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How Chinese Oligarchs Used Fake Trade Invoices To Launder Almost $1 Trillion Globally

Tyler Durden's picture




 

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

Screen Shot 2015-05-04 at 11.34.56 AM

Our estimates show that the developing world lost US$991.2 billion in illicit financial flows in 2012, over ten times the amount of official development aid received by these countries in that year, and greater than the amount of net foreign direct investment received. From 2003 – 2012, US$6.6 trillion left developing country economies illicitly.

 

Illicit outflows from developing countries increased at a trend rate of 9.4 percent per annum in real terms over the time period from 2003 to 2012. Though growth rates of IFFs tended to be higher before the financial crisis, their volume continues to climb. Over this time period, illicit financial flows were equivalent to 3.9 percent of developing world GDP on average.

 

Save for a brief slowdown during the financial crisis, illicit financial flows have been allowed to grow unchecked over the past decade. In 2012, illicit outflows reached a staggering new peak of US$991 billion.

 

– From the Global Financial Integrity Report: Illicit Financial Flows from Developing Countries: 2003-2012

While the U.S. government loves to target and imprison small time so-called “money launderers” such Bitcoin pioneer Charlie Shrem, the real money launderers, the ones who help drug cartels and pump criminally sourced money into foreign real estate thus pricing out domestic populations worldwide, face no consequences whatsoever. I’ve explored this hypocrisy on many occasions, most recently in the post, Some Money Launderers are More Equal than Others Part 2 – CEO of BitInstant is Arrested. Here’s an excerpt:

Last May, I wrote an article titled: Some Money Launderers are “More Equal” than Others, which likened the U.S. government to the pigs that ruled the roost in George Orwell’s classic novel Animal Farm. In that article, I decided to compare the way the “authorities” used money laundering laws against Liberty Reserve, versus the way they tip-toed around massive money laundering for Mexican drug cartels that HSBC engaged in. Since I wrote that article, JP Morgan has been fined tens of billions of dollars for a cornucopia of criminal activities. Meanwhile, we have yet to see a single executive arrested or put behind bars. Why?

 

I think it is quite obvious. The United States’ “economy” has devolved into nothing more than a state-sanctioned criminal racket. A handful of oligarchs and the corporations they control, are immune from prosecution no matter what they do. They have a complete and total license to steal with impunity. Meanwhile, if a peasant is caught stealing 10 dollars or found with a dime bag of weed, it is jail for life. ‘Merica.

 

So now I turn your attention to the breaking news that Charlie Shrem, the impressive, young and very talented kid behind Bitcoin exchange BitInstant, has been arrested.

Shrem now sits in a prison cell for his victimless non-crime. This is how the United States Attorney’s Office for the Southern District of New York proudly announced the charges against Shrem:

Screen Shot 2015-05-04 at 10.48.40 AM

Yes, you read that right. ONE MILLION DOLLARS. Meanwhile, big banks launder billions for drug cartels, and corrupt Chinese launder trillions into overseas real estate, yet take a look at who ends up in prison. A 24-year old innovator and entrepreneur who harmed no one by “laundering” a million bucks. You only need to ask yourself two questions to understand what is going on here:

  1. Who poses a greater risk to society, Charlie Shrem or HSBC executives?
  2. Who poses a greater risk to the status quo’s rigged system, Charlie Shrem or HSBC executives?

Now you know why one person sits in jail, while the others remain free. The U.S. justice system is a compete and total joke.

But I digress. This post is supposed to be about illicit Chinese funds and how it’s basically a total free for all. Much of this money has entered U.S. real estate, helping to price out American families who can barely afford rent at this point (see: 1 in 4 Renters Use Half Their Pay for Housing). I’ve focused on this issue often over the past couple of years. For example, in the post, Chinese Purchases of U.S. Real Estate Jump 72% as The Bank of China Facilitates Money Laundering, I wrote:

American citizens already have a hard enough time affording a home. Squeezed out by financial oligarchs buying tens of thousands of properties for rental income, and faced with real wages that haven’t budged since the mid-1970s, the demographic of U.S. citizens that historically dominated the new home market has been forced to live in their parents’ basements. Just to kick em’ when they’re down, Americans now face the impossible task of competing with laundered Chinese money.

