Posts Tagged ‘citi bank’

The Real 2012 Doomsday: U.S. Falls To Tyranny

UPI
Police release tear gas while blocking the way to City Hall where the Occupy Oakland encampment was dismantled and protesters dispersed, in Oakland, Calif., on Oct. 25.

The past year has been a bad one for democracy, and the Republic that once was the United States seems to live in name only. Because of the extreme abuses of power the Federal government has exercised just in the past year, the people of the Nation have been broken, discouraged and must now only be controlled.

A recent report in the state-run Russia Today cites an instructional military book, Non-Lethal Weapons Reference Book (leaked by PublicIntelligence.net) to outline the coming “high-tech crackdown” that may soon befall citizens of the United States deemed unruly.

If you have ever seen a farmer persuade his livestock to bend to his will with less-than-lethal methods such as cattle prods, whips and electric fences, you know how incredibly persuasive they can be to the animals. The U.S.
government also knows a thing or two about controlling groups; unfortunately, the target isn’t unruly livestock, but U.S. citizens.

The report references one device that has already made a military debut in Afghanistan and that will likely become commonplace for domestic crowd control as law enforcement agencies throughout the country become increasingly militarized. The Active Denial System, which is described as a “long range, directed energy, vehicle mounted system that projects an invisible electromagnetic millimeter-wave energy beam beyond small arms range,” can be used as a non-lethal way to create extreme discomfort and quell group dissent.

Other military implements that may soon see use within U.S. borders include Acoustic Hailing Devices that provide “scalable, directional warning tones” causing “auditory damage” and the Distributed Sound and Light Array which “uses a combined laser, non-coherent light, and acoustics to produce a synergistic engagement system.” Other systems can completely disable motor vehicles and emit acoustic waves that make it impossible for crowds to shout without discomfort and nausea.

While many Americans deny that the U.S. government will ever use such weapons on a widespread basis against dissenters, recent developments in the country appear to indicate otherwise. The crackdowns on OWS camps carried out by police in riot/military gear, armed with tear gas canisters and rubber bullets, indicate that when large masses of people cry out, no matter what the political agenda, they will be quieted by local, State and/or Federal officials.

Before the crackdowns on the OWS camps, the Federal government demonstrated its willingness to bypass the judiciary system anytime an individual poses a threat to its agenda. In September, the Administration of Barack Obama executed U.S. citizen Anwar al-Awlaki in the mountains of Yemen with a drone strike. Though he often spoke on behalf of al-Qaida, it could be reasonably assumed that al-Awlaki’s citizenship status gave him the right to trial before execution. The Administration disagrees: Pentagon lawyer Jeh Johnson said of the execution that only the executive branch, not the courts, is equipped to make military battlefield targeting decisions about who qualifies as an enemy.

Johnson’s statement would be less alarming if the Administration — with the help of hawkish neoconservatives like Senator John McCain (R-Ariz.) — had not recently passed a military spending bill with provisions that effectively designate American soil a battlefield and every American a possible enemy. The bill gives the President the ability to indefinitely detain terror suspects, but this comes at a time when the lines of what constitutes “terror” are becoming increasingly blurry. The Federal government is currently in active negotiations with members of the Taliban, and Obama has made it clear that anyone who rejects his agenda is considered a “right-wing domestic terrorist.”

How long will it take for Federal government to decide it necessary to carry out al-Awlaki style executions on those deemed “domestic terrorists” as they sit in their homes in the United States? With the increasing use of military drones in U.S. airspace, the idea is not so far-fetched. The same Federal agencies that carried out fatally-flawed operations like those in Waco, Texas, and Ruby Ridge, Idaho, in the 1990s now have aerial drones and a license to kill in the name of Homeland Security. Some people may think that the agencies have refined their methods since those days; others have been following news about Operation Fast and Furious, the most recent endeavor by the Department of Justice, and know better.

