* Introduction
* Swine Flu, Nature or Genocide?
* Glimpse to the Future, a Possible Ugly Sight
* Challenge Against the US Federal Reserve
* The Wall Street Bank Fraud Cover-up

Issue #62
Jim Willie CB, 
“the Golden Jackass”
14 May 2009

◄$$$ CORRECTION ON AMMUNITION $$$. My April report has been corrected by a subscriber on some gun/ammunition information, in two respects. Many efforts are indeed underway to prevent the police and USMilitary from being targeted and killed by urban citizens in defiance. This could occur before or after a period of martial law imposition. Hundreds of thousands could be slaughtered after full scale riots begin, in my opinion. My report stated that a project exists to put ID on bullets. That bill was defeated a few years ago and has been proposed once more now. Let it be known that RFID (radio frequency identification) on bullets is a technology not yet available. Also, the USDept Defense ordered a block of recycling for spent used brass bullet casing shells, but the USSenate overturned the order within days. The USCongress makes the laws, not the Pentagon (at least until martial law is imposed). The subscriber pointing out the correction advised to look for verification information on the National Rifle Assn (NRA) website, a good source of accurate news (CLICK HERE). On a related topic, another person informed me that in WashingtonDC, a bill has been proposed for newly manufactured ammunition sold to the public. Under the proposal, manufacturers will make bullets with caps that fail to fire properly after two years. The new bill would become effective in 2011, not yet law.

◄$$$ ISLAM WILL TAKE CONTROL VIA DEMOGRAPHICS $$$. The world is experiencing tremendous demographic changes, in particular Europe. The Islamic segment is fast overtaking the natives, especially in France. Nature dictates that a stable culture can sustain itself through majority numbers only if its fertility rate is at least 2.1 per family. The man & woman must replace themselves and a little more. The European Union (31 nations) has a 1.38 fertility rate, woefully inadequate to sustain itself. Thus in a few decades, the EU nations will certainly undergo a radical shift in demographics, whereby the native core group will fade away. The Europeans and French in particular run the risk of seeing a Moslem majority in future years. The fertility rates across Europe are low, like 1.8 in France, 1.6 in England, 1.3 in Greece, 1.3 in Germany, 1.2 in Italy, and 1.1 in Spain. Both immigration and higher birth rates result in a tremendous growth for Moslems. In Europe since 1990, over 90% of immigrants have been Moslem. Nowhere is the trend more pronounced than in France. Its Moslem fertility rate is an astounding 8.1, almost 5x greater than the national average. In Southern France, mosques outnumber churches routinely. Over 30% of the French population under 20 years of age is Moslem. In the Netherlands, over half of new babies are Moslem, certain to yield a new majority within 15 years. In Belgium 25% of the population is Moslem, but 50% of new babies are Moslem. The European continent has 52 million Moslem inhabitants now, a number expected to double within 20 years. The Vatican reports that in recent months, the Islamic population worldwide has now exceeded the Catholic population. In fact, within five to seven years, Islam will be the dominant religion in the world, at least in sheer numbers. As footnote, the US fertility rate is only 1.6, but higher at 2.11 with Latinos. The Canadian fertility rate is 1.6, which ensures that the US and Canadian cultures are fast losing dominance. See a video clip (CLICK HERE). See an interesting world odometers for population, economics, media, environment, food, water, energy, health (CLICK HERE).


◄$$$ SWINE FLU SOURCES REEK WITH SUSPICION $$$. This is a topic difficult to be purely objective about, since we are all placed at risk if a pandemic spreads across several continents. Any intentional dissemination is pure genocide and heinous in its crime. For years, information about influenza research designed and created as weapons has circulated. The USMilitary has a wide variety of exotic weapons, and huge budgets to develop them. At the same time, information about a sinister group desiring a severe reduction in world population has also circulated; they capture my attention. However, in the last year, accounts have escalated. Nobody can prove motive, but timing has always been linked to the ruin of the Great Empire under the United States and United Kingdom rule. The word is that the US-UK, in particular the Trilateral Commission folks, and the Bilderberger folks, wish to change the chessboard into a framework that they can dominate. My sources are clearly incomplete, but they are as diverse as they are disturbing. Nothing has caused me more personal inner worries than influenza pandemic in my entire lifetime. What follows is a mix of my beliefs, conclusions, and expectations, combined with information from very well informed experts coming from both the banking and military arenas. People should do their own research, reach conclusions, and take protection as they see fit. Mine is not a comprehensive treatment of the controversial and volatile subject. My hope is to provide a useful framework to give many facades some exposure. My personal background is not only math, statistics, and economics, but also chemistry, biology, physics, astronomy, and pharmacology. A bizarre twist involves precious metals. Not only would funds flee into gold & silver during a panic, but certain silver treatments (ionic silver, even colloidal silver) have been proved effective in killing even dangerous viruses.

The strain of Swine Flu spreading around Mexico, the United States, and Europe, along with certain other locations, is not a natural mutation. Nature has no mechanism for a virus to contain chromosomal characteristics linked to multiple species, a fact never in dispute by biologists and medical professionals! Nature does not permit the mix of species, only of cousins within species. This Swine Flu has links to swine, birds, and humans in its genetic makeup. Only one explanation carries any credence and weight whatsoever. This flu strain was produced in laboratories. For years the USMilitary has been involved in research to produce advanced forms of viruses, available for usage as weapons. Of course, in defense of liberty and to keep America secure. Does anyone find it curious that immediately after the Tea Parties gathered some momentum nationwide in the United States, forcing attention to high taxes and overbearing USGovt authorities, that the Swine Flu outbreak occurred? The movement is stopped in its tracks, as public gatherings are suddenly discouraged. The Tea Parties next round of demonstrations is planned to focus on bankers, their fraud, and their cause for financial misery to US citizens!!!

◄$$$ THE BIG PICTURE AROUSES GREAT SUSPICION $$$. In order to obtain a better perspective on the topic of influenza, one must step back and observe a sequence of diverse events over several years. Let’s begin back a few years ago and work forward.

1)      From years 2001 to 2005, a total of 40 American micro-biologists met with unusual deaths. They were all violent, mysterious, and worthy of police investigation. They included jumping off bridges, car wrecks, hangings, and much more. They had all left their conventional job posts and worked on some ‘hush hush’ official projects, according to family members. The projects related to bio-terrorism, influenza epidemics, and anthrax.

