list is the easiest to load and clearest of the lists that have been reproduced privately on the Internet.

• Globalist hegemony ideology and practice is comprehensively debunked in the Editor’s study entitled The New Underworld Order, which can be ordered via the books section of this website. If you want to see what may happen if the angle of decline steepens much further, you could do worse than also order a copy of The Red Terror in Russia, by the brave contemporary Russian eyewitness Sergei Melgounov, another Edward Harle Limited book available direct from this website.

By Christopher Story FRSA, Editor and Publisher, International Currency Review and associated intelligence publications and information services. See this site for details and ordering facility.

• CORRESPONDENCE TO THE EDITOR: We routinely, automatically DELETE all emails which OMIT any element of the requested coordinates. We are not prepared to deal with anonymous spooks and other cowards who are too scared to provide their coordinates, for identification.

• The CONTACT US facility is found in the red box throughout this combined website.

• BOOKS: Edward Harle Limited has so far published FIVE intelligence titles: The Perestroika Deception, by Anatoliy Golitsyn; Red Cocaine, by Dr Joseph D. Douglass, Jr.; The European Union Collective, by Christopher Story; The New Underworld Order, by Christopher Story; and The Red Terror in Russia, by Sergei Melgounov. All titles are permanently in stock. We sell books DIRECT.

• Please Make a Donation to help finance Christopher Story‘s ongoing global financial corruption investigations, which have turned the whole world upside down and have exposed the corruption which was intended to enable the geocriminalist syndicate to seize the wealth of the entire world. These people have finally been more or less completely stopped in their tracks as a consequence of these exposures. Your assistance will be sincerely appreciated and will make a real difference, hastening the OVERDUE resolution of the worst financial corruption and linked financial fallout in world history. The Editor’s $35,000 Wanta bail-out money was not repaid and so has been stolen. It will be collected in due course and the thief will be appropriately dealt with, having so far taken no steps at all to repay the Editor’s loan funds, which should have been remitted on 11th June 2007.

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NEW REPORT STARTS HERE:

INTRODUCTION
We can now complete the metaphor that we held in suspense following the American Presidential Election. After hovering in mid-air trying to decide whether to fall headlong into the fire or not, the CIA-controlled US Federal Government under President Obama has fallen face-first into the (Ring of) Fire, and is in the process of being consumed in the flames.

The flames are fanned by a lethally explosive incendiary device called a Banker’s Ramp.

Instead of accepting that the products of the Bankers’ Ramp – so-called derivative ‘Structured Products’ – are without instrinsic value, the fools and co-conspirators in the US Treasury and at the Federal Reserve under Bernanke thought they could con the world, as Mr Paulson tried to do, into believing that these worthless fraudulent assets could be repackaged with an insurance wrap, and thereby converted from trash status with no recourse to the underlying flow of real cash-cash, into value-laden assets of tangible value. Which is impossible. Natch, this latest marketing ploy failed even as it was being tentatively launched.

For unsurprisingly, Treasury Secretary Geithner’s revamped version of the duplicitous H. Paulson TARP scheme, the purpose of which was to refinance Carlyle, Carlyle Capital, George H. W. Bush Sr. and other notorious Fraudulent Finance parties [see below], was given an immediate thumbs-down by the financial markets on 10th February, even as Mr Geithner was speaking. Specifically, the S & P 500 closed down 4.9%, while its financial sub-index fell on the day by 11%.

The widespread decline wiped out most of the preceding week’s strong stock market gains, with JPMorganChase and Wells Fargo shares losing 9.8% and 14.2% respectively, while Bank of America and Citigroup stocks dropped by 19.3% and 15.2%.

Now this Geithner fellow is the son of Peter F. Geithner, the Director of the Asia Program at the Ford Foundation in New York. Mr Geither’s dad oversaw the Ford Foundation’s micro-finance operations in Indonesia which were being developed by Ann Dunham-Soetoro, the mother of President Barack Obama. Timothy Geithner’s maternal grandfather, whose name was Charles F. Moore, was an adviser to President Eisenhower, and was also a Vice President of Ford Motor Company. Timothy Geithner spent most of his childhood living outside the United States, first graduating from the International School in Bangkok. He also obtained a degree from Dartmouth College in Government and Asian studies, and his MA from Johns Hopkins University was in international economics.

Yet notwithstanding Geithner’s superb educational background and qualifications, the much-heralded Geithner statement, as predicted, was a complete flop. Mr Geithner had evidently not received sufficient education to be able to discern that what he was intending to propose would collapse like the remainder of a child’s balloon after it has been popped; and nor, it appears, was he in any way disposed to read the trailer for his expected flop that we published on this website on 8th February, ahead of his presentation.

According to market sources, the primary cause of the resulting uncertainty was, as one voice put it, that ‘the question of how to value banks’ toxic assets remains unanswered’.

Which was a petty silly complaint, given the fact of the matter, known to all market participants who aren’t high on speed: THEY CAN’T.

The reason that the banks’ derivatives assets haven’t been valued and cannot be valued is that THEY HAVE NO VALUE. They are figments of financial marketing sorcerers’ imaginations.

The very word ‘derivative’ itself contains the brazen lie that the subsequent ‘Structured Products’ are DERIVED from the original transaction, whereas in reality the cashflow from the original deal does not ‘travel’, and the subsequent parties have NO RECOURSE to the hard cashflow from the original transaction, so that they are handling phantom trades divorced from the original contract.

‘STRUCTURED PRODUCTS’: TOXIC INVENTION OF A MASSIVE BANKERS’ RAMP
This reality, which has been borne in on even the dumbest dumkopf since our exposures, will be spelled out in the forthcoming issue of International Currency Review with the benefit of simple flow-charts showing how derivatives ‘assets’ are created and are fraudulently ‘marketed’ without recourse to the sole source of real money – the payments to the Mortgage Bank of the mortgagor, or the payments of the credit card holder to the card issuer. All subsequent derivative ‘Structured Products’ are fraudulent Ponzi-model scams, because they have no value given that none of the subsequent derivatives parties have recourse to the original source of funds [see below].

That derivative ‘Structured Products’ are symptomatic of a massive Bankers’ Ramp which has loaded European institutions with perhaps as much as $30 trillion of dud assets, is implied not only by the facts of the matter (explained in greater detail below), but also by the rather pertinent fact that traders on the Chicago Mercantile Exchange tell us from the pits that they regard derivatives products as completely worthless, and will not be interested in exotic new Treasury instruments (‘Geithners’) designed to turn sawdust into gold.

Likewise, as previously reported, the regional US Federal Reserve Banks consider derivative products to be without intrinsic value – a stance that places them at odds with Geithner’s former employer, the Federal Reserve Bank of New York, and the Federal Reserve Board under the co-conspirator Dr Ben Bernanke, both of which institutions specialise in Fraudulent Finance.

No-one, either at home or abroad, in the G-7 or the G-20, is going to be interested in any magic formula developed by the US Treasury to persuade investors that derivatives-based repackaged Ponzi-model ‘Geithners’ marketed with a US official guarantee and US Treasury imprimatur are a sound investment. It won’t fly.

For given the worldwide awakening to the truth about this Fraudulent Ponzi-model finance, the likelihood of foreigners rushing to purchase degraded US Treasury ‘Geithners’ masquerading as of intrinsic worth when the reality is that they consist of recycled toxic waste, has shrunk to nearly zero – not least given that Mr Geithner has shown himself to be even less proficient at pulling the wool over the markets’ eyes than the serial fraudster Henry M. Paulson was in his notorious day.

REVALIDATING AND FALSELY REVALUING WORTHLESS ASSETS
No, what the US Administration – now completely under the control of the Bush-Clinton criminal finance continuum – was crassly intending to do, was to revalidate the Bankers’ Ramp as though there has been no discontinuity – an extraordinarily stupid and blind course to adopt.

For the Fraudulent Finance engineers inside the Central Intelligence Agency, the Treasury and the Obama White House were hoping to ignore the much greater overall sophistication of sensitised observers since these exposures started in 2006, and to deny all that has happened during this distressing period – the blatant official corruption, the duplicity and diversionary operations, the wall-to-wall disinformation and propaganda, the endless lies and spiels about ‘filling in the holes’ when what was meant was that pyramid-selling participants were being paid off with ‘new money’ derived from other victims of the scams, the suicides, the false reports of imminent settlement recycled every week out of the gutter – and to pull a new Fraudulent Rabbit out of the Treasury’s box of magic tricks, as the US Treasury has done so often before.

But this time, the Magic Rabbit disappeared before it was even out of the hat. It was scared away by the glaring light of global scepticism and the absence of the smoke and mirrors cover to which it is accustomed. For the age of smoke and mirrors is over.

No longer can the US Treasury convince anyone in the world that has the answer to the mess for which it is responsible, on behalf of the controlling Intelligence Power (see previous report and below). And one reason that the US Treasury has lost all credibility – apart from the fact that, under Paulson, who systematically trashed the Full Faith and Credit of the United States, it became known as the Lie Factory – is that it is deliberately, under heavy pressure from the Bush Crime Family, the Clintons and associates, the Chicago FBI, and the CIA, choosing the WRONG PATH, despite the fact that it knows perfectly well what the CORRECT COURSE OF ACTION SHOULD BE.

Yes, the US Treasury knows what it SHOULD DO, but is obtusely continuing with the Bush-Paulson policy of Fraudulent Finance instead of adopting the SINGLE COURSE OF ACTION that would soon guarantee an end to the crisis. Given the extreme gravity of the situation, this represents nothing less than wilful treason against the United States and its people, and a perverse intent to pursue the worst possible course which, if not reversed, will bankrupt the whole world.