 

While this trend may not be new, it is certainly accelerating. According to the National Association of Realtors in its annual report on foreign home purchases, transactions from Greater China (includes Hong Kong and Taiwan) were up 72% in the past year to $22 billion. In some California communities, 90% of real estate buyers are from China. Yes, 90%. Naturally, many of them are buying multi-million dollar homes in “all cash” transactions.

There have been several studies looking at how this money is laundered, but a report from Global Financial Integrity (GFI) released last December points out that fake trade invoices, i.e., misinvoicing trade transactions or trade-based money laundering, seems to be the primary vehicle used. Quartz dug into the data and provided some interesting commentary and telling charts. Here are a few excerpts:

China’s capital account might be closed—but it’s not that closed. Between 2003 and 2012, $1.3 trillion slipped out of mainland China—more than any other developing country—says a report (pdf) by Global Financial Integrity (GFI), a financial transparency group. The trends illuminate China’s tricky balancing act of controlling the economy and keeping it liquid.

 

GFI says the most common way money leaks out in the developing world is through fake trade invoices. The other big culprit is “hot money,” likely due to corruption—which GFI gleans from inconsistencies in balance of payments data.

 

In China, both activities have picked up since 2009. In fact, $725 billion—more than half of the outflows from the last decade—has left since 2009, just after the Chinese government launched its 4 trillion yuan ($586 billion) stimulus package.

 

Even after that wound down, the government encouraged investment to boost the economy, prodding its state-run banks to lend. Since loan officers dish out credit to the safest companies—those with political backing—this overwhelmingly benefited government officials and their cronies.

 

That’s left small private companies so starved for capital that they’ll pay exorbitant rates for shadow-market loans, which a lot of China’s sketchy trade invoicing outflows likely sneaked back in to speculate on shadow finance and profit from the appreciating yuan. Corrupt officials, meanwhile, shifted their ill-gotten gains into overseas real estate and garages full of Bentleys.

The paragraphs above are particularly telling. Just like in the U.S., the so-called government “stimulus” in China achieved nothing more than to stimulate an oligarch crime spree. Hence the global boom in $100 million real estate, art and everything extremely high-end. As intended, the bailouts and stimulus on a global basis went directly to the 0.0001%.

Finally, here are a couple of choice passages I found from the GFI report itself:

This report, the latest in a series of annual reports by Global Financial Integrity (GFI), provides estimates of the illicit flow of money out of the developing world–as a whole, by region, and by individual country–from 2003-2012, the most recent ten years of data availability.

 

The vast majority of illicit financial outflows is due to trade misinvoicing.

Can you believe it’s not Bitcoin after all!

Save for a brief slowdown during the financial crisis, illicit financial flows have been allowed to grow unchecked over the past decade. In 2012, illicit outflows reached a staggering new peak of US$991 billion.

Read that twice, and then read it again. The banker bailouts bailed out the criminals and their criminal global financial system, which then ramped to new heights of corruption and fraud in the subsequent years.

Illicit financial flows from developing countries are facilitated and perpetuated primarily by opacity in the global financial system. This endemic issue is reflected in many well-known ways, such as the existence of tax havens and secrecy jurisdictions, anonymous companies and other legal entities, and innumerable techniques available to launder dirty money—for instance, through misinvoicing trade transactions (often called trade-based money laundering when used to move the proceeds of criminal activity).

Now, here are a couple of the main conclusions from the report:

Our estimates show that the developing world lost US$991.2 billion in illicit financial flows in 2012, over ten times the amount of official development aid received by these countries in that year, and greater than the amount of net foreign direct investment received. From 2003 – 2012, US$6.6 trillion left developing country economies illicitly.

