This week, an important online news service released an article that should send shockwaves into our public markets. In very curt form, the article chronicles the many abuses of U.S. public companies by short selling manipulators, particularly through naked short selling and regular and derivative based synthetic shorting. By implication, the article recites the sheer embarrassing ineffectiveness of our regulators, who are engaged in a pattern of systematic conflicts of interest with revolving doors that are a major disgrace to our own government.

Note the following August 23, 2010, article from Live Trading News International:

‘Naked Short Selling Dominates the Markets’

“Naked Short Selling now dominates the OTC markets, having been blamed by most for monument collapses during the financial crisis, the SEC attempted to, but failed to control the process.

“Naked Short Sellers focus in companies they feel are ‘destroyable’ normally this is a company that uses their market to raise capital, the case of many Pink Sheet and OTC businesses, so it is no surprise to see that naked shorting is at an all time high.

“The Naked Short Sellers move in removing any chance of small companies gaining access to any form of reasonable funding by selling the stock short, effectively increasing the float, and using the basic rules of supply and demand changing the very nature of the company’s market and market price.

“Many of the positive runs forward of small companies in the last 6 months have been destroyed by short sellers, when in the past the small companies could have taken advantage of improved market valuation, raised funds and moved their business models to the next level.

“The chances of a small company now making it out of the woods on to a main board are limited at best.

“Naked short selling was clearly the end of great companies like Lehman and Bear Stearns.

“If you have any doubts, you should take a look at websites such as FailsToDeiver (http://failstodeliver.com/).”

And I am not alone in this opinion.

U.S. companies are going to consider leaving the U.S. with the wholesale abuse.

Foreign exchanges with firm 3 day settlement or improved DVP procedures challenging manipulators are going to be rewarded with U.S. listings from U.S. listed companies withdrawing from U.S. markets. The conventional wisdom that only small companies without merit would be challenged has been proven grotesquely false.

If you could know that your purchase and sales would be cleared and settled in real time with no manipulation risk, would you settle for less? If U.S. companies leave the U.S. markets, how far away will it be before U.S. investors do the same? U.S. Courts have ruled that when an investor owns a share of stock, it does not reflect an actual equity ownership interest, but rather nothing more than a securities entitlement. That is the kind of arrogant disgrace that will drive U.S. investors to give up on U.S. brokers and U.S. exchanges.

I have written extensively about the coming crises in clean water, adequate food, and scarce resources in general for several years now. I write this complimentary review of this documentary commending it to your attention as a must watch. This is a coherent story of an attempt by vested interests worldwide to treat fresh potable water as an asset to be controlled and manipulated to the economic benefit of the few. I am diametrically opposed to this idea, and to the abuses of the poor and hungry on such an enormous scale as reflected in this piece.

Major, indeed enormous, multi-national corporations are targeting water worldwide as an asset they can deny to the general population and to the poor in the third world in particular. These companies, employing millions of people in developed countries are enticing the typically corrupt third world governments into onerous and destructive deals in which they buy a natural resource that life is dependent on from conflicted parties. Maybe the most terrifying part of this scandal is that the power, reach and voracious hunger of these “water” companies cannot be satiated.

In story after story in country after country all over the globe, you see these water companies stripping water assets from their rightful citizen owners through cheap deals done with greedy and stupidly corrupt nation states, ranging from literally US counties and states, to the poorest third world micro-states. What you will see are people having their native water resources they depend on for life itself, being taken from them and then sold back to them by State supported monopolies, at prices they can’t afford, and at prices that can’t be justified by the cost to the new broker/processor/intermediary.

Not every country has gone quietly into the night, and they have rebelled forcefully and violently to stop these genocidal crimes. Bolivia’s story is told, wherein the new water company came in saying they would develop new water resources, which would be clean and safe, then re-sell them to the public at a reasonable mark up. What in fact happened is that they took all the water that existed, pushed it through some pumps and took something that had always been free to the people and charged them more than the price of milk or the price of a liter of gasoline for small amounts of water. In Bolivia, this went so far that individual families were told that they could not capture the rain fall from their roofs in a barrel for personal consumption. In 2007, the people rose up and stopped all cooperation with the water monopoly, throwing out the corrupt politicians responsible for the insane deals done against their interests, and truly moving to produce fair supplies of water for all of the people of Bolivia at little or no cost.

Many more such stories are told, all reflecting more of the UN supported corruption in the third world in particular, but also telling stories of manipulation and lies told right here in the US, in Wisconsin, where cottage owners in the backwoods were informed they could no longer use their own wells they had for over 100 years.

I saw this documentary on Sundance Independent film channel, and it is available on Amazon, Netflix, etc. Watch this before it is too later for all of us. If you want to see things change, then become an in their face activist against this theft of a national resource by the worst kind of abusers, who give all enterprise a bad name. Write your Congressmen and Senators (don’t bother with the ones who won’t be re-elected in November), and scream at them. They seem to understand nothing else.

The original Freedom of Information Act (known hereafter as “FOIA”) was passed in 1966 to be effective in 1967, over the strong objections of the President Lyndon Johnson. The intent of the legislation was to improve transparency of the public into the operations of the US Government. It has been amended many times, and with time, the bureaucracy of our Federal Government had made it more and more expensive and time consuming to get anything important out of such requests.

Last week, as part of the Financial Reform Act, the SEC was “exempted” from the requirements of the FOIA. I guess this is more of the vaunted promises of this Administration to give the public greater transparency into the actions of the US Government’s most powerful agencies. The SEC has been an egregious abuser of requests for information made of that agency whether pertaining to civil or criminal matters for decades, the latter which they have previously claimed exemptions for as a federal police agency.

Over the past ten years, the SEC and its partner in crime, the DTCC, have stone-walled very effectively the requests for access to records that could show that others had violated federal laws, or that they themselves were guilty of acting as co-conspirators in the commission of monstrous trillion dollar frauds on the public, banks, hedge funds, investment managers, and more, many times with the support of Congress.  Certainly the most egregious example of this is the conduct of Congressman Barney Frank and Senator Christopher Dodd in protecting grotesque criminality, material misrepresentation, malfeasance and more by Fannie Mae and Freddie Mac, with whom both had inappropriate relationships.

Now the SEC claims that it will only be required to address requests for information from Congress alone, and not from any others. This is shameful, and it negates the original underlying principal of the FOIA. Intended originally to shine a bright light into the darkest corners of our own Government, it has effectively blinded inquiry into this agency and its minions across the Board. This needs to be challenged constitutionally, all the way to the Supreme Court. We no longer have a mature and independent, unbiased media to probe these arrogant mandarins, their revolving doors into and out of the major law firms, major broker dealers, big banks, and other self-regulated organizations including the exchanges, and more. So how will this scum be lighted up?

This come on the heels of stinking deals with Goldman Sachs, Bank of America, and more, in which the SEC settled enormous securities fraud cases for pittance amounts for multi-billion dollar frauds that stripped assets of the American public with US Government cooperation and silence.

I had held out hope that the SEC would be shuttered by the Financial Reform Act, not practical with the lobbying horsepower of SEC Practice Lawyers, Tort Lawyers, and securities industry proto-persons. The SEC shook off these flies like a horse swatting flies from its hindquarters. They will keep laughing all the way to their individual Banks, no exception. And corrupt Congressmen and Senators will continue to engage in material conflicts of interest and self-dealing involving the SEC, FINRA, DTCC, et al, ad infinitum, ad nausea. They sow the very seeds of their own ultimate destruction by other than traditional legal means. May God see them treated the way they have treated others.

Many cases have needed critical information particularly on trading to make their fraud cases against the entities the SEC is mandated to protect. It has been almost impossible to get such information except in a couple of cases, and then only when a Federal District Court Judge issued a subpoena for the needed information. The SEC has made every attempt to make such information as obscure as possible, mixing up the records, omitting key documents, and more. They and their officials should have been jailed for contempt many times, and yet, it has never happened. There is no question a dishonest set of double standards have been applied to protect these appointed officials from being held to the same standards as plaintiffs.

Thousands of companies have been “desaparecido’d” into the black maw of our soiled public markets. Only a handful of these companies’ cases have been able to get to Court to get justice, and only one has ever been allowed to get in front of a Jury. The SEC is clearly terrified of the judgment of a trial jury. They have told so many lies to so many people so many times that they have started to believe their own gags. In the process of their repeated lies, trillions of dollars have been stolen from millions of investors in these thousands of companies, all while those who should have protected us slept well and ate heartily at the trough of the criminal perpetrators.

I am too close to this to have been left unmarked. I will never let a US company go public in our markets, not without yelling and screaming at them. No one company can protect themselves from so many criminals hungry for their perception of their due.

As I have said before, there will be a reckoning here, sooner or later. I like to envision the criminals coming back as 9 legged sea cockroaches. Om Pade Mum.

Since I got out of the Army, I have spent a good part of my career educating non-technical professionals about complex financial products and portfolio strategies. I found many things of interest about the process of doing this effectively, and in particular, it gave me early insights into the value of what I had learned in K through 12, and what this would mean ultimately to online education via computers.

I found early on that my first task had to be to break down the ideas into words that meant something to the audience. Like many technical spaces, the industry adopted the use of professional terms that had to be described meaningfully to potential end users. Indeed, my first great breakthrough occurred when I realized that my industry had lost sight of who the real end client was.

I had noted with interest the efforts of early online educators to use the lessons of teaching mathematics as a guide. I particularly remember the efforts of a Math Professor from the Air Force Academy to develop an integrated line of math teaching school books which put tremendous emphasis on the power of review and repetition in every lesson, beginning with first year Algebra. He was attacked for the repetitive methodology by the mandarins of teaching, who saw his methods to be not true teaching, irrespective of the repeated fact that his students consistently scored much higher on standardized tests than did those not using his textbooks.

I used repetition in my seminars, always reviewing prior lessons and contacts both before and after my lesson plans. I use this even today to explain some concepts to non-technical professionals in finance particularly.

Early on, I became involved with the growing design of the Internet, including the patents and rules used as early as 1982. By 1985, I was working regularly on adopting high level engineering work station computing power to handle complex finance applications in securitization and portfolio management, and also for AI applications. At the same time, I knew that as computing power continued to explode, professionals with skills that didn’t exist then would have to clone themselves at a pretty high rate, or the markets would run into a log jam effect. I saw a very innovative K through 12 educational software developer in Provo, and I led them to an advanced manufacturer of engineering work stations, resulting in a strategic partnership between the two companies.

Skipping forward some years, others acted on the ideas for online education through the graduate school levels, for courses in particular with science and creative foci. Today, there has been an explosion in the power and effectiveness of online educational tools, for student 2 to 70. I have seen the teaching methodology used by the language software company Rosetta Stone used to teach infant and toddlers to read even before they can speak effectively. Some of those children are able to achieve reading skills by the age of 6 years that are the equal of the national average 6th grader, who is typically 11 to 12 years old.

As I noted when I was young, early piano and musical instrument training produced higher IQ’s in huge samples, not of 5 to 10 points, but of 40 points, something that should never be capable of being ignored. Indeed, it was shown that music was both a math and language skill, which magnified the building of neural networks in the brains of children at an incredible rate, matching in many cases the intellectual advantages of children raised using “tonal” ideogram based languages, such as Mandarin Chinese, Thai, Hindi, and more.

An online educational institution started here in Phoenix a couple of decades ago is now the largest educational institution in the US, the University of Phoenix, with over 500,000 students studying material ranging all the way from high school math to post graduate medical and science material.

