WHITE COLLAR CRIME
AND
THE ONGOING ECONOMIC DEPRESSION
Frank Smith (aka "Atocha")
The question is as obvious as a thousand foot tall pregnant gorilla at a
championship chess match. Yet, no one has asked THE question. The silence is
deafening. The silence is absolute because answering the pregnant gorilla
question truthfully, gives birth to the realities of institutionalized white
collar crime in our stock markets, corporate America, Wall Street and in the
highest levels of government and banking. Establishment criminology defines
government white collar crime as "illegal and socially injurious cooperation
between governments and corporate institutions..." (White Collar Crime-
http://faculty.newc.edu/toconnor/392/spy/whitecollarcrime.htm) Widespread,
systemic and long standing government white collar 'pump and dump' stock
market crime is precisely what unravels from a truthful answer to the
pregnant gorilla question.
Sheeple, sheeple; gather around and listen, for this one is for you!
THE PREGNANT GORILLA QUESTION
QUESTION: Why, why, why, did corporate America and Wall Street resort to
creative, deceptive and fraudulent business accounting and financial
reporting practices in the mid and late l990s in order to create the
illusion of phony corporate profits?
ANSWER: With the hindsight of Enron, Global Crossing, WorldCom, etc., it is
becoming increasingly conclusive that Corporate America and Wall Street
resorted to deceptive and WHITE COLLAR CRIMINAL financial reporting
practices creating phony corporate profits because much of corporate America
could no longer earn its traditional real business profits due to an ongoing
business and economic depression!
THE PREGNANT GORILLA
The 'Pregnant Gorilla' is a business and economic depression that descended
on the United States during the mid and late 1990s. Major accounting
problems involving profits at WorldCom dated at least as far back as 1996.
And four years ago in June, 1998, Frank A. J. Veneroso wrote about the
economic and corporate problems already created by the 'strong dollar
policy". (www.gold- eagle.com/gold_digest_98/veneroso062498.html) Burdened
with both debt and a political 'strong dollar policy', increasingly United
States corporations could no longer make their historical real profits and
corporate America slid into an economic depression. The essence of an
economic or business depression is when many longstanding business operating
profits become horrendous operating losses.
As we now learn, week by week, that is what certainly happened to an
increasingly significant portion of corporate America during the mid and
late 1990s. THE 'SMOKING GUN' PROOF OF A REAL ECONOMIC DEPRESSION IS IN THE
SECRET TRUTHFUL FINANCIAL STATEMENTS OF CORPPORATE AMERICA.
THE PREGNANT GORILLA GIVES BIRTH TO OFFSPRING
Business and economic depressions give birth to many very unpleasant
characteristics that are the unavoidable consequences and 'offspring' of
substantial business operating losses and bankruptcies. As many business
profits publicly turn to losses, unemployment rises. Business financial
statements publicly disclose the corporate financial losses. Bankruptcies,
repossessions and foreclosures rise. Wall Street 'experts' inform the public
of the financial problems of each corporation. With the reduction of
constant dollar tax revenues and the increase in expenses, governments are
thrown into budget deficits. Many sectors of the stock markets crash. The
news media routinely features new bankruptcies and stunning new corporate
operating losses. Consumer confidence is shaken and consumer spending
contracts. Loan defaults increase. Many banks become financially stressed.
Homelessness increases. Senate and Congressional oversight committees
disclose wrongdoing that was driven by corporate financial desperation or
corporate greed.
THE POLITICAL DILEMMA
In the 1990s, it was either truthfully acknowledge an economic depression
with honest accounting; or, knowingly, deliberately, willfully and
criminally create phony accounting corporate 'profits' en masse in order to
conceal from the American people the reality of a business and economic
depression. It was a political dilemma criminally resolved by a political
decision of the Clinton Presidency. The same political dilemma faced a newly
inaugerated President Bush.
His presidency chose to continue the Clinton deception of a 'strong
economy'. All the while, the private Federal Reserve Bank maintained a
policy that accommodated the increase of financially unsound debt necessary
in order to maintain the prosperity illusion by criminally manipulating and
price fixing financial markets. The administration and Congress criminally
manipulated federal budget accounting with "off budget" expenses. The public
was deceived with criminally falsified economic data. The consequences of
the Clinton/Bush/Greenspan political decisions in favor of willfully and
systematically criminally deceiving the American people in economic data
reporting and in criminal federal budget reporting, is now corporation by
corporation belatedly becoming public knowledge.
