Sunday, December 14, 2008
Saturday, December 13, 2008
Madoff Ponzi Scheme Dwarfed by Rubin's
by Henry Makow Ph.D.
The arrest of financier Bernard Madoff Thursday for operating a "Ponzi scheme" costing investors $50 billion made the TV network news. Curiously, a lawsuit the same day against Clinton Treasury Secretary Robert Rubin for defrauding Citibank shareholders of more than $122 billion, also described as a "Ponzi scheme," got no airplay whatsoever.
As we shall see, Rubin, a Director of Citibank, profited from the shady practices that destroyed the financial system and sent the world's economies into a tailspin. Then, to repair the damage, he and his banker friends put the taxpayer on the hook for trillions.
Rubin didn't get the same publicity as Madoff because of his close connection to Barack Obama.
Robert Rubin's son Jamie was Obama's main Wall Street fundraiser and is now one of his principal advisers. More significant, Obama's economic team consists of Rubin's proteges including Timothy Geithner, Treasury Secretary, Lawrence Summers, Senior Economic Adviser and Peter Orszag, Budget Director. The Times of London has already dubbed them the "Robert Rubin Memorial All Stars."
Clearly, the media don't want people to realize that the candidate of "Change" chose the people responsible for this calamity to be his "economic team." While in the Clinton White House, Rubin, with Summers, helped tear down the regulatory walls between banks, brokerages and insurance companies and freed them to trade in unregulated and little-understood derivatives worth trillions of dollars.
THE LAW SUIT
In an article entitled "Ponzi Scheme at CITI," the New York Post reported: "A new Citigroup scandal is engulfing Robert Rubin and his former disciple Chuck Prince for their roles in an alleged Ponzi-style scheme that's now choking world banking.
Director Rubin and ousted CEO Prince - and their lieutenants over the past five years - are named in a federal lawsuit for an alleged complex cover-up of toxic securities that spread across the globe, wiping out trillions of dollars in their destructive paths.
Investor-plaintiffs in the suit accuse Citi management of overseeing the repackaging of unmarketable collateralized debt obligations (CDOs) that no one wanted - and then reselling them to Citi and hiding the poisonous exposure off the books in shell entities.
The lawsuit said that when the bottom fell out of the shaky assets in the past year, Citi's stock collapsed, wiping out more than $122 billion of shareholder value.
However, Rubin and other top insiders were able to keep Citi shares afloat until they could cash out more than $150 million for themselves in "suspicious" stock sales" calculated to maximize the personal benefits from undisclosed inside information," the lawsuit said.
The latest troubles for Rubin, Prince and others emerged in a 500-page investigation by Citigroup investors represented by law firm Kirby McInerney.
The probe was used to amend and add new details to a blanket investor lawsuit filed against Citigroup a year ago. The amended suit called the actions of Citi leaders "a quasi-Ponzi scheme" to hide troubles - and keep Citi stock afloat while insiders unloaded about 3 million shares between Jan. 1, 2004 and Feb. 22, 2008 for huge profits.
In addition to Citigroup, Rubin and Prince, the complaint names Vice Chairman Lewis Kaden, ex-CFO Sallie Krawcheck and her successor CFO Gary Crittenden.
Rubin cleared $30.6 million on his stock sales, while Prince got $26.5 million, former COO Robert Druskin got nearly $32 million and former Global Wealth Management unit chief Todd Thomson got $25.7 million, the suit said."
THE PONZI SCHEME
In an article, "The Great American Ponzi Scheme," Robert Butche writes, "Little did people know that banking and finance had contracted a nasty disease -- one known in the grifter trade as a Ponzi Scheme -- in which sub-prime mortgages were securitized and traded based on an unsustainable promise to pay high returns to investors from monies obtained from subsequent investors."
In the commentary to the NY Post article above, a Ph.D. in Physics explained that his fellow graduates all went to work for big banks, brokerages and Fannie May. They were "hired to do complicated calculations (loop level) borrowed from quantum field theory and statistical mechanics. They can take any number(s) as an input and produce any output as desired. Hence the banks hired at a much higher pay these people than they could earn in Universities or research institutes...Their bosses told them to inflate the value of anything to any number and these people did that."
"No ordinary derivatives trader can ever understand any formula(e) to calculate the value of anything. These are too complicated but intentionally. But there are some conservation laws for energy, momentum etc in physics. Where every (loop level) calculation has to abide by them. In finance and banking there is no such conserved quantity as credit can be created from thin air and destroyed also to that. Hence the fiasco."
