A PILE OF NEWS
Important news items and reports from several sources are "flying
hot and heavy" these days. Many of these stories are mentioned
only briefly, as if they are minor news, in the mainstream press.
Below is my attempted summarization of various reports. I hope
that with some brainstorming we can together get closer to
figuring out what is =really= going on.
Big stock market crashes often occur in October; for example, the
1929 crash and the 1987 crash. We have now an unprecedented
situation where the U.S. president, Bill Clinton, and his harem,
are crowding the front pages of supermarket tabloids. The
drumbeat against Clinton is incessant: on TV, radio and in the
newspapers they are pounding it into our heads that, "No. You
don't like Clinton now." (For years they had been browbeating us
that, "Yes. You like Clinton.") "They" -- the mainstream media --
are owned by super-wealthy individuals and corporations who, in
turn, are beholden to big financial powerhouses like Citicorp,
Travelers, and major banks.
The October 5, 1998 online edition of New York Times reported a
major battle between U.S. Treasury Secretary Robert Rubin and
Federal Reserve chairman Alan Greenspan. (One cynic has
suggested, "Forget about Clinton; Rubin and Greenspan are the
important ones.") In "Politics Again Leaves Banking Overhaul in
Limbo," Leslie Wayne writes, in part, that a proposed banking
"reform" bill is being vigorously opposed by Rubin. The bill,
which would "eliminate barriers separating banks, insurance
companies and brokers and allow them to merge into new financial
conglomerates," is being pushed for by Greenspan. Bill Clinton
has threatened to veto the proposed measure. Recall that in CN
12.07 was covered the recent illegal merger between Citicorp and
Travelers Group, forming a combination called "Citigroup."
On April 6, 1998, the largest merger in history occurred:
Citicorp and The Travelers Group joined to become
Citigroup. (Hmmm..... Do you think there are going to be
layoffs at Citigroup?) In the April 27, 1998 issue of The
Nation magazine, the interesting legal strategy behind the
merger is noted. It seems that the merger between Citicorp
and Travelers =is illegal=. But, writes Doug Henwood, "the
parties figure they can get the law changed. If you're
rich enough, you can present the government with a *fait
accompli* and have the law you'd like to violate repealed."
Clinton/Rubin appear to be fighting the giantizing of banks while
Alan Greenspan seems to support same. Note also how the stock
market values of major U.S. banks like Citicorp have fallen
drastically these past 10 or so days.
Nonetheless, in spite of the apparent battle going on between
Clinton/Rubin vs. Alan Greenspan, Sherman Skolnick is now
reporting that Fed chairman Greenspan has given orders to
Congress to go easy on Clinton. In "Federal Reserve Orders: Be
Careful on Clinton!" Mr. Skolnick, doyen of underground
journalism, writes in part that...
The world's largest bank, the Federal Reserve, has ordered
the US Congress to be careful in dealing with President
Clinton. An order from this financial dictator cannot be
Privately owned and operated by the Rockefeller and
Rothschild families, and masquerading as America's Central
Bank, the Federal Reserve does not want a change of
figureheads in the White House, at a time of imminent
collapse of global finance. The clandestine command of the
Federal Reserve comes at a time of near collapse, or actual
collapse, of a huge hedge fund interlocked with many money
center banks, including those headquartered in the US, and
also those like in Switzerland with branches in the US.
Amounting upwards to 200 billion dollars or more, the hedge
fund disaster, based greatly on little-understood
derivatives gambling, has wiped out the capital base of
many supposedly "giant" banks. Most of the alleged
"profits" of major bank holding companies in recent years
have been just book entries resulting from this gambling
Among those with capital structure wipe-out are
Rockefeller-owned Chase Manhattan Bank and the First
National Bank of Chicago, as well as the Rothschild and
Jesuit-owned Bank of America which took over the Vatican
and British-royalty-owned Continental Bank Of Chicago....
Now almost forgotten, the Federal Deposit Insurance
Corporation was set up in the 1930s to underwrite accounts,
up to a specified amount as maximum, primarily of smaller
or mid-size banks. With the mega-mergers gobbling up the
banks and their holding firms and conglomerating into huge
bank chains, the deposit insurance has become a dead
letter. Only a few tens of billions of dollars are in the
deposit insurance reserve fund to supposedly safeguard bank
monsters each with several hundred billion dollars in
deposits owed to the public. The banking system has become
over-run with bank monopolies, also engaging in non-bank
services such as travel agencies, insurance, securities
transactions, and such--enterprises supposedly part of a
"bank" house too large to permit to fail.
