Global Economic Criminals - 3

Global Economic Criminals - 3

"If there was such a shock, what would be the damage?" asked Corrigan. What would be the counterparty risk? What would be the effect of credit derivatives in systematic financial shocks?  What settlement mechanisms would and could be brought into play? Certainly unregulated credit derivatives transactions, with their flexibility, function as "short sells" and "margin calls" if so desired. Corrigan's investigations must have included those possibilities, even though the conclusions were worded in terms of "risk mitigation" and "governance of hedge funds," etc. The simple conclusion was that whatever happened would be over the head of most of the participants; that, with the right real-time data processing and the right models to predict and to project the outcomes of interventions, it would be possible to steer a kleptastrophe with all of the world wondering if it was an act of the invisible hand of the impersonal and incomprehensible market mechanism. The reason the great mathematicians are so much valued by the money elite is that they can create these heists that none but a close group of cooperating insiders and some bought-off academics among the multitudes of the human race could ever even begin to figure out. It's like the question of whether a particular hurricane or drought was the result of "nature," or "global warming," or clandestine weaponized weather modification in the hands of people heavily invested in commodities futures contracts and derivatives bets on future food prices.

Corrigan correctly reported that the low-probability event of a systematic financial shock occurring naturally was very small; his report did not even mention the possibility that men exist who are in a position to initiate such shocks, and to do so when they have pre-arranged for themselves the most advantageous circumstances for such a shock to take place. Corrigan gives not even a hint that a shock originating in this way is a possibility. What is more obvious than the existence of this moral hazard, this opportunity for successful gain from a kleptastrophe without being detected or penalized?  But now we do know that Corrigan did see the possibilities of gain from a kleptastrophe, that he and Geithner and the interests they serve were in fact uncaring enough of the fate of the victims to go ahead and commit crime. Certainly they were right in thinking that even if stray individuals on the internet saw through the smoke screen of rhetoric concealing the kleptastrophe, no one would be in a position to bring them to justice. 

Corrigan, then, was working on 1) the effects and prediction of catastrophic economic shocks ― that actually affect major transfers of assets; 2) direction of risk position; and 3) "global compliance and controls" to bankers’ competition agreements, including the Basal Accords.

Wikipedia says of Corrigan: “[S]ince 1999, Dr. Corrigan has served as Chairman of the Counterparty Risk Management Policy Group (CRMPG). The CRMPG is a financial industry policy group designed to promote enhanced strong practices in counterparty credit risk and market risk management. In this capacity Dr. Corrigan testified before the Committee on Financial Services of the U.S. House of Representatives concerning hedge funds and systematic risk in the financial markets on March 13, 2007. In concluding his testimony, Dr. Corrigan foreshadowed the pending financial crisis of 2007–2008 by stating, ‘[o]ne of the most difficult challenges in human endeavor is how we manage low probability events – such as financial shocks – that can cause so much damage.‘"

So, was Corrigan suddenly caught up in the very catastrophe he was spending years evaluating from every angle, only to be taken completely unawares? Of course not. His breed, the elite who work for Zionist internationalists, are not caught unawares. When events happen around men from Goldman Sachs, they are not chance happenings, not the "low probability" cast of the dice that Corrigan, Thain, Geithner, Paulson, and the others would have you believe. This was an act of war, an act of plunder by international pirates disguised as America's guardians of the economy.

Lloyd Blankfein
Goldman Sachs Chairman and Chief Executive

Let's look at some more. 

Former Goldman Sachs’ John Alexander Thain is now President of Wealth Management, Global Securities, and Global Banking at Bank of America. Before that he was the last chairman of Merrill Lynch until that company was sold to Bank of America for $50 billion. Not surprisingly, Thain was brought to Merrill Lynch at the time of its crisis because he was considered a top expert on mortgage-backed securities. Thain, by the way, has been the CEO of the New York Stock Exchange, its president and chief operating officer, and chief financial officer, as well as President of Goldman Sachs, its Chief Operating Officer, and Chief Financial Officer.

  John Thain 

The Kleptastrophe brings commercial banks under the regulation that "international banks" arrenged for themselves in the Basal accords  -- The Basel Accords determine how much reserves ("regulatory capital") a bank must hold -- in other words this international constrains how much credit banks are allowed to extend to citizens. The international bankers now determine the monetary policy that determines American purchasing power, the money supply (which comes into being when banks lend money) and credit in the United States.  The Kleptastrophe has forced the restructuring of the Banking system to the specification set by Corrigan and the others behind the Basle architecture.  The equity cushion the Accords require are but a pillow pushed over the face of the American economy -- the air we get being controlled by the bankers. 

These rules mean that the greater return which is a function of greater risk to which the bank is exposed, the greater the amount of capital the bank is forced to hold idle -- which of course means that other  banks must cut in others on these big ventures. The rules force them to reduce their return on capital by having to hold more reserves idle for each dollar invested in certain kinds of investments  -- this puts breaks on investing and developing around the world  -- a case of monopoly price fixing in the loanable funds market through constraining of the quantity that banks can lend -- raising the interest rate (which is the price of their product, i.e,  loanable funds)   and restricting the quantity of that which is sold  at the expense of everyone else except the bankers who made these rules for themselves.

