Archive for August, 2009

Why I Don’t Own Stocks or Bonds

August 20, 2009

Dear Readers,

This is not a “financial blog” but rather an “information blog” – therefore I do not dispense financial advice here.  Instead, I relay information that I feel is important and beneficial to my readers.

I don’t wish to dramatize my insignificant (and blessedly brief) career as a retail stockbroker, or the other work I have done for some of the biggest Wall Street banks, or the time I spent in the employment of THE biggest bank (and swindle operation) of them all.  I merely want to state that I have worked in and around Wall Street for much of my career.  I have hung out with brokers, dealers, pitchmen, and head muckety-mucks.  I understand exactly what makes these people tick……and that is why I do not own a single stock or bond, nor do I participate in a 401k plan.

It is quite simple.  Our financial system is a rigged game, run by criminals.  These criminals don’t wear hoodies and carry blackjacks.  They wear pin-stripe suits and carry briefcases.  And they rob you of much more than a two-bit street thug could ever dream of!

Oh I know full well you *can* make money with stocks, bonds and mutual funds.  I know it *is possible* to score big with hedge funds, derivatives trading, commodity speculation and currency arbitrage.  I know bonds (especially “guaranteed” ones) do give many people a warm fuzzy feeling deep inside.

But I also know that whatever elusive “winnings” you might squeeze from the Wall Street casinos…in the long run you will lose and they will win.  Unless you are an anointed insider, tied into the power-structure -  whatever gains you achieve, when factored against inflation and taxes, doesn’t even come close to the risks you took by trusting your money to psychopathic criminals

For me, *real* wealth = paid-for real estate, gold & silver bullion (never paper bullion!) and certain other tangible goods that I can see, touch, and control.  If you already have all of those things (and no ridiculous car or credit-card or student-loan debt) and are just swimming in piles of income, then knock yourself out, spin the Wall-Street roulette wheel if that floats your boat.  But never fool yourself into thinking you know more than the criminals running the show.

Casinos do not last long if they fleece EVERY customer that walks through the door!  Casinos need a few scattered winners so they will tell their friends about all the money they won at the casino.  This insures a steady stream of suckers.   Casinos love to hang posters of the “big-winners” holding their over-sized cardboard check in the lobbies of their gambling halls.  The average schlub can look up and fantasize that maybe one day they too will get to hold a big cardboard check and grin ear-to-ear while shaking hands with “The Donald.”

It is all a rigged game.  Run by professional criminals.  And I choose not to participate.  I will keep and control what I have, to the best of my ability, thank-you very much.

Just so you know I am not some bitter investor that lost a bundle on the market (indeed, when I *did* participate…I actually made money.  And I was completely out of the market long before it tanked) here is some information I hope you will check out.  It really is amazing.

First up, we have an interview with Max Keiser.  Max Keiser invented a trading system that was purchased by Cantor Fitzgerald.  He is a broadcaster and financial pundit and has an excellent track record of being right.

I have never heard a former Wall Street “insider” rip to shreds the criminal Wall Street players as passionately and completely as Max Keiser does in this interview:

Next up, I offer you a very informative essay.  I hope you will read it.

Everyone needs to do what they feel best with their money and their financial future.  Whatever you decide, I implore you to research for yourself anything you put your money into!  No one will look out for your best interests but yourself.  If you don’t understand something….for goodness sake, don’t throw money at it!  Most importantly, never, ever trust Wall Street and their minions.  Exploit them if you can, but just like a regular casino…the longer you play their game….the better the odds for the house!

Regards,

FoundingFather1776

From The Lew Rockwell.com Blog:

How the New York Stock Exchange really works

Posted by David Kramer on August 19, 2009 08:34 AM

Richard Ney on the Role of the Specialist

“The story is told that after he had been deported to Italy, Lucky Luciano granted an interview in which he described a visit to the floor of the New York Stock Exchange. When the operations of floor specialists had been explained to him, he said, ‘A terrible thing happened. I realized I’d joined the wrong mob’” (1Ney, 8).

It was with these words that Richard Ney began his first of three books on the nature of the New York Stock Exchange. Ney wrote over 20 years ago, a time when a 750 Dow was high and today’s volumes were beyond imagining. Some of his material is dated, and must be read in the light in which it was written. But the main premise of his books is still true: that the specialist exists not to ensure the free and orderly trade of stock in a particular company, but to fatten upon the innocence and ignorance of the small investor.

The New York Stock Exchange is not an auction market (2Ney, 86), though many investors still hold onto that image. It is a rigged market. Volume is an effect of price. Prices are controlled absolutely by the specialists, the ‘market makers’ in individual stocks. It was this discovery that led Mr. Ney to eventually give us small investors a priceless gift: enlightenment.

“Studying the transactions in each stock, I became immediately conscious that, on too many occasion to be a coincidence, a stock would advance from its morning low and then, often during the afternoon, would show an up-tick of a half-point or more on a large block of anywhere from 1,500 to 5,000 or more shares. This transaction seemed to herald a transformation in what was taking place, for immediately thereafter the stock would begin to drop like Newton’s apple. Before I could find out what caused this, another question presented itself: What caused the same thing to happen at the low point in that stock’s decline? For it was also apparent that a block of stock of the same size often appeared on a down-tick of a half-point or more, after which the stock quickly rallied. Together these two facts seemed to give a stock’s pattern continuity. At the end of several days of investigation, I discovered that these transactions at the top and bottom of a stock’s price pattern were for the specialist’s own account. … Clod that I was, I had at last recognized that, although the study of human nature may not be fashionable among economists, it is never out of season” (2Ney, 9).