2)      In the last few years it has become widespread knowledge that the USMilitary Microbe Labs have been working on intensive USGovt projects to produce weaponized viruses. Their work has a ratcheted progressive element to it, in that as new strains are encountered, they can successively be layered to produce exponentially more powerful strains of viruses. The dead micro-biologists probably were involved with the CIA virus research located in Fort Dietrich Maryland. Reports have come that corpses buried in Alaskan military facilities had been exhumed, where 1918 Influenza victims were stored. Use the word ‘store’ rather than ‘bury’ since Alaska is more a freezer (preservation) than a cemetery (decomposition). Virus samples were extracted from Alaska.

3)      The Federal Emergency Mgmt Agency has oversight in official epidemic reaction. FEMA strangely ordered a few million plastic coffins in 2006. The request perplexed the USCongress, which received no sensible reasonable explanation for the need. Plastic coffins are much cheaper for mass burials, and they can be hermetically sealed. The public has stirred up many questions on the need also, along with websites.

4)      In 2004, the Iraq Reconstruction (slush) Fund directed $2.3 billion to Henry Kissinger to continue his fine work. He is a principal architect and spokesman for the secret project to reduce the world population by at least 50%, and possibly by 90%. His designs are consistent with the Gladstone Project. The Iraqi Fund has $50 billion reportedly missing, so the allocation to Kissinger is part of many improper usages.

5)      Two weeks after President Obama visited Mexico City, a virulent Swine Flu outbreak occurred. Obama arrived along with 100 in his diplomatic and security entourage, for meetings with the Mexican Govt and their security agencies. They had a broad agenda, which included discussions for strategy to fight the flow of weapons and drugs across the US border with Mexico.

6)      Numerous dignitaries have openly discussed the merits of reduced global population. They exhibit absolutely no concern over deaths on a massive scale, absent consciences. The list includes Prince Philip of England, Henry Kissinger, Ned Rockefeller, and former VP Dick Cheney, in addition to dozens of others with similar sentiment.

◄$$$ VACCINE MAKERS MUST BE GIVEN GREAT SCRUTINY $$$. One should cast great suspicion on vaccine makers, since they harbor the greatest potential motives, PROFIT and FAME from cure. Last February, Baxter Labs in Austria was in the cross hairs of attention. Baxter distributed active avian flu virus to twelve nations in the form of vaccines, a claimed accident. Such ‘accidents’ are inconceivable when biohazard protocols are used, by legal requirements. The Canadian authorities halted the spread and raised attention to the incident. Baxter is in the business of producing vaccines for eventual sale in grand revenue streams. Imagine giving a person the actual virus when expecting to provide protection. That was three months ago, again an event forgotten by the news networks as the best preface imaginable.

Vaccine makers are often large pharmaceutical firms. They have a difficult task. In order to make their vaccines as potent as possible, they must incorporate diverse viruses into their design and layered sequences. The more viruses that contribute the specific vaccine, the more potency the new vaccine has for protection. In the process, however, the vaccine makers are in possession of extremely dangerous and possibly deadly virus strains, kept in guarded sealed cabinets. So if an observer asks the simple question of what party has the virus in possession, the answer is simply the vaccine makers. Also, vaccine makers are assisted by the various centers for disease control. The US office is in Atlanta. Every major nation has such an disease control center. Cooperation exists on a routine basis between these disease monitor and test centers and the vaccine makers, so that they can make the best possible vaccines. This invites collusion.

Profit is a natural motive for distributing the virus disease. Vaccine makers stand to profit in the billion$ if their particular vaccine is required on a mass scale, since their particular vaccine is designed for treatment against that virus infecting the public. This direct linkage seems to escape the media networks and legal authorities for a short list of suspects. The authorities in knee-jerk fashion call the outbreaks natural. Dr Leonard Horowitz provides a detailed argument against Novavax in Europe, and its medical doctor CEO. Their lab has worked with the Atlanta Center for Disease Control, as some suspicious events have taken place. Check out his warning and exposure of the scummy relationships involved (CLICK HERE). In my view, these are criminals at work. It is possible that this current Swine Flu event is only a prelude, to condition the public, to gather stronger mutations of the virus, and to construct a more powerful strain later.

How would such a virus be distributed, like in Mexico City? The easiest methods are the simplest methods, surely pernicious. The medical industry every day and every week distributes hundreds of thousands of vials for injection, like for penicillin, tetanus, cortisone, insulin, morphine, vitamins, numerous vaccines, and other drug treatments. They are all legitimate. My conjecture is that 1% to 3% might contain virus infection organisms for areas targeted, like Mexico City. The Swine Flu was not a naturally occurring event. The distraction event was to report (whether actual or not) a simultaneous or preceding event in Southern California for a slight variation of the Swine Flu. The virus in question cannot be put on park benches, subway railings, department store doors, and public water fountains for dissemination. Virus cannot survive in an open environment like that. Some mainstream folks actually believe the vaccines accidentally contain active viruses, not by intention, and cannot be ruled out as the source. This is pure nonsense. Those in mainstream also claim that the Swine Flu can originate from farms, where livestock live in unsanitary unsavory conditions. This is also nonsense, disputed by biologist professionals who point out the unique strain must come from an advanced laboratory. The new networks do NOT touch this subject at all, since it is so damning of authorities.

◄$$$ CONDITIONS IN TEXAS ARE WORSE THAN REPORTED $$$. The US news media is following the directives of the USGovt authorities, probably FEMA and Homeland Security, which intend to minimize the problem and avoid any panics. The public will continue to be kept in the dark, to a large extent. In my view, Mexico is Ground Zero, both Mexico City and the popular resort Cancun. No other resort south of the border has been implicated or identified as a source.

Dr Marcus Gitterle is an emergency medicine physician based out of New Braunfels Texas, a town east of San Antonio. He sent out an e-mail alert to his many patients, which contains several stunning claims about Swine Flu. He believes that officials have sought to keep information from the public. My access to his note came on May 2nd. He wrote:

“The actual number of confirmed cases of Swine flu is 10 to 25 times worse than has been reported. People are not recovering easily, as has been claimed. Many Americans are in fact seriously ill. Quick access to drugs like Tamiflu and Relenza, as well as ventilators, is preventing fatalities on the scale of Mexico, but within a couple of weeks, regional hospitals will likely become overwhelmed. Emergency Rooms south of here are becoming overwhelmed. And I mean that, already. It is coming in waves, but the waves are getting bigger. President Obama is being advised to declare a national emergency, and that this could happen within the next 48 hours.” By the way, former USDept Defense Secy Donald Rumsfeld is a Board member of the firm Roach Labs, which produces Tamiflu. How convenient!

