Tyrants and Pontiffs As I was preparing the notes for this Sunday’s program, I began to realize how fully my predictions for the United States had been fulfilled. Dozens of us out here have been speaking to you for months, and perhaps even years to wake up and see what is happening to our republic. We could see that our congress had lost control of government. We begged for you to see it too, and act before it was too late.
We could see that since this nation was conceived and then formed through conflict against a tyranny that had held the world in its grips for thousands of years, that we had actually borrowed very little money. That is to say until the invasion of Washington by the Soviets in 1932 with the election of Roosevelt. When the money supply was collapsed by the world’s bankers with a simple jump in interest rates just at a time when the economy seemed to be roaring, it scorched the middle class out of existence and made the world poor for two decades.
The way out of global poverty was planned, simple, and executed with the precision only practice over thousands of years provides. Grow the central government until it consumes everything. With the patience of saints, evil dark saints of oppression and slavery, they formed agencies, departments, bureaus, and administrations that could write regulations with the force of law. There was no oversight. There was no review. There would be no protests. They would levy taxes, penalties, fines, confiscations, and the ultimate power to interfere with commerce wherever and whenever they saw fit. And the greatest tyranny of all? We the people would have no representation in that new, dark and sinister government. The greatest irony was that it would be staffed with our own neighbors.
For 83 years it grew in power and authority until it consumed 125% of the gross domestic product, plunging the entire nation hopelessly into debt from which it could never recover. It would wait for decades for a president evil enough to wield its power. With his own appointed ministers he would rule the world by laws that no one approved. He could lay waste to entire industries. He could destroy entire countries by barely firing a shot. He could select a class or a race or a religion and eviscerate them with the stroke of a pen.
He could steal trillions of dollars to build a new nation out of scattered tribes and evil killers from around the world. He could gather enough data on every living soul that he could neutralize his enemies before they ever even had a chance to face him. He could feed the benefits of his power to the warriors of his new nation so well they would not need a navy, an air force, or a space program to defeat and frustrate the greatest armies on earth.
Well, within 7 short years, we are captured. We have been splintered and chopped so well that the term American means nothing any more. The melting pot has been clabbered so that all the tribes that once made her the greatest nation the world has ever known were unmelted and dissected by a president who wanted to see the crusaders finally defeated.
He was determined not to let the defeat of his nation in 1924 stand. He would accomplish the impossible by bringing it back to power and rule the world through his beloved Caliphate. He would do it in two terms of his deeply incestuous presidency, using the same network of agents and assassins established by the Soviets in Washington. He would do it in plain sight while coating us with speeches crafted thousands of years ago. His words would be mighty and flattering, tickling our ears with hope, while the blades of Islam were slipped between our ribs.
Within 7 years, the mathematical formula developed before the Earth cooled would be loaded with the numbers that would make his victory absolute and irrefutable. Whole continents were invaded with billions of Muslim fighters and breeders. His well-crafted propaganda that we had destroyed our planet with our greed and our bodily machine waste and we must stop spreading like bacteria smearing the earth with our carbon footprints and our white babies dropped the birth rate to an unsustainable level. 2.5 children per family fell to 1.8, and then 1.5, and then 1.3. The numbers could not and would not lie. With those birth rates, within 40 years the nation would be on a collision course with self annihilation.
At the same time, he skillfully took his global resource of young male and female warriors, trained for hundreds of years in poverty and perfectly focused rage, and he invaded nation after nation and nation. And like a god, he commanded them to multiply and replenish the Earth. With a birth rate of 8.5, it should take less than 20 years to reach victory over the entire world. His skill is so good, and social media has amplified his dark abilities a hundredfold, that it took less than 7 years to become unstoppable.
Now, he has seized control of Washington completely. He will soon, against the will of 72% of Americans and against a hapless and self gratifying Congress, break the dam of trillions of dollars held in banks all over the world and spill it into the coffers of terrible princes and Imams. They will inject this unspeakable wealth into their own veins like the purest drug of rage, and they will unleash nuclear horror on their timeless enemies. Without a care of survival of their people, or even the planet itself, they will be like a super nova, shearing every hope, and the very name of Christ from existence.
This week we saw Pope Francis come to America and we heard his words. We also saw the ceremony and the ritual and the pomp and wealth of the church flaunted before us. While admitting they had closed more than 700 diocese and chapels across the country, they had spent $175 million refurbishing the cathedral in New York for this amazing TV production. Madison Square Gardens thundered like the Knickerbockers had just won the championship as benign and flattering words were tinkled from the microphone and the finest orchestra played the finest frequencies for the scanned and sanitized crowd. The homeless and the tens of millions of abortion victims had been swept aside, to avoid any unpleasantness.
There was no outcry against murder. There was no call to repent and stop the fetal genocide of Planned Parenthood, the selling of body parts was briefly mentioned. There was no ancient battle call against the scourge of Islam, like there had been in centuries past when popes ran for their lives and entire nations were raped and burned and beaded into submission and held there for nearly a thousand years. There was no righteous indignation against the turning of holy women into property forced to wear bags and towels over their beauty so Islamic males would not be driven to rape them where they stood.