TRICKLE DOWN CRIMINALITY
This generation has demonstrated that the 'trickle down' theory in economics
has a parallel 'trickle down' theory in criminal behavior. The
institutionalized accounting criminalization of federal government "off
budget" expenses has trickled down from the White House and Congress to
criminal "off budget" expenses for corporate America. The self-serving
institutionalized falsification of federal government economic reports has
trickled down from the White House to self-serving false reporting by
corporate America; and, 'pump and dump' on Wall Street. The criminal price
fixing of financial markets by the Secretary of the Treasury and the Federal
Reserve Bank has trickled down to criminal price fixing of stocks and stock
markets by Wall Street. The looting of the federal treasury by pork barrel
politics has trickled down to the looting of corporations by corporate
management.
The 'trickle down' theory in economics maintains that "a rising (economic)
tide lifts all boats". The 'trickle down' theory in criminology has
demonstrated that "a criminally corrupt Presidency, Congress, and Federal
Reserve Bank results in the criminal corruption of a nation's corporations
and institutions".
POSITIVE SUGGESTIONS FOR REFORM
Congresspersons at the WorldCom hearings asked for suggestions of what could
be done in order to prevent future Enrons and WorldComs. Honorable
Congresspersons, here are my suggestions in response to your questions.
First, decriminalize the federal budget by eliminating "off budget"
expenses. Second, eliminate the political fabrication of false federal
economic data. Third, stop the United States government and the Federal
Reserve Bank from secretly or openly price fixing financial markets,
especially the gold, silver, currency, bond and stock markets. The criminal
behaviors of the Enrons, WorldComs, and Wall Street are simply 'trickle
downs' of the same behaviors by Presidents, Congress, and the Federal
Reserve Bank.
Fourth, in order to eliminate the institutionalized theft of purchasing
power by the Federal Reserve Bank fiat currency, implement the
Constitutional provision of gold and silver as circulating money. Fifth, in
order to eliminate the institutionalized theft of purchasing power by
fractional reserve banking, eliminate the Federal Reserve bank and
fractional reserve banking. Sixth, end the Congressional looting of the
United States Treasury by pork barrel politics. With these suggestions, I
humbly suggest that Congress removes institutionalized and structural theft
from the highest levels of government and banking. I would even seriously
consider a seventh suggestion: Federal legislation that would make every
elected federal office holder unable to run for re-election.
In all honesty, each and every one of we the people of the United States
share the responsibility for the Enronization of America. We have been
unwilling to pay the price in order to maintain liberty and human dignity at
home. We the people have also been comatose and allowed ourselves to become
sheeple. We must free our sheeple in a lawful and Constitutional manner, or
die in our effort. I personally have made that commitment. Well my
Congresspersons. You very nicely talk the talk on TV.
But, are you willing to walk the walk. Are you willing to openly defy the
primary rule of United States politics: "To get along, go along!"? Are you
willing to die as a lawful whistleblower and lawful reformer of corruption
at the top? Will you join me in that commitment of "life for liberty"; and,
set about to decriminalize our government, our corporations, our currency,
and our banking institutions? I petition all Americans to make that
conscious commitment of "life for liberty" that is necessary in order to
become whistleblowers and again live as a free people. Have no illusions.
Many will pay terrible prices for being whistleblowers to deaf ears.
MAKING THE GORILLA DISAPPEAR
In order to sustain the politically advantageous illusion of a strong
economy, our state and federal governments gave corporate America and Wall
Street years of freedom from prosecution for many criminal behaviors.
Federal and state regulators, Democrats and Republicans, the private Federal
Reserve Bank, establishment economists, corporate America, Wall Street, and
the establishment news media, engaged in the very essence of white collar
crime.
They jointly engaged in "illegal and socially injurious cooperation between
governments and corporate instuitions" in order to make the pregnant gorilla
of economic depression disappear from corporate financial statements and
from the thoughts of most Americans. The 'social injury' of white collar
crime fell on criminally deceived investors in United States stock markets
that saw their purchasing power collapse with their stock prices. The
'social injury' was a deliberately engineered and grandiose 'pump and dump'
stock market bubble.
Illusionist David Copperfield made the Statue of Liberty 'disappear' from
public view for minutes. Illusionists Clinton, Bush, and Greenspan made the
gorilla of an economic depression 'disappear' from public view for years. We
live in a time of Hobbesian illusionists and the financial rape of the
American people.
MAKING THE GORILLA OFFSPRING DISAPPEAR
The gorilla 'offspring' of sharply rising unemployment was erased by
statistically focusing on the newly unemployed and by removing many existing
unemployed from the official unemployment statistics. The gorilla
'offspring' of corporate statements of financial distress was erased by
criminally changing real corporate financial losses into accounting
'profits'. The gorilla 'offspring' of declining corporate sales were erased
by the criminal accounting of "wash sales" between corporations artificially
increasing the sales of both corporations.
The gorilla 'offspring' of rising personal bankruptcies was addressed by new
bankruptcy laws that made bankruptcy a less helpful and less likely
alternative for Americans in severe financial distress. The gorilla
'offspring' of Wall Street 'experts' disclosing corporate financial problems
to the public was erased by Wall Street 'experts' at firms like Merril Lynch
praising, promoting and selling to the American people the stocks of
financially distressed American corporations. Wall Street disclosure of
corporate wrongdoing, instead became Wall Street 'pump and dump'.
