WHITE COLLAR CRIME AND THE ONGOING ECONOMIC DEPRESSION

gold-eagle.com ^ | 7/11/02 | Frank Smith

[christine]

The question is as obvious as a thousand foot tall pregnant gorilla at a championship chess match. Yet, no one has asked THE question. The silence is deafening. The silence is absolute because answering the pregnant gorilla question truthfully, gives birth to the realities of institutionalized white collar crime in our stock markets, corporate America, Wall Street and in the highest levels of government and banking. Establishment criminology defines government white collar crime as "illegal and socially injurious cooperation between governments and corporate institutions..." (White Collar Crime- http://faculty.newc.edu/toconnor/392/spy/whitecollarcrime.htm) Widespread, systemic and long standing government white collar 'pump and dump' stock market crime is precisely what unravels from a truthful answer to the pregnant gorilla question.

Sheeple, sheeple; gather around and listen, for this one is for you!

THE PREGNANT GORILLA QUESTION

QUESTION: Why, why, why, did corporate America and Wall Street resort to creative, deceptive and fraudulent business accounting and financial reporting practices in the mid and late l990s in order to create the illusion of phony corporate profits?

ANSWER: With the hindsight of Enron, Global Crossing, WorldCom, etc., it is becoming increasingly conclusive that Corporate America and Wall Street resorted to deceptive and WHITE COLLAR CRIMINAL financial reporting practices creating phony corporate profits because much of corporate America could no longer earn its traditional real business profits due to an ongoing business and economic depression!

THE PREGNANT GORILLA

The 'Pregnant Gorilla' is a business and economic depression that descended on the United States during the mid and late 1990s. Major accounting problems involving profits at WorldCom dated at least as far back as 1996. And four years ago in June, 1998, Frank A. J. Veneroso wrote about the economic and corporate problems already created by the 'strong dollar policy". (www.gold-eagle.com/gold_digest_98/veneroso062498.html) Burdened with both debt and a political 'strong dollar policy', increasingly United States corporations could no longer make their historical real profits and corporate America slid into an economic depression. The essence of an economic or business depression is when many longstanding business operating profits become horrendous operating losses. As we now learn, week by week, that is what certainly happened to an increasingly significant portion of corporate America during the mid and late 1990s. THE 'SMOKING GUN' PROOF OF A REAL ECONOMIC DEPRESSION IS IN THE SECRET TRUTHFUL FINANCIAL STATEMENTS OF CORPPORATE AMERICA.

THE PREGNANT GORILLA GIVES BIRTH TO OFFSPRING

Business and economic depressions give birth to many very unpleasant characteristics that are the unavoidable consequences and 'offspring' of substantial business operating losses and bankruptcies. As many business profits publicly turn to losses, unemployment rises. Business financial statements publicly disclose the corporate financial losses. Bankruptcies, repossessions and foreclosures rise. Wall Street 'experts' inform the public of the financial problems of each corporation. With the reduction of constant dollar tax revenues and the increase in expenses, governments are thrown into budget deficits. Many sectors of the stock markets crash. The news media routinely features new bankruptcies and stunning new corporate operating losses. Consumer confidence is shaken and consumer spending contracts. Loan defaults increase. Many banks become financially stressed. Homelessness increases. Senate and Congressional oversight committees disclose wrongdoing that was driven by corporate financial desperation or corporate greed.

THE POLITICAL DILEMMA

In the 1990s, it was either truthfully acknowledge an economic depression with honest accounting; or, knowingly, deliberately, willfully and criminally create phony accounting corporate 'profits' en masse in order to conceal from the American people the reality of a business and economic depression. It was a political dilemma criminally resolved by a political decision of the Clinton Presidency. The same political dilemma faced a newly inaugerated President Bush. His presidency chose to continue the Clinton deception of a 'strong economy'. All the while, the private Federal Reserve Bank maintained a policy that accommodated the increase of financially unsound debt necessary in order to maintain the prosperity illusion by criminally manipulating and price fixing financial markets. The administration and Congress criminally manipulated federal budget accounting with "off budget" expenses. The public was deceived with criminally falsified economic data. The consequences of the Clinton/Bush/Greenspan political decisions in favor of willfully and systematically criminally deceiving the American people in economic data reporting and in criminal federal budget reporting, is now corporation by corporation belatedly becoming public knowledge.