Clearly no emergency was declared, since no panic was desired. Gitterle listed numerous important guidances, directions and suggestions. Since this is so important and loaded with risk, while information from public authorities is so lacking, permit the note verbatim from Gitterle to his patients, intended for wider distribution, as seen fit (in his words). THE LETTER IS HIGHLY INFORMATIVE AND USEFUL. He refers to the Center for Disease Control (CDC) and the World Health Organization (WHO).

His credentials: Dr Marcus Gitterle, Emergency Medicine, New Braunfels, Texas.

Subject: Flu Update from Dr Gitterle

“After I returned from a public health meeting yesterday with community leaders and school officials in Comal County , Heather suggested I send an update to everyone, because what we are hearing privately from the CDC and Health Department is so different from what you are hearing in the media. Some of you know some or maybe all of this, but I will just list what facts I know.

- The virus is infectious for about 2 days prior to symptom onset

- Virus sheds more than 7 days after symptom onset (possibly as long as 9 days) (this is unusual)

- Since it is such a novel (new) virus, there is no ‘herd immunity, so the ‘attack rate’ is very high. This is the percentage of people who come down with a virus if exposed. Almost everyone who is exposed to this virus will become infected, though not all will be symptomatic. That is much higher than seasonal flu, which averages 10-15%. The ‘clinical attack rate’ may be around 40-50%. This is the number of people who show symptoms. This is a huge number. It is hard to convey the seriousness of this.

- The virulence (deadliness) of this virus is as bad here as in Mexico, and there are folks on ventilators here in the US, right now. This has not been in the media, but a 23 month old near here is fighting for his life, and a pregnant woman just south of San Antonio is fighting for her

life. In Mexico, these folks might have died already, but here in the US, folks are getting Tamiflu or Relenza quickly, and we have ready access to ventilators. What this means is that within a couple of weeks, regional hospitals will likely become overwhelmed.

- Some of the kids with positive cases in Comal County had more than 70 contacts before diagnosis.

- There are 10-25 times more actual cases (not ‘possible’ cases, but actual), than what is being reported in the media. The way they fudge on reporting this is that it takes 3 days to get the confirmatory nod from the CDC on a given viral culture, but based on epidemiological grounds,

we know that there are more than 10 cases for each ‘confirmed’ case right now.

- During the night, we crossed the threshold for the definition of a WHO, Phase 6 global pandemic. This has not happened in any of our lifetimes so far. We are in uncharted territory.

- I expect President Obama will declare an emergency sometime in the next 72-96 hours. This may not happen, but if it doesn't, I will be surprised. When this happens, all public gathering will be canceled for 10 days.

- I suggest all of us avoid public gatherings. Outdoor activities are not as likely to lead to infection. It is contained areas and close contact that are the biggest risk..

- Tamiflu is running out. There is a national stockpile, but it will have to be carefully managed, as it is not enough to treat the likely number of infections when this is full-blown. I don't think there is a big supply of Relenza, but I do not know those numbers. If I had to choose, I would take Relenza, as I think it gets more drug to the affected tissue than Tamiflu.

- You should avoid going to the ER if you think you have been exposed or are symptomatic. ER’s south of here are becoming overwhelmed (and I mean that) already. It is coming in waves, but the waves are getting bigger.

- It appears that this flu produces a distinctive "hoarseness" in many victims. The symptoms, in general, match other flu's; namely, sore throat, body aches, headache, cough, and fever. Some have all these symptoms, while others may have only one or two.

- N-Acetyl-Cysteine -- a nutritional supplement available at the health food store or Wimberley Pharmacy, has been shown to prevent or lessen the severity of influenza. I suggest 1200mg, twice a day for adults, and 600mg twice a day in kids over 12. It would be hard to get kids under 12 to take it, but you could try opening the capsules and putting it on yogurt. For 40 pounds and up, 300-600 mg twice a day, for less than 40 pounds, half that.

- Oscillococinum, a homeopathic remedy, has been vindicated as quite effective in a large clinical trial in Europe , with an H1N1 variant. You can buy this at Hill Country Natural Foods, or the Wimberley Pharmacy.

I will try to keep everyone posted if I have any new information. Meanwhile, don’t be afraid just avoid infection. The fewer people infected, the easier it will be for our public officials to manage it.

--- Marc”

◄$$$ CONDITIONS IN MEXICO CITY ARE WORSE THAN REPORTED $$$. A very reliable source on banking and gold trade matters, with associations across the globe on commercial matters, contacted me early in May. He prefaced his remarks by saying the source of his information was a person in the medical field whom he has known for almost 20 years, of high integrity. The man spent a week in Mexico City gathering information about the hospitals, official response, and the disease spread. He has been in touch with many people directly, and has made his own personal observations. As best as can be transcribed from the conversation and my notes, here are his main comments from May 2nd:

Mexico City has 26 inhabitants across the entire metropolitan area. No cellphones work in the entire city. People are hiding in their homes. The social fabric is breaking. A total of 10 to 20 thousand cases of Swine Flu have been realized, with actual numbers difficult from lack of verification except for symptoms observed. In all to date, several thousand are dead from the virus, not the mere 8 cited by the Mexican Govt. One case is an Obama secret service guard. There are 50 thousand restaurants in Metro Mexico City, which do $200 million in business volume per day. They are ALL closed. Numerous major prisons are located in the Metro Mexico City area. They are the site of violent riots right now, with fires and numerous deaths. They have been denied food & water for one full week, and are now surrounded by military soldiers. Chaos has broken out in the prisons.”

◄$$$ THIS SWINE FLU HAS NOTHING TO DO WITH SWINE $$$. Some technical information on Influenza Swine Genetics is cited below, with medical and biological professionals offering dissent to counter the official information given to the public. Their account supports indirectly the viewpoint that this Swine Flu was created in a laboratory. See the following article from the New York Times entitled “Virus’s Tangled Genes Straddle Continents, Raising a Mystery About Its Origins” for much more information (CLICK HERE). An excerpt is provided, with quotes within the segment underlined:

“The flu that is moving through humans appears to have a combination of genes from two normally separate sets of pigs, those from the Americas and from Eurasia, scientists say. However, it is unknown how those pigs met, and there is not yet any genetic proof that this particular flu was ever in a pig… The federal Centers for Disease Control and Prevention announced last week that the new virus had pieces of North American swine, bird, and human flus and of Eurasian swine flu. Although rumors questioning that are circulating on the Internet, most geneticists believe it is correct. It is essentially a blend of Eurasian swine flu and North American swine flu, but Western hemisphere strains have had an avian segment on the PB2 gene for at least 10 years and a human component on the PB1 gene since 1993, said Henry L Niman, a biochemist who tracks flu mutations. ‘The original report is correct,’ Dr Niman said of the CDC’s analysis. The rumors, he added in an e-mail message, stem from ‘someone who really doesn’t know how to analyze sequences (or is being misquoted.)’ It presumably is in pigs somewhere, perhaps in Mexico. The 1918 human H1N1 established itself in pigs by 1930. But, as Dr Niman pointed out, it could be only in humans now, or even in a ferret. The next question, said Dr Robert G Webster, a virologist at St Jude Children’s Research Hospital, is: “How did this virus get in? Is Mexico importing swine from Europe?” While movement of live pigs between Canada, the United States, and Mexico for fattening and slaughter is routine, legal movement of pigs across oceans is rare. Pigs carry many diseases, so importation requires expensive tests and quarantines. The only reason to bother would be for breeding, not meat.”