The specialist is part of a system. First, he is part of that rare fraternity of men who are all specialists in an exchange. It is a small private club, to whose membership one can only be born. The specialists of the Dow 30 exhibit the spirit of ‘all for one, and one for all’. If one of the 30 is having problems, the other 29 wait for him, before they move onto their next agreed upon campaign (2Ney, 172). The rest of the specialists take their lead from watching the Dow 30.

But the system is more extensive and more powerful than just the specialists. The specialists are the heart of the exchange. The exchange, in turn, has practical control of the major corporations, banks, insurance companies, and brokerage houses in this country. These, in turn, influence news reporting and the regulatory agencies.

ADVANTAGES OF BEING A SPECIALIST
The specialist has many advantages, many tools to use to pry dollars from unsuspecting investors and mutual funds. Chief among these advantages is his book. In his book he can see at a glance all the buy and sell orders from the public and the funds. His book tells him of potentially massive sales above and below his current price. This gives him a great advantage when he is trading on his own investment and omnibus accounts.

Because of his book, the specialist sees shifts in trends long before anyone else. This gives him a great advantage. The specialist will buy heavily at the bottom of a slide (at wholesale) then advance prices and sell, at heavy volume, at the peak of the rally (retail). He will then sell short and take prices down. The turning points of a rally will be marked by heavly volume in the Dow 30 (3Ney, 85-89).

When he desires he can even make large block trades without entering them into his book. In this way the public is never made aware of those trades. Should the specialist want to supply a buy or sell order from his own accounts, rather than from public orders on book, he can and will do so (1Ney, 156). Ney cites specific examples when his customers orders were ignored while the specialist completed orders for his own accounts.

When serving as the market maker, the broker’s broker, the specialist trades from his Trading Account, which is to be used to service the needs of the market. However, he also has Investment Accounts (plural). His Segregated Investment Accounts put him directly into competition with every other investor in his stock. The reason for he has segregated investment accounts is that they enable him to convert regular income into long-term capital gains (1Ney, 113).

In addition, he also trades on Omnibus accounts, taking orders from a friendly bank on behalf of friends, family, and himself (1Ney, 58). Although he is not allowed to be both long and short in his Trading account, he can take the opposite stance in his Investment or Omnibus accounts (3Ney, 130).

A Specialist will often not have any shares in his trading or omnibus accounts. If public demand for shares suddenly increases, the Specialist is more than happy to supply those shares to the public by short selling. This, of course, forces the Specialist to take the price down soon thereafter, so that he may cover his short sales at the lower price. Or, the Specialist may sell from his Investment Accounts, establishing a middle or long term high (1Ney, 61), and then take the price down. Whichever strategy he employs, a large public demand for stock ultimately drives the price of that stock down, not up.

Distribution of large amounts of stock can be done from the specialist’s trading account, usually as short sales. The trading account can then be covered by transferring stock from the long-term investment accounts into the trading account (1Ney, 64).

The existence of the specialist’s Investment and Omnibus Accounts is ultimately detrimental to the public. “In a stock with only a small capitalization or floating supply, the segregation of large blocks into long-term investment accounts for the specialist further decreases the supply of the stock available to the public” (1Ney, 61)

The specialist has absolute control over price. He can match the buys with the sells in any way he sees fit. He can raise the price of the stock 3 points in three trades, and open the next day down 5.

The seeming unpredictability of stock prices is due to the fact that prices exist at the whim of the specialist. A stock is only worth what the specialist is willing to pay for it at the moment. The fluctuations you see are, in fact, the evidence of how the specialist is working out his inventory problems to meet his short-term, intermediate-term, and long-term goals (2Ney, 172). The specialist will sometimes ‘leap frog’ his prices up or down, creating a gap. This is done to keep a group of investors from buying or selling at a particular price. ‘Leap Frogs’ show specialist intent.

Ney offers specific examples where specialists opened stocks considerably lower:
August 8, 1967 Chicago and Northwestern Railroad opened down 39 points.
October 21, 1968 one of the preferred stocks of TRW opened down 28 points.
February 4, 1970 Memorex opened down 29 1/2 points (1Ney, 15)

“With $8,000, you can buy $10,000 worth of stock, but with $8,000 in stock, any Stock Exchange member can buy $160,000 worth of stock for his own segregated investment account” (1Ney, 112).

Because most investors have margin accounts, and the margin account agreement allows their brokers to lend their shares, specialists have an unlimited number of shares to borrow and sell short (1Ney, 68).

Margin agreements also allow the broker to use their customer’s shares as collateral without the customer’s knowledge or permission. This practice is fraught with dangers. In November, 1963, the Ira Haupt brokerage firm (NYSE), which dealt in both stocks and commodities was caught unwittingly in a scheme by one of its commodities customers to leverage nonexistent salad oil. The failure wiped out the partners of the firm and left it owing some $37 million in debts. “To compound Haupt’s and the New York Stock Exchange’s problems, it was impossible to return the stock to customers because the stock (held by the brokerage firm for its customers) had been pledged to banks by Haupt” (1Ney, 122).

Margin accounts usually allow the broker to borrow any cash in the account to use for his own purposes at no interest, even to lend back to the customer for margin purchases, at interest (1Ney, 119).

At the bottom of a cycle of a stock, having panicked customers into selling, the brokers and specialist borrow the customers’ money to make their own long-term purchases; using their advantageous margin to acquire large amounts of stock. At the top of the cycle the process is reversed. Customers are paid back their money by the brokers and the specialist selling their shares to customers at a profit. The insiders even have extra cash to loan customers for margin purchases (1Ney, 136).

Another powerful tool for the specialist is the short sale. Though the specialist is responsible for 85 percent of the short selling done in a stock, the Exchanges are loathe to print any timely data on specialist short sales (2Ney, 94)(3Ney, 234). The specialist uses the short sale to control both downward and upward movements of stock (3Ney, 88).