For their own 'pump and dump' financial enrichment, Wall Street firms
promoted financially crippled stocks as sound investments during an economic
depression. The gorilla 'offspring' of government budget deficits was erased
from public awareness by simply officially declaring that many government
expenses are "off budget" expenses. The gorilla 'offspring' of a stock
market crash was delayed by Wall Street hyping and 'pumping' stocks into a
stock market bubble. The Wall Street delayed gorilla 'offspring' of a stock
market crash was greatly controlled in severity of collapse by the Federal
Reserve Bank using The Monetary Control Act of 1980 in order to secretly
purchase stocks as deemed necessary. The Gorilla 'offspring' of defaulted
bank loans was erased from public awareness by rolling over bad loans into
new and larger unrepayable loans.
By the same tactic of rolloverism of unsound bank loans, the Gorilla
'offspring' of financially distressed banks was erased from public view. The
Gorilla 'offspring' of news media disclosures of the financial distress of
corporations was erased by self-imposed media political censorship. The
financial media generally 'pumped' the stock market bubble instead of
disclosing the corporate and economic problems. The gorilla 'offspring' of
shaken consumer confidence was erased by one and all constantly telling us
that 'the consumer is still buying'. Gorilla 'offspring' such as rising
foreclosures and rising homelessness were erased by either ignoring them;
or, by making them seem unimportant.
The goriilla 'offspring' of criminal business practices being prosecuted was
erased by coooperative regulators and crime busters who decided to "see no
evil, hear no evil, say no evil". The Gorilla 'offspring' of Senate and
Congressional oversight committes blowing the whistle was erased by the
corporate campaign contribution bribery and purchase of the majority of our
senators and congresspersons. Our economists, with palms upturned, joined
our senators and congresspersons in the bribery lines that dole out
excellent job benefits.
WITH THE ALTERNATIVE OF POLITICAL HONESTY
What would have happened if President Clinton had chosen the truthful
alternative? What would have happened if the federal and state politicians
and government regulators, corporate America, the news media, economists,
and Wall Street publicly reported truthful profit and loss statements with
non-criminal accounting and non-deceptive financial and economic reporting
practices? The news headlines of the 1990s would have been entirely
different! The reported news would have been about corporate business losses
and corporate bankrupticies in the deepening economic depression.
In the late 1990s, truthful unemployment statistics would have quickly
reached economic depression levels as honest financial reporting and
accounting lead to the public bankruptcy of many of the blue chips of
corporate America. This would have set in motion a deflationary debt
liquidation spiral that fueled itself. There probably would have been the
confiscatory deflation noted in Argentina by Hans F. Sennholz in order to
save the big banks from their losses on corporate loans. The stock markets
would have crashed and Wall Street would have become an impoverished Skid Row.
With the Clinton alternative of political honesty; the topic of conversation
of the 1990s would have been the location of the newest soup kitchens and
bread lines for the unemployed and homeless; instead of, IPOs.
THE CRIMINAL ILLUSION OF ECONOMIC PROSPERITY MELTS
The criminally crafted political illusion of economic prosperity is now
shattering primarily because many corporations have consumed their liquid
resources and their cash flow can no longer pay their bills. A corporation's
inabilitay to pay its debts in a timely manner is one gorilla 'offspring'
that can not be erased by false accounting, comatose elected oversight
committees and administrative regulators, and false news media reports.
Democrats, Republicans, Presidents, Congresspersons, the Federal Reserve
Bank, regulators, accountants, Wall Street, economists, and the news media
implemented and supported the criminal illusion of economic prosperity
during an economic depression.
It was an increasing corporate inability to pay debts that finally shed
light and public knowledge on the truth. And now, those who implemented and
supported the criminal illusion boldly march to the forefront in condemning
the illusion with mock anger and mock righteous indignation. Their arrogant
hypocrisy documents their contempt for we the people of the United States.
Our Hobbesian leaders treat us as mindless sheeple to be fleeced and
financially butchered in our stock markets for their gladitorial amusement
and financial gain. Greenspan, Clinton and Bush are practicing disciples of
Thomas Hobbes; and, the primary financial butchers of the American people.
THE GORILLA OF AN ECONOMIC DEPRESSION IS REAL
A very real economic depression descended on the United States in the mid
and late l990s and continues to deepen. The evidence of this economic
depression is abundant. First and foremost, we now know that many real
corporate profits turned into severe corporate operating financial losses
that were not reported to the public. Instead of truthful public disclosure,
widespread corporate operating financial losses were often falsely reported
to the public as substantial corporate profits. The prima facie evidence of
a business and economic depression starting in the United States in the
1990s is the all too often extreme and dramatic shift from corporate profits
to severe corporate financial losses during the 1990s. 'The proof of the
pudding is on the vest'.