◄$$$ BIG PHARMACEUTICAL FIRMS HAVE ALREADY PROTECTED THEMSELVES FROM CRIMINAL LIABILITY $$$. Dr TenPenny provides some interesting intriguing background on liability for Giant Pharma firms. They have covered their tracks, might be preparing for the future, and have successfully enlisted the aid of USCongress. The terrorism scare fits well with the legislation, a necessary element. My view on the Islamic terrorism story is that it is a pure concoction hoax by the USGovt under war and profiteering motives, as well as dismantlement of the Constitutional Republic of the United States. That opinion is based on personal conversations with at least a dozen informed and connected people within the banking community and military special forces. If Big Pharma labs are the culprits who disseminate and distribute the deadly influenza viruses, then they want to ensure no legal liability or criminal liability. Instead, they want to guarantee profit and immunize themselves from costly lawsuits. One could say the ground was laid for the weaponized influenza events, if they are to come. See the USCongressional Bill for details (CLICK HERE). Here is a background account by Dr TenPenny:

“In 1976, the Federal Insurance Company advised Merck that all liability, indemnity, and defense costs associated with claims arising from the new Swine Flu vaccine would not be covered by its insurance plan. Having absorbed the embarrassment and the economic losses caused by the polio vaccine in 1955, the pharmaceutical industry and their insurance providers were determined that would not happen again. This time, there are no worries. Drug companies have completely covered their tracks, and when reports of adverse event and deaths from the new Swine Flu vaccine start to roll in, they will be smiling all the way to the bank. Flu shots were added to the Vaccine Injury Compensation Table in 2003, meaning, if anyone is injured, a claim needs to be filed through the Federal Court of Claims and it will be years before it is adjudicated. And that is just the basic layer of protection. All the drug companies have to do is whisper that this may be a ‘terrorist attack’ and they are home free. Before he was voted out of office in 2006, then-senator Bill Frist (R-TN), a physician, drove through a bill that gave drug companies more immunity than any bill ever passed by Congress. The legislation, referred to as ‘Division-E’ was tacked on to a Defense appropriations bill in the final minutes of the Congressional sessions before the Christmas recess. This bill provides at least four sweeping provisions that protect the large firms against wrongful death, injury, psychological damage, or loss of property or business.”


F. William Engdahl “Flying Pigs”

F. William Engdahl “Flying Pigs, Tamiflu and Factory Farms Part II”

“German Sleuths Stalk Origin of Killer Flu”


◄$$$ TIMING AND TRAGIC FUTURE VIEW $$$. One cannot dismiss arbitrarily the timing of the Swine Flu events to date. No coincidences exist or occur when billion$ are involved and nations take major turns. NEVER! The ultimate goal is for military and security agencies to take control, for those who would wish to subvert the Constitution and force change. They are actually fed up with mere unwashed people controlling government! They are fed up with maintaining the pretence of having the people in control. For two decades or more, the big powerful bankers have been in full political control. When the US bankers have been the object of threats, when the public has been mobilized in demonstrations, when the USEconomy is stuck in a deep recession, when the US banking system is broken, when public disgust of both Wall Street and the USCongress is higher than ever, a Swine Flu outbreak occurs. Tea Parties are temporarily halted, on hold. Timing is very suspicious!

What follows is a personal depiction of the future, which might include a serious weaponized influenza used and directed at the public. Regardless of motive or purpose, the people need to know what to prepare for and to expect. For many years, debate has stirred regarding an eventual declaration of Martial Law within the United States. Talk has been ripe since the World Trade Attack on 911 in September 2001. The irony of the 911 event name and the dialed number for emergency phone calls is inescapable. Many have expected another terrorist event, of sufficient force to warrant declaration of Martial Law. My recent forecasts have focused on the likelihood of economic breakdown leading to gradual chaos, lost order, and the result of Martial Law. Another theory is that a USTreasury default could occur, resulting in banking shutdowns and economic halt, which would require Martial Law to keep order. In fact, the US Federal Reserve might someday terminate its contract, since it is losing too much money from the failure of the USEconomy to be revitalized. An influenza outbreak cannot be ruled out that could lead to Martial Law, the practical equivalent of a declared State of Emergency.

The sequence of events after an influenza outbreak and epidemic would be shocking and rapid. The FEMA agency is intended to deal with establishing order and security in the face of epidemic. Quarantines, specific treatments, mobilization of resources, and legal authority change are the immediate result. The FEMA takeover would be identical to a Martial Law takeover, and would involve a pervasive military role. The public would be ordered not to congregate. The public would be ordered to accept rationed goods. The public would probably be ordered to disarm and turn in all weapons. The public would be ordered to take vaccines on a massive scale. That is where viruses might be inserted into the supposed vaccines. Even as the epidemic spreads, the virus would accelerate from the actual treatments, possibly. Those who refuse to take the vaccine, by emergency law, would be arrested, and herded into concentration camps. In the camp, they could legally be either given the vaccine (laced with virus or not) or subjected to execution death. This is a grim story and outlook. One cannot be certain that it will come to pass. Watch for signs that FEMA takes control. Watch for signs of forced inoculation. The public already knows of the Baxter case, where vaccines were contaminated.

The best advice received by me on vaccinations and inoculations is NOT to take any general flu vaccine. Doing so would weaken your immune system temporarily. During a one or two week period after a general flu vaccine, your body would be highly vulnerable to sudden death from a more powerful Swine Flu or other powerful influenza virus. If you wish to take a vaccine, wait until the ‘Real Deal’ is available specifically to treat Swine Flu. That vaccine is likely not to be available until this autumn.

