Shocked to find out I DO NOT OWN MY STOCKS and Bonds, they are in a trust and I am a beneficiary of the trust...
If you take delivery of your shares, the broker will tell you "you don't want to do this"; why ?
- because when they are in the DTCC, and not physical shares delivered to you, they can be borrowed and short sold....
http://yourmortgageoryourlife.wordpress.com/2008/09/30/who-really-owns-your-money-part-one-the-depository-trust-clearing-corporation/
WHO REALLY OWNS YOUR MONEY? Part One: The Depository Trust & Clearing Corporation
By Anthony M. Freed
As the average American’s wealth continues to be whittled away by tumultuous markets, the rising cost of living, and the disastrous lack of leadership being displayed in the Nation’s Capitol, folks are just beginning to realize they have no idea who or what is in control of their wealth.
Many assume that the players they see and hear about on TV - like Hank Paulson, Ben Bernenke, or Alan Greenspan - work for the US Government, because that is who signed their paychecks. It is an easy mistake to make, as they look like Civil Servants in most every way: They are appointed by the President, they are confirmed by the full Congress of the
Servants then, right?
Well, no - not necessarily.
Most folks know absolutely nothing of the basic facts about how our finances are administered. They are unaware that the Federal Reserve is a privately owned company who’s shareholders are not citizens nor patriots, and who have no interest in the continued success of the
Just watch as the financial power centers are slowly shifted from the
Totalitarianism geared towards textbook Fascism is a much more favorable environment for Capitalism to thrive in than is our Representative Democracy, which has outlived it’s usefulness since the development of the Multinational Conglomerate.
After years of unrestrained borrowing and spending, during which time the vast majority of our fundamental production capabilities and jobs were displaced and reestablished over-seas using subsidies provided by American tax dollars, the United States has lost it’s title as the best place in the world to keep and grow your money. We have essentially lost our AAA rating with the world. We are insolvent, and the world is running on us.
How can we tell?
How about the $700BB withdrawal they are working on for Wall Street and foreign-owned banks? How about the GSE bailout? And the record number of recent trips banks have made to the discount window - the one they opened up to gamblers 9investment banks) months ago? FDIC funds for Indy Mac and others? And how many transactions like Countrywide’s $11.5BB loan from the Federal Home Loan Bank System do we know about? Or all the treasuries being auctioned to provide liquidity?
And we are still borrowing and spending - just like they keep asking us to. Aren’t you glad your Social Security is not in the stock market right now? They already talked us into 401K’s that are quickly losing their value, both in the markets and through inflation and devaluation. And they have already tricked us into taking all the equity out of our homes to finance our lifestyles, which are lavish by world-wide standards. What freedoms and advantages we enjoy in our lives are not the norm, and those freedoms and advantages are being eroded so rapidly as to be almost imperceptible.
The false confidence that we as a people collectively hold that this State of
The foundations for this wholesale withdrawal of our Nation’s wealth were first laid when the Federal Reserve System was developed, which will be covered in later posts. The crisis at hand today demands we look at some of the relevant parts players that are acting to subvert our Rights, our Middle Class, our National Security and the Constitution of the United States, before we get into the history.
I was worried that nihilistic, neo-liberal ‘neo-cons” were setting the stage for Fascism under some delusion called the Project for the New American Century dreamed up by the Bush family and their minions, but I was wrong. They started setting up all the mechanisms in earnest by the early 1990’s under President Bill Clinton, who I always thought was too chummy with George Herbert Walker Bush-41 and was really a closet Right-Winger.
Isn’t he singing McCain’s praises now when he is supposed to be bucking for Obama? It will not surprise me a bit when McCain dumps Sarah Palin and announces - no, not Joe - but Hillary C as his running mate. Probably just paranoia, but I would not put it past the Clintons or old Turd-Blossom Carl Rove.