Those people who do not believe the Federal government is out to harm them by breaking their will, dehumanizing them and bending them to be the subservient masses that will keep it afloat should simply take a flight. If being prodded, poked and virtually stripped naked by poorly trained agents of the Transportation Security Administration is not bad enough, how about having very personal belongings fondled, food stolen and grandmothers groped by the TSA? All are tactics of dehumanization to create subservient masses, and all are things that happened to American travelers last year.

Aside from quashing unruly masses and making problems disappear, the Federal government wants to keep tabs on the information being put out by journalists and bloggers throughout the Nation with a new Homeland Security initiative. According to Russia Today, in a new report, the Department reserves the right to collect personal information from news anchors, journalists, reporters or anyone who may use “traditional and/or social media in real time to keep their audience situationally aware and informed.”

And while Homeland Security is busy putting together a plan to rid the country of any bad press, Congress has been working to sanitize the Internet. Pending legislation like SOPA and the Protect IP Act will effectively give American citizens about as much online freedom as citizens of China.

Some Americans may think that if they are not in the public eye, don’t regularly protest and are not members of al-Qaida, they are not subject to government intrusion. But a recent decision by Magistrate Judge David Noce in United States v. Robinson says that as long as you park your vehicle in public parking lots or use public roadways, law enforcement has the ability to install a GPS tracking device with no warrant to log where you travel if they believe you “may be involved in criminal activities.”

When the First Congress enacted the original Crimes Act in 1790, with only 17 recognized Federal crimes, it may have been reasonable to assume that as long as a person was a law-abiding citizen, he was not at risk of intrusion. Today, though, there are more than 4,500 Federal crimes — and many are so obscure that they are nearly indecipherable. In addition to the 4,500 Federal crimes, there are tens of thousands of Federal regulations. Many people commit criminal acts daily without even knowing they are doing so.

Last year was a very busy one for all of those interested in ending American life as it is and has been known. The United States that was a Republic has already collapsed and has very quietly become a totalitarian regime, complete with a dictator named Obama and a Congress that bends to his will and continually legislates in such a way that would make any totalitarian regime proud. Together they have done everything in their power to undermine the Constitution and name themselves as the all-powerful ruling class. And with the undoing of the ideas of the Founders and the ruination of but a few more checks and balances, they will effectively claim their supremacy.

So what have Americans lost and why does the ruling class have to do away with the Constitution and the rights it gives to every American citizen? It is explained by James Madison, who contended that there was no way American lawmakers could declare themselves a ruling class under the provisions of the Constitution, in the 57th volume of the Federalist Papers:

If it be asked, what is to restrain the House of Representatives from making legal discriminations in favor of themselves and a particular class of the society? I answer: the genius of the whole system; the nature of just and constitutional laws; and above all, the vigilant and manly spirit which actuates the people of America — a spirit which nourishes freedom, and in return is nourished by it.

Those who are working so hard to claim themselves a ruling class know that their goal cannot be achieved if there is such a thing as a population that holds dear its “vigilant and manly spirit.” And they know how to slowly break that spirit without alarm by dehumanizing populations — luring people into accepting tyrannical rule in the guise of laws claimed to exist for public safety, homeland security or the better good of humanity. Unlike Madison, they always leave out words like freedom and never discuss the great threats government poses to the people, but contrarily advise vigilance to combat the people’s threat to the government.

Republican Presidential candidate Ron Paul has been warning the public of many of these frightening developments for more than 35 years. Now, as he vies for the Nation’s highest office, many of his predictions have come true. Maybe it is time Americans listened to the “kook,” because those things he said would happen — predictions Americans once considered to be crazy and far-fetched — are now reality. He may be the Nation’s last hope to a path back to some semblance of the Constitutional Republic created by the Founders.

A senior citizen protests big bank policies in New York. Photo: Flickr user longislandwins.

A group of senior citizen activists calling themselves “Wild Old Women” staged a protest at a San Francisco Bank of America branch this week and succeeded in causing the business to close its doors, albeit temporarily.

The Bank of America in Bernal Heights, a district of San Francisco, was confronted by the activists on Thursday afternoon, according to KCBS radio reporter Doug Sovern, who was on the scene.