BY THE WAY, KISSINGER LEAKED OUT INFORMATION THAT THE MUCH BIGGER GLOBAL INFLUENZA OUTBREAK WILL OCCUR THIS SEPTEMBER. These people are so evil, so without consciences, and so arrogant. They do not care if the public has a hint of what comes, since they are confident that the influenza distribution cannot be stopped. Rest assured that the culprits will be well protected with their own personal vaccines made available. For those who wish to catch a very well done fictional glimpse of what might come in the future, rent “V For Vendetta” the movie. It has a plot of intentional genocide by designed influenza, mass deaths in London, a cure by Big Pharma that rendered the culprits extremely wealthy, phony blame given to some Moslems, and a witch hunt that included prison for sympathizers to Islam, even a death sentence to any owner of a Koran.

◄$$$ REALISTIC PREDICTIONS ON THE UGLY SIDE $$$. Big Jake has posted some interesting predictions that seem more realistic than mainstream economist viewpoints. They tend to fit within the framework of my forecasts for continued disintegration of the USEconomy. To be sure, progress is NOT coming anywhere as promised, forecasted, or expected. Powerful feedback loops have been at work for a few months, which go counter to with the phony positive psychology that has been hatched in the financial media. Mainstream economists and financial analysts have been very consistent in their incorrect forecasts, erring on the promising favorable side. The Soft Landing expected for late 2008 turned into a cyclone disaster. Economic recovery has been delayed not for the second half of 2009 anymore, but for 2010, where accountability is even more lax and memory more fleeting. The consensus fails to detect that this recession is a systemic collapse that has required unprecedented actions to forestall even broader failures. Most bank policies seem intended to enrich the Elite Bankers who caused the problem with their enormous fraud, which to date has not been prosecuted. So think realistically.

The degree of nationalized financial firms and rescued corporations is not normal. Nor is the assumption of diverse US bank system functions by the USFed’s many liquidity funding facilities. Nor is the colossal degree of negative equity homes and their foreclosures. The job loss is not typical for a recession either, as 6.351 million remain on continued jobless claims for state support. The true jobless rate is at 15.8%, and when it rises above 20% on the official U6 figure, much attention will come. To date, the primary theme of USGovt actions has been to support failed firms, failed executives, and to direct most funds into those failed pits. The banks on Main Street face now impose extremely strict requirements for credit approval. The same financial syndicate that produced the crisis remains in full charge of the USDept Treasury, led by Goldman Sachs. On a more national level, the Endless War continues to drain available funds for the infrastructure and ‘Green’ projects like electric cars and alternative energy sources. Such projects will remain hot air until the war winds down, likely never. See the Seeking Alpha article (CLICK HERE).

Following this preface, Big Jake makes ten clear predictions, which criss-cross mine. His are more intense in nature than mine, and broader than mine, but we share similar darker outlooks. The time for optimism seems in the past, before the nation’s wealth was gutted and the USGovt was taken by a Wall Street coup. Here are his forecasts:

1)      The stock bubble from two decades pops in 2009. The S&P500 will fall 40% more, with eventual ‘Stock Market Holidays’ declared.

2)      A national program will entrust Wall Street to bid up stocks so as to lift pension funds, in response to huge private pension fund losses, as the same fraud kings are kept in charge.

3)      Millions of retirees will face homelessness, starvation, and freezing homes. Local government welfare facilities will be strained, and families will take in grandparents.

4)      Quantitative Easing risks price inflation and USDollar devaluation, with foreign outcry growing much worse. Foreign reserve funds held in US$ will vanish by 2012.

5)      By late 2010, the only bidders for USTreasurys and USAgency Mortgage Bonds will be the USFed and its ‘derelict’ institutions under USGovt control, with all pretence of propriety and legitimacy gone.

6)      Unemployment will rise in the massage U3 figure to the upper teens by late 2010. The more accurate U6 figure will no longer be reported after it hits 25%. College graduates will widely find no work.

7)      Financially strapped and strained police and other city workers will resort to rampant corruption and crime to survive. Police, teachers, and numerous others will turn vicious.

8)      Broad commercial properties will reflect the blight in clear terms, as ghost town sections emerge into dilapidated and neglected areas, then into deep decay, turned dangerous.

9)      Home foreclosures will continue unabated, and escalate into a national nightmare of scoffed ignored mortgages, as tens of millions are in default or refuse to make monthly payments by 2010. A new trend will find banks exiting the mortgage business entirely. The housing market might enter an actual locked up condition, nothing being bought or sold. The bank run crisis will reach a stage where a $1 trillion FDIC bailout is ordered.

10)  Social and political consequences are inevitable. State secession and extremists will grow in their movement. Small armed militia groups will grow. Violent vengeance, standoffs, and murder suicides will grow. Many immigrants will go home, with and without skills. Property crime will grow. Mutiny and desertion will be common in the USMilitary. Major tax collection problems will arise. More and louder ‘Tea Parties’ will occur. A national disaster might occur, which will reveal the lack of order and response capability by the USGovt and other authorities. By 2012, the nation will risk “immediate danger of blowing up or coming apart at the seams” in a justified manner.

◄$$$ THE GLOBAL CRISIS AND EXPERT WARNINGS $$$. The current global crisis is ‘vastly worse’ than the 1930s because financial systems and economies worldwide have become more interdependent, according to author Nassim Nicholas Taleb. He wrote the book about the ‘Black Swan’ concept, the rarely seen creature whose appearance should shake all forecasts and perceptions into revisions. Taleb spoke at a Singapore conference, along with Nouriel Roubini from New York University, and Mark Mobius from Templeton Asset Mgmt. Taleb spoke about the global threats and effects of unprecedented central bank response. He sees the global economy as facing a big deflation threat, although the risks of inflation are also increasing as governments print more money. In other words, price inflation can turn suddenly after a tipping point, like a gigantic barrel of water pouring onto a vegetable garden. Gold and copper may ‘rally massively’ as a result, in his words. Gold, copper and other assets that China favors in its investments and stockpiles are the best investment bets, as currencies including the USDollar and euro currencies face pressures, Taleb believes. The IMF expects the global economy to shrink 1.3% this year, which would force central bankers to maintain extreme monetary pressures. In time, the tipping point is reached and passed.

Taleb said, “This is the most difficult period of humanity that we are going through today, because governments have no control… Navigating the world is much harder than in the 1930s… Debt pressurizes the system and it has to be replaced with equity. Bonds appear stable but have a lot of hidden risks. Equity is volatile, but what you see is what you get.” Mark Mobius of Templeton warned about credit derivatives and the continuing explosive threat they contain. He said, “There are going to be more and more losses on the part of companies that have credit derivatives, those who have currency derivatives. This is something we are going to have to watch very, very carefully.” Contrast these experts, who have solid track records with Bernanke, Geithner, and other pundits who have been consistently wrong, some of whom have been principal agents behind the problems themselves. Nassim Taleb was one of the earliest forecasters of the current financial crisis. He should be listened to very carefully. See the Bloomberg article (CLICK HERE).