ROOT CAUSE OF THE GLOBAL CRISIS: THE CIA FUNDS ITSELF BY FRAUD
It would be comforting, perhaps, to believe that US Treasury officials are just incompetent. But the record shows that no, they seem to be malevolent: they are wilfully impeding and standing in the way of resolution of all outstanding problems over time, by obtusely insisting upon an open-ended continuation of deficit-financing operations to sustain off-balance sheet Fraudulent Ponzi-model Finance, so that the US criminal élite’s cronies can continue to generate false, unreported and so untaxed profits from their unproductive and illicit speculative activity and can continue hiding the proceeds untaxed in offshore bank accounts. And the primary reason for this madness is the factor we again identified in the preceding report:

• The Treasury’s stance is governed by the fact that it defers to the Intelligence Power which controls the US Federal Government, selects its personnel, and has usurped the power of the Executive Branch. As we have frequently pointed out, the CIA is in control, out of control and needs to be brought under control.

And guess what: they don’t like us reminding you of this fact.

• Because when we do so, we are in fact pinpointing the core of the problem facing the United States and the WHOLE WORLD, which is that the Central Intelligence Agency (proxy for the vast, corrupted US intelligence community and its drug-running operations) is a self-financing ‘State within the State’ that controls the Executive, Legislative and Judicial Branches of Government – not the other way round. The CIA is supposed to be the clandestine arm of the White House.

But thanks to its proven ability to penetrate all other branches of Government and its structures, and to finance its operations on a gargantuan scale using drug-trafficking proceeds and Ponzi schemes of ever increasing sophistication, it has usurped the US Government itself.

For it was the intelligence community that developed these Fraudulent Finance schemes in the first place. Who do you suppose provided traders with the special satellite-linked ‘grey screen’ trading equipment enabling Agency operatives based in the boonies to conduct secret Fraudulent Finance trading operations within the closed financial system that is at the root of this crisis?

The equipment is provided by the Intelligence Power. The Editor knows of one family where the successive husbands operated this equipment clandestinely without even explaining what they were doing to their family members. And this secret trading, designed to increase the illicit, hidden takings of the Intelligence Power through Fraudulent Finance, goes on all over the United States.

The Intelligence Power finances itself via Fraudulent Finance operations and is jealous of its total independence from Congress and of its power to control the Government. Key figures throughout the Administration are either intelligence operatives or puppets of the CIA.

Therefore, the Administration defers to the Intelligence Power, instead of the CIA operating from a position of subordination to the Executive Branch.

• That is the nub of the crisis facing the whole world.

It is the CIA et al. that is blocking resolution of this crisis, by ensuring that the Treasury seeks to continue the Fraudulent Finance activity, which is supposed to be funded by a vast increase (so it supposes) in official debt, with no prospect of any of it ever being amortised.

This is of course a recipe for disaster, collapse and a wheelbarrow future: and the culprit is the CIA.
It is the corrupt US Intelligence Power that pulls all the strings and is insisting upon the Treasury retaining control over ‘recovery financing’, despite the reality that the Treasury and the Federal Reserve can never achieve the objective that the CIA insists upon, because no-one in their right mind is going to buy the repackaged Treasury trash for long, if at all.

Therefore, the US and global crisis boils down to the very issue identified a long time ago by this service: the Central Intelligence Agency is jealous of its hegemony which is financed by Fraudulent Finance and fears that when its Ponzi operations cease, it will LOSE its hegemony status and will cease to be in any position to control the Government, especially the Executive Branch.

Given moreover that the Central Intelligence Agency is a criminal enterprise directed de facto by the Bush Crime Family with its Clinton add-ons (2) via the George Bush Center for Terrorism (oops, Intelligence), it may well view the threat to its hegemony by the ongoing and irreversible collapse of the derivatives fraud as a pretext for taking matters even further into its own hands, by which we mean perpetrating some atrocity or other to provide a pretext for drastic domestic repression. This may satisfy its power lust but will not, of course, solve its financial problems insofar as the collapse of the derivatives sector will leave it dependent solely on its drug-trafficking proceeds.

In this connection we need to reiterate that anonymous, unprovenanced reports by a fictitious source calling itself Sorcha Faal and purporting to be derived from the Kremlin, is actually a diversionary disinformation operation perpetrated by an Irishman, S. L. O’Huallachain and by Commander J. Forrest Sharpe, of Light in the Darkness Publications, Vienna, VA, located, as we recently pointed out, deep in US intelligence communitysville, according to our sources.

Sharpe is said to be ‘active duty submarine service fleet’, implying an Office of Naval Intelligence (ONI) link here – ONI being one of the most ruthless of all the arms of the CIA sub-Octopus, as well as ‘incidentally’ being where Admiral Blair, the new Director of National Intelligence (DNI), comes from: which probably tells you all you need to know about the agenda of such reports.

As previously noted, they begin with the phrase ‘Rumours circulating in the Kremlin today’, a tell-tale giveaway, as the Editor’s long service as Editor of Soviet Analyst entitles him to state without fear of contradiction that the Kremlin doesn’t DO rumours.

No, this is just another outlet for the destructive US domestic intelligence war and for gratuitous scaremongering, agitation and propaganda spewed out by the scared ‘State within the State’ which correctly perceives that it is in severe danger of being cut down to size as a consequence of the exposure and implosion of its Fraudulent Finance operations which sustain its usurped status as the power that controls the Federal Government, whereas it is supposed to be the subordinate clandestine arm of the Executive Branch.

RECENT DEVELOPMENTS: THE DUBAI THEFT • GREENSPAN’S INDICTMENT
With reference to the massive sum of money that was diverted to Dubai on Friday 6th February, threatening the likelihood at the time that Citibank might have been unable to open its doors on Monday 9th February, the funds were retrieved over that weekend so that, in the event, Citibank did not collapse and was able to open for business.

As we reported, that event precipitated the cancellation of the State Visit to Dubai and Abu Dhabi by The Queen and the Duke of Edinburgh previously planned for late March – an analysis that we were subsequently told was ‘absolutely accurate’.

Concerning the cuffing of the arch-criminal finance specialist Dr Alan Greenspan, there are now at least four versions concerning this operative’s arrest: (a) He was arrested on or about Monday 2nd February; (b) he was cuffed on Friday 6th February, as we reported; (c) he was cuffed on Thursday 5th February 2009, which we are now inclined to believe would have been more accurate than (b), because we also now think that the funds were diverted to Dubai on Thursday the 5th, or at least overnight 5th/6th February; and now (d) a warrant has been issued for Greenspan’s arrest, which (as of the morning of 12th February) remained pending.

On 12th February we learned that a 45-page indictment has been prepared against Greenspan, and this information was confirmed by a separate very reliable source.

In addition, a batch of officials at the Federal Reserve who thought they were TSTBA (‘Too Senior to Be Arrested’) were reported to us on 12th February to have been arrested in the context of their continuing sabotage of the Settlements. And on Wednesday 11th February, 18 examinations of the biggest US banks were initiated, with a team of some 100 bank examiners descending like locusts on Citibank, JPMorganChase, Bank of America and other US criminal financial enterprises looking inter alia for derivatives exposures. In this connection we have learned that there exists a circle of very high-level and influential bankers and traders whose names are not currently in the public eye, who have been systematically blocking the Settlements, while at the same time continuing their headlong derivatives Ponzi trading operations.

As for the meltdown inside the Securities and Exchange Commission (SEC), accused by Harry Markopolos before the House Financial Services Subcommittee of failing for many years to take necessary measures against Bush-Ponzi fraudster Bernard L. Madoff, the agency’s previously referenced leading enforcement officer, Linda Thomsen, was reported be resigning ‘to pursue opportunities in the private sector’. Obviously, she decided that the heat in the kitchen was excessive for her fragile constitution.

We have been further advised that certain other very well-known characters on the stage are targeted for arrest and indictment. These developments reflect the fact, stressed to us by reliable sources, that there is now a consensus that these arrogant financial sector Financial Terrorists (which is what they are) are not above the law.

Let us hope that this time round, Law Enforcement makes the arrests in front of the TV and press cameras, as we have advised in the past: that would be the single most effective step that could be taken to bring this crisis to a head so that the unavoidable, sabotaged shakeout is not fudged.

PUFFING UP FLAWED POLICIES GUARANTEED TO FAIL
Against this incredible background, the Secretary of the United States Treasury stood up before the whole world on 10th February 2009 and announced that he intends to perpetuate a gigantic fraud! His ill-considered plan was dead in the water the moment it was announced.

As a consequence, the US Treasury and the Federal Reserve have made themselves the laughing stock among those elements of the financial intelligentsia and of key official structures around the world who know precisely what should be done, and have watched with renewed astonishment at the endless capacity for these US financial sorcerers to imagine that they can continue lying and deceiving the markets, the investing public, the American people and the Rest of the World.

As for President Obama’s ‘stimulus bill’, it represents a big band-aid which would be better applied to a bandicoot, because of course it simply adds further to the debt in the background and fails to address the central issue, namely that CASH REVENUE has to materialise in order for the banks to be refloated ON THE BOOKS.

The only possible justification for this rash initiative, which narrowly passed the Senate on 13th February, would be as a short-term stop-gap measure pending the REVENUE cashflows triggered by the G-7-Approved Refunding Programme – which is what President Obama appears to have had in mind, and which his own personnel are obtusely blocking.

