Dillon Read & Co. Inc.
And the Aristocracy of Stock Profits
http://www.scoop.co.nz/stories/HL0708/S00302.htm#2 Postscript: Financial Fraud vs. Financial Coup d’etat
Driving through New Jersey, Nitze [asked] Dillon if he thought the market decline an omen of hard times ahead…. Dillon
thought for a few minutes and replied, “ I think it presages the end of an era.” By this Dillon meant that what lay
ahead was not merely a period of retrenchment, after which affairs would be conducted as before. Rather, the world was
in for a major overhauling of institutions.
– Clarence Dillon and Paul Nitze in 1929
There is a fundamental difference between financial fraud and warfare implemented by financial means – a financial coup
d’etat, if you will. For citizens and investors trying to navigate current events and markets, it is well worth pausing
to gain perspective on current events and contemplate which type of event we are experiencing.
As I write to close the Scoop Media serialization of “Dillon, Read & Co. Inc. and the Aristocracy of Stock Profits”, the corporate media is unfolding daily revelations regarding the sub-prime mortgage market “crisis” and accelerating
decreases in bank liquidity and equity.
In the news today is the announcement that UBS, the Swiss bank that bought Dillon Read, now totals its mortgage market
losses at $10 billion. These losses began with write offs earlier this year by its recently launched hedge fund,
ironically named Dillon Read Capital Management.
Also in the news are the latest efforts by Andrew Cuomo, now Attorney General of New York, to subpoena Wall Street
perpetrators of the mortgage bubble that apparently got under way – depending on the account you read – in 2001 or 2004.
We seem to have somehow missed that the criminal mortgage patterns that we are watching has been growing for decades. We
seem to be missing the fact that the latest cycle began in 1996 as part of the ‘strong dollar policy” and that Mr. Cuomo
and numerous other current players and their organizations were leaders in starting and building the current mortgage
markets and losses.
If you step back and view the current events as the latest pump and dump of the US real estate market (like the S crisis and others before them), you will shed a different light on the current players and their roles. You will also
shed light on the fact that the investment model we are watching is far from new. Indeed, it is quite old and continues
to be quite successful for those who know how to exercise it and its many privileges.
“Dillon, Read & Co. Inc and the Aristocracy of Stock Profits” is a case study that describes events in Washington, DC during the second term of the Clinton Administration at the
onset of the 'strong dollar policy' and the housing and mortgage bubble.
The strong dollar policy was an organized effort by the Federal Reserve and the US Treasury acting in concert with G-8
to increase the market share of the US dollar as the reserve currency. Simultaneously, significant amounts of capital
were moved out of the US into emerging markets. Capital was moved into areas where currency and equity values were low
as a result of a series of co-incidental credit crunches.
The combination of a rising dollar and falling currencies in the emerging markets combined with significant emphasis on
"privatization" in the emerging markets made it possible for financial equity to "sell high, buy low" as it shifted out
of the Western economies into financing a steady centralization of ownership and control of resources and enterprises
throughout Eastern Europe, Asia and Latin America.
The strong dollar policy was a financial "stool" that stood on numerous legs:
- A significant relaxation -- and increase in amounts outstanding -- of housing, mortgage and consumer federal and bank
credit that significantly increased liquidity in the US and in the Western economies.
- A significant increase in government debt and relaxation of monetary standards to support ever-increasing dead loads.
- The movement of significant capital out of the United States through covert financial movements -- including the pump
and dump of the stock market (internet and telecommunication stocks) and $4 trillion missing from the US government
accounts facilitated by the bipartisan commitment to refuse to produce audited financial statements by the US Treasury
and a willingness of the US Depository, the Federal Reserve Bank of New York and its owners, its member banks, to manage
accounts not managed in accordance with the law.
- The steady assumption of critical government functions -- including military -- by private corporations and banks
through government contracting and program vehicles.
- Increased intervention in the capital and commodities markets by central banks, including suppression of the gold
price, using complex financial instruments, including derivatives.
- Increased use of corporate media and covert mechanisms to diffuse or stifle transparency or overcome legal
obstacles to this significant shift of resources into centralized control.
If we step back and observe events as they really are, rather than as we wish them to be, what becomes clear is that we
are watching the reengineering of global governance. Resources – including precious metal inventories and powerful
intelligence and weaponry-- are being shifted out of the hands of individuals, communities and governments into private
hands. Everything from currencies to militaries is now being controlled and managed in non-transparent ways by private
corporations and banks.
The bubbling of the mortgage market has been a huge success. Billions have been moved out of the pockets of the middle
class and their pension funds and the municipalities. The enabling institutions now have “losses,” hence they need to be
“saved” justifying another round of funding paid for by both government taxes and an inflation tax. No one is asking
where the money went and how to get it back. Rather we are anointing the people who engineered the bubble in the first
place to now “clean it up.”
Where this goes, no one knows. We know the point of financial coup d’etat is one world currency and one world government
– global feudalism, if you will.
However, as a small group of Americans reminded us several centuries ago, our freedom comes to us by divine authority.
Governments come and go – but our thirst for freedom is enduring and may be a tad more difficult to control despite all
the latest advances in digital technology and black budget weaponry. One world government sounds simple – it is a lot
harder to pull off when the plan is out of the closet and the organizing forces have little beyond force and greed to
hold most people in check.
What those who love freedom most need right now is an honest map. The theft of billions in the mortgage market was not a
fraud – it was a plan. The success of this plan is unfolding before our eyes. If you wish to understand what is really
happening – to your savings, to your community, to your pension fund, to your world -- you should read “Dillon, Read & Co. Inc. and the Aristocracy of Stock Profits” and explore the wealth of supporting documentation.