The 'smoking gun' proof of a real business and economic depression starting
in the United States in the 1990s is in the secret truthful financial
statements of many blue chip businesses of corporate America.
Supportive evidence is abundant. Essentially all major financial segments of
the American economy have become burdened with unrepayable debt. This
creates a lack of creditworthiness necessary for further sufficient sound
credit expansion in order to fund the increasing compound interest costs of
existing governmental, business and personal debt. Debt service by more
unsound debt had choked off sustainable economic growth. The post WWII debt
expansion had finally exhausted all creditworthy avenues of continued debt
expansion. There were simply no more creditworthy debtors left. Repayable
debt and purchasing power were forced into deceleration and contraction
because of a lack of creditworthy debtors willing to borrow.
As a small business entrepreneurial wholesaler for decades, I have
personally witnessed the widespread decline in the financial health of many
mom and pop businesses. Bankruptcy filings and home foreclosures are
dramatically increasing in many areas. Our trade deficit is out of control.
This economic depression has been further deepened in severity by the
Greenspan/Clinton/Bush 'strong dollar'/'gold cap' criminal manipulation and
price fixing of many financial markets, especially the gold, silver and
currency markets. The criminally and artificially created 'sound dollar'
forced much domestic production and employment overseas because the
overvalued dollar greatly increased production costs at home to the point
where domestic production could not compete in world markets. This
supportative evidence, and much more supportative evidence, is not needed.
It is very simple. In the 1990s, corporate America increasingly resorted to
phony accounting profits because in the ongoing United States economic
depression corporate America was no longer able to earn the REAL profits of
the past economic expansion. THE SMOKING GUN PROOF OF AN ECONOMIC DEPRESSION
IS IN THE SECRET TRUTHFUL FINANCIAL STATEMENTS OF CORPORATE AMERICA.
THE ORWELLIAN PARADOX
If the politicians will ever allow honest economic historians, they will
write about the paradox that a criminally manipulated 'pump and dump' stock
market bubble occurred in the 1990s during an economic depression. The
Orwellian knowledge and application of two classic experiments in Social
Psychology on conformity (Asch, l951) and obedience (Milgram, l963) turned
most of the American people into sheeple. As a result of the application of
behavioral and mind control techniques established in experimental academic
Social Psychology, stock market investors believed criminally falsified
corporate profit and loss statements as they flocked to the financial
slaughterhouse on Wall Street.
The Greenspan words, "irrational exuberance", are a blatant Federal Reserve
attempt to conceal Federal Reserve criminality in the stock market 'pump and
dump' bubble by scapegoating the American people for the world's largest
stock market white collar criminal illusion for the criminal transfer of
wealth from the people to the powerful elite. It was the ultimate stock
market 'pump and dump' that was perpetrated on such a grandiose scale that
even P. T. Barnum would blush. And Greenspan blames the criminal stock
market 'pump and dump' on the irrational exuberance of the victims?
In ancient Rome, the Emperor Nero fiddled while Rome burned. The Federal
Reserve Bank Emperor Greenspan promoted pouring gasoline (debts that created
more dollar units) on the 'pump and dump' fire while the economy of the
United States burned. The Federal Reserve pumped the debt 'pump' in the
'pump and dump'.
The de facto financially bleeding corporate balance sheets, and the de facto
corporate bankruptcies of the 1990s, were hidden from the public and
bankruptcy courts by institutionalized deceptive, fraudulent, and criminal
financial reporting. As a necessary ingredient of governmental white collar
crime, government regulators en masse cooperated by "see no evil, hear no
evil, say no evil". Career government regulators 'get along by going along';
or, they risk their careers.
Wall Street played an important role in both the deception and the 'pump'
with its Pro Forma earnings, EBITDA, its "estimates game", and in its
promotion to stock investors of de facto financially bleeding and bankrupt
corporate stocks at Rolls Royce prices. Even now, in 2002, the phony
accounting trickles out to public knowledge one corporation at a time as
individual corporations with cash flow problems become unable to pay their
bills.
(Politicians call that "a soft landing" for the economy.)
THE LONG TERM COST OF A SHORT TERM ILLUSION.
The most grandiose criminal stock market 'pump and dump' in the history in
stock markets was built upon government protected deceptive and false
corporate financial reports. The grandiose 'pump and dump' was implemented
by Social Psychology knowledge on conformity and obedience. And the stock
market 'pump and dump' was funded by an orgy of Federal Reserve pumped
technological debtism that shall further impoverish countless future
generations (www.gold- eagle.com/editorials-02/smithf020202pv.html). In
order to maintain the illusion of economic prosperity, United states
financial markets, especially derivatives, became massive engines of
unprecedented debt creation.
