Goldman Sachs Conspiracy the Real Dark Pool

8/9/2019 Goldman Sachs Conspiracy the Real Dark Pool

1/16

Armstrong Economics

-a4-1

-J i

co

r H4J

id

EUa>

4-1

dH

S .=

oow

. 'xJIDO

dH

PH

Q U4-1 C

W (

e eat

- ~c< OC k.

^4J UJ

w hE O

The Goldman

Sachs

Conspiracy.i

The RealDark Pool

Copyright Martin A, Armstrong A l l Rights Reserved J u l y l o t h , 20D

. c o m n t s Welcome; ArmstroneEcononiicBeGHail.COM (Internationally)
http://armstroneecononiicbeghail.com/http://armstroneecononiicbeghail.com/http://armstroneecononiicbeghail.com/


2/16

Please mail camrerits and questions d i r e c t l y to:

Martin A. ArmstrongTCL *rjrt Dix Camp #12513-050

PO Box 2000Fbrt Dix, New Jersey 0B640

PLEASE REGISTER YOUR EMAIL ADDRESS

FOR AWT UPDATE NEWS

[email protected]

Copright Hartln A- Armstrong, a l l rights reserved

This Report may be forwarded as you l i k e without charge. I t i s provided as a PublicService at this time without cost. The contents.and designs ot systems are i n factcopyrighted. At a future date, a book w i l l he released The Geometry of Time- Thecharts are often reproductions of an e a r l i e r publication from 1986 also to be soon-republished Th^Greatest-BullHtorke^ T900 up to "the i950e.

Additional updating i s underway to complete the:Cencury and into the current time,

providing a month to month history of the f i n a n c i a l development of Western Society,
mailto:[email protected]:[email protected]


3/16

The Goldman

SachsConspiracy.

The RealDark Pool

by: M ar ti n A. ftrmsUmig

former Chairman of Princeton Economics l n t ' 1Foundation f o r the Study oE Cycles

Lloyd BlankfeinChairman Chie f Exec utiveGoldman Sachs

There seems to be an extraordinary amount ofattention now starting to focus on the Goldman :Sachs Conspiracy as i t i s becoming known. This i s 1

giving me great concerns, for ttdiat I have been now jreading l i k e the piece fea tur ing the Dirty Dozen ;by Matt Tai bbi i n the R o l l i n g Stone on A p r i l 2nd, ;

2009, appears to be fo cu si ng on lo ose conne ction s , ___that spun together leads nowhere while attributing ;intentional acts to many. This so called "conspiracy" I believe i s starting to beintentional dis-inf ormation to confuse and defuse the r e a l conspiracy.

i

In market ing, and p o l i t i c s , they can manipulate the press by actually feedingthem stories that are se nsati onal to div er t att ent ion fra n the truth. When the newsbrill break anyway, the best so lu ti on i s a quick defense of disinformation. When theBank of England called a l l the s i l v e r dea lers together f or a meeting i n London i nearly 1998 to inv es ti ga te the manipulation of tha t market, Warren B u f f e t t came out

that night before the meeting t o announce he had bought $1 b i l l i o n worth of s i l v e rand he was not manipulating the markets, f o r t h i s was a long-term investment. Ibelieve you w i l l see t hat Buff et t sol d the l o t fo r s i l v e r went to new lows afterthat anyway. The o bje ct, to defuse the news that would come out and prevent any sortof an investigation that j u s t may have rev eal ed who e ls e was inv olv ed.

The stories about Goldman Sachs and spreading the blame around l i k e i t was agiant plot to destroy the economy and then create the great est tr an sf er of wealthi n modern hi st or y or ever under the noses of the Democrats, i s missin g the poi nt.You have t o r e a l i z e th at the re was no p l o t to intentionally create the economic collapsto make a windfall p r o f i t . That i s a st ory that could be intentionally planted to diverthe truth. This has always been about cr eat in g the .perfect trad e and ri gg in g the game.

i

I was behind the cu rt ai n. Check for yourself i f the National Ga lle ry i n Washingto n ever hoste d the TMF pa rt y pa id f o r by Edmond Safra. How can scmeone be held i nj a i l f o r more than 5 years with no indictment, c i v i l ccmplaint, or d esc rip tio n ofany fraud wit h no vict im s? When the Judge who allows t h i s Un-American a c t i v i t y i sth e f i r s t cousin of President Bush who keeps grabbing every e f f o r t to appeal andwon't ever allow any r i g h t to access the courts that was suppose to be a F i r s t Amendment right to p e t i t i o n along with the Free Press, you suddenly see the "Club" cando anyth ing. Why i s the pi ec e I wrote "Behind the Oirtairi" being counterfeited? Isi t because i t shows the r e a l conspiracy, not f i c t i o n a l destroying the world versions?

1


4/16

The way to d i s c r e d i t an is su e i s (1) at ta ck the; messenger, or (2) put out th e

misinforma tion t o convert i t into a "conspi racy theory" posi te d by nut job s. These

are the two attack formations. Look at Scooter Libby. We know that a l l the leaks

came from Dick Cheney. They t r i e d t o get at Lihhy, h i s a i d, but he knew that Bush

would take care of him i f be hel d h i s ground. They attacked the press, Ju di th M i l l e r

of the New York Times, even throwing her i n j a i l on contempt u n t i l she would agree

t o t e s t i f y . So much f o r Woodward & Berst ein protecti ng "Deep Throat," They attacked

the messenger and div ert ed the att ent ion from Cheney.

