the Sucker Traps

THE IMPENDING
BOND COLLAPSE

What is it that
they do not teach at the most supposedly prestigious business schools, such as
at Harvard or Rockefeller’s University of Chicago?

Not part of the
curriculum are the ways in which “the powers that be”, the
Establishment, the Ultra Rich, the Ruling Class—whatever is labeled as
THEM—further enrich themselves on the backs of the common people.

How, then, do the
sons and daughters of the Aristocracy learn how to do such things? Simple. It
rubs off on them just by growing up among their elders. It becomes second
nature to them. Since the more ordinary people do not grow up in such an
environment, they do not ever understand the mindset of plutocrats..

THE UNSPOKEN
PRINCIPLES OF FINANCIAL AND GEOPOLITICAL RULE

[1] DO NOT FOR A
MOMENT HESITATE TO DO WHAT IS NECESSARY TO YOUR AGENDA. CONSIDERATIONS OF
MORALITY AND HUMANITY ARE NOT TO BE CONSIDERED. IF YOU CAUSE GREAT RUIN OR
BLOODSHED, SO WHAT!

The Ultra Rich
felt endangered by their creation, the Soviet Union. So the oligarchs in the
U.S. and England financed the rise of Adolf Hitler, as a bulwark against the
Moscow government.

For examples,
refer to “Wall Street and the Bolshevik Revolution” by Antony C.
Sutton and also his opus, “How the Order Creates War and
Revolution”(the Order being such as the Skull & Bones Secret Society)
and his book, “Wall Street and the Rise of Hitler”.

The very wealthy
Americans such as the Rockefellers, shared profits with Nazi big business even
in the midst of World War 2. “Trading With the Enemy” by Charles
Higham.

The British
Monarchy, secretly pro-Nazi, through their ownership of Prudential Insurance
Company of Newark, New Jersey, controlled and selected what targets, if any, in
wartime Germany were bombed by the Allies. Knowing the value and insurance of
corporate properties in Nazi Germany, Prudential was in charge of the Strategic
Bombing Survey. (A well-equipped library has books on the S.B.S.) for example,
the Nazi chemical octopus, I.G. Farben, was NOT bombed and was 93 per cent
intact at the end of the conflict. (See “I.G. Farben” by Richard
Sasuly, a book by a U.S. military officer in charge of the end of the war
survey of Farben.).

Because of the
business tie-in with General Electric of the U.S., their facilities in Nazi
Germany were not bombed. [See, Sutton's documented work, "Wall Street and
the Rise of Hitler".]

[2] PUSH AN
IMPENDING FINANCIAL WRECKAGE ON TO THE SUCKERS.

The pundits for
the super rich pushed the high tech wreckage onto the ordinary people. So,
mouth-pieces for the major brokerage houses promoted the telecoms, the computer
wonders, and the energy shysters, onto ordinary people, as a “good
investment”. More and more of those dot.coms are into bankruptcy or soon
there.

[3] AFTER A
FINANCIAL MARKET HAS BEEN PLUNDERED BY THE ULTRA RICH, PUSH THE ORDINARY
SO-CALLED “INVESTORS” ONTO SOME OTHER FINANCIAL TRICK, TO CLIP THEM.

That is sort of
like the crowd rushing from one side to another. An analogy from history might
be useful. Early in the 20th Century, a major Chicago-based company arranged an
outing for their employees. Over a thousand persons gathered, like for a party,
on a boat in the river in Chicago. To watch some other event, all those on the
vessel ran to the other side of the ship, which, thus unbalanced, capsized.
Nine hundred ordinary employees were drowned. Of course, that was an accident.

NOT an accident
is the way the suckers fleeced in the equity markets are being shoved into
BONDS. Cynics purposely mispronounce it as BOMBS. The innocents are thus made
to run from one side of the financial ship to the other. Will the financial
markets vessel capsize?

Various types of
bonds are vulnerable, so are so-called “money market funds”. By the
time you see, if at all, the periodic prospectus of a money market fund, the
data is stale. You do NOT find out what the fund is into NOW. Are they trying
to temporarily boost the return by hocus-pocus book-keeping, called
derivatives? Are they using highly hazardous hedging tricks? Are they invested
in commercial paper of companies on the verge of bankruptcy? Brokers pushing
clients into “money market” funds are not about to tell you.

A typical
conversation of a broker to a client. “So, you do not like stocks? Fine.
We’ll put you into Municipal Bonds”. Not identified are the municipal
bonds actually issued for private and non-governmental purposes. In a bad
recession, will the purposes generate enough funds to pay the municipal
bondholders? And get this. Municipal bond GUARANTEE FUNDS are considered by
savvy sorts as a bad joke. Do they have enough reserves to make good possible
widespread municipal bond defaults?

Then there are the
so-called “Federal Agency” securities. These are known in the
financial trade as GSE, “government-sponsored enterprises”. Fannie
Mae, Ginnie Mae, Freddie Mac. These securities and mutual funds supposedly
investing in them as a go-between for mutual fund holders, are peddled by
brokers and others as if they are securities actually guaranteed by the Full
Faith and Credit of the U.S. Treasury.

Sponsored by
Vanguard Funds is Bob Brinker, a long-time pusher on the radio who urges
listeners to invest in mutual funds holding Ginnie Mae securities. He tells the
listeners that such securities are backed by the U.S. Treasury. Some, however,
have substantial doubts.