Anyway, the point is of this series is to reveal some of the “undisclosed” workings of our financial system, which as it turns out has long been an un-natural, undemocratic and un-constitutional marriage of private power and public funds for generations, and to shed some light on these unprecedented actions of our
Federal Government which are technically displays of classic Fascist principles:
Various scholars attribute different characteristics to fascism, but the following elements are usually seen as its integral parts: socialism, nationalism, class collaboration, populism, militarism, totalitarianism, dictatorship, collectivism, statism, social interventionism, and economic planning… Fascist governments nationalized key industries and made massive state investments. They thought private property was to be regulated to ensure that “benefit to the community precedes benefit to the individual.” They also introduced price controls and other types of economic planning measures. Fascists promoted their ideology as a “third way” between capitalism and Marxian socialism.
The Depository Trust & Clearing Corporation is the biggest Bank in the World that you have probably never heard it. They happen to be the registered owners of 99% of all paper (stocks, bonds, securities, etc.). Scary, but true. And they have a perfectly good reason for it - with electronic trading, it is impossible to make timely changes to registered ownership of the paper.
The DTCC retains registered ownership while you as the peasant investor have the designation of beneficiary of the instruments. More on all of that below. First, lets see what the DTCC has to say about itself:
DTCC, through its subsidiaries, provides clearing, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks.
DTCC’s depository provides custody and asset servicing for 3.5 million securities issues from the United States and 110 other countries and territories, valued at $40 trillion. In 2007, DTCC settled more than $1.86 quadrillion in securities transactions.
DTCC operates through six subsidiaries - each of which serves a specific segment and risk profile within the securities industry:
National Securities Clearing Corporation (NSCC)
The Depository Trust Company (DTC)
Fixed Income Clearing Corporation (FICC)
DTCC Deriv/SERV LLC
DTCC Solutions LLC
EuroCCP Ltd.
DTCC’s customer base extends to thousands of companies within the global financial services industry. DTCC serves brokers, dealers, institutional investors, banks, trust companies, mutual fund companies, insurance carriers, hedge funds and other financial intermediaries - either directly or through correspondent relationships. Increasingly, DTCC’s customers operate both in the
In the
All services provided through the clearing corporations and depository are registered with and regulated by the
Wow - can you believe these guys are this central to everything that is going on and we have not heard a peep out of them? Wouldn’t you think that their expertise might come in handy right now? Maybe they are - but not for the benefit of you and me.
Why is there so much secrecy in our financial system? Why is so much of the system, and our wealth, controlled by so few people who are so far removed from the law and the Constitution? And how is it they have been getting away with it for so long?
(From a 2003 article The unknown 20 trillion dollar company, and you think mine are long! So here are excerpts) About the DTCC:
Jim McNeff, Director of Training for the DTC… stated “the DTC is a brokerage clearing firm and transfer center. We’re a private bank for securities. We handle the book entry transactions for all banks and brokers. Every bank and brokerage firm must secure their membership with us in case they become insolvent, so your assets are secure with DTC”. Yes, you read that correctly. The DTC is a private bank that processes every stock and bond (paper securities) for all
This is another in the list of Federal Agencies like the IRS, FDIC, SEC, and the like who have amazingly broad powers yet little oversight by or subordination to any branch of government. Have you eve heard of an audit by the GAO of the Federal Reserve? You won’t, they are not a government agency, just the “Board” and it’s “Chairman” are, formerly Alan Greenspan and currently Ben Bernenke. The Federal Reserve Board are only an “advisory council” for the President and the families that own the FED, but they are not the decision makers. (More on the Fed in subsequent articles).
The reason the public doesn’t know about DTC is that they’re a privately owned depository bank for institutional and brokerage firms only. They process all of their book entry settlement transactions. Jim McNeff said “There’s no need for the public to know about us… it’s required by the Federal Reserve that DTC handle all transactions”. The Federal Reserve Corporation, a/k/a The Federal Reserve System, is also a private company and is not an agency or department of our federal government, according to the 1998 Federal Registry. The Federal Reserve Board of Governors is listed, but they are not the owners. The Federal Reserve Board, headed by Mr. Alan Greenspan, is nothing more than a liaison advisory panel between the owners and the Federal Government. The FED, as they are more commonly called, mandates that the DTC process every securities transaction in the
Don’t we deserve to know why this is from someone, especially now, like the media or our elected officials? I guess not, so here is more:
“DTC is 35.1% owned by the
The banks and brokers are merely custodians for their clients. By federal law (SEC), they cannot hold any assets in the customer’s name. The assets must be held in the name of DTC’s holding company, CEDE & Co. That’s how DTC has more than $19 trillion dollars of assets in trust… or is it really in “trust” if the private
Federal Reserve System is technically holding it in their “unknown” entity’s name?
