Friday, June 12, 2009

Obama Fiddles, Congress Procrastinates and Rome Burns while Goldman, Morgan & the Rothschilds Reap Profits

It is early summer, one year since the oil price crisis nearly destroyed the world economy. Back then the Commodities Future Trading Commission (CFTC) disclosed a six month investigation of oil price manipulation was underway. A year later and the CFTC disclosed oil speculators controlled over 80% of all the oil derivatives contracts sold.

Goldman Sachs, JP Morgan, Citibank and Bank of America control the world derivatives market for major commodities. JP Morgan also controls the world gold futures market, which true insiders long considered a subsidiary of the Rothschilds, both the gold market and Morgan. So once again the boys on Wall Street have decided to drive up the prices.

Who really controls these markets? Take oil futures as an example. Successful manipulation would require control of several elements of the complex financial manipulation. These elements include being the recognized market expert or maker, having the funds to speculate in the market, and having the will to gamble by buying into the market. Goldman Sachs has played all three roles.

The research center of Goldman Sachs, the energy analysts and darlings of the media used a series of predictions last year to drive up the price of oil futures, revising the price predictions continuously until Goldman said oil would reach $200 a barrel. In spite of negative market forces and no justification for oil price increases the price spiraled to $147 a barrel.

Funds managed by Goldman provided the fuel to spark market activity while a wholly owned subsidiary of Goldman, J. Aron & Company, was the vehicle to buy and resell the oil futures contracts. Add to this the fact Goldman, and Morgan are major owners of the very oil futures market in London that sets prices and one wonders what the hell our government is covering up by refusing to attack the financial giants.

We know special interest money can buy a lot of influence in our nation's capitol but Obama and Pelosi are creating a whole new standard for proving the buying of politicians can be a most profitable investment. Look what happened when Goldman was about to lose $30 billion in loans to AIG for derivative purchases made by Goldman for AIG. Congress and the President gave AIG the biggest bailout in history and Goldman recovered 100% of the money owed it from the federal bailout.

Now bondholders and stockholders in Lehman Brothers, Bear Stearns, Fannie Mae, Freddie Mac, GM, Chrysler and a host of other companies certainly didn't recover 100% of their money and most lost all of their money. Why did Goldman and Morgan recover 100%? Ask our new president who long ago was taken in by Goldman executives at secret meetings in 2006 and 2007, whose employees gave Obama more Wall Street money than any other candidate and whose former employees are strategically placed throughout the new administration.

Goldman Sachs is the only financial company whose stock nearly tripled in value since Obama got elected. Goldman stock reached a low of $53.31 a share last November, by the March crash it climbed to $73.95 a share and today is over $150.00 a share, an astounding 281% increase in value.

Not even JP Morgan of the big four derivative traders achieved the same although Morgan was far ahead of most banking and investment houses. Morgan went from $23.38 when Obama was elected to a low of $15.90 in the March madness to $35.00 today, an increase of 49%.

Bank of America was at $11.47 last November, $3.14 in March and today is $11.98, a 4% increase leaving it slightly above where they started. Citigroup Chase was $3.77 in November, $1.02 in March and $3.41 today, a loss of about 10%.

The Obama Factor (since his election in November):

Goldman Sachs - 281% increase in value
JP Morgan - 49% increase in value
Bank of America - 4% increase in value
Citigroup Chase - 10% loss in value

Dow Jones - 16% increase since election in November
Oil Prices - 138% increase since December low
Home Values - 21% loss of value from a year ago
Gold prices - 33% increase since Obama election

Of course this is just the tip of the iceberg when it comes to master manipulating. There is the case of the 25-35 oil super tankers leased by oil producers and financial houses at a cost of about $63,000 a month each. These giant ships can carry up to 20 million barrels of oil per ship. If a ship was filled and parked in March the oil in that ship has already increased $700 million in value.

Then there is the potential for financial houses like Goldman and Morgan to use the information provided to them for due diligence by corporations seeking financing to call loans and options and virtually squeezing the distressed companies into bankruptcy. This gives them the opportunity to acquire the assets at fire sale prices like Morgan did with Bear Stearns and Goldman did with oil pipeline giant Semgroup.

Finally there is the potential conflict of interest I raised nearly three years ago of Goldman and Morgan being founders and major investors in ICE, the international company that now owns the London oil futures market.

One thing none of our illustrious politicians seem to be talking about is the long promised campaign reform to close all the loopholes in financing political campaigns. Nearly $1 million was poured into Obama's campaign by Goldman employees. Special interest money flowed at a record rate into all campaigns although some was disguised as individual contributions.

Obama shattered all records spending about $750 million while political parties and special interest groups spent a couple of hundred more million for his campaign, making him the first billion dollar candidate in our history. Apparently he raised so much money that the source of over $88.6 million cannot even be identified. To date and in spite of his promises, there has been no effort to introduce legislation to limit federal fund raising or to expose such massive unidentified contributions in future races.

Posted by Jim Putnam, Publisher at 1:52 PM
Labels: Barack Obama, economy, financial institutions, Goldman Sachs, JP Morgan, lobbyists, Nancy Pelosi, oil prices
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