Wall Street: Never Give a Sucker an Even Break

The Wall Street Code

VPRO (2013)

Film Review

While the rest of us are busting our ass to earn an honest living, Wall Street traders are running around thinking up new ways to rip us off. And laughing all the way to the bank. I love the way they refer to ordinary investors with pension funds or retirement accounts as “dumb money.”

The Wall Street Code is all about whistleblower Haim Bodek and his discovery of a secret algorithm used by high frequency traders to rip off mutual and pension funds (aka “dumb money”).

As of 2013, when this documentary was made, 70% of Wall street trading was automated and 50% occurred within milliseconds. When large volume trades are made, they always drive the share price up. This means there’s a distinct advantage in getting your order in before a large volume trade by a pension or mutual fund.

Badek discovered a secret algorithm that alerted unscrupulous traders to large volume trades before they were made public and help them jump to the front of the queue (and purchase stocks before the share price started to rise).

Michael Lewis writes about a similar scam in his 2015 book Flash Boys. The book concerns whistleblower Brad Katsuyama’s discovery that high frequency traders were secretly exploiting minute differences in the speed of electronic transmissions (see Wall Street More Deeply Corrupt than We Thought).

Bodek believes that Lewis seriously underestimates the serious amount of fraud occurring on Wall Street. Bodek’s persistence has resulted in the prosecution of the New York Stock Exchange by the Security and Exchange Commission – resulting in unprecedented fines being imposed.

See http://blog.themistrading.com/2018/03/the-return-of-haim-bodek/

Inside the Banker’s Brain: The Physiology of Greed

In Search of the Banker’s Brain

Directed by Jos de Putter (2013)

Film Review

In Search of the Banker’s Brain is about the biochemical changes associated with greed. Inspired by a Dutch blogger who investigated the “banker culture” that led to the 2008 global economic collapse, it paints a troubling picture about our willingness to place the welfare of the global economy in the hands of 25-year-old ruthless macho hyper-competitive psychopaths.

In addition to several former investment bankers, the film also features a Dutch psychologist who treats Wall Street bankers and a former trader turned neuropsychologist who investigates how greed affects the brain. He begins by describing the rigged reward system that rewards traders to take enormous risks with other peoples’ money – they get massive bonuses if they’re successful and no consequences at all if they fail.

In response, they begin to crave risk, which feels just like a narcotic when it floods their brain with adrenaline and cortisol. They become cunning like heroin addicts looking for their next fix and show traits (loss of conscience and scruples) virtually indistinguishable from psychopaths in a prison environment.

Like psychopaths, they also tend to burn out around age 40, which is when they are at high risk for “econocide.”*


* Term coined by psychologists term for banker suicide.

 

The Lost Science of Money – Wars Are Won By Bankers, Not Armies

The Lost Science of Money: The Mythology of Money – The Story of Power

by Stephen Zarlinga

American Monetary Institute (2002)

Book Review

This book, by co-author of Congressman Dennis Kucinich’s HR 2990 to abolish the Federal Reserve (see HR2990: Historic Bill to Abolish the Federal Reserve), is one of the most amazing books I’ve ever read. At 775 pages, the lowest price I could find for a used copy was $225 from Alibris. Fortunately it’s also available in PDF format at Lost Science of Money

It’s clear from Zarlenga’s extensive documentation and footnotes that the research for this book took decades. He essentially rewrites western history dating back to the ancient Sumerians. His goal is to expose and correct all the distortions and myths introduced into official history historians in the pay of merchants and bankers. Both are fiercely committed to perpetuating our current global monetary system in which private central banks create and control the money supply.

Among many others, two of the myths Zarlenga explodes are that the Roman Empire collapsed due to barbarian invasion (he demonstrates very convincingly that Rome collapsed due to a debasement of their currency) and the often repeated claim that excessive government printing of money was responsible for the deadly inflation in the early years of the Third Reich – as Zarlenga points out, it was actually the privately owned central Reichsbank that issued the money and created the inflation.

The Concept of “True Money,”

Zarlenga begins by establishing a clear difference between “true money,” which he defines as money with a fixed value set by law and “commodity money,” in which private merchants and banks issue and control the value of money. In the rare historical periods where governments have issued and controlled money by law, the result has been long periods of political stability and flourishing industry and culture.

The Romans enjoyed the longest continuous period (200 years) of monetary stability. Roman leaders maintained control of their money by prohibiting silver and gold coinage for domestic use – issuing fixed value copper and bronze coinage instead. In this way they prevented foreign merchants from capturing control of their money supply and manipulating the value of their currency.