I t i s easy to take facts and s t r i n g them together to create a Conspiracy Theory.They are usually based upon a f a l s e assumption that there i s an ac tu al p l o t . PerhapsT was the l ar ge st corpo rate ad vis or i n the world . I don't know and don't r e a l l y care.What I can say , i s I never once saw sane gia nt corporate p l o t tha t coordi nated ascheme against soci ety. What T di d see, was more o r less t r i a l and error, and a l o tof mistakes that often resu lt ed i n c a l l i n g our firm.;

There were rumors of a consp irac y i n the auto-market. One could e a s i l y s t r i n gdisconnected fact together to make i t sound l i k e a clever h o s t i l e takeover. Thi s i sf a r from the truth and an i l l u s t r a t i o n of how Re al Fr ee Markets fu nc ti on . In the '70s,the German cars became popular because that were (1} quality, but (2) would r i s e i nresale value making i t nearly 95% retu rn of o r i g i n a l expenditure after 2 years ofdriving them around. This was r e a l l y crea ted by the b i r t h of the f l o a t i n g exchangerate system i n 1971 and the pe rs is te nt de cl in e i n the d o l l a r into T90Q. This createdthe image t h a t German cars ware bette r, yet i t was largely ef fe ct ed by currency,

(1) the Germans manufactured t h e i r product in Germany and t h e i r

cos t of prod uctio n was i n German marks-

(2) and the German mark rose i n value (dollar declined) the cost

of those ca rs i n dollars rose i n direct propo rtion to thedecline i n the currency.

Now coma the Japanese i n the next decade. How d i d the Japanese cars beat boththe American and German manufacturers? They took the currency r i s k home. Besidesproviding a quality product, they achieved price s t a b i l i t y by p r i c i n g the cars indollars ra th er than yen, and hedging the currency r i s k . As German cars would r i s ei n price, the Japanese were able to ccmpete and take the market by ta ki ng the " r i s k "of currency back t o Japan.

I receive d a c a l l from Mercedes i n Germany. They heard Princeton might have had

something to do with the Japanese gaining market-share. I fle w fo r the meeting to

Stuttgart. They had tfade another ntistake. They s o l d jthe B r i t i s h pound short assuming

that the Euro would be k in g. The hedge was de va st ati ng the balance sheet. I Jjim edia telyadvised they liquidate the hedge and to change their: p r i c i n g to the l o c a l currency

for each market setting up a hedging desk at home.

Mercedes surv ived . But the ch ie f f i n a n c i a l o f f i c e r was on the board of Daimler-Benz, who had mada the sane hedging decision. I met w i t h the board, but Daimler had

passed a reso lutio n that once they had made a hedging de ci si on that was made at theboard l e v e l , they would l e t i t e x p i r e . T hi s l o s t abdut $1 b i l l i o n and on the l a s t dayof the f i s c a l year, Daimler was merged suddenly with Mercedes. This was done to takethe b i l l i o n c e l l a r lo ss on hedging at Daimler and blend i t wi th the b i l l i o n p r o f i tat Mercedes who liquidated the same position.


5/16

I have never seen any such coordinated e f f o r t s between corporations to r i g thegame. They were t y p i c a l l y the targets of the investment bankers who viewed a l l thingsi n an adversary r o l e , even when you are t h e i r c l i e n t . Currency made", atria broke manycorporations around the world. You have to understand that the f l o a t i n g exchange ratesystem was born by default i n 1971. Tt was not like

:the 1944 Bretton-Woods accord

vrtiere there was a plan and a d i r e c t i v e - The 1971 event was an evol ution that was th eproduct of a time with OPEC that distracted the world frcm even addressing the factt h a t currencies floated. Hast universities s t i l l t o Hrie ffey do no t teach a coursei n hedging. To be a CFO, i t became t r i a l and error,: This i s th e gap that PrincetonEconomics f i l l e d .

In 19B5, Ke t- Li fe purchased a B r i t i s h L i f e company. By chance, they did i twhenthe dollar was at i t speak against the pound nearly J1_03. They were our next-doorneighbor i n Princeton, the international d i v i s i o n . They did not ask advice- They weret y p i c a l American companies that never gave currency: a second thought. The pound roseto nearly $2-00- They were handing out bonuses for the greatest takeover i n history.Why? Even i f the B r i t i s h company l o s t 5%, they reflected t h e i r p r o f i t s and assets i nd o l l a r s requiring the conversion i n currency to d o l l a r s for year-end. Then tjie poundf e l l back t o about $1.50. They f i n a l l y crossed the h a l l and came t o talk- They hadto now r e f l e c t t h e i r B r i t i s h assets i n dollars a t the new rate that was about a 25%loss from the previous year. An employee came and asked that they understood we werekind-of the currency s p e c i a l i s t s , and explained the! problem thinking that t h i s mighthave semething t o tfe wi th currency.

