- (Broker Ann Barnhardt's letter follows below)
- Let me point out, however, that if American middle-class
investors pull out of the futures market, international finance will take
ownership off all food and strategic commodities for a song. We are not
taking merely about stopping the making of bets in a game, we are talking
about ownership of next years world food supply. Everyone is thinking
about their portfolio and the risk -- no one is thinking of ownership
and control of the real capital which allows continued production -- namely
food and fuel and raw materials.
- Remember, in 1929, on the three black days --
Thursday Oct 24th, Monday Oct. 28th and Tues. Oct 29th 13 million shares,
9 million shares and 16 million shares were transferred from the middle
class to international high finance. The crashes
were in each case percipitated deliberately by banks makeing margin calls
which forced sell offs. When the ticker tapes got behind three hours in
a steadily falling market -- Percy Rockefeller, Bernard Baruch, Thomas
W. Lamont (senior partner of Morgan's), Albert Wiggin (chairman of Chase
National), Seward Prosser ( Bankers Trust) and William Potter (Guarantee
Trust) with Winston Churchill in town and actually in the visitor's gallary
on the New York Stock Exchange in the morning as the first "black
day" selling stampeed was begun and prices were made to plummet --
as I was saying, one each day after the ticker got behind, these men began
to buy, gaining all of those shares of American industry!!!! Such
an engineered capture -- this time of next years food supply and the resources
we need to provide for ourselves -- are similarly being captured, in an
exchange located in Chicago but now owned and controlled by China -- that
ally of Rothschild and Israel and Goldman Sachs.
- Incidentally, less than a month before the stock market
crash, on December 4, 1928, Goldman, Sachs and Company entered the investment
trust business by launching the Goldman Sachs Trading Corporation, immediately
exhibiting the most spectacular enterprise growth in trading history in
the months ahead of the crash. The initial stock was a million shares
and parent Goldman, Sachs bought them all at $100 per share. They retained
control through management contract and parent company partners on the
board. Then they sold to the public at $104. They then merged with Financial
and Industrials Securities Corporation representing a gain of assets of
over percent, bringing the stock to $225 by February -- a market value
twoice that of the total worth of the assets of the firm. Then Goldman
Sachs began buying its own securities elevating the price -- on this autistic
speculation -- raising the price at a rate that caught national attention
(although the public did not know who was doing the buying or why). Then
Goldman sold the stock privately and quietly to Will Crapo Durant
who then marketed it to the public at ever increasing prices. Then the
Goldman Sachs Trading formed a new trust, the Shenandoah Corporation which
was oversubscribed seven fold and which just 25 days latter sponsored another
vehicle, the gigantic Blue Ridge Corporation, over 7 million shares and
Shenandoah subscribed to 6 million of those. This new hot stock was sold
with a special deal to investors -- they could trade their ordinary American
industrial stock, such as AT&T, Allied Chemical, General Electric,
Santa Fe Railroad, Standard Oil and Eastman Kodak. In August Goldman Sachs
Trading Company bought the west coast investment trust Pacific AMerican
Associates headed by former Woodrow Wilson administration Secretary of
the Treasury taking orders from Bernard Baruch. And following all this
positioning, Goldman, Sachs became inactive, since now fully poistioned,
by August 1929. This leveraging gave the Goldman, Sachs the money to buy
up the control of all the major corporations trading on the market during
those three black days. Obviously this was not a bubble caused
by the government printing too much money as the good for nothing Austrian
Schoolers would lead you to believe.
- In 1932, Henry Sachs, testified in hearings before
a Sentate committee inquiry into stock exchange practices (Hearings April-June
1932, Pt. 2 pp 566-567:
- Senator Couzens: Did Goldman, Sachs and Company organize
the Goldman Sachs Trading Corporation?
- Mr. Sachs: Yes, sir.
- Senator Couzens: And it sold its stock to the public?
- Mr. Sachs: A portion of it. The firms invested originally
in 10 percent of the entire issue for the sum of $10 million.
- Sentaor Couzens: And the other 90 percent was sold to
- Mr. Sachs: Yes, sir.
