Trading With Other People’s Money Why MF Global is worse than Europe

The shocking collapse of MF Global with the amount of missing client funds now rising to $1.2 billion, is so devastating, we are at the precipice of complete financial disaster. The United States boasts far too much of its greatness and “liberty and justice for all” but its actions reveal nothing but greed, distain, and contempt of the rights of man that include his right to property. Jon Corzine was a bond trader at Goldman Sachs and has been known as an aggressive trader all along. He intervened at the SEC and changed the direction of MF Global. What is at stake now is exposing the political corruption of the New

York media, courts, Justice Department, Commodity Futures Trading Commission, Securities Exchange Commission, and political process has come together in such a way that the fate of the nation is truly hanging in the balance. Why do I make such a bold statement? The failure of the clearing houses to step up and honor the trades is devastating. The conduct of the SEC and CFTC is despicable and how can you place ANYONE at the helm of either “regulator” who would EVER be in a position to have to recuse himself as the Commodity Futures Trading Commission’s chairman, Gary Gensler has done for being ex- Goldman Sachs? Gensler can claim he recused himself, but that is bullshit for how can he do that and still run the Commission? He was replaced by Jill E. Sommer who previously worked for Chicago Mercantile Exchange, where her responsibilities included overseeing regulatory and legislative affairs for the exchange and working closely with congressional staff drafting the Commodity Futures Modernization Act of 2000. So now we have Sommers who clearly has a conflict of interest as to the failure of the CME to conduct auditing and to allow such trading with client’s money in the first place. Finally, the CFTC passed a measure that at long last required brokers not trade with client’s money by a 5-0 vote AFTER THE FACT! The rule was initially proposed by the CFTC in October 2010 and it took MF Global to at last establish this precedent. In my own case, the CFTC made that a primary allegation (failure to segregate) and used this as the justification to ask for a receiver to seize the company. It has NEVER been a crime. In my own case it becomes clear that Bloomberg News simply always refused to EVER even print my defense and ignored the very plea that stated clearly that the segregation of funds was NEVER concerning accounts of Princeton Economics but that Republic National Banks had then too used accounts of its clients for their own benefit precisely as MF Global. Since the CFTC just now is making it a violation to trade with client’s money shows how it has been a COMMON practice all along. Of course anything that tells the truth about New York is not newsworthy in the eyes of Bloomberg News when it exposes the banks – their clients. This bias strips them of any justification to dare call themselves journalists. This is what I had to read in a script written by the government no different from a hostage held by Iran put before the media to read similar scripts. But these were the words the government gave me to read where they could not trace 10 cents to any personal account of mine, but everything was taken by Republic. When they first ran to the government after my lawyers filed notice we would sue on this issue of trading with our funds, they told the government I conspired with the THEIR OWN employees to hide their trading from the Japanese. That would sound good if the accounts belonged to the Japanese. Once they could not get around the fact we purchased portfolios and the accounts did not belong to the Japanese, they would never go to trial.

Conflicts of Interest in New York are no longer reason to prevent rigging the game. In our own case, Andrew J. Geist was then at the SEC and was the Senior Associate Regional Director for Enforcement in the SEC’s Northeast Regional Office. This is the man that authorized filing the case and seizure of Princeton Economics. Aside from the fact that this man wanted the US Constitution suspended and that the company was to be denied the right to hire a lawyer, he then directed that O’Melveny & Myers LLP be the lawyer for the receiver he also picked, Alan Cohen who is head of Global Compliance of Goldman Sachs. After that is accomplished, he then quits the SEC and becomes a partner in O’Melveny & Myers, LLP the very law firm he selected. In Armstrong v. McAlpin, 625 F.2d 433 (2d Cir. 1980) (no relation) it was held that former government lawyers cannot then participate in the same case. The Model Code of Professional Responsibility forbids a former government attorney from accepting private employment in the same matters for which he had substantial responsibility while working for the government. Violation of this rule requires the former government attorney's disqualification from the case at issue. The Code also provides that if an attorney is disqualified under any of its rules, then all associates or members of his firm should be disqualified (MODEL CODE OF PROFESSIONAL RSPONSIBILITY DR 5-105(D)). They just do not care in New York and if you raise the issue, the judge will not address it and he then gets pist-off at you and will retaliate.

The same was true about Hank Paulson claiming to be Secretary of the Treasury, who signs conflict of interest restrictions regarding Goldman Sachs upon taking office, but when the meltdown takes place gets everything was waved so he could deal with the very firm at the very moment of conflict!This status of Goldman Sachs Alumni infiltrating the executive functions (non-elected) both in America and Europe is threatening our very way of life. Enough is enough. We do not need recusals and unenforceable conflict of interest covenants that are inevitably waived when the Justice Department would never prosecute a violation anyway. We need HONEST government. We need the RIGHT to sue the press for NOT reporting the truth before judges who have NEVER worked for government and are NOT there for life.