◄$$$ AN URGENT MESSAGE BY MY WELL CONNECTED SOURCE $$$. The same fellow who warned of deep failures across the entire US financial sector one month in advance of the September 15th sequence of disasters has offered some sage advice, in constructive fashion. Toss out old methods of thinking. The source said, “What makes today’s developments so interesting and dangerous, is the fact that we are confronted with paradigm change of a monumental proportion. Pulling past experience to the present and using the present situation and information to project into the future will not cut it. This is all very complex and multi-layered. The more of us keep an eye on developments and share, the faster we shall be able to pull things together for a quite accurate assessment what lies behind the bend of the road. In any event it will be very ugly and most people will be going over the cliff, never to be heard of and to be seen again.” He has often spoken of the extreme opportunities that people face, but they cannot remain committed to paper assets. They must own the real assets, like gold & silver, like commodities, like farmland, like water resources.


◄$$$ SPECIFIC CHALLENGE BY USCONGRESS TO GEITHNER $$$. A confrontation has come between the USCongress and the Goldman Sachs plant at the Treasury Secy post, Tim Geithner. The USDept Treasury has so far ignored the Inspector General’s fraud prevention recommendations. House Rep Kevin Brady is the key person behind the challenge. The Congressional chambers are indeed divided, part corrupt, part outraged. Below is the official news release.

“US Treasury Secretary Timothy Geithner should stop stonewalling and immediately implement the taxpayer safeguards recommended by the special inspector general for the government’s massive financial rescue plan, says US Congressman Kevin Brady (R-Texas). Brady is the senior House Republican on the Joint Economic Committee, which heard Special Inspector General Neil Barofsky testify last week that the Treasury Department has not agreed to implement his recommendations to increase accountability and prevent fraud within the government’s various TARP and bad-loan programs. Barofsky is pushing for banks to account for their use of TARP funds and for the Treasury to adopt basic safeguards within the public-private investment program to remove toxic assets from troubled banks. The potential of ‘collusion, conflicts of interest, and money laundering’ within the new program puts at risk significant taxpayer dollars, said Barofsky. ‘Secretary Geithner should embrace this call for accountability and safeguards, and direct his team to immediately implement the recommendations contained in the inspector general's report,’ said Brady. ‘Why has the Treasury failed to act?’ Brady believes that the lack of accountability for taxpayer dollars and absence of basic safeguards within the toxic asset program undermine public and investor confidence in the government’s bailout efforts. According to the Special Inspector General’s report, many aspects of Secretary Geithner’s recent proposal for public-private partnerships to purchase toxic assets ‘make it inherently vulnerable to fraud, waste and abuse.’ Specific problems identified with Secretary Geithner’s proposal include conflicts of interest, collusion, and money laundering. As the report notes, it would be unacceptable if this proposal ‘were used to leverage the profits of drug cartels or organized crime groups.’ Take heart that finally an official has implicitly compared the Wall Street financial syndicate to a drug cartel from organized crime. In fact, the linkage is even more accurate, since Wall Street firms are involved with handling Afghan narcotic funds through JPMorgan, which manages the Bank of Baghdad. See the USCongressional news release (CLICK HERE).


The US Federal Reserve Inspector General was recently unable to tell House Rep Alan Grayson (D-Florida) what occurs at the USFed itself, and who has been receiving the trillions of dollars they created. See a video clip on the exposure (CLICK HERE). Thanks to broad public support, HR 1207, which would require a formal audit of the USFed, now has 143 cosponsors! Something on the order of $9 trillion in off-balance sheet transactions has been conducted by the USFed since last September 2008, according to a Bloomberg court challenge. Do not confuse the USCongress Inspector General (competent, demanding) with the USFed Inspector General (lax, clueless). Bloomberg and Fox Business News are pushing lawsuits through the court system right now, filing having begun a few months ago. Apparently and incredibly, the Inspector General Elizabeth Coleman lacks the authority and power to conduct audits, even though its office has the chartered task with overseeing and auditing the Federal Reserve. This supposed empowered auditor knows next to nothing about what the USFed is doing. Neither lending, nor losses, nor its expanded $2 trillion balance sheet composition has been monitored or tracked, let alone audited. Coleman was forthright in openly revealing her ignorance. She said, “She did not know where the Fed has invested its $2 trillion on the liability side of the balance sheet. I do not know [about portfolio investments]. We have not looked at that specific area at this particular point on. We do not have jurisdiction to directly go out and audit reserve bank activities specifically.”

Her statements are is odd, since their website declares broad audit authority. The website claims the office “conducts independent and objective audits, inspections, evaluations, investigations, and other reviews related to programs and operations of the Board of Governors of the Federal Reserve System.” Here is an incomplete listing of recipients for TARP funds, dating back to late October 2008, several pages long, provided by the New York Times (CLICK HERE). It is incomplete because it does not include fraudulent payouts, hidden payouts, paid extortion (possible murder threats last autumn), and criminal activity mixed in.

My claim that Wall Street is a monstrous massive financial crime syndicate is supported by this information. The USFed is at its center. It is my opinion that the USFed oversees and manages the flows for enormous counterfeit bonds, tolerates naked shorting, until recently ignored failed bond trades, conducts payoffs for foreign extortion, and carefully manages narcotics money laundering. The Inspector General seems to be a passive onlooker, perhaps by design. My full expectation is that legal challenges under the Freedom of Information Act, along with USCongressional demands for disclosure, will result eventually in a case before the US Supreme Court. At that point, my next expectation is defiance of the high court, or blatant cowering before the syndicate by the high court itself.

◄$$$ ACCUSATIONS AGAINST GOLDMAN, A CALL FOR RICO LAWS $$$. A scathing but well directed charge of financial syndicated corruption is laid by Max Kaiser, on two interviews. He is a lone wolf journalist and broadcaster based in Paris France. The first interview features a straight man from a French financial firm defending the system. In that first interview Kaiser identifies Goldman Sachs and the Wall Street firms for comprising a financial terrorist group that has taken control of the USGovt financial functions. Their enterprise has resulted in bankruptcy of the state, and needs to be decapitated. He directly claims that executive stock options often involve counterfeit, fraud, and embezzlement. He pointed to the backdating of stock options and other illegal practices, which have often gone unprosecuted. In the second interview, Kaiser accuses former Treasury Secy Paulson of being a tyrant and financial terrorist, who led the Goldman Sachs and JPMorgan money laundering scheme. He claims Paulson hijacked the USGovt financial ministries and took the USEconomy to the abyss with his dictatorial powers.