Thedegreeof sophistication in the corporate uorl d was never that high, mainlybecause when those at the top went to school pre-1971, they never had a discussionabout currency- Economics was taught as a Eerosum game and trade always was supposeto balance. They ware taught i n a different world, and the Conspiracy Thories canweave a nice t a l e , but there was no substance that I ever saw. This d i s i n f ormationstrings together facts that are not connected, and assumes a degree of understandingthat does noi e x i s t -

There are even Conspiracy Theoriesabout the Federal reserve and the worldCentral Banks. To a large extent, theseseem to have been b o i l i n g ever sincethedays of the Bank War between Andrew Jackson and Nicholas Biddle (1766-1844) andthe Bank of the United States. Again, Inever saw any well thought out plan fo r

global/dominations of any sort. What I didsee was the f i r s t attempt to coordinateactions of interventionbetween 1985 and1990, but even t h i s gave way to s e l f - i n t e r est. There were schemes at times t o d i v e r tc a p i t a l f l o r a . The US fed lowered interestrates i n 1925 i n hope of deflecting thec a p i t a l flows back to Europe- That f a i l e d ,attempts to try to influence markets hascertainly been present, but that i s aboutwhere i t has ended.


6/16

I

I

There are many conspiracytheories that I have heard and :been asked to comment on overthe years. Most of them arej u s t nonsense- They begin witha presumption that the people

at the Fed and other Central

Banks are actually i n controlof something and in fact theeven know how to use such power.

They are no different than anyother person. There were not ata l l born with divine powers andi f God speaks to them i n themiddle of the night, don't youworry for i t a l l j u s t a delusion.They do rot delight i n t h e i r ownapplause as we nay see the "club"

who delude themselves every timeassuming they can control a powerto ensure 100% victory.

i t had dawned on me perhaps when there was the 1989 Crash. I had carried twoc e l l phones many times when the model was reaching c r i t i c a l turning points as i tdid i n 1989. The markets were going nuts, and my ohe c e l l phone ran that was usedprimarily fo r very special c l i e n t s . I t was one of the G5 Centr al Banks asking meoutright what the model was showing and did I think they needed to intervene? AsT was ex pl ai ni ng the focus was i n Japan and that there would not be any abnormalcorrection and thus there should not be concern about intervention, my regular c e l lphone rang. I t was another G5 member asking the same questions.

What became very clear to me, was they t r u l y had no idea what was taking placeany more than the rest of the world. Everyone was struggling to comprehend the newworld that was emerging. Connunism seemed defeated, markets were crashing, and thegeneral expectation was - Should we be rejoicing? i

Most of the central banks have a l o t of PHDs, wi th no r e a l world experience.They have read becks, but have not been i n the trench to " f e e l " what i t i s t r u l yl i k e . This i s why government employees rarely have anything worthwhile that w i l lever contribute to society. There i s not a single economic s t a t i s t i c that i s evenv a l i d , no less any plausible guide as to what i s going on- There are manipulatedso much to t r y to influenc e the "public confidence.

11

that i t becomes a joke.

I f there were r e a l l y central bank conspiracies, why c a l l me? Why did Chinarequest I f l y to B e i j i n g during the Asian Currency; C r i s i s ? These e n t i t i e s areno different than any one else out there. They do not have a l l the answers, nordo they have the power to command the world to do one th in g at the expense ofanother.

i

The G5 evolved into the G20, and they cannot do anything, because they cannotsee that they are part of the problem. They are not devoid of s e l f - i n t e r e s t , andthey w i l l not act against that no matter what. You cannot convince any p o l i t i c a lstate that they should take t h i s ac ti on now to avoid a problem even a decade awayf o r they w i l l simply say i n a democracy, i t ain't :their problem, i t s that futureadministration's problem. Do not confuse sheer ineptitude with some master planthat i s coherent and transcends a l l administrations to achieve sore l o f t y goal.That i s j u s t not how i t r e a l l y works.

4


7/16

iff

c

Q

S3

c

- O B

O

C

s

11

ftpin!i 1-1 i si, O ^

l l f l lH i s *

i % | s j I

^ P > O p

s _

_e_:

3"

i l li

t-B *

rt -55 3 o

%! |

f i l l

S - ij

> f > 3

S r 5 %

S J= *

K , i m

3

to &

S f TTS -o nS a. -

^ -a o5 JE 5 O

g

5 S

ij

" - a g

-c; m .

.B '5 -1 ^1

s ^tSt - 3

ti n H;

3 S

ti

I !

5


8/16

Yes, i t i s true that Princeto n Economics acted l i k e almost a p r i e s t amongcentral bankers. How th at evo lve d T w i l l save f o r my memoirs. But what T did

learn from the experience was that even at that l e v e l , they knew l i t t l e more about

what was happening than professional traders. They were no more the man i n the

clouds looking down upon us a l l and pontificating what s h a l l take place next.

V)hy flU G\cM Sta tutes flge UJto*g I

The f l o a t i n g exchange rate system rendered v i r t u a l l y a l l economic s t a t i s t i c sworthless. Because inter natio nal trade under a fixed exchange rate system i s properlyreflected by j us t loo kin g at the currency in so fa r as i f you spend more you presumereceived more since the do ll a r i s a constant, once we moved to a f l o a t i n g exchanger a t e system everything changeI

I l l u s t r a t e d here i s a l e t t e r I sent to former Secretary of the US Treasury badei n 1997, Robert Rubin, I explained t h i s problem and how i t was se ri ou sl y a l t e r i n gthe entir e interna tional measurement of the economy. What was happening, was thatthe US Treasury was again s ta rt in g to pu bl ic ly make statements that the US/Japantrade d e f i c i t was expanding, and t h i s had to be addressed.

