News & Analysis
Is Goldman Resignation Part of an Elite Plot?
Goldman Roiled by Op-Ed Loses $2.2 Billion ... Smith Resignation Costs Goldman Shareholders $2.2B ... Goldman Sachs Group Inc. (GS) saw $2.15 billion of its market value wiped out after an employee assailed Chief Executive Officer Lloyd C. Blankfein's management and the firm's treatment of clients, sparking debate across Wall Street. The shares dropped 3.4 percent in New York trading yesterday, the third-biggest decline in the 81-company Standard & Poor's 500 Financials Index, after London-based Greg Smith made the accusations in a New York Times op-ed piece. Smith, who also wrote that he was quitting after 12 years at the company, blamed Blankfein, 57, and President Gary D. Cohn, 51, for a "decline in the firm's moral fiber." They responded in a memo to current and former employees, saying that Smith's assertions don't reflect the firm's values, culture or "how the vast majority of people at Goldman Sachs think about the firm and the work it does on behalf of our clients." – New York Times
Dominant Social Theme: Dig up Pecora and let him run a commission.
Free-Market Analysis: Hoo boy. Here's what we really need: New "Pecora Hearings." is this why Goldman is being pilloried once again?
Is it a deliberate hit job of sorts? Certainly it is compelling. People hate the system so much that even the alternative news media goes along when it comes to Goldman Sachs.
It never seems to occur to anyone, even the brightest of the alternative media minds, that this is the way the power elite works. Do they ever set up a dialectic they don't control? "They" OWN Goldman Sachs it seems to us. Goldman works for "them" ... and "they" are offering up this firm like a sacrificial lamb.
But the stakes could not be higher. The end of the US system of capital-raising is being oiled and greased in Washington thanks to the constant drumbeat of anti-Wall Street news.
The guillotine is being sharpened. The screws are being tightened. It is almost time for the show to begin.
And what a show it will be: Political theatre designed to reduce what is left of Wall Street entirely to an adjunct of Washington, DC.
In the process it will accomplish what Alexander Hamilton long dreamed of doing 250 years ago: Reconfigure the Republic and turn it into a version of European nation-states.
After these new hearings take place, George Orwell's famous phrase will be fully operative: "If you want a picture of the future, imagine a boot stomping on a human face – forever."
This unpleasant sentiment has been the goal of certain individuals; but the proximate reality has drawn considerably closer in the past years now, ever since the disastrous economic collapse of 2008.
You ask why this is so. Why is it bad to have a Congressional Hearing to punish Wall Street and "throw the crooks in jail"? That's not the REAL reason for these upcoming hearings.
The real reason is to kill the last vestiges of the capital-raising mechanism in the US. Kill it. Kill it dead. After these new hearings take place, the ability for average people to raise capital – already doubtful – will be improbable indeed.
The other thing these hearings will attempt to do is to provide legitimacy for the current US political system and the penal-industrial complex. Over and over certain people complain that the "crooks" have not yet gone to jail.
But to put the "crooks in jail" will utilize the entire illegitimate structure of US power including the entirely corrupt US Congress, increasingly authoritarian law enforcement and murderous penal facilities themselves. The powers-that-be intend to capitalize on the righteous anger of US citizens to prop up the horrid system of US jurisprudence and Congress itself that only has about a 10 percent approval rating currently with the larger public.
This is only a secondary point, however. The primary goal is even more malicious. The power elite intends to make damn sure that if people make money in the future, it won't be via formal capital raising mechanisms.
The US has always been a nightmare for the elites that intend to run the world (and apparently control the world's central banks). One of the worst parts of the US system from a its standpoint is that average people have the capacity to make money. This isn't really the case in Europe where capital is doled out like royal titles: One needs, mostly, to be "connected" to get it.
But in the US even impoverished social misfits with a bright idea could raise money and build a business, even a big businesses. The power elite that now controls both money and media around the world has always found this to be unacceptable. First "they" helped create a formal "constitutional republic" and then with the advent of the Civil War, they helped destroy it.
They launched their apparent agent JP Morgan to control the wealth of the US and to create a series of phony crashes when he was fully empowered. The crash of 1907, which Morgan supposedly cured, seems to have been his creation as well.
