RED ALERT: It's Open Season on All Customer Funds - Ann Barnhardt

Barnhardt.biz ^ | August 10, 2012 | Ann Barnhardt

[E. Pluribus Unum]

RED ALERT: It's Open Season on All Customer Funds

Posted by Ann Barnhardt - August 10, AD 2012 3:33 PM MST

The NFA in collusion with the banksters, government and judiciary have achieved their goal. The entire concept of "customer segregated funds" is officially, completely, legally dead.

Guys, it is OVER. I know that many of you are still cowering in normalcy bias, unable to deal with reality, unable to face the world as it is, but you have GOT to snap out of it. The marketplace is DESTROYED. You CANNOT be in these markets. All legal protections are now officially gone.

Do you remember how I told you about the Ponzi scheme that imploded in 2007 called "Sentinel Management Group" that stole over $500 million in customer funds? The NFA was the auditing regulator of Sentinel, and the NFA admitted after the Sentinel Ponzi imploded that they signed off on their audits even though the NFA claimed not fully understanding Sentinel's books or accounting methods. In other words, the NFA didn't really audit Sentinel at all - they just PRETENDED to audit them, drew up some forms, had some robosigners sign off, and then just hoped that when the shit hit the fan, everyone in the industry would be so terrified of the NFA that no one would hold the NFA accountable for their criminal malfeasance - or even talk about it.

Sentinel took customer segregated money and fraudulently used it as the collateral on a loan from Bank of New York Mellon for $312 million to fund their own in-house proprietary trading operations. When the Sentinel Ponzi collapsed, BNYM sued to go to the front of the line of creditors - ahead of the customers of Sentinel whose money was fraudulently used as collateral, which has now been "linguistically sanitized" into the word "hypothecated".

The federal appeals court ruled yesterday that not only does BNYM stay at the front of the line, but that using customer segregated funds as collateral is NOT a crime, and that co-mingling customer segregated funds with proprietary funds is NOT fraud.

Here is the Reuters piece.

Read this quote from the ruling, which is, in essence, the entire financial market paradigm being guillotined:

That Sentinel failed to keep client funds properly segregated is not, on its own, sufficient to rule as a matter of law that Sentinel acted ‘with actual intent to hinder, delay, or defraud' its customers.

U.S. Circuit Judge John D. Tinder

What this means is that even if Jon Corzine is somehow dragged into court by private citizens, because you know damn good and well that the Justice Department will never, ever touch him, Corzine now has a legal precedent, likely from a bribed or otherwise coerced Federal Appeals Court, explicitly stating that an FCM can use customer deposits to pay its debts, and that the customers themselves are subjugated and have basically no legal right to their own monies, no matter what the law says, or what legal assurances, claims or guarantees are made to that customer about their funds held with an FCM or any other brokerage or depository institution. The "secured" party at the front of the line will always be the mega-bank who made the fraudulent loan using the stolen customer funds as collateral.

In other words, all customer funds in the United States are now the legal property of JP Morgan, Goldman Sachs, BNYM, or whichever megabank is the counterparty on the loans the FCM or depository institution takes out in order to fund its mega-levered proprietary in-house trading desks.

For the love of God, I don't know what more there could possibly be to say to snap you people out of your normalcy bias trance. You have GOT to get ALL MONIES out of the financial system NOW. This ruling sets precedence for every depository institution, not just futures brokerages. It is now legal in the United States for any financial institution to steal customer funds, borrow money against those funds for the uber-levered proprietary trading use of the financial institution, and the customers have ZERO CLAIM TO THEIR OWN FUNDS once they are in the custody of the financial institution.

The court has ruled that once your money passes out of your PHYSICAL POSSESSION, and I mean PHYSICAL possession, it is no longer yours, and you have no legal claim or legal recourse to it when it is stolen. This includes BANK ACCOUNTS. Money in a bank is in the possession of the BANK, not you. Do you comprehend this? The entire system is utterly devoid of any integrity or genuine security and is breaking down catastophically before our very eyes. You HAVE to comprehend that your money sitting in an account is no longer legally yours. You have to force your brain to process and comprehend this, no matter how incomprehensible it may seem. IT IS OVER. This is Marxist hell. We have arrived.

This ruling and precedent will be used by every brokerage, every bank, every insurance company and every pension fund to deny you your money when the financial system finally collapses, be it on Monday, or be it two years from now.

DO YOU UNDERSTAND?

You have GOT to GET OUT.

And all of this goes straight back to the criminal mafia that is the National Futures Association, and the fact that they have not actually been auditing those firms who were in the "cosa nostra", and allowing Ponzi schemes to operate with full bureaucratic protection for decades. Sentinel. PFG Best. The legal precedent enabling this protection racket and blatant fraud and thievery is fully in force, and what Corzine did at MF Global is now legally PROTECTED.

This is ecomonic treason.

Treason is a capital offense, meaning that the death penalty is fully justified, warranted and on the table, should the day ever come when a Second American Republic is established, and with it the re-establishment of the rule of law and justice in this land.

UPDATE: Yes, the South Park "And . . . It's Gone" clip is now 100% factual. Here it is. It is clean. No dirty language, just the cold, hard reality of our dead civilization.