The problem we face , i s that wit h each new adm inis tra tio n, there i s a lear nin gcurve and one must s t a r t over again. A ft er being requested for a l l research i n themiddle of the 1987 Crash that had the impact of reducing the pote nt ia l regu lat ionwith a brief statement that they believed the cause of the 1987 cra sh had a l o t t odo with currency, here aga in i n 1997 the same mistakes were st ar ti ng to surface.

The Treasury responded, and the ccenments ceased, although Princeton Economicswas perhaps the most respected i n t h i s area because we di d everythi ng from scratch.Even one of the NY papers wrote that Priceton Economics was one of th e most respectedfirms around. The Canadian press had named myself economist of the decade. What wast h i s a l l about? Foreign Exchange.

Simply put, i f the trade d e f i c i t incre ased by 100% i n a f i x exchange system,then you must have purchased more produced. But i f the currency dec lin ed by 50%,then you received the same amount of goods, the price increased to compensate f o rdep rec iat ion in the currency. So once you r e a l i z e that the entire system of globaleconomic s t a t i s t i c s does not actually measure the number of goods moving but theamount of curr ency , you can see th at we r e a l l y do not have a clue as to the " r e a l "economic trends.

When everything we measure wit h i s pri nte d on a rubber-band, you can imagineth at we are hone stly cl ue le ss . How can we compare GDP growth of one nation toanother? My secretary had one of those metal s t i c k fi gu re s on her desk holding a

sign that said i t best - "Shit Happens." Things are not what they may seem. I haveactually sat in the room with some of the central bankers post-1985 where theyhad a red phone con nec tin g the G-5 (Group of,5 nations) formed i n 1985 where theywere conducting currency in te rv en ti on s. One day, the phone rank wh il e I was the reand the banker was not answering i t . I asked why not? He re pl ie d; "Cfol I t ' s thedamn Germans t r y i n g t o get me to buy more Dfcfark. I; have enough!" (you'll have towait for the memoirs f o r which bank).

6


9/16

There were a number of central banks that gave' us Information that they wanted

published, but p o l i t i c a l l y speaking, they could not. This TOE true from Europe t oA s i a . I gave a lecture in Toronto where the Central Bank of Canada came to l i s t e n

bringing perhaps 10 people or more. I would take questions from the audience, and

they were often about what the central banks were looking at- I would answer, and

everyone turned to see i f the folks a t the Bank of Canada f l i n c h e d . The bankers

rare so cold-faced, afterwards, I went up and apologized i f I offended them. My

friend the head trader Pete, remarked: "Marty that was a great lecture, I wish I

could t e l l these morons what you do." Of course Pete was r e f e r r i n g to the fact that

t h e i r hands are t i e d p o l i t i c a l l y . I even had the Finance Minister of Nova Scotia

t r y to argue that the central banks are i n control,'. they j u s t don't speak about i t .

Pete was there at the same party, so I asked: "WDuld you l i k e to meet the guy a tBank of Canada?" Pete smiled.

The Central Banks are far more independent than one expects. They are not partof a grand conspiracy. The danger that e x i s t s i s more along the l i n e s of a GoldmanSachs t r y i n g to put forth t h e i r trained people for p o l i t i c a l jobs. That i s the r e a ldanger. I f the central hanks were on board as some of the conspiracy theories cla im,why W5uld GS neefl p o l i t i c a l candidates?

I t i s also a disinf ormati on serv ice that seems ;to go around the purpose of thecentral banks and the value they once served, i f we can keep the p o l i t i c a l charactersawry from p u l l i n g the s t r i n g s .

To the l e f t , please f i n d thec a l l money rates from the NY StockExchange. Notice that the peak i nrates was nearly 200% in 1899. TheFed was created i n 1913, I f i n dthat the early history seems to beignored, or overlooked perhaps evenintentionally.;

Before there was the Fed, theman who put together consortiumsto save the nation and even the

the Government i n 1896, was J.P.Morgan. He came to the rescue ona number of times. But the age ofthe R eli gio us Right was there and

furthered the ideas of Karl Marxprofoundly. They backed the ageof the Progressive republicanswho perhaps did more to destroyAmerican r i g h t s u n t i l Bush.

J.P. Morgan was seen as e v i l by the Progressive Republicans and he was summoned

before the Senate b a s i c a l l y for an i n q u i s i t i o n , Tedxly Roosevelt's Trust-Busting days

saw evil-doers everywhere they looked. Morgan was g r i l l e d i n public and they t r i e d

t h e i r best to destroy him. Hftdied shortly thereaf ter i n 1913. The Fed was createde s s e n t i a l l y to replace Morgan and to do what he had been doing, stepping i n from time

to time to provide s t a b i l i t y ,

A central bank provides the l i q u i d i t y that helps to smooth out the econonic

seasonality of the economy. For example, i n many industries, at l e a s t l/3rd of t h e i r

annual r e t a i l sales takes place at Christmas time and thus are l i n e d up with the

fourth quarter. Likewise, gasoline i s consumed core i n the simmer than i n the c o l d

winter. There are j u s t seasonal adjustments that a central bank does help to smooth