I know of no major figures who saw this coming at this rate, and I can further state that I know of no one who can challenge the future reach of this technology globally.

How can each of you benefit from this growing adaptation of patterned repetitive reinforcement based teaching?

I would say that from an intense personal experience which certainly spans this country and much of the modern World, we need always emphasize review of prior lessons learned when moving forward with new efforts. As much as 60% of every new lesson should be spent reviewing previously covered material. This pattern process is absolutely able to be characterized by a contrarian view to “It’s different this time.” How? It is never is.

A brilliant Wall Streeter attributed his many years on Wall Street to teaching him this lesson in graphics. He would repeat it like an inverted mantra. He was one not to suffer fools or geniuses lightly, damning both frequently for making the same kinds of errors in logic.

For those of you genuinely interested in helping your family, children, and friends, introduce them to programs such as Your Baby Can Read, or to the learning of a tonal language such as Mandarin via the Rosetta Stone program. These programs use images of objects (the way Mandarin is written) to accelerate the learning and memorization not only of words, but their structure, spelling and meaning. Such teaching methods can wire new neural nets in the brains of those exposed to it, and re-wire old harnesses that have weakened with age, stress or other toxic exposure.

There is the old saying that you only start to die when you stop learning. The good news is you can make it a lot more fun with a much bigger payoff for a lot less effort today, thanks to the visionary work of some great minds many years ago.

That should remind you of the story of how this Country and its values came into being. A very small and highly intelligent group of literati here in the 1700’s came up with an idea for a republic that could survive if it didn’t destroy itself. This handful of no more than 200 men and leaders backed by less than 10% of the population freed this country from the most powerful empire in the World at the time, when every “informed” person in the world would have bet against them, except with their hearts.

I remember one of the key lessons taught in kindergarten was to share. We do that like no country in the world. If you want to see this country survive, you must do the same, and give of your time and your minds to preserve our history. That will only happen if we continue to respect a dynamic learning environment, in which measured results are the only thing that matters significantly. If our population can’t or won’t read, can’t or won’t continue to develop respect for the individual, then we are doomed. Things may already have been done that will kill this country’s vitality and imagination. If so, remember this when you reach out in our next lives. We are blessed.

This week, we saw the Federal Government jam a series of actions down the throats of the American people, the unintended consequences of which can be felt at a visceral level. This Administration seems determined to drive the American people into a series of decisions that they seem unready to make, but for which they are being forced to act whether they are ready or not.

Some of you may be familiar of the story of Reagan taking the Russian Premier to an American grocery store. Shown the immense arrays of products and foods, he left there convinced that Russia could never defeat the United States. In the nineties, the US had a significant influx of Russian and Eastern Satellite country immigrants flow into this country at an unprecedented level. I asked a gifted psychiatrist what their most serious integration problem was and he described the grocery store problem from a different perspective.

These immigrants came from non-free market economies with little or no choice. When they entered the same kind of grocery store we all take of granted, they would freeze up with all the alternatives, literally experiencing a form of decision paralysis. Some could not overcome it, and withdrew to closed family and friend units.

Why do I bring this up? Today, the American people are facing a similar decision paralysis, one leading them into a form of psychosis. Our systems are in breakdown, whether it is out of control Government spending broken by debt and entitlement programs, illegal immigration, staggering crime, a broken legal system, wholesale dishonesty and a breakdown of human courtesy. Add a catastrophe like the Gulf Oil Well break, and what you have is a need for clear thinking and elemental leadership, which appears right now to be non-existent.

Start with basic courtesy. Many years ago, a friend of mine was put into a difficult situation where a casual female acquaintance related to someone he knew as an acquaintance behaved badly in a social situation. She needed a threat to bring another relationship target to heel, and he was the bait without his knowledge. It worked for her. The friend lost a wasted weekend, learned a valuable lesson, but otherwise viewed it as a personal matter, and said nothing to anyone. In a thumbnail sketch of a converse situation, I could describe our political system in similar terms, as I look at the disgraceful trial of Governor Blagojevich, wherein I see a user who has taken to the opposite tack, attempting to taint individuals who were former allies in the open, possibly with less than credible motives.

Our Government seems unable to open its mouth without lying. Living in the State of Arizona, I can tell you we have a crisis created by the Executive Branch unilaterally choosing to selectively fail to enforce crucial immigration laws that are bankrupting the State, while endangering the lives of common citizens. Arizona determined that in order to survive, it needed to pass complimentary legislation to aid the Federal Government in enforcing laws pertaining to illegal immigrants, and it passed a law that was actually more liberal than the Federal Law it was forced to aid. Now the President has actually lied to Senator Kyl, telling him first that there would be no border enforcement support until he got comprehensive immigration reform, which he then denied after Kyl told Arizona voters what was going on. You can choose to assess who the liar is.

Louisiana faces a crisis that could literally destroy it as a functioning economic entity. The Gulf Oil spill threatens not only the core Oil and Gas industries that are the foundation of the State’s economic activity, they also face loss of their two next largest segments, those being fisheries and tourism. Governor Jindal is an astute and honest man in a job not known historically for attracting such people. He saw the spill crisis, and he wanted to move immediately to ameliorate the horrific impact of this careless and irresponsible failure of BP to follow proper safety procedures. He immediately asked to bring in skimmers from other parts of the world, to get immediately to work building sand berms and barriers to limit the spread of the discharged oil from the broken well head, to involve his State’s resources along with those of adjacent States who faced similar catastrophic dangers.

Why did this even occur? The Obama Administration barred drilling in shallow waters in the Gulf, thereby driving the major Oil companies into deep water with attendant risks everyone was aware of. He could have allowed drilling in waters under 500 feet in depth, or in Alaska, or in the Bakken play in Montana, but no, he wanted to begin to shut down access to Oil domestically as part of his environmental agenda, based on worthless science, to drive his big government agenda for a Cap and Trade program that would shatter the American Economy. So how long did it take the Federal government to act?

They did nothing for 9 days, then blocked any State action or foreign help with skimmers or berms for another 8 weeks. Short of a major miracle, the fisheries and tourism industries of Louisiana are dead for 20 or more years, and its oil and gas industry is shut down and permanently crippled for the forseeable future for an ill-conceived political attempt to drive drilling rigs out of the Gulf, to locations elsewhere in the World where it might benefit Soros and other Obama supporters. Oil platforms are expensive to build and maintain, and they can easily cost upwards of $500,000 a day to keep idle. What happens? The Oil companies move them where they can be used now, and America is the loser.

As if this weren’t enough, this Administration would endanger not only our economy, but our basic financial foundation. The Federal Reserve spoke Friday of injecting an additional $5 Trillion dollars of liquidity into the economy, basically devaluing the US dollar by 1/3 in a single move. Obama would have the US dollar trade at parity with the Peso. This is a none too subtle move on the part of the hard left to drive our economy into a meltdown that they can use to expand Federal power, consistent with the Alinsky, Cloward and Piven agenda.

The Group of 8 has expressed their concern with the economic actions of the US with regard to its profligate spending, which has passed the tipping point where it can be reversed without the American people paying a terrible and long drawn out price to re-establish a free market economy.  We now have total debt and unfunded liabilities in excess of $130 Trillion. That cannot be serviced or retired from an economy whose GDP is only $14 Trillion.  Prime Minister Merkel heard the US plea that Europe not stop stimulating its economy, and they firmly slammed Obama for his irresponsible spending here, at a time when they are cutting government spending, reducing benefits, pushing out retirement ages, raising taxes and cutting back health care benefits.

Does anyone get where we are now? We are on the event horizon edge of an economic black hole.

In a stunning move last week, the United Kingdom liquidated its Financial Services Authority (its analog to the US’ Securities and Exchange Commission) with little notice, and in the move, shifted all of their regulatory functions and authority to the UK Central Bank. The stated reasons for this move were several. First, the Government cited numerous regulatory oversight failures, not the least being their failure to pick up on the monstrous frauds in sub-prime mortgages and CDO’s. Other breaches of their fiduciary duties included failures to properly regulate UK hedge funds, along with the absence of proper oversight of off shore entities involved in manipulation while under Commonwealth legal authority.

The plight of Great Britain, who has been the most steadfast ally of the US in the Middle East crisis, has reached the severest of levels, with their national debt now exceeding 400% of the Gross Domestic Product, currently at 1.5 Trillion GBP. Social welfare and health entitlement programs are all at a crisis tipping point, where it is obvious that such socialist largesse is no longer economically sustainable. Permanent unemployment now hovers at around 25%, and it is hard core and not able or willing to be retrained.

The socialist national health care programs now absorb fully 50% of the national budget of the British Government, providing mediocre care to millions of British citizens with no other alternatives unless they have private wealth. The National Health now employs more than some 1.4 Million people, making it the third largest employer in the World, behind the Chinese People’s Liberation Army, and the Indian National Railway System. Fourth is the US retail chain, Walmart, with 1.3 Million employees.

The British Government converted its national economy to a financial services paradigm beginning during the tenure of Margaret Thatcher. They had many successes early on, as evidenced by the successful banks and brokerage activities centered not only on Britain but also on their adjacent European Markets. Part of the growth of this sector was a Government mandated form of benign neglect of securities regulation, allowing free capital markets to grow internally with very little intrusive control exercised by their FSA. It was a very non-confrontational system, and while it was working, both sides of the political spectrum took credit for it.

Now that the model is imploding, we are seeing a blame game played that is reminiscent of what happened in the US after the start of the Great Depression that began in 1929, bottoming in 1933 with the collapse of the national banking system of the US. This blame game assigns responsibility for the national economic crisis to profiteering bankers and brokers, who were only recently lionized by the British Press and Government for great genius and effective competition from a small country with limited resources.

Does anyone mention those elements of British society that don’t work, or the enormous costs associated with their socialist programs, some implemented during World War II (the 1944 National Health Act)? Not a word. The regulators were always subordinate to the UK Government and its Central Bank, the Bank of England. They had no control over currency printing presses, anymore than they could determine an intelligent way to operate as a regulator without being compromised incestuous relationships with the very financial service units they were responsible for regulating. This should sound familiar to citizens and investors in the United States.

The British legal system has never permitted the abuses we live with here in the US. There is a very weak class action and plaintiff’s bar that exacts breathtaking penalties on those who would even consider trivial litigation. You can know that any lawsuit filed in the UK has legal and evidentiary foundation or it is never filed. I can’t say it works better than our system, but neither can I say it works that much worse.

Socialist bureaucracies have always treated their active members as a class apart, and they have protected themselves better in Britain than in any other European Socialist system. In turn, these bureaucrats have treated their duties with more respect and less corruption that compared with say Italy, or Spain. Like our left here, they survive and thrive by promising and delivering to their under classes benefits that cannot be paid from historic taxation.

About two months ago, the National Inflation Association noted the US had passed a tipping point, one where if we were to tax all income from all sources at 100%, we could no longer cover our regular US Government expenditures. That tipping point was crossed more than two decades ago in Britain.

Banking abuses of currencies, offshore accounts and wealth and more have been legion. Many credit Great Britain with inventing the modern offshore banking model to support the opium trade in the 1700’s. The Seven Tongs of the Triads had proper Englishmen in their now legendary seven “Tai-Pans” (named for the most poisonous family of snakes on the Globe), the merchant bankers of Hong Kong, who fronted for many of the more nefarious activities until relieved of these profitable burdens by modern evolving mechanisms.