 

Illicit outflows from developing countries increased at a trend rate of 9.4 percent per annum in real terms over the time period from 2003 to 2012. Though growth rates of IFFs tended to be higher before the financial crisis, their volume continues to climb. Over this time period, illicit financial flows were equivalent to 3.9 percent of developing world GDP on average.

That is what Oligarchy looks like.

*  *  *

For related articles, see:

Chinese Purchases of U.S. Real Estate Jump 72% as The Bank of China Facilitates Money Laundering

Open the Floodgates – Chinese Inquiries on U.S. Real Estate Soar 35% After Easing of Visa Rules

Corrupt Chinese Politicians are Buying Billions in U.S. Real Estate

Welcome to Arcadia – The California Suburb Where Wealthy Chinese Criminals are Building Mansions to Stash Cash

How NYC’s Biggest Real Estate Project in a Generation is Being Financed by Selling Green Cards to the Chinese

 

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Mon, 05/04/2015 - 22:26 | 6060695 Deathrips
Deathrips's picture

Close the Loophole and watch western real estate markets tank. They are getting traunches of UST paper traded for real estate. I talked with a chinese national that had a billion dollar note from the chinese govt..he was buying real estate. Might be plausible the chinese are selling treasuries and the fed is asking them to exchange them for real estate. Think about it.

 

Close the loop and watch UST be bought up at record pace by fed..and real estate markets tank.

Zimbabwe HOOOOOO!!!

RIPS

Mon, 05/04/2015 - 22:31 | 6060708 Laowei Gweilo
Laowei Gweilo's picture

this is why all the talk about a Canadian housing crash is so misguided

sure CGY and even a bit of TO may crash

 

but the moment VAN dips even 20%.... SALE! for all the rich mainlanders that already have about est. CA$730m on the sidelines

Mon, 05/04/2015 - 22:39 | 6060728 walküre
walküre's picture

Chinese Central Bank and Chinese Politburo

Hand in hand

Balance sheets blown up with the construction of entire ghost towns which are leveraged assets.

Chinese print Mao paper against these "assets" and buy up the world.

Why is nobody putting an end to it?

Mon, 05/04/2015 - 22:44 | 6060744 Laowei Gweilo
Laowei Gweilo's picture

why would they? you think rich white Vancouver politicians DISLIKE their housing prices doubling? you think CGY oil barons and AUS iron execs dislike it haha the only people that dislike it have no power do make changes and are too lazy to do anything other than complain on CBC.ca they don't actually _do_ anything in the streets

 

btw most of these families don't even need fake trade invoices or bitcoin..

 

there are DOZENS of currency transfer companies in VAN and TO that do this completely 'legally'

 

X gives money to the company's mainland office and it becomes a cash debit, payable credit... but it'll make that payable to its canadian subsidary so it just moves the money within the company

 

then X goes to the canadian office, and gets their payable

 

as far as China or Canada government are concerned, the money moved entirely within the company so it never falls under the curreny controls

 

of course the CRA in Canada cares if you're a citizen, in which case you have to report it... but usually citizens will just use a family member who is still Chinese to do it, and then they receive it as a gift from their friends... 

 

but the bigger thing is the yearly transfer limit in China using Chinese banks (which is already somewhat meaningless because EVERYONE just uses friends/family to bypass the previous $50,000 limit... usually if people need to transfer less than $250,000, they just use banks and use 1-4 friends/family.... it's just when it becomes $300K or more than it involves too many people and it's just more convenient to use a currency transfer company)

 

but to Chinese government, it's not a Chinese bank transfer.... as far as they know, the ONLY thing they see is a credit to a bank account that becomes a debt to a random company... they see no transfer (unless the CRA contacts them... lol doesn't happen unless the guy is a criminal in Canada) so it completely and easily skirts the previous $50K annual limit

 

and this happens 1000s of times a year... it ain't some rare thing. there are probably over a dozen companies in VAN and TO that do this

 

and their ONLY customers are people transfering over $300,000

 

anyone transfers less just using multiple friends/families to send $50k chunks

 

 

it's hilarious to listen to people talk about how VAN has been ruined by rich Chinese and that housing will crash

 

but the funny thing is, the MAJORITY of their money is still on the sidelines lol they haven't even remotely begun to spend in yet

 

only thing a 25% housing crash in VAN is speed up the ownership transfer from white sellers to all the chinese buyers waiting for a sale

Tue, 05/05/2015 - 00:50 | 6060942 Rock On Roger
Rock On Roger's picture

One good earth wobble and the whole thing sinks in the mud.