The women were ages 69 to 82, and they stood on a sidewalk holding signs that demanded lower fees, higher taxes for the wealthy and a freeze on foreclosures. The bank locked its doors as soon as they arrived, Sovern noted.

“We’re upset about what the banks are doing, particularly in our neighborhood and neighboring areas, in evicting people and foreclosing on their homes,” one of the activists was quoted as saying. “We’re upset because the banks are raising their rates because it really affects seniors who are on a fixed income.”

The protest is just the latest in a growing number of direct actions targeting major American financial institutions, which have drawn the public’s ire for their role in the 2008 financial collapse, triggered by predatory loan practices and the widespread selling of debt-backed securities.

People who have participated in the “Occupy” movement have frequently targeted banks over their participation in widespread foreclosure fraud, where delinquent homeowners have been evicted with paperwork rubber-stamped by companies that essentially automated their process through a technique known as “robosigning.”

Protesters around the country have taken to occupying homes ahead of planned foreclosures, setting up very public stand-offs with bank representatives and civil authorities in an effort to protect some from becoming homeless.

Latvia’s largest bank is scrambling to contain a run among depositors gripped by fears of the bank’s imminent collapse.

The panic among Swedish-owned Swedbank‘s depositors began Sunday after rumors spread that the financial institution was facing legal and liquidity problems in Estonia and Sweden.

Swedbank’s Latvian chief Maris Mancinskis on Monday called the rumors “absurd.” He said the bank is functioning normally and all depositors will have access to their funds via bank machines.

Mancinskis said some 10,000 Latvians withdrew over 10 million lats ($20 million) on Sunday.

Latvia’s 10th largest bank, Latvijas Krajbanka, is currently being liquidated after regulators uncovered fraud on a massive scale. Depositors were left without access to their money for days.

http://www.thecomingdepression.net/countries/europe/s-us-credit-rating-at-risk-again/#axzz1fAM9sJ6G

hidenburg disaster

“Standard & Poor’s Ratings Services today said it reviewed its ratings on 37 of the largest financial institutions in the world by applying its new ratings criteria for banks, which were published on Nov. 9, 2011″

Following Fitch Ratings decision to lower the US outlook from stable to negative, the S&P has thrown yet another bombshell after it informed in an official release post NY close that it had just downgraded 37 global banks. Goldman, BofA, Citigroup, Morgan Stanley, BNY Mellon were amongst the cuts based on a new reviewing critera it applied. Japanese and UK banks were either cut or the outlook lowered as well.

The US does not longer held AAA rating from the three agencies because on August S&P lowered the grade. US Treasuries continue to rally despite the downgrade. Recent change in the outlook by Fitch had relatively no effect on the Treasury market. “Both the action and the timing had been previously signaled by Fitch and there was no FX reaction,” said Chris Walter, from UBS Strategy. Fitch mentioned back in August that a failure of the bipartisan committee to reduce the deficit would likely lead to a negative rating.

Rating agencies are demanding the government to implement more measures to lower current fiscal deficit that is above $1 trillion on a year basis. The public debt is estimated to be around $15 trillion. The failure of Congress to make a bill that includes a credible deficit reduction plan could trigger another downgrade in US rating. According to Fitch, the use of the US Dollar as a reserve currency help the country keep its AAA rating. Source: (1) FX Street News

Global fiat currency is to blame for this mess

We hope you all understand that this whole financial services bailout episode is more accurately about further shifting the risk towards the public balance sheet and away from the once privately held. (but first they had to extract their bonuses and comp packages.)

It is the largest transfer of wealth in history! When they are bailed out once again, they will also be compensated for the mere acceptance of the bailout funds. That’s the way it worked last time and the way we’re headed again this time.

For years people have been sounding the alarm about both the size/amount of public/household debt but to no avail. We saw we were headed for the wall; as politicians crossed their fingers and hoped for the best.

Now we have the de-leveraging continued de-leveraging of small, private businesses and households and the advent of too big too jai

World debt is in the trillions, there isn’t enough energy or materials to ever generate the kind of growth that will require to repay that amount. It will NEVER be paid back.