He Who Controls the Money Controls the World

Zarlenga carefully traces how after the fall of the Roman Empire, control of western money shifted from Constantinople (after the 4th Crusade which sacked Constantinople – see link), to Venice, to Portuguese traders in Antwerp (after they opened the trade route around the southern tip of Africa), to Amsterdam (following the civil war splitting the Netherlands into Holland and Belgium), to London (after the Dutch prince William of Orange seized the English throne). In each case, control of the money supply was far more important than military strength in consolidating political control.

Zarlinga also clarifies, though careful research, the historical role played by the Knights Templar and Jewish merchants and money lenders in the development of global monetary centers.

The Dutch Usurper Who Chartered the Bank of England

One of the sections that interested me most concerned the founding of the Bank off England – which set the global standard for all private central banks – in 1694. Previously I hadn’t realized that the Bank of England was started by a Dutch king (William of Orange), who usurped the English throne from James II. Nor that his purpose for chartering the Bank of England was to advance the interest of the Dutch merchants and bankers who initially controlled it.

“True Money” in the Americas

I also enjoyed the detailed section outlining the history of government issued money in the US. Again Zarlenga presents extensive and convincing evidence that it was the ability of colonial governors to issue their own money that enabled commerce and industry in the 13 original colonies, as well as enabling them to organize a successful war of independence against England.

Zarlenga also describes in detail the battle Jefferson, Andrew Jackson and their allies fought against the creation of a privately controlled central bank, as well as the immense popularity of the Greenback Congress issued during the Civil War – and the immense national uprising (the populist movement) launched at the end of the 19th century to save them.

The Federal Reserve Engineers the Great Depression

Obviously the book wouldn’t be complete without a chapter on the criminal conspiracy that lead to the formation of the Federal Reserve in 1913, the Federal Reserve’s role in engineering the Great Depression 26 years later, and Roosevelt’s prolonged battle with Wall Street to implement the New Deal recovery.

Hidden History: The War on Terror

Crossing the Rubicon: the Decline of the American Empire at the End of the Age of Oil

by Michael Ruppert

New Society Publishers (2004)

Book Review

I recently picked up Michael Ruppert’s Crossing the Rubicon for the first time in nearly 13 years. I’ve always admired Ruppert, who killed himself in April 2014. It was after hearing him present early evidence (in May 2002) about the role of Bush insiders in 9-11 that I made a decision to close my psychiatric practice and move to New Zealand.

In re-reading Rupert’s 617-page encyclopedia of Peak Oil, CIA narcotics trafficking and the foreign policy/intelligence background to the mother of all false flag operations, I’m totally amazed about the amount of evidence he had already collected in 2004. Nearly all his conclusions have been corroborated by other investigators. At the same time many of his findings, particularly regarding Clinton’s role in supporting the Taliban’s rise to power, don’t receive nearly enough attention in the 9-11 Truth community.

Ruppert links Clinton’s decision to put the Taliban in power in Afghanistan to the oil exploration he facilitated in the Caspian Sea basin by declaring war on Yugoslavia. Both Enron (see The Greedy Bastards who Gave us Enron and Bankrupted California) and Halliburton (Dick Cheney’s oil company) had deep commitments in Caspian Sea and Central Asian oil and gas companies. Both companies needed pipelines across Afghanistan to transport oil and gas to energy-hungry Pakistan, India and China. Building and maintaining said pipelines was totally impossible in a country that, following Soviet withdrawal, had become a failed state of feuding warlords.

According to Ruppert, in was Clinton’s intent to “pacify” Afghanistan by putting the totalitarian Taliban regime in power. Ruppert’s evidence for these assertions comes mainly from Congressional hearings called by Republican Congressman Dana Rohrabacker to challenge Clinton’s support for the Taliban. Ruppert also describes the two years (1999-2000) of 6+2 meetings (to plan the pipelines) between Taliban representatives, and the US, Russia, Pakistan, China, Iran, Uzbekistan, Tajikistan and Turkmenistan.

The Clinton administration suddenly reversed their position on the Taliban in 1999, after the results of exploratory Caspian Sea oil drilling revealed the limited deposits were too small to be commercially viable.