CALLMQWEYfWTES 1S7MQ32

-Mb

'

- I

an Mflj

HU

3T [ i 1 r-

1M0 P W ) 15B \i& 1 -

O U t ,

7


10/16

Most people overlook the entirepurpose of the Federal Reserve, Fromi t s o r i g i n , i t was meant to smooth out ;the c a p i t a l flows nationally that hadcreated the Panic of 1907. Unlike theFed today, i t di d not buy Governmentdebt, i t stablized the economy by thepurchase of corporate paper. Each ofthe 12 branches operated independentlyand the chart to the r i g h t shows theinterest rates only at the Hew York

Fed, that was the dominant branch, notWashington,

Tt was Franklin D, Roosevelt who usurped the Federal Reserve into a single rate

system and controlled i t from Washington. Because of the confiscation of gold from

a l l the banks during the "bank holiday" and the funding of World War TI, the Fed

was usurped for p o l i t i c a l purposes and was under orders to support US government

bonds u n t i l 1951,

We cannot overlook that between 1943 and 1951, the Government v i r t u a l l ydictated interest rates to the Fed. i t was the Korean War that broke the stronggrip of the Government that they maintained for 8 years manipulating by decree

the value of i t s bonds. President Truman stood up and also t r i e d to use hiso f f i c e to b u l l y the bond markets. The market had paused between June and December1950, as i f the market was confused, trying to figure out would t h i s be i n f l a t i o n a r yreflected i n higher rates, or was t h i s going to be another period of austerity withinterest rates kept by decree a r t i f i c i a l l y i^w? The Muni-bonds rose sharply i n priceas expectations of higher taxes and wartime price controls would be reflected i nthat market as w e l l .

However, i t was at t h i s time of February/March 1951, that the US Treasury and

the Federal Reserve reached an accord with the government that ended the policy of

a r i g i d support for government bonds at par. The p o l i t i c i a n s could no longer then

dictate the price of bonds and the r e s u l t was a sharp drop i n long-term debt of 4

t o 7 points i n the market, corporate debt also f e l l by 7 point s, yet muni,bonds

declined 13%. Prices of US debt eventually dropped 83% from 1946 into 1981.

Most of the events from the s t a r t of the two- tier gold market i n 1968, the closingof the gold window by Nixon i n 1971, to the abandoning of usury laws by Paul Volker,none of these actions were planned. They were the t y p i c a l flying-by~the-seat-~of-your-pants types of moves. Unfortunately, the problem with a Democracy and subjecting thep o l i t i c i a n s to vote, shortens the a b i l i t y to ever plan ahead. Everything i s fo r themoment to win the next election - nothing morel

- ^ T ^ C e R e a l C t u k ^ =

We are doing ourselves a great disservice by assuming p l o t s and long-term planst o even Goldman Sachs and the "club" because they cannot see past the next bonus checkThere i s no conspiracy to control the world. Nor i s there a conspiracy to create aone world currency, that i s ccming one way or another"

I f we want to survive and t r u l y f i x t h i s mess, recognize GS for what i t i s , Aclever market manipulator who was never interested i n helping society, j u s t to f i l li t s own pockets, GS i s interested i n remaining top dog and i t w i l l do whatever i ttakes to keep that position. This i s about manipulating the f i n a n c i a l economy, notabout creating a p o l i t i c a l state of a one world government.

3


11/16

There i s a vast dis-inform ationcampaign goin g on to clo ud the r e a liss ues tha t are ta ki ng pl ace . The moreone throws every thing a t the wall, themore i t sounds l i k e j u s t f i c t i o n .Th is i s Why you w i l l see also attacksupon myself because they do not wantyou to understand the core of the r e a lGolfinan Sachs Conspiracy.

you have mcst l i k e l y read about"Dark Poo ls" th at are being portrayedas an off-exchange system that allowspeople with si ze to par tic ipa te awayfrom the sm all inv est ors and markets.Let us make t h i s very c l e a r . He whoruns the "Dark Bool sees a l l l

Ufa? U c h n a ^(That Michael Miken went t o j a i l

for as "Inside Trading" in stocks underthe SEC r eg ul at io ns , i s standard andopen practices off-exchange, and i n a l lother markets inc lud ing currency, bonds,

and i n Dark Pools, There i s a c o n f l i c t of interest. when the so c a l l e d broker-dealeri s making H P markets, has access t o huge funds, and trad es agai ns t h i s own c l i e n t s .You w i l l no ti ce that j. P. Jtorgan Sta nle y i s sa id to be t r y i n g to go back to thebrokering trade, whereas Goldman Sachs i s clinging to the propri etar y trad ing modelagainst i t s own c l i e n t s . C o n t r o l l i n g p o l i t i c s and the Dark Pool System provides alook at in side information fo r prop riet ary tra din g. If Goldman Sachs had not been amajor propriet ary trader, they would never have placed key people in to the p o l i t i c a lworld. There would have been no s e l f - i n t e r e s t i n terms of SmitVs I n v i s i b l e Band,

The co ll ap se we have endured was not planned, i t was never conceived that t h i sfcould be the outcome. GS does not create long-term models- The "cl ub " i s only keenon guaranteed trades* - never r i s k . They assume they cannot trade consi sten tly, so

to make money consistently, they need to cont rol the game, ins ide in fo on stocksmay be " i l l e g a l " f o r everyone el se , but when you c ont rol the Just ic e Department andthe Courts throw ing i n the Treasury , you get one of those "Get Out of J a i l Free Cards"from th e game Monopoly we play ed as ki d s . No one w i l l be criminally charged everunless they s o l e from the "c lub " and then they w i l l . b e prosecuted.