 

Fractional reserve banking, interest, fiat currency have put us here. A growth economy based upon loaning money into existence and creating debt is inherently doomed to fail. You cannot have infinite growth on a finite plante. We’ve hit the wall, economic contraction for a generation is the order of the day, year, and decades.

Our best hope is aiming for a steady state economy and living within our fiscal and environmental limits.

The IMF / ECB / EU / Banks etc. are preparing for a Greek default on their debt and that’s why they want banks to get another MASSIVE “cash injection”. They don’t have the courage to come out and say it though – they want the taxpayer to backstop this.

On the US downgrade: S&P is nuts

S&P has no right to issue a downgrade because it blew it on the mortgage-backed paper. The fact that S&P did blow it during the mortgage fiasco, by continuing for years to rate junk bonds as AAA, shows just how serious the United States fiscal problems are. It covered up the problem with US government debt for years and now it can no longer do so and retain its credibility.

By the way, the Chinese rating agency Dagong already downgraded the US to A, down from AA, last November and is considering further downgrades. S&P is behind the curve and Fitch & Moody’s are like the monkeys with their hands over their ears and mouths.

Read more: http://www.thecomingdepression.net/countries/europe/s-us-credit-rating-at-risk-again/#ixzz1fGU2rRRx
Original story at http://thecomingdepression.net
Under Creative Commons License: Attribution Non-Commercial

by Mike Adams
(NaturalNews)

We live in interesting times. Even as our own civilization hangs on the precipice of financial solvency, the priorities of the uninformed masses as so distorted that many will actually camp out in front of a Best Buy store in order to be the first in line to save $100 on a big-screen TV. In a time when the very problems of society are rooted in over-consumption and too much television, the everyday pleebs place such high importance on expanding the size of their mainstream media hypnosis devices that they will physically fight each other to get one of these TVs at a slightly lower price.

Meanwhile, the federal debt has plunged past $15 trillion, the freedoms and liberties upon which America built its economic strength are fast eroding, and the U.S. has practically entered a fighting war with Pakistan (http://www.reuters.com/article/2011…).

Pay no mind to any of that, friends. Wal-Mart has teflon-coated waffle makers on sale for two bucks off!

Sleight-of-mind distractions

Meanwhile, the 2012 presidential election races are under way, and the mainstream media seems determined to catapult anyone into the White House as long as his name isn’t Ron Paul. The last thing the globalist controllers really want is someone who dares to tell the People the truth about topics that matter — the Federal Reserve, national debt, foreign wars, the Bill of Rights and more. Presidents are supposed to be entertainers and distracters, didn’t you know? When a nation’s collision with financial reality is all but inescapable, that nation inevitably turns to bread and circuses.

And so sleight-of-mind distractions invite the masses to invest their attention in dancing with the stars, lusting after the latest electronics gadgets, and tuning in to staged news footage from the front lines of the fabricated “war on terror” where U.S. troops are now openly engaged in the planting, harvesting and protecting of the opium trade in Afghanistan. You can talk about anything you want in America, it seems, as long as it’s not the Bill of Rights, or buying something with cash, or exercising your Free Speech rights — because all of those things are now considered signs of being a suspected terrorist.

Layers of deceit

The most astonishing thing about it all is how many layers of wool have been pulled over the eyes of the American people, most of whom suffer under the illusion that they still live in a “free” country. Where to begin in educating people about this? First, there’s the engineered “war on terror” which was entirely invented, carried out and sold to the American people as a way to justify more war spending and the stripping away of fundamental human rights.

Then there’s the economic quackery taking place right under our noses as the Federal Reserve — a private corporation that answers to no one — has been quietly and deliberately stealing America’s wealth for nearly a hundred years. Following the money is simply too difficult for mainstream Americans, who are unable to grasp how purchasing power is deliberately stolen from them through the dilution of the money supply. You’re never supposed to get ahead, don’t you know? A common wage earner can no more save money and make it into the ranks of the ultra wealthy than a frog can transform into a magical unicorn. That’s because a small percentage of your wealth — everything you’ve worked for — is stolen from you year after year, much like the way in which rain erodes a pile of sand that you might have stacked and shoveled into a mound.