He came, and he went and the criminals are left as safe as the Mafia heads who took communion on Sunday and sold drugs and protection the rest of the week. Privately he may pray for the soul of Barack Hussein Obama, but publicly he bowed his head in submission and said nothing to him or about him. So powerful was the pope’s presence and his silence, that it is my belief that John Boehner quit and is packing everything for his bunker in the hills. He could see the works of his secret combination with the dark prince. He knew his works would undo the greatest nation set apart and consecrated by God to save the world. He could not take the guilt any more, as the pope’s silence in the face of Obama heaped coals upon his head. He was burning alive and awoke the next day to say he resigns.
I hope that Daniel Webster will take his place, but I fear that it will be McCarthy. We will continue our dark march to the gallows, I am afraid.
Who Rules the World?
For decades, extreme ideologies on both the left and the right have clashed over the conspiratorial concept of a shadowy secret government pulling the strings on the world’s heads of state and captains of industry.
The phrase New World Order is largely derided as a sophomoric conspiracy theory entertained by minds that lack the sophistication necessary to understand the nuances of geopolitics. But it turns out the core idea — one of deep and overarching collusion between Wall Street and government with a globalist agenda — is operational in what a number of insiders call the “Deep State.”
In the past couple of years, the term has gained traction across a wide swath of ideologies. Former Republican congressional aide Mike Lofgren says it is the nexus of Wall Street and the national security state — a relationship where elected and unelected figures join forces to consolidate power and serve vested interests. Calling it “the big story of our time,” Lofgren says the deep state represents the failure of our visible constitutional government and the cross-fertilization of corporatism with the globalist war on terror.
“It is a hybrid of national security and law enforcement agencies: the Department of Defense, the Department of State, the Department of Homeland Security, the Central Intelligence Agency and the Justice Department. I also include the Department of the Treasury because of its jurisdiction over financial flows, its enforcement of international sanctions and its organic symbiosis with Wall Street,” he explained.
Even parts of the judiciary, namely the Foreign Intelligence Surveillance Court, belong to the deep state.
How does the deep state operate?
A complex web of revolving doors between the military-industrial-complex, Wall Street, and Silicon Valley consolidates the interests of defense contracts, banksters, military actions, and both foreign and domestic surveillance intelligence.
According to Mike Lofgren and many other insiders, this is not a conspiracy theory. The deep state hides in plain sight and goes far beyond the military-industrial complex President Dwight D. Eisenhower warned about in his farewell speech over fifty years ago.
While most citizens are at least passively aware of the surveillance state and collusion between the government and the corporate heads of Wall Street, few people are aware of how much the intelligence functions of the government have been outsourced to privatized groups that are not subject to oversight or accountability. According to Lofgren, 70% of our intelligence budget goes to contractors.
Moreover, while Wall Street and the federal government suck money out of the economy, relegating tens of millions of people to food stamps and incarcerating more people than China — a totalitarian state with four times more people than us — the deep state has, since 9/11, built the equivalent of three Pentagons, a bloated state apparatus that keeps defense contractors, intelligence contractors, and privatized non-accountable citizens marching in stride.
After years of serving in Congress, Lofgren’s moment of truth regarding this matter came in 2001. He observed the government appropriating an enormous amount of money that was ostensibly meant to go to Afghanistan but instead went to the Persian Gulf region. This, he says,“disenchanted” him from the groupthink, which, he says, keeps all of Washington’s minions in lockstep.
Groupthink — an unconscious assimilation of the views of your superiors and peers — also works to keep Silicon Valley funneling technology and information into the federal surveillance state. Lofgren believes the NSA and CIA could not do what they do without Silicon Valley. It has developed a de facto partnership with NSA surveillance activities, as facilitated by a FISA court order.
Now, Lofgren notes, these CEOs want to complain about foreign market share and the damage this collusion has wrought on both the domestic and international reputation of their brands. Under the pretense of pseudo-libertarianism, they helmed a commercial tech sector that is every bit as intrusive as the NSA. Meanwhile, rigging of the DMCA intellectual property laws — so that the government can imprison and fine citizens who jailbreak devices — behooves Wall Street. It’s no surprise that the government has upheld the draconian legislation for the 15 years.
It is also unsurprising that the growth of the corporatocracy aids the deep state. The revolving door between government and Wall Street money allows top firms to offer premium jobs to senior government officials and military yes-men. This, says Philip Giraldi, a former counter-terrorism specialist and military intelligence officer for the CIA, explains how the Clintons left the White House nearly broke but soon amassed $100 million. It also explains how former general and CIA Director David Petraeus, who has no experience in finance, became a partner at the KKR private equity firm, and how former Acting CIA Director Michael Morell became Senior Counselor at Beacon Global Strategies.
Wall Street is the ultimate foundation for the deep state because the incredible amount of money it generates can provide these cushy jobs to those in the government after they retire. Nepotism reigns supreme as the revolving door between Wall Street and government facilitates a great deal of our domestic strife:
“Bank bailouts, tax breaks, and resistance to legislation that would regulate Wall Street, political donors, and lobbyists. The senior government officials, ex-generals, and high level intelligence operatives who participate find themselves with multi-million dollar homes in which to spend their retirement years, cushioned by a tidy pile of investments,” said Giraldi.
How did the deep state come to be?