Tue, 05/05/2015 - 02:57 | 6061000 HowdyDoody
HowdyDoody's picture

US #1 corrupt country - go US!

Global Financial Integrity (GFI) is a non-profit, Washington, DC-based research and advisory organization - so another controlled outlet for DC.

Tue, 05/05/2015 - 10:42 | 6061810 JRobby
JRobby's picture

I am student at Simon Fraser, yes, I would like 6 waterfront condos for my friends, 8 BMW M3's, 4 Bugatti's and oh yes, we would like to do some shopping for speedboats later. thank you.

Mon, 05/04/2015 - 22:27 | 6060698 Dre4dwolf
Dre4dwolf's picture

The law only applies to the poor.

 

High level people in govt/banking need this fiat to enter the system uninterupted to prop up the western ponzi schemes of the elites.

 

Fresh injections of illicit funds for the wealthy, higher taxes and bills for the poor combined with more lay-offs in order to make sure the rich stay rich and the poor stay subserviant.

 

Mon, 05/04/2015 - 22:34 | 6060716 TruthInSunshine
TruthInSunshine's picture

When it comes to a good Ponzi, few can match China, though it isn't for lack of trying.

Mon, 05/04/2015 - 23:40 | 6060844 Paveway IV
Paveway IV's picture

Chinese oligarchs have been at this for a minimum of six thousand years - give or take. Mao and communism were little more than a speed-bump. The rich oligarchs there are the masters of money transfer (generally you to them). That's neither an observation or a slam on the average Chinese citizen - they know exactly what I'm talking about.

Mon, 05/04/2015 - 22:26 | 6060699 Uncle Sugar
Uncle Sugar's picture

Good thing a cashless society will prevent this in the future.  /sarc

Tue, 05/05/2015 - 06:44 | 6061113 MonetaryApostate
MonetaryApostate's picture

Of course it won't prevent it, but digital currency is all about tracking, and so it will be easier to prove who done it & jail their candy asses.

Mon, 05/04/2015 - 22:29 | 6060703 TeamDepends
TeamDepends's picture

The race for the moral high ground has been tainted with bribes, kickbacks, hookers, blow, shark fin, rhinocerous horn, unmarked bills, firstborns, Lear jets, total disregard for sportsmanship, complete abandonment of rules, and general classlessness. Race postponed indefinitely.

Mon, 05/04/2015 - 22:34 | 6060712 Dre4dwolf
Dre4dwolf's picture

You can't seriously think morality means anything to anyone anymore . . . 

Morality will always give way to profits.

All that matters is profits, doesn't matter who gets hurt.

People living by moral codes will quickly become extinct given today's state of affairs.

 

Morality is for suckers.

The entire system is built by tearing down morality.

 

Mon, 05/04/2015 - 22:39 | 6060731 TeamDepends
TeamDepends's picture

Which is why the system is dead. Everyone and anyone can see this. Without morals we are far less than animals. Look around.

Mon, 05/04/2015 - 22:54 | 6060766 Monetas
Monetas's picture

Profits don't hurt anyone .... good business .... is mutually beneficial .... busy ness is good .... malingering is bad .... what socialist boiler plate that profits are proof someone got hurt .... I would expect more from a business news blog .... but, I would be wrong ?

Tue, 05/05/2015 - 07:24 | 6061158 SumTing Wong
SumTing Wong's picture

You completely misunderstand, and the real Monedas would get this.