It led directly to the Federal Reserve act and launched a century long inflation that has now devalued the dollar by about 99 percent. It is this monopoly central banking that has led to the current recessionary depression as well. The US is a hollowed-out economy. This was apparently the plan. The US and its republican culture stood in the way of world government.
On the way to the current disasters, regulatory democracy has taken root throughout the Western world. Regulatory democracy is supposedly the result of "market failures."
The biggest market failure that gave rise to regulations the way Helen of Troy's face supposedly launched a thousand ships, was the Crash of 1929 and the subsequent Depression. The putative result of these events was the so-called Pecora Hearings. And now the US is gearing up for another one.
We've been writing about this since last year. In fact, we were reporting on it as a dominant social theme long before there came "news" that a Pecora Hearing committee was forming in the bowels of Congress. Boy, were we surprised ... not. You can see one of our articles here: The Real Reason Bloomberg Sued to Open Up Fed Records?
Here at the Daily Bell, we observe the dominant social themes of the elite. We noticed that The Occupy Wall Street movement, funded ultimately by George Soros, seemed to spend an inordinate amount of time blaming Wall Street for the woes of the world. We even believe we know who is going to HEAD the committee. (Perhaps we're only "blowing bubbles," pretty bubbles, etc. ...) Just the other day, March 9, in the American Reporter, we see the following:
We are overdue for an accountability moment for the American financial industry. Fraud on a scale unimaginable has been committed, and the hard-earned savings of countless Americans has been looted, yet so far, only Madoff has taken the fall.
A bipartisan congressional panel armed with subpoena power is being formed to investigate causes of the Wall Street meltdown. The 10-member Financial Crisis Inquiry Commission (FCIC) will study how fraud, regulatory lapses, monetary policy, accounting, lending practices and executive pay contributed to the worst global financial crisis since the Great Depression.
The FCIC is modeled after the Pecora Commission, a U.S. Senate panel formed in the early 1930s that investigated the causes of the 1929 Wall Street crash. Those hearings, led by Ferdinand Pecora, produced the facts and momentum for the major New Deal financial reforms.
We need a Pecora-style investigation that will name names, ask tough questions and seek remedies. What we don't need is for the FCIC to be another version of the 9/11 Commission, a panel that was never allowed to fully and completely investigate all the lapses that led to the Sept. 11, 2001, terror attacks.
This is what we call an elite dominant social theme, folks. You got "yours" good and hard. And now it's time for Wall Street to pay.
The initial Pecora Hearings, run by Ferdinand Pecora, took place in the 1930s under Franklin Delano Roosevelt and resulted in the Wall Street we have today. In fact, the Pecora Hearings were based on farce and developed via fallacy.
The farcical part was that the Roaring Twenties and subsequent depression were the fault of Wall Street. Today, of course, historical fact points to illegal Federal Reserve inflation.
The Fed printed much more money than it had the right to print in the 20s and then after the crash, FDR deliberately covered up the crime by declaring bank holidays so that people would never cash in their paper receipts for gold.
When this didn't prove effective, FDR confiscated gold to make sure the banks, under the thumb of the newly founded Fed, would never have to redeem a penny. Thus we can see from the 1930s on, the Fed and the US government acted as a kind of criminal syndicate. This is forbidden history. It has only emerged popularly in the past decade, thanks to the Internet.
Today, thanks to free-market Austrian thinkers such as Ludwig von Mises, we know that the business cycle itself was responsible for the 1929 Crash and Great Depression. First, the Fed printed too much money and made everyone feel rich. Then, when the hot money circulated like sugar fueling a diabetic stroke, came the dreaded bust.
As a result, the Pecora Hearings were developed. The blame for the Crash and Great Depression were pinned on Wall Street and a bouquet of faux regulatory blossoms were cultivated: The SEC was formed, the NASD was created and outfits like the New York Stock Exchange were dubbed "self regulatory organizations."
The "public" stock market was invented, too. People tend to think there is a distinction between a private and public stock market but like so many other things in life, it is merely a regulatory distinction.
Let's not forget Glass-Steagall, as well. The idea of all of these nonsensical regulatory endeavors was to blame the crime of Federal Reserve monetary inflation on Wall Street chicanery. And now it is happening again. Goldman Sachs is being targeted for just this reason, in our view.