Before setting the Kleptastrophe in motion Geithner sent examiners to the major investment banks to calculate to the penny exactly what manipulations would be necessary to effect exactly the transfers of wealth, the consolidation, and the new monopoly control he was assigned to  bring about -- even though the Fed is not supposed to have regulatory power over the investment banks. Emergency powers left over from the Great Depression (Bernard Baruch's architecture) were invoked.  The examiner he chose (without a competitive bid process) was asset-management company  BlackRock, Inc. whose board of directors includes Thain. 

  Ralph L. Schlosstein

BlackRock, a firm managing nearly $1.2 trillion in assets, was founded by Ralph L. Schlosstein, who is a former Managing Director of Lehman Brothers, Inc., where he headed the Mortgage and Savings Institutions Group, a member of the Visiting Board of Overseers at the John F. Kennedy School of Government at Harvard University, a member of Financial Institutions Center Board of the Wharton School of the University of Pennsylvania, and, until recently, a member of the Advisory Council of Fannie Mae. Atone time he was Deputy to the Assistant Secretary of the Treasury Department. Schlosstein stepped down as President of BlackRock a year ago.

 Larry Fink

The President of BlackRock now is co-founder Larry Fink. Fink, as managing director at First Boston years ago, pioneered the mortgage-backed securities market in the United States. On September 29, 2006, BlackRock completed its merger with Merrill Lynch Investment Managers. Managing portfolios in global capital markets, including mutual funds, closed-end funds, managed accounts, and alternative investments that include credit derivatives, BlackRock was in a perfect position of moral hazard to profit from a foreknown kleptastrophe. Such foreknowledge would make successful management of the $1.2 trillion assets they managed very, very easy. How responsible is it to have such an interested "auditor" be given regulatory power to look at the books of the institutions with which it itself does business? The mice designs the mousetrap, the burglars the alarm system.

The banks BlackRock audited for Geithner today no longer exist. The assets they held are now in other hands. 

 John Pickel

Robert Pickel is the President of the International Swaps and Derivatives Association, Inc. for privately negotiated derivatives and governments and businesses that rely on over-the-counter derivatives to hedge market risk or speculate. This is the global trade association for OTC derivatives. The essential idea is: "We regulate ourselves." The ISDA pioneered efforts to predict and control the risk events derivatives bet on, "advancing the understanding and treatment of derivatives and risk management," including through other things, such as "credit derivatives," which are big bets on what will happen to credit in the future. Foreknowledge of the Kleptastrophe would of course be an opportunity for unspeakable gain in the credit derivatives market ― gain that would not have to be reported, because privately negotiated derivatives are not regulated. "It's difficult to get everybody to pull together to achieve the right result." But if big enough events are triggered by the efforts of just a few key players ― with Geithner, Corrigan, Thain and a few others calling the shots  ― then the profitable-for-some disaster can be controlled to yield just the right new economic landscape the conspirators have been seeking. On October 6, Pickel announced the successful implementation of its Protocol for credit derivative transactions involving Fannie Mae and Freddie Mac, a month after they were placed in conservatorship on September 7. It was a plan to settle all bets to make everyone reasonably happy if they would just play along. Play along they did: 651 ISDA members of the voluntary Protocol immediately announced that they would adhere to these ad hoc rules. "The Protocol, which closed on October 2, offers institutions the ability to amend their documentation for credit derivatives transactions in order to utilize an auction to determine the final price for settling CDS transactions referencing Fannie Mae and Freddie Mac."

“ISDA is committed to working
with public policymakers and market practitioners
to further encourage the prudent and efficient
development of the privately negotiated
derivatives business in China." ―

Following are more relevant items that must be mentioned.

 Paulson was conveniently spending a lot of time in China in April 2008. He has made over 70 trips to China in his career, and, as Secretary of the Treasury, he has attempted to pressure China into opening its real estate to resale (peasants since the revolution have not been allowed to sell of their land), mortgages and securitization, insisting that they create more "investment-worth corporations and fewer public utility and small businesses” in their economy. As "an economist of Goldman Sachs," Paulson expressed his outrage to the Chinese that in China only four percent of capital comes from the organized capital markets (the investment bankers' loanable funds), when two-thirds of capital comes from the capital markets. So far, the Chinese have been yielding on every point; the distressed peasants in bad times can now sell their land and move to the cities and look for work in the global economy, like we all did. That is Hank Paulson’s kind of regard for the welfare of the people of a nation.

You find Goldman Sachs alumni in the most unusual places. AIPAC has nothing like the influence of this company. For example, Mario Draghi, the Bank of Italy's governor, and Joshua B. Bolten, the current White House Chief of Staff are Goldman Sachs alumni. 