Some say it is the evolutionary hybrid offspring of the military-industrial complex while others say it came into being with the Federal Reserve Act, even before the First World War. At this time, Woodrow Wilson remarked,
“We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”
This quasi-secret cabal pulling the strings in Washington and much of America’s foreign policy is maintained by a corporatist ideology that thrives on deregulation, outsourcing, deindustrialization, and financialization. American exceptionalism, or the great “Washington Consensus,” yields perpetual war and economic imperialism abroad while consolidating the interests of the oligarchy here at home.
Mike Lofgren says this government within a government operates off tax dollars but is not constrained by the constitution, nor are its machinations derailed by political shifts in the White House. In this world — where the deep state functions with impunity — it doesn’t matter who is president so long as he or she perpetuates the war on terror, which serves this interconnected web of corporate special interests and disingenuous geopolitical objectives.
“As long as appropriations bills get passed on time, promotion lists get confirmed, black (i.e., secret) budgets get rubber stamped, special tax subsidies for certain corporations are approved without controversy, as long as too many awkward questions are not asked, the gears of the hybrid state will mesh noiselessly,” according to Mike Lofgren in an interview with Bill Moyers.
Interestingly, according to Philip Giraldi, the ever-militaristic Turkey has its own deep state, which uses overt criminality to keep the money flowing. By comparison, the U.S. deep state relies on a symbiotic relationship between banksters, lobbyists, and defense contractors, a mutant hybrid that also owns the Fourth Estate and Washington think tanks.
Is there hope for the future?
Perhaps. At present, discord and unrest continues to build. Various groups, establishments, organizations, and portions of the populace from all corners of the political spectrum, including Silicon Valley, Occupy, the Tea Party, Anonymous, WikiLeaks, anarchists and libertarians from both the left and right, the Electronic Frontier Foundation, and whistleblowers like Edward Snowden and others are beginning to vigorously question and reject the labyrinth of power wielded by the deep state.
Can these groups — can we, the people — overcome the divide and conquer tactics used to quell dissent? The future of freedom may depend on it.
The Red Planet The British architects behind Apple's new 'spaceship' campus have revealed their next project - a manned base for Mars.
It will be built by 3D printing robots on the Martian surface, giving man its first permanent base on another planet.
Foster + Partners New York’s design for a modular habitat on Mars has even been shortlisted amongst 30 finalists for the 3D Printed Habitat Challenge organised by America Makes and NASA, the firm revealed today.
'The design of the habitat – carried out in collaboration with industrial and academic partners – envisions a robust 3D-printed dwelling for up to four astronauts constructed using regolith – the loose soil and rocks found on the surface of Mars,' it said.
The settlement on Mars will be constructed by an array of pre-programmed, semi-autonomous robots prior to the eventual arrival of the astronauts.
The habitat will be delivered in two stages prior to the arrival of the astronauts.
First, the semi-autonomous robots select the site and dig a 1.5 metre deep crater, followed by a second delivery of the inflatable modules which sit within the crater to form the core of the settlement.
Given the vast distance from the Earth and the ensuing communication delays, the deployment and construction is designed to take place with minimal human input, relying on rules and objectives rather than closely defined instructions.
This makes the system more adaptive to change and unexpected challenges – a strong possibility for a mission of this scale.
Three different kinds of robots are parachuted to the surface of Mars, each performing a specialised task within the large-scale Regolith Additive Construction (RAC) process.
The loose Martian soil is then fused using microwaves around the modules using the same principles involved in 3D-printing by several small ‘Melters’.
The fused regolith creates a permanent shield that protects the settlement from excessive radiation and extreme outside temperatures.
The separation of tasks amongst the large number of robots, and the modularity of the habitat means a high level of redundancy is incorporated within the system – if one robot fails, or a single module is damaged, there are others that can fulfill its task, increasing the chances of a successful mission.
'The design of the compact 93 sqm habitat modules combines spatial efficiency with human physiology and psychology, with overlapping private and communal spaces, finished with ‘soft’ materials and enhanced virtual environments, which help reduce the adverse effects of monotony, while creating positive living environment for the astronauts,' the firm says.
This continues the practice’s earlier design explorations for building in extreme environments and extra-terrestrial habitats such as the Lunar Habitation project in consortium with the European Space Agency.
Nasa is making big promises for Monday, saying it will reveal the answer to a major mystery about Mars. There is much speculation that the mystery to be addressed is the phenomena known as 'recurring slope lineae', the dark tendrils observed on the planet surface during warm seasons, which it is speculated is evidence of water. Among those speaking at the briefing will be Alfred McEwen from the University of Arizona in Tucson, who in July published a study on slope activity in Mars's Gale crater, and Lujendra Ojha, a PhD candidate from the Georgia Institute of Technology in Atlanta who has collaborated with McEwen and has also studied the possible water activity on Mars.
Science and technology website Inverse.com highlighted Ojha as "the odd-person out at the news conference", pointing out that it was Ojha's undergraduate research that helped identify the recurring slope lineae.
The existence of water would be significant as it would mean there was a prospect of life on Mars.
The Supermoon This weekend's full Moon is a supermoon, the biggest and brightest full Moon of the year. And it is going to be eclipsed. On Sunday evening, Sept. 27th, the supermoon will pass through the shadow of Earth, turning the lunar disk a coppery shade of red. Sky watchers in the Americas, Europe, Africa, and eastern parts of Asia can see the event. The next total eclipse of the Moon won't come until January 31, 2018, so if you live in the eclipse zone, check it out.
