Wednesday, November 28, 2018

The Criminalization of Politics

Global Intel Hub – (Zero Hedge Exclusive) 11/28/2018 – Atlanta, GA
The system is crooked.  So why bother, right?  Most Americans don’t vote don’t care.  Up to 30% don’t file don’t pay taxes.  That’s real freedom!  As we explain in our book Splitting Pennies – the world is not as it seems.
Personally, I watched the fixing of the 2000 election from ground zero in Palm Beach County Florida.  The registration of dead voters, the confusion over the chads, getting prisoners to vote Republican.  Gore should have won by a much larger margin (not that I wanted Gore to win, I’m speaking like an objective observer).  Being a trader, I wasn’t much interested in voting or politics which was unusual, as I went to a school where Dan Quale and George Bush Sr. were visitors at our mock political rallies, friends of mine were some of Bush’s biggest donors (that was in the year he lost, of course).  Barbara Bush came to one of my baseball games, I had the photo where I shook her hand on my bedroom wall for years (I was 8 years old I thought it was significant like meeting the Queen). 
But knowing these people intimately, hanging out with some Kennedy’s from time to time on the Island (or at least, seeing an altercation between them and police at the piano bar), seeing the weirdo stuff, the manipulations of other people, using money to silence people, illegal side businesses, their mafia friends when they needed to ‘get things done’ – I realized that there are 2 parallel worlds.  There is the world as I called it ‘As seen on TV’ and then there’s the real world.  ZH readers know this well, but as a young child one doesn’t manifest this vision automatically.  It takes experience seeing this evil, or in my case both – it was later confirmed by the extensive research into the financial system.  When I read “Confessions of an Economic Hitman” it wasn’t surprising, it was just a more detailed and well thought out account.  Just like it’s unfair to profile Muslims based on race, it’s unfair to profile the Elite as a bunch of killers and perverts.  Let’s take the recent example of an article recently published on Zero Hedge, where Florida’s richest man said that people like Soros should be in jail:
https://www.zerohedge.com/sites/default/files/inline-images/hungarians.jpg?itok=LQQkgwFy
Thomas Peterffy is a billionaire in his own right, he founded Interactive Brokers – one of the most cutting-edge electronic brokerages in the world.  IB is in a class of its own.  It’s the go-to broker for hedge funds, RIAs, and many industry insiders.  Soros on the other hand represents the real Jewish Mafia elements that flourish in the United States, who exploit what corruption and bribery elements are still available.  They are so much more successful than the Italian Mafia because they have masked their activities like legitimate businesses (plus, they know how to play as victims or use the ACLU).  The foundations such as “Open Democracy” are real Orwellian Radical Socialist Movements to the core.  Remember that the Bolshevik Revolution in Russia was financed by Wall St.  Capitalism in a way financed Communism, as it was really meant to solidify Monopoly Capitalists and their business interests in Russia (imagine having a pure Monopoly on a country the size of Russia – which is what they had.)
Going back to the main topic which is the Criminalization of Politics, using these 2 opposing Hungarians as examples; one guy built a great business.  Another has built a business by manipulating political systems at home and abroad (in secret), and all the insider trading that comes along with good political connections.  Soros is not a lucky fool he’s a shrewd dude make no mistake this guy is much more sophisticated than many Italian Mafia bosses who are mostly successful street thugs.  It would be impossible for them to penetrate Wall St.’s AML rules as they have been ‘nicked’ from time to time.
So how is politics criminalized?  Here’s how it works, and the best example is Bill Clinton.  Obviously, the Governor of Arkansas can only do so much – he can’t start selling drugs out of his office.  What he can do is organize one of his friends to make sure the cops don’t go by a certain airport, or even go so far as to provide protection to airplanes flying in and out of Columbia, South America with tons of cocaine.  Your benefactors will be so happy with your security service they certainly will pay it back, either through a proxy campaign contribution or maybe they will buy a brick you have for sale on ebay for a million bucks.  Everyone knows Clinton bricks are magic so who wouldn’t pay a million for it?  “Pay for Play” politics wasn’t invented by the Clintons or the Bushes in fact this type of bribery has been going on for thousands of generations.  Only the real strong civilizations, excluding Rome which was built on corruption and then deteriorated, have solved this problem.
Which by the way brings up an interesting irony about the Soviet Union – USSR.  Here was a communist dictatorship with absolutely NO CORRUPTION.  It was impossible.  Party leaders enjoyed benefits such as choice apartments or a color TV, but you couldn’t buy a party member, nor could you do something like Clinton did for example.  Party members that were loyal were rewarded in a top down strictly controlled hierarchy.  If they felt you were trying to start a business or enjoyed listening to Voice of America you could be imprisoned or shot by one of Stalin’s good squads.  If you were even suspicious of violating the rules, like you had a nice car – you were called ‘speculant[1]’ which is like ‘capitalist’ because it was against the communist ethos.  We are not communists nor are we promoting communism obviously it has proven to be a bad system, but it does serve as a good example of a system where there was absolutely no corruption, the CIA sure did try.