Mr. Skolnick's report on Greenspan's alleged support of Clinton
flies in the face of the above-mentioned battle between Greenspan
and Clinton/Rubin regarding legislation favoring giantizing of
major banks. If, as New York Times writer Leslie Wayne reports,
Clinton and Greenspan are at odds over this, then why would
Greenspan give such Clinton-favorable orders to Congress? The
opinion of Conspiracy Nation (CN) remains that Bill Clinton is to
be offered up as the scapegoat for financial disaster.
Regarding Mr. Skolnick's mention of derivatives, excellent
reporting on these precarious financial instruments has long been
done by the Lyndon LaRouche crowd. Though Conspiracy Nation
deplores the lack of independent thinking among the "LaRouchies,"
who all seem to automatically agree with whatever Mr. LaRouche
has to say, they still deserve some credit for their consistence
in probing the shaky derivatives situation and focusing attention
upon it. In "Long Term Capital Management Represents the
Disintegration of the Financial System," a transcript from the
LaRouche-connected radio program "EIR Talks," Tony Papert and
John Hoefle discuss what's been happening in the financial
markets. They say, in part, as follows....
TONY PAPERT: Welcome to ``EIR Talks.'' It's Sept. 30,
1998. My name's Tony Papert, and with me in the studio is
John Hoefle, EIR's Banking columnist. John, one week ago
today, last Wednesday, the Federal Reserve called a secret
meeting of 16 bankers and arranged a multi-billion dollar
bailout of a hedge-fund called Long Term Capital
Management, and since then, this has been the talk of the
world's financial press and regular, mainstream daily
press. What does it mean?
JOHN HOEFLE: Well, there's good reason for all the talk,
because right now the bankers are in absolute panic. What
the Long Term Capital Management affair represents is the
disintegration of the financial system. The reason why the
bankers had to move in and bail out Long Term Capital --
and they actually didn't bail it out, they =foreclosed= on
it -- what they bailed out was the derivatives market,
because Long Term had in excess of $1 trillion in
derivatives. Some reports say it was as high as $3
trillion, and if Long Term had gone into default, which it
would have the next day, it could have triggered a
chain-reaction blowout of the global derivatives market,
which would have struck very hard at those same banks that
participated in the foreclosure.
PAPERT: What is the bailout, or the need for the bailout
mean for the whole financial system?
HOEFLE: Well, right now the global financial system is
hanging by a thread. The global derivatives market has
been hit very hard with losses. The banks have suffered
big losses on loans and other financial instruments to
Russia, to Asia, growing now in Ibero-America, and also,
domestically, in the United States, a lot of this hasn't
been reported yet, but there's a meltdown underway globally
which is reflected in the drop in the Dow, where the bank
stocks, themselves, are down 30-40%.
PAPERT: Let me ask you something that is asked on every
show I'm on on the radio: Just what is a derivative?
HOEFLE: A derivative, in the textbook definition, is that
it's a financial instrument or contract whose value is
based upon the value of something else. Such as, you can
buy a contract -- it's a bet that the Dow Jones Industrial
average will go up, and it pays off if the Dow goes up, so
you're betting on a index, and you're not betting on any
actual stocks. So that's the textbook definition of a
derivative, and supposedly these derivatives are used for
risk-management. But, you have to ask yourself, if there
are $140 trillion in derivatives outstanding in the world
today, what kind of risk they're managing? But, the real
answer to what a derivative is, is to look at it in terms
of a dog and fleas. During the 1980s, you had the creation
of a huge financial bubble. This was the miracle, the
Reagan-Bush economic miracle. And, you could look at that
as fleas who set up a trading empire on a dog. And they're
trading more and more -- they build up their trading
empires. They start pumping more and more blood out of the
dog to support their trading, and then at a certain point,
the amount of blood that they're trading exceeds what they
can pump from the dog, without killing the dog. The dog
begins to get very sick. So being clever little critters,
what they do, is they switch to trading in blood futures.