It is no secret that the FSA was inspired by the SEC created by Joe Kennedy Sr., certainly the closest thing we will ever have the head of a criminal dynasty in the 20th Century. Joe Sr. made the SEC his tool, and he imbued self-interest in his operations and use of the SEC to achieve is personal goals, including the destruction of both his enemies and competitors. The FSA was a more civilized by a league, in operating with the insulated mutual cooperation of the parties involved in such a way that they protected each other first, and then worried about the public afterwards.

If you have any interest in understanding how closely this mimics the history of our security markets until the SEC’s strangled birth, you can find the living model in the story of the Stutz Bearcat Short Squeeze of the mid-1920’s. When the Stutz specialist caught and trapped manipulative short sellers in his stock, with the threat of forced bankruptcy of these parties, he was literally assaulted socially and personally to relent.

Our SEC faces its own mortality looking at the fate of the FSA. Our Federal Reserve would be the end recipient of the authority and responsibility of our SEC if the British model were followed. I can only hope as one person that this is not allowed to happen. The privately owned Federal Reserve Bank has far too much taint on it for its US currency machinations, and with its global power, it could make a new enterprise with the SEC’s old concessions (and hopefully new personnel) an unmanageable operating enterprise with the power to manipulate the US Government as if it were simply tiny independent pieces on a board of their own design and control, in a game where the only rules are theirs, and they are never shared.

I recite this in hopes that some of you will understand that things could get worse, faster than you expect. Close your eyes and breathe deeply.

For those who have not been listening carefully, the left has taken the first steps to seize the public and private pension assets of US Citizens without their consent. Over the past several months, Nancy Pelosi and other Administration operatives have sent up several trial balloons preceding an outright attack on the control of individual retirement accounts, beginning with the proposal for a special excise tax on those who begin to draw down their IRA, 401K, ERISA, Roth and other types of retirement assets accumulated without tax consequence. The Employee Retirement Income Security Act of 1974, as modified, created the modern financial asset base of the US, in creating the very first Government backed systematic savings plans in our national history.

The current parallel debt and deficit crises threaten to overwhelm our national systems. The socialist left has coveted the seemingly enormous assets of individuals and plans that arose from ERISA. They have sought to determine mechanisms for either heavily taxing these assets in direct contravention of the philosophy of the laws that established their creation, to indeed, actually seizing these assets in a nationalization move. Such a law would constitute an outright declaration of those in control that the Constitution is dead. Not a great deal of imagination would be required to determine what intended consequences could, or indeed would, arise from such actions.

If you haven’t paid attention to the recent general elections in Great Britain two weeks ago, then you would be unaware of one of the trial balloons seen in that election. The Liberal Party proposed that in this moment of their financial crisis, the Parliament should realize that it might be in the best strategic interest of the Nation to nationalize retirement and investment accounts, giving back some form of annuity, but also effectively shutting off the true owners of these assets from any control over their principal balances. For such a significant amount of money, including assets held offshore, over $12 Trillion GBP, any annuity would require government backing. But the question is what value would the backing of the British Government be when its debt exceed 400% of its GDP? This hint of intent was squashed, certainly contributing mightily to Gordon Brown’s defeat.

How could such a thing happen here? Nancy Pelosi has proposed an excise tax of 25% on retirement accounts accrued to date. Operatives linked to Pelosi and the Obama Administration have put out hypothetical queries as to the necessity of nationalizing the retirement and pension accounts of this Country. The public reaction was a shout down that was prompt and morally lethal. The Democratic Party is divided on this, but they would seek to pass such a bill by the same methods used to pass Obama care. What are those methods? Move on the legislation without seeking 60% agreement, but rather pass the bill with a 51% majority and to hell with anyone objecting.

Similar tactics have been employed last week with the ruling that Cap and Trade standards for carbon restrictions would be removed from legislative process and made an authority of the EPA without review of either House of Congress. Knowing they didn’t have the votes, they sought the amoral way to make a change for which there is no public support, based on science that is highly questionable. The sheer arrogance and irresponsibility of such an action in the time of the worst recession in our history, with a national debt and unfunded liability load exceeding $121 Trillion dollars borders on sedition.

Can such actions be allowed to proceed? Obama care was passed without any legislative representative being allowed time to read its 2600 pages. I say SHAME on our leaders. Such behavior throws the legitimacy of our entire Government into question.  Is this a republic or not? Can such behavior be excused on any level? The answer does not require a degree in Macro and Micro-Economics, nor does it require a Nobel Prize. What is required is that every representive, Congressman and Senator be told that they have been part of the destruction of our Country, and that they will be held accountable.

Any objective observer notes that many times, if not consistently, the Congress has moved more to protect its power than to protect the people. These imperialists must be shown that they live to serve the people, not the other way around. Where was the outrage at Obamacare? Where is it about the EPA implementing a rule of law circumventing legislative process or judicial review? Maybe the two party systems that we have must be crushed and an entirely new regime of interests is tested. It would be hard to under-perform the one we have. But then again, looking at the socialist states in Europe, it has to be a possibility.

Every year, hundreds of thousands of people seek to leave their socialist countries to come here. I have had Russians ask me if the American people have literally lost their collective minds. When I explain the tactics of the Obama Administration, they say, “You don’t have to tell us, we lived in the Soviet Union.” Is this what you want to leave for your children and grand-children?

Everyone is going to be forced to step up or otherwise walk the plank. We are being run by the most divisive and racist administration in our history, peopled by a legion of America hating, capitalism killing bureaucrats who have never done a thing in their lives, never created a business or job, never hired anyone but their own kind, while aggressively discriminating against any and all who oppose their utopian elitist state model.

I would assert that any attempt by this Government to nationalize the retirement and investment assets of this nation is an analog to the Weimar Reset, and that can’t be done without the informed consent of ALL US citizens.

Years ago, I was educated that the three legged stool of all contract laws were underpinned by the following principles:  (1) Specific Performance, (2) Binding Mutual Fiduciary Duties, and (3) Change only by Mutual Informed Consent. I would contend that the laws we have seen passed these last 18 months fail all three tests. The Supreme Court can only make its rulings based on the Constitution. Should SCOTUS abdicate this responsibility, the US will dissolve, and rightfully so.

At the major IT industry conference held this week, the long term debate over the future of computing was nearly settled by two events. The first event was the announcement by Google that it would no longer use Windows products. The second event was the practical equivalent of a concession speech by Microsoft CEO Steve Ballmer that they were in a position to be prepared for any “changing technology” paradigm. So what was the future envisioned by these two organizations?

The answer of course are the shifts of computing models to the long discussed “cloud computing”, in some ways a shift back to parallels to the original mainframe technology, updated for the many new technologies that have emerged in the last 30 years. Several years ago, a great presentation emerged from a presentation made to a major US IT Board of Directors about coming changes in the World. The presentation was called “Shift Happens”, and if you haven’t seen it, now in version 2, you need to watch it, and take notes, then watch it again.  If forecasts a reality of a new world that will roar out of the next 30 years of technology evolution, which will occur at an astounding speed, possibly even challenging Moore’s Law, which forecast in the late 1970’s that the speed of microprocessors would double and their cost would halve every 18 months for the visible future. The change seen in “Shift Happens” races away from that, as power and speed go exponential while prices drop exponentially. What other technologies have seen comparable increases in speed and power, with married drops in costs? Surely communications, mass storage, remote storage, server technology, light communications, and more have seen comparable changes.

If mainframe computers were partially succeeded by mini-computers, then they in turn were succeeded by different mass server farm models for storage, driving distributed processing of input, query and output tied to personal computer technologies. What is being discussed now is a quantum shift, in which the personal computer will almost disappear into an entirely new paradigm, a more profound shift than the PC revolution.

Now, all programs, data, information, images and more will reside on huge globally distributed server farms accessible by devices which will literally project images, link to printers and projectors, and provide real time personal data inputs for pennies, with prices dropping even faster than power and capabilities will increase.

Without singling out Microsoft, or Dell, what does this do to their business models in general terms? Such change will require the ability to be agile, efficient, and customer-oriented, in a way that they have never before had to face, particularly Microsoft with its enormous market share both here and internationally. What does it do their product planning? What future products will be used that don’t even exist now, not even on drawing boards?

I had an image of the legendary Malcolm X speech over 40 years ago before his assassination, in which he compared the black experience in America with the following words: “We didn’t land on Plymouth Rock, Plymouth Rock landed on us.” The IT industry as we have known it had a small pebble hit it when the PC came into being and took off like a veritable Jet. This Cloud Computing change will land on the IT world like a planet killing asteroid, throwing everything into a kind of chaos, one in which almost all prior experience and knowledge will be decimated, leaving an unrecognizable landscape whose culture will have to adapt to entirely new realities.

What else will be impacted? Certainly, the workplace can only be described as something that will exist as if created by people throwing darts blindfolded. The tests of these workplaces, many of which will have to become virtual, will involve knowledge and skills that haven’t even been projected or imagined, using and depending on people being able to change jobs like they do underwear, with no stress, and no intellectual dependence on their knowledge of a single domain before they came to their latest tasking.

I am sorry I wasn’t born a little later, as I love the process of change, and this will not be part of my life experience at a technical level. I will get to watch it, but I won’t be allowed to contribute to it. The day to day life of a worker and even more so, a manager, will become an exercise that might be compared to playing multi-dimensional chess on a spinning board in the dark. The first players won’t just suffer from this change, they may have to learn obsession like it was a Zen exercise. Actors call this living in the moment. It may be just a bit more difficult than that.

The average person of the next half century will have a new job every 3 or fewer years, and most of those jobs do not even exist now, doing things and achieving goals that can’t even be described right now. Much has been written about management of change. The kind of change that I see coming hasn’t even been described in science fiction literature. In the term of my professional life, I could pretty much cover my technical spectrum with three publications, those being Popular Science (for early previews of things coming), Scientific American (for peer review articles addressing peer reviewed science articles from other peer review journals), and Nature (for advances in the broad biochemistry arena that defines life).  Our children and grandchildren won’t have it nearly that easy.

They will have to learn to adapt and learn, even while sleeping. It is estimated that all human knowledge since the beginning of time will be captured electronically in 20 years on computer the size of a notebook able to run processors at lower wavelengths than light (2 angstroms), most possibly and probably on neural nets that learn faster than humans, Artificial intelligence redefined.

And they must recognize problems. This technology won’t be free, nor will it be without costs and dangers. Honey bees are disappearing at an astronomical rate, and many suspect it may be because of our dependence on an ocean of wireless signals that disrupt and overload their 800,000 cell brains. How much microwave radiation can the human body stand? When does it sterilize humans or compromise their immune systems?

The early adapters of this new technology paradigm face some daunting challenges. I think that they will only survive if they realize that almost everything they know, someone else knows better and sooner. Deciding how to position humans in this gladiatorial arena will be hard, gladiatorial in the sense that only the strong will survive. In a world with 12 Billion people (by 2050), how will those who can’t adapt to this altered reality be handled? Menial labor may overwhelm everyone at this end of the skill spectrum, and their only reward may be not enough food.

Prepare for take-off. It will be a trip, if nothing else.

Australian Broadcasting Corporation’s commentators Clark and Dawes did a great comedic explanation of the current debt crisis in Europe, incorporating factual debt numbers for some critical nations in the European Union. Their numbers pertaining to the actual debts were rather shocking, particularly when viewed through the prism of the United States Government.