Uncovering the "cl ub " i s not very hard. Ju stfollow the t ra di ng. You w i l l see the clu st er in g oftrading i n crmrtdditi es or cur re nc ie s airong the keyplayers. They buy and s e l l together against thepublic and corpo rations, often ge tt in g governmentsto guarantee any l oss cov ert ly. They w i l l buy ands e l l together. Take o i l , f o r example. Yes, our model

came out i n 1997 and pro jec te d crude o i l would r i s efrom J10 to $100 g oing i n t o 2007. The Departxait ofEnergy requested th at Prin ceto n Economics b u i l d aenergy model f o r them. There was a cou rt hea rin g ont h i s before Judge Richard Owen i n the Southern D i s t r i c t of New York on October 3rd, 2GQQ (99-Civ-9667).The SBC and CFlC objected, and the Judge went w i t hAlan Cohen, c h i e f Compliance Off ice r of Goldnan Sachto block Pr inceton fra n cr ea ti ng any mcdel to helpthe American p u b l i c . Why?
http://will.be/http://will.be/


12/16

I cannot stress enough, that the game i s not to cont ro l the p o l i t i c s of the

world. The object i s j u s t to con sis ten tly make money by ins id e inform ation or byc o n t r o l l i n g that information. That i s why we must be more concerned about the plainbackground of those appointed i n charge of the Fed, World Bank, international 1

Monetary Fund, and the various major Treasuries. I t i s by pla cin g key people i n

these ro le s that extr act s the key information sought to achieve that goal of always

being smarter than everyone else, and never being wrong. This, unfortunately, is

a matter of self-delu sion.

I f you bel ie ve you can co nt ro l the game, why bother with honest analysis? My

contacts with the "club" were never about pro vi din g advice. I t was to s o l i c i t meto become pa rt of the "c lu b" and then use th at pos it io n of giv in g glob al adviceto con tro l the market fo r the "c lu b" that they assumed i n f o can do, but the re co rdof events since Long-Term C a p i t a l Management, demonstrate otherwise.

The "clu b" beli eve d they co nt ro ll ed the IMF and thus had the ins id e tra ck onthe loans going to Hussia. Edmond Safra i n v i t e d me to j o i n i n with t h e i r HermitageCapital, where a f t e r h i s death, the CEO was banned from Russ ia by Puti n. Jus t l i k ewith RIG, b a i l i n g out RIG was an indirect method of cov eri ng the losse s at GS, fo rexample.

Look a t December 2008. This is where a l l the RIG b ail out s to GS tcok place,and what do we find? GS suddenly delayed that for December because t h e i r f i s c a l

accounting year ended with November. Then they changed t h e i r accounting year to i astandard calendar so they re po rt ed $1 .S b i l l i o n p r o f i t f o r January-March making i tappear l i k e Goldman i s now OK. What happened to the December number? Well, theyw i l l not be discussed u n t i l the quarter comparsions at the end of 2009, when theyw i l l be old news, and any p r o f i t w i l l be able to show a glowing report.

The IMP support o f Russ ia was ope rati ng the same way. The "club" purchased theRussian short-term paper at unbelievable rat es of Inte res t, and they were bankingon the IMF to make sure that the money kept flowing. I personally warned the headof Republic Na tion al Bank that Russia was going to coll apse . He j u s t about laughed,I was i n v i t e d t o Washington to the National Gallery to show me the power of the"cl ub" and the in si de inform ation they controlled. They believed they had th e IMPi n the palm of t h e i r hand. You can check the London F i n a n c i a l Times for the summerof 1998. I de li ve re d th at for ec as t th at Russia was about to co ll ap se and the FTput i t on the fro nt page of the second section, more-or-less sta tin g that i f everyonelistened to Princeton, Russia was doomed. The collapse came and with i t , a contagionthat caused massive l i q u i d a t i o n s around the world to cover what could not be coveredwith the Russian debt. That created the Long Term C a p i t a l Management collapse andagain we f i n d the "cl ub " ge tt in g the Fed to b a i l them out, tak in g the money i n d i r e c t l yto pretend they d i d not lose i n the debacle.

The IMF and World Bank have a long-time reputati on of being j us t a b i t corrupt.

They ar e used to create i nd ir ec t flows of p r o f i t s to the "c lub " to avoid the di re cttransfer route to prevent most people from seeing what goes on. There are a host of

problems i n t h i s area, and that included the European Development Bank that spent so

much money on bui ld in g a palace i n London, one would be shocked.

The o nly conspi racy i s t o make money and create guaranteed trades. There i s no

grand master-plan to take everybody' s l i b e r t y . Even the tyranny of the English king

made every felony death because Hit was cheaper t o , k i l l a prisoner than t o feed him

for l i f e . I t was always about the money' and the "cl ub" i s no di ff er en t.

