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Posted on 05/04/2011 12:06:24 PM PDT by MestaMachine
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To start off this new thread, it has been brought to my attention that FReeper, Dengar1, has spotted "suspicious" and unusual muslim activity in his suburban Chicago neighborhood and reports that this activity is happening in another nearby community as well.Suspicious Activity amongst the Islamic Community in Chicago (Since OBL Dead)
Dengar1 has been a FReeper in good standing for over ten years, so when he says something, you can probably take it to the bank.
In the wake of what is claimed to be the death of osama bin laden, the likelihood of more terrorism around the world has inceased dramatically, The indications I have been seeing and hearing about are that the muslim groups, big and small, have increased their focus on the United States even more dramatically.
There have been general threats issued and that was to be expected. But if the unsettled chatter on the jihad boards is any indication, there is widespread shock and a lot of disbelief in the "official" story obama and members of his administration have released to the public, especially when the "facts" have changed substantially since obama's self-serving speech on Sunday night.
obama is using this as a political tool for his own ends as was very noticable in the stump speech he gave as a "formal announcement," and his subsequent plans to go to Ground Zero and hype himself even more, which I believe is an absolute disgrace from an American point of view.
His Sunday night announcement was delayed nearly an hour to give a flash mob of mostly local college students time to gather in front of the White House and was then broadcast worldwide. It was NOT a spontaneous demonstration of celebration. It was a cynical political ploy orchestrated by the administration and most of those who gathered there were young children on 9/11.
Nevertheless, political or not, these images went out over the airwaves, and while the occasion is indeed worth celebrating, there should have been a period of fact gathering and time for some somber and SOBER reflection before presenting the entire world with a set of unverified and erroneous "facts" coupled with what appeared to be a celebration of bin laden's death when in reality, it was a celebration of obama. The muslims worldwide do not know or care about the difference.
So WHY did he do it the way he did?
As is his wont, he has taken all he credit unto himself, patting himself on the back as if he had planned and executed this operation with no input or help from anybody....for US. THAT is what WE heard. Yet the story was not anything like his big announcment complete with flowery and altogether sickening prose, (which is reminiscent of any muslim pronouncement,) and in fact, is still changing as it becomes clear that most of the people in that compound were women and young children. There were no guards and no human shields as was initially claimed.
There was no major firefight, and indeed, we are now being told that no shots were fired at arriving Americans at all. bin laden's twelve year old daughter states that her father was already captured when he was shot. Whether that is true or not, the muslims will believe it.
WE have no proof that bin laden was even there and the "proof" they claim to have, they won't release for fear of offending muslim "sensibilities"? After broadcasting obama's speech worldwide? After the images of a "euphoric celebration" was broadcast at the same time? After not worrying about offending muslim "sensibilities" as long as obama was being covered on international television?
May I remind this POS that sits at the helm of OUR ship of state that the muslims did not give one good damn about OUR sensibilities when they filmed and released Daniel Pearl's beheading? Or Nick Berg's beheading. Or the bodies of American contractors being mutilated and burned and hung from a bridge in Iraq. And so many other atrocities too numerous to mention.
I WANT that image. I don't care how gruesome they say it is. And if they DON'T release it, the muslims who believe bin laden is dead will STILL seek vengeance, and those who DON'T believe it will feel even more passion to strike because the koran ORDERS them to if their heroes are lied about. Furthermore, obama KNOWS this full well, and the story he told on Sunday night was deliberately DESIGNED to enflame the muslims even more than it was designed to give US any satisfaction whatsoever. It was designed to advance the notion that bin laden AND his faithful wife died as martyred heroes... and that was a flat out lie. The entire premise for obama's speech Sunday night was for muslim ears and eyes, NOT ours. THAT is the muslim way...and obama KNOWS the muslim way.
So Dengar1's experience will be played out in many place across this country, not just in the suburbs of Chicago. If ANYONE on Free Republic has any similar experiene, or if you see somethingthat bothers you enough to set off your gut alarm, do not hesitate to call the FBI and your Local and State Police. Do NOT confuse yourself by second guessing yourself. Just DO it. If you are wrong, there is no harm done, but if you are RIGHT, you might wll save lives. PLEASE BE VIGILANT. I cannot possibly overstate the imminent danger this POS has put us in with the speech he broacast to the world on Sunday night. And now he goes to TARGET Ground Zero.