Purchasing power created by debt creation, instead of by profits from
producing goods and services, is purchasing power destroyed by future debt
liquidation. Atocha's Supreme Law of Purchasing Power: "Purchasing power
gained by debt creation is always equaled (cumulatively) by purchasing power
lost by debt liquidation". (www.gold-
eagle.com/editorials-02/smithf011402.html) The future shall be primarily
noted for the 'bewildering' world wide loss of purchasing power as the
historically unprecedented scope of debts engineered by the Federal Reserve
Bank is liquidated.
The long term cost of the Greenspan, Clinton, Bush short term political
illusion of economic prosperity in the midst of an economic depression shall
be many additional decades of abundant abject poverty and hunger in the
United States. Liquidating the massive debts that funded the political 'pump
and dump' illusion of prosperity will liquidate purchasing power on a scope
currently unimaginable by the American people.
POLITICAL NECESSITY
Where was the SEC, CFTC, FBI White Collar Crime Unit, and all the other
crime busters during the tidal wave of deceptive, fraudulent and criminal
financial reporting by corporate America? Where were the prosecutors,
judiciary, legislators, and crime busters during the widespread criminal
price fixing of our stock markets, the price fixing of the gold and silver
markets, and the price fixing of other financial markets; by Alan Greenspan
and the Federal Reserve and the United States Treasury?
Just ask Reginald H. Howe (www.gold-
eagle.com/editorials-00/howe121000.htm.) and and Bill Murphy of GATA
(www.gold- eagle.com/gold_digest_02/murphy013002.html)! Howe and Murphy
have, at great personal sacrifice, created authoritative documented
historical records. All Americans, including myself, are deeply indebted to
Howe and Murphy for their exhaustive documentation for the historical
record. By political necessity, the legislators, crime busters and the
judicial system were the deliberate cooperative paragons of "see no evil,
hear no evil, and say no evil."
Federal political re-elections are frequently won first and foremost by a
strong domestic economy. To serve the motives of political re-elections, the
Great Depression of the 1990s had to be concealed from the American people.
Deliberate, severe, rampant and blatantly criminal phony corporate and
government accounting and financial statements became a perceived political
necessity for the future re-elections of Presidents Clinton and Bush Jr.,
senators, and congresspersons. Presidents of both major political parties
repeatedly avowed the strength of the economy and affirmed (the Federal
Reserve criminal price-fixing of) the 'stong dollar'/'gold cap' policy. That
phony accounting in order to sustain the illusion of a prosperous and sound
economy encompassed both corporate America and federal and state governments.
The Federal Reserve white collar criminal price fixing of the 'strong
dollar' policy financially disemboweled corporate America and many of her
employees, and retirees on corporate pensions. The Federal Reserve Bank and
the United States Treasury committed unknown amounts of the peoples physical
gold to 'lease and sale' surrogates in order to artificially depress the
dollar price of gold as 'evidence' of a strong and prosperous economy. The
peoples gold, confiscated in l933, is probably still on the books as 'leased
out'; but, realistically, most of it is to never return.
Congruent with the Federal Reserve Bank/United States Treasury criminal
price fixing of the gold/dollar ratio, the accounting illusion of corporate
prosperity enabled the falsely manipulated price fixing of American stocks
and American stock markets. Government and Federal Reserve white collar
crime (the 'sound dollar/'gold cap' policy that criminally price fixed the
gold/dollar ratio) disemboweled corporate America with an overvalued dollar.
At the same time; that government white collar crime protected criminally
fraudulent corporate financial reports, the Federal Reserve Bank engineered
a mega 'pump and dump' bull market bubble in the prices in American stocks
and American stock markets.
QUESTION? How can "off budget" expenses be legitimate for the United States
government and other government agencies and at the same point in time be
illegitimate for corporate America? The contradiction was resolved at the
highest political levels by the de facto legitimatization of corporate "off
budget" expenses. The de facto legitimatization of corporate "off budget"
expenses was knowingly, deliberately and willfully implemented by
politically necessary deaf, blind, and mute regulators, elected oversight
committees, and administrative watchdogs and crime busters.
Yet today, as the truth comes out, those same cooperative blind, deaf, and
mute lap dogs of criminal financial reporting and stock market price fixing
howl with academy award winning righteous indignation. Suddenly the
criminal's sleeping lap dog barks like a Pitt bull dog. Long silent Senators
and Attorney Generals who remained comatose during the years of criminal
illusion of economic prosperity and the criminal illusion of 'real'
corporate earnings, now posture outrage before the television cameras.
Are you beginning to get the picture?
The shepherds used Social Psychology in order to turn we the people into
conforming and obedient sheeple. Next, the shepherds rounded up the sheeple,
herded them to the slaughterhouse, and fleeced them. Then, the shepherds
financially butchered the sheeple. Now, the same shepherds are outraged and
they are your friends. And don't forget: Re-elect your caring friends, the
shepherds.