The banks CANNOT be refloated via the revalidation and revaluing of worthless junk through the issuance of more and more ‘background Treasury debt’ on the scale required – not least because no insurance wrapround that the Treasury and the Federal Reserve might devise can compensate for the fact that the markets have seen through the Ponzi scams and are not proposing to gobble up any US Treasury repackaged trash ‘assets’ with falsified ‘values’ anytime soon. The Treasury’s purpose all along, as under Paulson, has been to perpetuate opportunities for Fraudulent Finance so that the off-balance sheet proceeds of these Ponzi frauds can be stashed untaxed in offshore bank accounts by the self-appointed privileged ‘élite’ serving the selfish and treasonous interests of the terrified US Intelligence Power.

In fairness, it should also be stressed that the lethal derivatives Ponzi trading carousel is being sustained by the ‘powerful’ circle of top traders and bankers alluded to above, upon whom the Treasury is said to rely when it needs ‘assistance’, who consider themselves literally to be above the law, immune from arrest and prosecution, and who function inside what they consider to be a ‘protective zone’ of privilege within which ‘legitimised’ Fraudulent Finance can be practised with impunity. These people are about to discover that, contrary to that complacent assumption, the game has changed as a discontinuity has taken place which they have chosen not to recognise.

THE SOLUTION
The universal solution to the global systemic financial corruption crisis has been on the table for several years, and was specifically re-approved by the Group of Seven Financial Powers at their summit meetings in 2007 and 2008. The adjective ‘universal’ is applicable because implementation of the agreed-upon solution will, over quite a short space of time, refloat the banks by generating accruals on-the-books, revalidate the US dollar and the US dollar financial system in the process, revitalise the world trading system as a consequence, and shower the US Treasury with ongoing windfall tax accruals which will transform its finances and reverse the centuries-long one-way deficit-financing and debt accumulation route to financial collapse.

Banks will be refloated on balance-sheet very quickly because accruals arising from transparent transactions with the appropriate capital markets instruments as prescribed by the G-7 will cascade into the banks in the form of deposits, transforming the banks’ balance sheets in the process.

This solution, like all truthful and straightforward means of resolving problems, is the essence of simplicity. By contrast, the covert, surreptitious, off-balance sheet, untaxed, secretive, fraudulent derivatives ‘Structured Products’ operations based on worthless assets generating fake yields, are enveloped in a fog of extreme complexity, as will be revealed in somewhat excruciating detail in the forthcoming issue of International Currency Review [Volume 34, #2].

The universal solution to the global systemic financial corruption crisis consists of the following straightforward and wholly transparent response:

• The ongoing conduct of fully taxed on-balance sheet capital markets instrument transactions with selected institutions in the PRIVATE SECTOR (therefore wholly independently of the DEBT-BUILDING public sector), as approved by the Group of Seven Financial Powers in 2007 and 2008, using LOAN funds provided pro bono publico for this purpose at her sole discretion primarily by the British Head of State, the total value of which is $6.2 trillion.

[These funds were placed into ‘lockdown’ on 12th September 2008, after it had transpired that instead of being deployed for the purpose intended by the lender(s), the funds had been illegally subjected to exploitation to finance the Fraudulent Finance Ponzi-model carousel.

After these funds, plus an additional $7.8 trillion of monies owned by the Chinese parties, went into ‘lockdown’, flows of funds needed to finance the corrupt illicit trades – with the exception of the drug money flows sustaining interbank operations as identified by the Executive Director of the Vienna-based United Nations Office on Drugs and Crime (UNODC), Sr. Antonio Maria Costa, which were referenced in our report dated 8th February 2009, dried up – triggering mass redemptions, including an estimated $7.0 billion of redemptions by clients of the Bush-linked Ponzi scheme manipulator, Bernard L. Madoff, as described in earlier reports].

• Such ON-BALANCE SHEET PRIVATE SECTOR capital markets transactions will generate REVENUE which will be TAXED, yielding ongoing windfall tax accruals to the American Treasury – which, by definition, will reverse the century-old decadent US one-way deficit-financing orgy accumulating vast mountains of official debt in the background which can never be repaid, accompanied by the degradation of Treasury securities and the US dollar itself to trash status.

• Under this wholly transparent Group of Seven-Approved Capital Markets Refunding Programme, Michael C. Cottrell, B.A., M.S. is instructed to conduct the on-balance sheet transactions using the appropriate instruments through his firm Pennsylvania Investments, Inc., in accordance with the lenders’ instructions.

• In our report dated 8th February 2009, we revealed the foregoing information for the first time, in the face of the intransigent intention of the American Treasury to continue with the Ponzi-model Fraudulent Finance operations to which it and its associates, especially the relevant hedge fund operatives, have become accustomed.

The Treasury’s approach is wrong-headed and perverse, not least because it will simply pile debt upon bad debt upon very bad debt, while purveying for public consumption a FALSE PROSPECTUS based upon the lie that worthless derivatives ‘Structured Product’ ‘assets’ have value, which is not the case. In other words, the US Treasury’s sterile proposals on behalf of the hedge funds, ‘private equity’ ‘players’ and banks ‘working for’ George Bush Sr., which were dead in the water on delivery anyway, would falsely represent that trash ‘assets’ contain value, a gross deception and fraud.

• In our report dated 8th February, we further recommended that the G-7-Approved Refunding Programme outlined above should proceed anyway, as has been specifically instructed ‘per the request/affidavit dated 29th December 2008’, but through London rather than New York.

• By definition, the GOOD, TRANSPARENT, TAXED REVENUE dollars accruing from the approved Capital Markets transactions under the G-7-Approved $ Refunding Programme will very definitely displace the BAD MONEY FALSELY GENERATED by the complex, Fraudulent Finance Ponzi-model operations that the US Treasury seeks to perpetuate, for the reasons explained below.

WHY THE SOLUTION IS BEING BLOCKED, AND WHO IS BLOCKING IT
Bear in mind that the G-7-Approved Refunding Plan is, as we constantly reiterate, APPROVED by the Group of Seven Financial Powers, which are fighting for their economic survival in the face of the recalcitrance of the American criminal financiers who are holding the whole world to ransom.

As noted above, the SOLUTION has been on the global table for several years and if it had been implemented in 2006/2007, instead of being hijacked by the corrupt Paulson Treasury so that funds could be stolen and the later LOAN monies belonging to the lender(s) abused and exploited, the whole world would not now be experiencing the ‘train wreck’ that we predicted on this website on 2nd September 2006, in December 2006, and in reports published here and in our journal in June and July 2007. We predicted the ‘train wreck’ accurately because we saw then that the corrupt US Treasury had no intention of implementing the G-7-Approved Refunding Programme and that the constant barrage of ‘we’ll pay you tomorrow’ rhetoric, with its innumerable variants, represented a cynical CIA counterintelligence propaganda offensive designed to enable the organised criminal cadres inside the US official structures and their allies to continue trading derivatives, to sustain the bubble of Fraudulent Finance, and to keep the army of outraged protesters at bay indefinitely.

Quite simply, the cloth-ears at the US Treasury preferred to continue down their yellow brick road, enriching themselves and their co-conspirators in the process, under the protection of the corrupt Chicago component of the FBI and the Bush-Clinton organised crime operations – to the general satisfaction of the expanded domestic and international élite that has been so corrupted by this Fraudulent Finance ever since George H. W. Bush Sr., stole the money from Continental Illinois Trust Company in the 1980s.

FRIGHTENED HEDGE FUND OPERATIVES MEET AT GOLDMAN SACHS
Immediately following the damp-squib Geithner presentation of the US Treasury’s immediately discredited plan for open-ended Ponzi-style finance stretching out to the end of the solar system, about 20 alarmed US hedge and ‘private equity’ Ponzi-money fund operatives, meeting under the auspices of the so-called ‘Goldman Sachs Roundtable’, gathered in emergency session to thrash out their concerns that, from their perspective, things were now falling apart, since Mr Geithner’s proposals, on which some had pinned their hopes, had gone down like a wayward lead balloon. Those attending included representatives of KKR, Fortress Investment Group [FIG], Bain Capital, Perry Capital, Capital Research, Putnam, and Citadel.

People who attended told CNBC that they received an urgent invitation to go to the meeting after Geithner’s speech. Goldman Sachs, which initially denied that the meeting ever took place, later reversed its position and confirmed that the meeting, hosted by John Winkelreid and Gary Cohn, was planned well in advance. How’s that for standing on your head without anyone noticing? Some of those who attended said that they decided to attend because of the Geithner speech. According to the CNBC report, aired by Charlie Gasparino [www.cnbc.com/id/29163525]:

‘What the group concluded was that the longer the ‘plan’ takes to produce, the more difficult the situation becomes. That’s because reviving the securitization market is the key toward reviving the economy and it’s a vicious circle [sic]. The longer it takes to revive securitization, the worse the economy becomes and the securitized products held by the banks lose more value’.

The foregoing CNBC statement contains egregious falsehoods that are self-evident but which nevertheless need to be spelt out given that CNBC also appears to be inhabited by cloth-eared economic ignoramuses:

• Revival of the real economy does NOT depend upon so-called revival of the ‘securitisation market’ consisting of worthless assets. First, there can be no such ‘revival’ now that the absolute worthlessness of the ‘securitised assets’ has been exposed, taken on board across the world, and ridiculed by traders in the Chicago pits – as well as by institutional investors and others who have had their corporate and fingers burned in the financial holocaust that has already taken place.

Further, as previously reported, the regional Federal Reserve Banks do not agree with the corrupt Federal Reserve Board under Dr Ben Bernanke and his Ponzi scheme predecessor, the frequently-braceleted Dr Alan Greenspan [see below], and the Federal Reserve Bank of New York (FRBNY), that derivatives assets have any value. They have been exposed as trash, and that’s that.