Obviously, this is extreme and ultimately didn’t work, and the quality of life in USSR was mostly poor.  There are however many examples today of successful non-corrupt societies, such as most of northern Europe and Switzerland.  Swiss Banking is built on anti-corrupt principles, if Switzerland was run like Wall St. it would not exist like a country, it would be usurped by neighbors Germany, France, and Italy, in that order.  The Swiss have a unique national identity which is part European part ‘Swiss’ and part of this unique identity is a unique set of banking values and fiduciary rules that make them Swiss.  Swatches, Toblerone, and Swiss Cheese comprise a fraction of Swiss GDP comparing with the banking sector[i].  The important note here is that the Swiss do not depend on ‘banks’ has to do with ‘river banks’ such as the ‘banks on the Thames’ which is the place where rivers deposit their valuables (Gold for example) because the water runs slowly, and they collect there due to weight.
Politics has been criminalized by the unethical use of money; what used to be a doctrine, or an argument, has been replaced by a lobbyist group.  Lobbying by itself is not the evil, but what has happened is that a mafia like force has taken over politics through lobbying groups, as they have become legitimized bribery.  Mob rule means rule of men not rule of law; meaning that going back to the examples of Clinton, although there are many strange unsolved crimes constantly happening around both Bill and Hillary, none are investigated more than a few phone calls at best.  A documentary film “The Clinton Chronicles” documented many of the strange occurrences of previous staff who have died of mysterious causes or have committed suicide by stabbing themselves in the back 10 times.
This book The Russia Hoax elaborately explains how the entire plot against Russia a smokescreen is only to cover up the dirty dealings of the Clintons.  And the sad thing, most of it is all legal.  It’s possible for example to buy protestors, as we have seen since the “Black Lives Matter” fiasco, riots in Charlotte, leading to the recent ‘screamers’ in the Capital building and other Kavanagh protestors.
And, released only recently; hacking group Anonymous released documents showing the real wizard behind the curtain trying to frame and entrap Russia in quicksand is no other than the United Kingdom[2].
If Russia creates an information campaign, we can too – so the thinking goes.  But why doesn’t Switzerland have an army of online provocateurs?  The answer is simple, there are really a few countries that are the instigators here in ‘The Great Game’ – and the British invented it.  During the Bush years there was a meme that Tony Blair was a lap dog of Bush doing whatever he said, but it was likely the other way around. 
This trend of the criminalization of politics has been going on for decades, so much so that it now has become endemic.  Trump’s #draintheswamp idea was great rhetoric but we haven’t seen any action towards that end yet, and perhaps never will.  It’s like the mob expression ‘in a crooked environment, crooks are the most honest people’ – at least you know where they stand!  The lies that have been uncovered about the Russia Hoaxare just astounding – if an individual who was not a politician had done any of these things, even 1% they would be in prison. 
Through the process of the criminalization of politics, the criminals themselves become immunized.  It becomes so toxic that if anyone honest comes into the playfield, like Trump for example, they must be destroyed.  Trump isn’t necessarily a good guy obviously he’s not, but he’s not a criminal, and he’s not a politician – those are the sole qualities that made him President.  Voters have been tricked by the Bush, Clinton, Obama mafia and whether you like or dislike Trump you have to agree that he has done what he said he would do, which makes him unique comparing with the last 50 years of Presidents.  Probably, since he’s been in office, he’s been compromised, which is why we haven’t seen any of the Criminals in jail – and here’s the point.  Is there anything that anyone can do about this system?  Not really.  A complete cleansing of the entire political class would be necessary. 
But if that were even possible, who would replace them?   Ron Paul is an anomaly.  It would be necessary to create a new type of civil servant, one who acted like he grew up in the 18th century.
A training program could be created, with works like Plato’s Republic and other texts.
Rules could be created like for judges, the political class would be forbidden to engage in any outside businesses. 
You see where this is going.  But it’s highly impractical in our society, it’s the stuff they teach in Universities which is a complete waste of efforts because then you enter the real world, which is much more sordid and darker than anyone can really explain.
The reality is – Capitalism encourages criminal activity (white collar crime).  For many reasons.  Physical crimes are extremely difficult to execute and are harshly punished (armed robbery for example).  But Ponzi schemes and other types of frauds are subtly encouraged, and are not harshly punished.
The Federal Trade Commission (FTC) under the Telemarketing and Consumer Fraud and Abuse Prevention Act (“Telemarketing Act”), has recently announced that it seeks law-enforcement action against a residential resort development in Belize, calling it “the largest-ever overseas real-estate investment scam” the agency has ever seen.
At a recent press conference in Washington, D.C., the agency said the development known by names that include Sanctuary Bay, Sanctuary Belize, Buy Belize, Buy International, and Buy Paradise, fleeced 1,000 American investors, out of more than $100 million.
According to court documents filed by the FTC in the US District Court of Maryland, 24 individuals and shell companies falsely claimed to be constructing a luxurious resort community that would feature a hospital, hotels, a golf course, a spa, a casino, high-end boutiques, cafes, restaurants, and an “American-style” supermarket.
Now, being a Boca native, this type of fraud is just part of real estate business, so they tell us in South Florida.  Real-Estate “Developers” will sell a bunch of units that don’t exist, they will ‘sell the dream’ if you will, or a Buffalo Ranch, or whatever sounds good now – and vanish.
