All warfare is based on deception.
–Sun Tsu
There are now no property rights to securities held in book-entry form in any jurisdiction, globally. In the grand scheme to confiscate all
collateral, dematerialization of securities was the essential first step.
The planning and efforts began over half a century ago. That there was
some great strategic purpose behind dematerialization is evidenced by
the fact that the CIA was assigned the mission.
The project leader was William (Bill) Dentzer, Jr., a career CIA operative [2]. By his admission in his own written memoir [3], he started his career working to establish anti-communist student organizations in
Europe with the backing of the CIA. The CIA had arranged his draft
deferment. He was then specifically assigned to the CIA and worked
there openly for five years. Subsequently, he was “transferred” from
the CIA to the task force which created the Agency for International
Development (AID). He became Special Assistant to the first head of
AID, and thereafter Special Assistant to the U.S. Coordinator of the
Alliance for Progress, which was active in Latin America. He was then
appointed Executive Secretary of the Clay Committee, which lobbied for Congressional appropriations for AID. After three years as Director of AID in Peru, he was named Deputy U.S. Ambassador to the Organization
of American States. He states in his memoir:
Given events in the United States in the late 1960s, including the
assassinations of Martin Luther King Jr. and Robert Kennedy, my
front.
Then, strangely, even though he had no background in any aspect of
banking or finance, he was appointed New York State Superintendent
of Banks by Nelson Rockefeller. This came after his nomination to
the newly-formed New York State Council of Economic Advisors by its
Chairman, former head of the World Bank, Eugene Black. Interestingly,
Black’s father had been Chairman of the Federal Reserve in 1933.
Within two years of assuming his position as New York State Bank
Superintendent, Dentzer was named Chairman and CEO of the newly
formed Depository Trust Corp. (DTC), a post he held for the next
twenty-two years, i.e., through the entire process of dematerialization.
In the late 1960’s, something called the Banking and Securities In-
dustry Committee (BASIC) had been formed to find a solution to the
“paperwork crisis.” It seemed the burdens of handling physical stock
certificates had suddenly become too great, so much so, that the New
York Stock exchange had suspended trading some days. “Lawmakers”
then urged the government to step into the process. The BASIC report
recommended changing from processing physical stock certificates to
“book-entry” transfers of ownership via computerized entries in a trust
company that would hold the underlying certificates “immobilized.”
This trust company would develop the necessary computer and other
systems. I happened to meet with network engineers of DTC forty years
ago, in my first job out of school.
Was this “paperwork crisis” manufactured in order to provide an impera-
tive for dematerialization? Consider that DTC did not begin operations
until 1973, and that no significant degree of dematerialization was
achieved for many years. However, somehow during this intervening
period, stock exchanges continued to function, in spite of escalating
trade volumes, without the elimination of certificates. Especially with
the aid of computerization, it could be done, and was done.
DTC eventually became the model for the Central Securities Depository
(CSD) and Central Clearing Counterparty (CCP), the purposes of which
will be explained later.
Glock- Do you understand how they have been stealing everything for 70 years at least? If I tell you they are taking the whole enchilada, you might blow it off but if you dig in and look the crimes are all there.
Daddy bush’s boyz and the CIA cleaned out the S&L’s and stole the life savings of good people who worked hard. For that they were greatly rewarded. You think anyone even today realizes their money is not where they think it is invested? You think money market accounts are safe? If they pull the plug tomorrow IT IS ALL GONE. It was stolen a long time ago.
Nobody will go to jail, everyone who didn’t read all the fine print volunteered to get robbed. I feel sorry for the poor schmoes but nobody listens. They believe the crime cartel has their best interest at heart. Sad.
The IRAs and retirement accounts of millions show big digits on a screen.
The reality is they have already been cleaned out. There is virtually nothing there. It’s a chain of counterparts risk with an empty bag at the bottom of a deep well.
Just like the Social Security Trust.
Empty promises and pieces of worthless paper.
Take the 10% hit and get your money out before everybody realizes it is a financial crime of unimaginable proportions.
Steve Z- That is sage advice, take the penalty and run for the door.