The major New York Press groups are owned by major corporate players who are or were obviously involved in the whole scheme. Take Bloomberg News where Michael Bloomberg was a partner in Salomon Brothers who was discovered manipulating the US government Treasury Auctions. This is why even when Bloomberg News has been handed the very evidence that shows the story is false and the choice is between reporting the truth or supporting the corruption in New York, they refuse to publish the truth claiming they “will not relitigate the case” which amounts to censoring the information that belongs to the public. This is the most tyrannical role that any press organization can play and it precisely this lack of independence that threatens the entire world economy not just the American people and their liberty. This bullshit about protecting the “club” in New York has got to stop and when the press is bought and paid for, this amounts to against the right to a free society to remain free. This is NOT performing the role of the First Amendment and the dishonesty of the NY press has also become part of the whole problem that is destroying our way of life. This incestuous corruption must come to an end!

The US conviction rate now stands in the Federal system at about 98.5%. While it is slightly lower than that of Japan 99% or the Israeli military courts in the West Bank where the conviction rate is 99.74% for Palestinians as recently published by the Israeli newspaper Haaretz where there were 9,542 cases in 2010, including over 2,000 involving "hostile terror activity," these rates of conviction warn that government is out of control. Where the Israeli Military Court is ruthless with just 25 full acquittals, this thirst for blood today is far worse than the most notorious court of Adolf Hitler, to put this in perspective. Hitler established the People's Court (Volksgerichtshof) after the terrorist bombing of the German parliament building, the Reichstag just as the USA set up Homeland Security and fingerprints everyone just visiting the USA after 911.

Roland Freisler (1893–1945) was a prominent and notorious Nazi lawyer and judge. He was State Secretary of the Reich Ministry of Justice and President of the People's Court, which was set up outside constitutional authority. This court handled political actions against Hitler's dictatorial regime by conducting a series of show trials. The conviction rate was lower than most governments today with approximately 90% of all proceedings ending with sentences of death or life imprisonment. Between 1942 and 1945, more than 5,000 death sentences were handed out, and of these, some 2,600 through the court's First Senate, which Freisler headed.

In Russia under the Communists the conviction rate was 90%. It is clear that whenever the judges are appointed by government, the conviction rates rise. Thomas Jefferson was correct – no man can be trusted for life. The conviction rate in China is 98%. A judge and prosecutor are there to vindicate the government. When we consider these factors it becomes obvious that a fair trial is extremely hard to obtain and is impossible in the federal system. The overall national conviction rate including states is about 80% in the USA, but in the federal system it

We can see how this type of corruption can infiltrate the entire legal system that effect even the financial markets because this is corruption that is political in nature. We have reentered a period of legal corruption where they use the pretense of law to exploit the private wealth of citizens. It was Edward Gibbon who wrote in the Decline and Fall of the Roman Empire; “Suspicion was equivalent to proof; trial to condemnation. The execution of a considerable senator was attended with the death of all who might lament or revenge his fate; and when Commodus had once tasted human blood, he became incapable of pity or remorse.” (Vol I, Chapter IV, Part I). Today, if anyone is spared death or imprisonment in the USA, it is considered “liberal” and the federal judge is not respected. Any federal crime even so minor traffic offenses on federal property are always accompanied by imprisonment even if for just one week.

With the state of the law in America at this time, how is it possible to now trade in ANY “regulated” US market when there is no rule of law? The keepers of the law are now bought and paid for. Federal Courts are out of control and currently we are seeing the real mistake of allowing Congress to create courts ignoring the spirit of the US Constitution. It was to be liberty and justice for all that was supposed to be the top priority in creating the Federal Courts. The danger Congress created was the failure to separate equity and law. At the time 1789 in England, there were two courts, Chancery and Law (King’s Bench). Parliament wrote the LAWS and they were supposed to be enforced to the letter without discretion. If the strict imposition of the law was somehow unfair, then you could go to the Chancery for some relief. The Chancery Court had the power of discretion to make “equitable” decisions. Place both types of courts in the same judge has been a total disaster and this threatens the entire global economy as evidence by the MF Global debacle that is now calling into question the ability to even trade.

Under equity (chancery), the practice of using “discretion” has long been the doorway to abuse and corruption precisely as we have today running wild in federal courts. As long as it serves Government, the Senate Judiciary Committee will continue to allow the citizens to be abused to fill the coffers of Government. The MF Global debacle is an example where they will not clawback funds from banks, but are abusing the depositors instead. Charles Dickens wrote Bleak House in 1853 and in Chapter I he states clearly the same corruption we face again today.

