P.S. Financial Fraud vs. Financial Coup d’etat

Driving through New Jersey, Nitze [asked] Dillon if he thought the market decline an omen of hard times ahead…. Dillon thought for a few minutes and replied, “ I think it presages the end of an era.” By this Dillon meant that what lay ahead was not merely a period of retrenchment, after which affairs would be conducted as before. Rather, the world was in for a major overhauling of institutions.
– Clarence Dillon and Paul Nitze in 1929

There is a fundamental difference between financial fraud and warfare implemented by financial means – a financial coup d’etat, if you will. For citizens and investors trying to navigate current events and markets, it is well worth pausing to gain perspective on current events and contemplate which type of event we are experiencing.

As I write to close the Scoop Media serialization of “Dillon, Read & Co. Inc. and the Aristocracy of Stock Profits”, the corporate media is unfolding daily revelations regarding the sub-prime mortgage market “crisis” and accelerating decreases in bank liquidity and equity.

In the news today is the announcement that UBS, the Swiss bank that bought Dillon Read, now totals its mortgage market losses at $10 billion. These losses began with write offs earlier this year by its recently launched hedge fund, ironically named Dillon Read Capital Management.

Also in the news are the latest efforts by Andrew Cuomo, now Attorney General of New York, to subpoena Wall Street perpetrators of the mortgage bubble that apparently got under way – depending on the account you read – in 2001 or 2004. We seem to have somehow missed that the criminal mortgage patterns that we are watching has been growing for decades. We seem to be missing the fact that the latest cycle began in 1996 as part of the ‘strong dollar policy” and that Mr. Cuomo and numerous other current players and their organizations were leaders in starting and building the current mortgage markets and losses.

If you step back and view the current events as the latest pump and dump of the US real estate market (like the S&L crisis and others before them), you will shed a different light on the current players and their roles. You will also shed light on the fact that the investment model we are watching is far from new. Indeed, it is quite old and continues to be quite successful for those who know how to exercise it and its many privileges.

“Dillon, Read & Co. Inc and the Aristocracy of Stock Profits” is a case study that describes events in Washington, DC during the second term of the Clinton Administration at the onset of the 'strong dollar policy' and the housing and mortgage bubble.

The strong dollar policy was an organized effort by the Federal Reserve and the US Treasury acting in concert with G-8 to increase the market share of the US dollar as the reserve currency. Simultaneously, significant amounts of capital were moved out of the US into emerging markets. Capital was moved into areas where currency and equity values were low as a result of a series of co-incidental credit crunches.

The combination of a rising dollar and falling currencies in the emerging markets combined with significant emphasis on "privatization" in the emerging markets made it possible for financial equity to "sell high, buy low" as it shifted out of the Western economies into financing a steady centralization of ownership and control of resources and enterprises throughout Eastern Europe, Asia and Latin America.

The strong dollar policy was a financial "stool" that stood on numerous legs:

- A significant relaxation -- and increase in amounts outstanding -- of housing, mortgage and consumer federal and bank credit that significantly increased liquidity in the US and in the Western economies.

- A significant increase in government debt and relaxation of monetary standards to support ever-increasing dead loads.

- The movement of significant capital out of the United States through covert financial movements -- including the pump and dump of the stock market (internet and telecommunication stocks) and $4 trillion missing from the US government accounts facilitated by the bipartisan commitment to refuse to produce audited financial statements by the US Treasury and a willingness of the US Depository, the Federal Reserve Bank of New York and its owners, its member banks, to manage accounts not managed in accordance with the law.

- The steady assumption of critical government functions -- including military -- by private corporations and banks through government contracting and program vehicles.

- Increased intervention in the capital and commodities markets by central banks, including suppression of the gold price, using complex financial instruments, including derivatives.

- Increased use of corporate media and covert mechanisms to diffuse or stifle transparency or overcome legal obstacles to this significant shift of resources into centralized control.

If we step back and observe events as they really are, rather than as we wish them to be, what becomes clear is that we are watching the reengineering of global governance. Resources – including precious metal inventories and powerful intelligence and weaponry-- are being shifted out of the hands of individuals, communities and governments into private hands. Everything from currencies to militaries is now being controlled and managed in non-transparent ways by private corporations and banks.

The bubbling of the mortgage market has been a huge success. Billions have been moved out of the pockets of the middle class and their pension funds and the municipalities. The enabling institutions now have “losses,” hence they need to be “saved” justifying another round of funding paid for by both government taxes and an inflation tax. No one is asking where the money went and how to get it back. Rather we are anointing the people who engineered the bubble in the first place to now “clean it up.”

Where this goes, no one knows. We know the point of financial coup d’etat is one world currency and one world government – global feudalism, if you will.

However, as a small group of Americans reminded us several centuries ago, our freedom comes to us by divine authority. Governments come and go – but our thirst for freedom is enduring and may be a tad more difficult to control despite all the latest advances in digital technology and black budget weaponry. One world government sounds simple – it is a lot harder to pull off when the plan is out of the closet and the organizing forces have little beyond force and greed to hold most people in check.

What those who love freedom most need right now is an honest map. The theft of billions in the mortgage market was not a fraud – it was a plan. The success of this plan is unfolding before our eyes. If you wish to understand what is really happening – to your savings, to your community, to your pension fund, to your world -- you should read “Dillon, Read & Co. Inc. and the Aristocracy of Stock Profits” and explore the wealth of supporting documentation.

NOTE:
To help follow current mortgage market events, see the compendium of links, Who’s Who in the Housing & Mortgage Bubble at Catherine’s Blog http://www.solari.com/blog/?p=256

*** Links to the previous 19 parts to the " Dillon Read & Co. Inc. And the Aristocracy of Stock Profits" series follow. ***

Dillon Read & Co. Inc. And the Aristocracy of Stock Profits
Table of Contents

Introduction. Why I Wrote This Story

1. Brady, Bush, Bechtel & "the Boys"

2. A Rothschild Man

3. RJR Nabisco

4. Narco Dollars in the 1980s - Mena, Arkansas; South Central L.A.

5. Leveraged Buyouts

6. A Parting of the Ways

7. "HUD is a Sewer"

8. Dillon's Investment in Cornell

9. Cornell Corrections

10. The Clinton Administration: Progressives for For-Profit Prisons

11. Hamilton Securities Group

12. A Note on Protecting the Brand with Dirty Tricks

13. "You are Going to Prison" - 1996

14. Enforcement Terrorism - 1997

15. Dillon Read - Cashing Out on Cornell

16. Financial Coup d'Etat - 1998

17. Private Banking & the Profitable Liquidation of Every Place

18. Through the Via Dolorosa

Mapping The Real Deal is a column on Scoop supervised by Catherine Austin Fitts. Ms Fitts is the President of Solari, Inc. http://www.solari.com/. Ms. Fitts is the former Assistant Secretary of Housing-Federal Housing Commissioner during the first Bush Administration, a former managing director and member of the board of directors of Dillon Read & Co. Inc. and President of The Hamilton Securities Group, Inc.

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