The private investor or mutual fund can only sell short on an up- tick. The up-tick rules serves only to trap the public into selling short at the bottom, as the specialist drives the price down without a single up-tick for the public’s use (1Ney, 72). But the specialist need not even create an up-tick to sell short. The SEC has been careful not to publicize its rule 10a-1(d), in which sub-paragraphs (1) through (9) exempt the specialist from the up-tick rule (2Ney, 97)(3Ney, 126, 215).

The Securities Exchange Act of 1934 prohibits pegging, the act of artificially holding a stock’s price at a certain level for the advantage of the person or persons doing the pegging. However, SEC rule X-9A6 (1940) allows pegging by specialists in order to ‘maintain an orderly market’ while a large-block distribution of shares is taking place (2Ney, 117).

THE CORPORATION, THE SPECIALIST, AND THE EXCHANGE
The specialists and brokers hold shares “in street name” for investors, and therefore can vote the proxies for those shares. Officers in a corporation must report to the SEC any trading they do in the shares of their own company. Yet the Specialist reports his profits in trading the shares in that same corporation to no one (1Ney, 54-55).

The specialist, one of his partners, a friendly broker, their lawyers, or their bankers, often sit on the company’s board of directors, which makes the specialist privy to information before the average trader. Where an officer of a corporation is held strictly accountable to the SEC for his use of ‘inside information’, the specialist and fellow brokers are accountable to no one (1Ney, 54-55).

“It is an ideal situation. When you control a corporation’s proxies, everyone is sympathetic to your point of view and your choice of directors. This is the other reason why nearly every major corporation listed with the Exchange (NYSE, M.T.) has a broker or a broker’s banker on its board. It gives the exchange a pipeline to that corporation” (1Ney, 90).

Large brokerage houses, large banks, and the New York Stock exchange use dummy corporations as fronts to hold large portions of stocks in corporations. A list from any large corporation of its largest stockholders will be a roll of these very dummy corporations, who show up on list after list of major stock holders in America’s largest corporations (2Ney, 19-23).

The intertwining of interests runs even deeper when the relations of Wall Steet’s top Law firms are examined. For example, in 1974 the New York Stock Exchange’s legal counsel also represented Chase Manhattan Bank. Both entities, through their dummy corporations, were large stockholders in scores of major U.S. corporations (2Ney, 26).

THE EXCHANGE, THE SEC, THE FEDERAL RESERVE, AND THE WHITE HOUSE

“The bankers’ man, Senator Carter Glass, who steered the Federal Reserve Act through Congress in 1913, had maintained that the Federal Reserve banks would be merely ‘lenders of money.’ The only collateral they were to accept was notes that could be paid when, in the course of business, goods and services had been manufactured and distributed. However, almost from the day of its inception, the Federal Reserve System set about making loans on common stocks” (1Ney, 103).

Who sits on the Federal Reserve Board? … Chief officers of banks and corporations, all of whose companies are controlled by the Exchange (1Ney, 103-105).

Billions, perhaps trillions of dollars worth of stocks are now held by banks as collateral for loans. This too works to the advantage of the specialists. For, to protect their interests, banks will issue stop orders to sell the stock before it falls below a certain price. The specialist holds those stop orders in his book and therefore knows exactly where a large number of shares can be had, and at what price they can be purchased. One quick sweep down those ranges of prices will deliver to the specialist the inventory he desires for short and mid-term purposes (1Ney, 101).

On June 30, 1934 President Roosevelt appointed Joseph Kennedy to be the first Chairman of the SEC. Only 4 months before, Kennedy, along with Mason Day, Harry Sinclair, Elisha Walker, and others were found to be responsible for operating ‘pools’ that were actively manipulating stock. When these, “poolsters withdrew and the boom collapsed the administration denounced the men who operated them” (1Ney, 215). But what’s a little denouncement between friends?

The stock markets had been headed downhill since December of 1968. On May 26, 1969 a party was held at the Nixon White House. In attendance were John Mitchell, Maurice Stans, Peter Flannigan, thirty five guests from Wall Street, fourteen industrialists, seven bankers, five heads of mutual and pension funds, and two heads of insurance companies. The next day a bull rally began on Wall Street. May 27th saw the Dow Jones 30 average rise by 5 per cent in one day (2Ney, 71).

On April 17, 1971, President Nixon, who along with Attorney General Mitchell had been a Wall Street lawyer (Maurice Stans was a broker), appeared for photographs with friends from the New York Stock Exchange. Nixon recommended the public to invest in the market. By April 28th the market was in a steep decline. Nixon circulated, “to 1,300 editors, editorial writers, broadcast news directors, and Washington bureau chiefs a list of the stocks of ten corporations that had advanced during the past year” (2Ney, 32).

There is a revolving door between the exchange and Washington. SEC Chairmen ‘retire’ to go to work for the Exchanges or major brokerage houses at many times their government salaries (2Ney, 50-63). SEC Chairman Hamer Budge was found by Senator Proxmire’s investigation to be making frequent trips to Minneapolis to confer with officials of IDS. IDS was under investigation at the time by the SEC. After leaving the SEC, Budge took the position of Chairman of the Board with IDS (2Ney, 56).

NEWS AND FINANCIAL REPORTING
It is highly unlikely that we will see news reports critical of U.S. stock exchanges, or of the specialist system. There is a simple reason for this. All news organizations are corporations and do but reflect their management’s views. Corporations that own media have specialists influencing the choice of management. Newspapers, magazines, and television are but extensions of the corporate world.

When Richard Ney’s first book, The Wall Street Jungle, came out it was on the New York Times best seller list for 11 months. Yet the New York Times would not review it. The Wall Street Journal refused to take an ad from a New York bookstore that featured The Wall Street Jungle (2Ney, 30).

