View Full Version : Crisis by Design

Ed Jewett
05-18-2011, 03:56 AM
Crisis By Design: The Untold Story of the Global Financial Coup and What You Can Do About It

is a book written by John Truman Wolfe, published by Roberts Ross Publishing of Englewood Colorado and Los Angeles California. It appears to be an essentially self-published collection of articles bound into a single volume.

He has a web site for the book ( http://www.crisisbydesign.com/ ) and there is a series of twelve YouTubevideos that begin here: http://www.youtube.com/watch?v=teumnUMXxV4 .

The author, according to his website, draws on experience as a senior credit officer in two banks, and co-founder of a prestigious Los Angeles-based business management company, where he is a registered investment advisor; he is also the author of America The Litigious, Mind Games, and The Gift.

There are two books he credits with turning him into a “financial sleuth”: the first a book called The Wall Street Gang, by a successful Los Angeles-based money management named Richard Ney, which explains how “specialists” – those who handle the buy and sell orders of major stocks – manipulated and controlled the New York Stock Exchange. The second book is entitled How to make the stock market make money for you, written by Ted Warren; the book uses long-term graphs to show the manipulation of virtually all major stocks and most of the commodities.

Wolfe says these two books provide clear evidence “that the major investment markets – stocks and commodities in particular – are controlled..... Orchestrated by forces unseen by the general public, sophisticated public relations campaigns are rolled out via well-connected media networks to spin the strategic messages that flank the campaign du jour.”

“Sometimes the negative PR campaign is designed to take the player all the way out, a la Lehman Brothers on September 15, 2008, as opposed to driving the price down so it can be purchased for pennies on the dollar, a la Washington Mutual 10 days later.”

The book is a primer on the secretive organizations that run the world’s and the nation’s financial systems; they include the World Bank and its sister organization the International Monetary Fund,“global financial predators that have turned three-fourths of the planet into debt-ridden junkies”.

“Sometimes evil was hard to confront. But I tell you without equivocation that activities of these two international banks have been motivated by a cold, calculated plan to control the populations of Earth is not a matter of studying their conduct for their strategic plans started decades in the past and run decades into the future.”
When the International Monetary Fund Makes a loan to a Third World country, they require the country to grant the IMF “control over a wide range of social policies” (such as family planning and contraception, agricultural production, tax policies, and others), many of which have no bearing on the ability of that country to repay the loan. The IMF and the World Bank are “engaged in an international crime spree that spread economic terrorism around the planet like a fiscal virus.” They work through an externally created currency crisis and economic turmoil, the apparent arrival of their white horse, and the “saving” loan with its Orwellian loan agreements; it is a system that has been in place for a long time.

The current national and global financial crises are by design; there has been a coup d’état– a hostile takeover – of our financial systems. It is an attempt to create a single “global monetary authority”, as was announced by the president of the New York Federal Reserve Bank in March 2008, none other than Timothy “Pretty Boy” Geithner.

In addition to the IMF and the World Bank, Wolfe’s primer on secretive control also focuses on the Bank of International Settlements. The BIS is an organization behind the IMF and the World Bank “that is calling the shots”, “the key puppeteer”. [Deep historical research, however, may show even deeper levels of puppetry which, when combined with investigation into the deep politics of the past 250 years, may demonstrate intertwined networks and connective tissue that generate waves and an epidemic of what Wolfe calls “economic pornography”.]

Currently, for example, one can look at the accounting rule called Basel II, promulgated by the Bank of International Settlements.

“Central banks [of which “the Fed” is the United States example] are privately owned the financial institutions that govern a country’s monetary policy and create that country’s money.

The Bank for International Settlements (BIS), located in Basel, Switzerland, is the central bankers’ bank. There are 55 central banks around the planet that are members, but the BIS is controlled by a Board of Directors, which is comprised of the elite central bankers of the 11 different countries (the United States, the United Kingdom, Belgium, Canada, France, Germany, Italy, Japan, Switzerland, the Netherlands and Sweden).

Created in 1930, the BIS is owned by its member central banks, which, again, are private entities....”


“On April 2, 2009, the members of the G 20 (a loose knit organization of the central bankers and finance ministers of the 20 major industrialized nations) issued a communiqué that gave birth to what is no less than big brother in a three-piece suit. The communiqué announced the creation of the all-to-Soviet-sounding financial stability Board (FSB).” According to former Clinton adviser and political strategist Dick Morris, in an article for the bulletin on April 6, 2009, “the FSB is also charged with “implementing… tough new principles on paying compensation and to support sustainable compensation schemes and the corporate social responsibility of all firms.”