Profits are fine, so long as they are obtained in moral ways. If you must murder people to make the profits, then this is clearly bad. But even if you must bend laws to make the profits (yes, we're looking at you Billy Bob and Hitlery) then this is also bad. But even if bending the lawas isn't bad, not thinking about the "little people" you purport to care about is not a good thing. Exploitation of others is never good. Stealing from the poor to give to the rich is going to caus uprising. Hell, it has alread ybeen happening in US cities...Detroit, St. Louis, now Baltimore. And if you piss off enough people, then the tree of liberty gets watered once again.

You have to think about more than the balance sheet. Sure, think about the balance sheet. But you have to think about so much more. It isn't all so simple, even for simple-minded people.

Tue, 05/05/2015 - 08:22 | 6061320 JRev
JRev's picture

The "Austrian" ideal of Value for Value only works when both parties involved are honorable and moral. In a world of vultures, Austrianism is merely an excuse to prey upon the weak and feeble-minded. 

Why else did the Rockefeller Foundation bankroll Mises? Why was Hayek the personal tutor of David Rockefeller, and why does Davie Boy still, to this day, consider himself an "Austrian?" 
http://redefininggod.com/2015/02/globalist-agenda-watch-2015-update-15-l...

Think about it. 

Mon, 05/04/2015 - 22:35 | 6060719 Elliptico
Elliptico's picture

Illegal drugs are illegal.

Mon, 05/04/2015 - 22:56 | 6060768 NotApplicable
NotApplicable's picture

Crazy how nature do that.

Tue, 05/05/2015 - 06:47 | 6061116 MonetaryApostate
MonetaryApostate's picture

Yes, illegal for who is the questions?  (It seems like laws only apply to the poor/middle class/& anyone with money that they can steal it from)

Mon, 05/04/2015 - 22:47 | 6060752 Monetas
Monetas's picture

Let the Chinese buy all the RE they want .... this is how we win friends .... and tie our economies together, forever .... getting ready to confront the evil of Islam .... together !

Mon, 05/04/2015 - 22:50 | 6060759 Urban Redneck
Urban Redneck's picture

Where's the beef?

Or, where's the "How" in How Chinese Oligarchs Used Fake Trade Invoices To Launder Almost $1 Trillion Globally.

Inquiring minds want to know.

Mon, 05/04/2015 - 23:20 | 6060805 YHC-FTSE
YHC-FTSE's picture

What I want to know is, WTF happened to the chinese executing high level criminals and sending the bill for the bullet to the relatives? I guess nobody has read Animal Farm in China.

As for fake trade invoices, I would have thought it was simple. Since the hot money (Presumably stolen from local governments for non-existent projects or borrowed from gullible investors) is going out of China, the oligarchs would need a cooperative foreign corporation to invoice them to legitimize the "payment" to the overseas supplier. Sort of like the Nigerian scam except it's actually transacted for real and the overseas invoicing entity to which payment is sent gets a cut of the action. For example, some blue chips like, Apple, Blackstone and Sony might have a division making fake invoices for non-existent products and services to make a few easy billion. I suppose the oligarchs could create an overseas shell company to send fake invoices to themselves, but that's a closed loop and too easy to spot during an audit.

If there are any Chinese oligarchs reading this, I would be happy to send you an invoice from my company to the value of $1 trillion dollars. Call it a professional consultation fee at 100 billion dollars per hour. :)

Mon, 05/04/2015 - 23:34 | 6060829 Monetas
Monetas's picture

I root for Americans .... who deny money to the state .... I root for Chinese .... who deny money to the state .... I root for you too .... if 100 million Americans failed to file taxes .... the IRS would be very busy with it's misdemeanor court calendar ? LOL

Tue, 05/05/2015 - 06:50 | 6061118 MonetaryApostate
MonetaryApostate's picture

I don't think you have to worry about that, pretty soon people will be working for 30% money (That's $3 actual take home pay out of $10), and seeing the hopelessness of it all they will just say "screw it", then they will get absolutely no taxes, because nobody is working & nobody will give a damn anymore...  (The end is near, truly)

Tue, 05/05/2015 - 00:48 | 6060854 Urban Redneck
Urban Redneck's picture

I would have thought so too... then I wasted time clicking and reading... I had to go though several layers of links... Their $1T figure is global developing contries in the 68 page report I skimmed (not just Chinese oligarchs).  One of the linked articles talked about tax rebate scams in China (so no international flows) and another article was about how scam transactions were artificially boosting Chinese export figures.  So there goes would have thought.  