The economic deceit is designed to keep you enslaved; to keep you working for the globalist corporations that pocket the profits of your labors — and usually tax-free! Two examples: Bank of America pays NO taxes (http://www.thestreet.com/story/1105…), and General Motors also runs a sweet offshore tax shelter structure that makes it virtually immune to paying taxes at all: http://money.cnn.com/2011/02/23/new…

Meanwhile, YOU are taxed when you earn (payroll taxes, paid by your employer), taxed when you save (capital gains taxes) and taxed when you spend (sales taxes). You’re even taxed when you just sit on a pile of money and do nothing (monetary devaluation / price inflation). And remarkably, some of the more ignorant members of society have been out protesting, calling for more taxes on the People as a “solution” to all this!

No, my friends. We do not need more taxes on the People. In fact, let me explain something to you that will absolutely astonish you once you grasp the simple truth of it:

The U.S. government needs NO TAX MONEY whatsoever to operate!

The myth of government needing tax money

How’s that? You’ve all been told the government needs a few trillion dollars a year in tax revenues to build bombs, make roads, pay social security benefits and the like, right? It is the Great Lie of our time. Allow me to explain…

The idea that the U.S. government needs us to send it our money is rooted in the false assumption that the government cannot simply create the money it wants to spend. And yet, we all now know that to be false. For example, in October 2008 during the first investment banker crisis, the U.S. government (via the Federal Reserve) simply created nearly $1 trillion and handed that money over to the richest, filthiest banksters on the planet. Here’s a partial list of who received the money (and this list isn’t even up to date) http://projects.propublica.org/bail…

Where did this money come from? Think about it. Did you send in some cash to help with this bailout? Of course not. The money was created out of thin air by the U.S. Treasury working in conspiracy with the Federal Reserve.

And that wasn’t even the end of it: Between 2008 and 2011, the U.S. government conspired with the Federal Reserve to create trillions more — in what can only be called “counterfeit” money — and then hand it over to the world’s wealthiest corporations, banks and institutions. According to the New York Times, the U.S. government has now committed $12.2 trillion to these institutions: http://www.nytimes.com/interactive/…

Okay, so where is all this money coming from? Did the U.S. government ask every taxpayer to send in a check to cover this $12 trillion? Nope, because that would have required each American man, woman and child to pay $40,000 just to cover it. That obviously didn’t happen, so where did this money come from?

The government just CREATED the money out of thin air.

There is technically no need for federal income taxes

Here’s the kicker in all this: The government could be creating money right now to end the entire federal tax system so that no American citizen would ever need to pay tax again. The tax code, after all, was originally created only to tax corporations, not the People. Yet today it’s the wealthiest corporations that are paying no tax while the People are being bankrupted by it.

So the government, you see, could simply create the few trillion dollars it needs each year to pay for defense spending (bombs and bullets), interest on the debt, social security, Medicare, etc. And that means the government technically doesn’t need YOUR tax dollars at all!

Now, of course, it would be financial suicide for the government to keep creating trillions of dollars each year, thereby eroding the purchasing power of the dollar and resulting in price inflation across the nation — but it’s doing that anyway! In other words, the government is already CREATING trillions of dollars in new money, year after year, solely for the benefit of the wealthy banksters and global corporate giants. So if the government is already headed into total financial insolvency (runaway debt increases combined with an upcoming currency collapse) — why not use this suicidal process to help the People for a while instead of just bailing out the wealthy corporations?

Imagine this: The IRS announces a cancellation of the personal income tax. You no longer have to file on April 15th. You can keep all the money you’ve earned, other than state income taxes.

Can you imagine the economic boom that would result? People who earn more will spend more, thereby unleashing a domino effect of new job creation across the economy. People would be happier, stress would be lowered, and we would probably see a reduction in heart attacks and suicides, too. The federal government, meanwhile, would simply create a couple of trillion dollars each year to fund its own budgetary needs, and we could all ride this insane financial monster into the ground together while at least avoiding the hassle of filling out a stack of income tax paperwork every April.