The amounts owed by the nations of Greece, $367 Billion EUD, Italy, $1 Trillion EUD, Spain, $1 Trillion EUD, Ireland, $865 Billion, were in fact mostly amounts owed to other EU member nations and their banks. They didn’t get to Portugal’s debt in this discussion, and they certainly didn’t include the unfunded liabilities of their socialist worker programs, the real monsters in the debt soup, just like the US.

They cited the nations with the biggest liability exposures to these borrower nations as being Germany, Great Britain, and France, none of which are solvent in their own stead. Indeed, each of these lending countries carries national debt that is a multiple of their GDP, with the greatest of these being Great Britain, with a debt load of 400% of its GDP, before its unfunded liabilities. The song sung in this little ditty, repeatedly, was how were these insolvent lenders going to survive while insolvent borrowers ask for more money to bail them out, when they can’t service the debt they already have. It is a formula for a perfect storm.

They proffer the reason for the current flight to the US dollar as being a flight to safety, not because the US Debt picture is any better, but rather because, for now, our economy is so much stronger than those of Europe, individually or in total. And what is our debt picture?

Many are familiar with the US Debt Clock maintained by the US Treasury. It reflects a debt of the US at $13 Trillion today, steadily exploding, moving $5 Trillion in the last 18 months, more than the added amount accrued in the previous 8 years of the Bush Administration. It also reflects an estimate of the current debt from unfunded liabilities of our social welfare programs (including Social Security, Medicaid, Medicare, Head Start, School support, etc) at roughly $108 Trillion Net Present Value (NPV), giving the US a total debt load of about $121 Trillion, before the factoring in of the future costs of Obama’s health care reform act. A $14 Trillion GDP economy, which is the US now, simply can’t pay off such obligations.

What is most shocking about these numbers is the absolute refusal of leftist “social justice” advocates/revolutionaries to acknowledge that obligations of this size simply overwhelm the US from just the dual costs of servicing the cost of the debts’ borrowing, and any retirement of principal. Leftist flights of fantasy include absorption of all pension and retirement accounts nationally into the US Treasury, which would bring down the US Government overnight.

Reflecting their abysmal ignorance of basic economics, they put this forward without addressing the fact that this pittance ($14 Trillion est.) won’t last a decade. More significantly, they could not be trusted to keep their hands off these funds, anymore than they could be trusted to keep their hands of the original trust funds of the Social Security system, or of the Medicare system. These political pick-pockets have the ethics of single cell viruses, and their ideas are just as deadly.

So what some potential answers to this crisis? The first would be to immediately freeze all new USG spending across the board. Next, you would need to form a commission that would be mandated to cut all USG spending by 50%, with the Government spending frozen at these levels for 10 years. Then, you would have to cut USG payrolls by 50% of personnel, followed by a cut of their salaries and benefits by another 50%, with one exception, that being the military. Then, you would have to derail Obamacare, which could be accomplished by forcing all Congressmen and Senators to live with the coverage they come up with, which should be sufficient to get them to keep their eyes on the ball, and their butts in their seats.

Finally, I would cut all taxes, including estate taxes to a flat 10%, fixed, with no deductions. What could come from this? There would be such an explosion in investment in this country, it would look like the launch of an interplanetary missile, as funds sidelined by fear and uncertainty (currently over $9 Trillion by best estimates) would be reinvested along with an avalanche of offshore monies seeking higher returns than the current 2% yield for 10 year paper.

If this option is rejected or not implemented in some form, what then could we expect? I would forecast an economic meltdown, as the Federal Reserve attempted to monetize the US Debt (NOT including unfunded liabilities), which should cause our currency to literally melt to almost no value. We would have a re-run of the Weimar republic, ended by a literal clearing of the financial board here, with nothing worth any form of currency. The exercise would become one familiar to chess students, where by the entire board of a game is cleared of playing pieces in one sweeping move, and everything is rebased to zero. (Does anyone remember the old “Zero Base Budgeting”)? These actions would turn the US into a third world economy for at least 50 years, and our assets’ ownership would be shifted as if by magic. This nearly happened in 1933, following the banking collapse, and the removal of the Gold standard to back our currency. Fiat currency that replaced Gold backed currency was and is too easily manipulated, and ownership of an interest in the economy is never certain. Those talking of banksters would get to find out first-hand what the term means, as everything they owned would be seized on collection, as if loan sharks were owed this fantasy money.

What are needed now are prospective solutions, ones that stand up to reality. Too many have had too much given to them for too little. This is going to end, one way or another.

We have reaped the wind, only to harvest the whirlwind. If you don’t see the outcome we are headed for if nothing is done, you have no one to blame but yourself.

I had to take a break involving several pressing matters involving long term professional investments I have made of my time in some spaces ranging from 15 to 18 years, all of which have seem to have hit critical mass at the same time. I had guests come to my city at the same time on several matters, while I explored getting involved in a potential black swan in an unexpected space with people I like personally. At the same time, I began to support a reunion of some military friends from many years ago in a first ever association convention in my City of this group.

The first three weeks of May saw a vindication of my views of the pending global debt crisis, beginning with the collapse of Greek sovereign debt on an enormous scale, requiring an initial bailout of over $1 Trillion EUD, with more to be necessary within 12 to 18 months. Next, we saw proof of the major investment bank’s involvement in the manipulation of the Greek sovereign debt issues. This included manipulative use of illegal naked short positions in these bonds combined with leveraged real and synthetic credit default swaps, in such a manner as to have said bank actually end up short 400% of a debt they touted institutionally to buyers while they bet on the collapse of not only the debt issues, but the underlying national credit.

As if that were not enough, Goldman Sachs had to settle an SEC civil indictment that they had facilitated 385 counts of naked short selling, focused on their clearing and settling said trades while knowing they were naked short positions. Goldman astutely settled these charges for a “valet tip” of $450,000, not a dollar of which will go to the victim shareholders of the underlying securities which were shorted manipulatively. DOJ months ago promised indictments of 5000 financial entities and persons for financial fraud, with the first yet to be see. If a package of these criminal indictments doesn’t focus on this episode and the thousands of others like it, then I doubt we will ever see another major organization indicted for the acts of sedition their behavior has entailed.

AG Holder has stepped on another figurative landmine in my State, Arizona, with baseless charges made against the State for its new laws to assist Federal officials in enforcing illegal immigration laws here. The AZ law was passed right after a rancher living on the AZ-Mexico border was assassinated by a professional sent to kill him by the Mexican drug cartels, Bob Krenker, shot through the lungs and left to die. The law we passed is more liberal than the Federal law it is designed to aid, after numerous insults made to the State by the Federal Government, which has refused to enforce the laws intended to protect our border and our society. In a State with a population of just 2.8 Million, we had 90,000 serious crimes last year, some 95% of which were committed by illegal alien criminals. Over the past 10 years, 80% of violent crimes against law enforcement officials have been committed by the same illegal alien criminals. By way of comparison on scale, the City of New York with a population of 8.6 Million had 116,000 serious crimes last year. Only a person with the IQ of amoeba would not be able to understand this isn’t proportionate. We have over 450,000 to 500,000 illegal immigrants here, costing the State over $2.8 Billion every years, driving the State to edge of bankruptcy. That doesn’t even touch the 250,000 to 300,000 illegal immigrants who transit through here every year. They are breaking the back of our social services systems, including welfare and healthcare in particular, and the Federal agencies provide no solutions to the problem.

On the crime front, I go back to the case of Bob Krenker. While he was dying, he managed to alert his neighbors by radio to his plight, and they rallied a posse save him and to chase down the murderer. They were too late to save him, as he had bled out in great pain from his wounds. After tracking the perpetrator 8 miles towards the border (which the Border Patrol sits back from by 60 miles generally) these ranchers and cattlemen cornered the suspect in a dry arroyo canyon. As they were about to smoke him out to seize him and arrest him for murder, in swooped the Border Patrol and Federal Marshalls with their posse supported by a helicopter, who immediately demanded the locals back off and cede the capture of the suspect to them. Lots of luck. In an abominable performance, they managed to let the suspect escape almost inexplicably from a one way position. It has been speculated on here that they didn’t want him. If by any chance that were to be proved, these officials should be put in prison themselves.

California has made a 24 Karat ass out of their major cities in the South and North assailing an AZ law which they, like AG Holder, have never read. They threaten boycott of Arizona from which they get 25% of their electric power, and crucial water from the Colorado River basin. Arizona has responded astutely, threatening California with a cut off of their electric power, and their water to Southern California.

The Bureau of Land Management has made a catastrophic mess out of water resources in the Western US over the past century, and it is time they should be thrown out on their asses. Southern California can always go to Northern California’s watershed which supplies the SF basin and the Central Valley. The BLM has shut off 90% of their water, so plenty should be left over for SoCal. RIGHT! Maybe BLM officials can share cells with some of the thousands of California felons we warehouse for that State’s overcrowded prison system.

The never ending attack of the Obama Administration on our systems for the division of Church and State remain under attack. No one person has done more than Glenn Beck to point out these contradictory messages of the Obama Administration. In their latest move, they seek to force Churches to “Go Green” or face harassment by the EPA. This country was built on the faith of its founders. Too few of our citizens are even marginally aware of this, or of the presence of the two Latin Words on the Top of the Washington Monument, “Laos Dei”. Obama seeks to have religion be a subordinate of the State, and to penalize them if they disagree with him on Constitutional rights.

What is the common theme of the writings above? We have a President and his associates who don’t believe in our republican democracy, who disrespect the Constitution unless it is convenient for them, who are disrespectful of faith, and who would destroy the very core of our systems of democracy and capitalism. I say that when they fail, they must be shipped away from our shores, never to return. Do you have a better idea?

On Friday, April 16, the SEC announced the civil indictment of Goldman Sachs for securities fraud in the structuring and sale of collateralized debt obligations in connection with a $1 Billion offering of securities it sold in cooperation with the hedge fund Paulson and Company. The charges, which are alleged at this point, appear to be the product of a disgruntled Paulson employee becoming a whistleblower to the SEC, rolling on a mid-level trader at Goldman alleged to have been also involved in the fraud.

The allegations, which may change with the passage of time, are that Goldman executives worked with Paulson persons to construct a portfolio of debt obligations totaling $1 Billion, which was intended to fail from before its sale, and which was purportedly shorted while being structured and sold to buyers. This comes on the heels of industry rumors of similar behavior by Goldman in its sale of Greek Sovereign Debt, also while they hedged with short transactions including the purchase of Credit Default Swaps on Greek credit.

This charge comes at a peak in the market, and it was responsible for a $24 dollar drop in Goldman stock on Friday. This could not come at a worse time for our securities markets, both domestic and international institutional. What happened here to cause the SEC to listen to a single whistleblower, when they ignored Harry Markopolos for over 10 years? Could it have anything to do with the pending legislation on financial regulatory reform coming before the House and Senate beginning this week? Could it have anything to do with the SEC having less than pure motives, after a decade of it denying shorting manipulations of all securities were either existent or material?

Goldman Sachs has always been the financial Bentley of broker-dealers, the crème de la crème of the investment banking industry, a training ground for current and future directors of the Federal Reserve. Accusing Goldman of the kind of behavior that bankrupted Bear Stearns and Lehman Brothers slams a devastating blow to global investor confidence, and even the tone deaf SEC knows that. Would they sell out Goldman for some slimy political gain? No one thinks otherwise who has watched their behavior over the past two decades.