THE STATUE OF LIBERTY
The illusionist David Copperfield, made the Statue of Liberty apparently
'disappear' for a few minutes. Greenspan, Clinton, Bush, the Congress,
accountants, economists, the regulators, and the news media, made a
nationwide economic depression apparently 'disappear' for years! This
largest illusion and governmental white collar criminal stock market 'pump
and dump' con in the history of stock markets, required the active
participation of the White House, the Federal Reserve, Congress, the
judiciary, regulators, Wall Street, corporate CEOs, CFOs and their staffs,
corporate Boards of Directors, economists, the news media, accountants and
other financial reporters.
The participation of all was necessary in order to control the minds and
thoughts of the sheeple and in order to maintain the illusion of booming
prosperity so as to financially rape stock investors in the world's largest
stock market 'pump and dump' crime. No single group could have become
whistleblowers or the whole illusion would have evaporated. What bound them
so absolutely together in crime? Greed? Fear? Both?
For the illusion to hold fast so tightly, it would seem that the answer
would have to be "both". This raises extremely disturbing Orwellian
questions about the true nature of America.
David Copperfield made the Statue of Liberty 'disappear' for a few minutes.
Greenspan, Clinton, and Bush enabled an economic depression to 'disappear'
for years; from financial balance sheets, the news media, and public
knowledge. With the implementation of the Social Psychology knowledge of the
Asch and Milgram experiments on human conformity and obedience; Greenspan,
Clinton and Bush enabled liberty to disappear.
THE WALL STREET 'PUMP', IN 'PUMP AND DUMP'
Wall Street has massively practiced four separate 'pump' techniques that
deceptively inflate the public perceptions of corporate earnings. The first
Wall Street deceptive 'pump' technique is to report "Pro Forma earnings"
which omit various business expenses and thus excel at turning truthful
corporate financial losses into highly pumped 'profits'. The second Wall
Street deceptive 'pump' technique is EBITDA. That stands for Earnings Before
Interest, Taxes, Depreciation and Amortization. EBITDA also excels at
turning truthful corporate financial losses into highly pumped 'profits'.
The third Wall Street deceptive 'pump' technique is "the estimates game".
By low ball Wall Street "estimates" of corporate financial performances
being exceeded, the negative of corporate financial losses turned into a
glowing positive--- "Wow! They beat the estimates." This shifts the
measuring of corporate financial performances from 'profits or losses' to
how the corporations performed compared to the estimates.
The fourth documented Wall Street 'pump' technique has been Wall Street
brokers, on management orders, pushing and promoting the public purchase of
de facto bankrupt stocks such as Enron. Of course, the establishment news
media, falsified and criminal corporate accounting and financial statements,
and Federal Reserve debt accommodation also played major roles in the 'pump'.
THE 'PATRIOTIC PUMP'
Our politicians took advantage of our 9-11 deaths in order to give us the
'patriotic pump' as part of the overall white collar criminal 'pump' in
'pump and dump'. There are many versions of the 'patriotic pump'; but, they
go something like this: "Defeat the terrorists, buy American stocks." Even
our own heroic dead are put to use for increasing white collar criminal
'pump and dump' stock market profits. I literally cry at the political use
of our 9-11 deceased for the increasing of criminal pump and dump stock
market profits. Be sure that with the greatest respect and humility, I honor
and salute our fire fighters and all the others who died during the 9-11
terrorism. I would never think to criminally financially profit by their
deaths.
If we are to fight the war against terrorism by buying de facto bankrupt
corporate stocks at Rolls Royce prices; then, we shall lose the war.
RATIONAL EXUBERANCE
I suggest to you that Greenspan's "irrational exuberance" was quite
"rational exuberance" in response to years of massive institutionalized Wall
Street pumping of financial deceptions combined with corporate criminal
accounting practices and news programing and delivery controlled by social
psychologists..
Wall Street pumping, corporate criminal accounting, and establishment
financial media use of Social Psychology knowledge in order to create human
conformity and obedience (sheeple); resulted in a rational public being
predictably financially slaughtered.
Mr. Alan Greenspan: "How can you blame the rational crime victims for the
commission of the crimes?
CRIMINAL EXUBERANCE
Mr. Alan Greenspan, I believe that it was not the 'irrational exuberance' of
stock market investors that created the stock market bubble. No! I believe
that it was "criminal exuberance" by White Collar pump and dump criminals;
and, that the stock market bubble was funded by the irrational exuberance of
a Federal Reserve manipulated debt bubble! The Federal Reserve pumped the
debt pump during the 'pump and dump' pump.
Mr. Alan Greenspan: "Have you no shame?"