Can you imagine the impact on muslim "sensibilities" at seeing George Bush CELEBRATING bin laden's death at Ground zero? Do you think obama invited him because he feels so magnanimus towards Bush? OR Giuliani? Bush had the good sense to decline. I don't know if Giuliani will allow himself to be used in this way.
I reiterate. IF YOU SEE SOMETHING...ANYTHING, MAKE THE CALL! AMERICAN LIVES MAY DEPEND ON IT!
http://www.freerepublic.com/focus/f-news/2817747/posts
Lawyer: Man to plead guilty in Seattle terror plot (”Religion of Peace” Alert)
mynorthwest.com ^ | Dec. 7, 2011 | unknown
Posted on Thursday, December 08, 2011 11:21:26 AM by matt1234
One of two men charged with planning to attack a Seattle military recruiting station last summer has agreed to plead guilty, his lawyer said Wednesday.
Michele Shaw, an attorney for Walli Mujahidh, confirmed to The Associated Press that he will plead guilty to multiple charges in federal court Thursday, after the change-of-plea hearing was posted in the court calendar. She declined to comment further.
The 32-year-old from Los Angeles was arrested in June along with Khalid Abdul-Latif of Seattle in an FBI sting. Federal prosecutors said the men were taken into custody when they arrived at a warehouse garage to pick up machine guns to use in the attack.
Adding this to my original posts on the financial meltdown...because it is repeating.
http://www.rushlimbaugh.com/daily/2011/12/06/clinton_cashed_in_on_corzine_scam
What did MF Global...? I get so distracted by the MF, I gotta be real careful. MF Global, the reason they went belly up is that Corzine invested, he shorted — no, he went long, I think — on European bonds. Yeah, with investors money, and no collateral to back it up, and the New York post says that Corzine did get this kind of advice on European financial investments from Clinton’s group. So Corzine, in addition to commingling clients’ money, out of that client money gave him 50 grand a month and Clinton’s firm is advising him to do exactly what he did which led to the bankruptcy, and now everybody on Clinton’s is saying (impression), “Hey, hey, hey, you know, it wasn’t me! Jon was just — he just — he just looked for some help out there we’re doing whatever we can.”
It’s incestuous. These people pass other people’s money around for fake services — PR, financial advice, whatever — from their stashes, gotten through taxes or fake financial companies. “Another MF employee told the New York Post that the outfit, Clinton’s bunch originally wanted $200,000 a month for its work but that was too steep a price for MF decision-makers so Clinton’s outfit served as a personal PR firm and political consultant for then MF Global CEO Corzine, the former governor and senator from New Jersey. Also offered advice,” as I just recently mentioned, “on European financial investments like the ones that ultimately led to their collapse. “In October...”
Also:
CNBC: Soros Bought $2 Billion Ex-MF Global Europe Debt: Report
http://www.freerepublic.com/focus/f-bloggers/2818508/posts
Trading With Other People’s Money Why MF Global is worse than Europe
Armstrong Economics ^ | December 7, 2011 | Martin Armstrong
Posted on Friday, December 09, 2011 10:47:20 PM by Razzz42
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
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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.
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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.
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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
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jumps to 98.5%.
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
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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.
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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.
Meanwhile. back to Iran.
http://www.freerepublic.com/focus/f-news/2818540/posts
Breaking: We were right, Obama GAVE Iran the Drone!
Con Underground ^ | 12/10/2011
Posted on Saturday, December 10, 2011 1:24:21 AM by Just4Him
A couple of days ago Conunderground.com was the first to point out that the circumstances surrounding the “crash” of the top secret RQ170 Sentinel drone simply didn’t add up. And we were tight! The story continues to develop and it doesn’t look good!
To recap, first we were told that Iran might’ve shot it down and then the story changed to “the drone crashed on Iranian soil ”
After realizing that the Iranians were about to parade a perfectly functional drone with nary a scratch on it, the official story changed to “the drone landed because it wants to live” I kid you not that is the official story!
The flack we caught for running the story was typical of the the kind of BS spewed by Obama’s supporters but none the less I didn’t withdraw the story because the official version simply didn’t add up.
