After having looted the American investor for six years, Wall
Street is taking a breather and is consolidating their
ill-gotten wealth. At Goldman Sachs and Citigroup it seems
they have constructed a conveyor belt that runs from
Washington to their offices and over to 68th street to the
Council on Foreign Relations. As of late, the CFR Sherpas are
also making several appearances a day on CNBC and other
TV venues. The latest to hop on the belt is Stephen Friedman
from Goldman who is now head of the National Economic
Council. Almost simultaneously, Nicholas Cabo left
Washington as Mr. Bush’s chief liaison officer to join
Citigroup as its new senior VP of global government affairs,
which means he’s now a messenger between George Bush and
Citigroup management, a glorified errand boy. Michael
Froman, an aide from the Treasury, now heads Citigroup’s
executive committee. Then there is Rich Small, a former
Federal Reserve official, who is in charge of Citigroup’s
anti-money laundering efforts, which of course are
non-existent. Then there is loudmouth Stanley Fischer, former
deputy managing director at the IMF, who is president of
Citigroup’s international operations. As you can see the game
of musical chairs goes on and on. Wall Street interests run
Washington, make no mistake about it and their private,
secret club, the Council on Foreign Relations, is where the
power emanates from.
The People’s Republic of California continues its spiral into
financial oblivion. S&P has lowered the state’s ratings on
$23.5 billion of general obligation bonds to single A from
single A+, while knocking down a series of other obligations
one notch. This came after the incompetent socialist, the gray
one, announced the state’s budget deficit for the next 18
months had expanded to a staggering $34.8 billion from a
previously estimated $21 billion. We ask how can you be so
wrong? It takes a special talent to be that stupid. We chastise
S&P for they should have lowered the paper to junk.
Incidentally, they are not capable of raising that much
money, which means more downgrades are on the way. If you
own California paper such as municipals, sell it. It can only
go lower. On January 10th the governor by law has to present
a balanced budget. We anxiously await this gem. We are sure
his fellow socialists and Marxists will be howling in pain as
he cuts their special projects. The increase in the deficit is
truly stunning. We don’t believe anything like this has ever
happened in the last 100 years. Taxes will climb into the
stratosphere because you know how socialists hate to cut
anything. That will spark another wave of emigration to
other states that are well-run and that are not inundated with
illegal aliens. These illegals have caused state spending to
skyrocket year after year. Mandatory federal programs and
cuts in funds for Medicaid and domestic security are
staggering. Just to show you how idiotic the situation has
become, Mr. Davis’s budget director for the past four years
will resign soon and his replacement is a twenty-year veteran
of the legislature who was instrumental in drafting the state’s
disastrous experiment with energy deregulation. And, it is
important to note he produced and starred in the cult classic
"Attach of the Killer Tomatoes", enough said.
It should be noted that government expenses increased by
36% over the past four years and that in 2000 one-third of
state personal income tax take, a total of $15 billion, came
from only 44,000 taxpayers. The school system is a
mega-financed drain due to the illegal alien inundation. The
state spends $3,000 per pupil for one of the worst results in
the country. Arizona spends $1,800 per pupil and gets much
better results. When former governor Pete Wilson added an
income-tax surcharge, tens of thousands of residents left the
state. We’d imagine the same would happen again, virtually
destroying what is left of the tax base.
Two teaching hospitals in Georgia and Virginia refuse to
vaccinate employee volunteers in line with federal smallpox
defense recommendations. Experts say the way to treat the
disease is surveillance and isolation. Like it or not Mr. Bush’s
attempt at mass medication is over.
As a result of supposedly being fired by Mr. Bush, former
Treasury Secretary O’Neill will receive the Treasury’s
"Alexander Hamilton Award" for unusual accomplishments
and extraordinary service. We imagine he is being rewarded
for rigging the gold market.
As the dollar falters, the administration reaffirmed its
commitment to its strong dollar policy, trying to snuff out
speculation that the new economic team would steadfastly
defend their currency. If you believe that you are naïve.
They’ll go through the motions but the strong dollar game is
over.