All three of the major networks were wary of having Ney appear. NBC banned only two people from appearing on the Tonight show with Johnny Carson: Ralph Nader and Richard Ney. Not only do large banks, brokerage firms, and corporations advertise on television, they also are the largest stock holders (2Ney, 33- 34).

SPECIALIST STRATEGY
The specialist should be thought of as a merchant with some rather unique inventory problems and opportunities. His goal, always, is to buy at wholesale prices and to sell at retail. This applies to his actions in the course of trading day as well as a year of trading.

At the bottom of a slide the specialist will buy heavily for his trading, investment, and omnibus accounts. His goal then becomes to raise the price of his stock with his wholesale inventory intact. In practice, though, he may have to sell shares to meet public demand. This will cause him, then, to lower the price to re-accumulate his inventory before he can proceed to higher levels.

A rally begins while the price of the average stock is still falling. “Major rallies begin and end with the unexpected,” (3Ney, 184).

To stimulate public demand for his stock, near the high the specialist will raise the angle of the rising prices dramatically for the stock. True to one of Ney’s axioms that prices beget volume, the public will rush into the market place at the rally high. The specialist can now sell his accumulated inventory to fill the increased demand. Heavy Dow 30 volume at the high is evidence of heavy short sales by the specialists (3Ney, 113).

When the specialist has sold all his inventory, and has sold short, he will then begin a downward slide of prices so necessary to his plans. Slides are a mirror of rallies. Near the bottom, the specialist will increase the angle of price decline, alarming investors, scaring them into selling their shares to the specialist who needs them to cover his short sales, and to build a new inventory at wholesale. The media will remain bullish, or cautiously optimistic throughout a slide, until the last two weeks, when they will turn suddenly bearish (3Ney, 158).

TIPS FROM RICHARD NEY:
Specialists in the most active stocks will require more time than their fellow specialists to move stocks up or down, or to cover at the top of a rally or the bottom of a slide (2Ney, 84-85).

Specialists may use a rally as a ’stalking horse’ for a later rally. Price is used like a geiger counter to locate volume (3Ney, 149).

During the typical bear market, or slide, the specialists will usually bring prices up on Fridays, to keep investors hopes alive (2Ney, 92).

Leaders of the rally in the Dow 30 will often act as ’screens’ for the price declines of the other 24 or 25 Dow stocks.

Each stock exhibits its own distinct pattern or rhythm of price behavior (2Ney, 189).

THINGS OF WHICH TO BE AWARE
How can you spot the nadir of each high and low? Ney says to look at volume very closely. In particular look at the volume of the individual Dow 30 Industrial stocks (2Ney, 171). Get to know these specialists’ habits. Follow what they do. Patterns of behavior will emerge.

Ney emphasized that a sense of timing was critical for survival in the market (2Ney, 149).

Ney was convinced that detecting Specialist short selling was a key. Specialist short selling at the peak of a rally should be detectable through increased volume.

Richard Ney used charts extensively. Ney was quick to point out that what is really being measured in his charts is not the behavior of the masses in the marketplace, but the techniques of the specialist in an individual stock as he maneuvers to solve short-term, intermediate-term, and long-term inventory problems (1NEY, 259).

Ney points to the gaps in prices that develop when a specialist is trying to ‘catch up’ with the market. These gaps, be they up or down, signal specialist intent (2Ney, 172).

“Investors assume that what happens in the economy or to the corporation in terms of earnings or sales determines the trend of stock prices. … The most misleading element in this type of analysis is that it ignores the basic needs and motivations of the specialist system” (2Ney, 150).

We, as consumers react to certain critical numbers. Specialists know this. Specialists use the 10’s (10, 20, 30, etc.) and 5’s (5, 15, 25, etc.) in their strategies. They will use these numbers to elicit heavier buying or selling from the public. Often too, though, they will avoid critical numbers to avoid buying or selling stock when they do not wish to do so (2Ney, 155-156 & 163).

NEY’S SMALL INVESTOR TRADING RECOMMENDATIONS (1Ney, 297-301)
1. Do not buy the acknowledged leader in a field. Buy the number 2 or 3 company. These companies are more likely to be subject to bull raids by the specialists (1Ney, 298).
2. “Nothing puzzles me more than an investor’s willingness to pay more than fifty dollars a share for stocks. Buy low priced stocks. It’s percentages you’re after and you’ll get them in these stocks in a bull market” (1Ney, 298).
3. Invest only in stocks listed on the NYSE.
4. Do not buy secondary offerings from your broker.
5. Buy only stocks whose prices have fallen at least 35 to 50 percent.
6. “The rule, ‘Cut your losses and let your profits ride,’ was invented by a broker” (1Ney, 298).
7. The average investor need not worry about tax brackets, so do not hesitate to sell at a profit. “A short-term gain is better than a long-term loss” (1Ney, 299).
8. Own your stock. Do not use margin.
9. Do not sell short.
10. Do not allow your stock to be borrowed (via a margin account; M.T.)
11. Credit balances should be immediately transferred to your bank.
12. Do not leave your stock with your broker in street name.
13. Invest only in growth oriented, not income, stocks.
14. 4 to 5 stocks in a portfolio is plenty.
15. Make arrangements with your bank to receive your stock.
16. If there has been a major advance from the summer lows, look for the public to begin selling 6 months hence.
17. Big block sales at the end of a run-up (usually marked by heavy volume) marks the imminent decline in price.
18. Look for bull raids in May, up from the April 15th tax low.
19. Never enter stop or limit orders.
20. If you are interested in a stock, learn its specialist’s habits.
21. Stocks that are ideal for bull raids are those that decline as close as possible to an angle of 45 degrees.