• The ‘justification’ for derivatives transactions is the false argument that securitisation ‘spreads risk’. This only happens, however, in the sense that the Mortgage banks receive double or treble payments per mortgage (even quadruple payments in certain circumstances). The later remittances are discounted, but they all add up. But the purchasers of the securitised ‘Structured Products’ by definition acquire extreme risk for their money, because no party beyond the Mortgage bank has recourse to the only source of ‘real money’, which is the income stream from the borrower.

• The US economy is not ‘becoming worse’ BECAUSE ‘securitisation cannot be revived’, but rather because the sole SOLUTION to refinancing the banks, the US dollar and the world trading system has been and continues to be BLOCKED by the parties identified in this segment, including the foregoing attendees as the so-called Goldman Sachs Roundtable.

• The ‘securitised assets’ held by the banks cannot lose ‘more’ value, as they have already lost 100% of their value and it is impossible, therefore, for these non-assets to be devalued any further. As indicated below, Swiss Re, the second largest reinsurer in the world, has just scrapped its own investment bank and in the process has written down its derivatives ‘assets’ to their correct value:

• ZERO.

The CNBC pronouncement illustrates a stratum of gross ignorance and fatuous stupidity on the part of the CNBC correspondent, equalled only by the attitude of a BBC economics correspondent who belaboured the false point on 11th February that ‘no banker, no financial journalist, nobody if they cross their heart, could say that they foresaw this’.

Not if they weren’t reading the reports on this website, right.

And by the way, this standard technique, favoured by those who cannot see ahead, of tarring all analysts with the brush of their own blindness, ignorance and forecasting ineptitude, while familiar to this Editor who has observed this all his forecasting life, is a low trick routinely played by the blind leading the blind. Because they have fallen in the ditch, they assume that no-one could have led them away from it. It makes the mess they’re in less uncomfortable.

COALITION OF PARTIES BLOCKING THE REFUNDING
Who, then, is BLOCKING the Group of Seven-Approved Refunding Programme?

Answer: the following sinister coalition:

• The primary source of opposition to the G-7-Approved Refunding programme is the Intelligence Power, a.k.a. the Central Intelligence Agency and its extensions [see below], which finances its operations with all the funny money that the Ponzi schemes that it developed specifically for that purpose, generate. The Intelligence Power in the United States controls the Government, not the other way round. As we have frequently stated, the Intelligence Power is in control, out of control and needs to be brought under control.

It is significant that no matter how many times we have reiterated this glaringly obvious truth, not a single individual with whom we remain in contact, including of course those with a CIA background, has EVER picked this point up and given it the slightest support. The reason for this may be that all these people, without exception, are perfectly content with the status quo, which is as follows:

Given its FINANCIAL INDEPENDENCE FROM CONGRESS, the Intelligence Power has USURPED THE EXECUTIVE BRANCH of the Federal Government. The CIA is supposed to be the clandestine arm of the White House, instead of which, with the National Security Council (NSC), it CONTROLS the White House, and ensures that its own personnel or agents are always positioned in the most sensitive nodes of the structures, including the top slots.

• This is not democracy: it is corrupt, anti-democratic, abusive rule by a ‘State within the State’.

This overpowerful and ruthlessly amoral American ‘State within the State’ is financed by means of the Fraudulent Finance operations exposed in these reports. The ‘State within the State’, this controlling Intelligence Power, is unwilling to give up its hegemony over the Executive Branch (as well as de facto the other branches of the Federal Government). It is therefore purposefully and short-sightedly resisting and BLOCKING the implementation of the SOLUTION outlined above.

• Moreover the Intelligence Power is indifferent to the consequent suffering of the American people and the Rest of the World. It is concerned exclusively with the threatened retention of its control hegemony. It imagines that if it just continues this obnoxious resistance, it will ‘win out’ in the end. That is a false presumption.

• On the contrary, the longer the Intelligence Power BLOCKS the SOLUTION, the greater will be the consequent damage and the greater the likelihood that, with the disintegration of the nation, and the entire world economy as a direct outcome of its obtuse behaviour, the arrogant, ruthless and opinionated US Intelligence Power will be destroyed as well.

• But not all CIA/DIA operatives are as completely blind and stupid as painted above (it is possible to be very clever and smart, and stupid and blind at the same time). Some CIA operatives know perfectly well that things must change. They should assert themselves now, for the sake of the Republic and, as The Queen put it succinctly in 2007, ‘for the sake of the whole of humanity’ – although we hold out very little hope of any such development.

• Finally, the CIA is absolutely PETRIFIED of the G-7-Approved Refunding Programme, because it is recognised in ‘circles that matter’ that in fact it MUST be implemented, cannot be side-stepped, and will indeed prevail. But its own personnel place their own wretched interests and that of the amoral Intelligence Power first. These people will have to undergo psychological re-orientation training come the Revolution, if they don’t change their stupid attitude before it’s too late.

Beyond this central factor, the coalition of operatives opposing the G-7-Approved Refunding Programme include the following:

• The US Treasury, under Geithner as under Paulson, which defers to the controlling Intelligence Power that controls the White House (although for public consumption purposes the US Treasury defers to the White House). As is the case within the CIA, not everyone inside the US Treasury is corrupt: on the contrary, it has been the case since these exposures developed, that one or more Treasury Compliance Officers have been threatened with jail sentences under the Patriot Acts for actually doing their jobs properly and resisting the corruption mandated under Henry M. Paulson.

• The Federal Reserve Bank of New York under Mr Geithner before he was translated to the US Treasury. As confirmed by the recent arrests, announced on this website, of Robert Armenta, the senior Federal Reserve Compliance Officer (who was offered a choice between 25 years in jail if he cooperated and 99 years if he chose not to divulge the names of those involved in these scams), and Christopher J. McCurdy, a senior Vice President who was arrested after he had destroyed the crucial banking codes associated with the Settlements, the New York Fed is a nest of corruption. Under Geithner it presided over frauds exposed in our reports, and it is at loggerheads with the regional Federal Reserve Banks who are unanimous, as we have previously reported, that the derivatives ‘assets’ are worthless. The FRBNY works closely with:

• The corrupt Federal Reserve Board under Dr Ben Bernanke, who has continued and elaborated upon the Fraudulent Finance operations exploiting the closed Federal Inter Bank Settlement Fund developed under his corrupt, often-arrested predecessor, Dr Alan Greenspan – the inventor of the ‘never-pay syndrome’ which, with the benefit of hindsight and closer understanding nowadays of the universality of the Ponzi model, was actually a symptom of universal Ponziness.

This ‘never-pay syndrome’, supported by that noisy barrage of duplicitous disinformation promising payment tomorrow, painting false descriptions of arrangements having been made for Trustees to be called into banks and banking codes having been altered, and so forth, elaborated by reports of banks not co-operating, answerbacks not arriving, and any other variation on the theme of why the payments were being blocked that they could think up overnight, turns out actually to have been nothing less than an integral component of Ponzi scheme methodology.

Ponzi scheme methodology operates on the principle that new money has to be found to pay off earlier investors or to pay them handsome returns with no questions asked, until the pyramid selling scheme collapses, when ALL THE MONEY IS STOLEN.

Further members of the coalition resisting the G-7-Approved Refunding Programme also include:

• The hedge fund and ‘private equity’ parties including those who attended the ‘Goldman Sachs Roundtable’ meeting, who are desperately trying to find a way to ‘fix the prices of the securitized bonds’ as Ken Griffen, the founder of Citadel, told CNBC after that meeting – despite the fact that trash ‘assets’ have no value so that any price-fixing would be fraudulent and therefore open to endless litigation in the courts.

• The corrupted banks which continue to promote and develop derivatives trading ‘opportunities’ and scams, as though there had been no discontinuity.

• FACT: Without derivative ‘Structured Products’ trading, there is no way these criminal enterprise banks, scamming hedge fund operatives and so-called ‘private equity’ Ponzi-groups can ever hope to recoup the monies for George Bush Sr. and which they themselves have lost on own account. They cannot believe ‘this has happened to them’, but it has.

• They cannot accept that there has been a decisive discontinuity, but there has.

• The Clintons, the Bush Crime Family and their compromised associates, including the former French President Chirac, and M. Levitte, the former French Ambassador to Washington, who is now President Sarkozy’s closest adviser, and a host of others including the US operatives Jan Morton Heger, Leo Wanta, George Reig, Captain Morris (ONI), Tom Heneghan (see below), and a group of bankers and leading derivatives traders who operate in the shadows and have in the past been so ‘powerful’ that the Treasury would even call upon them for ‘assistance’.

ANATOMY OF MBS-CDO-CDS FRAUDULENT FINANCE OPERATIONS
In our report dated 8th February 2009, we reported that the NSA had interfered with our production computer and had stolen three pages from our imminent analysis by Michael C. Cottrell, B.A., M.S., under the generic heading ‘The Legalisation of Financial Corruption’ in which we analyse in detail the precise steps of the Ponzi finance operations – and in which we demonstrate both that the derivatives have no value, and also that this ‘mystery’ is encased in a fog of jargon so dense that outsiders (such as the CNBC correspondent) never get to to understand what is going on.

The segment stolen from our production computer also contained the chart in which we show that the Paulson TARP operation represented a fraud designed to inject fictitious, fabricated value into worthless ‘Structured Products’ using taxpayers’ money so as to enable the speculators to ‘start over’ – with the top ‘insiders’ such as George Bush Sr., Carlyle and Carlyle Capital and James A. Baker III especially benefiting from the Government bailout operation.