Widows swindled out of their divorce settlements, retirees tricked into liquidating their IRA into the hands of a swindler. 
There should be more protections in place to protect victims of financial fraud, that’s number one.  Being involved in court cases as an expert witness in multiple FX related Ponzi Schemes, I asked a single question:  Where’s the money?  Answer was always the same, we don’t know, well, we will try to recover it.  So, I asked, what’s the point of sending this perp away for life if we can’t get the money back to the victims?  And the retort always the same, to serve as an example for other would be scammers.  But obviously this model doesn’t work.  And the Feds, meaning the Federal Reserve Bank, and the banks, allow this to happen. 
They encourage crime by allowing it – that’s number two.  They need to stop it.  Stop allowing financial crimes to happen.  99% of the financial markets are electronic that means any transaction is a keystroke away from being stopped.  Bank of America’s idiotic “AI” will block my debit card when we take a road trip but can’t stop a $50 Million Ponzi Scheme?  Remember, there was a guy, who alerted the SEC about Madoff.  The problem is systemic, it’s not that there’s no solution.  Politicians especially – they want it to be allowed because they are in on it too – and here’s the problem.
There is a financial incentive that allows such crimes to continue Wall St. and in politics.  Let’s be clear about this – stopping criminals doesn’t make you a socialist, nor does it make you a liberal.  When Ponzis blow up everyone suffers not only the victims.  Our company has had clients in Aramanth, MF Global, PFG, just about all the big financial frauds of the decade.  In many cases, lost funds were a significant percentage of the client portfolio and thus prevented further investment in more fruitful projects.
An honest man couldn’t make it into the White House, or into Congress; and again, we’ll remind readers that Ron Paul, an OB/GYN – and Dennis Kucinich are anomalies.  We are living in a world where the more stupid the better – the more dangerous, ridiculous, fattening – the better.   Basically, the IQ of humans is declining – rapidly.  As you are reading this, you can hear people getting dumber.
A defining trend in human intelligence tests that saw people steadily obtaining higher IQ scores through the 20th century has abruptly ended, a new study shows. The Flynn effect – named after the work of Kiwi intelligence researcher James Flynn – observed rapid rises in intelligence quotient at a rate of about 3 IQ points per decade in the 20th century, but new research suggests these heady boom days are long gone.  An analysis of some 730,000 IQ test results by researchers from the Ragnar Frisch Centre for Economic Research in Norway reveals the Flynn effect hit its peak for people born during the mid-1970s, and has significantly declined ever since. "This is the most convincing evidence yet of a reversal of the Flynn effect," psychologist Stuart Ritchie from the University of Edinburgh, who was not involved in the study, told The Times.  "If you assume their model is correct, the results are impressive, and pretty worrying."
And we should not need to mention, that criminals on average have a lower IQ than non-criminals.  In a society that respects the Mafia, popularized by the CIA via Martin Scorsese films, it should be no surprise that leading figures in business act accordingly.  It is also no surprise that the president is a reality TV star (not really a professional actor, but worse).  Sadly, being the clown by design that Trump is, he has achieved more than any of the previous Presidents combined.
The dumbing down of America is a well thought out plan concocted in the 70’s which is corroborated by the above hard data.  It is the same year that big business interests created New World Order control mechanisms like the “Trilateral Commission[3]” – it’s not a conspiracy, it’s right out there in the open.  You see, during the 1960s there was a movement of real change in USA and that scared the hell out of the establishment.  Flower Power was more than drugs and hippies, it was a potential of revolution, or the disruption of the status quo.  So they spent billions of dollars and learned how to channel that youthful energy in the wrong way – into crap like Facebook Selfies and violent films.
They (the people who own us) like criminals because they can easily be controlled.  When you’re facing a life sentence, you’ll do anything they ask to get out of it.  That’s number three – in a normal society laws need to be enforced without prejudice. 
Such methods like Blackmail to control were not invented by J. Edgar Hoover but they sure were effective.  When you have ‘the goods’ over your employees, whether they be C-Suite execs or your common retail clerks out on Parole, they will do what you want.  The entire criminal justice system is a sham, they even make money on you when you get locked up as the majority of the penitentiary system is privatized.
So this method of control creates a ‘favors’ system similar to how the mob operates.  They will do you a ‘favor’ and not tell your employer about  your secret gambling problem.  And in exchange, you are to pass a pork belly project guaranteeing a bridge to no where in a lucrative construction contract.  This isn’t really ‘politics’ as it was meant to be, it’s become – the Criminalization of Politics.  (Applause)
REFERENCE ARTICLES
http://thought2go.com/60-minutes-interview-george-soros-tried-to-ban-atheist-holocaust-criminal-conspiracy/                                                                                                                                                                                                                                                                                                                                           
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    Monday, November 19, 2018