Goldman Sachs man John Thain came to Merrill Lynch after its loyal CEO's were sacked. He acted as the butcher, serving the company up to Bank of America for a mere $50 billion at $10 per share, a stock that had been selling at $171 per share less than two years before. To the very end, Merrill Lynch’s management, on whose watch all of this transpired, insisted that their investment bank was adequately capitalized and had the cash flow to make it, but a campaign of rumors of insolvency caused a bank run.

  Robert Zoellick

And then there is Robert Zoellick. As Executive Vice President of Fannie Mae, from 1993 to 1997, Zoellick was responsible for its shift to the "affordable housing business." He has been Counselor to the Secretary of the Treasury and Deputy Secretary for Financial Institutions Policy, and he is currently the Director of the Aspen Institute’s Strategy Group on Foreign Policy. He is a member of the Council on Foreign Relations, and sits on the Advisory Board of the Johns Hopkins School of Advanced International Studies, as well as serving on the Executive Committee of the Trilateral Commission and the Advisory Board of the Center for European Reform in London. As a State Department official, Zoellick led in the NAFTA negotiations, the Urugual Round and the Asia Pacific Economic Cooperation Group. It was Zoellick who arranged for the securitization of third-world debt (exactly like the securitization of American household mortgages!) to transfer ownership away from the institutions that made the loans.

We see this group of Goldman Sachs men using their "club membership" ― not unlike the Skull and Bones ― to insinuate each other into strategic positions and use those positions to create situations profitable to the firm. There is no reason to suspect that these men with their internationalist, Zionist, financial elite backgrounds would have any sympathy for the interests of Americans whose economic lives have been put into their greedy hands. Nonetheless, by owning the media and by being able to put their friends in important high-status positions, they are treated with great reverence, at least in the U.S. A case in point is Lawrence Summers, who was made President of Harvard University. Summers is one of those mathematical economists who devised ways of robbing American investors at levels too far above their understanding to be noticed. Summers is, however, being accused by Russians of participating in the biggest single heist of material ever assets ― "the looting of the fruit of 70 years of labour of Soviet citizens. 3,000 metric tons of gold bullion was trucked out in the night from the Central Bank in Moscow and the pros who ordered it, did not allow the gold market to dip." I have already mentioned Summer’s role in the crime involving Federal Reserve gold. And what about that gold removed from beneath the WTC? Why were the money men allowed to violate the crime scene in that way?

In the cases of Bear Stearns and Merrill Lynch, it was the mortgage lending banks that were destroyed, through securitization, by the derivatives investing banks. Of course the derivatives investors have the econometric models, the statisticians and mathematicians, the data, which are unavailable to government because regulations no longer require them to be, and the international connections to have designed and effected the control necessary for pulling off the Kleptastrophe.

Bear Stearns was an aggressive competitor. For example, they invented the securitized mortgage. But, in the world of the banking elites, real competition is not really acceptable. So they were sabotaged by the Kleptastrophists. The Kleptastrophe was a deliberate trap set for Bear Stearns, who did not see coming the rise in gasoline prices and the related and unrelated increase in food and other prices that would hit all at once, sabotaging their lending position and bringing them down. The securitized mortgages actually helped keep the economy afloat, possibly against the wishes of the Money Power. With billions in sub-prime losses, the biggest write-down in Wall Street history, last year Thain stepped in and presided over the shambles.  It was clearly a case of Goldman Sachs alumni at the Fed and at Treasury bringing down an old opponent, just like Wolfowitz, Perle, and Rumsfeld had their role in bringing down all that 9-11 has brought down. Only after the targeted Bear Stearns was out of the way did the Fed begin to show its generosity, opening the discount window "candy store" to the investment banks for the first time, cutting the interest rate and offering short term loans, measures that might have prevented the fall of Bear Stearns, in many ways the catalyst of the main event in the Kleptastrophe. The Goldman Sachs crew that was running the financial system of the United States, ostensibly for the benefit of the American people, engineered the crisis to profit themselves. However, before they would let the government shower the (international) investment banks with the people's credit, which Treasury and the Fed commands and which the architects of our financial system never dreamed would be used to benefit investment banks, they first had to get rid of their hated competitor.

Now the investment bankers and their banks are enjoying all of the tax-payer-provided backing that had been intended only for our commercial banking system. They have attained their goals: the capture of everyone's home equity; the displacement, through watering of stock, of Americans’ investments in commercial banks, with the taxpayer actually buying the stock for them; and a new system in which the taxpayer now bails out the investment bankers, who for the last 20 years have been doing all of their investing in China, not the U.S., and rigging everything against the domestic economy.

Now that you have a pretty good idea of what is really happening, not only that individuals were indeed behind the Kleptastrophe, but their identities. The important question now is: What are we, the American taxpayers, and those throughout the world who are, have been, and will be victims of this Kleptastrophe and these Kleptastrophists going to do about it?

 Republished by permission of author, Dick Eastman

Global Economic Criminals 1 - 2 - 3

In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.