The sub-prime scandal that shattered our markets between 2007 and 2009 could be attributed to a relatively small number of the remaining major investment banking firms, working with corrupt US agencies which were fronted by sleazy originators of this paper. Fannie Mae and Freddie Mac led this ugly charge in which greed overwhelmed and buried proper fiduciary behavior, with the full support of key legislators in our Congress that included Chris Dodd and Barney Frank. Many were lulled into shocked silence as the sheer chutzpah of this fraud became known. This paralysis allowed many other related shorting frauds including abusive derivative practices in the out of control credit default swaps markets that threatened the economy of the entire globe.

Where were our regulators on these scandals, ones that were openly discussed and written about for the last six years without break? The answer was that they were nowhere to be seen, ignoring far more than Harry Markopolos’ alarms on Bernard Madoff, allowing wholesale damage to be done to the markets of the World on a much larger scale than even Madoff ever dreamed of.

So why did they listen now to a single voice, when those of hundreds were discounted for decades? Could it be that they finally realized they were cutting their own throats at a credibility level? Could they have seen a golden, yet limited opportunity to give themselves some good press for the first time in the last ten years? Did they consider that doing this in the light might negatively impact an already impaired capital formation process to a crippling point? Do they even understand the implications of the charges they have made and not made for the last decade? Would they sell out America so their institution could survive and thrive?

If you don’t know the answers to these questions, you haven’t been paying attention. The capital formation processes of this country were supported on a level envied the world over, the result of intelligent laws and rule making following the 1929 Crash.  When I entered the securities industry in the early 1970’s, before the Gasoline and Petroleum crisis on 1974, the financial services industry was highly diverse, with more than 150 major broker dealers, and thousands of banks all over the country. Globalization had been a minor element of US activity, but it certainly did not dominate. ERISA was passed in 1974, setting up the first systematic savings programs in US history and creating the modern pension and investment management behemoth that remains the only hope of a Government gone mad economically. Today there are no more than six major national banks and about the same number of brokers, less Goldman if the suits threatened against them for securities fraud materialize.

US currency peaked in value in 1913, and by the early 1970’s, its value had declined versus other currencies by about 50%. It is now 37 years later, and what has happened to the United States on every level has but one set of causes: Profligate government spending and entitlement programs plunging the country into deep debt, grotesque corruption and incompetence on the part of regulators and legislators, decimation of the important Glass-Steagal Act, conflicts of interest between all players, and socialist inroads attacking the fundamental integrity of our system of Government and way of life. The Federal Reserve played no mean role in the demise of the value of the dollar.

While the dollar has declined another 43%, we have been involved in a series of wars we fight not to win but to end in a twisted draw, we have senselessly supported our most mortal enemies, and we have supported a New World Order without understanding that it is inherently against human nature.

Where does this all stop, and how? There are rational answers to the questions above, and they are about this country returning to the values of its founding fathers that are denigrated at every turn by progressives who think the Constitution was printed on biodegradable pink toilet paper. Those answers to the questions above only provide one set of outcomes, and you don’t have to be a rocket scientist to know what that means. Each and every American will be forced to stand up for what they believe this country stands for, and to overcome the opposition to us sticking to our moral values. No one gets to opt out or vote present in this coming battle. I do not fear conflict, but rather I fear what not facing problems will do to our way of life in this country. Those who don’t believe in American exceptionalism enough to dedicate all they have to preserving it, should not retain their citizenships or their rights in this country. We can build enough boats to send them to their preferred choice of countries. It has to be an up or down vote, and those who opt out genuinely OPT OUT.

 “What utter madness to believe that one can prevent the truth of history from eventually being written.” — Emile Zola.

Numerous attempts have been made by supporters of financial market manipulations and financial profiteering to suppress anyone who opposed them. Slanders and libels have come from every quarter, launched by parties attempting to cut-off the threats of the communications with the public from parties who have seen through the ploys used by these nefarious villains. Indeed, one victim has built a pocket industry in outing the use of “Sock Puppets” by tainted journalists, offshore scammers, and worse.

I have seen the conflicts of interest displayed by these parties, who are so cowardly, they hide behind screen names, while they attack the enemies of their enemies, irrespective of guilt or innocence of said targets. I have personally outed many of these individuals, who were paid well in their positions as trained attack dogs for sleazy, mob connected criminal operators, to ruthless hedge fund short sellers who made fortunes off attacking every component of American society. They have used short selling techniques to bet legally and illegally against the United States in a difficult time, and our regulators have done nothing but protect them.

Unfortunately, these same regulators, who are RICO activities in and of themselves, have managed to make two-thirds of all existing criminals some form of confidential informant or cooperating witness. This mirrors similar conduct with the legendary mobster/pedophile Whitey Bulger used and protected by the FBI in Boston, during a period when he was committing as many as 50 murders. There are so many criminals multiplied by two to three for their lawyers, that it has become a common occurrence to see a crooked deal be peopled at an executive level by all criminals, except for the innocent schmuck who was just trying to commercialize a new business idea, or technology, etc.

The history of stock manipulation in the modern era was certainly given its profile by none other than Joe Kennedy Sr. and his partner, Bernard Baruch, when they assembled over 500 “Pools” funded by the wealthiest families in America to run the 1929 Raid. I have told everyone I know the full story, which was concluded by Kennedy having a liquid net worth of over $500 Million at the time of the Banking System Collapse of 1933. The whole story is almost beyond imagination, truth stranger than fiction.  When the Crash came, it was followed by the Pecora hearings in Congress, intended to determine how the financial crisis came about, at whose hands, and how it might be effectively addressed by the US Government through regulatory oversight.

Out of these hearings came a series of regulations, including the Securities Acts of 1933 and 1934 which created the SEC and the NASD (name changed 60+ years later to FINRA). When FDR came down on a selection of an appointment to run this new Federal Agency, he stunned everyone by picking the biggest thief of the era, Joe Kennedy Sr.  He came under attack from every nook and cranny of the United States, from every element of our society for his choice. FDR could be obstinate, and he stood firm, justifying his selection with many phrases than could be summarized best by the following: “I needed one of their own kind, who understood their criminal methods, to have any hope of controlling them. He got what he wanted, and Joe didn’t disappoint. He turned the SEC into his personal vendetta unit, attacking his targets and his enemies, self dealing over and over again in extortion rackets, until finally he sought and got the US Ambassadorship to the Court of St. James. His only problem? Joe Sr. was a Nazi sympathizer, and when this was opened up in the British Press, FDR was forced to recall him after only a few months on the job. FDR deserved the humiliation, Joe more so.

Global banking and investment banking has had a singular role in the financing of every major war of the last 200 years. The mindset of the globalist bankers is probably best summarized in the quote of Mayer Amschel Rothschild: “Let me issue and control a nation’s money (meaning currency) and I care not who writes the laws. Monied interests have never hesitated to viciously attack anyone threatening their control of the global economy. The only bulwark against their power has been small independent voices and carefully constructed “Cut-Outs” they have used to protect themselves. Is the Federal Reserve part of that picture, a “Cut-Out” used to suck value out of the US economy?

The court is still out on that, but not on how the small independent voices are treated. If anyone who has threatened their interest gains traction, he has been viciously attacked, slandered and libeled by offshore parties who don’t hesitate to publish the most vicious personal slanders that they can mount. I have been called every name in the book, including a pedophile by offshore scum, and attacked by people like Gary Weiss using a screen name, a tactic he has used time and again, only to be outed by better investigators than himself. He is the sockpuppet personified. He hides in Brooklyn, from many who want to serve him papers for deposition.

Going back to the Zola quote, Weiss, Ryals, Schneider, and others like them will be found out, and the backlash will be worthy of a ringside seat. Maybe it can be arranged that they and their friends can be thrown to angry shareholders in the new Yankee Stadium. It would out-draw the Colliseum in Rome when gladiators fought.

With the release of the CNBC CYA piece Friday on Anthony Elgindy, the convicted felon, the exodus of his journalist supporters and apologists stage left has not only continued, but expanded. For over 10 years, this coterie of killer clowns has relentlessly attacked victims of illegal short selling manipulation with every slander imaginable. Then, in a single one hour piece, their world came crashing down, along with their co-conspirators at the regulatory agencies who made hay by attacking criminals and the defenseless in the name of hanging the easiest low hanging scalps from their belt.

The CNBC segment of the “American Greed” series, titled “Mad Max on Wall Street” was laughable in its defense of many of Elgindy’s supporters. While it attacked Elgindy personally, it left out little bites like his prior conviction for felony insurance fraud in Dallas before he appeared in San Diego.

Elgindy was a former pump and dump broker for the notorious Blinder, Robinson (known in the trade by the not so affectionate name “Blind ‘em and Rob ‘em”) in Denver, before he moved on to another bucket shop where the commissions were greater in Dallas. When he saw both these firms go under to regulatory and criminal findings, he astutely morphed himself into a short seller, one who postured himself as being only concerned with outing criminal pump and dump stocks like he had previously lived off of.

He opened a site called Anthony@investigations, on the Silicon Investor Board, which he morphed into Anthony@Pacific as he gained more traction and subscribers to his shorting service. He and his cohort would hit some 4000 companies, pretty much without discrimination, wrecking more than 2200. Many deserved such attention, but as many more did not. When Elgindy put his pack of wild dogs on a small company, they would be unable to find the resouces to defend themselves.

Milberg, Weiss would sue for the companies’ D&O Insurance policies if they had any, the SEC would be “tipped” about the fraud at the company (whether it existed or not), paid bashers would bury message boards with slanders of everything about the companies, legitimate business opportunities of the target companies would be eviscerated by wholesale attacks on the potential business partners, the SEC would open investigations on the company, its management, its financiers, and so on and so on, ad infinitum. By involving an FBI agent and his friends, Elgindy would gain access to insider information that could be used in an adversarial way against the companies. This last decision had more to do with the 11 year sentence to prison he received than anything else he did.

This was a bad week for bad people. Preceding the National Inflation Association’s blast that tax revenues equal to 100% of all income could no longer pay for our Federal Government on a coverage basis, the bankruptcy examiner revealed that Lehman was bankrupt for months before it actually filed, hiding its conditions with accounting technicalities, while Dick Fuld and his CFO gave Sarbanes-Oxley certifications to their financials they knew were false and misleading. Some might forget that one major media “Guru” touted the purchase of Lehman for three consecutive days prior to their bankruptcy filing, vastly benefitting his short seller friends who were raiding Lehman, while he described the Lehman stock as “the stock buying opportunity of a lifetime”.

This “Guru” described above had said for years that illegal short sellers provided a necessary function to the markets, forcing it to be more efficient, while at the same time increasing overall market liquidity. He advocated the validity of the argument for “Strategic” failures-to-deliver as being legitimate. So where is he now on these subjects? He has completely reversed field, now opposing (along with many other of his previous journalistic supporters who mouthed similar opinions) naked short selling. He peers used an interesting tactic throughout the last 10 years, repeatedly trying to confuse investors by mixing descriptions of the legal short selling of the previous 70 years with the new naked shorting ploy, in which no stock was ever borrowed.

The SEC produced shamelessly fraudulent and misleading articles supporting its positions that short sellers acted as a kind of unregulated policeman for smaller stocks. They produced highly prejudiced, pre-determined outcome economic studies on the impact of short selling to support their actions. It took the raids on Bear Stearns, Lehman, Merrill and Citigroup to take the wind out of their sails a bit, along with the disclosure the Bernie Madoff’s “pocket” broker-dealer was 5 to 10% of total market sales. Even then, they systematically refused to admit their errors and disgracefully conflicted positions on short selling.