Obviously, if stock and bond certificates you’ve purchased aren’t in your name, then the “holder” (the Federal Reserve System) could theoretically refuse to surrender them back to you under a “national emergency” according to the Trading with the Enemy Act (as amended).
Between the market crash and terrorism attacks, I don’t think the powers that be will have too much trouble manufacturing more “national emergencies” with which to further erode our Constitutional Rights. Remember the Patriot Act? They have not even begun to use that on us yet.
And it appears President Clinton has paved the way for a Gulag Society with his 1994 Executive Order 12919 (which I will also examine in subsequent articles). Right now though, the DTCC:
Simply put, the Depository Trust Company absolutely controls every paper asset transaction in the United States as well as the majority of overseas transactions, and they now physically hold (as of April 1999) 99% of all stock and bond book-entrys in their street name, not the actual owner’s names.
REGISTERED HOLDER- A Registered Holder literally possesses, owns, and holds, his stock or bond with his name appearing on the face of the certificate. The company that issued the certificate has registered the owner’s (holder’s) name on their official books. This is the safest way to own a paper asset. You literally possess the fully registered certificate and only you can transfer or sell it. By all Rights and definition of law, you are the owner. You have it, you hold it, you possess it, and you keep it. You have the complete control over it.
BENEFICIAL OWNER- A Beneficial Owner is nothing more than a beneficiary, “One who is entitled to the benefit of a contract”- A Dictionary of Law, 1893. All book-entry stocks and bonds you purchase make you the beneficial owner, not the registered holder. The owner of a book-entry stock or bond is the entity or name that it is registered under.
Even the name of the shadow company that is the agent of who knows, possibly the IMF according to this article: CEDE. Can you believe that. CEDE. I kills me.
CEDE- To surrender possession of, especially by treaty. See Synonyms at ‘relinquish’.” -American Heritage Dictionary of the English Language, 3rd Edition of 1992.
And that is just the plan, just as soon as everything gets a little more chaotic in our once static lives. Living in an Empire at it’s peak is like living in the eye of the hurricane - and if you lived your whole life there under the still, blue skies, you really have no idea what is heading your way.
It’s quite obvious that the stock markets are going to ‘crash and burn’ at some future date and for some ‘unknown’ reason… The Great Depression is about to be repeated, and it will be as deliberate and manipulated as the first one that began with the stock market crash of 1929. We are, without a doubt, on the brink of the Mother of all economic Depressions.
Remember, this was penned in 2003. Pretty prophetic in light of this weeks news. So, how does your portfolio look now?
Your broker sends you a fancy accounting every month of your purported holdings, along with dividend and interest payments paid. The fact is, you only receive the benefit of ownership (interest and dividends) without holding title to your property. You are at the mercy of the registered owner, the DTC. If you don’t believe this is true, then call your broker right now and ask them who’s name is listed as the Registered Holder of your book-entry stocks and bonds. If you’re lucky, the broker will tell you “why of course you’re the Beneficial Owner”, then you’ll know the truth. He may emphasize to you that the stocks and bonds are being held in “safe keeping” for your own protection. This is broker language for “your stocks and bonds are held by the DTC in their street name as the creditor”.
I tried it, and they don’t like to talk about it. At all. I had the feeling they did not understand it completely either, but they swore it was only for expedience and nothing sinister. Fine. But why a private company, and why all the cloak and dagger mystery surrounding what is purported to be the most regulated, the most transparent of all industries?