Someone's got some splainin' to do.

Sorry, but Mike Krieger has never written anything that's worth enough of my time to carefully read a 68 page report.  The article begins with HOW but doesn't explain HOW oligarchs or corrupt officials are laundering money out of China much less HOW MUCH per conduit.  

 

Mon, 05/04/2015 - 23:05 | 6060785 Monetas
Monetas's picture

I would really like to see the Chinese buy property .... in Manyapples, Manysoda .... to balance the Somali invasion ....  brought to you by Obama and Saudi Arabia !

Tue, 05/05/2015 - 00:59 | 6060949 Ward no. 6
Ward no. 6's picture

the somali invasion brought by obama???

we got most of our somali ppl (here in Minnesota) under bush actually.

 

Mon, 05/04/2015 - 23:13 | 6060793 kchrisc
kchrisc's picture

Sign of the times: Tyranny has a special word for the utilizing, depositing, and/or spending of one's money that is left after the thieves of government and the banksters take their cuts.

"$6 for us, and $4 for you. Oops, you did not rub your belly counter-clockwise each time you spent your money, so you owe us $5 and 1 year in jail."

Liberty is a demand. Tyranny is submission.

 

"Why are you in here? I raped a 12 year-old and her mother. And you? Why are you in here? I spent my money in a way that tyranny didn't like."

Mon, 05/04/2015 - 23:24 | 6060813 22winmag
22winmag's picture

Millions of Americans will volunteer to ride these assholes out of the country on a rail when the time comes.

Tue, 05/05/2015 - 06:54 | 6061124 MonetaryApostate
MonetaryApostate's picture

Something tells me there will be no more "Easy Money" for the kleptocracy in the coming years, already the people on the streets have had enough tyranny & injustice, most don't even bother with a job, and because poverty is rising, it will make no difference because it's no longer profitable to be in business anymore apparently...  (Not enough customers)

Mon, 05/04/2015 - 23:29 | 6060820 williambanzai7
williambanzai7's picture

So what are you going to do about it?

Mon, 05/04/2015 - 23:37 | 6060835 Monetas
Monetas's picture

Banzai, did you enter Pamela Geller's draw a cartoon of Mohamad contest .... you'd come up with something interesting ?

Tue, 05/05/2015 - 02:53 | 6061002 HowdyDoody
HowdyDoody's picture

Interestingly, at least one of the attackers was under close observation by US security - from 2007! Do you smell another own-grown controlled incident?

Tue, 05/05/2015 - 03:12 | 6061005 Urban Redneck
Urban Redneck's picture

And in OVER 1500 HOURS of recorded conversations the most incriminating evidence the State got was some very brief disjointed comments about jihad in Somalia (so brief that there is no context to the quotes).  

Unmitigated Waste of Taxpayer Dollars by Lazy Incompetent Excuses for Humans Employed by a Police State.  

I probably write things that could be misconstrued as more incriminating than what he supposedly said every month on this website.

Tue, 05/05/2015 - 00:22 | 6060845 Salsipuedes
Salsipuedes's picture

Good stuff Tyler. One needs to leave a record  of how they chopped up and sold a country like a slab of beef.

Mon, 05/04/2015 - 23:53 | 6060862 Monetas
Monetas's picture

"It is not wrong .... to take money from the tax collector .... the Sheriff of Naughtyhampton !" Robbin' Hood

Mon, 05/04/2015 - 23:56 | 6060874 Soul Glow
Soul Glow's picture

Bullish for Chinese equities.

HAHAHAHAHA!

:)

Tue, 05/05/2015 - 00:02 | 6060880 Oh regional Indian
Oh regional Indian's picture

India was meanwhile bought and sold by the londin jews and their lackeys years and years ago...