There’s no question, you see, that the U.S. government is headed into total financial insolvency. I’m just saying that as long as we’re headed that way, we should be bailing out the People instead of bailing out the rich banksters and wealthy corporations. Why not cancel the income tax next April 15th and announce an income tax bailout for the working people?

Don’t you see that the bankster bailouts are the most obscene example of crony capitalism? The money goes to the insider pals while the debt burden is heaped upon the working poor. That’s the real problem with America — not capitalism, but criminality!

The real purpose of the income tax – it’s not what you think

So if the tax code is not needed to generate money for the government, what is its purpose, you ask?

The purpose of the federal tax code is to keep you down, to keep your face buried in the dirt so that you can never rise up and “get ahead.” The purpose is not to fund the federal government itself, as you’ve been told. The government has already proven it can create trillions of dollars when it really wants to.

So remember that as you’re out spending your after-tax dollars this holiday season. Most of what you have been told by conventional, mainstream sources is pure fabrication: The War on Terror, the “danger” of marijuana, the “right” of the government to reach down your pants at the airport, and of course the “need” for you to “contribute” to the government to pay for roads and schools. It’s all so hilariously fictional that we should all be rolling on the floor laughing about it if we weren’t already writhing from the pain of writing all those checks to the government.

Taxes, you see, are really just a financial shakedown. They are an exercise of thuggish government power over the common people for no purpose than to remind the People they are slaves to the state. And for that purpose, federal taxes are very, very effective. Much like the fictional War on Terror, the IRS reminds everybody to “be afraid” and comply.

And it works. Even I comply with the federal tax code and dutifully pay what seems to be far too much to the federal government every single year. The difference is that I know it’s all a silly game and has nothing whatsoever to do with actually funding government operations. So I pay, and I chuckle, and I continue to work toward the day when we may see the rise of social justice in America where the money supply is honest, the corporations are stripped of their fictional “rights,” and everyone shares equally in the funding of running a smaller government whose main function is to protect and preserve the rights of the People… not to rule over them like tyrants.

Happy Holidays from NaturalNews. Enjoy your Christmas season, but as you spend money this year, I encourage you to look at that money in an enlightened way and realize the deeper truth of where money comes from, how it is created, and how government use money confiscation (and devaluation) to weaken the economic power of the People while concentrating it in the hands of the few.

Awful Homelessness-Mocking Foreclosure Firm Closes

 

The Steven J. Baum law firm, the awful New York foreclosure mill whose employees threw that homeless-themed Halloween party, is closing down just a month after pictures of the party were published by the New York Times. Bwahahahahahahahahaha.

Sweet, life-sustaining schadenfreude. After the Times published those pictures of Baum employees gleefully mocking down-on-their-luck homeowners at a super fun Halloween party, mortgage giants Fannie Mae and Freddie Mac cut Baum off. Last week, Steven J. Baum himself sent Joe Nocera, the Times columnist who first published the pictures, a pathetic email claiming that Nocera’s column destroyed his firm: “There is blood on your hands for this one, Joe… I will never, ever forgive you for this.”

Of course, Nocera’s column was just the final straw. According to the Long Island Bankruptcy Blog, Baum filed “more foreclosure proceedings against New York homeowners than any other attorney in New York’s history.” How did he do it? By filing error-filled “robo-signed” documents, and using shady tactics that one Long Island judge likened to something out of the “Twilight Zone.” Last month, Baum paid a $2 million fine to settle a Federal case accusing the firm of filing misleading papers to rush along foreclosures. That burden, along with their new tainted status, was apparently too much for the law firm.

So, that’s delightful. But it’s still sort of strange that, after years of screwing over homeowners it took some tasteless Halloween costumes to bring down Baum. Lesson to foreclosure law firms: Be awful on the inside.