Of course, Wall Street DESERVES to be targeted. It is a shadow of a free-market facility, merely an adjunct of the power elite at this point. But it is not the MAIN MECHANISM of the coming authoritarianism. The main tools are monopoly-fiat central banking and government regulation.
The power elite flourishes via mercantilism. It created the Fed to be perceived as a PUBLIC facility and the Fed derives its authority from its PUBLIC brief. Government is not merely a helper in this regard, it is the prime enabler. Without enabling government regulation, the Fed would not exist; its credibility would not be buttressed.
The game is always ... blame Wall Street. We have no affection for modern Wall Street of its crookedness, but we can see an elitist meme as well as anyone. At this point Wall Street is hardly a private entity in aggregate. It, too, is a quasi-public facility with all the attendant market failure.
Were Wall Street actually PRIVATE – and run by the Invisible Hand – we'd be bigger boosters. But Wall Street's ruin and rapine is a direct result of the regulatory regime under which it is now "run." And the game, of course, is to pile up regulation on regulation until the banking mechanisms of the country are entirely dysfunctional and run out of Washington (at the behest of the elites running the shadow government).
We are therefore a bit ... suspicious of this executive director Greg Smith who quit Goldman in an open letter in the New York Times. He blasted Goldman Sachs and its unethical behavior. And the New York Times, a prime mouthpiece of the elite, was happy to report and report ... and report ... on it.
Our elves made a tiny bet among themselves that a Rhodes Scholarship (a sign of elite influence) lurked in Smith's background. We went looking and this is what we found, courtesy of an article in the UK Daily Mail:
... [Stanford University] confirmed he was given a scholarship but was not able to disclose how much it was for. After graduating, he applied for the prestigious Rhodes Scholarship which counts Chelsea Clinton among its alumni and would have allowed him to study at Oxford University in England for a year.
Smith was one of 10 finalists but only four got a place - and he missed out. A person familiar with the Rhodes application process said: 'If he got that far academically he was brilliant. 'It is not usual for people in such a position to take a job with a company like Goldman Sachs for a year or so between university and going on the Rhodes scholarship. Firms like Goldman seek them out as they are the best.'
Despite his successful career, in his letter Mr Smith said the 'proudest moments in his life' were getting the Stanford scholarship, being selected as a Rhodes Scholar national finalist and winning a bronze medal for table tennis at the Maccabiah Games in Israel, known as the Jewish Olympics. He said that was because those achievements 'came through hard work, with no short cuts.'
We're not as enamored of Rhodes Scholarships as is Mr. Smith. The Rhodes Scholarships come out of Oxford that, like Harvard, train and create the academic stormtroopers of the elite. Here's William Jasper on the characteristics that Cecil Rhodes valued for Rhodes Scholars:
"What are the characteristics that the Rhodes scholarship selection committees were to look for in candidates and nurture in their scholars? According to Rhodes' own criteria ... the traits most desired were(and are) "smugness, brutality, unctuous rectitude, and tact." ... According to Rhodes' co-conspirator Stead, it was expected that by 1920 there would be"between two and three thousand men in the prime of life scattered all over the world, each of whom, moreover, would have been specially - mathematically - selected toward the Founder's purposes."
Conclusion: We shall close with an observation that appeared in our previous article on what is manifestly planned for the US: "So ... remember this, please, as you listen to whatever Congress may muster after the next presidential elections (or even before). In the world of power and money, there is NOTHING that is as it seems. Countries NEVER go to war for stated reasons. Laws are NEVER passed for the reasons that are given. Regulations are NEVER propounded to "protect" the individual, but only to advantage the most powerful – the ones who can make the rules."
Posted by Abu Aardvark on 03/15/12 11:51 AM
'Why I am leaving the Empire, by Darth Vader'
Click to view link
(Sorry, I couldn't resist ... )
Posted by Spectator on 03/15/12 12:32 PM
You keep talking about "capital raising", but haven't the events of the past few years shown a financial industry less interested in productive investment and more interested in fee-seeking, asset-stripping, fraud, and recycling fiat fictions?