Before we go any further, we need to repeat the sections that were stolen from our production and the introduction, in order to place this back into context:

NSA STEALS ICR TEXT PROVING TARP WAS A SCAM TO REFUND CARLYLE, BUSH ET AL.
On 5th February, the Editor was working with his colleague to finalise pages for the next issue of International Currency Review. This contains an analysis by Michael C. Cottrell, B.A., M.S., with 3 diagrams, entitled ‘THE LEGALISATION OF FINANCIAL CORRUPTION’, that carefully demonstrates and proves that the Paulson Treasury’s TARP operation represented a colossal Ponzi-style fraud designed to refund Carlyle, Carlyle Capital and corrupt ‘insiders’ starting with George H. W. Bush Sr., James A. Baker III and other highest-level US financiers of terrorism.

All of a sudden, our screen became completely unstable under the impact of electrical pulses which can only have been directed externally. There were two attacks: on the first occasion, the relevant pages were retrieved without loss. About 20 minutes later, however, a further pulse attack resulted in the ‘loss’ of the concluding pages, associated with the final diagram which shows:

(a) How the Henry M. Paulson Treasury had concocted a devious false prospectus programme to inject false value into fraudulent and worthless derivative ‘Structured Products’ and:

(b) How this process, thanks to the fact that the Treasury now controlled the FNMA (‘Fannie Mae’) and FHLMC (‘Freddie Mac’) directly, would ensure that the Government bailout money agreed by Congress would refund Carlyle, Carlyle Capital, Bush Sr., James Banker II et al., as stated above.

We therefore publish immediately below the precise text that was stolen by the NSA in the course of this second ‘pulse attack’. We were of course able to restore the stolen text, plus the concluding chart showing the scam in graphic form, almost immediately, so nothing was achieved except that the forces concerned obtained a copy of the language we are using.

They therefore knew that we were about to expose the TARP Ponzi scam, although they would have known that anyway since they listen in to all our telephone conversations.

• Reference is made in the text below, to the diagrams, which are not shown here (because this platform does not currently support illustrations).

• But it is necessary to include these diagram references in order to reveal why NSA stole this text by directing electrical pulses at our production computer. This is the text they stole:

HOW THE LEGISLATION ASSISTED THE FINANCIAL FRAUDSTERS:
THE PAULSON TREASURY’S TARP $700 BILLION PLATFORM SCAM
Figure 3 opposite illustrates the process of taking the private mortgage, commercial mortgage, credit card loans, and/or any other fungible debt, and via the underwriting group or underwriting trust pool, and turning that debt into a securitised ‘Structured Product’ to be pooled and sold into the global institutional market place.

The boxes indicating ‘Pool A-1’ etc. represent the securitised pools of mortgages and other ‘assets’, and the various tranches of these ‘Structured Products’.

These tranches and/or pools are then sold on to the banks, investment banks, and ‘financial products’ companies for re-sale and/or re-packaging and then re-sale to international banks, investment banks, and corporations.

US Treasury Secretary Paulson’s TARP plan to obtain unlimited authority over the $700 billion was premised on the basis that via a reverse auction, the ‘Structured Products’/derivatives could be purchased by the Treasury TARP group and re-packaged, via the new FNMA and FREDDIE MAC, and then re-sold at a profit.

BASED ON THE FALSE PRESUMPTION THAT THE ‘ASSETS’ HAVE VALUE
This operation assumed that the illiquid derivatives have a specific value or a market value.

Such an assumption is definitely false, since there is NO actual and specific asset that is directly attached to the ‘Structured Product’ – given the obvious fact that the asset was split from the locally filed UCC-1 that defines who is the mortgagee and mortgagor, and who has legal claim to the asset once the mortgage or debt is paid in full.

IN OTHER WORDS, holders of these fake, fraudulent exotic ‘assets’ have no recourse to the original underlying source(s) of ‘real money’ funds.

This separation of the asset and the legal authority to claim the asset occurred during the financial securitisation process of pooling, re-pooling, and re-packaging – supposedly (for gullible public consumption) to spread the risk of default to as many holders as possible – thus furthering the development of the Credit Default Swap derivatives market.

The typical CMO (‘Structured Product’) has ‘A’, ‘B’, ‘C’, and ‘Z’ tranches, representing fast pay, medium pay, and slow pay bonds plus a tranche that bears no coupon but receives cashflow from the collateral remaining after all the other tranches are satisfied. More sophisticated CMOs have multiple ‘Z’ tranches and a ‘Y’ tranche incorporating a sinking funds schedule. [This passage in the printed version references the earlier discussion, not reproduced here].

Figure 3 illustrates a non-public TARP program, prior to the appointment of Mr. Kashkari, et al. and the Congressional Oversight Panel restrictions.

Under the guise of a government ‘bailout’ theme and marketed to Congress and the US general public as being for the purpose of buying the illiquid asset-backed securities, Treasury Secretary Paulson intended to operate TARP as a Trading Platform – that is to say, as an International Hedge Fund benefiting from US Government Guarantees – from within Treasury (behaviour which has hitherto been completely illegal) to purchase, at a higher price than necessary, the CDO, CDS, MBS etc. derivatives from the very entities and banks that have themselves directly contributed to the mass-production and sale of these toxic illiquid ‘Structured Products’. The purpose of this Trading Platform was/is therefore to use public funds to quantify the value of the toxic products, and to overpay the holders, i.e.: the likes of leading Fraudulent Ponzi-Finance specialists such as: AIG, CITIBANK, GOLDMAN SACHS, CARLYLE CAPITAL, CARLYLE GROUP, and others.

BECAUSE, once the ‘Structured Products’ had been valued, via reverse auction, and purchased, Paulson and his friends would then be able to re-pool and re-package the relevant derivatives via FNMA and FHLMC for re-sale into the demonstrably gullible marketplace, where the phrase ‘due diligence’ appears to be foreign to many operators in the market – thereby repeating the process for as long as possible. Profits from this Trading Platform could then be transferred to an unknown Master Custodial Account set up within the huge external international monetary system – such as a receptacle set up for this purpose by President George W. Bush Jr. in Benin, West Africa – without the knowledge of, or any accountability to, the US Taxpayer, the US tax authorities, or anyone else.

CONCLUSION
Thus, PUBLIC funds were to be used yet again to generate PRIVATE accruals, while a massive fraud would be concealed under cover of the necessity of ‘managing’ the illiquidity of the avalanche of toxic ‘Structured Products’ and regaining credit flow within the international banking system. See the flow charts: Figures 1-3 herewith. ENDS.

[Note: This text will appear on pages 32-34 of International Currency Review, Volume 34, #2].

THE DIAGRAMS TO BE PUBLISHED WITH OUR PAPER
As indicated above, the exposure of the ‘Structured Products’ frauds in the forthcoming issue of International Currency review is accompanied by three charts [Figures 1-3]. Each chart carries a very bold notice stating:

‘THERE IS NO RECOURSE TO UNDERLYING CASH FLOW AFTER ‘A’’, where ‘A’ represents here the Mortgage issuing banks which are in receipt of cashflow from the mortgagor (the party taking out the mortgage)

• Description of Figure 1 [Page 25]: MBS-CDO-CDS SCAM FLOWCHART:
The Fraudulent Finance Non-recourse Carousel:
STEPS SHOWN ON THE CHART:

(1) The borrower makes payments to the Mortgage issuing banks.

(2) The crucial Universal Commercial Code [UCC – 1] document is lodged with the local Courthouse Land/Deed Recorder [Land Registry in England]. The Mortgage banks retain control/custody of the UCC-1 document which does not ‘travel’ with the subsequent transactions. T

he Mortgage banks have the continuing benefit (excluding defaults) of the real money cash flow from the borrower/mortgagor.

• The Mortgage banks obtain new money by on-selling the mortgage to investment bank pools or the FNMA or FHLMC [see (3) immediately below]. They have now been paid twice (although they sell the mortgage on at a discount. When they do so, an egregious deception occurs.

Because the Mortgage banks retain control of the crucial underlying document, the UCC-1, and/or the Land/Deed papers, they are actually selling NOTHING at all, UNLESS they are actually engaged in committing ‘visible’ fraud by on-selling ANOTHER TOP COPY OF THE UCC-1 or else the Land/Deed papers. The fraud here may be achieved by the borrower being required, in many instances, to sign THREE TOP COPIES of the relevant documents, without the TRUE reason for this fake ‘requirement’ being spelled out (‘FRAUDULENT CONCEALMENT’). Whether this occurs or not, the following legal hazards arise in this context:

• “ACTUAL FRAUD: Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”.
Sourced from: Steven H. Gifis, ‘Law Dictionary’, Fifth Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.

• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”.
Sourced from: Steven H. Gifis, ‘Law Dictionary’, Fifth Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.

THEFT BY DECEPTION:
• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.

• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.

• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.
Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.

FRAUDULENT CONVEYANCE:
• “FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.
l “Conveyance made with intent to avoid some duty or debt due by or incumbent on person (entity) making transfer…”.
Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary’, Revised 4th Ed

(3) The Mortgage banks sell mortgages either into Investment Bank Pools or into Trust Pools of the Federal National Mortgage Association [FNMA, ‘Fannie Mae’] or the Federal Home Loan Mortgage Corporation [FHLMC, ‘Freddie Mac’] which, since 8th September 2008, lost their Government-Sponsored Enterprise (GSE) status after being taken over wholesale by the Treasury.

• The Mortgage banks are also basically ‘indifferent’ (in a ‘normal’ market environment unlike the prevailing situation) as to whether the borrower ultimately defaults or not. If the borrower defaults, the Mortgage bank is now in the real estate business and acquires the property which it then sells (third payment). On top of this, since the Mortgage bank has retained full control over the UCC-1 document, which does not ‘travel up the derivatives chain, it is in a position to on-sell a ‘derived’ mortgage on the basis of that document, generating thereby a FOURTH payment (from the same mortgage), and at the same time ‘starting over’.