BERNARD MADOFF, RAHM EMMANUEL
Madoff was a pillar of Wall Street, one of the founders of the NASDAQ Exchange and a former Chairman. His private Investment business became known for delivering steady returns year after year and attracted billions. Little did anyone imagine he was using new investments to provide returns on old ones. The house of cards came crashing down last week when he confessed to his sons, who promptly reported him. He had lost their money too. He had cheated family and friends.
"Madoff's investors included captains of industry, corporations -- some of which are publicly traded -- that used Madoff almost as a high-yielding cash management account, endowments, universities, foundations and, importantly, many high-profile funds of funds," said Douglas Kass, who heads hedge fund Seabreeze Partners Management. "It appears that at least $15 billion of wealth, much of which was concentrated in southern Florida and New York City, has gone to 'money heaven,'" he said.
Madoff's $50 billion scam is described as the largest in history. But it pales in comparison with what Robert Rubin and his ilk have done to the world. With the possible exception of Ponzi himself, most of the scamsters mentioned here are Jewish. A consolation to anti-Semites, the biggest victims probably also are Jews. One Jewish Foundation, which gave away $1.5 million to Jewish causes, closed its doors and laid off its employees. All its money was invested with Madoff.
"This guy [has] killed more Jews then Hitler," one wag said in a forum. "Wait till you read the formal complaint from the SEC and FBI." Then he added facetiously, "Now that the Jew has been thrown down the well, is our country free?"
Thankfully Illinois Governor Rod Blagojevich is not Jewish, but Obama's Jewish Chief of Staff, Rahm Emanuel is implicated in the Governor's plan to sell Obama's Senate Seat. Obama was put in power by Illuminati Jews and Masons and there is going to be plenty of corruption.
Just as there was collateral damage when Illuminati bankers put Hitler into power, (the loss of 60 million people) Jews today have got to break rank with the bankers and their political puppets. We're not responsible for their machinations and Jews suffer as much as anyone.
Moreover, Jews are going to be blamed unless we join in exposing and opposing the Illuminati, (i.e. the highest rank of Freemasonry consisting of Jews and non-Jews.) Organized Jewry and many individual Jews are witting and unwitting instruments of the Illuminati bankers' plan for totalitarian world government.
At the same time, we need to ask ourselves whether there is some flaw in Jewish culture that makes so many Jews sacrifice personal integrity for financial success and power.
Finally, wars and depressions don't happen by accident. They are planned by the Illuminati years in advance. They are designed to engineer social and political change. See my "Illuminati Bankers Seek "Revolution" by Economic Means" and "Credit Crunch: Occult Colonization of the Developed World?" The media is controlled by the Illuminati and advances their agenda. That's why the spotlight is on Bernard Madoff and not Robert Rubin.
----
Federal Reserve Won't Reveal How it Spent Two Trillion Taxpayer Dollars
Madoff Fraud Hits Many Investors
Panic in Palm Beach
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5333901.ece
Sovietizing the US Economy-The Final Phase
The arrest of financier Bernard Madoff Thursday for operating a "Ponzi scheme" costing investors $50 billion made the TV network news. Curiously, a lawsuit the same day against Clinton Treasury Secretary Robert Rubin for defrauding Citibank shareholders of more than $122 billion, also described as a "Ponzi scheme," got no airplay whatsoever.
As we shall see, Rubin, a Director of Citibank, profited from the shady practices that destroyed the financial system and sent the world's economies into a tailspin. Then, to repair the damage, he and his banker friends put the taxpayer on the hook for trillions.
Rubin didn't get the same publicity as Madoff because of his close connection to Barack Obama.
Robert Rubin's son Jamie was Obama's main Wall Street fundraiser and is now one of his principal advisers. More significant, Obama's economic team consists of Rubin's proteges including Timothy Geithner, Treasury Secretary, Lawrence Summers, Senior Economic Adviser and Peter Orszag, Budget Director. The Times of London has already dubbed them the "Robert Rubin Memorial All Stars."
Clearly, the media don't want people to realize that the candidate of "Change" chose the people responsible for this calamity to be his "economic team." While in the Clinton White House, Rubin, with Summers, helped tear down the regulatory walls between banks, brokerages and insurance companies and freed them to trade in unregulated and little-understood derivatives worth trillions of dollars.
THE LAW SUIT
In an article entitled "Ponzi Scheme at CITI," the New York Post reported: "A new Citigroup scandal is engulfing Robert Rubin and his former disciple Chuck Prince for their roles in an alleged Ponzi-style scheme that's now choking world banking.