- Senator Couzens: At what price?
- Mr. Sachs: At $104. That is teh old stock . . . the
stock was spit two for one.
- Senator Couzens: And what is the price of the stock
- Mr. Sachs. Approximately 1×.
- But what everyone fails to note in this making or unmaking
of nominal dollars is what happened to the ownership of American industry?
The answer of course is that it went to the same interests that are getting
ownership of next years crop of necessary-for-living commodities.
- For a better picture of how America is really run I recommend
Jeff Rense interview of yours truly on the horrifying role of Berhard Baruch
in the 20th Century
- with extensive full-quotation of source documentation
- Now you are ready to read Ann Barnhardt's letter to her
investment clients with the proper perspective.
- Dick Eastman
- Yakima, Washington
- Posted by Ann Barnhardt
- November 17, 2011
- BMC has ceased operations.
- I'm the only populist candidate and the only 100
percent independent and unbeholding man running for president,
running on a platform of immediate repudiation of all debt to the owners
of Goldman Sachs (Rothschilds, Rockefellers etc), the immediate switch
to national fiat currency, and the replacement of Fed Open Market Operations
with dividend checks to every American household as the one and only way
new money will be introduced to the American economy from now own. Vote
for me or suffer the alternatives. You put me in office and I will fix
the problem with emergency executive orders issued directly from the podium
during my Inaugural Address. I mean it. The only credential I offer is
that I do not waver from my aolitaRY purpose of many many years and
I do not and WILL NOT qualify it with any other consideration.
If I don't deliver on the first day, January 20, 2013, I will resign in
the first hour of the second.
- Barnhardt's letter to her client:
- Dear Clients, Industry Colleagues and Friends of Barnhardt
- It is with regret and unflinching moral certainty that
I announce that Barnhardt Capital Management has ceased operations. After
six years of operating as an independent introducing brokerage, and eight
years of employment as a broker before that, I found myself, this morning,
for the first time since I was 20 years old, watching the futures and options
markets open not as a participant, but as a mere spectator.
- The reason for my decision to pull the plug was excruciatingly
simple: I could no longer tell my clients that their monies and positions
were safe in the futures and options markets because they are not.
And this goes not just for my clients, but for every futures and options
account in the United States. The entire system has been utterly destroyed
by the MF Global collapse. Given this sad reality, I could not in good
conscience take one more step as a commodity broker, soliciting trades
that I knew were unsafe or holding funds that I knew to be in jeopardy.
- The futures markets are very highly-leveraged and thus
require an exceptionally firm base upon which to function. That base was
the sacrosanct segregation of customer funds from clearing firm capital,
with additional emergency financial backing provided by the exchanges themselves.
Up until a few weeks ago, that base existed, and had worked flawlessly.
Firms came and went, with some imploding in spectacular fashion. Whenever
a firm failure happened, the customer funds were intact and the exchanges
would step in to backstop everything and keep customers 100% liquid
even as their clearing firm collapsed and was quickly replaced by another
firm within the system.
- Everything changed just a few short weeks ago. A firm,
led by a crony of the Obama regime, stole all of the non-margined cash
held by customers of his firm. Let's not sugar-coat this or make this crime
seem "complex" and "abstract" by drowning ourselves
in six-dollar words and uber-technical jargon. Jon Corzine STOLE the customer
cash at MF Global. Knowing Jon Corzine, and knowing the abject lawlessness
and contempt for humanity of the Marxist Obama regime and its cronies,
this is not really a surprise. What was a surprise was the reaction of
the exchanges and regulators. Their reaction has been to take a bad situation
and make it orders of magnitude worse. Specifically, they froze customers
out of their accounts WHILE THE MARKETS CONTINUED TO TRADE, refusing to
even allow them to liquidate. This is unfathomable. The risk exposure precedent
that has been set is completely intolerable and has destroyed the entire
industry paradigm. No informed person can continue to engage these markets,
and no moral person can continue to broker or facilitate customer engagement
in what is now a massive game of Russian Roulette.