WHITE COLLAR CRIME
People world wide, and their pension funds, bought American stocks in de
facto financially bleeding and bankrupt corporations at rationally exuberant
price levels because of: 1) Blatantly falsified corporate financial reports;
2) A Wall Street supporting library full of Wall Street 'pump and dump'
deceptions and falsehoods; 3) The establishment news media use of Social
Psychology techniques, and 4) a debt bubble wetnursed by the Federal Reserve
that created fertile ground for stock market and real estate bubbles. The
result of this greatest of all criminal stock market illusions is that
people of the world bought United States stocks at economic boom prices
during an economic depression. This is the white collar crime of "price
fixing" at its worst. It has been, and still is, the largest planned and
deceptive governmental white collar criminal stock market transfer of
purchasing power in the history of stock markets.
This white collar con and crime was not performed by the equivilent of a
single cat burglar working alone. No. The financial rape of the holders of
United States stocks was the orchestrated and coordinated crimes of the
governmental/political/banking/Wall Street/corporate power structure of the
United States. Our cited definition of governmental white collar crime is:
"...
illegal and socially injurious cooperation between governments and corporate
institutions.." It may well be that for thousands of years, the price fixing
and 'pump and dump' of United States stocks and stock markets by the
grandiose Greenspan, Clinton, Bush illusion of economic prosperity will be
the textbook classic case of governmental white collar crime.
In my opinion, our United States government, our banks including the private
Federal Reserve Bank, our stock and financial markets, our corporations, and
our establishment news media are institutionally criminally corrupt. I can
reason no other rational conclusion in the face of such overwhelming public
evidence. In my humble opinion, the evidence criminally convicts "beyond a
reasonable doubt". If we Americans are not willing to die at the hands of
our own government for liberty; then we shall forever remain sheeple in
Orwell's Animal Farm.
A TREE FALLS
If a tree falls in the forest, and no one hears the sound, did it really
happen?
If much of corporate America bleeds financial losses; or, goes belly up in a
1990s Great Economic Depression; and, accountants and the news media do not
report it, did it really happen?
What is more important? Perception or reality? When it comes to financial
markets, in the short run perception is much more important than realilty.
But, illusionary perceptions falsely created by Wall Street pumping,
criminal corporate accounting, the Federal Reserve Bank pumping debt, and
news media social psychologists; eventually erode. Then, ever so slowly,
truthful perceptions of reality emerge. Corporation by corporation, one at a
time, we are now at the very beginning of that decades long process of
perceptions changing from financial illusions to economic reality.
ONE SCANDAL AT A TIME....
The alllegations of stock market scandals are slowly stripped naked for
public view, one stock at a time: Enron, WorldCom, Adelphia, Xerox, Ford,
assorted airlines, Global Crossing, Tyco, Halliburton, Merril Lynch, Reliant
Energy, Martha Stewart, Arthur Anderson, Kmart, Krispy Kreme, Compaq, Cisco,
Trump Hotels, Quest, Merck, and many others. They are a diverse lot. The
allegations vary from criminal accounting by Enron to insider trading by
Martha Stewart.
Yet, each of the individual allegations have a common denominator: GREED.
Many of the allegations involve concealed DEBT. And collectively, the
allegations portend of massive, widespread, minutely orchestrated, and
institutionalized, stock market WHITE COLLAR CRIME.
We have now entered the transition phase between 'pump' and 'dump'. Wall
Street still pumps some stocks while other stocks are being dumped by
financial news media allegations. I expect this rotation phase to last for
years.
'So, listen up folks, its not too late. You can increase the mortgage on
your house and still buy pumped up stocks. The stock market bottom is in! We
have a V shaped recession. No, wait, we never had a recession! Happy days
are here again! Economic recovery is just around the corner! Remember that
you only have three investment choices: Stocks, bonds, or cash. And in
stocks you have three choices: Large cap, medium cap, and small cap. That is
called "diversification".
And when you buy, remember your 'sell stops' so that Wall Street can 'run
the stops'. Don't forget, use margin. That way you can get margin calls
until you live in a tree. Have you hugged a tree lately? We are going to
pass a new law: "Regulators will see evil, regulators will hear evil, and
regulators will say evil." The new law is just thirteen words; but, it will
solve everything! You can't buy stocks without a Wall Street expert because
you are too dumb. Have I got some shorts for you in the commodity futures
market: Short wool and lamb chops! A banker gave me an insider tip that we
are about to be flooded with wool and lamb chops. Don't forget to buy paper
gold and silver. My name is Nero, and I love to watch things burn! Have I
got a good stock for you, they make eyeglasses for left footed people. They
have the patent. They will make you rich! You can't let that opportunity to
get rich pass you by. Even if I am wrong, stock market losses are great.