Where is your skepticism when it comes to Lloyd Balnkfein's claim that he is doing "God's work"? I am sorry to see DB become an apologist for GS.
Posted by SoCal fellow on 03/15/12 12:40 PM
Your interpretation of Smith's resignation makes sense, and your forecast of what lies ahead for Wall Street makes sense, too.
Thanks for keeping your sharp eyes and mind on events for us!
Posted by mucker on 03/15/12 12:42 PM
DB:I've never read a synopsis of the ruling elite that was clearer and more powerful than this... it says it all in a few paragraphs where others take chapters and volumes. This is the figurative "wooden stake".
Posted by firstname.lastname@example.org on 03/15/12 12:45 PM
Have to admit, I'm surprised that DB would defend as it were, Goldman Sucks. They are at the episcenter of evil on this planet.
But you now, I saw the Cecil Rhodes Scholarship bit too and wondered about that. In fact, I've been wondering for the last two years if the Soros / Zbigniew Brzezinski / NWO elite side of the planet isn't setting up the mega greed Wall St. elite for a big fall. Making mega-bucks is oh so yesterday when the real deal is power and control.
Makes you wonder what wars are being fought on the fields of ideology.
Reply from The Daily Bell
An apologist for Goldman Sachs! What is unclear about the following narrative, taken directly from the article, above ...
"The game is always ... blame Wall Street. We have no affection for modern Wall Street of its crookedness, but we can see an elitist meme as well as anyone. At this point Wall Street is hardly a private entity in aggregate. It, too, is a quasi-public facility with all the attendant market failure.
"Were Wall Street actually PRIVATE – and run by the Invisible Hand – we'd be bigger boosters. But Wall Street's ruin and rapine is a direct result of the regulatory regime under which it is now "run." And the game, of course, is to pile up regulation on regulation until the banking mechanisms of the country are entirely dysfunctional and run out of Washington (at the behest of the elites running the shadow government)."
Posted by kdervin on 03/15/12 01:15 PM
It does seem Greg Smith is playing the same role as Joe Wilson (aka Valeria Plame's husband), even down to the preferred conduit NYT.
Posted by James21 on 03/15/12 01:19 PM
Although this is likely a meme, it is pleasant to see Goldman Sachs taking a little heat. It would be more pleasant to see the BIS in the limelight, but this is a start. Regulation is equivalent to the preservation of the status quo, while the free market means change.
Kyle Bass coming out against a gold based currency explains the large marketing campaign around him over the past few months.
Make a difference, buy as many local products as possible.
Posted by seer on 03/15/12 02:19 PM
"But to put the "crooks in jail" will utilize the entire illegitimate structure of US power including the entirely corrupt US Congress, increasingly authoritarian law enforcement and murderous penal facilities themselves. The powers-that-be intend to capitalize on the righteous anger of US citizens to prop up the horrid system of US jurisprudence and Congress itself that only has about a 10 percent approval rating currently with the larger public."
While the above may be true it is hardly evidence of a covert effort to take over the world. These so-called investment banks have made 8 times the amount trading oil, etc. than they have from the traditional banking activities. Goldman Sachs and Morgan Stanley had record profits in 2009 despite a world wide recession. Follow the money trail. The 2010 Dodd-Frank bill was a strong effort to get these big investment banks out of the speculative oil market where they have served to drive up oil futures way beyond the barter trading that successfully functioned for decades. Read: OIL'S ENDLESS BID by Dan Dicker.
In reference to your conclusion I must say: NEVER SAY NEVER-YOU ARE WRONG
Posted by thefinancedude on 03/15/12 02:27 PM
All great points, I had my doubts, but there is a much bigger picture that is being overlooked and this is not being puzzled together... namely the over 300 high level banker resignations in the past 60 days... google it.
Couple that with the GREEK CDS clearing and this guy Mr Smith (matrix - hahaha) was the head of European ops dealing in US securities. the CME group just OPTED out of clearing these CDS's because its over... when those try and net out, the dominoes fall...
Posted by taxesbyanyothername on 03/15/12 02:40 PM
I think we should dig up Pecora and let him run a commission. He has been dead long enough that his brain has completely rotted away. That gives us 100% certainty that he will be the smartest one in the room. So, if they act on all of his recomendations, they won't screw up things any worse than they already are.