I would estimate that about half of all journalists who denied naked short selling’s very existence for years are now saying that it is bad for markets, and for US markets in particular. They attempt now to “Revise” history, so that their previous positions supporting illegal short sellers’ very methods, motives and means would be lost in the maw of coverage, and the defective short term memory of American investors and markets. I think that this will not happen quite as easily as they would wish it. I saw this same kind of revisionist history created on the “First Progressive”, President Woodrow Wilson, with regard to his support of Fabian Socialism, Eugenics, opposition to the vote for Women, and the support of the catastrophic Treaty of Versailles, which became the foundation for the Second World War.

Their attacks on and slanders of people ranging from Patrick Byrne, to Overstock, to Fairfax Financial, to Eagletech Communications, Viragen, Sedona Corp, Nanopierce, and more, much more, including me, won’t just evaporate. Our Courts and Judges have determined to repeatedly shield the SEC from its own venality, incompetence and arrogance, the most disgraceful being the behavior of the 2nd Circuit Courts. The SEC’s own whitewash of its malfeasance in protecting Bernie Madoff was an appalling disgrace. Its protection of the manipulators of Bear and Lehman placed the priority on shielding the manipulators, rather than facing and fixing our markets so that such manipulation could never again damage individual investors.

Many people throughout our private and public sectors are responsible for the destruction of hundreds of billions of dollars in value, and the decimation of our markets on a level unprecedented since the 1929 Raid, and, most probably, the way of life we have known for most of our history. They must pay, and I mean with everything they have including their freedom. It stops here, or the Devil will take the hindmost.

– From “Front and Center”, by C. Austin Burrell –

Today, the National Inflation Association made the momentous announcement of the US having passed a critical “Tipping Point”, that being the level at which if 100% of all income were taxed from payers, it would not cover the expenditures of the US Government. If you can’t understand what this means, then as a citizen, you damned well better learn. We have gone over the edge of a precipice that can’t be easily recovered. The futures of our currency and of the currencies of the World are in acute jeopardy that would predict the probability of an unprecedented collapse of our global economy. This collapse comes at a time when, as never before in American history, our national system of government and laws are imploding.

I was asked today what solutions I could see for the future and what could the individual do to protect themselves against the potential collapse. First, I don’t see a solution for the individual. All we can do is reduce the size of Government and the level of our expenditures and taxation immediately. The option is the seizure of our country’s financial assets, the decimation of our real estate markets both residential and commercial, the liquidation of our insurance industry, and worse.

Absent draconian changes in our way of life, I can see nothing to repair the institutional damage already done, and which is being magnified every day. Jobs creation was a hope a year ago, but I doubt it would be of any value now. Busting the energy paradigm with a new source of plentiful and cheap energy could be on the wish list, but it better happen soon. Fanciful pleadings that we trust our Government to correct, and to re-adjust are folly. We need action now, not a year from now, not in 2012, but now.

The hardest part of the question with the functions of our Government is to determine what isn’t broken beyond repair. Maybe the only elements of our national model that aren’t completely broken are the military and the local police functions.

Our Courts are a disaster, our legal system is corrupted beyond imagination, and our Government is almost incompetent at every level.

How many USG failures do we need to see to understand the total folly of even considering allowing the USG to run the 1/6th of the US economy that is our health care system? The run of failures with Amtrak, the US Post Office, Social Security, Medicare, Medicaid, Fannie Mae, Freddie Mac, GM, Chrysler, etc., is staggering. How many times have costs been as low as projected? NEVER. How many of these quasi public private enterprises are actually solvent? In fact, all are absolutely unfiled bankruptcies. How many times do how many politicians have to lie to the American people before they are thrown out on their collective asses? When does their incompetence and malfeasance demand public prosecution, disbarment, or worse?

I don’t have even a set of solutions that would address this, other than the re-organization of the US Government on its original Constitutional principles. Our leaders have fallen in love with their own lines of garbage, and they have betrayed the founders of this country and our revolution. Many could see this crisis coming decades ago, but optimists, including me, never believed that this could be taken so far, or that our values could be so shamed.

As we descend into this political and economic Hades, we will have intermediate steps along the way, in which actions will be taken to slow the collapse. They won’t stop anything. What could a professional predict? Massive tax increases would be first. They would fail, simply because the taxes could never be raised high enough to pay our forward obligations. Seizure of corporate and then retirement assets would be next. That too would fail, because the debts of this country are too great. Finally, the USG would have to simply stop pretending and declare a dictatorship and seize all power to attempt to quell dissent and civil unrest that would be inevitable as the American public realized they were on a one way slide to oblivion.

Where is the morality of this? All I hear from progressives is that we must do the moral thing for the needy, a great idea, but how would they make it work? Explain to me how destroying this country and its economy will serve the needs of the majority of the US people? The harsh light of economic reality will kill all social programs, requiring the US to reinvent itself from nothing. Name the politicians who will be trusted then. Name the bureaucrats that will be trusted then. Tell me then what USG programs, payrolls and entitlements will stand between a man and feeding his family?

I have to say now that our future is bleak beyond imagining. Either we reverse our direction totally, or we ride this horse until it is so far underwater, it drowns in a sea of public lies, deceptions, half truths and worse, crimes against humanity. How will calls of SEDITION be answered then?

Nothing is safe or certain right now, NOTHING, and we have only a little time to put things back on the right track or pay a price no one can imagine. The breakdown will go to a level of barter at the bottom, but believe me that the Mob may be fooled twice, but not thrice. I stand on the principles of my forefathers. I have asked everyone to wake up. If you are not part of this solution, you are definitely going to be judged to be part of the problem. You won’t have anyone to blame but yourself. Judeo-Christian forgiveness and forbearing will be lost here. That may be the greatest tragedy of all.

– From “Front and Center”, by C. Austin Burrell –

I was informed this evening that the CNBC Series “American Greed” will air a 2 hour special on the notorious short seller and convicted felon Amir “Anthony” Elgindy. Elgindy was the operator of the most notorious criminal short selling syndicate of the last decade, known by several names, including “Anthony@Pacific”, etc. After being arrested in early 2002, and being released on bail, Elgindy was caught trying to fly from New York’s Islip Airport back to San Diego, in possession of $40,000 in cash, and more in precious jewelry, along with phony passports with different names on them from his own.

While Elgindy was operating, he attacked thousands of companies, 2200 plus, with impunity and aggressive arrogance. Working with lawyers specializing in suits for Directors and Officers liability insurance, paid bashers, pay for play journalists, NASD (now FINRA) boiler room broker-dealers, PIPES financiers, bloggers and hedge funds short sellers to destroy and preferably bankrupt his target companies.

His syndicate eventually grew to over 650 members, including many of the biggest hedge funds, law firms and more, all in turn supported by the SEC, FINRA, and other regulators. His activities attracted the partnerships of Milberg, Weiss, then the most successful law firm in the country, on both of the US Coasts, the SEC, FINRA, the DOJ, and many more, including firms specializing in producing negative research reports on companies his syndicate had targeted for short selling raids.

The tactics he employed were classic manipulation. Most frequently his network would “tip off” him to a potential company to be targeted, particularly where there was sufficient market capitalization to make it very, very profitable to rip them off. He would generally establish his position, then go out with his alert to his subscribers describing what he thought the shorting opportunity was, with them acting in concert with him to simply overload the market with supply of stock, thereby driving the Company’s stock into the ground. With their stock suppressed, financing became irrationally expensive and dilutive. More often than not, the companies would have to throw in the towel, selling out at an enormous discount, deregistering or bankrupting.

Elgindy loved to see his targets bankrupt. He knew from some of the more arcane rules of FASB’s GAAP accounting that if a short seller’s target deregistered or bankrupted, they didn’t have to cover their short sale. That made the proceeds of their short sale tax free, since there would be no revenue recognition event.

Elgindy came from what some objective minds would call a colorful background. A convicted felon for insurance fraud in Texas in the late 1990’s, he appeared in San Diego a couple of years later, reincarnated as at short selling guru. He had the support of a network of vermin who would do anything for him and his contacts, particularly touting his ideas to the public. In general, that network interfered with contracts of the target companies, slandered (sometimes with cause) senior management, tore up boards with his postings on his Silicon Investor Board, and on the companies’ Raging Bull or Yahoo Finance boards for public inquiry and exchange on the companies, or worse. His network included major journalists, major hedge fund operators, ruthless lawyers who did not blink at breaking the law, and regulators only looking for scalps, able to ignore his criminal past.

The worst of this story includes him trying to dump his childrens’ College Funds on 9/10, a fact his trial judge found to be too prejudicial, to personal attacks and death threats against his targets, their managements, and their investors. He would do or say anything to insure his shorts were profitable, and I mean anything.  When the SEC and FINRA were informed of his tactics and manipulations, they did the worst thing possible. Rather than focus on those issues of misconduct, or protecting the companies’ shareholders, they focused instead on their “Scalp” count over anything else, how many cases they could make against the target companies.

Mel Weiss would use “Proto-plaintiffs” over and over again, eventually facing a felony conviction for his misbehavior, and doing 33 months in a Federal prison along with being disbarred.

The DOJ promised the assembled victims of Elgindy many more indictments shortly after his conviction, but, repeating a pattern, they did nothing, but wait for the civil claims statute of limitations to run out. They were more interested in protecting the Courts from the potential burdens of thousands of lawsuits involving million of investors for losses in the hundreds of billions. Someday, they will have to explain their behavior. They now promise 5000 indictments for various financial fraudsters. If they don’t include all types of bad actors supporting Elgindy on every level, this will be their figurative Waterloo.

The Elgindy pack emulated the behavior of a pack of wild dogs on a hunting scent. The typical victims did not have the resources or assets to defend themselves against such a rabid pack, one that controlled the message that went out on MSM, with the cooperation and support of our regulators. This is a miss-conduct that should have ended the SEC by itself. Maybe we will get lucky yet. The SEC and FINRA have a new problem also of their own making, one Bernard Madoff. He was never as big as our financial markets short seller thieves, but he injured people with influence and proprietary personal media access that he could not control, particularly not from a Federal Prison. Maybe someday, we will find out how he was allowed on a computer to remotely manage his blog and websites with the help of his friend and supporters, including Jeffrey Mitchell and Floyd Schneider, among others.

– From “Front and Center”, by C. Austin Burrell –

This week, Certified Fraud Examiner Harry Markopolos announced the release of his new book, “No One Would Listen”, about the complete stonewall he hit with US Government Regulators including the SEC and FINRA. He told his story in his typical low key and very professional manner, making his message all the more devastating.

I am sure that SEC, FINRA and other officials to whom he reported his findings on the scope of the Madoff fraud felt footfalls on their graves.

Starting with CNBC, and then going to Matt Lauer, CNN and FOX News, he recounted his story of his discovery of the Madoff fraud, which had been ongoing for many years, when he examined the claimed performance of Madoff’s split strike price conversion strategy, and his quick realization that he claimed performance that would have simply been impossible to produce. He recited the sequence of events that led him to conclude within 30 minutes that Madoff was a fraud. It is where it went from there that no one except people who had faced similar risks could imagine.

I come from an extensive derivative background and I have known everything about the history of conversions and reverse conversions for decades, literally. Like Mr. Markopolos, I had a serious math background, which had been the foundation of my move into the derivatives industry well over 33 years ago. I maintained many of my relationships in the industry as I moved into other areas later in my career, but I found myself drawn back into the space by the short selling scandal.