(4) The Investment Bank Pools operate an Underwriting Group and a Buying/Selling Syndicate, and undertake ‘securitisation’, packaging or re-packaging of pooled (or collectivised) securities. The FNMA and FHLMC Trust Pools operate an underwriting Trust Pool, a Buying/Selling Syndicate and create ‘Securitisation Pools’ and develop[ Mortgage-Backed Security packaging and Pass-Through Securities – pools of fixed-income securities that are backed by a package of assets. A servicing intermediary collects monthly payments from issuers and, after deducting a fee, remits or passes them through to the holders of the Pass-Through Security.

This device is also known as a ‘Pass-Through Certificate’ or a ‘Pay-Through Security’. The most common type of pass-through is a Mortgage-Backed Certificate, whereby ‘homeowners’’ payments pass from the original lending bank through a Government agency or investment institution to the investors. This is the ONLY exception to the general rule that there is NO RECOURSE to underlying real cash flow after the borrowers’ payments into the Mortgage banks themselves.

(5) The chart shows ten representative US domestic pools which sell the repackaged securities or ‘Structured Products’ to Goldman Sachs, A.I.G., Lehman [defunct], Morgan Stanley, Citibank, JPMorgan Chase, Wachovia, with some pools selling direct to General Electric or foreign banks, such as Coutts. At the lower right corner of the chart is the rubric: ‘From the U.S. institutions the scam is taken international…’.

This references the fact that, for instance, Goldman Sachs will sell the repackaged ‘Structured Products’, however marketed, for instance, to Deutsche Bank, Barclays and the Bank of England, while Lehman [defunct] sells to Natwest, as does Morgan Stanley. Meanwhile the ‘Structured Products’ or securitised pooled ‘assets’ have long since been DECOUPLED FROM the original underlying cash flow of the mortgager borrower(s), so that the only ‘value’ attached to the packages is derived from the NAMES of the institutions marketing them.

As a disillusioned former Goldman Sachs officer informed the Editor recently, the derivatives ‘are worth what someone is prepared to pay for them’.

Now that they have been exposed as intrinsically worthless, the only parties who will pay anything for them are those compartmentalised zombies who have not yet understood that there has been a fundamental discontinuity which cannot be ‘made good’ or denied.

Figure 2 [Page 27] provides a close-up of the right-hand side of Figure 1, showing how a single loan triggering one solitary cash flow of mortgage payments is typically leveraged and intermingled with other such cashflows into exotic ‘derivatives’ known as ‘Structured Products’ via pools which are sold on to investment banks before being marketed internationally, where the US securities legislation (the 1933 and 1934 Securities Acts) does not apply.

Figure 3 [page 33] follows the funds paid to the US investment banks for the on-sold ‘Structured Products’ by the foreign institutions (Deutsche Bank, Barclays Bank, Bank of England, Natwest and Coutts, in the illustrations) and by General Motors, Ford Motor Company and General Electric (as illustrated), which invest them with Carlyle, Carlyle Capital and other ‘top’ hedge funds and ‘private equity’ entities such as those whose representatives attended the ‘Goldman Sachs Roundtable’ meeting on 10th February and benefiting insiders such as George Bush Sr. and James A. Baker III*.

A placard on Figure 3 reads: ‘PURPOSE OF TARP OP: TO INJECT VALUE INTO WORTHLESS ‘STRUCTURED PRODUCTS’, AND THEN ‘START OVER’’.

Meanwhile, since ‘Fannie Mae’ and ‘Freddie Mac’ are now controlled directly by the Federal Government (the Treasury), they re-pool and repackage ‘fresh’ ‘Mortgage-Backed Securities’ (‘Structured Products’), enabling the process to begin again. The chart proclaims at this point;

• START OVER: and the selling into the market ‘starts over’.

So Carlyle, Carlyle Capital and the other hedge funds and ‘private equity’ entities repurchase the newly created Mortgage-Backed Securities (MBSs), CDOs (Collateralised Debt Obligations) and CDSs (Credit Default Swaps) from the market for purchase by the US Treasury under the TARP scheme using (in the case illustrated) the Paulson TARP bailout money for the purpose.

This procedure reliquefies Carlyle, Carlyle Capital and the other hedge funds and ‘private equity’ entities by generating a flow of cash from the Treasury into their accounts.

An explanatory box labelled ‘How the TARP scam to refund worthless toxic ‘Structured Products’ to benefit the above* was supposed to operate. It all went horribly wrong’, positioned at the lower right-hand corner of Figure 3 explains further:

• STEP ONE: Assign [False – Ed.] value to Mortgage-Backed Securities, Collateralised Debt Obligations and Credit Default Swaps and other derivative ‘assets’.

• STEP TWO: Purchase funds: First to Carlyle et al.

• STEP THREE: Carlyle et al.: Repurchase derivatives from the market and onsell them to Treasury under the TARP program.

Postscript: The TARP scheme is thus SPECIFICALLY shown, with the assistance of these diagrams which will appear on pages 25, 27 and 33 of International Currency Review Volume 34, #2, to have represented an operation concocted by the corrupt Paulson Treasury, to refinance and revalue the worthless derivatives trash ‘assets” and to refinance Carlyle, Carlyle Capital etc. – whereas it was fraudulently marketed to Congress and to the American population as a bank bail-out programme which was also intended to alleviate the mortgage ‘crisis’. It represented, therefore, a fraud on the United States Government, the American people and the whole world.

The new version of TARP under President Obama, marketed as an economic stimulus bill, has the same primary objective as the TARP scheme. It is NOTHING to do with resolving the crisis and, like Geithner’s incoherent and immediately discredited proposals, will be seen to represent another fraud – probably a fraud too far.

Significantly, the Chinese authorities were reported on Friday 13th February to have informed Mrs Hillary Clinton, whose own involvement in criminal financial operations they of course know all about, that if the United States is to receive further Chinese investments in US Treasury securities, the US Government will need to guarantee all preceding Chinese investments in US dollar assets. In other words, the Treasury must provide and insurance wrap or guarantee for Chinese investors, including the Chinese Government.

• Translated into the vernacular, this riposte represents a Chinese official black eye or raspberry for Mrs Clinton and the Geithner Treasury; or to be more precise, the Chinese have told the US Secretary of State, who removed $500 million from Bank Crozier in Grenada, to GET LOST.

FAT CAT BRITISH BANKERS SO SORRY THEY LOST THEIR OWN MONEY
If after killing ten people while driving under the influence of alcohol you say to the policeman who is arresting you ‘I’m ssh-sho shorry, offisher, I couldn’t sh-shee where I wash going’, the fact that you have apologised to the policeman will not prevent you being arrested and cuffed, hauled off to a police cell, breathalysed, dragged into court, remanded in custody, put on trial and sentenced for grievous bodily harm and manslaughter, after losing your driving license.

However if you are a British banker and a big mason as well, and you have spent two decades presiding over banking fraud in which your institution has enthusiastically participated, you are liable to imagine that you can apologise’ profusely in order to avoid the consequences of your criminal behaviour – while spattering your fake apologies with gratuitous references to the fact that you personally have lost millions and are much poorer as a consequence of the fact that your bank frauds have been found out. Further, when analysed, your apologies are discovered not to represent personal apologies at all, but merely ‘regret’ at the ‘turn of events’.

That these creatures live in a cocooned world of legitimised corruption was confirmed when, as the Financial Times reported on its front page [11th February 2009], four previously ‘top’ British ‘Fat Cat’ bankers made the following arrogant statements to Members of Parliament:

• Lord Stevenson, Former chairman of HBOS: ‘We are profoundly, and I think I would say unreservedly, sorry at the turn of events… All of us [Fat Cats] have lost a great deal of money’.

Translation: We are not sorry for our participation in the Ponzi frauds. What we are sorry about is that our Fraudulent Finance operations came unstuck, as a consequence of which we personally have lost a huge amount of money. It’s a shame because we were all doing so well before the discontinuity, weren’t we.’.

• Andy Hornby, former Chief Executive of HBOS: ‘I don’t feel I am particularly personally culpable … I have lost considerably more money in my shares than I have been paid’.

Translation: ‘All I care about is that I have personally lost money. I couldn’t care less that as a direct consequence of my own participation in the Fraudulent Finance derivatives scams, I have brought the whole world to the edge of ruination’.

• Sir Tom McKillop, former chairman of Royal Bank of Scotland: ‘We bought ABN Amro at the top of the market. So anything we paid was an error. Everything we paid, basically, has not been worth it. In fact, we are sorry we bought ABN’.

Translation: ‘I’ll fob them off with this bromide so that they don’t get round to asking me why on earth we bought ABN Amro, because if they were to ask me that, I would have to reveal that we bought ABN Amro in order to obtain control of a vast portfolio of secret accounts containing stashed accruals generated through Fraudulent Finance operations that we were lusting after’.

• Sir Fred Goodwin, former Chief Executive of Royal Bank of Scotland: ‘I could not be more sorry for what has happened. But I’ve invested a lot in RBS… it’s of great distress for me to see what particularly my colleagues are going through’.

Translation: ‘However I am not going to mention that I presided over the construction of a huge campus for my bloated institution using the proceeds of dubious Fraudulent Finance transactions, and neither shall I be making any reference whosoever, if I can get away with it, to the fact that we plastered Caribbean airports with garish posters encouraging investors including by definition agents handling the proceeds of CIA-developed drug-trafficking operations, to park the funds they control with Royal Bank of Scotland’.