That means that the FSB will regulate how much executives are to be paid and will enforce its idea of corporate social responsibility at “all firms”. Keep in mind that the people who are making up these rules are from private institutions answerable to no one. They make their income “by charging interest on the money they loan to” various governments.



“Known as Hitler’s bank, the Bank for International Settlements were arm in arm with the Nazis, facilitating the transfer of gold from Nazi-occupied countries to the Reichsbank, and kept their lines open to the international financial community during the second world war. [And there is more behind this as well....]

The BIS is completely above the law.

It is like a sovereign state. Its personnel have diplomatic immunity for their persons and papers. No taxes are levied on the bank or the personnel salaries. The grounds are sovereign, as are the buildings and offices. The Swiss government has no legal jurisdiction over the bank and no government agency or authority has oversight over its operations. No agent of the Swiss public authorities may enter the premises without the express consent of the bank. The bank exercises supervision and police power over its own promises. The bank enjoys immunity from criminal and administrative jurisdiction.

In short, they are above the law.

In a 2003 article titled “Controlling the world’s monetary system: the Bank for International Settlements,” Joan Veon wrote:

The B S is where all the world’s central banks meet to analyze the global economy and determine what course of action they will take next to put more money in their pockets, since they control the amount of money in circulation and how much interest they are going to charge governments and banks for borrowing from them…

When you understand that the VIS pulls the strings of the world’s monetary system, you’d then understand that they have the ability to create a financial boom or bust in the country. If that country is not doing what the moneylenders want, then all I have to do is sell its currency.”

When these same people run economic policy inside the United States, they dictate financial policy and effectively control domestic policy at least indirectly.



“There is no oversight here. Not by you, not by Congress, not by anybody. No oversight over a handful of central bankers who operate out of a clandestine organization that is above the law and is responsible for having implemented and enforced the “standards” that froze world credit markets and precipitated the worst financial crisis in the planet’s history.”

Wolfe’s book documents conclusively that, inside United States, it has been “government by Goldman Sachs”. On page 67, Wolf mentions Alan Greenspan, who “not only sat on the Board of Directors of the BIS, he was also of course the chairman of the Federal Reserve Bank. From this position, he kept interest rates suppressed and abnormally low levels, ushering in a lethal binge of credit excess in America; advanced the Community Reinvestment Act, which mandated mortgage lending to anyone who drew breath (and some who didn’t); and, along with Robert Rubin and Larry Summers, actively fought efforts to regulate the exploding market in toxic financial instruments called derivatives. On page 76, he discusses Robert Rubin who, having received 50 million in compensation from his prior employer Citigroup, spent 26 years with Goldman Sachs, ascending to the position of cochairman, and then moved into the Clinton Administration as the assistant to the Pres. for economic policy. In 1995, Clinton appointed him the 70th United States Sec. of the Treasury. [Wolfe fails to mention the marriage of Clinton’s daughter to a former investment banker with Goldman Sachs.]

The hallmark of Rubin’s years in Washington was deregulation, ensuring that “regulatory safeguards were gunned down like victims in LA drive-by shooting”. Wolfe notes “an agenda to open the floodgates to unbridled speculation by banks that set up the industry for a financial Hiroshima”. [That’s an interesting choice of phrase, given the role of the BIS in handling back channel diplomatic feelers about peace from Japan in July 1945, as documented by Allen Dulles in his book The Secret Surrender, Globe Pequot Press 2006 (originally published by Harper & Row, New York, 1966), and given the recent triple Black Swan of earthquake\tsunami\meltdown in Japan.]

“When Rubin was cochairman of Goldman Sachs, the firm underwrote billions of dollars in bonds for the Mexican government. When the Mexican peso tanked a few years later, Ruben, then Sec. of the Treasury, arranged a multibillion-dollar taxpayer bailout, which, according to reports, saved Goldman a cool $4 billion. Kind of a dress rehearsal for Hank Paulson’s trillion dollar raid on the U.S. Treasury, which channeled tens of billions into the womb from where which he came -- Mother Goldman.” [Paulson also served as a Goldman CEO.]