Posted by Spectator on 03/15/12 02:53 PM
Should have supplied this in earlier post. Click to view link
Posted by philitarian on 03/15/12 03:26 PM
There is certainly something being cooked up behind the scenes. Seems to be a rash of "whistleblowing" going on. Like a commentator said, this seems similar to the honeypot trap scheme..
Click to view link
Add that with the massive wave of bank resignations going on around the world (you gotta go to the darker places of the 'net to find some complete lists) and political discourse spinning out of control..
I'm still waiting for something big to happen during March Madness. It seems they like to pull shenangians off when the masses are distracted with moving balls..
Posted by Hoss on 03/15/12 03:50 PM
Rats leaving a sinking ship ... with a cover story. As mentioned in yesterday's article, this story wasn't up on Zerohedge for more than about ten minutes before speculation started about what kind of ploy they are trying to pull.
Reply from The Daily Bell
You have a link?
Posted by Hoss on 03/15/12 03:51 PM
P.S. -- When rats of this ilk are jumping overboard, maybe something is up.
Posted by Hoss on 03/15/12 03:58 PM
And another 'tell' that might be suspicious;
Even with free zero-risk income via Fed and Treasury shenanigans, and mark-to-fantasy fairy tales as balance sheets, and with the ability for the 'regulators' to announce the outcome as whatever they want it to be, now they are announcing that big banks like Citi didn't pass the 'stress test', their ridiculous 5% reserve might be in danger if things go south.
Since they make the news and all the numbers are imaginary, then if this is 'limited hangout', something might be on the horizon. What are they trying to condition us to accept?
Hope your savings aren't in paper.
Posted by Hoss on 03/15/12 04:06 PM
Link ... .
Click to view link
OK, I exaggerated. It was an hour and ten minutes before a reader calling himself Terminus C called it. (Hey, it was ten minutes after I got there, maybe.)
Posted by Don from the Republic of Lakotah on 03/15/12 04:49 PM
It's my understanding that the nominally Christian JP Morgan's derivative sins are four times greater than those of the nominally Jewish Goldman Sach's. Yet Matt Tabbi et al elusively flog Goldman Sachs whilst turning a blind eye to JP Morgan.
It seems that Tabbi's Zionist archetype may be getting a makeover.
Organization(s): JPMorgan Chase
Comment Text: ... On a side note, I do not work directly with accounts that would have been directly impacted by the MF Global fiasco but I have heard through other colleagues that [JPMorgan Chase] have involvement in the hiding of client assets from MF Global. This is another fraudulent effort on [JPMorgan Chase's] part and constitutes theft. I urge you to forward that part of the investigation on to the respective authorities. ...
Click to view link
Posted by concernedforfreedoms on 03/15/12 05:47 PM
Here's the link to the rats. Click to view link
Unsure if a hoax, I personally verified the links/stories on the first 102 back a week or so ago when that's all there was. Most were "out" between now and May.
The White Dragon Society is taking credit. They say they gave the elitists until March 31st.
Click to view link
Click to view link
Lord James of Blackheath speaking to Parliament in 2010. Click to view link
What is strange is that if you look Blackheath up on Wikileaks, you see he's still alive, but when you look at the cached version, it says he died Feb. 29 of an "acute heart failure while riding the GT Western into Newbury."
Click to view link The owner of IP address that modified it is from S.C.
Is this another elitist meme? Only time will tell. It's interesting to say the least.
Posted by taxesbyanyothername on 03/15/12 06:28 PM
Seems TPTB are not only manipulating us for continued power, but also sowing confusion just for amusement . I've yet to come up with anything useful rather than just pure speculation by pondering the resignations, yet it does seem to indicate something phunny Phil.
Posted by johnblenkins on 03/15/12 06:30 PM
All good publicity if your not the Goldan Sucks
Political Puppets Obama/ Romney.
"We rip off clients to get you elected"
JPM. must be funding Santorum, Via the Vatican.
Rumor JPM eyeing Popes alter silver to cover
Blyth's Short position.
All in all a good day for Silverbugs and Ron Paul fans.