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BEHIND THE SCENES IN THE BELTWAY
by Al Martin

No Confidence; Bush Cabal Drives US to the Brink of
Collapse

(July 22) Another week has passed, as we inch ever
closer to the economic collapse of the United States.
During this week we have reached several new important
milestones. Another $750 billion of market
capitalization has been lost, thus bringing the total
loss in market capitalization (during the eighteen
months of the George Bush II Regime) to $4.75
trillion.

In an effort to stave off an economic collapse
of its own creation, the Bush Administration
desperately continues to bang the drum on the
so-called positive economic numbers. The gross
domestic product of the United States is expected to
grow between 3-1/2 and 3-3/4 % for the entire year.
Corporate profits are expected to pick up during the
second half of this year. Yet these numbers continue
to be ignored by the investing public. The reason it
is being ignored is because the Bush Administration,
with its incessant, waste, fraud, abuse, graft,
corruption and malfeasance, isn't fooling anybody
anymore.

For instance, we must remember that most of the
government economic statistics that are released by
various federal agencies are in fact all lies. That's
why these numbers are endlessly revised after they are
issued. In some cases, revisions are made up to six
months later.

The way the government puts together these
statistics is fundamentally flawed. When the Clinton
Administration attempted to make a general overhaul of
the way government agencies compiled statistics and
data, the Republicans fought them tooth and nail. They
knew that if the monthly government statistics were
going to tell the truth, it would paint a very dire
picture.

The White House has been putting on Republican
market pundits on CNBC and FNN, virtually hour after
hour, to try to pump up investor confidence. They say
that the Dow Jones industrial average at its current
levels has discounted all of the accounting scandals
and Republican connected fraud yet to come.

Isn't it odd that the Bush Administration which
professes to know nothing about this inherent
accounting fraud and fraud connected to itself says
that in six months time this will all be weeded out?

But if they don't know anything about it, how
can they give a time frame?

The reason why is because they already know
which corporations have accounting problems and which
corporations have committed Republican-connected fraud
which hasn't been revealed yet.

That's why they can give a time frame. That in
itself implies that the White House must be
controlling the agenda. They must be controlling the
rate and pace of discovery of these frauds. They
couldn't give a time frame otherwise.

In other words, if there are two hundred more
major frauds to be revealed, then maybe the White
House has a plan that will gradually reveal the frauds
over six months time, so the market doesn't crash
right away.

The market will then have time to absorb the bad
news.

As we have discussed before, the next two shoes
to drop (that will hit the capital marketplaces like a
bombshell and dampen investor enthusiasm even further)
is the corporate pension fraud. There is an aggregate
of probably some number in the trillions of dollars
that American corporations owe their own pension
funds.

This was recently revealed when General Motors
made the admission that it has a $3.6 billion deficit
in its fixed pension fund. Ford, Chrysler, and General
Electric-all have enormous multi-billion fixed
deficits. And that's only the tip of the iceberg.

In the future, any corporations that have any
shortfalls in their pension plans are going to have to
make provisions to use corporate profits to replenish
those funds.

The reason those pension frauds were allowed to
exist is that both during the Reagan Bush I Regime,
and now the Bush II Regime, they consistently weakened
regulatory statutes regarding corporate pension funds.
They gave corporations more leeway and more time to
replenish the money. More tax write-off, more
depreciation and so on. It has been the Bush Cabal,
which has created this corporate pension problem.
That's the first show to drop next.

The next one (which nobody is talking about,
which Al Martin Raw.com is now revealing) is that this
market slide and the corporate collapses of Enron,
WorldCom, and Global Crossings etc. have created thus
far (and the process isn't completed yet) $500 billion
in bad loans for American banks.

Very little, if any, of this money will be
recovered. The banks will simply have to write the
money off. This is at a time when personal
bankruptcies are at all time highs and continue to
increase. This is a time when banks are already
writing down record amounts of consumer debt. Now
they're going to get hit with a double whammy of this
newly created corporate bad debt.

Nobody has talked about what the impact of this
to the marketplace and to our economy is going to be.
Therefore, this is why the market continues to decline
-- despite some seemingly bright spots.

(Parenthetically speaking, would Al Martin Raw
readers be interested in a financial newsletter, or a
course on what the so-called Smart Money Crowd is
doing - shorting the market? Please email your
response to virtualagency@yahoo.com)

You see all these Republican Cabalists -- George
Bush, Dick Cheney and Jack Welch, the retired chairman
of General Electric (who is now being investigated for
problems at GE Capital Credit, overstating profits,
etc) standing up on the podium telling us to keep
waving the American flag, and don't worry about your
IRA statements. You just keep on buying stock.