The immediate and obvious questions were these: 1) Why didn’t we try to recover the drone? 2) In lieu of a rescue effort why didn’t we bomb it into oblivion? Apparently there was third option and Onama struk that down also.
THE ANSWERS WILL SHOCK YOU – or maybe not. Fox News National Security Correspondent Jennifer Griffin reported that apparently the Pentagon pleaded with Barrack Hussein Obama to give the order to do just that. The Pentagon initially wanted to send a special forces team to recover the drone. Obama shot down that suggestion. Then the Pentagon offered up plan B , blow it to kingdom come. Obama refused that too and now Iran and China have a brand spanking new fully functional top secret US RQ 170 Sentinel Drone.
The Drone was not recovered or destroyed specifically per Obama’s orders
Personal comment:
The powers that be have looted the world and are in the midst of pushing the world into a global war in which not millions, but BILLIONS will die.
The game they are playing is much bigger and much deadlier than anything we have ever faced before...and I am afraid that there is simply no way to stop it.
I have not pinged you guys for a long time, but I think we have reached the point of no return and vigilance is definitely needed here. We are being pushed into a war that will devastate the planet. There will be no corner left untouched. Call it Armageddon. Call it whatever you want. It’s coming fast.
Whatever you can add here, or whatever you think; whatever intuitive insights you might have, would be greatly appreciated.
http://www.freerepublic.com/focus/f-news/2818536/posts
MF Global Collapse May Have “Apocalyptic” Consequences For The Eurozone
http://www.zerohedge.com ^ | December 07 2011 | Tyler Durden
Posted on Saturday, December 10, 2011 12:58:44 AM by Para-Ord.45
Why The UK Trail Of The MF Global Collapse May Have “Apocalyptic” Consequences For The Eurozone, Canadian Banks, Jefferies And Everyone Else
In an oddly prescient turn of events, yesterday we penned a post titled “Has The Imploding European Shadow Banking System Forced The Bundesbank To Prepare For Plan B?” in which we explained how it was not only the repo market, but the far broader and massively unregulated shadow banking system in Europe that was becoming thoroughly unhinged, and was manifesting itself in a complete “lock up in interbank liquidity” and which, we speculated, is pressuring the Bundesbank, which is well aware of what is going on behind the scenes, to slowly back away from what will soon be an “apocalyptic” event (not our words... read on). Why was this prescient? Because today, Reuters’ Christopher Elias has written the logical follow up analysis to our post, in which he explains in layman’s terms not only how but why the lock up has occurred and will get far more acute, but also why the MF Global bankruptcy, much more than merely a one-off instance of “repo-to-maturity” of sovereign bonds gone horribly wrong is a symptom of two things: i) the lax London-based unregulated and unsupervised system which has allowed such unprecedented, leveraged monsters as AIG, Lehman and now as it turns out MF Global, to flourish until they end up imploding and threatening the world’s entire financial system, and ii) an implicit construct embedded within the shadow banking model which permitted the heaping of leverage upon leverage upon leverage, probably more so than any structured finance product in the past (up to and including synthetic CDO cubeds), and certainly on par with the AIG cataclysm which saw $2.7 trillion of CDS notional sold with virtually zero margin. Simply said: when one truly digs in, MF Global exposes the 2011 equivalent of the 2008 AIG: virtually unlimited leverage via the shadow banking system, in which there are practically no hard assets backing the infinite layers of debt created above, and which when finally unwound, will create a cataclysmic collapse of all financial institutions, where every bank is daisy-chained to each other courtesy of multiple layers of “hypothecation, and re-hypothecation.” In fact, it is a link so sinister it touches every corner of modern finance up to and including such supposedly “stable” institutions as Jefferies, which as it turns out has spent weeks defending itself, however against all the wrong things, and Canadian banks, which as it also turns out, defended themselves against Zero Hedge allegations they may well be the next shoes to drop, as being strong and vibrant (and in fact just announced soaring profits and bonuses), yet which have all the same if not far greater risk factors as MF Global. Yet nobody has called them out on it. Until now.
As Reuters points out, it was not so much the act of creating “repos-to-maturity” that imperiled MF Global, but what is a secret gold mine for those privy to it - the process of re-hypothecation of collateral.