Ruppert goes on to present substantial evidence that the decision to go to war against the Taliban was made during the Clinton presidency – he first imposed economic sanctions against them in July 1999. Ruppert maintains this related less to the oil and gas lobby than to the banking/finance lobby, which had become addicted to drug profits from Afghan opium production. Following Soviet withdrawal, the CIA had worked with opium warlords to concentrate world opium production in Afghanistan. The loss of billions dollars of money laundering profits threatened to wreak major havoc with Wall Street and the US economy.

Ruppert, a five year veteran of the LAPD narcotics squad, devotes several chapters of Crossing the Rubicon to the CIA’s historic role in narcotics trafficking and the role of all major US banks and brokerage hoses in money laundering.

Ruppert also makes a strong case that planning for 9-11 began during the Clinton administration and that National Security Adviser Sandy Berger, Secretary of State Madeleine Albright, Energy Secretary Bill Richardson and NATO commander Wesley Clarke were party to the planning.

George Seldes: Fighting the Corporate Takeover of the Press

Tell the Truth and Run: George Seldes and the American Press

Directed by Rick Goldsmith (1996)

Film Review

Tell the Truth and Run is a tribute to muckraking* journalist George Seldes, released shortly after his death at 104. It takes its title from a book Seldes published in 1952. It includes an extensive interview with Seldes at age 98, detailed biographical sketches and commentary by prominent activists, whistleblowers and media reformers (including Ralph Nader, Daniel Ellsberg and Ben Badikian, Victor Navksy and Jeff Cohen) who were influenced by his work.

Born in 1890, Seldes first became a reporter at 18, just as all major dailies were starting to rely on advertisers (instead of readers) for their funding base. As this occurred, investigative journalists seeking to expose government and corporate corruption began writing for the monthly magazines instead. Bankster JP Morgan and other industrial robber barons put an end to this by buying up all the monthly magazines.

Seldes quit his first job at the Pittsburgh Leader after the publisher spiked a story he wrote about the son of a department store magnate who raped a female staff member.

Following an eye opening stint in the US military press corps during World War I, Seldes became a foreign correspondent for the Chicago Tribune. He first ran into difficulty at that paper for exposing the violent and corrupt nature of Mussolini’s fascist regime – at a time when the US government and all the major newspapers were pro-Mussolini (owing to banker JP Morgan’s desire to refinance Italy’s World War I debt).

Seldes quit the Tribune in 1927 and published the first two of a series best selling books (You Can’t Print That and Can These Things Be?) based on all his material the Tribune refused to publish between 1918 and 1928.

Between 1940-1950 he put out the weekly newsletter In Fact: An Antidote to Falsehoods in the Daily Press. He would use the newsletter to expose the FBI role in spying on labor unions and  corporate media’s failure to report on 1940s research documenting health problems associated with smoking. He was also the first investigative journalist to expose the role of major Wall Street corporations in supporting Hitler’s rise to power.


* A term applied to American investigative reporters, novelists and critics of the Progressive Era (1890-1930)

 

How Putin Outwitted the Russian Oligarchs

The Rise and Fall of the Russian Oligarchs

Directed by Alexander Gentelev (2006)

Film Review

The Rise and Fall of the Russian Oligarchs focuses on the scandalous period after the collapse of the Soviet Union, in which 100 opportunist oligarchs destroyed the economy of a relatively wealthy country (with the help of the CIA, USAID, the IMF and the World Bank) by seizing $20 billion of assets for roughly a billion dollars. The admitted goal of these Russian oligarchs (and their CIA supporters) was to privatize as many industries as possible behind the scenes before the Communist majority in the Russian parliament could consolidate power and stop them. The documentary’s overarching theme concerns Putin’s rise to power in 1999, which is credited for saving the Russian economy via his shrewd confrontation and defeat of these oligarchs.

This Russian-made documentary focuses on three specific oligarchs: Mikhail Chernoy, who now lives in exile in Israel; Theodore Gusinski, who now lives in exile in Spain, and Boris Beresovksy, who now lives in exile in London. It’s divided into two parts.

Part 1

Part 1 describes how these men used privatization schemes introduce by the last Soviet president Mikhail Gorbachev (under Perestroika – 1985-1991) to acquire a variety of Russian assets for pennies on the dollar. With the collapse of the Soviet Union in 1991, many state-owned factories were threatened with closure, the Russian government initially privatized them through an ill-conceived voucher scheme. Ownership in the factories was broken up into millions of shares in the form of vouchers distributed to all Russian citizens. Because they had no other source of income, many were forced to sell their vouchers cheaply for food. Others were tricked into “investing” them in phoney investment schemes as their owners sold on their hoard of vouchers and pocketed the proceeds.