[Pylot]

To call the 90's an era of depression is a rather fanciful statement.

To properly state that excessive valuations and a drive for excessive profits caused criminal behavior might be more accurate.

[Brownie74]

I just saw on our local news at noon that the market is down about 150 points. I believe it was down more than 200 point before it rebounded a little.

We are going down the tubes in a hurry. As one poster mentioned - we are importing hi-tech workers while illegal immigration runs rampant. How do you stop a runaway train?

[happygrl]

Your analysis is on the money, in fact it is the most credible post.

Now what, the guillotines ?

The arrogant won't stop until the entire house of cards collapses.

[Zon]

"It's the economy stupid." Clinton/Rubin/Greenspan money-debt bubble economy of the nineties is going bust.

As for Enron, WorldCom, Global Crossing, Adelphia, it's fraud. Miniscule compared to fraud by the trio of Clinton, Rubin and Greenspan.

[Libertarianize the GOP]

thanks for the ping

and ping

[JustSayNoNWO]

"As many business profits publicly turn to losses, unemployment rises. Business financial statements publicly disclose the corporate financial losses."

Good read on the whole article.

Sadly, both parties are up to their(you know what's) in white collar crime.....knowing that, there will be nothing done to any guilty people involved.

There are ALREADY more than enough laws in place to fine and/or jail those involved in scandel like this.

The Gov't needs revenue....if people are unemployed, there will not be enough "worker bees" in place to just make money, spend money, pay taxes...etc...

IMHO new laws will be written, false security will be lamented in the news.....and until the next Gov't(& media) made catastrophe is making headline news....all this will be forgotten by the "sheeple".....

[Gritty]

Thought you might enjoy this article.

[stainlessbanner]

More propping up industries...

[Canadian Outrage]

Our leaders are corrupt! It certainly looks that way Bill. With all the exposure of just recent weeks, absolutely not one of the criminals has had to pay back a penny. They should "lose" all illegal financial gain. No question about it. Lynn

[rohry]

Thanks for the ping.

I skimmed the article, found it a little over the top (ALL the economic data has been fudged? I argue with LS all the time about a small fraction of the federal date is not accurate. He laughs and says it is not possible). I think a large percentage of what this guy says is real but he doesn't give enough data to say that we are in a depression (which is hidden by our living off borrowed money).

I have printed it out for later perusal.

[grania]

They seek to hold it all together by their exercise of raw power over the world's banking industry. It is a dangerous path.

Certainly is...they're playing with the laws of how things function. Have you noticed? Whether it's AMTRAK, or interest rates on CDs, or how business should run, or the economy (it's our job to keep on spending) or the jobs available to American workers, or the people who come here (legally or illegally), it's all about them not us.

I'd like to see it turn around...what rights do little folk have for honest balance sheets, and their jobs not going overseas or to lower paid immigrants, and the battles the government chooses. It's not about whether or not these people go to jail (I don't care); it's about honesty and ethics and fairness for the sake of the other 95% of the population.

They always, (on both sides of the aisle) ridicule anyone who might care about ordinary people. That's how they keep their place...convince us that anyone who disagrees is foolish or deranged. And you know what? The American voter accepts that...so far.

[BillofRights]

Lynn, our politicians are even more corrupt than most of us could have imagined. I am finding out more and more all the time.

Bill

[monkey]

The question is as obvious as a thousand foot tall pregnant gorilla at a championship chess match.

Blast, someone got that simile into print before I did. It's not easy writing the next A la recherche du temps perdu.