- I have learned over the last week that MF Global is almost
certainly the mere tip of the iceberg. There is massive industry-wide exposure
to European sovereign junk debt. While other firms may not be as heavily
leveraged as Corzine had MFG leveraged, and it is now thought that MFG's
leverage may have been in excess of 100:1, they are still suicidally leveraged
and will likely stand massive, unmeetable collateral calls in the coming
days and weeks as Europe inevitably collapses. I now suspect that the reason
the Chicago Mercantile Exchange did not immediately step in to backstop
the MFG implosion was because they knew and know that if they backstopped
MFG, they would then be expected to backstop all of the other firms in
the system when the failures began to cascade and there simply isn't
that much money in the entire system. In short, the problem is a SYSTEMIC
problem, not merely isolated to one firm.
- Perhaps the most ominous dynamic that I have yet heard
of in regards to this mess is that of the risk of potential CLAWBACK actions.
For those who do not know, "clawback" is the process by which
a bankruptcy trustee is legally permitted to re-seize assets that left
a bankrupt entity in the time period immediately preceding the entity's
collapse. So, using the MF Global customers as an example, any funds that
were withdrawn from MFG accounts in the run-up to the collapse, either
because of suspicions the customer may have had about MFG from, say, watching
the company's bond yields rise sharply, or from purely organic day-to-day
withdrawls, the bankruptcy trustee COULD initiate action to "clawback"
those funds. As a hedge broker, this makes my blood run cold. Generally,
as the markets move in favor of a hedge position and equity builds in a
client's account, that excess equity is sent back to the customer who then
uses that equity to offset cash market transactions OR to pay down a revolving
line of credit. Even the possibility that a customer could be penalized
and additionally raped AGAIN via a clawback action after already having
their customer funds stolen is simply villainous. While there has been
no open indication of clawback actions being initiated by the MF Global
trustee, I have been told that it is a possibility.
- And so, to the very unpleasant crux of the matter. The
futures and options markets are no longer viable. It is my recommendation
that ALL customers withdraw from all of the markets as soon as possible
so that they have the best chance of protecting themselves and their equity.
The system is no longer functioning with integrity and is suicidally risk-laden.
The rule of law is non-existent, instead replaced with godless, criminal
- Remember, derivatives contracts are NOT NECESSARY in
the commodities markets. The cash commodity itself is the underlying reality
and is not dependent on the futures or options markets. Many people seem
to have gotten that backwards over the past decades. From Abel the animal
husbandman up until the year 1964, there were no cattle futures contracts
at all, and no options contracts until 1984, and yet the cash cattle markets
got along just fine.
- Finally, I will not, under any circumstance, consider
reforming and re-opening Barnhardt Capital Management, or any other iteration
of a brokerage business, until Barack Obama has been removed from office
AND the government of the United States has been sufficiently reformed
and repopulated so as to engender my total and complete confidence in the
government, its adherence to and enforcement of the rule of law, and in
its competent and just regulatory oversight of any commodities markets
that may reform. So long as the government remains criminal, it would serve
no purpose whatsoever to attempt to rebuild the futures industry or my
firm, because in a lawless environment, the same thievery and fraud would
simply happen again, and the criminals would go unpunished, sheltered by
the criminal oligarchy.
- To my clients, who literally TO THE MAN agreed with my
assessment of the situation, and were relieved to be exiting the markets,
and many whom I now suspect stayed in the markets as long as they did only
out of personal loyalty to me, I can only say thank you for the honor and
pleasure of serving you over these last years, with some of my clients
having been with me for over twelve years. I will continue to blog at Barnhardt.biz,
which will be subtly re-skinned soon, and will continue my cattle marketing
consultation business. I will still be here in the office, answering my
phones, with the same phone numbers. Alas, my retirement came a few years
earlier than I had anticipated, but there was no possible way to continue
given the inevitability of the collapse of the global financial markets,
the overthrow of our government, and the resulting collapse in the rule
- As for me, I can only echo the words of David:
- "This is the Lord's doing; and it is wonderful in
- With Best Regards-
- Ann Barnhardt