Opposition is building up over the USA Patriot Act. Twenty
cities and towns have instructed public employees to defy
federal authorities in implementing the Act. Forty other
municipalities in twenty-four states are contemplating similar
actions.
The VA is downsizing their medical staff and closing beds
and wards for lack of funds, yet we continue to increase
foreign aid. This leaves our veterans in the lurch. What an
unconscionable group of individuals we have in Washington.
A federal judge has ruled that former Enron executives and
lenders, including Citigroup and JP Morgan Chase must face
investor lawsuits seeking $29 billion in damages over the
energy company’s collapse. This means plaintiffs get to
pursue evidence against the defendants, including
confidential bank records. The judge obviously saw evidence,
which led her to believe plaintiffs could win the case. This
decision comes at the same time that Citigroup and JP
Morgan and other banks have agreed to pay $1.4 billion in
fines for defrauding their clients. Andrew Fastow, former
Enron executive, has criminal charges against him for mail
and wire fraud. We don’t understand why the principals at
Citigroup and JP Morgan haven’t been indicted as well.
Nobody goes to jail. Remember that, nobody goes to jail. You
buy your way out. Brokerage firms will pay $1.44 billion to
resolve charges that they defrauded their clients and others. It
is "unclear" how much of the fines will go toward investors.
Citigroup, Goldman Sachs, JP Morgan Chase, Credit Suisse
First Boston, all part of the gold manipulation cartel and
Bear Stearns, Morgan Stanley, Lehman Bros, Deutsche Bank
and UBS Warburg were fined. Merrill Lynch has already
paid $100 million for defrauding its clients. These fines will
not bring to a close one of the darkest chapters in the history
of modern finance. It will only encourage it to happen again.
These firms view these fines as an occupational hazard.
They’ll be back doing the same thing in several months. You
have to understand the beast. We have worked within its
belly for 42 years. No trust has been restored. This black
mark on the industry won’t go away. The settlement is like
telling a bank robber, if he gives the money back, he doesn’t
have to do jail time. Collectively they paid $1.54 billion in
fines. They stole over $100 billion. The fines are chump
change. Our government and regulatory agencies have
virtually let these crooks off free.
The maven of the CFR, Trilateral Commission and the
Bilderburger Group, George Soros, has been convicted of
insider trading and fined $2.2 million by a French court.
George Soros is a crook worth billions of dollars and he is
fined only what he stole and gets no jail time. Again, two sets
of rules, one for us and one for the elitists. There is no
question Soros was guilty. All he was fined was the profit he
made. He could have received, or what we would have
received, two years in prison and four times the amount
earned. This is the same George Soros who betrayed his
fellow Jews in Hungary in 1944. He now is worth $6.9 billion
and the 37th richest man in the world. Malaysian Prime
Minister Mahatha Mohamad called Soros a criminal and he
is a criminal, an arch criminal, and one of the most despicable
people on our planet.
Mr. Bush has run into some formidable opposition to his
smallpox shots. USA Today reports, "an estimated 60 million
Americans with certain medical conditions, relating to
immune suppression, are most likely to develop severe
reactions to the vaccine or 20% of our population." That
means millions of people could die from the vaccine. After the
deaths the victims’ heirs will then discover how little
insurance they’ll receive from the government.
The destruction of Trent Lott was a purge by the elitists who
control both the Republican and Democrat parties. In his
speech Mr. Lott said nothing about race nor did he allude to
it. It was a generic tribute. All that has really happened is
that Mr. Lott has been forced to resign from his majority
leader post but he was forced into endorsing affirmative
action, which has been pushed by the American left for
decades. Mr. Lott was used to make Republicans look like
they really cared for black Americans and thus expected their
votes. Ninety-one percent of black voters vote democrat and
that will never change. Republicans have now established, in
their vote-getting scheme, that they will make sure blacks and
Mexicans will have hiring and college acceptance preferences
over white applicants. This will not get Republicans votes; it
will fan racial antagonism. It will also further destroy the
quality of our education system and hinder our ability to
compete economically. Hiring and acceptance should be
based on merit no matter what one’s color is. Mr. Lott’s
replacement is a liberal, pro-abortion and in favor of the
Bush amnesty program to make 14 million illegal aliens from
Mexico and elsewhere American citizens, rewarding them for
breaking our laws.