[h]ypothecation is when a borrower pledges collateral to secure a debt. The borrower retains ownership of the collateral but is “hypothetically” controlled by the creditor, who has a right to seize possession if the borrower defaults.
In the U.S., this legal right takes the form of a lien and in the UK generally in the form of a legal charge. A simple example of a hypothecation is a mortgage, in which a borrower legally owns the home, but the bank holds a right to take possession of the property if the borrower should default.
In investment banking, assets deposited with a broker will be hypothecated such that a broker may sell securities if an investor fails to keep up credit payments or if the securities drop in value and the investor fails to respond to a margin call (a request for more capital).
Re-hypothecation occurs when a bank or broker re-uses collateral posted by clients, such as hedge funds, to back the broker’s own trades and borrowings. The practice of re-hypothecation runs into the trillions of dollars and is perfectly legal. It is justified by brokers on the basis that it is a capital efficient way of financing their operations much to the chagrin of hedge funds.
Under the U.S. Federal Reserve Board’s Regulation T and SEC Rule 15c3-3, a prime broker may re-hypothecate assets to the value of 140% of the client’s liability to the prime broker. For example, assume a customer has deposited $500 in securities and has a debt deficit of $200, resulting in net equity of $300. The broker-dealer can re-hypothecate up to $280 (140 per cent. x $200) of these assets.
But in the UK, there is absolutely no statutory limit on the amount that can be re-hypothecated.
In fact, by 2007, re-hypothecation had grown so large that it accounted for half of the activity of the shadow banking system. Prior to Lehman Brothers collapse, the International Monetary Fund (IMF) calculated that U.S. banks were receiving $4 trillion worth of funding by re-hypothecation, much of which was sourced from the UK. With assets being re-hypothecated many times over (known as “churn”), the original collateral being used may have been as little as $1 trillion – a quarter of the financial footprint created through re-hypothecation.
Keen to get in on the action, U.S. prime brokers have been making judicious use of European subsidiaries. Because re-hypothecation is so profitable for prime brokers, many prime brokerage agreements provide for a U.S. client’s assets to be transferred to the prime broker’s UK subsidiary to circumvent U.S. rehypothecation rules.
Under subtle brokerage contractual provisions, U.S. investors can find that their assets vanish from the U.S. and appear instead in the UK, despite contact with an ostensibly American organisation.
Potentially as simple as having MF Global UK Limited, an English subsidiary, enter into a prime brokerage agreement with a customer, a U.S. based prime broker can immediately take advantage of the UK’s unrestricted re-hypothecation rules.
This is exactly what Lehman Brothers did through Lehman Brothers International (Europe) (LBIE), an English subsidiary to which most U.S. hedge fund assets were transferred. Once transferred to the UK based company, assets were re-hypothecated many times over, meaning that when the debt carousel stopped, and Lehman Brothers collapsed, many U.S. funds found that their assets had simply vanished.
A prime broker need not even require that an investor (eg hedge fund) sign all agreements with a European subsidiary to take advantage of the loophole. In fact, in Lehman’s case many funds signed a prime brokerage agreement with Lehman Brothers Inc (a U.S. company) but margin-lending agreements and securities-lending agreements with LBIE in the UK (normally conducted under a Global Master Securities Lending Agreement).
These agreements permitted Lehman to transfer client assets between various affiliates without the fund’s express consent, despite the fact that the main agreement had been under U.S. law. As a result of these peripheral agreements, all or most of its clients’ assets found their way down to LBIE.
And now we get back to the topic at hand: MF Global, why and how it did precisely what Lehman did back then, why it did this in London, and why its failure is a symptom of something far more terrifying than merely investing money in collapsing PIIGS bonds.
( EXCERPT)
Crossposted from thee Drone thread.
http://www.freerepublic.com/focus/news/2818540/posts?page=53#53
Shortly after this story broke, I came up with this theory and developments only tend to support it.
Ever since Obama was immaculated, he has been putting his “Devout Muslim” Brothers in top, high security positions in nearly (if not every) government agency. No doubt they have the highest security clearances and access to ALL of our defense and security intel.
