When it comes to financial matters, far too many people believe 
in fairy tales.

Fantasy #1: It is O.K. to enter your bank account and put it into 
mutual funds. After all, mutual funds are safer than the stock 
market. And also, mutual funds are run by skilled managers. *Oh 

The facts: In the 1920s and early '30s a lot of folks put their 
money into "investment trusts." Few checked out the by-laws. When 
redemptions fell below a certain point, the trusts were frozen. 
Those left in the pool often ended up with close to zero. 
Investment trusts did have a lot of leverage: going up and 
slamming down.

The 1930s and investment trusts left such a bad smell, after 
World War II the name was changed to "mutual funds." Plenty of 
mutual funds use paper and computer tricks to boost the so-called 
yield. The dirty, dangerous game is called derivatives: a game 
within a game within a Chinese box trick.

Fantasy #2: Banks are safer now than the 1920s and early '30s 
because there is Federal Deposit Insurance [FDIC].

Fact: About 14 thousand banks with about a trillion dollars of 
deposits are supposedly protected by FDIC which has approximately 
$10 billion in reserves. Another insurance company with that kind 
of rotten ratio would be declared bankrupt. So the FDIC logo on 
the bank door means *nothing!*

Fantasy #3: It's safe to keep your valuables in a safe deposit 
box. After all, it's inside a bank!

Fact: The safe deposit box vault is a separate company, not 
linked to the bank. The FDIC does not cover the vault company. In 
the 1930s, many deposit boxes were raided by bank officials when 
the banks went under. Few complained. After all, who wanted to 
prove what was inside their box? Some were hiding their valuables 
from ex-wives and tax collectors.

The sons and daughters of such bank pirates later, after World 
War II, formed state banks and savings and loans with the stolen 

Fantasy #4: A mutual fund advertising it is made up of U.S. 
government bonds is 100 percent safe. *Oh yeah?*

The facts: Many offer attractive yields boosted with derivatives 
monkey-business tricks. Like other funds, these will freeze 
redemptions at a certain point, *and* -- you'll get zero.

Fantasy #5: U.S. government bonds are safe. *Oh yeah?*

Fact: In recent years, Japan has purchased about two-thirds of 
new issues of U.S. Treasury notes and bonds. Japan's purchases, 
and those of Saudi Arabia, are the only ones the U.S. secretly 
promises to redeem in gold. The U.S. Treasury, however, does not 
*have* that much gold. In a panic, they may force U.S. citizens 
to turn in their gold coins and bullion. It happened in 1934, it 
can happen again.

Throughout history, every nation that went deep in debt 
eventually renounced their government bonds. The U.S., of course, 
is next.

Also, the united States lost the Vietnam war. Without exception, 
throughout history, every ruling class that loses a war is 
eventually overthrown.

The panic with the falling dollar compared to the yen is far more 
serious than the press fakers tell you. Japan is making a run on 
the dollar and a run on selling their U.S. commercial properties. 
Foreign nations are getting set to get a bigger slice of America 
by collapsing our government.

In Chicago, see us on cable tv, channel 21, 9 pm [cst] most 
Monday evenings.

Play it again: The Rotten State's Attorney (312) 731-1505.

New message Tuesday; we change it several times a week.

Donations appreciated. Citizen's Committee to Clean Up the 
Courts, 9800 South Oglesby, Chicago, [Illinois] 60617. For the 
latest on courts, banks, espionage agencies, political 
assassinations, and the news media. On 24 hours a day.