How Ideological Subversion Enables Financial Fraud

by J. S. Kim
Managing Director & Chief Investment Strategist, SmartKnowledgeU

http://www.smartknowledgeu.com

BELOW ARE LINKS TO A THREE PART VIDEO SERIES IN WHICH I DISCUSS how bankers have used the concept of ideological subversion to brainwash hundreds of millions of retail investors into accepting harmful propaganda that allows them to build their bottom line at the expense of the investors while simultaneously convincing investors to ignore alternate behavior that would be beneficial to their financial welfare. Ex-KGB agent Yuri Bezmenov explained the process of ideological subversion as a four stage process utilized by the Soviet Union to brainwash its citizens during the cold war: (1) Demoralization; (2) Destabilization; (3) Crisis; and (4) Normalization.

I have slightly modified the time frames of the four above stages explained by Bezmenov to fit the model that bankers have cleverly executed against the people over the past several decades. The process of ideological subversion ensures that billions of people are unable to change their behavior and take sensible tactics to defend the welfare of their families despite being presented with an abundance of evidence that challenges and refutes their current harmful belief system.

The inability of the masses today to reach sensible conclusions even in the face of abundant evidence is the reason why we still have ludicrous debates in the media today about signs of economic recovery in the US and Europe despite an abundance of evidence that contradicts such a conclusion. The inability of the masses to reach sensible conclusions when struck over the head with cold hard facts is the reason why today we still have ludicrous debates regarding the purchasing power stability of gold versus fiat currencies. The inability of the masses to reach sensible conclusions today is why commercial investment firms can still sell the masses the kool-aid of strong fundamentals as the number one reason behind rising stock markets when creative accounting 101 is the primary driver behind improved earnings statements for almost global banks worldwide.

The inability of the masses to formulate logical opinions is the reason why hundreds of millions of investors today still subscribe to one of the worst investment strategies ever – diversification. And a deliberate process called ideological subversion executed by bankers in the open for all to see can explain all of the aforementioned aberrant behavior.

Perhaps a brief explanation of how ideological subversion is achieved can awaken the sleeping zombies from the destructive forces of financial fraud that bankers are openly committing today and help aid them in taking their first step towards choosing truth over propaganda. Here are the links to the three videos:

How Ideological Subversion Enables Financial Fraud, Part I

How Ideological Subversion Enables Financial Fraud, Part II

How Ideological Subversion Enables Financial Fraud, Part III

Obama signs a bill that lets banks have America over a barrel once more

by Liam Halligan
Originally published 26 Jul 2010, The Daily Telegraph

Last week, President Obama signed into law the Dodd-Frank Wall Street Reform bill – hailed as the most sweeping overhaul of US financial regulation since the 1930s.

President Obama signs the Dodd-Frank Wall Street Reform and Consumer Protection Act
in Washington on July 21.

“BECAUSE OF THIS LAW, THE AMERICAN PEOPLE WILL NEVER AGAIN BE ASKED to foot the bill for Wall Street’s mistakes,” Obama boomed at the schmaltzy signing ceremony, amid bursts of applause. “These reforms will put a stop to a lot of the bad loans that fuelled this debt-based bubble,” the President gushed to America and the rest of the world. “This bill also empowers consumers, delivering the strongest consumer financial protections in history.”

It would be reassuring if we could agree with Obama, concluding that Dodd-Frank will help to prevent the next systemic crisis and associated bail-out of “too-big-to-fail” banks. Reassuring, but wrong.

For despite some marginal regulatory improvements, this is no Rooseveltian legislative milestone. Amid the hype and back-slapping of last week’s launch, the sad reality is that Dodd-Frank fails to address the fundamental problems that resulted in the sub-prime fiasco and the related damage to not just America, but the entire global economy. The inherent feebleness of this door-stopping bundle of statute and its lack of desperately needed substance, was brilliantly captured by Laurence Kotlikoff, a highly-respected professor of economics at Boston University. “This law is like being invited to dinner and served pictures of food,” Kotlikoff remarked.

It would be tempting to smile at such a wry observation if the situation it described wasn’t so depressing. For what the US political establishment’s non-response to the credit crunch illustrates is this: such is the lobbying power of the big Wall Street institutions that they not only caused a global economic crisis and then forced the US government to pay for a massive bail-out, but then used a slice of that bail-out cash to bribe politicians with campaign donations in order to block rule changes that might prevent a repeat performance.

That leaves the politicians and high-flying bankers happy, of course, while regular citizens – and their children and grandchildren – foot the multi-billion dollar bill. The principal function of a financial services industry is to link savers with investors and creditors with borrowers, so facilitating broader commercial activity. Such intermediary functions are crucial to economic progress and can be the basis of a profitable and socially useful business. What we’ve created, instead, is a group of institutions that between them comprise nothing less than a financial oligarchy. These guys have Western taxpayers over a barrel. And what’s alarming is that there is almost nothing in this bill that will stop yet more too-big-to-fail calamities. Mr President, you have missed a historic opportunity and, for that, history’s judgment will be severe.