Those 12 CIA informants who Iran caught and executed not long ago were probably ratted out by one of Obama’s Islamic quislings in the CIA, FBI or wherever they had access to the names and contact information for those doomed informants. Locals will now think twice before they cooperate with our CIA again, no matter what they are offered.
My theory is that one of these Islamic plants gave their “brothers” in Iran the encryption codes for the remote control and probably even the set up for the control console and frequencies used. Probably access codes to the satilite repeaters and everything else they needed to electronically hijack this drone and bring it in for a landing right where they probably wanted it.
They have probably had this technology for some time now but were waiting for one of our more sophisticated drones to wander into their trap to use it.
Sure; the drone got “hacked”... but the hackers had a lot of help from inside our side.
Up until now these drones have been pretty effective, but don’t be surprised if all of a sudden Muchmett knows exactly when they are coming and where they are at all times, and can take them over and turn them against US any time they want to.
A few drone launched hellfire missiles taking out OUR high value leadership assets is going to be awfully embarassing and a major propaganda coup for the Muchmetts... but I fully expect it to start happening any day now - possibly in some rather surprising places... like L.A. or Detroit... or Washington DC for instance.
When it happens, don’t be surprised if you hear “Allahu Achbaw” ringing through the halls of our Pentagon. Or rather, it WAS our Pentagon, until it was sold out from under us.
When you give the enemy top security clearances and the keys to said Pentagon, what do you expect?
....especially when our enemy’s best friend is in our White House directing the whole show and the American people and military are too stupid, afraid, and/or lazy to do anything about it.
53 posted on Saturday, December 10, 2011 2:51:21 AM by George Varnum (Liberty, like our Forefather’s Flintlock Musket, must be kept clean, oiled, and READY!)
It’s getting hot.
http://www.freerepublic.com/focus/f-bloggers/2818554/posts
Hollywood Jihad: Shootout, Gunman Calmly Targeted Drivers and People While Shouting Allahu Akbar
Atlas Shrugs ^ | Pamela Geller
Posted on Saturday, December 10, 2011 5:23:15 AM by DetroitRight
What is most disturbing about this story, apart from the obvious horror, is that not one news account reported what one witness said the shooter was screaming: “allahu akbar.” Not one news account. The media is the enemy.
Check out the video here. One of the witness states that the shooter was repeatedly shouting “allahu akbar” at minute 2:42. This video is on the bottom right of the LA Times new story, but they don’t mention it in their coverage — neither does Reuters, CBS news, The Hollywood Reporter, KFAI, or any of the other news reports. I expect that this video will be removed or edited.
(Excerpt) Read more at
http://atlasshrugs2000.typepad.com
This drone business should remove any lingering questions from even the most liberal leftist as which side Hussein is playing on. Our enemies have been operating within our country for years and we’ve done nothing but given them the highest of powers. We may already be past Wolverine time. At one time I’d hoped that Russia would have sided with us against China and the ME but not now. Now, all eyes and all WMD will be aimed at us and then they’ll turn on each other until there’s nothing left. Yes, it’s coming very, very fast.
Thanks for the ping.
Indeed, anything that reelects 0b0z0 WITHOUT an election will be the Marxist’s choice. CW II, WW III or a combination would be just what’s needed!
The coward is ruled by Communists and Iranian Islamofascists!
Important ping to MestaMachine's comment... "The Drone was not recovered or destroyed specifically per Obama’s orders.."
Important ping to MestaMachine's comment... REPLY #345... The Drone was not recovered or destroyed specifically per Obama’s orders
More dot connecting. Imagine the consequences.
http://www.freerepublic.com/focus/f-news/2818603/posts
“The Obama administration has pushed LightSquared as a provider for its ambitious broadband expansion over the objections of the military, which warned that LightSquared’s operations would interfere with the satellite-based navigational system. The draft summary of the November testing shows that the military was right to be concerned: Philip Falcone’s proposed LightSquared Inc. wireless service caused interference to 75 percent of global-positioning system receivers... Why is this important? Philip Falcone is a big donor to the Democratic Party, and he has billions of dollars at stake in LightSquared’s approval. Also, Obama himself was an investor in LightSquared at one point, as were or are a number of his associates”
I'll bet the New York Times misses this one... and all the crony connections.
The Threat Matrix is back with a vengeance!
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