“At Treasury, Rubin groomed to protégés that helped craft the multi-trillion dollar financial bailout and that [were later] in charge of US financial policy: Larry Summers and Timothy Geithner. Summers, though not a formal Goldman alum, is a full’s fully certified Ruben deregulation clone. He was chief economist for the World Bank in the early 90s and later served as Rubin’s deputy secretary of the treasury.… Timothy Geithner, like Summers, worked for Rubin at treasury during the Clinton Administration and was a Rubin favorite. He stayed on during Summers’ tenure and then snagged the powerful presidency of the New York Federal Reserve Bank.…”

Wolfe notes an interview on 7/3/2009 in which the former US assistant secretary of the treasurer, Paul Craig Roberts, was asked “Does the US secretary of the treasury work for the people does he work for the banking system on Wall Street?”, to which Roberts replied, “Geithner works for Goldman Sachs.”

Since then another former Goldman chairman, Jon Corzine, has been a top Obama economic advisor. “In fact, he was on the shortlist to become secretary of the treasury.” 

Says Wolfe, “… 1600 Pennsylvania Avenue was viewed as one of the bank's more important operating divisions.”

Under Geithner, the number two man at Treasury was the former vice president for government relations at Goldman.

On page 85-86, describing Ed Liddy, Wolfe details how Paulson “coughed up 85 billion of your tax dollars to take control of AIG.” Eventually $182 billion was poured into the insurance company. “AIG turned right around and paid it out to the investment banks to which it owed money. The bank to cut the largest payout was… of course, Goldman Sachs–a cool $13 billion. The money simply passed from your paycheck to the U.S. Treasury, from the treasury to AIG and from AIG to Coleman (and other banks).” Goldman Sachs Board member Ed Liddy was tapped to be the new CEO of AIG. “Goldman made billions from AIG earlier as well. AIG didn’t know this. Neither did Coleman’s clients. You see, despite the fact that they had collected enormous fees selling financial products that were “insured” by AIG, Goldman Sachs helped in his lease sold AIG short.… On the one hand, they sold financial instruments to their clients, which carried high investment ratings because AIG insured buyer against loss. At the same time, they made investment “bets” for their own account against AIG. Estimates are that they made $4.7 billion betting against AIG while selling the AIG guaranteed products to their clients.”

On pages 87 through 91, Wolfe discusses the bailout. This featured “Paulson and his lapdog, Ben Bernanke, and their assault on Congress, with threats of riots and martial law as they fear-mongering the TARP (Troubled Asset Relief Program) through the House and Senate winding up with a cool trillion dollars to “save” the banks.”

In shades of the secrecy of the Fed and the complete lack of any oversight and accountability on the part of the BIS, the bailout read in part “Decisions by the Secretary pursuant to the authority of this act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.” [Emphasis mine.] As Wolfe notes “this was nothing more complicated than another burglary in plain daylight…”

Wolfe notes the roles of John Thain, former president and co-chief operating officer at Goldman Sachs, at Merrill Lynch, as well as Robert K Steel at Wachovia which had paid Goldman Sachs $77 million in fees for financial advice, who secured $225 million in golden parachute payments for himself and his fellow executives as the bank was self-destructing, as well as Neel Kashkari, who spent 35 years at Goldman as a vice president and then headed the Office of Financial Stability at treasury where he was in control of the $700 billion in bailout funds. Also noted are Reuben Jeffrey, Dan Jester, Steve Shafran, Kendrick Wilson III, Edward Forst, and Joshua Bolten (Executive Director for legal and government affairs for Goldman Sachs prior to joining Bush’s 2000 presidential campaign and becoming his chief of staff in 2006). Also mentioned are Neil Levin, a former Goldman vice president, Gary Gensler, who spent 18 years at Goldman Sachs as “the most aggressive derivative trader on Wall Street” prior to being confirmed as President Obama’s commodity futures trading commission director. Also, Duncan Niederauer, partner and managing director at Goldman Sachs before becoming the chief executive officer of the New York Stock Exchange European outlet, EuroNext [an interesting moniker consider what is going on inside the Europeran Union]. Wolfe’s checklist moves on through pages 95-106 to note Stephen Friedman ( former chairman of the New York Fed, former CEO of Goldman Sachs the chairman of the national economic Council under George Bush in 2002 and later the chairman of Bush’s Foreign Intelligence advisory Board), William Dudley (Geithner’s replacement at the NY Fed), Robert Zoellick (president of the World Bank after serving as vice chairman, international, of the Goldman Sachs Group) (Wolfe says “Zoellick walks in the shoes of great humanitarians like uber-neocon Paul Wolfowitz, “architect of the Iraq war,” and Robert McNamara, the Johnny Appleseed of Agent Orange”), and Mario Draghi ( a partner at Goldman Sachs until 2006, the governor of the Bank of Italy -- Italy’s central bank--, a member of the Board of Directors of the BIS, and the chairman of its Financial Stability Board).