What makes the eclipsed Moon turn red? A quick trip to the Moon provides the answer: Imagine yourself standing on a dusty lunar plain looking up at the sky. Overhead hangs Earth, nightside down, completely hiding the sun behind it. The eclipse is underway.
You might expect Earth seen in this way to be utterly dark, but it's not. The rim of the planet looks like it is on fire. As you scan your eye around Earth's circumference, you're seeing every sunrise and every sunset in the world, all of them, all at once. This incredible light beams into the heart of Earth's shadow, filling it with a coppery glow and transforming the Moon into a great red orb.
"During a lunar eclipse, most of the light illuminating the moon passes through the stratosphere where it is reddened by scattering. However, light passing through the upper stratosphere penetrates the ozone layer, which absorbs red light and actually makes the passing light ray bluer." This can be seen, he says, as a soft blue fringe around the red core of Earth's shadow.
The Stock Markets Of The 10 Largest Global Economies Are All Crashing
By Michael Snyder, on September 24th, 2015
You would think that the simultaneous crashing of all of the largest stock markets around the world would be very big news. But so far the mainstream media in the United States is treating it like it isn’t really a big deal. Over the last sixty days, we have witnessed the most significant global stock market decline since the fall of 2008, and yet most people still seem to think that this is just a temporary “bump in the road” and that the bull market will soon resume. Hopefully they are right. When the Dow Jones Industrial Average plummeted 777 points on September 29th, 2008 everyone freaked out and rightly so. But a stock market crash doesn’t have to be limited to a single day. Since the peak of the market earlier this year, the Dow is down almost three times as much as that 777 point crash back in 2008. Over the last sixty days, we have seen the 8th largest single day stock market crash in U.S. history on a point basis and the 10th largest single day stock market crash in U.S. history on a point basis. You would think that this would be enough to wake people up, but most Americans still don’t seem very alarmed. And of course what has happened to U.S. stocks so far is quite mild compared to what has been going on in the rest of the world.
Right now, stock market wealth is being wiped out all over the planet, and none of the largest global economies have been exempt from this. The following is a summary of what we have seen in recent days…
#1 The United States – The Dow Jones Industrial Average is down more than 2000 points since the peak of the market. Last month we saw stocks decline by more than 500 points on consecutive trading days for the first time ever, and there has not been this much turmoil in U.S. markets since the fall of 2008.
#2 China – The Shanghai Composite Index has plummeted nearly 40 percent since hitting a peak earlier this year. The Chinese economy is steadily slowing down, and we just learned that China’s manufacturing index has hit a 78 month low.
#3 Japan – The Nikkei has experienced extremely violent moves recently, and it is now down more than 3000 points from the peak that was hit earlier in 2015. The Japanese economy and the Japanese financial system are both basket cases at this point, and it isn’t going to take much to push Japan into a full-blown financial collapse.
#4 Germany – Almost one-fourth of the value of German stocks has already been wiped out, and this crash threatens to get much worse. The Volkswagen emissions scandal is making headlines all over the globe, and don’t forget to watch for massive trouble at Germany’s biggest bank.
#5 The United Kingdom – British stocks are down about 16 percent from the peak of the market, and the UK economy is definitely on shaky ground.
#6 France – French stocks have declined nearly 18 percent, and it has become exceedingly apparent that France is on the exact same path that Greece has already gone down.
#7 Brazil – Brazil is the epicenter of the South American financial crisis of 2015. Stocks in Brazil have plunged more than 12,000 points since the peak, and the nation has already officially entered a new recession.
#8 Italy – Watch Italy. Italian stocks are already down 15 percent, and look for the Italian economy to make very big headlines in the months ahead.
#9 India – Stocks in India have now dropped close to 4000 points, and analysts are deeply concerned about this major exporting nation as global trade continues to contract.
#10 Russia – Even though the price of oil has crashed, Russia is actually doing better than almost everyone else on this list. Russian stocks have fallen by about 10 percent so far, and if the price of oil stays this low the Russian financial system will continue to suffer.
What we are witnessing now is the continuation of a cycle of financial downturns that has happened every seven years. The following is a summary of how this cycle has played out over the past 50 years…
It started in 1966 with a 20 percent stock market crash.
Seven years later, the market lost another 45 percent (1973-74).
Seven years later was the beginning of the “hard recession” (1980).
Seven years later was the Black Monday crash of 1987.
Seven years later was the bond market crash of 1994.
Seven years later was 9/11 and the 2001 tech bubble collapse.
Seven years later was the 2008 global financial collapse.
2015: What’s next?
A lot of people were expecting something “big” to happen on September 14th and were disappointed when nothing happened.
But the truth is that it has never been about looking at any one particular day. Over the past sixty days we have seen absolutely extraordinary things happen all over the planet, and yet some people are not even paying attention because they did not meet their preconceived notions of how events should play out.
And this is just the beginning. We haven’t even gotten to the great derivatives crisis that is coming yet. All of these things are going to take time to fully unfold.
A lot of people that write about “economic collapse” talk about it like it will be some type of “event” that will happen on a day or a week and then we will recover.
Well, that is not what it is going to be like.