10


13/16

Lloyd BLankfein, head of Goldman Sachs,

goes on the internal speaker-box at GS twice

a week in recent months trying to keep

morale up among the ranks. While everyonemay focus on the "missing month" in GS's

accounting assuming t h i s i s hid ing the loss

of about $1.3 b i l l i o n and the AIG moneytransactions, there i s another issue

that i s closer to the core s u r v i v a l .

What GS i s r e a l l y trying to hide i s theamount of loans to i t s own s t a f f to

help them cover t h e i r own margin

c a l l s , -i .'

4

Goldman Sadis has been quick torepay the TflRP money because they wantthe government out r e a l f a s t . Everyoneassumes t h i s has only to do with thebonus structure. Tt goes a l ot deeper.The payment system has always been

performance, and since GS i s holding on to the propri eta ry tr ad in g model and haseliminated Lemans and BS while e f f e c t i v e l y humbling Marril Lynchr they cleverlyhad hoped to gain an effective monopoly of the US f i n a n c i a l markets. Controllingsubvertly the Treasury, Fed, World Bank and the IMF, they hoped to create nota ccmpany that dictated your personal r i g h t s , j u s t controlled your personalfinances.

anyone who has been a bi g trade r, knows that i n dealing with the "marketmakers" there use to be competition. By eliminating Lehman, M a r r i l , and Bear, thenet " r e a l " effect i s that the spreads between bid and ask have widened to thepoint that one needs only trade perhaps 1/3rd of the previous volume to make the

same amount of money, Goldman Sachs has arisen powerfully by eliminating any suchcompetition. They are not t r y i n g to destroy the economy, although they have donea good job by t h e i r own s e l f - i n t e r e s t , but they are trying to establish a r e a lmonopoly that have not ex isted i n recent memory.

. Even the Democrats w i l l do nothing against Golctaan Sachs because they needthem to be able to continue to f l o a t t h e i r expected t r i l l i o n s of new debt. Whow i l l get i t sold i f Golrton Sachs goes to j a i l ? The courts are owned by the"club" and that i s evidenced by an attempt i n New york to f i l e a major lawsuiton a class act ion basi s against M e r i l l Lynch several years ago. The s u i t wasgiven to Judge Po llac k who dismissed the law sui t protecting the Investment Banksand the excuse was a clever weaving of legal principles that were high ly doubtfuland the Southern D i s t r i c t of New York w i l l not allow such s u i t s . You cannot p r e v a i l

i n New York ever against the "club" or the government. They enjoy a 99% victoryrates and a l l other courts w i l l back them up. So Goldtoan Sachs has reached thel e v e l of being untouchable, and the p o l i t i c i a n s w i l l allow t h i s to go on becausei t serves t h e i r purpose. They need somebody to s e l l t h e i r debt. I t i s called aPrimary Dealer,

There was a lawyer who t r i e d to f i l e a s u i t against the corrupt Second C i r c u i t

at the Supreme Court. That I l l u s t r a t e d why c a p i t a l i s j u s t not safe i n America any

11


14/16

more. Ha demonstrated that never do c i t i z e n s win, and that the decisions oftencon tra dic t th e. la st one, and every lawyer I ever spoke to about New York, saysthe same thing. The Judges manipulate the ru li ng s so that the Government never \ ..loses. We are no better than a banana rep ubl ic with nuclear weapons. You justcannot invest i n a system tha t i s rigge d. This i s the code word that Judge SonyaSatomayor made - "Judges make p o l i c y . "When policy obje ctive s are tha t the st atemust always win, then there i s no ru le of law. That i s tyranny- So the c our tsare firmly wi th in the: hands of the "c lu b" and the p o l i t i c i a n s w i l l do nothing.In f a c t , where the Senate has oversight CCTrmittees for the CIA, Homeland Security,and just about every other department, ther e i s no such committee that assumes any

oversight committee f o l l o w i n g j u d i c i a l rulings. Write you any Senator, T e l l himyou were treated unfairly by a judge. I f he responds, he w i l l t e l l you he dees notinterfere with the courts. Thus, you have no ri gh ts to property at a l l , for thejudges can do as they l i k e , whenever they l i k e , and that serves the governmentvery nicely. That i s why ther e are no ove rsi ght committees t o ensure you are treatedf a i r l y . Even i f everyone voted tomorrow and demanded t o change t h i s law, judges arenot subject to vote, and they claim they have the f i n a l say as to what any law means.Goldman Sachs con tro ls the co urt s i n New York- That i s even more powerful that the

Fed.

Sr.H The Sih* Jpfcnwg R_>d_(hfl * nt p D E ) :


15/16

tej milOfHit 13* H | BII ' ""a Uaf - v i . i e u n e e D f H 1 * 1 * ga r c n o f -s H i

F i l V i / m M/ j H Jul 17? dpi ha . Iha JHDIT Fr t V-IS* . B f J B . . .

; When we look aL Uie performance

of iGoldman Sachs shares, tha s t ^ d a r d

technical analysts w i l l focus on the

old double bottom at 150, and see t h i s

as the w a l l of resistance. This i s by

fa r not a 100% r e s u l t . Often t h i s i s

faded and that at times w i l l sucker-in

new buyers j u s t i n time f or the sheer

collapse.

