Marc Faber Agrees, ‘Get the Hell Out’

By Dominique de Kevelioc de Bailleul

The message to investors should be most clear by now: Quickly get your cash out of financial institutions and buy some gold.

“It’s very dangerous to put everything in cash with MF Global or another financial institution, because I’m not too sure about the law . . . if the law will protect you as a depositor or an account holder,” editor of the Gloom Boom Doom Report Marc Faber tells Bloomberg.

Whether the messenger comes way of an up-straight and straight-up N.Y. City Italian, an exiled American living in Central America, a young woman totting firearms and a Bible, or an eccentric Swiss-born money manager living in Chiang Mai, Thailand, each warn investors and savers that cash on account is not safe at financial institutions—no matter how much the FDIC or SIPC insures.

Gerald Celente, Jim Willie, Ann Barnhardt and, now, Marc Faber warn the runs on Greek, Spanish, Italian and several Eastern European banks will eventually come to the U.S.  And if investors and savers think they’re covered in the event of a failure, a media-downplayed ruling by United States Court of Appeals for the Seventh Circuit of Aug. 9, regarding the bankruptcy case of Sentinel Management Group, too many will come to know that their cash is most definitely exposed to what many say is legal theft.

“The system is rigged. . . if you don’t have it [assets] in your possession, you don’t own it,” said Celente, following word that his commodities brokerage account was seized in Jon Corzine’s MF Global bankruptcy of Oct. 31, 2011.

“JPM has seen fit to gobble private accounts at both MF Global and PFG-Best, with regulatory blessing as the courts sprinkled fascist holy water,” writes Jim Willie of the Golden Jackass newsletter.

“If you don’t understand what ‘get the hell out’ means, there’s not much I can do for you,” Ann Barnhardt commented, after hearing of the Seventh Circuit of Appeals ruling.

In the case of Sentinel, its creditor, BNY Mellon, contended that its secured loan with the Chicago futures brokerage firm takes priority over other loans which may have been secured by Sentinel’s pledge of allocated accounts.

“The appeals court affirmed an earlier district court ruling that the bank had a ‘secured position’ on a $312 million loan it gave to Sentinel, which turned out to have been secured by customer money,” according to Reuters of Aug. 9.

“I don’t think that’s what the Commodity Futures Trading Commission had in mind” with its requirement that brokers keep customer money separate from their own,” Reuters quoted Sentinel trustee Fred Grede.

“It does not bode well for the protection of customer funds,” he added, “I’m sure Mr. Corzine’s attorneys will get a hold of this ruling and use it for all it’s worth.”

Other than strongly recommending that idle cash be removed from U.S. banks and broker-dealers, Faber says investors and savers, alike, should hold some gold to protect their savings from another insidious means of ‘institutional’ theft in store from them in the future: the loss of purchasing power of their Federal Reserve notes.

“I think they [Fed] will print money and that eventually everything will become more expensive. . . and I would hold some gold . . . and I would hold some equities,” he says.

“And I happen to think that one day a lot of corporate bonds will have a higher credit rating than the U.S. government [bonds],” he adds, which coincidentally comes on the same day as another Bloomberg interview with credit rating agency Fitch, who warns the U.S. Treasury of an impending downgrade, if Congress cannot outline plans sometime in the first half of 2013 to narrow a $1.3 trillion annual budget deficit.

MF Global: Beta Test For Bank Holiday & Martial Law

By Dominique de Kevelioc de Bailleul

On the heals of the Department of Justice’s determination of no wrongdoing in the case of Goldman Sachs’ contribution to the kickoff of the financial meltdown in 2008, writer and researcher Susanne Posel tells the SGT Report that the bizarre overnight bankruptcy of MF Global of Oct. 31, 2011, was a beta test for the final, grand theft planned by the banking cartel.

Nearly 10 months later, no charges have been levied against the mastermind of the theft of $1.2 billion, former CEO of Goldman Sachs Jon Corzine.  No charges appear to be forthcoming, either.

The Corzine incident was a beta test implemented by the banking cartel to measure the extent of public and Congressional reaction to overt theft of customer funds, according to Posel.