 

Mac Slavo
November 18th, 2011
SHTFplan.com

Editor’s Note: You will rarely, if ever again, see a brokerage firm close their doors not as a result of losing all of their customers’ money, but rather, preemptively in order to prevent them from being wiped out. That’s exactly what Ann Barnhardt of Barnhardt Capital Management did Thursday morning when she advised clients that her firm was liquidating all customer brokerage and options accounts. In a series of letters published on her web site, disseminated by Zero Hedge, and brought to us by The Daily Crux, Ms. Barnhardt takes the unprecedented step of shutting down her firm in order to prevent losses in what she says is a system that “is no longer functioning with integrity and is suicidally risk-laden.”

The reasons for her taking the steps she did to save client investments are, in our opinion, nothing short of heroic (prompting even Rush Limbaugh to give her kudos) given recent developments in the global economic crisis that include the collapse of government primary dealer MF Global and the untennable situation in Europe. While most Wall Street tycoons and brokers continue to manage money in a highly leveraged marketplace on the verge of collapse while talking their books on financial news shows in an effort to instill confidence in their customers who are swallowing the hopium hook, line and sinker, Barnhardt will have none of it and chose, instead, to pull the plug and get her customers out.

This is an absolute must read warning for all American investors. Though Barnhardt’s firm dealt primarily in futures and options trading, she cautions that ALL markets have been infected with systemic contagion, including the underlying cash commodities – known in layman’s terms as the physical delivery of goods. With the recent collapse of MF Global, the details of which suggest direct fraud and theft of customer accounts, and the government’s lack of any serious response, Barnhardt seems to think there is a real possibility of cascading, system-wide failures in the broader financial sector.

Look out folks, because if she is right then we’re in serious trouble – and soon. The takeaway is, if you’re not sure what is happening in the markets then get out and get your money to safety, otherwise it will soon be added to the asset pool of the organizations complicit in orchestrating the destruction of our financial markets and economic system.

Without further ado, prepare to be blown away:


BCM Has Ceased Operations (source)
Posted by Ann Barnhardt – November 17, AD 2011 10:27 AM MST

Dear Clients, Industry Colleagues and Friends of Barnhardt Capital Management,

It is with regret and unflinching moral certainty that I announce that Barnhardt Capital Management has ceased operations. After six years of operating as an independent introducing brokerage, and eight years of employment as a broker before that, I found myself, this morning, for the first time since I was 20 years old, watching the futures and options markets open not as a participant, but as a mere spectator.

The reason for my decision to pull the plug was excruciatingly simple: I could no longer tell my clients that their monies and positions were safe in the futures and options markets – because they are not. And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse. Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy.

The futures markets are very highly-leveraged and thus require an exceptionally firm base upon which to function. That base was the sacrosanct segregation of customer funds from clearing firm capital, with additional emergency financial backing provided by the exchanges themselves. Up until a few weeks ago, that base existed, and had worked flawlessly. Firms came and went, with some imploding in spectacular fashion. Whenever a firm failure happened, the customer funds were intact and the exchanges would step in to backstop everything and keep customers 100% liquid – even as their clearing firm collapsed and was quickly replaced by another firm within the system.

Everything changed just a few short weeks ago. A firm, led by a crony of the Obama regime, stole all of the non-margined cash held by customers of his firm. Let’s not sugar-coat this or make this crime seem “complex” and “abstract” by drowning ourselves in six-dollar words and uber-technical jargon. Jon Corzine STOLE the customer cash at MF Global. Knowing Jon Corzine, and knowing the abject lawlessness and contempt for humanity of the Marxist Obama regime and its cronies, this is not really a surprise. What was a surprise was the reaction of the exchanges and regulators. Their reaction has been to take a bad situation and make it orders of magnitude worse. Specifically, they froze customers out of their accounts WHILE THE MARKETS CONTINUED TO TRADE, refusing to even allow them to liquidate. This is unfathomable. The risk exposure precedent that has been set is completely intolerable and has destroyed the entire industry paradigm. No informed person can continue to engage these markets, and no moral person can continue to broker or facilitate customer engagement in what is now a massive game of Russian Roulette.