“This is the Court of Chancery, which has its decaying houses and its blighted lands in every shire, which has its worn-out lunatic in every madhouse and its dead in every churchyard, which has its ruined suitor with his slipshod heels and threadbare dress borrowing and begging through the round of every man's acquaintance, which gives to monied might the means abundantly of wearying out the right, which so exhausts finances, patience, courage, hope, so overthrows the brain and breaks the heart, that there is not an honourable man among its practitioners who would not give—who does not often give—the warning, ‘Suffer any wrong that can be done you rather than come here!’"

Unfortunately, the Constitution did not expressly state that the power of “Law and Equity” shall reside in the separate courts. This has been our fatal mistake for it has allowed the same judge to use equity “discretion” to ignore the “law” and that destroys our democratic system where the PEOPLE were to make laws, not kings. But when “discretion” is used by judges, they are making law eliminating the

PEOPLE and converting the USA into a Judicial Dictatorship. Constitutionally, Congress NEVER had such power to create a new combined court. Sir William Blackstone (1723-1780) makes that clear “For though the king might erect new courts, yet he could not alter the course of law…” (Commentaries Book III, Chapter 6, p84). Combining both in the same court destroyed law and created a hybrid court that not even the king could have done, no less Congress, but what court would now agree?

“The judicial Power shall extend to all Cases, in Law and Equity, arising under this Constitution, the Laws of the United States, and Treaties made, or which shall be made, under their Authority” Article III, Section 2 did not authorize hybrid courts

This “discretion” is why MF Global customers are getting cheated! The rights, privileges, and immunities of ALL those customers who simply had an account at MF Global are about to get really screwed by the presiding Judge Martin Glenn creating whatever it is that he thinks is fair (discretion), not what the law says since he presides in equity (chancery). In the United States, Congress vested both LAW and EQUITY in the same courts. This has undermined everything. That means that Congress can pass a law, and the judges do not have to obey the law at all calling it their right of “equity” to determine if it is what they would write. In MORRISON v. NATIONAL AUSTRALIA BANK LTD., 558 US – (6/24/2010) the Supreme Court overruled ALL securities law of the New York Second Circuit because they were applying the law based upon what they think Congress would like them to do. They have been creating “judicial law” in securities since the beginning. This is so anti-Constitution and against the principles of any “democracy” because it eliminates the people entirely. This becomes a judicial dictatorship no different than Gaddafi.

There is no actual law authorizing a “clawback” but the NY court will create whatever it wants. The New York Bankruptcy Judge is Martin Glenn who was the very lawyer for the Receiver in the case of Princeton Economics who defended Republish National Bank and HSBC. In this case, it was Glenn who argued for the right of judges to imprison anyone for life until death without lawyers or trial by jury. The New York Law Journal on January 7, 2002 reported that Martin Glenn argued for the contempt and reported it was starting to “resemble a merry-go-round that never stops.”

When I offered evidence that Republic had stolen the money using it for its own trading the SAME as MF Global, Glenn and his team replied that they “believed” Republic’s story and refused to allow ANY suit against Republic. They were clearly trying to take everything for the banks and to cheat the Japanese. I then had to do interviews with the Japanese press to tell the Japanese that Republic took the funds and they should file suit in New York. Had they NOT filed in New York, Martin Glenn as the lawyer for the receiver would have protected Republic National Bank to the death and aided them is keeping over $1 billion dollars, which seems to be going on with MF Global. If I was guilty, Republic kept the money. That is what he was insisting.

This time, instead of being the lawyer defending the banks, Martin Glenn is now the judge presiding over MF Global! Do you really think he will defend the clients or the NY banking community? In another case his law clerk even wrote part of the brief of an adversary before Judge Glenn. He was asked to recuse himself and refused, since judges can violate every sense of decency, morality, and sit in judgment over themselves. If they were truly unbiased, then hand the case to someone else. They refuse to recuse themselves because they want the case which confirms the bias in a self-fulfilling prophecy. This is far too corrupt.

Actually it is two writings piggybacked. If you don't want to know, don't read it but don't complain you weren't warned of a pending disaster when you get sideswiped like MS Global clients...or worse.

The .pdf link is easier on the eyes to read and has a few pics. I suggest you read the second part at the .pdf link. 18 .pdf pages all together.

Kerry Lutz posted a very interesting, current as of today, interview with Martin Armstrong on face book. It's about 20 minutes long and worthwhile. For whatever reason it was not deemed a "Triple Lutz Report" ??

I read Martin Armstrong's bio on wikipedia, and realized he's my kind of guy. Legit, smart, and has put his behind on the line for what he believes as true

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