Kaiser believes that the Wall Street firms, Federal Reserve banks, USDept Treasury, and Debt Ratings Agencies should be prosecuted under the RICO racketeering laws, where conspiracy is a separate important crime. They have stolen trillion$ in bonds from fraud and counterfeit, yet have escaped almost all prosecution. Their impunity is a result of continued Wall Street syndicate control of the USGovt financial operations. He makes the point that foreigners have only one recourse, to exit the USDollar and US$-based investments. When Lehman Brothers failed, its Venezuelan bonds went down with it, but the Chinese investments in Fannie Mae were made whole. That testifies in his opinion as to who the credit masters are. See the two video clips (CLICK HERE). While he sounds outrageous at times, he makes some excellent points. My private sources confirm what Kaiser said about the third building at the World Trade Center, about which he only touches the surface. It contained Enron evidence from the JPMorgan files, and fell without aid from any aircraft crashing into it (i.e. demolition).


◄$$$ BLACK DESCRIBES A GIGANTIC WALL STREET FRAUD COVER-UP $$$. Bill Moyers has another insightful interview. He is turning into quite an adept agent to expose the deep corruption now evident to all but the most ignorant and politically driven. See his interview of William K. Black, the former senior regulator who cracked down on banks during the Savings & Loan crisis of the 1980s. He explains the systemic breakdown and the crucial lapses in the USCongress, Wall Street, and the regulatory agencies. HIS MAIN POINT IS THAT THE FINANCIAL CRISIS WAS ORGANIZED SYSTEMATICALLY YEARS AGO, AND INVOLVES DEEP COVER-UPS NOW TO PREVENT RECOGNITION OF TRILLION$ IN FRAUD, AS THE SAME CRIMINALS REMAIN IN CHARGE, APPOINTED AND HIRED PRECISELY BECAUSE THEY ARE RESPONSIBLE FOR THE CRIMINAL ACTIVITY, TRILLION$ FRAUDS. Black confirms my accusations of gigantic fraudulent behavior within financial crime syndicates. Note the organization at which he directs his verbal indictments. See the interview (CLICK HERE). It is provided in detail, since the interview provides details on what has become a Financial Coup d’Etat, a takeover of the USGovt finance function by a vast crime syndicate. These are important details coming from a criminal investigator with experience.

“BLACK: The FBI publicly warned in September 2004 that there was an epidemic of mortgage fraud, that if it was allowed to continue, it would produce a crisis at least as large as the Savings & Loan debacle. And that they were going to make sure that they did not let that happen. So what goes wrong? After the 9/11 attacks, the Justice Department transfers 500 white collar specialists in the FBI to national terrorism. Well, we can all understand that. But then, the Bush Admin refused to replace the missing 500 agents. So even today, again, as you say, this crisis is 1000 times worse, perhaps, certainly 100 times worse, than the Savings & Loan crisis. There are one fifth as many FBI agents as worked the Savings & Loan crisis. [Others involved in the de-regulation] are the trade representatives. They are the lobbyists for the bankers. And everybody is grinning. The government is working together with the industry to destroy regulation. Well, we now know what happens when you destroy regulation. You get the biggest financial calamity of [anybody’s knowledge] under the age of 80.

BLACK: There were two really big things, under the Clinton administration. One, they got rid of the law that came out of the real world disasters of the Great Depression. We learned a lot of things in the Great Depression. And one is we had to separate what is called commercial banking from investment banking. That is the Glass-Steagall law. But we thought we were much smarter, supposedly. So we got rid of that law, and that was bipartisan. And the other thing is we passed a law, because there was a very good regulator, Brooksley Born, that everybody should know about and probably does not. She tried to do the right thing to regulate one of these exotic derivatives that you are talking about. We call them Credit Default Swaps. And Summers, Rubin, and Phil Gramm came together to say not only will we block this particular regulation. We will pass a law that says you cannot regulate. And it is this type of derivative that is most involved in the AIG scandal. AIG all by itself, cost the same as the entire Savings & Loan debacle.

BLACK: But the other element of your question is we do not want to change the bankers, because if we do, if we put honest people in, who did not cause the problem, their first job would be to find the scope of the problem. And that would destroy the cover-up. Geithner is charging, is covering up, just like Paulson did before him. Geithner is publicly saying that it is going to take $2 trillion (a trillion is a thousand billion) taxpayer dollars to deal with this problem. But they are allowing all the banks to report that they are not only solvent, but fully capitalized. Both statements cannot be true. It cannot be that they need $2 trillion, because they have masses losses, and that they are fine. These are all people who have failed. Paulson failed, Geithner failed. They were all promoted because they failed. Geithner was one of our nation’s top regulators, during the entire subprime scandal that I just described. He took absolutely no effective action. He gave no warning. He did nothing in response to the FBI warning that there was an epidemic of fraud. All this pig in the poke stuff happened under him. So, in his phrase about legacy assets. Well, he is a failed legacy regulator.

BLACK: First, in the financial sphere, … the policies are substantively bad. Second, I think they completely lack integrity. Third, they violate the rule of law. This is being done just like Secretary Paulson did it, in violation of the law. We adopted a law after the Savings & Loan crisis, called the Prompt Corrective Action Law. And it requires them to close these institutions. And they are refusing to obey the law. You do a receivership [close the banks without nationalizing them]. Ronald Reagan did receiverships. Nobody called it nationalization. That is the law. [Such action by Paulson and Geithner] was mandated by the law. In the Savings & Loan debacle, we developed excellent ways for dealing with the frauds, and for dealing with the failed institutions. And for 15 years after the Savings & Loan crisis, it did not matter which party was in power, the USTreasury Secretary would fly over to Tokyo and tell the Japanese, ‘You ought to do things the way we did in the Savings & Loan crisis, because it worked really well. Instead you are covering up the bank losses, because you say you need confidence. And so, we have to lie to the people to create confidence. And it does not work. You will cause your recession to continue and continue.’ And the Japanese call it the lost decade. That was the result. So, now we get in trouble, and what do we do? We adopt the Japanese approach of lying about the assets. And you know what? It is working just as well as it did in Japan.

MOYERS: Are you saying that Timothy Geithner, the Secretary of the Treasury, and others in the administration, with the banks, are engaged in a cover-up to keep us from knowing what went wrong?

