Fall Of The Republic: The Presidency Of Barack H, Obama Page #6

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and sometimes 100:1 profits on the way up.

And remember, derivatives are a zero-sum game,

so there's nothing there.

It's not like a piece of stock in,

in General Electric or Ford or something like that,

where there's supposed to be some value.

Derivatives have no value.

But the very people: Summers, and... and... and Geithner,

and all the people at... at Goldman Sachs and JP Morgan

who created these things made not millions or billions,

but trillions on the way up,

and now that these things are crashing, the very same folks,

the very same folks are now put in charge

of regulating these things and in charge of

the bailout and they are giving money to the very rascals

that created this problem, took the profits.

The problem cannot be fixed.

And this is on Obama's watch, right now.

You have so many different schemes and mechanisms at play.

It's sort of like after there's a blackout.

You know, people in some parts of the country

have been known to loot the local stores.

You know, they go in, they grab the televisions

and they grab the stereos.

And basically, that's what the Wall Street gang has done.

They've just engaged in this massive looting of... of...

of money from their own companies and...

and now from the US Treasury.

There was a lady called Brooksley Born.

She was the head of the Commodity Futures Trading Commission

under Clinton. And she said,

"Look, we have these derivatives.

Why don't we at least make them reportable?

So we know how many there are

and where they're... where they are."

And she writes in a biographical account: she said,

"I picked up the phone and Larry Summers was screaming

at me that I was interfering with the wonderful

inventiveness and ingenuity of Wall Street

and their ability to come up with new

financial products such as these derivatives."

Brooksley Born was the chair of the

Commodity Futures Trading Commission (CFTC),

which regulates many financial derivatives.

And she said there's a grave danger out there

in the form of these credit default swaps.

And credit default swaps are a

exotic financial derivative or

moderately exotic financial derivative

that were sold on a bright shining lie that

they were supposed to make markets more efficient.

In fact they allow utterly insane gambles and

they're really great devices for accounting fraud as well.

She actually says,

"I'm thinking of adopting this regulation."

The Clinton administration goes berserk,

and in particular Larry Summers, but also Rubin.

Now behind Larry Summers there's another layer:

Bob Rubin of Goldman Sachs,

the Clinton administration and Citibank.

And he also thought that derivatives were

a wonderful thing for the US economy

and he made sure that they were never regulated.

Also, we can't forget Alan Greenspan

over at the Federal Reserve.

Now, you look at Summers.

He is sitting in the White House today

making policy for Obama.

Summers tells Obama what to do.

Summers tells Geithner what to do.

He's also got some of his hatchet people

in the administration.

Mary Schapiro runs the Securities and Exchange Commission.

She refuses to ban naked short selling

and other market manipulations.

You've also another guy called Gensler over at

the Commodity Futures Trading Commission today.

He is an acolyte and a supporter

of the derivatives bubble.

We made the new CFTC chair a guy who had helped

to kill Brooksley Born's reform initiatives, and...

and we just did this under the Obama administration.

This was a preregistered, preorganised, predetermined event.

Anybody who knows that if you allow the banks to become

unregulated financial institutes with tsunami-like,

weapons-of-mass-destruction-like financial instruments

like derivatives; to allow that to run up to levels

that are fifty, a hundred, two hundred times

the gross domestic product, with no value,

they know that they are taking the profits on going up;

but they also know that the end result

is the destruction and gutting of this economy.

The scam is simple.

The insiders by hard assets and political influence

as the fiat bubbles expand.

And then, at a time of their choosing,

they purposefully implode the bubble.

You've got a very small group of people and the

Federal Reserve and the global central banking system

and the Bank for International Settlements in Switzerland

who are purposefully managing the boom and bust,

credit supply, credit contraction, money supply growth,

money supply contraction, to create artificial

roller coasters and artificial volatility

that they can trade around without taking any risk.

It doesn't cost them any money.

And if they do make a mistake because they're,

as George Bush said,

"Oh, the bankers on Wall Street are drunk."

Yes, I'm certain. There's no question about it.

Wall Street got drunk.

That's one of the reasons

I asked you to turn off your TV cameras.

Let's say they walk in one day

and they push the wrong button

and they loose the bank a billion or 5 billion or 100 billion,

they can appeal to the government to bail them out.

It's a totally asymmetric relationship between

bankers and the rest of the economy.

If they make a mistake, they get bailed out.

If everyone else makes a mistake, they get put in jail,

called a terrorist, and we never hear from them again.

But it's a more sophisticated form of slavery,

and we are going through it today.

We see that taxation is going up all the time with a...

with a supposed crash of the banks

that was not happening out of the blue.

It was set up for this time.

They could have kept it going for a another few years,

if it suited them, and then crashed all the bubbles.

But now is the time.

As they say in their own writings, now is the time.

One of the great benefits of an economic model

from an economist's standpoint is you can

basically get whatever results you want.

You can manipulate the inputs to make that happen.

And that makes it a very easy tool

to use to hoodwink other people.

These manufactured, these engineered financial catastrophes

are the result of a central banking system

that has ability to add and subtract credit, add and...

add and subtract dollars and money at will

to create this roller coaster effect, because,

unlike most people, the banks are able to make profits

as easily on the way down as they can on the way up

in any given situation.

Volatility is great for banks and professionals.

Volatility is not great for the... the...

most... most average people.

Their operatives in government and media then

hold the economy hostage by issuing the ultimatum:

give us unlimited bailout money or the economy dies.

What's being used is what I call -- to try to get the money --

is what I call the suicide threat where, you know,

if anybody has ever seen the movie Blazing Saddles,

the sheriff is surrounded by hostile town folks,

he takes out his gun, points it at his head and says,

you know, "Don't move or I'll shoot."

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