BARCLAYS BANK’S FALSE BALANCE SHEET
Luckily for the Show Trial bankers on display, none of the MPs on the investigating Committee asked the key question: what was the source of the funds you were playing with?

Likewise, when the institution regarded by experts as even more corrupt than Royal Bank of Scotland, Barclays Bank, suddenly announced on 9th February that it had expanded its balance sheet over the preceding 12 months by £900 billion, so that Barclays’ assets and liabilities both mushroomed to more than £2.0 trillion, NO-ONE in the media bothered to ask Barclays about its source of funds. The Gross Domestic Product (GDP) of the United Kingdom is about £1.4 trillion.

The ‘source of funds’ issue was passed off on the basis that the bank had acquired hundreds of billions of dollars of derivative positions alongside the bank’s acquisition in September of the North American ‘assets’ of Lehman Brothers.

Obviously, if Barclays Bank were to fail – dismissed as an ‘unlikely event’ on the 10th February 2009 by The Times’ Banking and Finance Editor, Patrick Hosking – the size of Barclays’ balance sheet would have serious repercussions for British taxpayers and would destroy the creditworthiness of the British Government. But is it really ‘unlikely’ that Barclays Bank, stuffed with worthless assets that it values fraudulently at full fake value, might fail?

ON FRIDAY 13TH FEBRUARY, LLOYDS TSB’S SHARE PRICE COLLAPSED BY 35%. In the evolved context, there is no such thing any more as a bank that’s TBTF (‘Too Big To Fail’) because, on the basis of fraudulent valuation, such prospectively failing institutions now have balance sheets that exceed the total value of the host country’s Gross Domestic Product by an order of magnitude.

It’s stupid to suggest that such failures are ‘unlikely’ when the glaring reality is that as a direct consequence of their decades of playing Ponzi, these banks are all technically bankrupt.

Barclays Bank is a puff fish: its balance sheet was puffed up by $900 billion of fake ‘assets’ that have no value [see below] which the bank says have value and which its accountants corruptly certify as having value. The auditors for Barclays Bank had better be well protected by adequate insurance against being sued by an army of scammed depositors and others when it transpires that this institution is in fact bankrupt and that the British authorities cannot possibly bail it out.

• The same now applies to Lloyds TSB.

WHY WE WERE TOLD TO ‘COOL IT’ ON CRITICISING BANKERS
Meanwhile, in our report dated 25th January 2009, you may recall that we ran some paragraphs under the heading ‘BRITISH MINISTER CALLS FOR CORRUPT BANKERS TO BE ARRESTED’.

Specifically, we referenced a front-page report in the Times of 24th January 2009, in which Lord Myners, the Brown Government’s Minister for the City of London, was reported to have demanded the arrest and indictment of British bankers engaged in Fraudulent Finance practices [see, for instance, above]. The newspaper had reported inter alia as follows:

‘A furious onslaught on banking’s “Masters of the Universe” has been unleashed by Mr Gordon Brown’s City Minister. Too many bankers fail to realise they are grossly over-rewarded and have no sense of society… Lord Myners says that the banks have been mismanaged, and [has delivered] the strongest attack [by UK officials] so far on those responsible’.

‘Lord Myners says that there will have to be fundamental changes in the way that banks operate and that ‘the golden days of huge bonuses in the investment banking arms are gone…’.

‘He calls on banking boards and shareholders to stamp on the reckless behaviour of bosses and adds’ – crucially, which is why we quoted this – ‘that if people have committed crimes, they should be prosecuted’’.

We then added the following elaboration:

‘In view of the fact that we have been reporting arrests of bankers until we are blue in the face (with more reported below), this outburst, late in the day as it is, represents evidence that the too-slow-to-come-to-its-senses UK official sector has at long last been shocked into the realisation that this is a CORRUPTION CRISIS first and foremost’.

‘ALL RESPONSES SHOULD BE BASED ON THIS PREMISE, rather than on the more palatable presumption that this is ‘simply’ a systemic global financial crisis of the utmost gravity’.

In our report dated 30th January 2009, under paragraphs headed ‘ATTEMPT TO GAG US FROM REPORTING UK FRAUDULENT FINANCE DEVELOPMENTS’, we stated:

‘… A few days ago, the Editor was asked: would we hold back on any further comment arising from Lord Myners’ belated observation, reported in the preceding analysis, that those engaged in the FRAUD in the banking sector in Britain should be prosecuted.

‘We were about to add that the Conservative Party leader, David Cameron, interviewed on Sky News on 26th January, elaborated:

‘We need to look at the behaviour of banks and bankers, and where such people have behaved inappropriately, that needs to be identified, and if anyone has behaved criminally, in my view, there is a rôle for the criminal law/ I don’t understand why in this country the regulatory authorities seem to be doing so little to investigate it, whereas in America, they are doing quite a lot’.

On 10th February 2009, The Times’ columnist Rachel Sylvester kindly unravelled the conundrum surrounding the question of why the Editor was suddenly asked to ‘hold it’ with reference to further elaboration of Lord Myners’ entirely correct warning that criminal bankers should be prosecuted. In her article entitled ‘Labour can’t control the pinstriped puppets’, she wrote:

‘Lord Mandelson, the Business Secretary, was less than pleased when Lord Myners, the City Minister, launched an onslaught against the “grossly over-rewarded” Masters of the Universe last month. “A key part of New Labour was to recognise the importance of wealth makers”, a certain Government aide says. “A big tactical error would be to unleash a lot of anti-banker rhetoric”’ (3).

Ah, so NOW we know we know why we were requested, via the MI-6-X-Y-Editor transatlantic loop, to ‘go easy’ on criticisms of bankers, and especially on suggestions that those British financial sector executives believed to have been engaged in criminal Fraudulent Finance should be prosecuted.

The source behind this request was none other than the intelligence operative Lord Mandelson himself. Lord Mandelson, it appears, is not at all keen that banking executives should be punished for their financial crimes: so he let it be known that the Editor should be informed accordingly.

A COUPLE OF PERTINENT ‘PERISH THE THOUGHTS!’
Whether this means that Mandelson reads our website, and whether it further implies that he is under pressure from a certain powerful a sponsor, is something that we won’t need to go into at this juncture: no doubt this aspect of the matter, like everything else, will ‘come out in the wash’. But for the time being, Heaven forbid that a British Minister of the Crown should be interfering in the legal process by becoming actively engaged in discouraging justified calls for these heads of criminal financial enterprises, past and present, to be prosecuted for fraud. Perish the thought!

It cannot possibly be the case, either, that when, as Chancellor of the Exchequer, Gordon Brown appointed Dr Alan Greenspan as an adviser, the frequently arrested Dr Greenspoon was actually employed to advise the then Chancellor on how to PREVENT the lid blowing off the London-based derivatives Ponzi scamming pressure cooker, on behalf of his mentor and fellow criminal finance Godfather, George H. W. Bush Sr., and his co-conspirator and partner in these giga-financial crimes Tony ‘Rollover’ Blair, can it? Perish that thought as well.

• A correspondent writes from the United States to inform us that his mother, who lives in Ruislip, Middlesex, bought an apartment outright (for cash) on a 125-year lease, with no mortgage.

But in March 2004, she obtained a short-term loan from Northern Rock which, as we know, was extensively engaged in Fraudulent Finance operations, with a Clinton-linked subsidiary operation out of Jersey, Channel Islands. When the lady paid off the loan, in less than three months, she then requested that the lease documents used for collateral purposes be returned to her from Northern Rock. The bank informed her that they could not locate the documents.

She wrote letters to Northern Rock, who responded that they would arrange for copies to be sent from the Land Registry. The lady said that she did not want copies, but the originals. Northern Rock stated that they did not hold the originals, even though they had taken the originals as collateral for the loan. The poor lady then complained to the Banking Ombudsman, who proved to be completely ineffective (suggesting that the UK Banking Ombudsman is there to protect the UK criminal banks involved in this activity, rather than the customer). In the end, the lady obtained two copies of the lease documents from the Land Registry (in December 2004 and March 2005).

The correspondent requested our help: and although we simply cannot take on ‘cases’ (since we receive several such distressing cases with a request that we investigate them every month from the United States), in this sole instance we responded that if we were provided with the relevant underlying correspondence, we will take the matter up with Northern Rock, with the suggestion that if the new Government-sponsored management of this institution persists with the stance that they cannot now retrieve this person’s original lease documents, we will then expose the nationalised Northern Rock as remaining complicit in these evil fraudulent finance operations under the British Government’s protection based upon the corrupt alienation of underlying property documentation. We now await receipt of the relevant correspondence.

SNAPSHOTS OF PONZI CRISIS FALLOUT IN BRITAIN AND EUROPE
Meanwhile the fallout from exposure of the Fraudulent Finance practices continues to reverberate across Europe. A snapshot of some developments on 11th to 13th February under this heading will illustrate that multilingual chickens are coming home to roost:

• City of London:
Half a dozen financial services businesses in the City were reported on 11th February to be under investigation by the Serious Fraud Office SFO), which is equipped with a new Director, Mr Richard Alderman, who has replaced previous management considered by the Editor of this service, from first-hand experience of the SFO’s failure to investigate manifest frauds committed by a European Commission-linked British firm, to have been duplicitous and compromised. Whistleblowers have reportedly drawn the SFO’s attention to the activities of colleagues and others; and the SFO’s own lawyers are said to be coordinating their inquiries with the Financial Services Authority and the City of London Police. The SFO is also using US-style ‘swat teams’ in City fraud investigations.