BLACK: Absolutely, because they are scared to death. All right? They are scared to death of a collapse. They are afraid that to admit the truth, that many of the large banks are insolvent. They think Americans are a bunch of cowards, and that we will run screaming to the exits. And we will not rely on deposit insurance. And, by the way, you can rely on deposit insurance. And it is foolishness. All right? Now, it may be worse than that. You can impute more cynical motives. I do not know whether we have lost our capability of outrage. Or whether the cover-up has been so successful that people just do not have the facts to react to it, like in Congress, to hold the necessary hearings. And we can blast this out. But if you leave the failed CEOs in place, it is not just that they are terrible business people, though they are. It is not just that they lack integrity, though they do. Because they were engaged in these frauds. But they are not going to disclose the truth about the assets. To know everything. To know who committed the frauds. Whose bonuses we should recover. How much the assets are worth. How much they should be sold for. Is the bank insolvent, such that we should resolve it in this way? It is the predicate, right? You need to know the facts to make intelligent decisions. And they are deliberately leaving in place the people that caused the problem, because they do not want the facts. So stop that current system. We are hiding the losses, instead of trying to find out the real losses. Stop that, because you need good information to make good decisions, right? Follow what works instead of what has failed. Start appointing people who have records of success, instead of records of failure. That would be another nice place to start. There are lots of things we can do, even today, as late as it is. Even though they have had a terrible start to the administration. They could change, and they could change within weeks. And by the way, the folks who are the better regulators, they paid their taxes. So, you can get them through the vetting process a lot quicker.”

◄$$$ BLACK CONCISELY SLAMS THE BANK STRESS TESTS $$$. William Black was at a later date interviewed at the 18th Hyman Minsky Conference about the sham of Stress Tests and the unreliability of bank earnings. He made the following claims: 1) Bank loan loss reserves are grotesquely low. The Stress Tests doe not test for loan loss reserves, nor for asset values, a total sham. 2) Treasury Secy Geithner has a record of being a failure at every post where he served, the latest being the New York Fed. He took no action during the biggest credit bubble buildup in history. Geithner even admitted to the USCongress never to being a bank regulator, even though that was precisely his job description as the New York Fed head post. 3) Commercial loans are the next area registering losses, and will be a ‘world of hurt’ for not only banks but also insurance companies. 4) Citigroup is a perfect example of the ‘Too Big to Fail’ principal really meaning too big to run, and too big to regulate. It desperately needs to be broken up. Some of the business units might be salvageable. On the whole a disaster is raging ablaze. He asks a basic question of the Stress Test administrators. “How can all 19 banks pass the Stress Tests if the same USDept Treasury estimates a $2 trillion capital inadequacy for the banks?” Therein lies the contradiction underlying the sham! See the video clip (CLICK HERE). Note his comments about commercial loans, which extend to mortgages, which will crush banks soon.

◄$$$ BANKS OWN THE USCONGRESS, A CHARGE FROM WITHIN $$$. Senator Dick Durbin from Illinois openly stated in a public forum a charge that needs to be heard more often, in more locations, and with higher amplitude. He is not to be taken lightly, since he is the Senate Majority Whip. On a local Chicago radio station two weeks ago, Durbin stunned the audience with an obvious truth about the USCongress that is rarely spoken. The fact is obvious to those who remain informed. He said, “And the banks, hard to believe in a time when we are facing a banking crisis that many of the banks created, are still the most powerful lobby on Capitol Hill. And they frankly own the place. The blunt acknowledgment confirms that the very banks that are responsible for the crux of the financial crisis still ‘own’ the USCongress, according to one of its most powerful. The institutional corruption is extreme. My belief is that the corrupt tentacles extend to the Pentagon, to defense contractors, and to the US media networks. See the article on Salon (CLICK HERE).

In fact, influence ownership of the legislative and executive branch of the USGovt is made possible by means of endless and increasingly sordid overlap between government and corporate officials. For instance, a former Barney Frank staffer is now a top Goldman Sachs lobbyist. Michael Paese is now the top lobbyist, serving as director of USGovt affairs, a role held last year by former Tom Daschle close associate, Mark Patterson, who is now the chief of staff at the USDept Treasury. Note the Wall Street & Congress revolving door. Paese previously worked at JPMorgan and also served as senior minority counsel at the Financial Services Committee. How incestuous! Here is another scummy link. Over 100 former USGovt employees are now working as bank lobbyists on bailout matters. In late March, during a time when public outrage over bonuses paid to executives of bailed-out financial firms had erupted, Citigroup CEO Vikram Pandit met with Senate majority leader Harry Reid. Accompanying Pandit to the meeting was Jimmy Ryan, one of the big bank’s leading lobbyists. Ryan was familiar to Reid and his staff. Until 2003, he served as the Nevada senator’s chief counsel. More incest!

Here is a final scummy story. The Federal Reserve Bank of New York was a key influence in shaping the USGovt response to the financial crisis last autumn. The entire set of Wall Street firms were buoyed by federal support, including Goldman Sachs. It was blatant favoritism at public expense. Goldman received speedy approval to become a bank holding company in September and a $10 billion capital injection soon after from TARP funds. Goldman also was first in line for 100% redemption of Credit Default Swap contracts held by AIG. During that time, Stephen Friedman was the New York Fed chairman. He was a member of the Goldman Sachs board and had a large investment in Goldman stock. That alone was a violation of Federal Reserve policy, due to the new Goldman status as a bank holding company. Friedman benefited from the revival of the GSax stock, with ugly insider collusion and influence. To be honest, no sooner than half an hour after putting pen to paper on this paragraph, news came of Friedman’s resignation.

Stephen Friedman, chairman of the New York Federal Reserve Bank’s board of directors, resigned from his position effective immediately to avoid the appearance of a conflict of interest. A retired chairman and current member of Goldman Sachs board, he had been granted a waiver to keep serving after the venerable (but corrupt) firm became a bank holding company in September, a change that would have normally barred Friedman from serving as a director appointed to represent the public. Goldman Sachs in my view exploits markets at public expense, with rampant evidence of insider trading and influence peddling. He will depart after calls by USCongressional members for greater scrutiny of the regional Fed banks and the appointment of institution presidents. His purchases of Goldman Sachs stock in December and January were criticized by a senator. Friedman posted a letter on the New York Fed website that read, “Although I have been in compliance with the rules, my public service motivated continuation on the Reserve Bank Board is being mischaracterized as improper. The Federal Reserve System has important work to do and does not need this distraction.” The distraction he refers to might be prosecution and exposure of the financial syndicate criminal activity. He must not comprehend insider trading and blatant collusion, but then again, Wall Street executives have almost NO moral compasses anymore. The revolving door continues to favor the Elite Club. Friedman led the search committee for the bank’s new president after Timothy Geithner departed to become Treasury Secretary. The New York Fed appointed William Dudley, a former Goldman economist, as president in January. Goldman still rules! See the Bloomberg article (CLICK HERE).