Through a Deutche Bank informant, she says the banks intend to steal as much of clients money as possible to cover bad bets made following the enactment of the Gramm–Leach–Bliley Act (GLB) of 1999, a piece of legislation passed by Congress which rendered the separation between commercial banks and investment banks covered under the  Glass-Steagall Act of 1932 null and void.

GLB was spearheaded by the then-Secretary of Treasury and former Goldman Sachs CEO Robert Rubin during the Clinton administration.

“They know the collapse is coming,” says Posel. “So they are preparing for it.”

Posel says the collapse of the financial system of 2008, with the abrupt bankruptcy of Lehman Brothers, sparked a currency war between the European Union and the United States over which currency would be left standing and who would hold the underlying assets or tax base of citizens from which to tap revenue.

“In 2008, we should have collapsed,” says Posel.  “We should have gone the way of Greece.  The only reason why we didn’t was because the global elite and banking cartels put it off on the eurozone and [to] collapse the eurozone in order to gain sovereign debt.”

That additional sovereign debt would then compel governments responsible for paying the debt to raise taxes upon its citizens, cut recipient benefits and confiscate property in a government-sanctioned transfer of underlying real wealth to bankers away from the citizenry.  In that way, not repaying bankers via taxes levied by the middleman of government now becomes a criminal offense, not a civil matter between bank and customer.

In the case of Europe, Greece is the weak link.  Greece was sold mortgage-back securities (MBS) from American broker-dealers, which were then attacked through wholesale selling of the securities, creating the kickoff to the euro crisis that began in March 2009.

Hedge fund manager John Paulson was possibly implicated as the short-seller of the mortgage-back securities held by Greece in a hearing between Congress and the ‘Fab Four’ traders at Goldman Sachs.  During testimony, Paulson was revealed as the man who sat with other Goldman Sachs employees when a handpicked basket of overpriced mortgage-back securities was created, including those MBS’s sold to Greece.  Paulson shorted the basket of MBS’s and profited approximately $3.7 billion.

No criminal charges have been filed against Paulson, the employees of Goldman Sachs who created the basket of securities, or any of Goldman’s Fab Four.

But there is more, according to Posel.  China needs assurances that it gets paid, as well.

“They’re extracting wealth so that the only thing the governments will have left to give them [Chinese] is the actual land that they [Americans] own,” says Posel.

Goldman Sachs was first to deploy the banker scheme of extracting funds from public coffers.  In addition to paying interest on $1.1 trillion of U.S. Treasuries held by the Chinese, the banking system and the U.S. dollar were saved through pushing the problem of global insolvency onto the Eurozone nations.

“In 2008, when Hank Paulson went to the Congress and said that they had to bail out the banks for $700 billion or martial law would be declared, they weren’t lying,” says Posel.

Goldman Sachs CEO Henry Paulson’s extortion of a $700 billion TARP bill from Congress with the threat of martial law was essentially a classic bait-and-switch scheme.  Americans were told that the unprecedented appropriation was earmarked for a jobs and economic stimulus program.  Instead, the money was redirected to the “too big to fail” banks, with subsequent hearings between Congress and Federal Reserve Chairman Ben Bernanke yielding no disclosure as to which banks received the money under TARP.

In Congressional testimony, Bernanke stated he will not disclose the recipients of TARP, unless Congress orders him to do so, because to disclose the recipients of the appropriated funds may trigger a bank run on those institutions.  No such order from Congress has been passed.

And the mechanism for foreclosing properties that were backed by mortgage securities was immediately deployed, as in the ubiquitous ‘robo-signing’ incidences that appeared months later.

The final coup planned by the bankers involves a bit of deception, a false-flag attack blamed on China, Russia or Iran, maybe, in which the Federal Reserve will initiate a ‘bank holiday’ on a Friday due to a computer ‘virus’ which allegedly threatens the banking system, according to Posel.

Posel’s informant told her that the banks would open on the following Monday.  At that time, declaration of martial law by the U.S. president comes next, presumably as a result of massive civil unrest due to a dollar devaluation or another event blamed on the perpetrator of the virus.  But the overarching reason for martial law is to protect the banks from an angry public, according to her.

“If you hear about this in the news, you have 72 hours to do whatever you plan to do before the collapse,” says Posel.