Works Cited:
1Ney, Richard. THE WALL STREET JUNGLE, fifth printing. New York: Grove Press, Inc., 1970.
2Ney, Richard. THE WALL STREET GANG, third printing. New York: Praeger Publishers, Inc., 1974.
3Ney, Richard. MAKING IT IN THE MARKET. New York: McGraw-Hill, 1975

[The source for this essay is here. I posted my version of the entire essay because I edited out comments that the author Michael Templain made that I disagreed with, i.e., I felt he didn't grasp fully what Ney had written. You can read the original essay for yourself in order to make up your own mind. If you decide to read the books, read them in chronological order. They are impossible to find in a library, and are very expensive to buy used.]

http://www.lewrockwell.com/blog/

The Truthiest Truth You Will Ever Read….

August 2, 2009

FoundingFather1776 says:

I humbly ask all my readers to PLEASE READ this extremely important article from James Perloff!  This article should prove to you once and for all that the false “Left vs. Right” or “Republican vs. Democrat” paradigm most people operate under is a load of baloney!

We are collectively being played like a fiddle.  Arguing about front-man puppets like Bush or Obama plays right into the hands of the Globalists.

This article, although lengthy, is vitally important.  If you don’t understand how your enemy operates, you will never be able to defeat him.

Please read this article and watch the videos.  Even better – check into the information yourself.  Every statement Mr. Perloff makes is factually correct When you are done, Please forward this to the people on your email list.  It will take a majority of people, fully awake and aware, to break the grip of the CFR and their money-master bosses.

Yours in Liberty,

FoundingFather1776

(Johnny Silver Bear of www.Silverbearcafe.com originally published this article.  He notes: “Just as it is imperative that every American Citizen understands that the Federal Reserve is neither Federal or has any reserves, and that it is the sole cause of all this country’s economic woes, it is equally important that we understand who the puppet masters are. The puppet masters control the Federal Reserve, U.S. House of Representatives, The U.S. Senate, the Executive Branch, the Judicial Branch and Wall Street. The lackeys they have working for them (which includes everyone from the President on down…) are simply shills in a bigger arena. The council on Foreign Relations is the American Arm of the “Darkside” which is presided over by the perps (the Bilderbergers, Trilateralists, etc.) who answer to those who control the Bank of England. Knowing who your enemies are will go a long way towards providing for your financial survival.” – JSB)

Council On Foreign Relations

Article by James Perloff

During his presidential campaign, Barack Obama consistently promised Americans “change.” Such promises aren’t new to the voting public.

When Jimmy Carter ran for president, he said: “The people of this country know from bitter experience that we are not going to get … changes merely by shifting around the same group of insiders.” And top Carter aide Hamilton Jordan promised: “If, after the inauguration, you find a Cy Vance as Secretary of State and Zbigniew Brzezinski as head of National Security, then I would say we failed. And I’d quit.” Yet Carter selected Vance as Secretary of State and Brzezinski as National Security Adviser; the “same group of insiders” had been shifted around; and Jordan did not quit.

Carter’s administration was dominated by members of the Trilateral Commission, which had been founded by Brzezinski and David Rockefeller. In 1980, when Ronald Reagan was campaigning against Carter, he protested:

I don’t believe that the Trilateral Commission is a conspiratorial group, but I do think its interests are devoted to international banking, multinational corporations, and so forth. I don’t think that any Administration of the U.S. Government should have the top nineteen positions filled by people from any one group or organization representing one viewpoint. No, I would go in a different direction.

Yet after his election, President Reagan picked 10 Trilateralists for his transition team, and included in his administration such Trilateralists as Vice President George Bush, Defense Secretary Caspar Weinberger, U.S. Trade Representative William Brock, and Fed Chairman Paul Volcker. Yet the entire North American membership of the Trilateral Commission has never numbered much over 100.

The reason that presidential candidates’ promises of “change” go largely unfulfilled once in office: they draw their top personnel from the same establishment groups – of which the Trilateral Commission is only one.

Chief among these groups is the Council on Foreign Relations (CFR), the most visible manifestation of what some have called the American establishment. Members of the council have dominated the administrations of every president since Franklin D. Roosevelt, at the cabinet and sub-cabinet level. It does not matter whether the president is a Democrat or Republican. As we will later see, Barack Obama is no exception to CFR influence.

Power Behind the Throne

In theory, America’s government is supposed to be “of the people, by the people, for the people.” While this concept rang true in early America, and many individuals still trust in it, the last century has seen the reality of power increasingly shift from the people to an establishment rooted in banking, Wall Street, and powerful multinational corporations. Syndicated columnist Edith Kermit Roosevelt, granddaughter of Teddy Roosevelt, explained:

The word “Establishment” is a general term for the power elite in international finance, business, the professions and government, largely from the northeast, who wield most of the power regardless of who is in the White House. Most people are unaware of the existence of this “legitimate Mafia.” Yet the power of the Establishment makes itself felt from the professor who seeks a foundation grant, to the candidate for a cabinet post or State Department job. It affects the nation’s policies in almost every area.

Roosevelt added that this group’s goal is “a One World Socialist state governed by ‘experts’ like themselves.”

David Rockefeller, the longtime chairman (and now chairman emeritus) of the CFR, acknowledged the role of the establishment in trying to lead America in the one-world direction in his 2002 book Memoirs:


Two major means the establishment employs for controlling government policy: (1) through its influence within the two major parties and the mass media, it can usually assure that both the Republican and Democratic presidential candidates will be its own hand-picked men; (2) by stacking presidential cabinets with CFR members at key positions – especially those involving defense, finance, foreign policy, and national security – it can assure that America will move in the direction it wants. Since the council’s founding in 1921, 21 secretaries of defense or war, 19 secretaries of the treasury, 17 secretaries of state, and 15 CIA directors have hailed from the Council on Foreign Relations.