At the same time, these people (the Smart Money)
are shorting the market and converting their trading
profits into gold. That bespeaks volumes. It's one
thing to tell the American people to go out and keep
buying, while the Bush Cabalists are being short. Of
course, there is nothing wrong with that. But it is
very onerous when they start converting their profits
into gold and start getting out of dollars.

The Smart Money has been shorting the market,
converting their trading profits to gold through
offshore gold accounts, principally held at the LME or
in Zurich. There is a whole vast array of offshore
accounts. People tend to think that offshore accounts
are just used to hold money, for US dollars or
whatever. But you can convert that to any form of
currency, Euro-dollars at LIBOR rate (London Interbank
Offshore Rate) or whatever. Or you can put your
currency in offshore bullion accounts, where you can
buy and hold bullion through a Swiss bank in an
offshore account.

And how fast is the market being brought down?
There are two schools of thought about that. Do you
bring it down fast and hard and try to convince the
American people that this is the bottom and now it's
time to buy again? Or do you bring it down gradually?

Obviously you have to do it gradually. Since so
much investor confidence has been lost, if the Bush
Administration brought the market down fast and hard
and said here's the bottom, nobody's going to believe
them.

Therefore what you do (as the Bush
Administration has done) is you put all your economic
pundits on television and you resort to the classic
strategy of letting the market drop slowly. Then you
keep telling the American people to just keep putting
your money into your IRA and 401(k) plan, and remember
that every month as the market drops, you're averaging
down. You're getting the benefit of being able to buy
stocks at ever-cheaper prices. Then when the market
does turn around, you'll be in the black again even
more quickly.

That is the classic strategy. And the funny
thing is that polls indicate that 80% of the American
people swallow that stupid line. What they don't
understand (these classically oriented investors with
this idea of averaging down which has always been
popular in this country -- and you can't expect them
to understand because they're not being told) is that
we have entered a whole new environment, that
everything is falling apart, and that it isn't going
to come back. And that's what I want the people to
understand.

The reason that the market hasn't crashed
already (and you hear this all the time; you hear it
every hour on the hour on CNBC et al) is because there
has not been a lot of retail selling - all through
this decline. The people are so conditioned by the
Bush Cabal into the concept of holding stocks to the
bitter end -- and continuing to buy them all the way
down.

It is laughable, but the Bush Administration in
concert with their allies in the securities industry,
the mutual fund industry and so on, has gotten the
people snowed into thinking this. In the past this
strategy has always worked.

When you've come into a bear market, you've
averaged down. Then when the market turns around
you've made money. But this time, what the people
don't understand is that the fundamentals have all
changed. And what do we mean when we say that? It's
simple. Everything is falling apart. And this time it
ain't coming back.

Why do you think the Smart Republican Money IS
shorting the market and IS using that money to buy
gold?

Why do you think records indicate that Smart
Republicans have even begun selling their private
homes-if they're worth two to five million dollars in
this country? They're gradually and quietly moving
everything out of the United States and putting
everything into gold and getting themselves in the
Cayman Islands where they can be completely isolated
>from the rest of the events in the world.

There are even whispers in Washington that the
administration has secretly told the Treasury
Department to begin to prepare for the Emergency
Economic Collapse Protocols. This would entail a
partial repudiation of US debt. After that, everything
would then effectively collapse. This has always been
a state secret unbeknownst to most people.

The United States holds approximately the same
amount of gold bullion (and it tinkers very little
with that amount) -- eleven billion ounces of gold.
When you add that eleven billion of ounces which it
has on hand and about a billion ounces of gold, which
could be recovered from industrial uses, the United
States would be able to print a limited series of US
currency as gold-backed notes. This currency would
circulate only in the United States. It would not
circulate anywhere else. It would be an internal
currency only. It would be meant to keep the nation
operating in a post-economic collapse environment.

In other words, you would still need currency, a
form of currency which people still had faith in,
because faith in all Federal Reserve notes would be
gone. That would be history. They wouldn't be worth
anything.

This is part of the actual protocol. The United
States would instantly demonetize US banknotes held
outside of the United States, money held in physical
form. The Treasury Department would certify these
banknotes as demonetized and no longer of any value.
As a matter of fact, at that time, they become even
illegal to possess.

What would happen in an emergency collapse
situation? The United States would simply demonetize
all currency outside the United States - which is
about two-thirds of all US currency outstanding. It is
used in many third world nations as the currency of
last resort.

We could effectively demonetize the currency
without a lot of repercussions. Certainly -- in a
post-collapse environment, where are the repercussions
going to come from?

The administration may already be looking at
post-collapse protocols. The first historical
precedent would be the events of 1862, when the US
Government first began issuing a"national" currency.
There was an enormous debate at the time.

