On October 11, 2008 in this column I noted that the previous day's 2100-point stock market swing represented purchases and sales of about two trillion dollars, a stunning amount, especially since the market fell more than 400 points – representing an estimated $500 billion – in the last 15 minutes of trading.
At that time I called on then-President Bush to loose the Pentagon's supercomputers on the stock exchange and trace this extraordinarily unusual activity back to its roots, because obviously, someone was trying to destroy the foundation of our nation's finances. I noted that it was impossible for either Mom and Pop investors or even institutional investors for that matter, to move the market that much that quickly.
I speculated that: this appears to be a coordinated assault on a level that requires entire nations, many of them, in concert with each other, to be participants, concluding that the best bet on who was behind this assault on capitalism was China in concert with Muslim nations that want to impose Stone-Age Shariah laws worldwide.
You can read it here: http://ronaldwinter.blogspot.com/2008_10_01_archive.html
Scroll down to the Oct. 11 entry.
Well, it turns out the Pentagon did just what I had suggested, (even if someone else suggested it) assigning independent investigator Kevin B. Freeman to the case. The report he issued in June 2009 – Economic Warfare: Risks and Responses, that only now is gaining wider publicity, should have us all down on Constitution Avenue with pitchforks and torches!
The report has been around for two years, but a couple of weeks ago the Washington Times wrote about it, and Glen Beck did part of his show on it. The report's Executive Summary notes that the total global losses in wealth during the 2008 financial crisis amounted to $50 trillion! The report also notes that: At least $15 trillion of that loss was experienced by Americans, as measured by the combined declines in the value of stocks, bonds, real estate, and other assets.
Although the report doesn’t specify exactly which countries did this, meaning, are at war with us, it did outline how this assault was planned and executed.
First, OPEC's oil producing countries artificially inflated the price of oil, up over $140 a barrel for a while, that poured trillions of dollars in excess profits into their coffers. The reports states that at a price of $125 per barrel: the value of OPEC oil in the ground (was) roughly$137 trillion, virtually equal to the value of all other world financial assets, including every share of stock, every bond, every private company, all government and corporate debt, and the entire world's bank deposits. That means that the proven OPEC reserves were valued at almost three times the total market capitalization of every company on the planet traded in all 27 global stock markets.
There has been significant discussion of how the price of oil got so high. Freeman addresses that debate thus:
Starting from a low in January 2007 near $50/barrel, oil prices began a steady and unrelenting rise to almost $150/barrel by June 2008. This virtual tripling of price occurred even as economic growth appeared to be leveling and drilling activity increased. At the time there was a serious debate between those who claimed speculation was the primary cause of higher prices and those who claimed they were caused by natural supply/demand forces. In hindsight, the largest increase in prices without a supply disruption in decades does appear to have been, at least in part, driven by speculation.
Once the funding was in place, the second phase of the attack, raids on American financial institutions, began.
Freeman states that: An initial bear raid against Bear Stearns was successful in forcing the firm to near bankruptcy. It was acquired by JP Morgan Chase and the systemic risk was averted briefly. Similar bear raids were conducted against various other firms during the summer, each ending in an acquisition. The attacks continued until the outright failure of Lehman Brothers in mid-September. This created a system-wide crisis, caused the collapse of the credit markets, and nearly collapsed the global financial system. The bear raids were perpetrated by naked short selling and manipulation of credit default swaps, both of which were virtually unregulated. …
He adds: While substantial, unusual trading activity can be identified, the source of the bear raids has not been traceable to date due to serious transparency gaps for hedge funds, trading pools, sponsored access, and sovereign wealth funds. What can be demonstrated, however, is that two relatively small broker dealers emerged virtually overnight to trade trillions of dollars worth of U.S. blue chip companies. They are the number one traders in all financial companies that collapsed or are now financially supported by the U.S. government. Trading by the firms has grown exponentially while the markets have lost trillions of dollars in value.
The Sovereign Wealth Funds mentioned in the paragraph above are of particular interest since they literally are financial portfolios managed by nations. I would bet that a deeper review of those funds, especially those that were involved in the massive trading activity of 2008 would give us more clues to the identities of our enemies. Also, two phrases pop out of Freeman's report in the section on who was behind this assault: Financial Jihad; and Shariah Compliant Finance. We should be very, very concerned about those phrases.
After leveling America's financial institutions Phase Three – devaluation of the dollar began. By then, we had a new president, Barack Hussein Obama, backed by a Democrat majority Congress who seem only too willing to help in this phase of the financial attack on America.
Giddy from the false glow of unrealistic expectations, the US Congress immediately, with malice aforethought, began to systematically devalue the dollar by passing unaffordable Obama Administration initiatives. Congress further indebted the country through nationalization of much of the US auto industry, and passing the massive, unread, nationalized health insurance law.
Two years into the Obama Administration the national budget deficit and the national debt have grown exponentially – I can use that term when we're talking trillions of dollars – and the dollar is shaky at best. The US debt continues to spiral out of sight thanks to Obama policies, the US Treasury continues to issue bonds to cover that debt, and thus the value of the dollar continues to slide.
So, it would appear that two co-conspirators in this economic war are the Democrats and some of their GOP lackeys in the US Congress, and the Obama Administration which continues to support policies that can only further weaken our economy and our country. Don't take my word for it, look for yourself.
The Arab world where Obama prostrated himself in an effort to ingratiate his administration with the Muslims is erupting in violence and instability. The price of oil once again is on the rise – even as the Fox Business Channel gleefully reports that it is down – but still over $100 a barrel, while defending oil speculators.
Efforts to fully develop alternative energy are sluggish at best and new drilling is still strongly discouraged. China is still manipulating our money, and is pushing us around on the international scene while Obama does nothing. Oh, not nothing, he takes vacations, goes golfing, plays basketball and issues his picks for the National Collegiate Athletic Association March tournament winners.
Look around. Oil is up, the stock market is once again experiencing volatility and wild swings – although not on the level of 2008 – and we must consider that once again we are under attack, or that Obama is getting a message. Either way we still are at the mercy of our enemies, and even though Freeman wrote this report two years ago his Executive Summary warning bears repeating:
Finally, there are legitimate questions about the performance of the regulatory regime and Wall Street institutions. Implications that these parties have been complicit or otherwise co-opted cannot be ruled out. Therefore, it is strongly recommended that this study and any task-force response be conducted outside of traditional Washington and Wall Street circles.
Friday, March 18, 2011