Background

Prior to the CFR’s founding, what Congressman Charles Lindbergh, Sr. (the father of the famous aviator) called the “Money Trust” – a cabal of international bankers including the houses of Rockefeller, Morgan, and Rothschild – conspired to create the Federal Reserve System. Their agents, such as Paul Warburg and Benjamin Strong, who had secretly planned the Fed at a nine-day meeting on Jekyll Island, were then put in charge of the system itself. This gave them control of American interest rates, and, by virtue of this, control of the stock market, as well as the capacity to have the U.S. government spend without limit by having the Fed create money from nothing. The result has been decades of inflation and skyrocketing national debt. (For full details, see the April 13, 2009 New American or www.thenewamerican.com/history/american/946.)

Not just an accumulation of wealth, but a consolidation of political power was involved. The Money Trust had backed Woodrow Wilson in the presidential elections, and then controlled him through their front man, Edward Mandell House, who lived in the White House. The trust recognized how the power of government could be used to advance their own interests.

Wilson, surrounded by the bankers, traveled to the Paris Peace Conference of 1919, which was settling the aftermath of World War I. His chief proposal there, of course, was the League of Nations – a first step toward world government. However, although the League was established by the Versailles Treaty, the United States did not join because the Senate refused to ratify the treaty.

In response to this rejection, the bankers’ circle, still in Paris, held a series of meetings and proposed to establish a new organization in the United States, whose purpose would be to lead America into the League. This organization was incorporated in New York City two years later as the Council on Foreign Relations.

Architects of a New World Order

The CFR’s goal was formation of an incrementally stronger world government. Admiral Chester Ward, former Judge Advocate of the U.S. Navy, was a CFR member for 16 years before resigning in disgust. He stated: “The main purpose of the Council on Foreign Relations is promoting the disarmament of U.S. sovereignty and national independence, and submergence into an all-powerful one-world government.”

After World War II, the League’s successor, the United Nations, was born. Contrary to what the public is commonly told, the UN was not founded by nations who had tired of war. The UN was conceived by a group of CFR members in the State Department calling themselves the Informal Agenda Group. They drafted the original proposal for the UN, and secured the approval of President Roosevelt, who then made establishing the UN his highest postwar priority. When the UN held its founding meeting in San Francisco in 1945, 47 of the American delegates were CFR members.

Though the UN was not initially set up as a world government, the intent was that it would develop into one over time. John Foster Dulles (CFR), an American delegate to the UN founding meeting who later became Secretary of State under Eisenhower, acknowledged as much in his book War or Peace: “The United Nations represents not a final stage in the development of world order, but only a primitive stage. Therefore its primary task is to create the conditions which will make possible a more highly developed organization.”

Two other postwar institutions, the World Bank and International Monetary Fund, were technically created at the 1944 Bretton Woods Conference. But the initial planning was done by the CFR’s Economic and Finance Group, part of their wartime War and Peace Studies Project. The World Bank and IMF act as a loan-guarantee scheme for multinational banks. When a loan to a foreign country goes awry, the World Bank and IMF step in with taxpayer money, ensuring that the private banks continue to receive interest payments. Furthermore, the World Bank and IMF dictate conditions to the countries receiving bailouts, thus giving the bankers a measure of political control over indebted nations.

Despite what Americans were told, the postwar Marshall Plan was not invented by General George Marshall, though he did announce it in a 1947 Harvard commencement speech. The Marshall Plan was dreamed up at a CFR study group with David Rockefeller as its secretary. Marshall was simply selected to announce the plan because, as a general, he would be perceived as politically neutral and help garner bipartisan congressional support for the plan. Unknown to the public, Marshall Plan funds were circuitously rerouted by John J. McCloy – appointed U.S. High Commissioner to Germany – to Jean Monnet, founder of the Common Market, which evolved into today’s European Union, a microcosm of world government. McCloy returned home to become chairman of the Council on Foreign Relations in 1953.

The tragic Vietnam War was run almost entirely by CFR members. William P. Bundy (CFR) drafted the Tonkin Gulf Resolution before the now-discredited Tonkin Gulf Incident even took place. Bundy’s father-in-law, Dean Acheson (CFR), as leader of a senior team of advisers nicknamed “the Wise Men,” persuaded Lyndon Baines Johnson to dramatically escalate the war beginning in 1965. And Secretary of Defense Robert McNamara (CFR) helped develop the “rules of engagement” (e.g., preventing the Air Force from attacking critical targets) that guaranteed the war’s disastrous prolongation. This generated a huge slide to the left among American college students. When Bundy left the State Department, David Rockefeller appointed him editor of the CFR’s journal Foreign Affairs. And McNamara, one of the leading architects of the Vietnam War debacle, became president of the World Bank.

Broadening the Scheme

The CFR is not a uniquely American phenomenon. It has counterpart organizations throughout the world – e.g., the Royal Institute of International Affairs in England, the French Institute of International Relations, etc.

To help coordinate policy on an international scale, CFR chairman David Rockefeller and Zbigniew Brzezinski founded the Trilateral Commission in 1973. “Trilateral” refers to the coordination of three global regions: North America, Europe, and Asia. The commission’s meetings allow the gathering together of heads of state, banks, multinational corporations, and media. Republican Senator Barry Goldwater called the commission “David Rockefeller’s newest cabal,” and said, “It is intended to be the vehicle for multinational consolidation of the commercial and banking interests by seizing control of the political government of the United States.” The commission, like the annual secretive meetings of the Bilderbergers and the notorious Bohemian Grove, enables the international power elite to privately assemble and plan our destiny.