The reality is that the very history of the Federal Reserve is much more akin to that of conspiracies, Masons and secret inner circles of power. I can’t blame the conspiracy theorists, when you examine even the most tame of the accusations, you find a hell of a lot more mysteries than answers. One more point from the article that I am looking into:
A greater consideration is just exactly who does the DTC hold these securities for? As the owner, who has the DTC pledged these securities to? Our research points to the Federal Reserve System, an international private banking cartel with major offices found in
The truth is, the securities you purchased and paid for with your hard earned money is collateral for the United Nations which is backed by the Federal Reserve System and it’s associated agencies, such as the International Monetary Fund. Is it any wonder that the UN can operate year after year with increasing budgets, but without sufficient funds? The UN has nearly $19 Trillion of backing and reserves, thanks to millions of duped Americans. We are financing the
Sounds so ominous, but then again it doesn’t when we go back to some of the text that DTCC has provided about themselves and some of their initiatives on their own website. Remember, they technically own your securities, they are a private corporation that only serves banks, and they use whatever fees they collect to increase their world-wide monopoly. From DTCC:
DTCC Organizes GREAT Collaboration with Global Peers: More than 40 delegates from 11 infrastructure organizations across the globe came together in New York in July for the first annual Global Relations Exchange and Training (GREAT) workshop hosted by DTCC. The program is aimed at cultivating relationships among colleagues from international clearers and depositories, and fostering collaboration on key trends shaping operations practices in today’s capital markets.
Robert Hegarty, managing director and practices leader, Securities & Investments and Insurance from the independent research firm the Tower Group, discussed in his presentation on securities industry trends the demographic shifts transforming the capital markets, and the challenges facing securities and investment firms and infrastructure organizations.
“There has been - and will continue to be - a major shift of wealth creation from the west to the east and, along with that shift, massive numbers of potential clients to win and service. Companies that don’t embrace this new global marketplace will miss their opportunity to determine their future,” said Hegarty.
Having several of DTCC’s executives meet with these international delegates demonstrates the priority the organization places on gaining a more global perspective. “The sessions were extremely productive in helping us gain a better sense of the value foreign markets place on our services, and the potential business opportunities we all have outside our home borders,” said Patrick Kirby, DTCC managing director, Asset Services.
The DTCC is bigger than GM, GE, Google, Microsoft and many other mega-companies - all added together. Are you sure you never heard of them? Maybe you should take a look for yourself, and then come back to YourMortgageOrYourLife.com for some more surprises.
Part Two: Inherent National Bankruptcy
(Article by Jim Carter - jscarter@fairpoint.netwith - with links added.
See Jim’s comments and more details at the end of this article.)
We are all familiar with a Ponzi scheme. The basic principle is to promise investors that money put into control of the operators will return high interest on the principal invested. Unfortunately, the confidence game promises to pay more interest than the principal generates, if the scheme generates any interest or gain whatsoever. The scheme will last as long as more investors are found whose invested principal will pay for the inflated interest due and payable to earlier investors.
The Federal Reserve operates a Ponzi scheme. Congress can pay for federal expenses with funds collected from taxes, imposts, and duties, but congress is never satisfied with this amount. The desire to buy votes from special interest groups, and financially assist politically connected friends (or is this redundant?), compels congress-critters to spend more, and this is identified as deficit spending. To finance this deficit, the Federal Reserve will create on their accounting books a line of credit equal in the amount of the bills, bonds, or notes the congress will authorize; i.e., the Fed receives the interest-bearing obligation on the full faith and credit of the United States and in return checks written by government agencies will be honored by the banking system. The accumulated deficits are identified as the national debt…
It must be observed the amount of money in circulation is increased by the amount of the principle (actually it is a line of credit that is generated) but the amount promised to be repaid is the principal and the interest. The interest is never created but it is promised to be repaid. It is impossible. The scheme will last only as long as more principle is generated to pay the interest. If all of the “dollars” in the world were used to buy back the bills, bonds, and notes, a national debt would still exist and be accumulating compound interest—but no “money” would exist outside of the Fed‘s vaults to repay the debt. The holders of federal debt would have a claim on the wealth of the
To make the scheme appear legitimate, the Fed sells a large percentage of the bills, bonds, and notes, with the help of the U.S. Treasury, to remove much of the currency generated by the scheme (multiplied by fractional reserves) from circulation. Japan and China hold debentures for approximately 25% of the total
As many have written, the new creation of money by deficit spending is the source of inflation. Those closest to the money printing press will live better than those further away, and the farmers, as a class, are the most distant from the new money. This new money (VIDEO) is a way the wealth of the nation is confiscated from the people, and the people are for the greater part, completely unaware of their loss.