    ALERT: Naked Selling Options Strategy blows up deep into the red, INTL FC Stone asks clients for more money

    Elite E Services (11/19/2018) Delaware, USA As reported originally by Zero Hedge, a fund that did business through the website optionssellers.com has actually justified the use of the clause that you can lose more money than you invest.  This is only possible in options trading, and specifically, naked short selling of options.  Due to a 'rogue wave' the options went deep into the red and caused the broker, INTL FC Stone, to request clients deposit the loss beyond the zero on their account.  While the manager is solely to blame for improper risk management, this will have the opposite effect on the alternatives investing community in general.  Now every manager with this clause which is all regulated managers, are going to have clients asking 'can this happen to us?' to which there is no good answer.  This is the spike:

    Options strategies are not all disasters waiting to happen, there are hundreds of examples too many to name, such as Alpha Z Advisors.

    This should serve as a wake up call to all managers and investors to re-asses the risk management plan - as in today's market anything is possible.

    To see an example of an options strategy that has a 5+ year record, see Alpha Z Advisors - Strategies based on Anomalies.



    Read the Entire Zero Hedge article:

    Shorting vol (naked) with "Other People's Money..."? What could possibly go wrong?
    Q: Have I lost all the money in account, then?
    A: Yes
    "Stocks are great, until they aren't," proclaims the now 'dark' website of Tampa-based OptionsSellers.com, explaining to 'high net worth investors' that "options are better but most make the mistake of buying them."
    And so, the thoughtful-looking, wealthy grey-haired gentlemen of today should given their Fed-earned money to the managed accounts of OptionsSellers.com, which touted itself as premier and highly experienced commodities options trading firm. The firm’s president and head trader, James Cordier, explained in a recent interview: “Our goal is to take an aggressive vehicle and manage it conservatively.”
    Unfortunately for the clients' managed accounts, Cordier's actions were anything but 'conservative'.
    On November 15, 2018, OptionSellers.com notified its investors in an email entitled “Catastrophic Loss Event” that it not only lost all their money, but that they would also owe money to Intl FC Stone for margin calls.
    I am writing to give you an update on the situation here with your account.
    We have spent the week unwinding our short natural gas call position as expediently as possible.
    Today which was to be the final day of liquidation, the market flared as prices appear to have been caught in a "short squeeze."
    The speed at which it took place is truly beyond anything I have seen in my career. It overran our risk control systems and left us at the mercy of the market.
    In short, it was a rogue wave and it overwhelmed us.
    Unfortunately, this has resulted in a catastrophic loss.
    Our clearing firm, FC Stone now requires us to liquidate all positions. We hoped to have this done today. If not, it will be completed tomorrow.
    Your account could potentially be facing a debit balance as of tomorrow. OptionSellers.com will be processing fee credits over the course of the coming days to help alleviate debit balances. What these will be will be determined after all positions are cleared.
    This has in effect, crippled the firm. At this point, our brokers at FC Stone have been assisting us in liquidation.
    Our offices will remain open and we will all still be here to answer your questions and process account closings. We will do everything in our power to ease what discomfort we can.
    I am truly sorry this has happened.
    I will be updating you again via memo in 24 hours.
    Regards,