Additionally, it was revealed on 13th February (The Times, London) that Terry Freeman, né Sparks, a Director of GFX Capital Markets was detained by a specialist unit of the City of London Police at his Essex home on Monday 9th February 2009. A source was quoted as telling the newspaper that ‘the Police are looking to see if he was a mini-Madoff. There are elements of a Ponzi scheme but what they have to determine is whether the business became that after it got into trouble or else whether it was a Ponzi all along’.

• However OUR question is more to the point: Is this one of the ‘ten Madoffs’ waiting to blow in Europe, referenced in the preceding report?’

Freeman’s fund ceased trading in January 2009, leaving hundreds of clients who had invested between £5,000 and £500,000, chasing their money to no avail. Freeman-Sparks set up GFX in 2004.

Unsurprisingly, trouble started precisely in SEPTEMBER 2008 (the $14.0 trillion was, you will recall, placed into ‘lockdown’ on 12th September 2008: the Editor received the ‘triple gunshot voicemail’ on the following Saturday), when GFX’s clients were suddenly unable to obtain new statements and were prevented from withdrawing their funds. The postings on Mr Freeman’s ‘Trader’s Diary’ blog became erratic and many clients became anxious after finding they could not contact the principal.

The firm suspended its operations immediately ahead of the Madoff arrest, on 3rd December 2008.

A message written by a ‘concerned investor’ posted on Mr Freeman’s blog reads: ‘Terry is being investigated by the City of London police for fraud, money-laundering and unregulated trading. The offices in London are no longer manned’. Police confirm that Freeman has been interviewed with respect to allegations of money laundering and potential offences under the Financial Services and Markets Act, but has been released pending further enquiries.

• British Government:
A few days ago, the British press revealed that Sir James Crosby had resigned as Chairman of the Financial Services Authority which is supposed to be aggressively investigating City-wide Financial Ponzi-model fraud, after he was accused of having sacked a senior HBOS executive who had been warning of excessive risk-taking at HBOS and that the bank was shattering all the known rules of commercial banking behaviour and prudence. The sacked executive, in a memorandum to a House of Commons Committee, noted that his many conscientious warnings were sternly rebuffed, and that there was a sterile culture of ‘not rocking the boat’ and ‘don’t tell me what I don’t want to hear’ at the banking entity which has since been taken over by Lloyds TSB, in an unwise move which has severely weakened that institution and its reputation.

On 13th February it was further revealed in the British press that an American, Glen Moreno, the Director and Chairman of the newly established entity set up by the Brown Government called UK Financial Investments, which is supposed to preside over and supervise the progress of how the Government’s bank bail-out money is used, had resigned from his new post (which he only took up a few weeks earlier) amid allegations that a Liechtenstein institution with which he has links is (of course) involved in tax evasion operations.

The resignation followed Treasury questions in the House of Commons, during which the highly respected and skilled Conservative MP, Michael Fallon asked: ‘Can it really be right that the body looking after the taxpayers’ interest… should be chaired by Mr Moreno who appears to have been so heavily involved in tax dodging in Liechtenstein?’ It has transpired that Mr Glen Moreno was a trustee of Liechtenstein Global Trust (LGT), a private bank accused of facilitating large-scale tax avoidance. A former employee at LGT, Heinrich Kieber, revealed the existence of secret offshore accounts held by tax-evading US politicians and others in the United States and other countries.

• Belgium:
Shareholders in Fortis rejected a state rescue plan to carve up the banking and insurance group, defying Belgian Government warnings that Fortis will face total collapse. On 11th February, Belgian Ministers convened an emergency meeting to try to prevent the dispute bringing down yet another coalition Government, following the collapse in December of the Belgian Government led by Yves Laterme over the handling of the nationalisation of Fortis, Belgium’s largest single employer. More than 5,000 angry shareholders roared with delight as their votes blocked a plan to sell part of the Fortis Group to BNP Paribas, another huge institution which is up to its neck in Fraudulent Finance, with the Belgian state taking control of Fortis’s lending operations. Shareholders had won a court case to delay the Belgian Government’s blueprint for the carving-up of Fortis until they had been consulted. The Belgian Finance Minister, Didier Reynders, said that the entire enterprise would face bankruptcy if the shareholders blocked the deal. The total liabilities of Fortis are equivalent to four times Belgian Gross National Product. The interest rate spread between Belgian official debt and German Bunds soared by 125 basis points on fears that the Belgian Government may have to take over the liabilities of Fortis, further undermining the creditworthiness of the Belgian state. Again, these liabilities the false values attributed to the trash ‘assets’ on Fortis’ balance sheet.

• Ireland:
The latest banking scandal to break in Ireland concerns the discovery by Government-appointed investigators that Irish Life & Permanent had transferred more than six billion Euros billion £5.4 billion) of deposits to the books of the Anglo Irish Bank very shortly prior to the end of the bank’s financial year, only to withdraw the exact same amount some weeks later. Most of the funds were deposited on the final day of the bank’s most recent financial year. Moreover the bulk of all these deposits were placed just hours after the Irish Government had announced a guarantee to insure all deposits and debt liabilities held at Irish banks. The Finance Minister, Brian Lenihan, says that he was aware of certain unacceptable practices, including the transfer from Irish Life, when the decision was made to nationalise the bank.

Given these shady practices, the Office of the Director of Corporate Enforcement and the financial sector regulator have initiated investigations into these transactions, which may result in criminal proceedings: Lord Mandelson, please note. The Irish Defence Minister, Willie O’Dea, elaborated:
‘If it transpires that Anglo Irish, or any bank, was artificially building up its deposits to give a false picture of its financial health, that would be very, very, very serious’.

• European Commission:
A leaked memorandum prepared for the EU Finance Ministers (ECOFIN) was reported to have warned that the so-called ‘toxic’ debts of European banks risk overwhelming some of the weaker EU ‘Member States’ and ‘may’ [sic] present a systemic danger to the overall EU banking system. Countries which the authors of the document appeared to have in mind are those with bloated banking systems, namely: Ireland, Britain, Belgium, Netherlands, Austria, Sweden and a non-EU country, Switzerland. Some crucial passages from this document have surfaced, including:

‘Estimates of total expected asset writedowns suggest that the budgetary costs of asset relief could be very large both in absolute terms and relative to Gross Domestic Product’.

‘For some Member States, it may be the case that asset relief for banks is no longer an option, due to their existing budgetary constraints and/or the size of their banks’ balance sheets relative to GDP. The extent of any possible risks to the European Union’s banking system as a whole from an inadequate response in these Member States needs to be considered’.

EUROPEAN COMMISSION’S DELUSIONS ABOUT ‘ASSET RELIEF’
It will have been noted here that the European Commission is looking at ‘asset relief’ as though this is a viable policy – when what is actually implied here is that the false values of the fundamentally valueless derivatives ‘assets’ are supposed to represent actual liabilities which the governments in question might be called upon to honour.

This is a strategy of certain ruin in an environment that is also destroying the fabric of Economic and Monetary Union (EMU) and its add-on provisions. For instance, contrary to all EU norms, the Irish budget deficit is projected to reach 12% of GDP in 2010, with the equivalent measures in both Spain and the United Kingdom expected to reach 10% of Gross Domestic Product.

All three countries have been ‘enronised’ and used as ‘trading platforms’ by the Bush Sr.-Clinton Greenspan organised criminal Fraudulent Finance Ponzi derivatives offensive.

SWISS RE SCRAPS ITS DERIVATIVES OPERATION COMPLETELY
On 12th February 2009, the world’s largest reinsurer, Swiss Re, dispensed with the services of Jacques Aigrain, its Chief Executive, a former JPMorgan investment banker, who had shifted the organisation into risky derivatives operations. Swiss Re announced a record full-year trading loss of SwFr1.0 billion (£602 million) after announcing a week earlier that it was scrapping its investment bank altogether. That entity traded ‘Structured Products’ such as Credit Default Swaps (CDOs), triggering a writedown of SwFr6.0 billion (£3.6 billion) for the full year in question.

Swiss Re pointedly replaced M. Aigrain with Stefan Lippe, an insider, who previously headed the group’s property and casualty and life and health underwriting divisions. In other words, the entity placed a veteran professional reinsurer into the outgoing CEO’s slot, signalling that it would be reverting exclusively to its core business, and would have nothing more to do with derivatives.

Note that the dismissed CEO who took Swiss Re on a derivatives wild goose chase, came from JPMorgan. Translation: Swiss Re not only closed down its so-called investment banking operation, but also reflected the true position, by VALUING THE DERIVATIVES ‘ASSETS’ AT ZERO.

• This is the kind of evidence of the worthlessness of these fraudulent assets, that cannot be ignored, even by derivatives market ideologues,

• FACT: Many of the colossal losses being logged by financial institutions reflect the fact, which is never reported, that they are ACTUALLY engaged in purging their books, or those of subsidiaries, altogether of the fraudulent derivatives ‘assets’ which were previously reported to have value, but which, since the discontinuity, have been seen to be worth nothing at all.

• ANOTHER FACT: One reason this is happening is that accountancy firms (auditors) do not relish the prospect of being sued for negligence in having signed off on accounts containing fraudulent valuations of derivatives ‘assets’ – given the general climate that has arisen due to the concrete discontinuity, in which it is now universally recognised that derivatives have no value and can no longer be fraudulently passed off as though they do.

WORST PROSPECTS FOR BRITAIN SINCE 1931
In announcing that Britain faces its steepest downturn since the postwar years of 1945 and 1946 and its worst peacetime contraction since 1931, with real Gross Domestic Product expected to contract in real terms by 4% year-on-year in 2009, the Governor of the Bank of England, Mervyn King, warned on 11th February th