The standard downtrend l i n e of200S has been exceeded and resides i nthe mid 130 range. Here also, exceedingi t means nothing. What we need t o seei s that t h i s transforms i n t o supportfor any decline. I f share prices f a l lbelow t h i s area, t h i s w i l l be a signalof future weakness.

I t i s the Breakout Li ne drawn fromeither sid e using the opposite reactiontaking place around the Ncrtsnber 2000low. l l i i s l i n e was exceeded i n A p r i l ,r a t e sted in May, and then the r a l l y int

June t o r e t e s t the 150. This now restsat the 125 are i n July and pentratingt h i s w i l l s i g n a l the r a l l y i s most l i k eover.

I f we head to new lows, they wouldunfold going i n t o perhaps the May/Junetime period i n 2010- Ideally, the f i n a llow generally forms 31 months from themajor high-

When we look at Morgan, we come away with a much different picture. Where GoldmanSachs created a November 2008 low, JEM declined i n t o February 2009. On f i r s t blush, one

might assume that JPM i s weaker than GS, but i s r e a l i t y , i t i s r e f l e c t i n g far greaterlong-term support, and t h i s implies tha t JEM may be the l a s t one standing after a l l . GSmay net survive as well even f ar a l l i t s cunning and p o l i t i c a l machinations-

Do not get confused i f

we see JPM bottom before GS

and t h i s may provide even a

leading indicator. JPM i s

o f f i c i a l l y claiming i t i s

moving away from the con

f l i c t o f proprietary trading.

I f t h i s proves correct, we

could sea the evolution of

JIM being transformed Into ;the major house- Goldman '

Sachs may lose talent who

r e a l i z e i t i s more l u c r a t i v e

overseas. Nevertheless, for

now the Goldman P r o f i t s are

going to r i s e , but this i s

frompropritary trading, not

business and i s therefore not

a r e f l e c t i o n of the economy.

'is -= ->- Z


16/16

!

I t ' s the Dark Pool that i s a cl ev er namefor enhancing pr opr ie tar y tr adi ng . He who makesthe r u l e s , owns the gold. That i s what we arelooking at with the new concept i n Dark Pools.Fox decades, one called the broker i n i n t e r bank and he would t r y t o read you and then heshifted h i s quotes trying t o squeeze an extrad o l l a r . Once he knew where you were, they i nf a c t kept track of your p o s i t i o n s . What Milken

want to j a i l fo r, was standard pr ac ti ce i ncommodities and curren cies. Creati ng Dark Pools so that big traders are not effecting thesmall trad ers, i s the greates b u l l s h i t st or y sin ce death insurance ttos called l i f e i n s u r ance to increase sa le s,

A Dark Pool w i l l allow the same inside information to ai d the propr ietar y tradi ngOf Goldman Sachs. The government w i l l lo ok the ot he r way, and what use to be a crimemagically becomes legal- The problem wit h the whole Goldman Sachs Model, they arer e a l l y a hedge fund with favored status.

I f one must speculate to earn a l i v i n g , then the business is a f a i l u r e . You mightas w e l l become a fund manager si nc e the business you are ope rati ng i s just not working*

Goldman Sachs l o s t bi g the l a s t few times. A sudden col laps e i n the market, and theyget wiped out. There is no r e a l busines s i f one has t o spec ulat e to make money.

Hie government should outlaw what Goldman Sachs, i s doing. E it he r you are a bank,a broker-dealer- f market-maker, or a hedge fund. You cannot be everythi ng rol led -upin one entity, The c r i s i s t h i s presents, i s that confusion w i l l dominate during anyperiod of uncertainty.

I f Golctaan Sachs loses bi g in trading, what everyone thought was business p r o f i t sr e f l e c t i n g a rebound i n the banking sec tor , w i l l be suddenly l e f t standing an emptyhand, f o r what they thought was ta ki n g pl ace was the opp osi te.

The REAL Goldman Sachs conspiracy i s only about trading. They have sought to be

the masters at manipulating the events and government only to Sttftk personal gain. Theyhave no plan to ben efi t soc iet y. They are not even a r e f l e c t i o n of how the economy i s

doing. They are t rad er s - and not much more.

When Goldman Sachs share prices f a l l , do not assume t h a t i t h i s i s a t ru e and r e a l

r e f l e c t i o n of the economy. They are a symptom of the problem, not a soultion for the

future.

I have previously wri tte n about th e h i s t o r y of the "c lu b" and the organ izede f f o r t to rigiithe markets. I stand by those comments and i n v i t e anyone t o di g up the

trading records and you w i l l see who was lo ng and shor t when.

Morgan claims t o be r et ur ni ng to the broker-de aler model and away from the high

r i s k of propr ietar y trad ing. Goldman Sachs sees only: the mcney, not the businessmodel. The advice of i t s former Chairmen who have hel d the l o f t y places of publico f f i c e are no more educated i n the r e a l world economy than any politician;:.They havepresumed power i s t o manipulate and to h e l l with the free markets. They views areno different than t h e i r p o l i t i c a l conspirators.

There is no one on our side because they are dr iv en by s e l f - i n t e r e s t . We have f a r

too many p o l i t i c i a n s , and no statemen.

,4

Documents

Goldman Sachs Conspiracy the Real Dark Pool