Tue, 05/05/2015 - 00:48 | 6060939 Global Observer
Global Observer's picture

If Chinese rich laundered US$ 1 trillion, that means the government and the central bank of China have US$ 1 trillion less liabilities on their hands, because US$ holdings are going to be liabilities soon anyway. So China allowed the greedy rich to acquire some liabilities from the hands of the public. What's there to complain?

Tue, 05/05/2015 - 03:26 | 6061020 magne13
magne13's picture

Not sure but seems to me that this is allowed and sanctioned by both governments to simply balance payments, i.e. the US owes us $1Trillion in worthless paper, so we (the Chinese) are going to simply take over your assets and balance the payment with "real" assets.  This way nobody needs to spend money on bombs and bullets, because you can slowly take over a country via stealth ownership like this.  Not sure about you guys but in my neighborhood 1 out of every 2 that walk thru real estate are Asian, so get used to it, and my neighborhood in Chicago is one of the top 5 income wise in the state, so you get the picture. The hell with Spanish, all my kids are taking Mandarin...

Tue, 05/05/2015 - 04:54 | 6061052 Sandmann
Sandmann's picture

did Chicago really sell parking its meter revenues to Abu Dhabi ?

Tue, 05/05/2015 - 04:53 | 6061051 Sandmann
Sandmann's picture

"The Capitalists will sell us the rope with which we will hang them."

and the houses, corporations, politicians, lawyers, judges, media, soldiers

Tue, 05/05/2015 - 06:49 | 6061111 Comte d'herblay
Comte d'herblay's picture

"Capitalists" have nothing to do with the atrocious greed, fraud and general criminality of that which accompanies this kind of destructive, (to the rest of tthe world) behavior. 

The actions of the Jews of Wall street going back to the fraudulent packaging of subprime mortgages, as the most recent example, as exemplified by Dick Fuld, Lehman, and Bear Stearns and the likes of Angelo Mozilo on the originating side, and the subsequent sale of that triple AAA rated trash, in a Capitalist system would have called them to account, extracted all the money they accumulated thru such activities, put them on trial, and they would be serving time like Bernie MAdoff, and then living under a box, cold, hungry and spat upon.

Capitalism ended in the early 20th century with the invention of the FED, dominated for the last 40 yrs and counting by Alan Greenspan, the original architect of the incipient event thru ultra low interest rates, and then taken to the nth power by Bernanke, Geithner, and now by J. Yell.

Four Jews in control of the most powerful financial institution EVER concocted by man, for the entire time it took to annihilate capitalism, and turn its remains over to the black hearted, black-eyed singular ethnic group that has done the most damage, and created a monopoly.

Tue, 05/05/2015 - 06:19 | 6061085 yogibear
yogibear's picture

There are no morals anymore, just take everything you can and then some.

 

Tue, 05/05/2015 - 06:33 | 6061103 matagorda
matagorda's picture

It seems Harry Reid & Son have gotten in on the business of importing chinese criminals.  Google "Harry Reid bribery" and you'll see he's involved in the third bribery scandal in the last decade, with this one involving EB-5 green cards for Chinese crooks.  The $300 million re-do of the old Sahara casino was funded partially by Chinese EB-5 visa applicants who bribed Reid to pressure immigration officials to forego the required criminal background checks, as some of the applicants were involved in fun stuff like child porn websites back home.  Don't hold your breath waiting for the justice dept. investigation.

Tue, 05/05/2015 - 06:38 | 6061105 fiftybagger
fiftybagger's picture

In December 2014, the judge ruled that the evidence that the prosecution had disclosed at that point (now available to the public) was not exculpatory to Ross Ulbricht. That section of her opinion was heavily redacted in the otherwise mostly unsealed docket, so we don’t know why. But we could venture a guess. As the prosecutors point out, even though the new evidence shows that law enforcement had been actively pursuing alternative suspects like Mark Karpeles (then CEO of bitcoin exchange Mt. Gox) and Anand Athavale (a libertarian blogger), one could argue that none of it actually points towards either Karpeles or Athavale being DPR. The case that Karpeles is DPR is weak (as described in our previous coverage). As for Anand Athavale, Carl Mark Force attempted to blackmail DPR by revealing his true identity as Anand Athavale. The blackmail attempt is recorded in the journal file on Ulbricht’s computer, along with a follow-up entry that calls that information “bogus.”