You need to be ready to endure a very, very long crisis. The suffering that is coming to this nation is beyond what most of us could even imagine.
Even now we are seeing early signs of it. For instance, the mayor of Los Angeles says that the growth of homelessness in his city has gotten so bad that it is now “an emergency”…
On Tuesday, Los Angeles officials announced the city’s homelessness problem has become an emergency, and proposed allotting $100 million to help shelter the city’s massive and growing indigent population.
LA Mayor Eric Garcetti also issued a directive on Monday evening for the city to free up $13 million to help house the estimated 26,000 people who are living on the city’s streets.
According to the Los Angeles Homeless Services Authority, the number of encampments and people living in vehicles has increased by 85% over the last two years alone.
And in the last 7 years, under a massive marketing program by the president, we have seen poverty absolutely explode all over the nation. The “bread lines” of the Great Depression have been replaced with SNAP cards, and there is a possibility that a government shutdown in October could “suspend or delay food stamp payments”…
A government shutdown Oct. 1 could immediately suspend or delay food stamp payments to some of the 46 million Americans who receive the food aid. Pointing a finger at one political group as the one cutting off the food supply could spark riots of unprecedented levels.
The Agriculture Department said Tuesday that it will stop providing benefits at the beginning of October if Congress does not pass legislation to keep government agencies open.
“If Congress does not act to avert a lapse in appropriations, then USDA will not have the funding necessary for SNAP benefits in October and will be forced to stop providing benefits within the first several days of October,” said Catherine Cochran, a spokeswoman for USDA. “Once that occurs, families won’t be able to use these benefits at grocery stores to buy the food their families need.”
In the U.S. alone, there are tens of millions of people that could not survive without the help of the federal government, and more people are falling out of the middle class every single day.
Our economy is already falling apart all around us, and now another great financial crisis has begun.
When will the “nothing is happening” crowd finally wake up?
Hopefully it will be before they are sitting out on the street begging for spare change to feed their family.
Deutsche Bank and Germany’s Collapse
Is something about to happen in Germany that will shake the entire world? According to disturbing new intel that I have received, a major financial event in Germany could be imminent. Now when I say imminent, I do not mean to suggest that it will happen tomorrow. But I do believe that we have entered a season of time when another “Lehman Brothers moment” may occur. Most observers tend to regard Germany as the strong hub that is holding the rest of Europe together economically, but the truth is that serious trouble is brewing under the surface. As I write this, the German DAX stock index is down close to 20 percent from the all-time high that was set back in April, and there are lots of signs of turmoil at Germany’s largest bank. There are very few banks in the world that are more prestigious or more influential than Deutsche Bank, and it has been making headlines for all of the wrong reasons recently.
Just like we saw with Lehman Brothers, banks that are “too big to fail” don’t suddenly collapse overnight. The truth is that there are always warning signs in advance if you look closely enough.
In early 2014, shares of Deutsche Bank were trading above 50 dollars a share. Since that time, they have fallen by more than 40 percent, and they are now trading below 29 dollars a share.
It is common knowledge that the corporate culture at Deutsche Bank is deeply corrupt, and the bank has been exceedingly reckless in recent years.
If you are exceedingly reckless and you win all the time, that is okay. Unfortunately for Deutsche Bank, they have increasingly been on the losing end of things.
Prior to the “sudden collapse” of Lehman Brothers on September 15th, 2008, there had been media reports of mass layoffs at the firm. To give you just a couple of examples, CNBC reported on this on March 10th, 2008 and the New York Times reported on this on August 28th, 2008.
When big banks start getting into serious trouble, this is what they do. They start getting rid of staff. That is why the massive job cuts that Deutsche Bank just announced are so troubling…
Deutsche Bank aims to cut roughly 23,000 jobs, or about one quarter of total staff, through layoffs mainly in technology activities and by spinning off its PostBank division, financial sources said on Monday.
That would bring the group’s workforce down to around 75,000 full-time positions under a reorganization being finalised by new Chief Executive John Cryan, who took control of Germany’s biggest bank in July with the promise to cut costs.
Cryan presented preliminary details of the plan to members of the supervisory board at the weekend. A spokesman for the bank declined comment.
Deutsche Bank has also been facing mounting legal troubles. The following is a brief excerpt from a recent Zero Hedge article…
The bank, which has paid out more than $9 billion over the past three years alone to settle legacy litigation, has become something of a poster child for corrupt corporate culture.
In April, Deutsche settled rate rigging charges with the DoJ for $2.5 billion (or about $25,474 per employee) and subsequently paid $55 million to the SEC (an agency that’s been run by former Deutsche Bank employees and their close associates for years) in connection with allegations it deliberately mismarked its crisis-era LSS book to the tune of at least $5 billion.
But it was out of the frying pan and into the fire so to speak, because early last month, the DoJ announced it would seek to extract a fresh round of MBS-related settlements from banks that knowingly packaged and sold shoddy CDOs in the lead up to the crisis. JP Morgan, Bank of America, and Citi settled MBS probes when the DoJ was operating under the incomparable (and we mean that in a derisive way) Eric Holder but now, emboldened by her pyrrhic victory over Wall Street’s FX manipulators, new Attorney General Loretta Lynch is set to go after Barclays PLC, Credit Suisse Group AG, Deutsche Bank AG, HSBC Holdings PLC, Royal Bank of Scotland Group PLC,UBS AG and Wells Fargo & Co.