Lincoln, Seward and Chase (then Treasury
Secretary Salmon P. Chase) had an interesting debate
about it. Chase, the former Senator from Ohio, thought
that the American people would actually accept the use
of a non-species-backed national note - especially if
you hit them from the angle of"patriotism."

If they said that we are entering into a War
with the South, the North will need all of its gold
reserves in order to fight this war because war's
expensive and it drains gold. And therefore we are
going to have to be patriotic, and we are going to
need to use a new national currency, not as a
substitution, but to augment the privately issued
banknotes then in circulation.

It wasn't until 1865 that the US Government
ordered all private banknotes withdrawn from
circulation and demonetized. That was the first
precedent for the acceptance of a de facto fiat-based
currency.

The reverse of that came in 1933 when the United
States was right on the edge of collapse, and
Roosevelt instituted what Republicans called"the Raw
Deal," (not to be confused with the"New Deal") when
he forcibly recalled all gold coins from circulation.

Roosevelt duped the American people by a careful
play on words that it was illegal to hold gold, when
in fact it wasn't, he just made the people think it
was.

The Roosevelt Administration also had a
contingency plan that had the United States collapsed
they would have had to go back to species.

After all, this will have been the first time
that the thirty-somethings have been fleeced. The
difference now is that Americans who have invested
heavily in the stock market are not being fleeced
anymore; they are being skinned. They are being boiled
in oil.

There is no more shearing of the sheep. The wool
is gone, and now it's time for the skinning.

This is directly related to the Wall Street
Journal article about the growing number of people,
who are becoming savvier and are beginning to short
the market and to trade from the short side. There is
a growing increase in retail short selling. This is a
whole new phenomenon.

Short selling was always something that the
American people were always told to stay away from.
That's for professionals. That's for people who know
what they're doing. The reason the government and its
allies in the brokerage industry always told the
American people that is they didn't want to let the
cat out of the bag.

They wanted to reserve the big short selling for
themselves. After all, most Republican Big Money was
built on the short side. If you let all the peons into
it, then you'd create an enormous amount of
volatility.

If you're going to have everybody shorting, you
have to have somebody on the other side of the market
buying. The other side of the market has traditionally
been the American People. It is the American People
who always go long. In other words, buy stocks and
stay in there. They are the ones who provide the
liquidity for the marketplace, so the Smart Republican
Money can always be on the other side.

After all, George Bush didn't call the American
People"fodder units" for nothing. This is called
"cracking the code" of the Bush Cabalists. When you
see"OFU", what did that mean? It took a while, but we
finally figured it out -"One Fodder Unit."

The latest development is that foreign leaders
are quietly pressuring Bush and Cheney both to resign
-- as a first step in restoring market confidence.
Dennis Hastert has already publicly stated that he
would recuse himself from the constitutional
succession. And who could the next"president" be? It
could be Colin Powell. People still have confidence in
him. And it would go directly in the"Five Days in
May" scenario.

Powell has already hinted in the past that
although he did not seek the presidency, if he were to
become president, he would follow the Clintonian
policies of fiscal restraint.

Of course, this scenario is very unlikely, but
it does make sense for them to resign as a first step
in restoring market confidence. If Powell did ascend
to the presidency, it would restore market confidence.
People would think that since the Bush Cabal and the
Bush-Cheney Republican oil-swindling crowd were out,
and Colin Powell was in, who is really a Republican in
name only, things would get better.

Of course the Bush Cabal would let everything
collapse before they would resign. Collapse wouldn't
affect George Bush or Dick Cheney. They'll still be
having their filet mignon and lobster tail lunch the
next day - even if everything collapsed.

If they did resign, it would be a good first
step in restoring market confidence. Maybe it's time
for a new campaign to start. You could call it ABB -
Anybody But Bush.

(By the way, while the American people are
seeing the value of their 401(k)/IRA accounts dropping
at the rate of 5% a month, Congress has voted itself
another $5000 pay raise for the fourth straight year
(an aggregate increase of $20,000 in four years.) Just
a little closing comment to brighten up the day of the
average American investor.)

AL MARTIN is America's foremost whistleblower on
government fraud and corruption. A retired US Navy Lt.
Commander and former officer in the Office of Naval
Intelligence, he has testified before Congress (the
Kerry Committee and the Alexander Committee) regarding
Iran-Contra. Al Martin is the author of"The
Conspirators: Secrets of an Iran Contra Insider"
(2001, National Liberty Press, $19.95; Toll FREE order
line: 1-866-317-1390) He lives at an undisclosed
location, since the criminals named in his book have
been returned to national power and prominence. His
column"Behind the Scenes in the Beltway" is published
regularly on Al Martin Raw: Criminal Govt Conspiracy

(http://www.almartinraw.com)

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