Not much
publicized was the Dow Jones wire service item, dated 8/5/02, datelined New
Orleans. “Government officials and investment experts worried about the
impact on stock prices of alleged corporate accounting fraud are paying too
little attention to risks inherent in other securities widely regarded as being
safe, according to William Poole, president of the St. Louis Federal Reserve
Bank.

“Speaking at
the Council of State Governments’ Southern Legislative Conference, Poole said
that certain government-sponsored private agencies, including Fannie Mae,
Freddie Mac and the Federal Home Loan Bank System, are undercapitalized
relative to their debt load.

“He said if
the imbalances of these and other so-called government-sponsored enterprises go
undressed, they could lead eventually to a capital crisis that would send a
shock through the U.S. housing market.”

Further referring
to Poole, “Similarly, he said, ‘no one should underestimate the potential
importance of the ambiguity over the financial status of the GSEs.’

“A serious
problem, he said, is ‘the market prices GSE debt as if there is a FEDERAL GUARANTEE,
or a high probability of a guarantee, standing behind the debt. YET, THERE IS
NO EXPLICIT GUARANTEE IN THE LAW’.

“Poole
recommended that the federal government act to dispel the notion THAT FANNIE
MAE, FREDDIE MAC and some other GSEs ARE FULLY BACKED BY THE GOVERNMENT.”
(Emphasis added.)

Typical of their
method of operation, the Ultra Rich, having taken themselves ouf of so-called
“Federal Agency” securities, have pushed them onto the suckers who
sooner or later will get clipped.

Seldom mentioned
is the history of U.S. Treasury securities.

Starting about
the fall of 1979, was a U.S. Ruling Class liquidity crisis, falsely referred to
by the press-fakers as a “U.S. Government” emergency.

To try to calm
know-nothings, the head of the private central bank, the Federal Reserve, held
a rare joint press conference with then President Jimmy Carter. The commotion
revolved in part around gold, considered by some as “independent
money”.

Tending to
undermine the validity of paper money, gold prices by 1980 peaked temporarily
at over 800 dollars per ounce. By 1981, U.S. Treasury securities were priced in
the market to yield 16 and one-half per cent. The yield goes up as the price of
the bonds go down. Some U.S. Treasury paper was priced near 75 cents to the
dollar face value of the bond. The best corporate business risks paid a minimum
of 21 and one-half per cent for capital transfusions.

In all the
commotion, never discussed in the oil-soaked, spy-riddled monopoly press, was
the way some foreign investors were protected. Since the fake embargo/oil
crisis of 1973, major buyers of U.S. Treasury paper in Japan and Saudi Arabia
have had THEIR purchases backed by U.S. Gold. Of course, there is no such
guarantee for U.S. residents. And the alternative press in the 1970s forced a
partial audit of Fort Knox. The opening of just one vault there showed the
supposed depository of U.S. gold did not have it. All that was found was some
orangish-looking, poor quality gold-like stuff, apparently melted down gold
coins from the 1934 seizure of gold by the Roosevelt White House. Forcing even
this partial audit was the Chicago-based tabloid “National Tattler”,
(now defunct), in which a key role was played by crusading journalist Tom
Valentine. According to a published statement of a U.S. General, he led a
convoy of trucks taking away most all the gold of Fort Knox about 1968 to New
York. It was shipped to London, to try to stem a run on the gold in the Bank of
England.

Currently, Japan
owns about forty per cent of U.S. Treasury Securities. Japan needs to bail-out
their greatly insolvent banks, many of which are the largest in the world. On a
pre-arrangement with the American aristocracy, the Japanese may suddenly dump
their U.S. Treasury paper which may suddenly, like in 1980-81, decline to 75
cents per dollar face value, or even lower. Thus in part renouncing the U.S.
debt and impoverishing ordinary folks but further enriching the oligarchs.

This would be
joined at the same time with an attack or “run” on the so-called
“U.S. Dollar”, actually hot-air Federal Reserve notes. In simple
terms, the Establishment considers ordinary Americans as the enemy, to be
plundered. Attention was diverted for many years by the press whores, on behalf
of the Ultra Rich, leading ordinary folks to believe the “enemy” was
the Moscow government, now becoming more and more a trading partner with U.S.
Big Business and Big Oil.

Who dares mention
an historical truism? That is, that sooner or later, every sovereignty
repudiates their debt which they knew all along they could not pay back. A very
astute observer on international finance, forty years ago and more, was Franz
Pik. He would impart his wisdom to a select, small cricle in closed meetings.
Each listener paid one thousand dollars to sit there and hear him, at a time
when that amount of money was considered huge.

Who dares mention
that the watering down of the paper money and the renouncing of the debt, led,
in part, to the French Revolution and the chopping off of the heads of the
King, Queen, and the French aristocracy. Refer to the book, “Fiat Money
Inflation in France” by Andrew Dickson White, written in the 19th Century
but still true now.

Studying the
class structure is not a popular subject in American education. Some contend it
is a feel-it-in their-bones known subject in England and elsewhere. So common
Americans are generally completely blank on this, when it come to understanding
Class.

Special note to
the naive and poorly-informed We are NOT shills for some type of investment
house or brokerage. Hence, do NOT bombard us with requests as to WHAT we
recommend to put your paper money into, to save yourself. Our upcoming
follow-up story, about the impending Real Estate Crash might nevertheless be
helpful.

More coming….
Stay tuned.

http://www.skolnicksreport.com/straps3.html

NESARA- Restore America – Galactic News