I knew what I had found in the illegal short selling manipulation scandal, enormous fraud involving all forms of organized crime globally.  What Markopolos did was to confirm that his research led him down the very same rabbit holes, to the same slimy criminals.  Slimy is not the right word though, slick and ruthless are better.

I was made more than a bit uncomfortable when he began to describe how a French nobleman had exposed him to contacts in Europe who warned him that Madoff was involved with serious organized crime, from the Red Mafiya, to the Columbian Drug Cartels, the Israeli Mob, and more. They didn’t hesitate to warn him that if he persisted, he would be at real personal physical risk, along with his family. I was told the same thing as I became more visible, and I was advised to go public as my only form of protection.

My situation mimicked his in other ways. I received repeated anonymous threats, vicious personal slanders from nameless, faceless parties. Harry was working with Federal authorities, and they warned him he would be at personal risk with anyone so powerful and with such enormous financial resources. Again, I did the same thing in taking my concerns to Federal authorities, providing them with rafts of information, but seeing no real elevation of my protection or safety.

Harry finally reached a point he described as being critical. Should he be threatened by Madoff directly or indirectly, he resolved to kill Madoff. He concluded that as well intentioned as the Feds might be, they were only going to be of value to him if the assassin missed. His interviewers were clearly shocked that he had been forced to reach this conclusive assessment of his risk and how to deal with it. He bought a gun and prepared himself. An Army ROTC product, he knew how to use guns and he was prepared mentally to protect his family.

I did the same, getting a Conceal Carry Permit, and upgrading my personal weapons for what I saw to be a real personal attack on me. Years with weapons made me quite comfortable with them, too much so. Others had died mysteriously around my space, and more had been threatened and intimidated. What all of us owe Harry is the harshest clarification that such threats really did exist, after a handful of us had been forced to take the threats to us seriously.

We had caught a sophisticated sociopathic network of people with serious criminal backgrounds stealing hundreds of billions of dollars from thousands of companies and millions of investors, and they had the means, motive and opportunity to make good on their threats. You can ask any police officer, local, State or Federal how you should react to this, and they will most frequently tell you to protect yourself.

I upgraded my alarm system, raised my alertness levels to a nearly hyper level I had in Vietnam, and waited, and wrote, building so much of a record in so many spaces that if anyone wanted to come after me, they would know that many people would be looking over things with a fine tooth comb till they found the perpetrators.

Each reader of this must watch these interviews, and they should keep them. This country is on the edge of an abyss, one where individual citizens are only safe if they make no noise or waves. Most of my peers won’t accept such personal insult.

One side story is that this book, which has all the critical elements of a great crime story, also has victims who were motion picture makers, producers, directors, and more. I am betting that this book will become a movie, and if that happens, we will no longer have to worry about the SEC or FINRA surviving except as highly subordinated elements (read “dogs”) of a much needed overhead Financial Regulatory Authority, one in which they would be held to standards that are a tragedy now.

A lot of lawyers need to be unemployed, with bad references, lost licenses, and no recourse. Until they are held to private company standards of ethical behavior that is spelled out, they will doom this country and everything it stands for. They have breached not only their oath of office, but the public trust. That is an act of sedition on the scale they have been operating on, and until someone of them goes to real jail for real time, they risk being targeted personally with civil litigation retaliation. Madoff was a symptom of a broken regulatory system that he played like a worn-out violin.

Harry called the SEC lawyers idiots, a vicious insult to real idiots everywhere. Regulators with these kinds of attitudes aren’t idiots, they are financial Ted Bundy’s, borderline sociopaths. Borderlines can’t be fixed, not by anything. Let God judge them.

Again, I extend every tribute to Mr. Harry Markopolos. The American people owe him a debt of gratitude. So do I and my compatriots.

**Readers are also invited to visit “Bud Burrell’s Global Markets & Issues Reconnaissance” (at http://www.investrend.com/burrell-recon).**

The last century has seen the global population push past 6 Billion almost without notice or concern. With no focus of leaders of the World on population concerns except from China, current growth rates of population will push global population of the World towards 12 Billion by the year 2050. This projection could give or take a few percentage points absent a global war or other natural disaster that might materially alter the final number.

What sort of World will we live in if this isn’t prevented? Clean water is already becoming a global crisis. Along with this shortage of clean water for consumption and irrigation, there is growing crisis of arable land suitable for production of grains and other vegetable staples, one that increases in severity every single year. 60% of the top soil of the Central Midwestern United States has been depleted by improper and inefficient use and irrigation. The Imperial and Central Valleys of California are being converted to Mesopotamian Desert acreage faster than the conversion of the ancient fertile crescent that once existed between the Tigris and Euphrates Rivers in Iraq.

The Sierra Club wrote a book over 20 years ago titled “Cadillac Desert” about the gross mismanagement of water resources in the fourteen Western States of the US that now reads like prophesy.

What other shortages are extant or projected?

The World’s Oceans are being fished out to a point of not being capable of being replenished. Address the issue of big game fish, and you see a 95% plus drop in their populations in all Oceans, the very fish most eggs come from, particularly Tuna, which don’t begin to breed until they are eight years old. Tuna are on the verge of having been fished out of the Pacific and Atlantic.

The Cod beds of the North Atlantic that fed the modern World for the better part of 300 years are exhausted, and might only be saved by a 5 to 10 year moratorium on fishing in their breeding grounds. This year, there was a dramatic drop in the salmon runs in British Columbia, along with a comparable depletion of salmon and halibut runs in other parts of Canada and Alaska. The latter are the result of commercial fishing fleets using monofilament nylon gill nets that are up to 100 miles in length that the fish can’t see. Where they are used extensively, fish of all varieties simply disappear from the fishing areas, most particularly breeding fish that replenish stocks.

Last year, for the first time in history, more fish farm fish tonnage was produced and consumed than was taken from our Oceans.

Oil fields are being reproduced that were shut in as long ago as 75 plus years ago, mainly for secondary gas yields, particularly from shale formations. This crisis can be addressed, but not by the policies that would block all carbon based energy. The hope here is new exploration techniques that could access stored deep, tight gas at greater depths than have been historically produced.

One crisis I hear too little talk about is mineral production critical to the production of manufactured hard capital goods, electronics and consumer devices. While only one-third of produced Gold is used in manufacturing, principally of electronics, global demand for this space is expanding faster than new production can be brought on line. Increases in use of and demand for Silver as a substitute for gold and for numerous other industrial applications also continues to expand much faster than production can accommodate. The same applies to Copper, which, as the third world is made more prosperous, will more than triple the industrial and other uses of copper in wire, coatings and more, to the tune of 3 times the current demand in the next 20 years.

This recitation could go on and on. It is not rocket science to understand where this all leads. It is to conflict over access to and control of these scarce and depleting resources. The difference between now and the 1700’s when Beaver virtually were trapped out of existence for a hat fetish in Europe is that this time, the battle is for nations’ very survival, not some fashion trend.

I have studied the causes of War going back to ancient times, and I tell all of you that their current multitude of shortages whose existence are literally reaching a tipping point is that various nations and unions will ultimately find that there is no alternative to resolving the conflicts of one’s needs over another except War. War becomes more likely as life is cheapened by its very availability, and ultimately, leaders decide that losing life if is a better solution than losing assets.

The infamous Fabian Socialists campaigned for eugenics pled this argument, as did every Socialist monster of the 20th Century. Reversing the logic, could China, which now has 21% of the World’s population, but only 7% of its arable land, have survived without the population losses it suffered from its Revolution, and the 300 Million Chinese estimated NOT to be been born by reason of its birth limitation policies? I have many people I trust who agree that this growth, had it been allowed, would have buried the Chinese economy, and it would have led the World to general war.

Logic determines dictates that cannot always be seen to be either humane or moral. We are at a tipping point with population, one that determines that tough decisions will have to be made to not only limit population replacement, but ideally, a reduction in overall population of the Globe.  I did not think I would live to see this, but the next twenty years will see an Armageddon fought over economic resources with the one disposable whose value is lessened with every surplus birth: Human lives.

I once observed that there was a very fine line between non-medically necessitated late third-trimester abortions, and putting down “old people” because society can’t afford them. We heard many of these same words over these very policies in our running debate over health care reform. In a democracy, what law doesn’t address are the rights that belong to the people and the States, not to the Federal Government. You must assert both your opinions and your rights. It is your life you are debating on.

Readers are also invited to visit “Bud Burrell’s Global Markets & Issues Reconnaissance” (at http://www.investrend.com/burrell-recon).

A week ago Friday, Glenn Beck produced his first documentary, and it was technically and professionally outstanding. It recorded over 4 Million viewers, the largest number ever recorded for a Cable documentary in a traditional News time slot. This documentary was intended to show the monstrous human price of the liberal secular progressive movement in the 20^th Century, stimulated by the works of Marx and Engels. It was a staggering dismissal of the true control motives of liberal secular progressives in the forms of the revolutions and Governments produced by Stalin, Hitler, Mao, Castro and Che and the 200 Million plus lives they took in unprecedented wholesale murder to achieve their political objectives.

The first effective point made in the presentation was that the word liberal was co-opted by leftist radicals, in that the people who led our revolution were self described liberals in their time. Conversely, the progressive movement that came out of the socialist thinking of Marx and Engels needed credibility, and they took this word to their breast to legitimize their existence.

In fact, as Beck demonstrated, beginning with Marx, progressives were racist savages, whose face was first seen in this country with President Wilson, a noted anti-Semite and race baiter, who fully believed in the extermination of “inferiors” without regard to race or religious background. Wilson was the first truly offensive Eastern Establishment Liberal, who viciously opposed the right of women to vote among his offensive positions.

The true story of the agendas of hard left liberal secular progressives was demonstrated by Trotsky (who lived in Brooklyn under the name of Leon Bronstein before returning to Russia) in the Russian Communist Revolution of 1917. Some 40,000 active Communists successfully mounted a revolution that took over a country of 100 Million people, and stretched across 8 time zones. How they did that is its own story, but what they did after they seized control is the true story.

First under Lenin, and then under the brutal dictator Stalin, the Communists initiated programs of mass annihilation of anyone who stood in their way, beginning with the slaughter of the White Russians, which essentially wiped them out as a racial segment.  The concentration on the annihilation of White Russians extended into foreign countries, with Stalin ordering the assassination of White Russians who had escaped his net, the last of which was in 1952. He bragged of the slaughter of 20 million White Russians later in his rule.

Next was Stalin’s collectivization of Russian farms, with a particularly savage focus on the bread basket State of the Ukraine, with its incredibly productive independent grain farmers, the “Kulaks”. In the year of 1932, to accelerate the collective farming plan, Stalin simply chose starve to death 10 Million Ukrainians to death in an unprecedented slaughter to that date, so vicious it was given a name, the “Holomador”.

I heard these stories from children of Ukrainians lucky enough to escape to the US, and from a second generation Ukrainian-Canadian whose father lived through this nightmare as a child. This was the same country whose nationals welcomed the arrival of German troops as liberator in World War II, only to be slaughtered again in horrific numbers, over 5 to 8 Million murdered.

In 1936, Stalin began the purges of the Russian military, killing without mercy, all but wiping out the officer corps of the Russian Army. In a little over 2 years, 5 million would die in Stalin’s attempt to “freshen” and “cleanse” the Communist revolution. When he was through, only one regimental commanding field grade officer was said to have survived. But he didn’t stop there.