Director Rubin and ousted CEO Prince - and their lieutenants over the past five years - are named in a federal lawsuit for an alleged complex cover-up of toxic securities that spread across the globe, wiping out trillions of dollars in their destructive paths.
Investor-plaintiffs in the suit accuse Citi management of overseeing the repackaging of unmarketable collateralized debt obligations (CDOs) that no one wanted - and then reselling them to Citi and hiding the poisonous exposure off the books in shell entities.
The lawsuit said that when the bottom fell out of the shaky assets in the past year, Citi's stock collapsed, wiping out more than $122 billion of shareholder value.
However, Rubin and other top insiders were able to keep Citi shares afloat until they could cash out more than $150 million for themselves in "suspicious" stock sales" calculated to maximize the personal benefits from undisclosed inside information," the lawsuit said.
The latest troubles for Rubin, Prince and others emerged in a 500-page investigation by Citigroup investors represented by law firm Kirby McInerney.
The probe was used to amend and add new details to a blanket investor lawsuit filed against Citigroup a year ago. The amended suit called the actions of Citi leaders "a quasi-Ponzi scheme" to hide troubles - and keep Citi stock afloat while insiders unloaded about 3 million shares between Jan. 1, 2004 and Feb. 22, 2008 for huge profits.
In addition to Citigroup, Rubin and Prince, the complaint names Vice Chairman Lewis Kaden, ex-CFO Sallie Krawcheck and her successor CFO Gary Crittenden.
Rubin cleared $30.6 million on his stock sales, while Prince got $26.5 million, former COO Robert Druskin got nearly $32 million and former Global Wealth Management unit chief Todd Thomson got $25.7 million, the suit said."
THE PONZI SCHEME
In an article, "The Great American Ponzi Scheme," Robert Butche writes, "Little did people know that banking and finance had contracted a nasty disease -- one known in the grifter trade as a Ponzi Scheme -- in which sub-prime mortgages were securitized and traded based on an unsustainable promise to pay high returns to investors from monies obtained from subsequent investors."
In the commentary to the NY Post article above, a Ph.D. in Physics explained that his fellow graduates all went to work for big banks, brokerages and Fannie May. They were "hired to do complicated calculations (loop level) borrowed from quantum field theory and statistical mechanics. They can take any number(s) as an input and produce any output as desired. Hence the banks hired at a much higher pay these people than they could earn in Universities or research institutes...Their bosses told them to inflate the value of anything to any number and these people did that."
"No ordinary derivatives trader can ever understand any formula(e) to calculate the value of anything. These are too complicated but intentionally. But there are some conservation laws for energy, momentum etc in physics. Where every (loop level) calculation has to abide by them. In finance and banking there is no such conserved quantity as credit can be created from thin air and destroyed also to that. Hence the fiasco."
BERNARD MADOFF, RAHM EMMANUEL
Madoff was a pillar of Wall Street, one of the founders of the NASDAQ Exchange and a former Chairman. His private Investment business became known for delivering steady returns year after year and attracted billions. Little did anyone imagine he was using new investments to provide returns on old ones. The house of cards came crashing down last week when he confessed to his sons, who promptly reported him. He had lost their money too. He had cheated family and friends.
"Madoff's investors included captains of industry, corporations -- some of which are publicly traded -- that used Madoff almost as a high-yielding cash management account, endowments, universities, foundations and, importantly, many high-profile funds of funds," said Douglas Kass, who heads hedge fund Seabreeze Partners Management. "It appears that at least $15 billion of wealth, much of which was concentrated in southern Florida and New York City, has gone to 'money heaven,'" he said.
Madoff's $50 billion scam is described as the largest in history. But it pales in comparison with what Robert Rubin and his ilk have done to the world. With the possible exception of Ponzi himself, most of the scamsters mentioned here are Jewish. A consolation to anti-Semites, the biggest victims probably also are Jews. One Jewish Foundation, which gave away $1.5 million to Jewish causes, closed its doors and laid off its employees. All its money was invested with Madoff.
"This guy [has] killed more Jews then Hitler," one wag said in a forum. "Wait till you read the formal complaint from the SEC and FBI." Then he added facetiously, "Now that the Jew has been thrown down the well, is our country free?"
Thankfully Illinois Governor Rod Blagojevich is not Jewish, but Obama's Jewish Chief of Staff, Rahm Emanuel is implicated in the Governor's plan to sell Obama's Senate Seat. Obama was put in power by Illuminati Jews and Masons and there is going to be plenty of corruption.