Of course the legal troubles are just the tip of the iceberg of what has been going on over at Deutsche Bank over the past couple of years. The following is a pretty good timeline of some of the major events that have hit Deutsche Bank since the beginning of last year. It comes from a NotQuant article that was published back in June entitled “Is Deutsche Bank the next Lehman?“…
In April of 2014, Deutsche Bank was forced to raise an additional 1.5 Billion of Tier 1 capital to support its capital structure. Why?
1 month later in May of 2014, the scramble for liquidity continued as DB announced the selling of 8 billion euros worth of stock – at up to a 30% discount.Why again? It was a move which raised eyebrows across the financial media. The calm outward image of Deutsche Bank did not seem to reflect their rushed efforts to raise liquidity. Something was decidedly rotten behind the curtain.
Fast forwarding to March of this year: Deutsche Bank fails the banking industry’s “stress tests” and is given a stern warning to shore up it’s capital structure.
In April, Deutsche Bank confirms its agreement to a joint settlement with the US and UK regarding the manipulation of LIBOR. The bank is saddled with a massive $2.1 billion payment to the DOJ. (Still, a small fraction of their winnings from the crime).
In May, one of Deutsche Bank’s CEOs, Anshu Jain is given an enormous amount of new authority by the board of directors. We guess that this is a “crisis move”. In times of crisis the power of the executive is often increased.
June 5: Greece misses its payment to the IMF. The risk of default across all of its debt is now considered acute. This has massive implications for Deutsche Bank.
June 6/7: (A Saturday/Sunday, and immediately following Greece’s missed payment to the IMF) Deutsche Bank’s two CEO’s announce their surprise departure from the company. (Just one month after Jain is given his new expanded powers). Anshu Jain will step down first at the end of June. Jürgen Fitschen will step down next May.
June 9: S&P lowers the rating of Deutsche Bank to BBB+ Just three notches above “junk”. (Incidentally, BBB+ is even lower than Lehman’s downgrade – which preceded its collapse by just 3 months)
Are you starting to get the picture? These are not signs of a healthy bank.
What makes things even worse is how recklessly Deutsche Bank has been behaving. At one point, it was estimated that Deutsche Bank had a staggering 75 trillion dollars worth of exposure to derivatives. Keep in mind that German GDP for an entire year is only about 4 trillion dollars. So when Deutsche Bank finally collapses, there won’t be enough money in Europe (or anywhere else for that matter) to clean up the mess. This is a perfect example of why I am constantly hammering on the danger of these “weapons of financial mass destruction”.
If Deutsche Bank were to totally collapse, it would be a financial disaster far worse than Lehman Brothers. It would literally take down the entire European financial system and cause global financial panic on a scale that none of us have ever seen before.
On a personal note, I apologize for not posting anything last week. I traveled to two very important conferences and was living out of a suitcase for about eight days.
There has been a bit of a lull in the action over the past couple of weeks, but I expect that to end very shortly. I believe that the rest of 2015 is going to be incredibly chaotic, and we are going to see some things happen that most people could not even conceive of right now.
In the days that are directly ahead, I encourage people to keep a close eye on both Germany and Japan.
Big things are about to happen, and millions are about to be totally shaken out of their complacency.
The Birther Bombshell
New analysis from the Washington Post removes any doubt that the anti-Obama Birther movement was started in 2007 and 2008 by Hillary Clinton, her campaign, and her Democrat supporters.
As Breitbart News reported earlier this month, other left-wing media outlets, like Politico and the Guardian, had already traced the Birther movement back to Democrats and Ms. Clinton. Using his wayback machine on Wednesday, the Post‘s David Weigel took an in-depth look at the origins of the false rumors that President Obama is a practicing Muslim who was not born in America. Weigel’s reporting contains the final pieces of a very disturbing puzzle.
What Weigel found and re-reported was astounding, details many of us had forgotten or never heard of, including a 2007 bombshell memo from the Clinton campaign’s chief strategist.
What the left-wing Weigel left out of his reporting was even more astounding, including a documented confrontation between Clinton and Obama over the Birther issue, and video of Hillary herself stoking doubt about Obama’s Christian faith.
Because the Washington Post‘s primary job is to protect Democrats, Weigel’s headline and conclusion are an objective lie. Despite the fact that what he uncovered (and chose to not cover) points directly to Ms. Clinton and her campaign, Weigel concludes she had nothing to do with the Birther movement.
Naturally, Weigel’s own facts support the exact opposite conclusion.
His research, however, is all that matters.
Defcon 4: Mark Penn’s March 2007 Strategy Memo
Everything began in March of 2007 when Hillary’s chief strategist, Mark Penn, wrote a now-infamous campaign memo laying out his overall plan to win the election.
Weigel sums up the Birther elements of Penn’s memo as a nothingburger; indeed, according to Weigel, the memo actually proves that the Clinton campaign wanted nothing to do with Birtherism: “But Penn wrote that as a warning, not a strategy,” Weigel writes.
While most of Weigel’s lies in his defense of Clinton are of omission and deflection, the wrist-flicking of Penn’s memo is pure audacity.