Chernoy wound up with hundreds of thousands of these vouchers, which he used to buy up Russia’s aluminum industry.

Using western financing, Gusinski would form Russia’s first commercial TV network in 1993. In 1994 Berezovsky (again with the help of western financing) would buy Russian state TV for a few million dollars. Joining with other oligarchs, they skillfully used their media monopoly to promote their privatization agenda.

Part 1 also covers the 1991 attempted coup against Gorbachev (a desperate attempt by the Communists to reverse rapid privatization); Yeltsin’s successful (CIA-backed) coup in 1993, in which he used the military to attack the Russian parliament, effectively dissolving parliament and the constitutional court; and the vast human misery caused by the “shock therapy” Wall Street imposed Russia as they looted their economy. This, in turn, would lead to escalating mass protests demanding a return of the Communists to power.

Part 2

Part 2 focuses on the oligarch (and CIA) financed and controlled election of Boris Yeltsin in 1996 – as well as the direct role the oligarchs assumed in government following Yeltsin’s victory against his more popular Communist opponent.

The Russian economy reached breaking point in 1998. By then, the Russian government had lost so main state-owned industries (75%) that it could no longer pay its debts and Russian banks froze depositors assets.

This, along with Yeltsin’s failing health, would lead to a political crisis, resulting in Vladimir Putin’s appointment as acting president initially supported by the oligarchs – in 1999. Following Putin’s election in 2000, he quickly turned on oligarch supporters, who expected to control his government as they had Yeltsin’s.

Then, as now, he excelled at media manipulation, capitalizing on popular fear of Chechen terrorism to heighten his popularity. He also shrewdly confronted individual oligarchs for tax evasion and other financial crimes during televised cabinet meetings.

This was followed up by security raids and harassment, arrest – and in some cases imprisonment – to encourage numerous oligarchs to relinquish their ill-gotten shares to state control.

In this way, Putin essentially ended Wall Street’s wholesale exploitation of the Russian economy and the Russian people – and Wall Street and the US military-intelligence complex have never forgiven him for it.

The documentary’s main weakness is its failure to explore the major role Wall Street and US intelligence played in the destruction of the Russian economy between 1991-2000. Good background on this at the following links:

The Harvard Boys do Russia

US Meddling in 1996 Russian Elections in Support of Boris Yeltsin

USA Russia

The Plunder of Russia in the 1990s

The CIA and Congo’s 20-Year Civil War

The following presentation by Friends of the Congo Executive Director Maurice Carney provides an elegant but horrifying summary of the CIA’s 50-year assault on the Republic of Congo. The Congo has the distinct misfortune of having amazingly rich mineral resources (uranium, gold, diamonds, copper, cobalt and especially coltran*). The result has been a single minded determination by Wall Street and the CIA to destroy democratic rule in that country. I was well aware of the importance of CIA and US State Department in destabilizing Latin America, Asia, Russia and the Middle East. Until recently I was less aware of their aggressive machinations in Africa.

According to Carney, their first president Patrice Lumumba became a high priority CIA target it due to joint efforts with Kwame Nkrumah of Ghana to establish a United States of Africa. This presumably would have granted the continent total independence of US corporate rule.

After briefly summarizing the county’s ruthless colonization by Belgium, Carney describes the Congo’s struggle for independence under Patrice Lumumba in 1960, the first and only legitimately elected president. After assassinating Lumumba, the CIA installed a 30 year dictatorship to ensure US corporations continued access to Congo’s resources on their terms.

In 1996, the people of Congo had just overthrown the dictatorship and installed democratic government when the CIA instigated puppet sociopaths ( Paul Kagami of Rwanda and Yoweri Museveni of Uganda) to invade and instigate a 20 year civil war in Congo. In addition to providing them military aid and training, the US government actively covers up Kagami and Museveni’s war crimes, resulting in millions of civilian deaths.

The International Court of Justice (ICJ) has recently ordered to Uganda to pay millions in reparations to Congo. As Rwanda doesn’t belong to the ICJ, Spanish courts (under the authority of universal jurisdiction) have indicted 40 top Rwandan officials for war crimes

Current Congo president Joseph Kabila, also handpicked by the CIA, who succeeded his father Laurent-Désiré Kabila (1997-2001), maintains power by way of a US-rigged election in 2006 and massive electoral fraud in 2011.

See also The US Rape of the Congo


*Coltran is a rare earth mineral essential in the manufacture of cellphones and computers.