Just as there was collateral damage when Illuminati bankers put Hitler into power, (the loss of 60 million people) Jews today have got to break rank with the bankers and their political puppets. We're not responsible for their machinations and Jews suffer as much as anyone.
Moreover, Jews are going to be blamed unless we join in exposing and opposing the Illuminati, (i.e. the highest rank of Freemasonry consisting of Jews and non-Jews.) Organized Jewry and many individual Jews are witting and unwitting instruments of the Illuminati bankers' plan for totalitarian world government.
At the same time, we need to ask ourselves whether there is some flaw in Jewish culture that makes so many Jews sacrifice personal integrity for financial success and power.
Finally, wars and depressions don't happen by accident. They are planned by the Illuminati years in advance. They are designed to engineer social and political change. See my "Illuminati Bankers Seek "Revolution" by Economic Means" and "Credit Crunch: Occult Colonization of the Developed World?" The media is controlled by the Illuminati and advances their agenda. That's why the spotlight is on Bernard Madoff and not Robert Rubin.
----
Federal Reserve Won't Reveal How it Spent Two Trillion Taxpayer Dollars
Madoff Fraud Hits Many Investors
Panic in Palm Beach
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5333901.ece
Sovietizing the US Economy-The Final Phase
Dual U.S./Israel citizenship and public policy
There is growing concern that U.S. domestic and foreign policy is being influenced by people in public office who enjoy dual U.S./Israel citizenship.
Regarding foreign policy, the U.S. government unerringly favors Israel in all instances—even when Israel is obviously the aggressor or unjustified in its actions (see story at right). The concern here goes all the way back to June 8, 1967, when Israel conducted an unprovoked attack on the USS Liberty, a U.S. Navy surveillance vessel in international waters—and the LBJ administration "punished" Israel by continuing to give it $billions each year even though 34 Americans were killed in the attack and another 175 were wounded—with no apologies.
There is increasing concern that persons of Jewish faith, many of whom are likely dual U.S./Israeli citizens, are wielding tremendous policymaking authority over U.S. economic policymaking bodies, including the U.S. Congress, the U.S. Treasury, the Federal Reserve System and the world’s most powerful banking institutions.
And the concerns are deepening. The Jerusalem Post reported Nov. 5. 2008, that, "The next session of Congress will include 45 Jewish lawmakers, a new record."
The Jewish Journal reported Nov. 4, 2008, that Obama, whose sympathies for Israel are on par with both President Bush and his defeated Republican counterpart John McCain, received 78 percent of the Jewish vote during the Nov. 4 elections.
Dual citizenship
There are 93 countries that tolerate dual citizenship. Israel is unique in that being Jewish and coming to Israel qualifies one for citizenship where all other countries require a naturalization process.
There is no tracking registry in the U.S. for dual citizens so estimates range dramatically. There are an estimated 5 million U.S./Mexico dual citizens. No numbers on estimated U.S./Israel dual citizens could be found but the following list of U.S./Israel citizens in the federal government has been published:
Attorney General - Michael Mukasey
Head of Homeland Security - Michael Chertoff
Chairman Pentagon’s Defense Policy Board - Richard Perle
Deputy Defense Secretary (Former) - Paul Wolfowitz
Under Secretary of Defense - Douglas Feith
National Security Council Advisor - Elliott Abrams
VP Cheney’s Chief of Staff (Former) - "Scooter" Libby
White House Deputy Chief of Staff - Joshua Bolten
Under Secretary of State for Political Affairs - Marc Grossman
Director of Policy Planning at the State Dep.- Richard Haass
U.S. Trade Representative - Robert Zoellick
Pentagon’s Defense Policy Board - James Schlesinger
UN Representative (Former) - John Bolton
Under Secretary for Arms Control - David Wurmser
Pentagon’s Defense Policy Board - Eliot Cohen
Senior Advisor to the President - Steve Goldsmith
Principal Deputy Assistant Secretary - Christopher Gersten
Assistant Secretary of State - Lincoln Bloomfield
Deputy Assistant to the President - Jay Lefkowitz
White House Political Director - Ken Melman
National Security Study Group - Edward Luttwak
Pentagon’s Defense Policy Board - Kenneth Adelman
Defense Intelligence Agency Analyst (Former) -Larry Franklin
National Security Council Advisor - Robert Satloff
President Export-Import Bank U.S. - Mel Sembler
White House Speechwriter - David Frum
White House Spokesman (Former) - Ari Fleischer
Pentagon’s Defense Policy Board - Henry Kissinger
Deputy Secretary of Commerce - Samuel Bodman
Many of the countries that tolerate dual citizenship allow dual citizens to hold public office. It is, however, understood that most dual citizens will choose their native country over an adopted country when forced to decide allegiance. It has also been shown that most people will maintain their allegiance to country over religion.
