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Commodities Futures Options Broker Closes Operations
Because of the hopeless corruption stacked against customers wanting honest dealing
when speculating on the (China-owned) Chicago Merchanitle Exchange
which dominates commodities futures.
By Dick Eastman   
(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 the public?
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 now?
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 here:  http://www.rense.com/rewer.htm
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 Capital Management,
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 political cronyism.
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 of law.
As for me, I can only echo the words of David:
"This is the Lord's doing; and it is wonderful in our eyes."
With Best Regards-
Ann Barnhardt
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