    OptionSellers.com
    In case you were wondering just that means, Dear Client, here is OptionSeller.com's Q&A on "Debit Balances"...
    What do I do about this Debit Balance?
    You likely received a debit call notice from FC Stone this morning via email. You may receive it in the mail as well. This is a call to add funds to bring the balance back up to zero. Instructions for paying the balance on the notice. Any questions on debit balances can be directed directly to FX Stone at the number on the notice. Stone requests the funds asap but if it takes a few days, that is OK.
    What happens if I don't pay the balance?
    We recommend balances be paid. If it is not paid, it becomes like any other unpaid bill.
    For some context, not only did the NatGas calls rocket in price due to 'delta' changes in the underlying, 'vega' exploded them exponentially as NatGas vol spiked to a record high over 90... A double-whammy for the short call positions which "crippled the firm."
    For a sense of what the pain felt like - here is Goldman's NatGas Vol Carry strategy index (a more-hedged version of the naked calls OptionSellers.com was writing)...
    Ring any XIV (short vix ETF) bells?
    We suspect these 'picking up pennies in front of a steamroller'-conmen were not alone in their strategic losses.
    As we noted previously, what is notable is that the move in nat gas was so powerful, it nearly caused a VIXtermination-type event in the VelocityShares Daily 3X Inverse Natural Gas ETN, which seeks to produce three times the opposite daily move of US natural gas prices and is known by its stock market ticker DGAZ.
    Derivatives strategist Pravit Chintawongvanich, who rose to popularity with his hourly hot takes during the February VIXplosion that anihilated several inverse VIX ETNs, pointed out that DGAZ and its “long” leveraged cousin UGAZ could be liquidated if natural gas prices move sharply: "Because these products offer 3x daily leverage, a one day move greater than 33 per cent in either direction would blow up one of them," he wrote.
    In other words, the market was this close to another inverse ETN extinction event, only this time not in volatility but in natural gas. Meanwhile, the DGAZ's days may be limited: starting off the month with $500MM in assets, in just two weeks it has been cut in half, and as of this morning had just $247MM in assets.
    As JohnSChapman notes, unfortunately, it did not trade options conservatively. It traded “naked” rather than “covered” options, leaving investors subject to unlimited exposure. This unlimited exposure is what caused to lose all their money and more in the last few days. Thus, OptionSellers.com and its principals negligently engaged in a risky trading strategy that was unsuitable for its clients and breached its fiduciary duties to them by putting its interests ahead of its clients.
    The Optionsellers.com team includes Rosemary Veasey, Matthew Donovan, James Cordier, Michael Gross, and Alicia Zedella. But here is thefirm's president and head trader, James Cordier, in an Oscar-winning performance, apologizing to his 'family' of clients in one of the most surreal videos ever...
    "I promise you every day when I woke up, I was checking for rogue waves..."
    If you can get through the theatrics of thanking several clients for BBQ sauce and not visiting them in the south of France, Cordier explains how it was all an unforeseeable event...

    "I truly invested your funds like you were a family...I'm sorry this rogue wave capsized your boat... I wish you great luck and good health."
    Are all 290 clients convinced?
    'Rogue wave' our collective ass.. Being 'naked' short calls is grossly negligent with even the most risky of speculative capital - and sheer recklessness in a so-called 'conservative' strategy. Yep - who could have seen that coming?
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