I have learned over the last week that MF Global is almost certainly the mere tip of the iceberg. There is massive industry-wide exposure to European sovereign junk debt. While other firms may not be as heavily leveraged as Corzine had MFG leveraged, and it is now thought that MFG’s leverage may have been in excess of 100:1, they are still suicidally leveraged and will likely stand massive, unmeetable collateral calls in the coming days and weeks as Europe inevitably collapses. I now suspect that the reason the Chicago Mercantile Exchange did not immediately step in to backstop the MFG implosion was because they knew and know that if they backstopped MFG, they would then be expected to backstop all of the other firms in the system when the failures began to cascade – and there simply isn’t that much money in the entire system. In short, the problem is a SYSTEMIC problem, not merely isolated to one firm.

Perhaps the most ominous dynamic that I have yet heard of in regards to this mess is that of the risk of potential CLAWBACK actions. For those who do not know, “clawback” is the process by which a bankruptcy trustee is legally permitted to re-seize assets that left a bankrupt entity in the time period immediately preceding the entity’s collapse. So, using the MF Global customers as an example, any funds that were withdrawn from MFG accounts in the run-up to the collapse, either because of suspicions the customer may have had about MFG from, say, watching the company’s bond yields rise sharply, or from purely organic day-to-day withdrawls, the bankruptcy trustee COULD initiate action to “clawback” those funds. As a hedge broker, this makes my blood run cold. Generally, as the markets move in favor of a hedge position and equity builds in a client’s account, that excess equity is sent back to the customer who then uses that equity to offset cash market transactions OR to pay down a revolving line of credit. Even the possibility that a customer could be penalized and additionally raped AGAIN via a clawback action after already having their customer funds stolen is simply villainous. While there has been no open indication of clawback actions being initiated by the MF Global trustee, I have been told that it is a possibility.

And so, to the very unpleasant crux of the matter. The futures and options markets are no longer viable. It is my recommendation that ALL customers withdraw from all of the markets as soon as possible so that they have the best chance of protecting themselves and their equity. The system is no longer functioning with integrity and is suicidally risk-laden. The rule of law is non-existent, instead replaced with godless, criminal political cronyism.

Remember, derivatives contracts are NOT NECESSARY in the commodities markets. The cash commodity itself is the underlying reality and is not dependent on the futures or options markets. Many people seem to have gotten that backwards over the past decades. From Abel the animal husbandman up until the year 1964, there were no cattle futures contracts at all, and no options contracts until 1984, and yet the cash cattle markets got along just fine.

Finally, I will not, under any circumstance, consider reforming and re-opening Barnhardt Capital Management, or any other iteration of a brokerage business, until Barack Obama has been removed from office AND the government of the United States has been sufficiently reformed and repopulated so as to engender my total and complete confidence in the government, its adherence to and enforcement of the rule of law, and in its competent and just regulatory oversight of any commodities markets that may reform. So long as the government remains criminal, it would serve no purpose whatsoever to attempt to rebuild the futures industry or my firm, because in a lawless environment, the same thievery and fraud would simply happen again, and the criminals would go unpunished, sheltered by the criminal oligarchy.

To my clients, who literally TO THE MAN agreed with my assessment of the situation, and were relieved to be exiting the markets, and many whom I now suspect stayed in the markets as long as they did only out of personal loyalty to me, I can only say thank you for the honor and pleasure of serving you over these last years, with some of my clients having been with me for over twelve years. I will continue to blog at Barnhardt.biz, which will be subtly re-skinned soon, and will continue my cattle marketing consultation business. I will still be here in the office, answering my phones, with the same phone numbers. Alas, my retirement came a few years earlier than I had anticipated, but there was no possible way to continue given the inevitability of the collapse of the global financial markets, the overthrow of our government, and the resulting collapse in the rule of law.

As for me, I can only echo the words of David:

“This is the Lord’s doing; and it is wonderful in our eyes.”

With Best Regards-
Ann Barnhardt

The ever controversial Minster Farrakhan, speaks out…..