(Editor’s Note: Here is a link to a free online pdf version of Brezezinski’s book “The Grand Chessboard” and some additional background information on this New World Order scumbag:

http://www.takeoverworld.info/grandchessboard.html

Jimmy Carter was a member of the commission, hand-picked to be president after meeting with Brzezinski and Rockefeller at the latter’s Tarrytown, New York, estate. Carter filled his administration with CFR members and Trilateralists. Indeed, Brzezinski noted in his memoirs that “all the key foreign policy decision makers of the Carter Administration had previously served in the Trilateral Commission.” Carter then embarked on a destructive course of foreign policy that included betraying the Shah of Iran, leading to the installment of Ayatollah Khomeini and the U.S. hostage crisis; betraying President Anastasio Somoza of Nicaragua, resulting in a Marxist dictatorship under the Sandinistas; and betraying Taiwan in order to recognize Communist China – a move previously set up by Richard Nixon’s overtures to China, dictated by his own CFR advisers.

Under Bill Clinton (a CFR member who selected 12 CFR members for his cabinet), the United States enacted NAFTA, an economic alliance with Mexico and Canada. This arrangement was created by the establishment, not by the American people, who did not suspect the game being played on them. Not only did NAFTA swamp us with cheap, job-destroying imports, but it was designed to be the foundation for a continental economic union leading to political union. Robert Pastor (CFR), a key architect of North American integration, acknowledged in the January/February 2004 issue of Foreign Affairs: “NAFTA was merely the first draft of an economic constitution for North America.” And Andrew Reding of the World Policy Institute said: “NAFTA will signal the formation, however tentatively, of a new political unit – North America. With economic integration will come political integration. By whatever name, this is an incipient form of international government. Following the lead of the Europeans, North Americans should begin considering formation of a continental parliament.” [Emphasis added.]

A similar stratagem had been used against the peoples of Europe – by first deceptively hooking them into an “economic” alliance called the Common Market, which then, requiring common laws to regulate trade, transformed via a series of steps into the European Union, the super-national government of Europe that is swallowing up national sovereignty.

Following the initial step enacted under Clinton, President George W. Bush, whose father was a CFR director, moved toward politicizing the NAFTA alliance. On March 23, 2005, he met Mexican President Vicente Fox and Canadian Prime Minister Paul Martin to launch the Security and Prosperity Partnership (SPP), the rudiments of a North American Union. CNN’s Lou Dobbs said of it: “President Bush signed a formal agreement that will end the United States as we know it.”

Furthermore, regional alliances such as the European Union and proposed North American Union are not ends, but only steppingstones to world government. As CFR/Trilateralist Zbigniew Brzezinski stated: “We cannot leap into world government in one quick step. The precondition for genuine globalization is progressive regionalization.”

In furtherance of this, on April 30, 2007, President Bush stood at the White House beside Angela Merkel, president of the European Council, and José Manuel Barroso, president of the European Commission, and announced the signing of a new agreement to “strengthen transatlantic economic integration.” It called for “joint work in the areas of regulatory cooperation, financial markets, trade and transport security, innovation and technological development, intellectual property rights, energy, investment, competition, services, and government procurement,” and various other steps toward economic integration. But as usual, “economic integration” is the predecessor of political integration. CFR members have dreamed of a political union between the United States and Europe since the 1950s, when the CFR-dominated Atlantic Union Committee promoted a merger they called “Atlantica.”

Enter Obama

Candidate Barack Obama revealed he would proceed with the Bush initiatives. In a speech in Berlin on July 24, 2008, he stated:

That is why the greatest danger of all is to allow new walls to divide us from one another. The walls between old allies on either side of the Atlantic cannot stand. The walls between the countries with the most and those with the least cannot stand. The walls between races and tribes; natives and immigrants; Christian and Muslim and Jew cannot stand. These now are the walls we must tear down…. Yes, there have been differences between America and Europe. No doubt, there will be differences in the future. But the burdens of global citizenship continue to bind us together…. In this new century, Americans and Europeans alike will be required to do more – not less. Partnership and cooperation among nations is not a choice; it is the one way, the only way, to protect our common security and advance our common humanity.

Obama had only been president for a little over two months when he traveled to Europe for a series of meetings with European leaders. He attended the G20 Summit, which ended with a tentative agreement to launch a new global financial system, using as the rationale for this major step toward global government the recent Fed- and government-spawned financial meltdown.

Henry Kissinger – foreign policy mouthpiece of the establishment for four decades – wrote an article for the January 12, 2009 issue of the International Herald Tribune entitled “The Chance for a New World Order.” He stated:

As the new U.S. administration prepares to take office amid grave financial and international crises, it may seem counterintuitive to argue that the very unsettled nature of the international system generates a unique opportunity for creative diplomacy….

Even the most affluent countries will confront shrinking resources. Each will have to redefine its national priorities. An international order will emerge if a system of compatible priorities comes into being….

The alternative to a new international order is chaos.

Kissinger also stated on CNBC’s “Squawk on the Street”: “The president-elect is coming into office at a moment when there is upheaval in many parts of the world simultaneously…. His task will be to develop an overall strategy for America in this period when, really, a new world order can be created. It’s a great opportunity, it isn’t just a crisis.”

Past statements reveal that the establishment wants a single currency for the world, just as the EU has consolidated its currencies into the “euro.” As far back as the 1944 Bretton Woods Conference, John Maynard Keynes proposed a world currency he dubbed bancor. Richard L. Gardner (CFR) wrote in the Fall 1984 Foreign Affairs: “I suggest a radical alternative scheme for the next century: the creation of common currency for all the industrial democracies and a joint Bank of Issue to determine that Monetary Policy.”

In March of this year, Obama and British Prime Minister Gordon Brown met with reporters at the White House. Brown announced that “there is the possibility in the next few months of a global new deal that will involve all the countries of the world in sorting out and cleaning up the banking system.” Obama added that

Globalization can be an enormous force for good…. But what is also true is … we still have a 1930s regulatory system in place in most countries designed from the last great crisis, that we’ve got to update our institutions, our regulatory frameworks, so that the power of globalization is channeled for the benefit of ordinary men and women.