[E. Pluribus Unum]

I actually emailed her last week asking her what to do. She responded and told me to do exactly what she says in this article a couple of days later. I think she wrote the article in response to my question. Or maybe in response to a thousand similar questions.

I am thinking about doing what she says. It's hard.

[freedumb2003]

>>Wouldn’t I take a major hit cashing out my 401k??<<

A catastrophic hit.

>>I am lost. <<

Unless and until you join the ranks of people who are spending real money and time making shelters, buying ammo and food for 10 years to be ready for “after society collapses” there is no reason to be lost. Do market research, hedge your bets with precious metals if you are really nervous. Don’t panic and you will be OK.

>>And I trust Ann.<<

Bad idea.

[freedumb2003]

>>Like the GM bondholders?<<

If you are not an institutional investor you should always hew to one word: diversification.

[Texas Fossil]

AND Obozo appointed the past President of the “New School” as the head of the Export/Import Bank. You remember, the one that loaned Billions of dollars to finance an offshore drilling project for the Leftist Government of Brazil.

[TheWriterTX]

The FDIC's own annual reports show that they were broke as a joke for 2009 and 2010. They are only showing a profit now because the Treasury snapped up a bunch of their bad debt in the form of a bond swap.

They slushed over 300 failed backs through the system.

See my tag-line. Any who suggests we aren't in a long-wave contraction is an idiot.

[E. Pluribus Unum]

If you are not an institutional investor you should always hew to one word: diversification.

Exactly how does "diversification" protect you from a criminal government that disregards laws that are supposed to prevent it from stealing?

[kevao]

So where are you keeping all your cash? The mattress?

[ConservativeMind]

The FDIC has had just enough to cover everything, but had to get banks to prepay premiums several years in advance.

Consequently, the FDIC can still say it has always been independently funded, all the way back to its founding.

[KingKongCobra]

“Exactly how does “diversification” protect you from a criminal government that disregards laws that are supposed to prevent it from stealing? “

On the bright side - If enough of you “Heaven’s Gaters” give the government half of your money, maybe they won’t take mine before I’m done with it. Yea me.

[ConservativeMind]

Not at all. The FDIC had banks prepay several years of premiums and worked out different arrangements for dealing with bad assets with individual buyers.

When multiple years of payments come in early, it makes a HUGE difference. The FDIC is doing well now and building back reserves.

[ConservativeMind]

The FDIC has only ever gotten money from banks—it has never been funded by the FED or the government. Show us otherwise.

Also, and this is a technicality, only the Treasury “prints up dollars.”. Unfortunately, the FED can water the value of those dollars down through monetary policy moves.

[Texas Fossil]

From further down the page on the link:

5. Musical interlude. Can we put this in the running for the national anthem of the Second American Republic?

http://www.youtube.com/watch?v=CjbO9pL-2UY&feature=player_embedded

Alison Krauss & Union Station, Dan Tyminski on lead vocals singing “Bright Sunny South”.

In my bag there's a Bible to show me the way
Through my trials here on earth and to heaven someday
I will shoulder my musket and brandish my sword
In defense of this land and the Word of the Lord

5. Musical interlude. Can we put this in the running for the national anthem of the Second American Republic?

Alison Krauss & Union Station, Dan Tyminski on lead vocals singing “Bright Sunny South”.

In my bag there's a Bible to show me the way
Through my trials here on earth and to heaven someday
I will shoulder my musket and brandish my sword
In defense of this land and the Word of the Lord

[Ladysmith]

mark

[Kartographer]

Do you believe that the FDIC has the money on hand to cover the coming collapse? Do you even believe that they have the money on hand to cover even one of the Mega Banks collapsing?

[Kartographer]

Sometimes I have to wonder if those that seem to be doing their best to nay say the blatant thievery aren’t in on it.

[ConservativeMind]

I will grant Dodd-Frank one thing: living wills for large banks. That process should be pretty effective in stopping the “too big to fail” crud that I was against from the very beginning.

I still can’t believe virtually every Republican voted otherwise for TARP and the rest.

[ConservativeMind]

Are you implying that of me? If so, you are seriously mistaken.

[houeto]

Keep your money where it is.

Too late. I already yanked. I gambled $1 million dollars. If I lose, then all you folks win. If I win, (and I pray that I don't) then...

FMCDH(BITS)

FReegards

[houeto]

On the bright side - If enough of you “Heaven’s Gaters” give the government half of your money, maybe they won’t take mine before I’m done with it. Yea me.

Heaven's Gaters? Hardly. My decision was not made in a panic. Thanks for the slam though. I did my part.

You're welcome.

[TheWriterTX]

Dear CM:

I'm going to respectfully disagree, in part. Their reserve funds were depleted due to the substantial number of banks that failed. Page 118 of the 2009 Annual Report clearly states that they had a reserve balance of -$20.9 Billion.

That's broke as a joke.

You are correct that they did a 3-year pre-pay to rebuild the fund after the wipe out of 2008/2009, and rolling partially into 2010; however, they also substantially increased their holdings of Treasury notes.

Let's be honest, though. It's all turned into monopoly money at this point. The only thing keeping this sinking ship afloat is the universal game of "pretend" taking place across the globe.