Because this is important, I’m not asking anyone to believe my interpretation of the memo. You can read the memo for yourself here. Below are two mainstream media sources. [emphasis added] As you’ll see, the idea that the memo was a warning against “othering” Obama is preposterous:
[Penn] wrote, “I cannot imagine America electing a president during a time of war who is not at his center fundamentally American in his thinking and in his values.” Penn proposed targeting Obama’s “lack of American roots.”
The idea of going after Obama’s otherness dates back to the last presidential election—and to Democrats. … Hillary Clinton’s chief strategist, Mark Penn, recognized this potential vulnerability in Obama and sought to exploit it. … Penn wrote: … “[H]is roots to basic American values and culture are at best limited. I cannot imagine America electing a president during a time of war who is not at his center fundamentally American in his thinking and his values.”
Penn also suggested how the campaign might take advantage of this. “Every speech should contain the line that you were born in the middle of America to the middle class in the middle of the last century,” he advised Clinton. “And talk about the basic bargain as about [sic] the deeply American values you grew up with, learned as a child, and that drive you today.” He went on: “Let’s explicitly own ‘American’ in our programs, the speeches and the values. He doesn’t … Let’s add flag symbols to the backgrounds [of campaign events].”
Bloomberg adds: “Penn was not a birther.”
His memo didn’t raise the issue of Obama’s citizenship. Furthermore, he was acutely aware of the political danger that a Democrat would court by going after Obama in this way, even subliminally: “We are never going to say anything about his background,” he wrote.
That is what the memo said. The truth, though, is that the attacks on Obama’s background would come the following year, and those attacks would not only come from Hillary’s supporters but directly from her own campaign and her own mouth during a nationally televised 60 Minutes interview.
In March of 2007, the campaign could afford to attack Obama’s otherness “subliminally.”
By the following year, as the primary losses mounted, the gloves came completely off.
Defcon 3: Hillary Clinton and Her Supporters Birth ‘Birtherism’
Weigel’s superb reporting uncovered how the Clinton campaign and legions of diehard Clinton supporters took Penn’s othering campaign and the questions surrounding Obama’s faith and birthplace to the next level.
It was no longer subliminal.
By now Clinton’s 2008 presidential aspirations were in serious jeopardy. Pay special attention to what Weigel writes about John Heilemann. Weigel’s lie of omission here is crucial and I’ll address it below: [emphasis added]
According to John Heilemann and Mark Halperin in Game Change, the most ludicrous “othering” theory that Clinton allies engaged in was that a tape existed, somewhere, of Michelle Obama denouncing “whitey” — and that Clinton herself believed it when consigliere Sid Blumenthal talked about it.
But the Clinton campaign never pursued the idea that Obama was literally not American, and therefore ineligible for the presidency. A small group of hardcore Clinton supporters did. Specifically, anyone reading the fringe Web in the summer of 2008 could find the now-defunct blog called TexasDarlin, the now-defunct blog PUMAParty, and the now-conservative blog HillBuzz posting updates on the hunt for a birth certificate. It was a thin reed, and they knew it.
“It looks like Obama was born in Hawaii, based on a recently discovered birth announcement found in a Hawaiian newspaper,” one HillBuzz blogger wrote in July 2008. “It also looks like the reason Obama refuses to produce his actual birth certificate is that it very likely records dual Kenyan and U.S. citizenship at Obama’s birth.”
Weigel’s sleight of hand here is genius. Let’s unpack the lies of omission.
1. Weigel uses Bloomberg’s John Heilemann as a witness for the defense of Hillary but intentionally chooses not to tell his readers that a mere two days earlier, on Monday, Heilemann confirmed on MSNBC’s Morning Joe that the Birther movement began with the Clinton campaign.
Again, I’m going to quote a left-wing source:
Host Joe Scarborough called Clinton’s attack on Trump “rich,” saying, “For Hillary Clinton to come out and criticize anybody for spreading the rumors about Barack Obama, when it all started … with her and her campaign passing things around in the Democratic primary[.] … This started with Hillary Clinton, and it was spread by the Clinton team in 2008.” …
Heilemann, author of the insider account of the 2008 election Game Change, said it was the case that Clinton spread the rumors. “It was the case,” he said. “I’m affirming the Scarborough-Brzezinski assertion.”
2. Weigel also chose not to report:
It was not until April 2008, at the height of the intensely bitter Democratic presidential primary process, that the touch paper was properly lit.
An anonymous email circulated by supporters of Mrs. Clinton, Mr Obama’s main rival for the party’s nomination, thrust a new allegation into the national spotlight — that he had not been born in Hawaii.
3. Pretending to be naïve, Weigel uses these third party Democrat attacks on Obama’s identity as proof! that Hillary’s hands are clean, you know, because it’s her supporters raising the conspiracy, and not Hillary.
Apparently, it’s only Republicans who are held accountable for the actions of their supporters.
Apparently, only Republicans are capable of coordinating with outside groups to do their dirty work.
Despite more smoke than you’ll find in Jeff Spicoli’s van, Weigel uses that smoke as proof that there is no fire. This isn’t journalism, it’s desperate partisan spin.