Furthermore, Force was selling information from inside the investigation—information that wound up in DPR’s “LE_counter_intel” (law enforcement counterintelligence) file. According to the judge, this evidence is hardly exculpatory. “If anything, [it] is inculpatory … If Ulbricht is DPR, this is evidence of Ulbricht’s criminal state of mind and attempts to protect his criminal enterprise by purchasing investigative information.”

http://www.forbes.com/sites/sarahjeong/2015/04/17/could-the-crimes-of-tw...

One of these accounts is the Silk Road username “french maid.” Evidence from the Silk Road Server and Ulbricht’s laptop indicates that, in or about mid-September 2013, a Silk Road user named “french maid” contacted “Dread Pirate Roberts” via Silk Road’s private message system, claiming that “mark karpeles” had given the true name of “Dread Pirate Roberts” to “DHLS.” Mark Karpeles is the former CEO of a now-defunct Bitcoin exchange company known as “Mt. Gox,” whom USAO-Baltimore was seeking to interview in September 2013 to determine if he had any information concerning the identity of the Silk Road operator “Dread Pirate Roberts.” “DHLS” is a possible reference to the Department of Homeland Security,

TO BE FILED UNDER SEAL
November 21, 2014

ia600603.us.archive.org/21/items/gov.uscourts.nysd.422824/gov.uscourts.nysd.422824.227.1.pdf

Tue, 05/05/2015 - 06:43 | 6061108 GCT
GCT's picture

Growth has to come from some where.  Hell most Americans cannot afford real estate in major metropolitan areas.  Flipping hamburgers or stocking shelves in retail stores will not get you a home.  College grads cannot afford them either with the six figure student debt. 

Tue, 05/05/2015 - 07:12 | 6061150 yogibear
yogibear's picture

The name of the game is to write loans to students and then sell off the loans to someone else. Who cares what it does afterwards.

 

Tue, 05/05/2015 - 06:47 | 6061117 Wahooo
Wahooo's picture

Chinese are now the largest group of immigrants to the US. Guess their money followed.

Tue, 05/05/2015 - 07:11 | 6061136 nixy
nixy's picture

Time to think about the ending of limited liability for financial 'companies'?

 

http://en.wikipedia.org/wiki/Limited_liability

Tue, 05/05/2015 - 07:28 | 6061165 RaceToTheBottom
RaceToTheBottom's picture

Wait, isn't this called an "Innovative Financial Product"?

Tue, 05/05/2015 - 07:35 | 6061173 Feel it Reel it
Feel it Reel it's picture
"How The Clinton Foundation Oligarchs Used Fake Charity Invoices To Launder Almost $1 Trillion Globally" 
Tue, 05/05/2015 - 07:51 | 6061210 omi
omi's picture

I call bullshit on this.

China is trying to liberate itself and its monetary system from the dollar infection. They've used China/Russia conflict in Ukraine to their advantage, while USA wasn't paying much attention, China pushed the US dollar out via 

1. lowering short-term rates

2. lowering reserve requiremtns for banks

Those two actions lead local enterprises to not be dependant on cheaper (in terms of % loan) US dollars, and decrease the risk of their banking system melting down due to FX mismatch. This alone, accounts for about 1.5T of US dollars being DELIBERATELY PUSHED OUT, which is making a rather big dent on global USD reserves being down from about 12 something T to about 10 and change T. That money is going back into US and is starting to make inflation. So US does what it always does, it tries to push the global financial media to say that China is broken in some way. Classic.

Tue, 05/05/2015 - 11:11 | 6061946 nah
nah's picture

its bitcoin, dont think of it as a "prison sentence"

.

hes getting tar and feathered

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