The reasons people choose dual citizenship are surprisingly few and mostly due to cultural attachment, family relations and for travel convenience. A minority of dual citizens use their dual citizenship with criminal intent.
It is curious that, at a time when homeland security is allegedly so important, that the Department of Homeland Security (DHS) has not developed a registry of dual citizens. But then, the DHS director Michael Chertoff is, himself, a dual citizen.
Regarding foreign policy, the U.S. government unerringly favors Israel in all instances—even when Israel is obviously the aggressor or unjustified in its actions (see story at right). The concern here goes all the way back to June 8, 1967, when Israel conducted an unprovoked attack on the USS Liberty, a U.S. Navy surveillance vessel in international waters—and the LBJ administration "punished" Israel by continuing to give it $billions each year even though 34 Americans were killed in the attack and another 175 were wounded—with no apologies.
There is increasing concern that persons of Jewish faith, many of whom are likely dual U.S./Israeli citizens, are wielding tremendous policymaking authority over U.S. economic policymaking bodies, including the U.S. Congress, the U.S. Treasury, the Federal Reserve System and the world’s most powerful banking institutions.
And the concerns are deepening. The Jerusalem Post reported Nov. 5. 2008, that, "The next session of Congress will include 45 Jewish lawmakers, a new record."
The Jewish Journal reported Nov. 4, 2008, that Obama, whose sympathies for Israel are on par with both President Bush and his defeated Republican counterpart John McCain, received 78 percent of the Jewish vote during the Nov. 4 elections.
Dual citizenship
There are 93 countries that tolerate dual citizenship. Israel is unique in that being Jewish and coming to Israel qualifies one for citizenship where all other countries require a naturalization process.
There is no tracking registry in the U.S. for dual citizens so estimates range dramatically. There are an estimated 5 million U.S./Mexico dual citizens. No numbers on estimated U.S./Israel dual citizens could be found but the following list of U.S./Israel citizens in the federal government has been published:
Attorney General - Michael Mukasey
Head of Homeland Security - Michael Chertoff
Chairman Pentagon’s Defense Policy Board - Richard Perle
Deputy Defense Secretary (Former) - Paul Wolfowitz
Under Secretary of Defense - Douglas Feith
National Security Council Advisor - Elliott Abrams
VP Cheney’s Chief of Staff (Former) - "Scooter" Libby
White House Deputy Chief of Staff - Joshua Bolten
Under Secretary of State for Political Affairs - Marc Grossman
Director of Policy Planning at the State Dep.- Richard Haass
U.S. Trade Representative - Robert Zoellick
Pentagon’s Defense Policy Board - James Schlesinger
UN Representative (Former) - John Bolton
Under Secretary for Arms Control - David Wurmser
Pentagon’s Defense Policy Board - Eliot Cohen
Senior Advisor to the President - Steve Goldsmith
Principal Deputy Assistant Secretary - Christopher Gersten
Assistant Secretary of State - Lincoln Bloomfield
Deputy Assistant to the President - Jay Lefkowitz
White House Political Director - Ken Melman
National Security Study Group - Edward Luttwak
Pentagon’s Defense Policy Board - Kenneth Adelman
Defense Intelligence Agency Analyst (Former) -Larry Franklin
National Security Council Advisor - Robert Satloff
President Export-Import Bank U.S. - Mel Sembler
White House Speechwriter - David Frum
White House Spokesman (Former) - Ari Fleischer
Pentagon’s Defense Policy Board - Henry Kissinger
Deputy Secretary of Commerce - Samuel Bodman
Many of the countries that tolerate dual citizenship allow dual citizens to hold public office. It is, however, understood that most dual citizens will choose their native country over an adopted country when forced to decide allegiance. It has also been shown that most people will maintain their allegiance to country over religion.
The reasons people choose dual citizenship are surprisingly few and mostly due to cultural attachment, family relations and for travel convenience. A minority of dual citizens use their dual citizenship with criminal intent.
It is curious that, at a time when homeland security is allegedly so important, that the Department of Homeland Security (DHS) has not developed a registry of dual citizens. But then, the DHS director Michael Chertoff is, himself, a dual citizen.
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