4. Weigel says nothing about the Clinton campaign’s shattering silence during this smear campaign.
5. Weigel doesn’t want his readers to know that Barack Obama himself believes Hillary Clinton started the Birther rumors, even though this fact was reported by no less than Weigel’s own employer at The Washington Post:
Obama and Clinton were both at Reagan National Airport on their way to Iowa for a  debate, and the candidates met on the tarmac for what became a brief but heated conversation. Then-Obama personal aide Reggie Love witnessed the event and describes it in his new memoir:
[Obama] very respectfully told her the apology was kind, but largely meaningless, given the emails it was rumored her camp had been sending out labeling him as a Muslim. Before he could finish his sentence, she exploded on Obama. In a matter of seconds, she went from composed to furious. It had not been Obama’s intention to upset her, but he wasn’t going to play the fool either.
Why Weigel chose to leave all of this crucial information out is obvious.
Defcon 2: The Clinton Campaign’s Obama-Is-a-Scary-Muslim Emails
Weigel writes: “In December 2007, a Clinton campaign worker named Judy Rose sent an e-mail asking whether Obama was a secret Muslim who intended to destroy America from the inside. She was fired and denounced.”
Here’s what Weigel doesn’t tell his readers:
The email wasn’t meant for public consumption. It was an internal email sent to just a handful of Democrats.
Rose was only fired after the media discovered the email.
Rose wasn’t merely a “Clinton campaign worker,” she was the volunteer chair of the Clinton campaign in Jones County, Iowa.
A second Clinton staffer resigned just a few days later for the same offense.
The emails were sent just a little more than a month before the crucial January of 2008 Iowa Caucus, which Hillary lost.
Defcon 1: The Obama-In-a-Turban Photo
Weigel writes: “Three months later, when the Drudge Report claimed that a photo of Obama wearing a turban was sent from “stressed Clinton staffers,” the Clinton campaign denounced it but didn’t find a scalp.”
This is Weigel glossing over one of the most crucial elements in Hillary’s Birther campaign. Here is the photo in question…
…and Weigel not only buries and downplays this seismic campaign moment in the middle of a paragraph; laughably, his witness in defense of Hillary is the Hillary Clinton campaign. Because they couldn’t find who did it — “a scalp” — we’re asked to conclude that the campaign is innocent.
Here’s what Weigel doesn’t tell his readers:
1. The Obama campaign believes the photo came from the Clinton campaign.
Another left-wing source:
Obama’s campaign manager, David Plouffe, described it as “the most shameful, offensive fear-mongering we’ve seen from either party in this election”. Obama has had to spend much of the campaign stressing he is a Christian not a Muslim and did not study at a madrassa. …
Plouffe described circulation of the picture as part of “a disturbing pattern.” “It’s exactly the kind of divisive politics that turns away Americans of all parties,” he said.
2. Again, Weigel ignores crucial information published by one of his own employers, in this case his former-employer Slate.
After the Drudge splash, Plouffe released the statement above condemning the Clinton campaign at 9:29 am. Less than two hours later, Clinton campaign manager Maggie Williams shot back with a response that, as Slate notes, “never refuted Drudge’s piece.”
Then, at 10:54 a.m., Clinton’s campaign manager, Maggie Williams, pierced the quiet with her own release. “Enough,” she wrote. “If Barack Obama’s campaign wants to suggest that a photo of him wearing traditional Somali clothing is divisive, they should be ashamed. Hillary Clinton has worn the traditional clothing of countries she has visited and had those photos published widely.” She goes on to say Obama is trying to “distract from the serious issues.” Note that they never refuted Drudge’s piece. (More detail on that piece of the story is trickling in .)
Let’s take a moment to review: Obama’s campaign thinks Clinton is trying to be divisive by encouraging the Obama-is-a-Muslim myth. Clinton’s campaign thinks the Obama campaign is being divisive because it thinks Clinton’s campaign is being divisive.
The Clinton campaign would eventually deny sending the photo, but only after it became obvious that the release of the photo was blowing up in their face.
Mushroom Cloud: Hillary’s “As far as I know,” or Weigel’s ‘Big Lie’ of Omission
In his attempt to let Hillary off the hook, it is imperative that Weigel not remind his readers that in March of 2008, in the middle of her campaign’s Birthernado, and on no less than 60 Minutes, Hillary herself stoked the Birther rumors.
Obama is not a Muslim “as far as I know,” Clinton told Steve Kroft.
Hillary Clinton Is Birther Zero
My singling out of Weigel is a bit unfair. But it was his reporting that put the final details into place. And what he’s attempting to do is what most of the mainstream media is attempting to do: protect Hillary from her own racist past with half-truths and the omission of facts.
Once you do what the mainstream media refuses: put all the facts together as I did here, only those who don’t believe in science would let Hillary off the hook.
Here are the facts:
More than a full year before anyone would hear of Orly Taitz, the Birther strategy was first laid out in the Penn memo.
The “othering” foundation was built subliminally by the Clinton campaign itself.
Democrats and Clinton campaign surrogates did the dirtiest of the dirty work: openly spread the Birther lies.
Staffers in Hillary’s actual campaign used email to spread the lies among other Democrats (this was a Democrat primary after all — so that is the only well you needed to poison a month before a primary).
The campaign released the turban photo.
Hillary herself used 60 Minutes to further stoke these lies.
Of course Hillary Clinton is the grandmother of the Birther Movement. But now that she might be the only thing between a Republican and the White House, Dave Weigel’s reverting back to JournoList form, as is the rest of the media