Think about how much they reduce your taxes. I have another surefire stock
market winner for you. This business just got the copyrights on bumber
stickers for: "We can legislate wealth"; "We can legislate integrity"; "We
can legislate betrayal"; "We can legislate hypocrisy"; and, "We can
legislate greed". Another business has the copyright on toilet paper for
Congress. On every sheet will be printed a Code of Ethics. Their stock
should be a ten bagger. By the way, is the use of Social Psychology
techniques for creating public conformity and obedience (sheeple) ethical? I
am from Merril Lynch and I have some stocks that you have to buy. This
corporation has the patent on making lipstick for pigs. It is tasty and you
can even put it on your pork chops. Impress your friends at the next BBQ.
This paragraph is just a wee bit of satirical humor, so don't take it
seriously.
Just laugh. Oh, have I got the stock for you, the company makes electonic
shepherd's hooks that can shock people with ten thousand volts. The electric
zap makes people laugh, if it doesn't kill them. The world needs more
laughter, don't you agree? Since the economy is hurting, we are going to
enrich the nation by passing a new law that makes sand legal tender money.
That way, everyone will have all the money that they want. What? It is too
late? The Federal Reserve Bank already did that, only they used air instead
of sand? You know that if we placed a federal tax on air that we could
balance the budget. Now just sign right here on the dotted line, give me all
the dollars that you can beg, steal, or borrow, and repeat after me:
"Baaaaaaaah".
AMERITINA
Now let's shift from tears of laughter to tears of sorrow. An inevitable and
delayed, but much more severe and prolonged collapse in purchasing power
shall be the price paid for the rollover debt and the new debt funding that
sustained the accounting illusions of corporate prosperity. The frantic
price manipulated gradiose 'pump and dump' stock market bull market dance of
the 1990s was funded by Federal Reserve pumped technological debtism.
The result of the technological explosion in debt will be the economic
Argentinization of the United States. America shall be a northern hemisphere
Argentina, 'Ameritina'. (www.gold-
eagle.com/editorials_02/smithf052802pv.html) Please prepare your family for
the coming of "Ameritina'.
(www.gold-eagle.com/editorials-02/smithf021902pv.html) That preparation
requires that you learn the Social Psychology knowledge on conformity and
obedience so that you can deprogram your mind and again be a free person
instead of being caged, fleeced, and financially slaughtered sheeple living
in Orwell's Animal Farm.
SUMMARY
QUESTION: Why did American corporations, Wall Street, and our government
resort to years of institutionalized and government protected deceptive and
white collar criminal accounting for corporations?
ANSWER: American corporations resorted to criminal accounting in order to
avoid bankruptcy courts. Wall Street resorted to the business financial
deceptions of pro forma, EBITDA, and "estimates", in order to conceal
corporate losses resulting from an ongoing economic depression so as to sell
to stock investors near worthless stocks at Rolls Royce prices (the white
collar crime of price fixing). The political motive of our government
protecting criminal accounting was to win political re-elections because of
a publiclly perceived prosperous economy.
The Wall Street motive of profit from stock market 'pump and dump' price
fixing combined with the government motive of political incumbants winning
re-election.
With shared mutual self-interest, they coordinated the implementation of the
criminal illusion of a 'sound economy' that was so financially injurious to
stock holders. It was classic academic governmental white collar crime. All
of the three necessary academic elements of "governmental white collar
crime" are clearly present: 1) Illegal behavior, 2) cooperation between
corporate institutions and governments, and 3) socially injurious
consequences.
De facto bankrupt corporations avoided the bankruptcy courts for a few more
years of plundering corporate assets by top management. Wall Street got rich
on 'pump and dump'. The incumbant politicians got re-elected. Blindly
trusting sheeple, as stock market investors, got financially raped in a
criminal 'pump and dump' stock market.
WHAT DO YOU SAY? If a tree falls and no one hears the sound, did it really
happen? If corporations sustain business financial losses, and accountants
post the losses as profits, did the financial losses really happen? If many
American business profits turn into losses in a Great Economic Depression,
and accountants do not record the losses, and the television news media does
not report the financial losses or the economic depression, did the economic
depression really happen?
Think. Answer these questions using only your own mind. If you go to anyone
else for help in answering these questions you are sheeple. That makes you
Wall Street financial road kill on the hoof. Each and every American has a
choice to make: Will they personally make a commitment of "life for
liberty"; or, will they live as sheeple on Orwell's Animal Farm?
DISCLAIMER: This essay is an exercise of my freedom of speech, and it is
solely my opinions that are provided only for intellectual stimulation and
educational purposes. Consistent with my background in criminology and
entrepreneurship, this essay is primarily a criminology paper on
governmental white collar criminal practices involving businesses, stock
markets, and other monetary and financial markets. Each email will be read
and greatly appreciated. However, without staff, time considerations
unfortunately dictate that most will not be answered. The contents are not
intended as investment advice.
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