Stalin was an equal opportunity monster, killing anyone who blinked at his political agenda and plans for a Soviet Socialist State. He slaughtered millions of Armenians, his own fellow Georgians, Turkestans, Poles, Kurds and millions more, some 60 Million all told before World War II started.

The commonalities between the German Nazi’s and the Russian Communists were those of one mirroring the other. Both were targeted on racial slaughter and discrimination. Goebbels and Molotov signed a mutual non-aggression pact in 1938. At the same time, Hitler and Goebbels came together with the need to distinguish their socialist agenda from that of Stalin, settling on the persecution of Jews as a differentiating factor. Shortly after signing this document, Germany and Russia invaded Poland, splitting it down the middle and beginning the slaughter of over 10 million Poles by the end of World War II.

To my mind and what all must know, this common theme of mass genocides was shared by all socialist states in the nations controlled by the Communists, Socialists, Nazi’s, and other Marxist-Lenin revolutionaries. But an eerie proof of their common grounds pointed out so effectively by Beck’s documentary came in their adaptation of common symbols, political themes, posters, and colors, almost across the board. German and Russian (and ultimately, Chinese) themes were virtual mirrors of one another. There was a focus on their common choice of Socialist Red Flags, on nearly identical posters supporting their jingoism and racist attitudes, their uniforms, on political speech themes on the superiority of socialism to capitalism, and much, much more.

Between Hitler’s slaughter of the Jews, German Christians, and helpless minorities of his own and adjacent countries, Stalin’s rolling murders of his own people down to his personal staff almost every three years, and Mao’s Revolution, Great Leap Forward and 1967 Cultural Revolution, over 200 Million men, women and children were murdered, starved, shot, hung, gassed and worked to death in the name of Socialist Progressive Elitists.

There was more to this entire story, far more. The point of this review was that I knew all of these stories for decades before this ground-breaking piece of documentary film, and those stories have never been so focused in concentrated form on the risks we face from hard left liberal progressive socialist/communist elitists.

I thank my God that I was born and raised in the United States, rather than any other country. Anyone who doesn’t feel that way should be shown the door, or offered other less attractive options. Our country was founded by a bunch of very bright, liberal, old white guys who were both religious and terribly conscious of the role of history in other experiments in governance means and methods. God bless them and God bless all of us.

Make the time to see this documentary if you want this history imprinted on your consciousness and that of your family. In a democracy, every person, no matter how stupid or short-sighted, is entitled to be as dumb and uninformed as he or she chooses. I beg you choose not to be one of those uninformed.

“There are more instances of the abridgment of the freedom of the people by gradual and silent encroachments of those in power than by violent and sudden usurpations.” James Madison, in his speech to the Virginia Ratifying Convention, 1788.

Since this country’s very inception, there has been a steady attack on the individual freedoms as delineated in the Bill of Rights, and of our Constitution as a foundational document. This attack has accelerated in the 20th Century, a period during which leftist radicals, greedy bankers, and revolutionary socialists have chipped away at the very core of our Constitution, to include wholesale infringements of the 1st, 2nd, 4th, 5th, 6th, 9th and 10th Amendments, among others. The objective of these infringements has been to dramatically expand the power of our Federal Government, while reducing and limiting not only individual rights, but also the rights and privileges of States.

Beginning with the concepts of Marx and Engels, our Country moved on to establish in 1913 a central bank with total control of our currency and banking, set up as a private entity/enterprise owned and controlled now by the World’s banks and investment banks, and US only secondarily. They also chose 1913 to institute a personal income tax in individual US citizens, an act so unconstitutional, there is today no legal affirmation of its right to be exacted.

Generally, those favoring a more powerful central government and many socialist agendas have moved very gradually, expanding their powers with under-handed dealing and misdirection. A simple example is the institution of the Social Security program in the 1930’s. Originally, the tax was to be imposed only at a rate of 1% of income up to $1400, and participation was strictly voluntary. In these years, the life expectancy of an American averaged around 54 to 56 years, and this program did not begin to payout benefits until age 65, which most citizens did not make it to.

When instituted, politicians then in power denied any contingent risk in these numbers, just as they had discounted the real potential impact of a minimal personal income and estate tax in 1913. Everyone knows how both of these programs have worked out, exploding past any actuarial tables ever compiled at the times, always relentless in the failure of promises of future costs.

The politicians who promoted these programs would deny lying to their constituents, but any objective eye would see painful failures to make material disclosures, repeated and calculated “omissions” in other disclosures, and denial of any responsibility for having had anything to do with programs that later spun out of control, into unfiled bankruptcies. If a US civilian were ever to do such shoddy and misleading work on any financial matter, they would face immediate arrest on a plethora of criminal and civil charges, arrest, and certain imprisonment.

If you stop there, it is bad enough, but if you add on to the list Medicaid, Medicare, the Post Office, Amtrak, Fannie Mae, Freddie Mac, Ginnie Mae, the FHA, and more, you post a record of fiscal irresponsibility unmatched by any other enterprise or Government in the history of the World. The old rag that “We are from the Government and we are here to help you” has been bastardized so badly, that they have dragged down our legal and financial systems like insane drowning victims attacking their rescuers. This has to be stopped, no matter what the price.

Social Security was a good idea bastardized by greedy politicians, who set up a trust fund to insure its security, only to raid it some thirty plus years later, under the faux flag of giving it more substance to it by moving its assets into the General Obligation Fund of the US Government, thereby making it invisible. A similar stunt was pulled with Medicare, another good idea struggling to survive being struck down by more political greed, and now facing another unfiled bankruptcy.

Throughout these repeated acts of legislative sleight of hand, trickery and misdirection, the independent powers of the States and the US Citizenry have been savaged as if they were being fed on by a school of tiny but vicious piranhas. Our systems bleed from a thousand tiny bites and cuts, as our Constitution has been savaged on a thousand levels by an organized criminal conspiracy whose only intent was to strip the assets from our States and citizens, to achieve a goal of socialist domination and total control.

Did our Government leaders and founders fear just such a series of events? You have  only to read the quote I open this essay with.

To restrain these baser instincts of political bodies and politicians in particular, our forefathers legislated laws to protect us from just such scandalous malfeasance, making such conspiracy to defraud the US of its financial assets not just criminal, but the top of the totem pole for penalties, an act of sedition, a Class A Felony punishable by 25 years to life or death. Have we seen these laws properly applied? Not a chance.

The scoundrels here have involved so many moving parts of our economy in their scams, they have left no one clean, not even many parts of law enforcement, putting more and more such units under political control and influence.

This didn’t happen all at one time, but happened in thousands of actions in every imaginable jurisdiction in this country over generations. It has left our national respect for the law and Government in a toilet of devious construction, with multiple flush handles connected by invisible strings to scavengers, so much so that the thieves outnumber the populace. That fact is a formula for catastrophe.

It is worsened that a very small, very hard left socialist fringe of our political spectrum are “true believers” in the concept that the American people are so inferior that they can’t survive without the controlling and directing hands of socialist/communist demagogues, of the very nature that murdered over 200 Million people in the 20th Century. Each of us is ultimately accountable in our system. Either take the country back from these vermin, or suffer their fate. There won’t be any compromise. Take back all your rights, or lose all of them sooner than you can imagine. The hard left socialist progressives seek the total collapse of capitalism, on the bet that they can emerge and take control of the ashes with a total socialist system. I am not wishing them luck, but rather damnation.

I have watched the conduct of a figurative nest of journalists/bloggers/bashers/critics in a series of attacks on the targets of short raids many times over the past 15 years. The questions that never seem to be answered are the most basic? How do these parties pay their bills? Who is paid or not paid to the benefit of what organization, entity, or agency? If you think so many man hours could be devoted completely pro bono to analysis of mostly small companies balance sheets and management, I encourage you to look deeper.

I have watched the unrelenting attacks against companies who have dared to challenge these self-described vermin in the Courts. Without exception, the same attackers’ names appear repeatedly in such a consistent pattern that it cannot be a random occurrence. I have seen the work of internet sleuths tracking the patterns of relationships between these journalists and notorious market manipulators, including everyone from major hedge funds, to a community of professional journalists, unpaid web site and message board bloggers, compensated bashers, criminal rigged research organizations, and eventually to the federal agencies we depend on for oversight of our markets and the manipulators to regularly savage our assets.

The question “Quo Bene?” is older than our society. Thousands of years ago, corruption was cited that was tracked back to its sources by the simple method of looking first at who benefitted from the acts of corruption. This was true from Egypt, to Greece, to Rome, to modern times. The “contracts” between these parties track to not only involved cash considerations, but also to professional support, school access for related parties, legal partnerships, and more. Predation consumes assets as its cost of doing business, and those assets must come from some source.

Why haven’t those in charge asked these questions? Indeed, the SEC and FINRA have protected their related external supporting parties to this predation from any fair, open and balanced inquiry hundreds of times over the past decade. Why is this so?

Our Congress has been little different. Look at the not so simple protection afforded to Fannie Mae and Freddie Mac by SEN Christopher Dodd and Representative Barney Frank. Look at the protection afforded the support of ACORN by an unending list of liberal, secular progressive legislators and regulators. Can’t you see the patterns?

I have followed the slanderous work of many of the so-called top journalist and bloggers in their never ending attacks on certain key companies, including Overstock, Nanopierce, Taser International, and more. In most of these attacks, there is a clear beneficiary that attaches to the bashing directed at the targets, most commonly from short sellers and/or corporate raiders.

The list of questionable bashers includes many whose ethics have been repeatedly questioned. They include financiers and conventional bankers, broker-dealers, private equity firms, day traders, speculators, and other entities that have made a very nice living, thank you, by acting as the facilitators of the shorting industry, much like shovel salesmen to gold miners in the California, Colorado and Alaska Gold Rush. Indeed, on past examination, many of the great fortunes in Energy accrued to the oil-field services and other technical service providers, such as Halliburton and Schlumberger.

If you agree there is a problem, then we all see the need to resolve the situation, whether or not some of the worst will claim, typically, that they are innocent victims themselves, and that they could never imagine that what they were doing was contributing to, aiding and abetting an on-going criminal enterprise, RICO at its optimum and most disgraceful.

I have reported this activity to the IRS for its most egregious aspect, which is willful and criminal tax evasion on a scale without precedent in Global History.  Attributing only 20% of the last two raids on our markets in equities only, I come up with a number exceeding $14 Trillion moved offshore without tax consequence.  And this does not include the amounts stolen from our currency value, bonds, physicals, futures, forwards, commodities and other derivatives, including the largest derivative of all, Credit Default Swaps, now approaching $700 Trillion in face value.

The GDP of the United States stands at $14 Trillion and the GNP at $15 Trillion.  It is from this basin that all wealth and public expenditure flows under a rational scenario. If you add our national debt to the net present value of our forward entitlement liabilities, you are looking at a total exceeding $105 Trillion. Where does the American public think this is going to come from?

This math doesn’t work, period. We are making false promises to future generations that can never be paid for except with our country’s future and freedom. This isn’t something that requires an MBA or PhD to understand. Unless draconian action is taken to reel in this insanity, this country is headed into economic collapse that could parallel that of Haiti after the earthquake, with a currency of less value than the Peso, and an unprecedented condition of civil disobedience never before seen in World History. Tell your elected representatives you have had enough of misdirection, half-truths and out-right lies. Yes, Lies. The word every journalist and politician hates will be the cause their end.