If trends continue, however, the changes can be expected to benefit a tiny handful of the global elite, not “ordinary men and women.” Further evidence that Obama’s administration will simply continue the globalist agenda is indicated by his appointments.

CFR Domination Continues

During his campaign, Obama selected the ubiquitous Zbigniew Brzezinski (CFR), promoter of the “regional” approach to world government, as one of his top foreign policy advisors. Obama called Brzezinski “one of our more outstanding thinkers” and “somebody I have learned an immense amount from.” Presumably Brzezinski’s teachings included the world government he advocates.

For Treasury Secretary, Obama chose Timothy Geithner: Senior Fellow in International Economics at the CFR, Bilderberger, former head of the New York Federal Reserve, and former employee of both the IMF and Kissinger Associates. One doesn’t get more establishment than that! It is Geithner who is managing the bailout of Wall Street with taxpayer dollars. Assisting Geithner at Treasury in overseeing the auto industry bailout is fellow CFR member Stephen Rattner.

For Director of the National Economic Council – a U.S. government agency created by a Bill Clinton executive order – Obama selected Lawrence Summers (CFR, Bilderberger). Former Chief Economist at the World Bank, his last position was at the investment firm of D. E. Shaw & Co, where he earned $5.2 million in one year while working one day per week. Henry Kissinger had said Summers should “be given a White House post in which he was charged with shooting down or fixing bad ideas.”

For Defense Secretary, Obama elected to continue with Bush pick Robert Gates (CFR, Bilderberger). During the Carter administration, Gates served as a special assistant to Zbigniew Brzezinski. In 2004, he co-chaired a CFR Task Force on Iran with Brzezinski, who lauded Gates in Time in 2008. Joining Gates in the Defense Department are fellow CFR members Michele Flournoy (Under Secretary of Defense for Policy), Jeh C. Johnson (Defense Department General Counsel), and Kathleen Hicks (Deputy Under Secretary of Defense for Strategy, Plans and Forces).

For Secretary of State, Obama chose Hillary Clinton, who has attended the top-secret Bilderberger meetings. Hillary is not a CFR member, but husband Bill is, and her State Department is laden with CFR members, including James B. Steinberg (Deputy Secretary of State), William J. Burns (Under Secretary for Political Affairs), Susan Rice (U.S. Ambassador to the UN), Jacob J. Lew (Deputy Secretary of State for Management and Resources), Todd Stern (Special Envoy for Climate Change), and many others.

The Department of Homeland Security, which many Americans fear may turn our country into an Orwellian surveillance society, was conceived before 9/11 by a task force called the U.S. Commission on National Security, nine of whose 12 members belonged to the CFR. The administration of the department under Obama is particularly heavy with CFR members, including Janet Napolitano (Secretary), Jane Holl Lute (Deputy Secretary), Juliette Kayyem (Assistant Secretary, Office of Intergovernmental Programs), and Alan Bersin (Assistant Secretary, Office of International Affairs).

Thus the CFR continues to dominate our government’s key areas: finance, defense, foreign policy, and security. To this may be added various other Obama CFR appointees, such as Mona Sutphen (White House Deputy Chief of Staff), Paul Volcker (Chairman, Economic Recovery Advisory Board), Peter Cowhey, (Senior Counsel, Office of U.S. Trade Representative), and Eric Shinseki (Secretary of Veterans Affairs).

The Future

The idea that Barack Obama became president from a “grass-roots” movement is illusory. American government policy continues to be largely dictated by the rich and the few. This is generally unknown to the public – not because it is a bizarre conspiracy theory, but because the same power elite who run our government, mega-banks, and multinational corporations also run the major media, as an inspection of the CFR membership roster would reveal.

Membership in the CFR, of course, is not an automatic condemnation. A few people are added as “window dressing” to give the group distinction and a veneer of diversity. An example is movie star Angelina Jolie. No one suspects Jolie knows much about foreign affairs or is a conspirator for world government. But within the CFR are hardcore globalists who, linked with their foreign counterparts through the Bilderbergers and Trilateral Commission, head the drive for one-world government.

Though numerically small (less than 1,000 members during the Kennedy years, less than 4,500 today), this organization has dominated every administration for over seven decades.

As long as the CFR controls our government, we can anticipate more of the same: diminishing national sovereignty; free flow of immigration (which confuses national identity and weakens national loyalties); increasing jobs losses through multinational trade agreements; further internationalization of law (Law of the Sea Treaty, Kyoto Protocol, World Court, global taxation, etc.); increasing loss of freedoms in a “surveillance society”; progressive organization of the United States, Mexico, and Canada into a North American Union; and ultimately, broader merger into a world government where all power will be concentrated in the hands of the elite.

Eternal vigilance continues to be the price of freedom.

www.thenewamerican.com

What the hell are they spraying on us? PART 3

August 2, 2009

This is the spot to continue your comments regarding chemtrails and other information of interest.

If you are a new reader and have stumbled across this blog, you might not be sure what we mean by “chemtrails.”  More and more people are looking up in the sky and witnessing strange formations.

I encourage you to read through the information in “What the hell are they spraying on us Parts 1 & 2″ and to also check out the links I have posted under the “Chemtrails” section to the right.  I must warn you, once you see the chemtrails for yourself, and begin to understand what is being done to us, you will never enjoy the bliss of ignorance again.  The good news is that more and more people are waking up, and the powers-that-be that are doing this to us are running out of time.

Here is one site (of many) that has lots of chemtrail information:

http://www.lightwatcher.com/chemtrails/hos.html

From Reader “Sky” we have a video account of the “natural cloud formations” over beautiful Las Vegas:

Remember:

“Every truth passes through three stages before it is recognized: In the first it is ridiculed, in the second it is opposed, in the third it is regarded as self-evident”
Arthur Schopenhauer (German Philosopher, 1788-1860)

Regards,

FoundingFather1776


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