Some sources suggest the Fed has never been audited. That is not totally accurate. My 360 page copy of the 1996 Annual Report to Congress by the Board of Governors obtained after several calls to D.C., contains considerable information on the financial status and revenue transfers of the banks, branches, and the system, including interest earned from holdings of national debt. It is audited and signed by Price Waterhouse, LLP, page 275. All federal government entities are audited by the GAO, are they not?
It is also known that real estate owned by the Fed (including district branches) is subject to local property taxes and the tax bills can be verified at the county assessors office; real estate owned by the federal government is not subject to local property tax. Salaries of employees are, with few exceptions, set by the Fed with paychecks drawn on the Fed; they are not government civil service employees paid from the
No information is found that suggests an audit of any specie holdings, nor is there any information as to who owns controlling stock (Class A). Congressman McFadden went to his grave unsuccessful in his attempts to determine who owns the fed.
When faced with litigation, the Fed can choose, for their benefit, the mantle of a government agency or that of a private business. An entity that can select the most advantageous identification is not controlled by the law; it is above the law.
How long will the Fed be able to continue the Ponzi scheme? A common measure of the solvency of a corporation is the ratio of profit to the cost of debt service. A company that makes 30 times what they must pay for interest on long term debt is much more stable than one with a ratio of 3. Every year the US debt service cost increases, and the increase is exponential. Interest on the national debt now consumes 20 to 25% of the taxes collected by the federal government. It is only a matter of time before taxes will not be able to service the national debt.
National bankruptcy is inevitable. Of course, people who do not pay taxes, or terrorists, will be blamed for causing the problem just as the stock market collapse was blamed for causing the depression of the 30’s.
The Fed was pulling currency out of circulation in the late 1920’s and the stock market was the first to feel the impact with margin calls. Local banks were compelled to call notes that were normally rolled over from year to year to meet increased reserve requirements and the stock market was the most liquid. When the economy appeared to be stabilizing, the Fed repeatedly tightened the money supply to deepen the depression.
Gold backed currency was withdrawn. When the economy was expanded to pay for (the contrived) WW II, debt-bearing currency (with interest payable to the Fed) replaced the previous gold backed interest-free money. The Fed had installed their Ponzi scheme. Your grandfather who lost his farm during the depression probably never knew what hit him.
Today, the Fed is selling government debt at one to two percent. Is the government getting a bargain? Currency is available but demand is low. Major capital investments by businesses are being deferred as production facilities are being located overseasto escape oppressive taxation levied upon employees and operations, in addition to avoiding government regulations, restrictions and fines for variances. The price of a low interest rate for government debt is the destruction of the tax base. (In reality, congress does not care what interest rate is paid. Congress does not have to make a profit to stay in business—let the people pay whatever. However, interest earned by the Fed and financial institutes holding government debt is reduced.)
The economic rape of the public will be perpetuated as long as possible. Ever increasing deficits are necessary to pay the interest and make the economy look good. The increasing deficits will escalate the cost of debt service exponentially. Congress-critters will not complain of the system or threaten not to pay the interest—the Fed might not honor their pay checks. The Fed controls the testicles of congress.
Deficit spending to pay for the interest is now sold to the public as the cost of a war. How long can the illusion be maintained??
Rampant inflation is already being seen in the price of fuel and the price of steel. It is not unrelated that fuel and steel are two prime essentials of the conflict in
How long before the citizens realize the government’s ravenous economic appetite will not be sated short
of a complete economic collapse (AUDIO) ?? (AUDIO Part II).
But then again, the collapse is inherent by the design of the economic system; it is only a matter of time.
History is full of economic systems (VIDEO) based upon the government’s ability to confiscate the wealth of the citizens that inevitably result in self-destruction.
This entry was posted on October 3, 2008 at 12:20 pm
No comments:
Post a Comment