A recent L.A. Times poll showed 72% of the people surveyed,
said the president has not provided justification for starting a
war against Iraq, including 60% of Republicans in the
survey.
Forty-one million Americans have no health insurance. That
is 14.6% uninsured in 2001 up from 13% in 1987. Workers
covered by employment health plans dropped from 81% in
the top fifth of wage earners to 68% in the middle fifth to
33% in the lowest fifth. Medical bills are a major factor in
50% of bankruptcies. The US is number one in health care
spending but number 34 in child mortality under age five. If
you wondered why health care is so expensive, the highest
paid health plan executives in 10 companies received average
compensation of $11.7 million in 2000, not counting
unexercised stock options worth tens of millions more.
A current account deficit of $500 billion means foreigners
would have to invest $1.9 billion a day into the US to stave off
financial collapse.
The new chairman of the Senate Foreign Relations
Committee is internationalist Richard Lugar (R-IN). He says
he considers himself a friend of the Bush family. He is an
avowed hawk on Iraq. He recently vocally opposed the
appointment of
Otto Reich, to Latin America. Mr. Reich, a conservative,
anti-Castro advocate, previously came under investigation by
President Reagan but was exonerated. Mr. Lugar replaces
Mr. Helms who was excellent in the post. This is a great loss
for conservatives. Those of you in Indiana should assist Mr.
Lugar in leaving office. He is as bad as it gets. A wolf in
sheep’s clothing.
No jail time, another fraudster gets off the Hook. Jack
Grubman pays $15 million, another slap on the wrist. This
man has destroyed billions of dollars in equity with his fraud
and he gets a paltry fine. Our government disgusts us. Crime
pays in America.
Only in the Peoples Republic of California would the State
Supreme Court consider a proposal that would forbid 1,600
judges in the state to join the Boy Scouts because of its refusal
to accept gays. These liberals and socialists are ripping the
very fabric of our society to pieces.
The Bush administration is planning to propose requiring
Internet service providers to help build a centralized system
to enable broad monitoring of the Internet and potentially,
surveillance of its users. It’s called National Strategy to
Secure Cyberspace. Again the excuse is to defend against
terrorists for Fatherland Security. The system is 10 times
worse than the FBI’s Carnivore.
Now that we know 70% of Americans and 60% of
Republicans want proof that Iraq is lying, we can see the
elitists are having trouble getting their war going. Logic says
you don’t have a war when you have the monumental
economic and financial problems that the US has. The elitists
don’t care about logic; they are only interested in power no
matter what the cost. Besides it’s our children and
grandchildren that are getting killed in some far away desert
or jungle. The war is a cover for economic calamity and a
move to take over Iraqi and Saudi Arabian oil. The war was
supposed to already be underway. Now it looks like its
February, even if there is no proof Iraq has weapons of mass
destruction. The UN will finally approve slaughter and we’ll
get to try our new tactical nuclear weapons. If Mr. Bush has
his way and proceeds we expect gold prices will move up to at
least $400.00 an ounce. During the Gulf War they jumped
$60.00 an ounce, but that was almost 12 years ago and the US
and world economy is far far worse off now than it was then.
Needless to say, in spite of all the propaganda on CNBC and
Bloomberg, the stock market will fall off a cliff. That’s if the
war lasts three to four weeks. If it lasts three months or more
you are looking at an even lower Dow. The elitists are well
aware that they could be starting a world conflagration, from
which none of us may survive. This is destructive madness of
the highest order. The flip side is if a war doesn’t occur then
our masters will in the name of terrorism try to inject us with
vaccine for all the known and unknown diseases since the
dawn of creation. They will also strip us of our freedom.
That’s what the USA Patriot Act and Fatherland Security
are all about. Our government either way will deceive, coerce
and intimidate. There will be a public backlash and it won’t
be nice. The elitists are playing with fire and we can promise
you they are going to get badly burned. |