As Wolfe notes, “the financial incest begins to smell pornographic”.

“… The World Bank makes loans to third world countries, countries that can’t borrow elsewhere. The loans carry conditions the dictate domestic policy “adjustments” in health, education, tax policy, judicial matters, agriculture, manufacturing…”

“Sarah Anderson, the director of the global economy program of the Institute for Policy Studies in Washington put interesting spin on [the matter]:

“Medieval doctors always prescribed the same “cure”; no matter what the ailment, they applied leeches to patients and lead them. For the past decade and a half, critics have likened to the World Bank and the international monetary fund to these doctors. The two institutions have thrown millions of people deeper into poverty by promoting the same harsh economic reforms… regardless of local culture, resources or economic context. Strapped with heavy debts, most developing countries have reluctantly accepted these reforms, known as structural adjustment programs (SAPS), as a condition for receiving IMF or World Bank loans.”

“And it is the newly-created Financial Stability Board, operating as an arm of the Bank for international settlements, that now structures and dictates the rules and regulations to be carried out by the central banks of the world. And given the fact that the central banks essentially operate independently of their national congresses or parliaments, the FSB now controls the monetary policy of the planet.”

“While Geisler and company are quietly empowering the financial stability Board (FSB), the United States and every other industrialized nation on earth are gushing money into their economies as if the printing presses were broken water mains.” It is an act of fiscal alchemy.

“And just to make sure that the planet drowns in the stuff, the International Monetary Fund just announced [in September 2009] that they had created $250 billion worth of SDR’s and they’re going to spread them around the planet like a monetary Johnny Appleseed. SDR stands for “special drawing rights.” This is a currency that has been created by the IMF out of…… Finnair. They said his money and it is. The SDR is “backed” by the dollar and the euro. These in turn are backed by… the same thin air.”

“But here’s an interesting little secret: it wasn’t really the IMF that created SDR’s. A recently declassified CIA documents makes makes clear that the fiscal geniuses at Langley did. In a secretly classified memo dated 12/9/65, the agency discusses manipulating the gold market with central banks and the need for more “liquidity” because of the dollar’s perceived weakness at the time.) Says the memo (see pages 124-125) “our strategy is to supplement gold and dollars with a new international asset, special drawing rights (SDR).”

“One of the primary reasons the country goes in debt is to finance a war. Wars are costly. The create deficits, which require bartering… if there isn’t a war, someone can simply start one….” Wolfe then goes on, on pages 127-128 to present, for those who are not familiar with it, the history revealed in the White House tape recordings dated March 10, 1964 of the conversation between Pres. Johnson and then Secretary of Defense Robert Mack Tamara, Johnson’s address before Congress on eight 464 in which he seeks a joint resolution from Congress expressing support for all necessary action and, the subsequent joint resolution passed by Congress on eight 764 known as the Gulf of Tonkin resolution. Wolf notes that the Vietnamese adventure cost the US government $200 billion in 1974 dollars ($686 billion in 2008 dollars). Wolfe also notes that McNamara and the national security agency later admitted that no attack ever occurred in the Gulf of Tonkin.

Wolfe suggests a political plan of action which includes the following:

the cancellation of Basel II;
removal of the provision within TARP that permits the Fed to pay interest on deposits;
the creation of the mandate that any funds given under the TARP bailout or that are to be given to the banks in the future must be used to lend to deserving borrowers;
a repeal of the Community Reinvestment Act;
reinstatement of Glass-Steagall;
a restoration of mandated capital requirements to investment banks;
getting rid of the Federal Reserve Bank and establishing a monetary system based on production and property; and
control of monetary authorities with accountability and oversight are governments and a system of checks and balances.

On a personal level, he recommends transition of personal funds into a mix of small-denomination silver and gold coins, as well as larger holdings in both silver and gold.