And since there's no connection -- they break the
connection between the blood available and the amount you
can trade, then you can have a real explosion of trading,
and that's what the derivatives market represents. And so
now you've had this explosion of trading in blood futures
which is going right up to the point that now the dog is on
the verge of dying. And that's essentially what the
derivatives market is. It's the last gasp of a financial
PAPERT: Can you tell us something about the forms of
financial instruments and financial speculation which
preceeded derivatives, I mean, how this thing came into
existence? I know it's closely connected with the progress
of deregulation, which now allows banks to do more or less
anything, and even to do it off-balance-sheet, without
telling their stockholders, or the public as they do with
HOEFLE: Well, the U.S. banks have $28 trillion in what the
FDIC calls "off-balance-sheet" derivatives versus $5
trillion in assets on their balance sheets. So, most of
what goes on in the banking world goes on off-balance-sheet
now. And they've placed enormous bets which will destroy
Chase Manhattan Bank, for example, has more in
derivatives: $8.5 trillion, as of the second quarter, more
than the entire gross domestic product of the United
PAPERT: And I understand Japan banks are even more heavily
invested, although perhaps nobody really knows for sure.
HOEFLE: Yeah, it's not quite clear. I'd say they have at
least $15 trillion in derivatives, maybe more. I suspect
they've been trying desperately to unwind some of their
derivatives exposure, as their system melts down.
I don't have time to detail how there are several consistent
corroborations to be found, amongst the various sources mentioned
above, which tend to give extra credibility to what they are
saying. Don't expect the mass media to spell it out for you
either, since the mass media is part and parcel of the very
financial system which looks to be going through an immense
crisis. Your "mission," Mr. and Mrs. Conspiracy Nation Reader,
should you decide to accept it, is to take a moment and do some
thinking of your own. (As always, should you be caught or
captured, Conspiracy Nation will disavow any knowledge of your
Finally, in a matter which may or may not be tangential to the
Clinton scandals, the financial crisis, and the push to giantize
major banks, "Sky News" had reported on Feb. 10, 1998 that
an American Jew jailed for life in the United States for
spying on Israel is set for release, under the terms of a
future U.S.-brokered Israeli-Palestinian peace deal.
According to reports in the daily Yedioth Anronoth
newspaper U.S. and Israel gave the go ahead for the release
earlier this week.
Pollard seems to have been set up as the "fall guy" for passing
top-secret U.S. government information to Israel. Past CN
reports have indicated that one of the higher-level players in
this espionage case was the late Vince Foster, the deputy White
House counsel in the Clinton administration who was most likely
either murdered or executed in July, 1993. Just received by CN
is a report from "Ru Mills" (pseudonym), who writes, in part, as
Jonathan Pollard Release Story Was a "Plant" Who Planted It
From the Offices of: Rumor Mill News Agency
The Uncensored National Rumor
E-mail Address: RuMills@aol.com
Evidently there is more behind the "release of Pollard"
than meets the eye. No sooner had newspapers around the
world printed the story of his release, than other articles
appeared stating that the "release" story was "planted."
The question we must ask is: Why was this done? Why was
the original article leaked to newspapers around the world.
Why did these papers publish it without checking to see if
it was true? If they did check it with their sources, and
their sources said it was true, then what is the real
My conspiracy mind says that someone is playing hardball
with someone else, and Jonathan Pollard is a pawn in the
If Pollard was connected to Vince Foster, as some say, then
Jonathan Pollard could be the weak link in the Clinton
chain fence of obfuscation and denial.
Jonathan Pollard, and his Mossad handlers know the truth
about Vince Foster; was this "fake" story a message to our
President? And if it was, what was Benjamin Netanyahu
telling Bill Clinton?
We are entering the most dangerous times in the history of
our nation. This time in our national history is more
dangerous than the Cuban Missile Crisis, Pearl Harbor, and
the Civil War combined.
Whoever controls the secrets of Jonathan Pollard, thinks or
knows that they control Bill Clinton. Who are these people
and what do they want our President to do?
Pieces of the puzzle. By brainstorming together we can solve it.
The truth is not and never has been handed to the people "on a
silver platter." But the people, if they choose, can arrive
together at the truth. And with the force of Internet helping us
to put our heads together, WE ARE UN-STOPPABLE..... if we so
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