NOTE:
To help follow current mortgage market events, see the compendium of links, Who’s Who in the Housing & Mortgage Bubble at Catherine’s Blog http://www.solari.com/blog/?p=256
*** Links to the previous 19 parts to the " Dillon Read & Co. Inc. And the Aristocracy of Stock Profits" series follow. ***
*************
Dillon Read & Co. Inc. And the Aristocracy of Stock Profits
Table of Contents
http://www.scoop.co.nz/stories/HL0708/S00302.htm#1
I made the decision to write "Dillon, Read & Co. Inc. and the Aristocracy of Stock Profits" in the middle of a vegetable garden in Montana during the summer of
2005.
.
.
.
.
http://www.scoop.co.nz/stories/HL0708/S00361.htm
Dillon Read's Chairman, Nicholas F. Brady, was considered one of George H. W. Bush's most intimate friends and advisors
...
.
.
.
.
http://www.scoop.co.nz/stories/HL0708/S00399.htm
The French Rothschilds, in response to the nationalization of Banque Rothschild by President Mitterrand, moved
significant operations and focus to the U.S. ...
.
.
.
.
http://www.scoop.co.nz/stories/HL0708/S00435.htm
In 1984 and 1985, Dillon Read helped RJR merge with Nabisco Brands, making the combined RJR Nabisco one of the world's
largest consumer products corporations ...
.
.
.
.
http://www.scoop.co.nz/stories/HL0709/S00059.htm
Gary Webb's "Dark Alliance" story was persuasive that the U.S. government and their allies were involved in narcotics
trafficking ...
.
.
.
.
http://www.scoop.co.nz/stories/HL0709/S00194.htm
Perhaps KKR had simply sheltered one of the worlds premier money laundering networks and, behind the veil of a private
company, taken this network to a whole new level ...
.
.
.
.
http://www.scoop.co.nz/stories/HL0709/S00206.htm
That was when I decided that we might be losing sight of the line between financial engineering and financial fraud. I
left the boardroom to make a call to Washington, D.C. There was nothing else to learn at Dillon Read ...
.
.
.
.
http://www.scoop.co.nz/stories/HL0709/S00238.htm
When I told Nick Brady in 1989 that I was going to work at HUD, he said, "You can't go to HUD - HUD is a sewer."
.
.
.
.
http://www.scoop.co.nz/stories/HL0709/S00283.htm
To understand Dillon's investments in Cornell it is essential to understand who governed Dillon Read, who at Dillon
invested personally, as well as who at Dillon helped to govern the venture funds that invested in Cornell ...
.
.
.
.
http://www.scoop.co.nz/stories/HL0709/S00321.htm
Cornell arranged for the prison to be constructed by Brown & Root of Houston, Texas, a subsidiary of Halliburton.
.
.
.
.
http://www.scoop.co.nz/stories/HL0709/S00328.htm
The Clinton Administration took the groundwork laid by Nixon, Reagan and Bush and embraced the promotion of federal
support for police, enforcement and the War on Drugs with a passion that was hard to understand ...
.
.
.
.
http://www.scoop.co.nz/stories/HL0709/S00369.htm
One of Hamilton Securities' goals was to map out how the flows of money worked in the U.S. and create software tools
that would make this information accessible to communities ...
.
.
.
.
http://www.scoop.co.nz/stories/HL0709/S00458.htm
The supremacy of the central banking-warfare investment model that has ruled our planet for the last 500 years depends
on being able to combine the high margin profits of organized crime with a low cost of capital ...
.
.
.
.
http://www.scoop.co.nz/stories/HL0710/S00029.htm
One day I was a wealthy entrepreneur with a successful business and money in the bank. The next day I was hunted,
business assets seized, living through eighteen audits and investigations, a smear campaign directed not just at me but
also members of my family ...
.
.
.
.
http://www.scoop.co.nz/stories/HL0710/S00060.htm
My favorite Judge Sporkin quote was his retort from the bench, something to the effect of "I disagree with the law and
if you have a problem with that, take it up with Congress."
.
.
.
.
http://www.scoop.co.nz/stories/HL0710/S00155.htm
These are the kind of profits you get when you buy stock for a price of $3.8 million and several years later sell that
stock for $29.9 million - or an almost 800% increase on your investment ...
.
.
.
.
http://www.scoop.co.nz/stories/HL0710/S00159.htm
In June of 1999, Richard Grasso, Chairman of the New York stock exchange, went to Colombia to visit a Revolutionary
Armed Forces of Colombia Commander to encourage him to reinvest in the New York Stock Exchange ...
.
.
.
.
http://www.scoop.co.nz/stories/HL0711/S00228.htm
An all-to-familiar impersonal financial mechanism was now in place that created yet another incentive system with global
reach, to drive the financial returns of investors up by driving down the Popsicle Index of faceless people and
communities, far removed.
.
.
.
.
http://www.scoop.co.nz/stories/HL0711/S00229.htm
The Via Dolorosa is the street in the Old City of Jerusalem which Jesus is said to have walked on the way to his
crucifixion. It means "the way of grief."
.
.
.
.
*************
Mapping The Real Deal is a column on Scoop supervised by Catherine Austin Fitts. Ms Fitts is the President of Solari, Inc. http://www.solari.com/. Ms. Fitts is the former Assistant Secretary of Housing-Federal Housing Commissioner during the first Bush Administration, a former managing director and member of the board of directors of Dillon Read & Co. Inc. and President of The Hamilton Securities Group, Inc.
****ENDS*****